As many as 7500 Unilever jobs are to go after the consumer goods giant unveiled a restructuring alongside plans to spin-off its ice cream division.
Other companies in the spotlight today include Wickes, Trustpilot, DFS Furniture and Close Brothers, which is dealing with the impact of a FCA review of motor loans.
In a busy week for central bank decisions, Japan ended its negative interest rate policy following the first increase since 2007.
Close Brothers says preparing for impact of car loans probe is of “paramount importance”
07:40 , Michael Hunter
Close Brothers has said bracing for the impact of the probe into hoe car loans were sold in the UK is of “paramount importance”.
One of the most historic names in the City, the bank has already cancelled its dividend to set aside cash for potential payouts.
The scrutiny on the industry from the Financial Conduct Authority in one of the biggest actions from regulators since the payment protection insurance paybacks.
Close said:
“The FCA’s review of the motor finance industry is ongoing and it would be premature to predict the outcome or estimate the potential impact on the group. The Board however recognises the paramount importance of preparing the group for a range of outcomes from this review.:
The statement came as Close reported a sharp rise in profit before tax for 2024, of £94 million, up from £11.7 million a year earlier.
But it called the FCA probe into car loans as a source of “significant uncertainty”.
The probe follows customer complaints over the industry, where car dealers were being offered larger commissions for more expensive financing arrangements. That led to some people being sold higher interest loans than ones they could have secured.
Lloyds set aside £450 million for potential payouts last month.
Close Brothers Motor Finance provided around 100,000 customer loans last year and has over 5,000 motor dealer partners from small independent garages to large multi-franchised dealerships.
Marmite maker Unilever to cut 7500 jobs
07:22 , Daniel O’Boyle
Consumer goods giant Unilever is set to cut as many as 7,500 jobs as its new CEO brings in a massive restructuring program after warning that the Cornetto-to-Dove behemoth’s 2023 results were disappointing.
It will launch “a comprehensive productivity programme,” to save €800 million over the next three years. A total of 7,500 roles, mostly based in offices, will be affected
Japan ends long run of negative rates, FTSE 100 seen lower
07:17 , Graeme Evans
Japan’s first interest rate hike in 17 years failed to derail the Nikkei 225 today, with Tokyo’s leading benchmark 0.7% higher by the close.
The Bank of Japan’s change in short-term rate to between zero and 0.1% ended eight years in negative territory, a move widely predicted by economists.
Elsewhere, policymakers in Australia kept the country’s base rate unchanged at 4.35% ahead of decisions by the US Federal Reserve tomorrow and Bank of England on Thursday.
A rally by technology stocks meant the S&P 500 rose 0.6% and the Nasdaq Composite by 0.8% last night, but the strong handover from Wall Street failed to prevent a weaker session for China-focused markets.
The FTSE 100 index closed five points lower last night and is forecast by IG Index to open down by 31 points to 7691. Brent Crude, meanwhile, is trading at its highest level since November after another rise to near $87 a barrel.
Recap: Yesterday’s top stories
06:42 , Simon Hunt
Good morning from the Standard City desk.
Should Nationwide’s 16 million members be given a vote on its wild, wild, £2.9 billion takeover of Virgin Money?
If mutuality means anything at all, the answer is obviously yes.
If Nationwide truly had confidence in the transaction, it should be sure it could persuade those members of the merits of the deal.
Instead, it is hiding behind the notion that Nationwide has always grown by acquisition, noting that it didn’t ask members to approve the takeover of the puny Portman Building Society in 2007, as if that were remotely comparable.
One of Nationwide’s functions is to mop up smaller, struggling building societies, to take on the other mutual’s assets, protecting them from the avaricious banking sector.
That is one of the many reasons why, if you were going to get emotionally attached to a financial business, Nationwide would be the only one.
It has been a force for good, a permanent brake on rival banks since 1884.
That status is severely at risk by its move to takeover a business that used to be called Northern Rock (yes, that one).
Here’s a summary of our top stories from yesterday:
Daniel Miller is a sports fanatic who lives and breathes athletics. His coverage spans from major league championships to local sports events, delivering up-to-the-minute updates and in-depth analysis for sports enthusiasts.
