WPP (WPP) insider Mark Read will be revealed as the advertising giant’s next boss as early as next week. The 51-year-old, currently joint operating chief alongside Andrew Scott, has been the front-runner since the abrupt exit of former chief executive Sir Martin Sorrell. He previously ran digital ad agency Wunderman, a WPP subsidiary, and his promotion could be confirmed alongside half-year results on Tuesday.
Vodafone Group (VOD) has struck an £8.4 billion deal to merge its Australian operations with a rival and create a powerful new player. It said the tie-up with TPG Telecom would help it take on bigger rivals Telstra and Optus. Vodafone Australia, jointly owned by Hong Kong-based CK Hutchison and Vodafone Group, will take a majority 50.1% stake in the merged group – to be called TPG Telecom Limited – and TPG will hold on to the remaining 49.9%
Recruitment firm Hays (HAS) is to pay a special dividend following a rise in full-year profit. It reported a 17% rise in pre-tax profits to £238.5m in the 12 months to June 30, boosted by a strong performance in its international unit. Hays recorded double-digit fee growth in all of its territories except the UK and Ireland, where they rose by just 2%
Controversial ‘Big Six’ energy firm merger of Npower and SSE (SSE) waived through by competition watchdog as it claims it won’t lead to higher bills. The CMA said the merger won’t mean higher standard variable tariffs and it found the two companies are not ‘close rivals’ for these customers.
Shopping centre owners have become the latest links in the retail chain to take a beating. In a note, Morgan Stanley said it would ‘continue to shy away’ from investing in property stocks which seemed to be surprisingly cheap. These often included companies focused on the UK retail sector. Hammerson (HMSO) saw £193.3m wiped off its market value as Morgan Stanley lowered its target price from 565p to 510p. Intu Properties (INTU) dropped as the bank recommended a reduced target price of 150p. Capital & Counties Properties (CAPC) took a 2.7% hit as its shares fell by 7.1p to 256.9p.
Vodafone Group (VOD) slid 5.42p, to 167.52p, as Bank of America Merrill Lynch said short-term headwinds were mounting. Pressures such as competition in Spain and Italy, depreciation in the Turkish lira and increased costs could take their toll, analysts said.
Drugs giants AstraZeneca (AZN) and GlaxoSmithKline (GSK) were unable to boost the index, despite each having one of their drugs approved for use in Europe. Patients with type two diabetes will now be able to control their blood sugar levels with a once-weekly injection, rather than having to dose themselves with insulin multiple times a day, using an Astra device. Glaxo fell even though the EU gave the thumbs-up for a drug to treat children with severe asthma.
Duke Royalty Limited (DUKE) announced that it had made its largest-ever royalty financing agreement with Interhealth Canada, which develops and commissions healthcare facilities, for £10m.
Hunting (HTG) motored ahead and restored its dividend, as rising commodity prices and a recovering oil market helped boost its performance.
Xaar (XAR) printed little to impress investors in its latest trading update. Its shares plummeted 29.6%, or 72.75p, to 173p, as it said trading had been disappointing. The board said it was reviewing ‘strategic options’.
