Aviva tackles the boss and says it’s game over. Mark Wilson lacked a plan and shareholders already had a grudge. The chief executive of Aviva (AV.) has been ousted because of frustrations among shareholders that his turnaround plan has failed to boost the share price of Britain’s biggest general insurer. Mark Wilson’s sudden departure came after he had bruising encounters with the City and regulators this year over a contentious plan to cancel preference shares, which angered thousands of shareholders, and a decision to join the board of Blackrock, a rival investment company. Sir Adrian Montague, Aviva’s chairman, said that Mr Wilson was leaving the group much stronger than when he started, but added: “There is much farther to go in accelerating our strategic development and enhancing shareholder value.”
Unilever boss is Swiss tax resident. The chief executive of Unilever (ULVR) — who was criticised by shareholders for being disengaged during its botched attempt to relocate to the Netherlands — is tax resident in Switzerland. The Anglo-Dutch consumer goods company has denied that the arrangement limits the “number of days” that Paul Polman, 62, can work in the UK. One top shareholder, speaking privately and referring to his residency in Switzerland, said on Friday, when Unilever shelved its relocation plans, that Mr Polman “very rarely saw any shareholders throughout the process and before, for that matter”.
Cenkos chief to bow out weeks after profit crash. The boss of a London-based stockbroker is set to step down weeks after the company reported a 90% drop in first-half profits because of a slump in corporate finance fees and broking commissions. Cenkos Securities (CNKS) said yesterday that Anthony Hotson would relinquish his seat on the City broker’s board at the end of the month and would leave the company at the end of the year, prompting shares in the business to rise by more than 10%
The founder of YouGov (YOU) said that he would welcome a parliamentary inquiry into the polling industry to clear up “confusion” over the reported sale of exit polls to hedge funds on the day of the Brexit vote. Nicky Morgan, chairwoman of the Treasury select committee, called on the Financial Conduct Authority last month to consider taking “regulatory oversight of market- sensitive polling”, citing an “overwhelming” case for greater disclosure by polling firms on their work for private clients during election and referendum campaigns.
HSBC forks out $765m to settle allegations over toxic mortgages. Allegations that its American division fraudulently mis-sold toxic mortgage products before the financial crisis have forced HSBC Holdings (HSBA) to agree a $765 million settlement. The US Department of Justice had claimed that the bank broke the law by misrepresenting to investors the quality of loans in residential mortgage-backed securities and its procedures for checking these loans.
Buoyant Greggs boosts allergy labels. Demand for flavoured lattes, hot sandwiches and pizza has boosted sales at Greggs (GRG). The retail chain said that its like-for-like sales had risen by 3.2% in the 13 weeks to September 29, as total sales rose 7.3%. Greggs, which opened its first shop on Tyneside in 1951, is Britain’s largest bakery chain, with about 1,900 outlets. Best known in the past for its sausage rolls, it has been increasing its range, introducing healthier options such as porridge, cold-pressed juices, low-calorie soups, salads and gluten-free foods.
Sky chairman departs after takeover fight. James Murdoch stood down as chairman of Sky (SKY) as its American suitor declared its £30.6 billion bid for the satellite broadcaster unconditional. Veteran Sky directors, including Martin Gilbert and Chase Carey, joined Mr Murdoch in standing down from the Sky board yesterday as Comcast prepares to take control of the pay-TV provider. The American cable group won an auction for Sky last month after a three-round process, beating an offer from 21st Century Fox, which was bidding with the support of Disney.
Planting forests covering an area the size of Brazil may hold the key to preventing dangerous extremes of global warming, the boss of Royal Dutch Shell ‘B’ (RDSB) has suggested. Ben van Beurden said its analysis showed that the world could not meet the Paris climate pact’s aim of limiting temperature rises to 1.5C above pre-industrial levels simply by switching to green energy. Even if wind and solar power were deployed as fast as is technically possible, extra measures such as planting trees that absorb carbon from the atmosphere would be needed. “What we think can be done is massive reforestation,” he told the Oil & Money conference yesterday. “If you think of extra reforestation, so another Brazil in terms of rainforest, you can get to 1.5C.”
Broker downgrades, issued in response to a recent profit warning, sent Royal Mail (RMG) tumbling below its original flotation price — albeit briefly — for the first time yesterday. The former state-owned provider of postal services was privatised and floated on the stock market in 2013, with its shares priced at 330p. Those shares dipped to 321¾p yesterday before recovering to close at 353p, up 14½p.
WPP (WPP) fell 1.4% after it emerged that it had lost a contract with Ford to a rival. The advertising giant closed down 15p at £10.95. However, Liberum analysts issued a “buy” rating, saying that “while this is a blow to prestige, the actual financial impact from the loss is limited and, in some ways, may provide a relief that the overhang is gone”.
Telecom Plus (TEP) was the biggest mid-cap gainer after Peel Hunt, its house broker, upgraded the stock to “buy” from “add”, with a £13.60 price target. Analysts expect Telecom Plus to receive a boost to business from a new price cap on energy suppliers imposed by Ofgem, the industry regulator, which should put the brakes on the introduction of “a plethora of new entrants to the energy market”, players that have taken advantage of the “light regulatory touch”.
Serica Energy (SQZ) leapt 33p, or 42.9%, to close on 110p after receiving a conditional license and assurance from the US Office of Foreign Assets Control relating to the Rhum field in the North Sea. This marks key progress towards completing the transaction, announced in November 2017, whereby Serica will acquire BP’s interests in the Bruce, Keith and Rhum fields.
Shares burnt by Nine Dragons. Britain’s paper and packaging makers were put through the shredder yesterday after fears were raised that the supply would increase. Shares in Smurfit Kappa Group (SKG), Mondi (MNDI) and Smith (DS) (SMDS) were all sent lower after Nine Dragons, a Chinese paper maker, said that it was investing $300 million in its recently acquired mills in the United States so that it could boost output.
Tempus – Unilever (ULVR): Hold. Strong track record of growth but risks missing targets and emerging market setbacks
