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FTSE 100 expected to open flat, Vodafone CEO to step down

Published 05/12/2022, 07:25
Updated 05/12/2022, 07:41
© Reuters FTSE 100 expected to open flat, Vodafone CEO to step down
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Proactive Investors - 7.25am: Vodafone CEO to step down

Vodafone Group PLC’s chief executive, Nick Read, is to step down at the end of the year.

In an unexpected move the FTSE 100 telco said Read would remain as an adviser to the board until the end of March 2023 with Margherita Della Valle appointed interim group chief executive.

In a statement the group said “ She will accelerate the execution of the company's strategy to improve operational performance and deliver shareholder value.”

Della Valle will also continue as group chief financial officer.

Nick Read, Group Chief Executive said: "I agreed with the board that now is the right moment to hand over to a new leader who can build on Vodafone's strengths and capture the significant opportunities ahead".

Vodafone last month lowered its outlook for the full year as profits fell in the first half, driven by a weak performance in its largest market Germany.

The company is also in talks with CK Hutchison, owner of rival telecoms group Three, to combine their UK businesses which would create the biggest mobile operator in the country.

7.00am: FTSE 100 seen flat

FTSE 100 expected to make a subdued start to the week ahead of a number of composite PMI reports.

Spread betting companies are calling the lead index up by around 3 points.

Some support should be provided by news over the weekend that more cities in China are relaxing covid rules despite rising infections. “Shanghai joined the likes of Beijing and Shenzhen in easing restrictions, announcing the scrapping of PCR testing requirements to enter outdoor public spaceslike parks, as well as riding on public transport” noted Michael Hewson, chief market analyst at CMC Markets UK.

Elsewhere, on Sunday, the Organization of the Petroleum Exporting Countries, led by Saudi Arabia and Russia, agreed to maintain their current output levels.

"OPEC+ also agreed to maintain its existing policy on oil production over the weekend, despite concerns they might have looked at another cut due to recent weakness in the oil price, with the slow relaxing of Covid rules in China perhaps playing a part in that decision," said Hewson.

In London, results are expected from Fusion Antibodies Ltd and Induction Healthcare Group PLC (LON:INHC) while on the economic data front composite PMI figures are also due.

Read more on Proactive Investors UK

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