US jobs numbers in focus, Shell boss reportedly stepping down

“There will be some relief on Friday morning that, for now, the recent wave of selling in global stock markets has eased,” says AJ Bell investment director Russ Mould.

“After US stocks broke a four-day losing streak overnight, the FTSE 100 has eked out modest gains, supported by a broad range of companies caught up in the sell-off.

“Housebuilders were firmly lower after a week which revealed cracks in the foundations of the property market and raised questions about how much longer their selling prices can run ahead of rising labour and raw material costs.

“Later US jobs numbers will take the spotlight. The earliest release based on hard data will offer an insight into the health of the world’s largest economy, it is typically influential on markets.

“However, US Federal Reserve chair Jerome Powell was so clear in his messaging at last week’s Jackson Hole summit that it would take a big surprise to really move the dial.”

“Competition authorities cleared the takeover of Avast by rival NortonLifeLock and while this was not a surprise, it adds to a potential exodus of firms from an already threadbare UK tech sector, with Aveva and Micro Focus among those names either already in discussions or rumoured to be attracting interest.”

Shell

“After yesterday’s surprise departure of Reckitt Benckiser chief executive Laxman Narasimhan, it looks as if another FTSE 100 company is poised for a change at the top as Shell’s Ben van Beurden is reportedly preparing to step down.

“A key feature of his near decade at the helm has been a focus on natural gas, including the big acquisition of BG Group in 2016.

“Arguably this strategy has been vindicated by recent events which have revealed the importance of gas for energy security and as a way of transitioning from more polluting fuels to renewables.

“While there has been considerable volatility in the interim, ultimately since van Beurden took over at the beginning of 2014 he has delivered a total return to shareholders of 45.1%.

“Given this period encompassed an oil price crash very early in his tenure and a global pandemic, this is not too shabby.

“His successor faces a tough task though, with regulatory pressure likely to be a key theme. Internal appointments are rumoured to be in the running, befitting an organisation which has often looked inwards when planning a succession process.

“Whoever prevails will have to balance the demands of the environmental lobby, governments and investors. At least van Beurden spared them the decision of cutting the dividend, a step taken for the first time since the Second World War in 2020.

“However, there will be more hard decisions to come if the company is going to live up to its net zero rhetoric.”

These articles are for information purposes only and are not a personal recommendation or advice.