Business live: Wise bosses fight over two-tier structure

Times

7 days ago

A fall in insurance premiums has weighed on revenue growth at Mony Group, as fewer drivers switched insurance providers.
The group, formerly known as MoneySuperMarket, said revenue at its core insurance business declined 2 per cent during the first half of the year as car premiums fell 9 per cent, prompting the company to shift its focus towards other insurance categories such as home, life and travel.
Overall revenue for the price comparison website owner rose 1 per cent to £225 million, which pushed pre-tax profit slightly higher to £59.8 million.
Shares in the FTSE 250 group were down 14.4p, or 6.6 per cent, to 205p in morning trading.
The company said it expected to deliver adjusted profits of £143.7 million this year, in line with market expectations.
Stellantis, the carmaker behind Vauxhall, Peugeot, Citroën and Fiat in Europe and Jeep, Dodge and Chrysler in the US, expects to make a first-half net loss of €2.3 billion.
The loss comes after €3.6 billion in charges due to restructuring and impairment costs and the initial hit from US tariffs. Revenues fell to €74.3 billion from €85 billion in the first half of 2024.
The results highlighted the challenges facing the new chief executive, Antonio Filosa. He was appointed in May this year after former boss Carlos Tavares stepped down in December following a sharp decline in global sales and a profit warning.
Stellantis put the early effect of US tariffs at €300 million. This includes the loss of planned production from implementing the company's response plan.
A major shareholder row has erupted at Wise, the money transfer group, with the co-founders falling out over plans to extend its two-tier share structure.
Former chairman Taavet Hinrikus has strongly criticised his co-founder, Kristo Kaarmann, as the latter revealed he planned to extend his shareholding dominance over the group for up to another ten years.
The company had promised to dismantle the two-tier structure by July 2026. Hinrikus said he was 'deeply troubled' by the proposal, which contravened shareholder democracy.
Kaarmann owns 18 per cent of the economic interest of the £11 billion London-based company, but 55 per cent of the votes.
Hinrikus has also attacked the 'bundling' of the dual structure extension vote with a separate decision on moving the primary listing from London to New York, which he supports. He has applied for a counter-resolution to unbundle the vote on the plan.
Wise said many other US tech companies have a dual set up, and they often outperformed companies with single share structures.
Shares in listed water companies have barely moved this morning following the publication of Sir Jon Cunliffe's review of the sector, which recommended that Ofwat be merged with the water functions of the Environment Agency, the Drinking Water Inspectorate and parts of Natural England to form a single integrated water regulator for England.
United Utilities, which serves northwest England, dipped 0.04 per cent, Severn Trent edged up 0.05 per cent, and Pennon Group, the owner of South West Water, Bristol Water and SES Water, rose 0.4 per cent.
Analysts at Jefferies said: 'Overall, we see the recommendations as a clear step forward for the sector. Narrowing of ODIs [outcome delivery incentives] may favour United Utilities, Pennon and Severn Trent.'
Outcome delivery incentives are financial rewards or penalties used by regulators to incentivise water companies to meet or exceed performance commitments related to customer service and environmental protection.
London's leading stock market index gained 4.66 points, or 0.05 per cent, to 8,996.78, with a rise in iron ore prices to a four-week high buoying mining stocks.
Glencore, Rio Tinto, Antofagasta and Anglo American led the risers. An increase in the gold price, supported by a weaker dollar as investors monitored developments in US trade talks, lifted precious metal miners Endeavour and Fresnillo.
Shares in the defence company BAE Systems, the Guinness brewer Diageo and the advertising agency WPP were lower.
The pound rose against the dollar to $1.344. Bond yields were lower across the board, with the 10-year UK government gilt down 5 basis points to 4.64%.
Expect shares in water companies to be in focus this morning after Sir Jon Cunliffe's independent review of the embattled sector proposed creating a new water industry regulator, combining Ofwat with bodies that focus on the environment and drinking water.
The review came after mounting anger over sewage spills and rising bills. Ofwat has been criticised for setting rules that allowed privatised water companies to pile up debt while paying high dividends and neglecting to invest in infrastructure.
It also proposed giving the regulator the power to block material changes in the control of water companies — for example, 'where investors are not seen to be prioritising the long-term interests of the company and its customers'.
There were 88 proposals covering the English and Welsh water industries.
• Read our story: Create one water regulator to protect public
The embattled oil company has appointed Albert Manifold to succeed Helge Lund as chairman. Manifold was the chief executive of the building materials group CRH from January 2014 until December 2024.
He will take over the role on October 1. Lund announced he would stand down in April. The announcement came a fortnight after it emerged that Elliott, the New York hedge fund, had been discussing potential leadership changes at BP with fellow shareholders.
The 62-year-old Norwegian has chaired BP since 2019. He oversaw its ill-fated strategic push into green energy and its recent about-turn to refocus on fossil fuels. He handled both the appointment of Bernard Looney as chief executive and his subsequent ousting over undisclosed relationships with colleagues.
Ryanair's net profit more than doubled in its April-June quarter, helped by the timing of the Easter holidays and better-than-expected last-minute fares.
Europe's largest low-cost carrier reported a net profit of €820 million for its first quarter, up from €360 million in the same period last year, when Easter was in March. Analysts had expected profits of €716 million.
Average fares rose 21 per cent from the same quarter last year, the company said.
Michael O'Leary, chief executive, said: 'We . . . cautiously expect to recover almost all of last year's 7% full-year fare decline, which should lead to reasonable net profit growth in FY26.'
Ryanair shares closed at €23.12 on Friday, down 7.5 per cent from a high of €24.98 on July 8.
Japan's ruling coalition lost control of the upper house in an election on Sunday, further weakening prime minister Shigeru Ishiba's grip on power.
Japan's prime minister, Shigeru Ishiba, is under intense pressure to resign after his ruling Liberal Democratic Party (LDP) lost control of the upper house of the Diet, in an election on Sunday that saw a dramatic surge by a far right anti-foreigner party.
Markets in Japan were closed for a holiday on Monday, but the yen strengthened slightly against the dollar, while Nikkei futures rose slightly as the election results appeared to be already priced in.
Japanese government bonds fell last week, sending yields on 30-year debt to an all-time high, while the yen slid to multi-month lows against the dollar and the euro.
Ishiba pledged to remain party leader as the country tries to get a tariff deal with President Trump before the August 1 deadline.
The election saw a surge in support for the far-right anti-foreigner party Sanseito. It seeks to restrict the rights of foreigners under the slogan 'Japanese First' and came second in the number of seats allocated by proportional representation, tying with the two main opposition parties.
• Read in full: Japan's PM under pressure after losing upper house majority