Shares in Nestle, the world's largest food maker, plummeted early on Friday following the sudden departure of Chief Executive Mark Schneider after a string of poor performance.
The sudden departure was announced late Thursday night after a board meeting that brought an end to the 58-year-old's nearly eight-year tenure. He will be replaced by Laurent Fréchet, a company veteran.
“We want to gain market share, which leads to investing in our brand, which leads to investing in our growth platform,” Fresi told analysts on Friday.
“The focus will be on driving the current portfolio. Organic growth is paramount. There may of course be adjustments to the portfolio, but organic growth remains absolutely the number one priority.”
Fleicher, who is Nestlé's Executive Vice President and head of Latin American operations, has worked for the Swiss multinational for almost 40 years and will take up his new role from September 1.
The company's 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 trusted company through consistent and sustainable value creation.”
Direct Line (DLG.L)
Direct Line Insurance Group Inc. slumped more than 3% after opening trade on Friday after it said there was an error in its 2023 solvency figures.
The ratio was revised down to 188%, but still above the target range of 140% to 180%. The error means that Direct Line is more able to pay than it had originally disclosed.
“We discovered a miscalculation in our audited Solvency II capital up to fiscal year 2023,” the company said.
“Adjusting for miscalculation, the solvency capital ratio (after dividends) at end-2023 would be 188%, above the group's risk tolerance range of 140% to 180%.”
“While being wrong is never a good thing, it doesn't change the situation materially and this short-term update gives Direct Line an opportunity to provide positive guidance ahead of its half-year results. Capital generation has been strong in the half so far,” said Matt Britzman, analyst at Hargreaves Lansdown.
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Hiscox made headlines today by announcing the appointment of senior independent director Colin Keogh as interim chairman, following the sinking of Mike Lynch's luxury yacht The Baysian earlier this week, killing Jonathan Bloomer.
Bloomer, who also serves as chairman of U.S. bank Morgan Stanley International, was confirmed dead on Thursday after divers recovered five bodies from the Basian after it sank off the coast of Sicily.
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Keogh, who previously held executive roles at Premium Credit, M&G and Virgin Money, was killed by the Italian coast guard after his wife, Judy, was also pronounced dead.
Hiscox chief executive Aki Hussain said in a statement on Thursday: “We are deeply shocked and saddened by the tragic deaths of Jonathan and Judy and our heartfelt condolences go out to their family and friends at this terrible time.”
“It has been a privilege to know Jonathan and benefit from his generosity and wisdom over the past year as Chairman of Hiscox. His vast experience across the industry and wider business sector, combined with his personal values, has made him an excellent Chairman and someone I am proud to know and work with.
“His advice and support have been invaluable to me and I will truly miss him.”
Brent Crude Oil (BZ=F)
Oil prices rose on Friday, avoiding a weekly decline after closing at their lowest since January this week amid a grim demand outlook, falling commodity prices and U.S. efforts to secure a ceasefire in Gaza.
Brent crude rose less than 1% this week to above $77 a barrel, while West Texas Intermediate was near $73.Data this week showed U.S. manufacturing is shrinking at its fastest pace this year and there were signs of a softening labor market.
Meanwhile in Europe, futures prices for diesel, a main industrial fuel, fell to their lowest level in 14 months.
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Oil prices have given up most of the gains they made so far this year as a weak economic outlook for major economies masks the impact of OPEC+ supply restrictions and China, along with the United States, show signs of weakening.
The Saudi Arabia-Russia oil cartel had previously signaled its intention to ease some production curbs in the fourth quarter but falling oil prices are making those plans more difficult.
“In the short term, Brent crude prices have fallen ahead of fundamentals,” Morgan Stanley analysts including Martijn Latz said in a note.
“However, as demand moderates after the summer and both OPEC and non-OPEC supply increases are expected from the fourth quarter, we expect the balance to ease and turn into a surplus in 2025.”
The company lowered its price forecast for the coming quarters.
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