FTSE higher ahead of Jackson Hole, Nvidia earnings in focus and Reckitt adds to the growing list of CFO changes

“The FTSE 100 made steady progress on Wednesday as investors await the start of potentially the driest shindig in the world, with central bankers due to meet at the Jackson Hole Economic Symposium from tomorrow,” says AJ Bell Investment Director Russ Mould.

“While fun might not be on the agenda – interest rates and inflation definitely are – the chair of the Federal Reserve, Jerome Powell, will take centre stage when he delivers his speech on Friday.

“His words could help set the tone for stocks heading into the autumn after recent fears the strength of the US economy could lift the lid once again on inflationary pressures and necessitate higher rates for longer.

“Another big driver of sentiment is likely to be provided tonight when chipmaker Nvidia reports earnings.

“A lot is riding on these numbers, with the shares surging to fresh record highs ahead of their release. Given much of the gains made by equities in 2023 have been centred on Nvidia and the whole AI story, they are likely to have a significant impact on the wider market too.”

Reckitt / Big increase in CFO changes

“Chief financial officers (CFOs) have a reputation for being focused on the accuracy of numbers. However, to look at their role based entirely on this conception would be doing them discredit.

“It is fair to say 2023 will go down in history as the year of the revolving door at UK plc. Reckitt’s appointment of a change in CFO represents the 35th FTSE 100 company this year to say their numbers person is leaving. That’s the highest figure by some mile since AJ Bell started tracking the data going back to 2000.

“Reckitt’s outgoing CFO Jeff Carr has been in the job for 3.4 years, making him the 42nd longest-serving person in his role among the current FTSE 100 peer group.

“So far this year, 21 CFO changes have already happened among FTSE 100 companies – there are 10 to come in 2023 and four more are due to happen in 2024. Why is this happening? It’s down to lots of different reasons but one could suggest some are getting out while the going is still good from an economic perspective.

“CFOs typically move jobs for one of five key reasons: retirement, seeking a fresh challenge, becoming CEO, missing out on the CEO role so they see no reason to stay with their current employer, or because they don’t get along with a new CEO.

“A lot of companies have recovered from the pandemic and are now looking at the next stage of their development. That ‘next step’ thinking often coincides with recruiting new people to breathe new life into a business, and it is natural to see a change in the board of directors.

“Carr is retiring next year so there is no reason to suggest any bickering behind closed doors at Reckitt. He is being replaced by the CFO for Nike’s consumer, brand and marketplace division, Shannon Eisenhardt, who is also a former P&G long-timer – so a solid hire on paper.”

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