Yahoo Finance What to Watch: Pound bounces on Brexit extension, Debenhams rescue plan, and Credit Suisse CEO pay
Here are the top business, market and economic stories you should be watching today in the UK, Europe and abroad:
Pound bounces on Brexit extension
The pound is recovering slightly on Friday after EU leaders granted Theresa May a brief Brexit reprieve.
The EU has agreed to extend the Brexit deadline to 12 April, removing the possible no-deal cliff edge next Friday on 29 March.
Sterling was up 0.5% against the euro to €1.15 (GBPEUR=X) and flat against the dollar at $1.31 (GBPUSD=X).
“The EU’s granting of an Article 50 extension helped sterling recover some ground last night,” Conor Beakey, an economist with AIB, said.
“If the UK parliament passes the Withdrawal Agreement next week, Brexit will be delayed until 22 May. Should the deal be rejected again, the extension will only be until 12 April. The UK must then indicate to the EU how it wishes to proceed (i.e. no-deal or further extension).”
Debenhams unveils radical rescue plan
Troubled department store chain Debenhams (DEB.L) said shareholders could be completely wiped out by a radical rescue plan proposed on Friday that would save the company from administration.
Debenhams said on Friday that it plans to raise £200m from its existing lenders to pursue a restructuring that would “secure the future of the business.”
“However, certain of these options – if they materialise – would result in no equity value for the company’s current shareholders,” the company said.
Debenhams shares were down 35%. It comes as Sports Direct founder Mike Ashley continues his campaign to try and take control of the struggling retailer.
Credit Suisse CEO pay jumps
Credit Suisse CEO Tidjane Thiam saw his pay package jump by 30% to SFr12.7m ($12.8m) last year, the bank’s annual report showed on Friday.
It came as Credit Suisse returned to profit for the first time since 2014 although the bank’s share price fell across the year.
Credit Suisse’s renumeration committee increased short-term incentive payments to “acknowledge the strong performance of Mr Thiam over the course of his tenure to date and the successful execution of the three-year restructuring program,” Kai S. Nargolwala, chair of the Compensation Committee, wrote in the annual report.
Royal Mail names BA veteran as new chair
Royal Mail (RMG.L) has announced that Keith Williams is to replace Les Owen as chairman in May.
Williams is currently deputy chairman of the group and spent 18 years as CEO of British Airways.
Williams said: “I am delighted to accept this role. Royal Mail has many strengths, including great brands and great people, which form a platform for future success. The fast-moving delivery market means that we need to keep changing, and at greater pace.
“I look forward to working with Rico Back, our group CEO, and the senior management team as we address the significant challenges facing our business.”
Uber ‘picks New York’ for IPO
Uber has reportedly decided on the New York Stock Exchange for its much-anticipated IPO, according to Bloomberg.
Bloomberg quoted an unnamed source familiar with the situation and said the ride-hailing giant was expected to file for its IPO next month. Uber could be valued at as much as $120bn in the listing.
Smiths to spin-out medical business
Smiths Group has confirmed it will take its medical business public as it pursues a demerger of the division from the rest of the company.
The group said it would allow Smiths to grow as a leading industrial technology group. The whole process is expected to complete in the first half of 2020, with work currently under way to recruit a Smiths Medical chief executive.
The company also announced a 2% uplift in revenue to £1.57bn for the first half. Pre-tax profits fell 13% on a statutory basis, coming in at £174m.
European markets
European stock markets were under pressure. Britain’s FTSE 100 (^FTSE) was down by 0.8%, Germany’s DAX (^GDAXI) was down by 0.8%, France’s CAC 40 (^FCHI) was down by 0.9%, and the Euronext 100 (^N100) was down by 0.8%.
Asian markets were quiet overnight. Japan’s Nikkei 225 (^N225) closed up 0.09%, Hong Kong’s Hang Seng index (^HSI) was up by 0.1%, and China’s benchmark Shanghai Composite (000001.SS) was up by 0.09%.
What to expect in the US
US stock futures were pointing to a lower open. S&P 500 futures (ES=F) were down by 0.4%, Dow Jones Industrial Average futures (YM=F) were down by 0.5%, and Nasdaq futures (NQ=F) were down by 0.3%.
Companies reporting later today in the US include:
Tiffany & Co. (TIF.L)
