BUSINESS LIVE: Barclays overhaul; IHG’s profits exceed $1 billion; CMA tube for baby feeding

The owner of London’s stock market plans to double his CEO’s salary amid fears City bosses could be poached by US rivals.

London Stock Exchange Group (LSEG) boss David Schwimmer looks set to get a multi-million pound pay rise.

Plus500 has announced payouts to shareholders worth $175 million in buybacks and dividends after the trading platform beat annual profit expectations on the back of record high customer deposits and a growing global presence.

Israel-based Plus500 operates a trading platform for financial products including stocks, exchange-traded funds (ETFs), indices, commodities and currencies on 60 markets in Britain, Europe and Asia.

During the year, the company added an equity trading platform, a new line of business offering futures and options, a new retail trading platform in Japan and more global regulatory licenses as its trading activity peaked during the pandemic and left behind the volatility caused by the war between Russia and Ukraine. .

The London-listed company reported core profit of $340.5 million for full-year 2023, up from $453.8 million last year.

This exceeded analyst expectations of $300 million according to a consensus provided by the company.

However, revenue for the year fell 13% to $726.2 million.

The FTSE 100 is down from the open, dragged by base metal miners on weaker copper prices, although losses are limited by gains in Barclays after the British lender unveiled its overhaul plans.

Industrial miners fell 2.4 percent as copper prices trade lower against a firm dollar as traders consider demand prospects in China’s top consumer after the Lunar New Year break.

Antofagasta is down 1.6 percent despite a 5 percent rise in profits in 2023, with the Chilean miner cutting its full-year dividend and reporting a rise in capital expenditure.

Barclays has risen 5.4 percent to the top of the blue-chip FTSE 100 index after the bank unveiled plans including massive buybacks, an overhaul of its operations, cost cuts and asset sales to boost performance and shares increase.

Banks have made the most progress of all sectors, with an increase of 0.6 percent.

Adam Vettese, analyst at investment platform eToro:

“It’s safe to say the pandemic hangover is well and truly over for Intercontinental Hotels Group, with more than $1 billion returning to shareholders via buybacks.

‘Despite the cost of living crisis, demand for leisure activities does not appear to have waned, with travel shares generally having an excellent 2023. Together with a portfolio of brands that consumers can know and trust, this has helped IHG shares rise 68% last year. year.

‘We expect macro conditions to ease, which will certainly not suppress the appetite for leisure activities. With consumers having more disposable cash in their pockets and inflation continuing to decline, it is highly likely that the company will build on the success of 2023.”

Matt Britzman, equity analyst, Hargreaves Lansdown:

‘There is a shake-up at Barclays. It will now report through five different operating divisions, with accountability being a key focus. Investors will hear more later today as the company dives into details. Fourth quarter performance was slightly worse than expected, largely due to higher costs related to the restructuring. There was some concern that this could impact the buyback, but Barclays has secured that, beyond expectations, with a £1 billion plan.

‘Medium-term expectations were positive and indicate that around 54% of the current market capitalization will be returned to investors by 2026. But some might wonder if this is a bit optimistic, especially when it comes to the growth expected from the investment bank. Barclays’ huge presence in the world of investment banking is attractive. But conditions are still poor and low capital markets activity continues to weigh on performance.

‘Barclays UK faces many of the same challenges as the wider market. It was good to see Barclays following NatWest and reporting delayed deposit shifts, one of the reasons why net interest margin was able to come in ahead of expectations.

‘The British consumer remains strong. Credit card users spend more, but do not leave this balance for long. Smart card management means borrowers can avoid high interest charges and is one of the reasons why default rates remain low.

“But weakness is creeping in across the pond. Default rates on U.S. credit cards remain higher and are now at pre-pandemic levels. These levels in themselves are not a problem, but the trend is something to watch. Any delay in expected US interest rate cuts would increase pressure on card users and could lead to defaults exceeding pre-pandemic levels in the coming quarters.”

The roar of Formula 1 car engines will emanate from the 20th Bahrain Grand Prix in less than a fortnight.

When F1 arrived in 2004, the Gulf country was catapulted into the public consciousness and the event sparked a series of copycat attempts to replicate its sporting success.

Aldi has put pressure on its competitors with a new round of price cuts on fruit and vegetables.

The German discount supermarket promised yesterday to ‘cut more prices than ever before’ by 2024. Shoppers have switched en masse to the discounters Aldi and Lidl.

Holiday Inn owner IHG said Tuesday it expected to return more than $1 billion to shareholders by 2024, after posting better-than-expected annual room revenue and adjusted operating profit that topped $1 billion for the first time.

Chief Executive Elie Maalouf also explained its strategy, saying the company is targeting high-single-digit fee revenue growth by increasing revenue per room and the number of hotels on average annually over the medium to long term.

The owner of the Crowne Plaza, Regent and Hualuxe hotel chains increased its final dividend by 10 percent to 104 cents and launched a new share buyback program worth $800 million.

“The travel industry has compelling, long-term demand drivers, and the strength of our brand portfolio and enterprise platform will continue to drive our RevPAR and system size growth,” said Maalouf

Britain’s competition watchdog will investigate the country’s infant formula market after prices rose 25 percent in the past two years.

The rising cost of bottle feeding for babies has been in the spotlight during Britain’s inflation-driven cost-of-living crisis, with media reports saying some struggling parents have toned down the bottle in order to feed their children .

Nestle and Danone are among the companies supplying baby food in Britain through brands such as SMA Nutrition and Cow & Gate.

The Competition and Markets Authority said it would launch a market study, meaning it has the power to force suppliers to provide information on prices and other issues, rather than relying on voluntary submissions.

The regulator said it would aim to publish its final report in September 2024, adding that it would consider whether there are problems in the baby food market and, if so, what actions should be taken to address them.

CMA chief executive Sarah Cardell said the cost of infant milk remained at “historically high levels” even after prices fell over the past three months.

“We are concerned that parents do not always have the right information to make informed choices and that suppliers do not have strong incentives to offer infant formula at competitive prices,” she added.

The Bank of England risks ‘crushing’ the economy if it fails to cut interest rates quickly enough, its former chief economist has warned.

Andy Haldane said holding rates for too long could prolong the recession – and hurt the rate

the credibility of the bank in the process.

Barclays boss CS Venkatakrishnan has unveiled a major shake-up in the lender’s operations, including cost cuts and asset sales, in attempts to improve the group’s performance and boost its share price.

The lender also reported a 6 percent decline in annual profits, in line with expectations, as it launched massive buyback programs for investors.

Barclays will reorganize its business divisions, return £10 billion to shareholders between 2024 and 2026 and restructure its payments business, Venkatakrishnan said alongside the bank’s 2023 annual results.

The lender’s first strategy update in almost a decade marks a turning point for its CEO, known internally as Venkat, as he tries to improve returns after a period of management turmoil, self-inflicted wounds and disappointing results.