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Nestle shares tumbled early on Friday after the abrupt departure of boss Mark Schneider from the world’s biggest foodmaker following a period of underperformance.
The surprise exit was announced late on Thursday evening following a board meeting that put an end to the near eight-year tenure of the 58-year-old. He will be replaced by company veteran Laurent Freixe.
“We want to gain market share, and that comes back to investing in our brands. That comes back to investing in our growth platforms,” Freixe told analysts on Friday.
“The focus will be on driving the current portfolio. Primarily organic growth is of the essence. On the portfolio there might be of course adjustment, but again top priority is absolutely organic growth.”
Freixe is Nestlé’s executive vice-president and head of its Latin America business, and has worked at the Swiss multinational for almost 40 years. He will begin his new role on 1 September.
Company chairman Paul Bulcke said: “Laurent is the perfect fit for Nestlé at this time. Under his leadership, Nestlé will further strengthen its position as a dependable, reliable company through consistent and sustainable value creation.”
Direct Line (DLG.L)
Direct Line Insurance Group slipped after opening on Friday, down more than 3%, after it flagged a mistake with its solvency figure for 2023.
The ratio was been revised lower to 188%, still above the target range of 140%-180%. The error means Direct Line is more solvent than it had initially said publicly.
The company said: “A miscalculation has been identified within the Group’s audited Solvency II own funds for the year ended 2023.
“Correcting for the miscalculation, the solvency capital ratio (post-dividend) at year end 2023 was 188%, which was above the Group’s risk appetite range of 140% to 180%.”
Hargreaves Lansdown analyst Matt Britzman said: “Errors are never good, but this doesn’t change much and the short update has actually given Direct Line the chance to deliver some positive guidance ahead of half-year results, with capital generation looking positive over the half so far.”
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Hiscox was in focus today as it announced the appointment of senior independent director Colin Keogh as interim chair. It comes following the death of Jonathan Bloomer earlier in the week in the sinking of Mike Lynch’s luxury yacht Bayesian.
Bloomer, who was also the chairman of US bank Morgan Stanley International, was confirmed dead on Thursday after five bodies were found by divers after the Bayesian sank off the coast of Sicily.
Keogh previously held executive roles at Premium Credit, M&G and Virgin Money. His wife Judy was also confirmed dead by the Italian Coast Guard.
In a statement on Thursday, Hiscox chief executive Aki Hussain said: “We are deeply shocked and saddened by Jonathan and Judy’s tragic deaths. Our deepest sympathies go out to their family and friends at this devastating time.
“It was a privilege to have known Jonathan and to have benefited from his generosity and wisdom over the last year in his role as chair of Hiscox. His deep experience across our industry and in the broader business arena, combined with his personal values, made him both an excellent chair and a person I was proud to know and work with.
“His advice and support were immensely valuable to me, and he will be dearly missed.”
Brent Crude (BZ=F)
Oil prices rose on Friday, escaping a weekly loss after hitting the lowest close since January this week. It comes amid a challenging demand outlook, sinking product prices, and US efforts to secure a ceasefire in Gaza.
Brent crude traded above $77 a barrel, less than 1% higher this week, while West Texas Intermediate was near $73. Data this week showed US manufacturing contracting at the fastest pace this year, as well as signs of labour market softness.
Meanwhile, in Europe, futures for diesel, a workhorse industrial fuel, have retreated to the lowest level in 14 months.
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Oil has almost shed its year-to-date gains as the impact of OPEC+ supply curbs has been overshadowed by a poor economic outlook in major economies, with China showing signs of weakness along with the US.
The cartel led by Saudi Arabia and Russia has previously said it aims to ease some output curbs in the fourth quarter, crude’s slide makes that plan more challenging.
“In the short term, Brent prices have declined ahead of fundamentals,” Morgan Stanley analysts including Martijn Rats said in a note.
“However, with demand set to slow after summer, and both OPEC and non-OPEC supply to increase from the fourth quarter, we foresee a softening balance, turning to surplus in 2025.”
It pared price forecasts for upcoming quarters.
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