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“Renewed pressure on sterling amid signs Theresa May will further delay a meaningful vote on a Brexit deal and is unwilling to accept Labour suggestions for a cross-party compromise helps lift the FTSE 100 on Monday morning. “The index of leading UK shares tends to benefit from a falling pound as it boosts the relative value of its constituents’ largely overseas earnings. “Sentiment is also improved by hopes that a US and China trade agreement is not yet dead in the water. Dollar earners like British American Tobacco and Carnival, as well as miners Fresnillo and Evraz are among the top risers,” says Russ Mould, Investment Director at AJ Bell.
Just Eat
“US hedge fund Cat Rock Capital does not appear willing to give takeaways platform Just Eat any breathing space as it cranks up the pressure for a change of direction.
“Its latest salvo seems unlikely to be palatable to the current management given it effectively calls for them to be out of a job.
“It has so little faith in the board’s ability to pick a new chief executive to replace the departed Peter Plumb it would prefer the company to merge with a rival instead.
“In the unlikely event of turkeys voting for Christmas and the board acquiescing to this demand, it remains to be seen just what leverage Cat Rock has.
“Its 1.7% stake does not carry much weight on its own and it will need to garner support from other major shareholders if it wants to force Just Eat’s hand.
“At the very least its complaint that the company has appointed executives with limited or no direct industry experience does not seem entirely unfair.
“Particularly as Just East is facing an increasingly competitive marketplace and will need forensic focus as it continues to invest in and implement its own delivery service and new technology platform.
“Interim CEO Graham Duffy is seen as a candidate for the role on a permanent basis but also fails Cat Rock’s criteria of having worked in the online food delivery space before.”
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