(Alliance News) - Lloyds Banking Group on Monday said that Chief Executive Officer Horta-Osorio has informed the board of his intention to step down from the role in 2021, after having delivered three strategic plans and completing a 10-year stint in the role next year.
The lender also said it has appointed Robin Budenberg as its new chair, replacing Norman Blackwell. Budenberg will join the company's board on October 1 and will assume the role in early 2021, when Blackwell steps down.
Lloyds said that Horta-Osorio agreed to time his stepping down as CEO to support a smooth transition, with a target date at the end of June 2021, at which point he will retire from Lloyds. Until then he will continue to be completely focused with the executive team on delivering the remainder of the current strategic plan, it added.
"It is of course with mixed emotions that I announce my intention to step down as chief executive of Lloyds Banking Group by June next year. I am lucky to have had the support of a superb board and executive team on whom I will continue to rely as we complete our current strategic plan, transforming the Group into the bank of the future," said Horta-Osorio.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 1.4% at 6243.20
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Hang Seng: up 3.7% at 26,321.43
Nikkei 225: closed up 1.8% at 22,714.44
DJIA: closed up 92.39 points, 0.4%, at 25,827.36
S&P 500: closed up 0.5% at 3,130.01
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GBP: up at USD1.2498 (USD1.2465)
EUR: up at USD1.1294 (USD1.1242)
Gold: up at USD1,776.43 per ounce (USD1,775.00)
Oil (Brent): up at USD43.19 a barrel (USD42.66)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
0900 BST UK SMMT vehicle registration figures
0930 BST UK CIPS/Markit construction purchasing managers' index
1100 BST Ireland industrial production and turnover
0800 CEST Germany manufacturing orders and turnover
1100 CEST EU retail trade
1100 CEST EU quarterly balance of payments
0945 EDT US services PMI
1000 EDT US ISM non-manufacturing report on business
1030 EDT Bank of Canada business outlook survey
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The UK government has announced a GBP1.57 billion support package to "protect" the future of Britain's museums, galleries and theatres. Independent cinemas, heritage sites and music venues are also eligible for the emergency grants and loans. Arts Council England, the Royal Opera House, the Society of London Theatre & UK Theatre, and the Music Venue Trust were among those to welcome the funding. Guidance for a phased return of the performing arts sectors is expected to be published by the government shortly. The GBP1.15 billion support pot for cultural organisations in England will be made up of GBP270 million of repayable finance and GBP880 million of grants. The funding also includes money for the devolved administrations in Northern Ireland -GBP33 million, Scotland - GBP97 million and Wales - GBP59 million, the government said.
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Britain's separation talks with the EU resume Monday with few signs of compromise on a new trade agreement and time running out to avoid a messy split. London will host EU negotiator Michel Barnier after a round of face-to-face talks ended a day early last week in Brussels because of deep divides in the sides' approach. Barnier said after ending the negotiations last Thursday that "serious divergences remain". His UK counterpart David Frost said there were "significant differences" that meant the sides were still searching for basic "principles underlying an agreement". And German Chancellor Angela Merkel said upon taking over help of the EU's rotating presidency Wednesday that both her country and the 27-nation bloc "should prepare for the case that an agreement is not reached". Britain followed through on the results of a 2016 EU membership referendum and officially pulled out of the bloc in January after nearly half a century. But a standstill transition period that ends on December 31 allows the UK to effectively function as if it were still a member.
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US President Donald Trump will hold another large rally in support of his re-election campaign, even though the number of coronavirus infections is on the rise again in several states. He will speak to supporters at an open air rally at Portsmouth airport in New Hampshire on Saturday July 11, his campaign said on Sunday, adding that masks would be provided. The appearance will be Trump's second major campaign event since March. Trump had been severely criticized because the number of coronavirus infections in the southern state was rising at the time. Experts consider large events in closed rooms to be particularly dangerous for spreading infection. Trump is countering this criticism with the new open-air event. Additionally, the number of coronavirus cases in New Hampshire, a state on the eastern coast of the US with a population of around 1.35 million, is considered relatively low - only around 6,000 infections have been confirmed there since March. New infections are currently rising sharply in southern and western states, including Florida, Texas, Arizona and California. The US recently reported around 50,000 new infections per day on several days - more than ever before. Around 130,000 people have died in the US in connection with the virus.
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The US recorded 39,379 new coronavirus cases in 24 hours, a tally by Johns Hopkins University showed Sunday, as infections continue to trend up around the country. The country's total number of cases now stands at just under 2.9 million. The world's largest economy also recorded a further 234 fatalities, bringing the death toll to 129,891, the Baltimore-based institution's tracker showed at 0030 GMT Monday. Sunday is the fourth consecutive day of surging numbers of new infections, including a high of 57,683 on Friday. The lower number could be attributed to less reporting on the July 4th national holiday weekend. The US is the hardest-hit country in the global pandemic, both in caseload and deaths.
