GSK chief executive Emma Walmsley is to step down after more than eight years running the pharmaceuticals giant.
Chief commercial officer Luke Miels will take on the role from the start of next year.
Meanwhile, the FTSE 100 index is nearing an all-time high after a strong finish to last week.
FTSE 100 Live Monday
- GSK names new chief executive
- AstraZeneca overhauls US listing
- Shutdown looms over US markets
Market update: FTSE 100 on track for record close, GSK up on CEO succession
09:50 , Graeme EvansThe FTSE 100 index today traded in record territory, led by a rise of 3% for GSK as shareholders welcomed the drugs giant’s CEO succession plan.
London’s top flight lifted 0.5% or 42.90 points to 9327.73, placing it above August’s all-time high close of 9321.40 and within sight of the intraday peak of 9357.51.
Today’s strong performance followed Friday’s rise of 70.85 points or 0.8%, when a reassuring inflation update supported by hopes for more Federal Reserve interest rate cuts before the year end.
US markets are set for fresh gains later, despite the prospect of a government shutdown if Congress fails to pass a funding bill before Tuesday night.
Federal Reserve rate cut hopes and a weaker dollar this morning gave a further lift to the gold price, which traded above $3800 an ounce for the first time.
In London, GSK rose 46p to 1532 after the pharmaceuticals giant announced that chief executive Emma Walmsley is to step down following eight years in charge.
Chief commercial officer Luke Miels, who has been instrumental in building GSK's specialty medicines portfolio, is to take the job from January.
He held senior roles at AstraZeneca, Roche and Sanofi-Aventis before joining GSK in 2017.
GSK shares are broadly unchanged over the past year and trade at a discount to peers as the company has struggled to convince the market that it can grow through forthcoming patent expiries.
Shore Capital said it was broadly anticipated that Miels would be the most likely internal candidate to succeed Walmsley.
The bank said: “We believe he is well positioned to lead GSK through the remainder of the decade as it looks to deliver on its £40 billion 2031 revenue ambition, which has been reiterated in today’s release."
In a significant session for the sector, AstraZeneca rose 72p to 11,072p after it announced plans to directly list its ordinary shares on the New York Stock Exchange.
The company said the move is designed to help the group “reach a broader mix of global investors”, adding that it will keep its headquarters in the UK and remain on the London market.
Other risers in the FTSE 100 index included the Asia-focused insurer Prudential, which rose 23.5p to 1058p after Hong Kong’s Hang Seng index rose 1.9%.
On the fallers board, BP shares dipped 2.9p to 442.6p after oversupply fears caused the price of Brent Crude to reverse by 1% to $68.50 a barrel.
The FTSE 250 index rose 0.6% or 120.75 points to 21,802.23, with CMC Markets up 6% or 12.5p to 236p and Aston Martin Lagonda 5% or 3.75p higher at 84.7p.
AstraZeneca overhauls US listing
08:34 , Graeme EvansDrugs giant AstraZeneca has revealed plans to overhaul its US listing, but stressed it will keep its headquarters in the UK and remain on the London market.
Cambridge-based AstraZeneca is set to directly list its ordinary shares on the New York Stock Exchange in a move designed to help the group “reach a broader mix of global investors”.
Until now, the Anglo-Swedish group has traded in the US through so-called American depositary receipts (ADRs) on Nasdaq, but ordinary shares are typically easier to trade than ADRs.
The FTSE 100 firm said the plans would not affect its primary listing on the London market and its UK corporate headquarters, allowing investors to trade ordinary shares in the firm across the London Stock Exchange and in Stockholm and New York.
Market backs new GSK boss, shares up 3.5%
08:31 , Graeme EvansGSK’s leadership change today triggered a strong session for the company’s share price, which rose by 3.5% or 52p to 1538p.
Derren Nathan, Hargreaves Lansdown head of equity research, said GSK traded at a significant discount to its peer group following a lacklustre run for the shares.
He said: “Although Emma Walmsley’s record of delivering on financial guidance has been strong, the company’s growth rates remain stuck in single digit territory.
