Yahoo Finance What to watch: Just Eat CEO out, William Hill profit warning, and Theresa May's Plan B
Here are the top business, market and economic stories you should be watching today in the UK, Europe and abroad:
Just Eat CEO out
Just Eat (JE.L) has announced that chief executive Peter Plumb is to step down from the takeaway firm with immediate effect after just a year and a half in the role.
Chief customer officer Peter Duffy will take the role of interim boss as the search for a permanent replacement gets under way.
The company fell on difficult times towards the end of last year, with shareholders accusing the company of flawed schemes that have damaged the business.
But Just Eat chairman Mike Evans said: “The board would like to thank Peter Plumb for setting Just Eat on a new course which better places it to address a much larger and rapidly expanding market. We wish him well for the future.”
The takeaway firm also announced an upgrade to forecasts, saying it expects orders of 221m this year and revenue of £780m ($1bn).
William Hill profit warning
William Hill (WMH.L) shares fell after the bookmaker put out its second profit warning in three months.
William Hill said it expects profits to drop 15% this year, with the bookmaker blaming conditions on the high street.
It said that adjusted operating profit is set to come in at £234m, in line with expectations and within the previously guided range of £225m to £245m.
Shares in William Hill were down 3.2%.
Theresa May’s Plan B
Prime Minister Theresa May is due to deliver her “Plan B” for Brexit to parliament today.
Michael Hewson, the chief market analyst at CMC Markets, said in his morning note to clients: “Early indications would suggest that it probably isn’t going to be that much different from her Plan A which was so emphatically rejected by MPs last week.
“Some of the latest commentary has suggested that the UK government was considering amending the Good Friday agreement to address the issue of the Irish backstop, which is proving so contentious. This seems unlikely to happen, while MPs are reported to be mulling a plan to take control away from the government in order to prevent the prospect of a no deal Brexit, as the government continues to push back on significant changes.”
May is due to give a statement to parliament at 3.30pm local time. The pound was under pressure ahead of the announcement, down 0.3% against the euro (GBPEUR=X) and down 0.2% against the dollar (GBPUSD=X).
Patisserie Valerie on the brink
Bakery and cafe chain Patisserie Valerie (CAKE.L) said on Monday morning that it is “still in discussions with its bankers to extend the standstill of its bank facilities beyond 18 January.”
It added that it will issue an update when those discussions have concluded.
The chain is teetering on the brink of collapse as if it doesn’t come to an agreement with the company’s lenders, HSBC and Barclays, meaning the banks could demand repayment of debts that may amount to nearly £10m ($12.8m).
In turn, that could potentially force Patisserie Valerie to fall into administration and file for bankruptcy. The chain’s prominent entrepreneur owner Luke Johnson already gave the chain an emergency £10m bridging loan to help ensure its survival.
European markets
European stock markets were mixed on Monday after data showed China’s economy grew at its slowest pace since 1990 in 2018. It stokes fears about a global growth slowdown this year.
Britain’s FTSE 100 (^FTSE) was up 0.1%, Germany’s DAX (^GDAXI) was down by 0.5%, France’s CAC 40 (^FCHI) was down by 0.2%, and the Euronext 100 (^N100) was down by 0.2%.
Asian markets were higher. Japan’s Nikkei 225 (^N225) closed up by 0.2%, Hong Kong’s Hang Seng index (^HSI) was up by 0.3%, and China’s benchmark Shanghai Composite (000001.SS) was up 0.5%.
What to expect in the US
US stock markets are closed today for Martin Luther King day in the US.
