Calm descends as Bailey reassures market
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4.30pm: London posts small gain
The FTSE 100 closed 12.48 points higher at 7,484.25 as calm descended on the market after a week of banking turmoil.
AJ Bell investment director Russ Mould said: “The insistence from Bank of England Governor Andrew Bailey last night that the turmoil would have no impact on efforts to fight inflation was the just the kind of messaging the market was looking for, even if Bailey is only responsible for UK banks.
“It’s all about confidence right now – and anything which reassures shareholders, creditors and depositors that their money is safe with the banks is one step further away from the carnage which claimed SVB and Credit Suisse.”
The market reaction to a change of CEO at Diageo, was a mere 0.5% decline in the share price, which shows that investors aren’t worried about big changes to the business, said Mr Mould.
“Instead, this looks like as smooth a transition as an athlete passing the baton in a sprint relay.
“Menezes is the 16th longest serving CEO in the FTSE 100. Importantly, Crew becomes the 13th female boss of a FTSE 100 company, based on the CEO role or chair for investment trusts.
“That shows progress in bringing more equality to the boardrooms of UK-listed blue-chip companies, but many would argue a lot more needs to be done.”
7am: AG Barr
Robin Barr is to leave the board of Irn-Bru manufacturer AG Barr after 58 years, thereby severing what is possibly the longest period of boardroom service.
The announcement came as the company posted a 13.3% rise in adjusted profit before tax to £43.5m on an 18.2% rise in reported revenue and 15.9% on a like-for-like basis.
Diageo, the Johnnie Walker to Guinness group, has announced that Sir Ivan Menezes will retire as chief executive and leave the board on 30 June following ten years leading the company.
He will be succeeded by Debra Crew, currently chief operating officer, from 1 July.