“There’s a $40 billion sales target in place for 2031, but analyst forecasts suggest some doubts still linger.
“It will be down to the leadership of CEO designate Luke Miels to convince the market. He’s been handed a business in good shape and, if he can deliver on this goal, shareholders stand to be well rewarded.
“The market’s backing him for now, with a 3.5% share price increase this morning, but there’s a long road ahead. As Emma Walmsley’s relationship with the City has shown, it can be a demanding audience.”
GSK shares rally on CEO change, FTSE 100 higher
08:12 , Graeme EvansGSK shares today rose 3.5% or 52p to 1538p after the pharmaceuticals giant announced a change of leadership from the start of next year.
The FTSE 100 index lifted 0.5% or 45.16 points to 9329.99, leaving London’s top flight within 30 points of its record intraday high.
AstraZeneca shares are up by 1% or 140p to 11,140p, while other stronger stocks include Rolls-Royce following an improvement of 5.5p to 1188p.
The engine giant started the week with its stock market valuation just below £100 billion.
US markets focused on threat of government shutdown
07:37 , Graeme EvansUS stock market futures are pointing higher, despite the prospect of a government shutdown if Congress fails to pass a funding bill before Tuesday night.
Deutsche Bank said: “Fears of a shutdown rose significantly last week, particularly after President Trump cancelled a meeting planned with the Democratic leaders in the House and the Senate.
“But yesterday we heard that Trump will be meeting Democrat and Republican leaders today to try to broker a deal. So that helped the probability of a shutdown this year on Polymarket to fall from 84% yesterday to 72% this morning.”
In the event of a shutdown all non-essential federal employees would be furloughed.
Deutsche Bank said the longest shutdown was the 35 days straddling the end of 2018 and start of 2019. Others have lasted a few days or even only hours.
GSK names new chief executive
07:07 , Graeme EvansGSK today announced that chief executive Emma Walmsley is to step down from the board at the end of the year. She has been in charge of the drugs giant since April 2017.
Chief commercial officer Luke Miels, who joined GSK in 2017, will take on the £1.375 million a year role from January.
GSK chair Jonathan Symonds said: "On behalf of the board, I want to thank Emma and acknowledge her outstanding leadership in delivering a strategic transformation of GSK, including the successful demerger of Haleon.
“GSK today is necessarily very different to the company she was appointed to nine years ago and has a bright and ambitious future.
“The company is performing to a new, more competitive standard, with performance anchored in a stronger portfolio balanced across specialty medicines and vaccines.”
Walmsley joined GSK in 2010 from L’Oreal, having worked there for 17 years in a variety of roles in Paris, London, New York and Shanghai.
Before being appointed as GSK’s CEO, she led GSK consumer healthcare joint venture with Novartis following its creation in March 2015.
She said today: "2026 is a pivotal year for GSK to define its path for the decade ahead, and I believe the right moment for new leadership.
“As CEO, you hope to leave the company you love stronger than you found it and prepare for seamless succession. I'm proud to have done both - and to have created Haleon, a new world-leader in consumer health.
“Today, GSK is a biopharma innovator, with far stronger momentum and prospects than nine years ago.”
GSK shares start today’s session at 1486p, broadly unchanged on a year ago but up from 1264p seen in April.
FTSE 100 seen higher, Hang Seng index up 2%
07:00 , Graeme EvansGold traded above $3800 an ounce for the first time today, supported by hopes for more Federal Reserve interest rate cuts before the year end.
Stock markets are also trading higher, with the FTSE 100 index seen adding 0.4% to Friday’s rise of 70.85 points or 0.8% to 9284.83.
Reassuring figures on US inflation meant the Dow Jones Industrial Average rose 0.7%, the S&P 500 index by 0.6% and Nasdaq Composite by 0.4%.
Asia markets have posted a mixed performance this morning, with the Nikkei 225 down 0.9% and the Hang Seng index up by 2%.
The pound is stronger against the US dollar at $1.3438, while the price of Brent Crude has fallen back below $70 a barrel.