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India announced Monday that it has nearly 700,000 coronavirus cases, taking it past Russia to become the third-hardest-hit nation in the global pandemic. The health ministry said 697,358 cases had now been recorded, a rise of 24,000 in 24 hours, while Russia has just over 681,000. The US and Brazil have the highest numbers of cases but India's tally is not expected to peak for several more weeks and experts predict the one million figure will be passed this month. India has registered 19,963 deaths from the virus, a much lower number than many other badly hit countries. India's major cities have been worst hit by the pandemic. New Delhi and Mumbai each have about 100,000 cases, with 3,000 dead in the capital and nearly 5,000 in Mumbai.
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BROKER RATING CHANGES
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JEFFERIES CUTS DS SMITH TO 'HOLD' ('BUY') - TARGET 310 (350) PENCE
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RBC RAISES AB FOODS TO 'SECTOR PERFORM' ('UNDERPERFORM') - TARGET 2200 (1800) PENCE
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CREDIT SUISSE CUTS BHP GROUP TO 'NEUTRAL' ('OUTPERFORM') - TARGET 1450 (1500) PENCE
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COMPANIES - FTSE 100
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Aviva said it has appointed Amanda Blanc as its new chief executive officer with immediate effect after Tulloch stepped down as CEO and retired from his position due to family health reasons. Tulloch had been CEO for just over a year. Blanc has been a non-executive director at Aviva since January and will now step down from all her non-executive commitments, Aviva added.
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Barratt Developments said since the UK government's restrictions on housing market activity were lifted in mid-May there has been a welcome recovery in internet activity, site visitors and net reservations across both the industry and its business. However, Barratt warned the prospects for the wider UK economy and the medium-term impact on the new homes market remains uncertain and will only become clearer over the coming months. Barratt said following the reopening of its sales centres, the company has seen an increase in lead volumes, which are running at levels in excess of those achieved in the same period in 2019. In the six weeks since reopening it achieved a sales rate of 0.63, marginally lower from 0.69 net private reservations per active outlet per average week, with no "discernible change in pricing levels". The housebuilder said its forward sales position is strong, with total forward sales as at June 30, at a value of GBP3.2 billion, up from GBP2.6 billion at the same time last year, equating to 14,326 homes, up from 11,419 homes.
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A union is stepping up pressure on British Airways to halt proposed job cuts, with new research it says shows the public believes the airline is damaging its brand. Unite said a survey of 2,000 members of the public found that 70% believed BA was wrong to be proposing to cut thousands of jobs. British Airways is a part of International Consolidated Airlines Group. Three out of five of those questioned agreed BA was "taking advantage of a national crisis to boost shareholder profits", and most said they would back a government review of BA's landing slots, Unite said. A BA spokesman said: "We are acting now to protect as many jobs as possible. The airline industry is facing the deepest structural change in its history, as well as facing a severely weakened global economy. "We call on Unite and the GMB to consult with us on our proposals as our pilot union, Balpa, is doing. Working together we can protect more jobs as we prepare for a new future." The airline said its proposals have been put forward with a view to consultation, adding that no decisions have been taken in regards to actual redundancies. BA added it was in a period of consultation, so no final decisions have been made.
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COMPANIES - GLOBAL
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Uber has agreed to buy food delivery app Postmates in a multibillion dollar deal, according to Bloomberg News. The San Francisco-based rideshare giant has been badly affected by the coronavirus pandemic – cutting a quarter of its global workforce in May – and has been looking to boost its growing food delivery service Uber Eats. Bloomberg reported an expected USD2.65 billion deal with start-up Postmates will be announced on Monday morning in the US, citing people familiar with the matter. The deal would bolster Uber and help Postmates, a nine-year-old firm that has struggled against larger food delivery rivals, the New York Times has previously reported. A USD6 billion Uber offer this year to acquire Grubhub – another US food delivery app – fell through. Grubhub was later bought by European competitor Just Eat Takeaway. Uber said in its quarterly update earlier this year that it lost nearly USD3 billion and its rides business was down some 80% in April. The company noted however, that it was seeing strong revenue growth for its Eats food delivery operation. Neither Uber nor Postmates have commented on the potential deal.
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Monday's Shareholder Meetings
Ramsdens
Ocean Outdoor
Share (re delisting)
Tower Resources
Warehouse REIT (re share issue)
Kodal Minerals
Raven Property Group
De La Rue (re firm placing, placing & open offer)
Georgia Capital (re offer for Georgia Healthcare)
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By Tapan Panchal; tapanpanchal@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
International Airlines (IAG)
Aviva (AV.)
Smith (DS) (SMDS)
Barratt Developments (BDEV)
AB Foods (ABF)
BHP Group (BHP)