Business News

[Charliegrover]

Oil Prices Rise After Iraq Missile Attacks


Oil prices have risen after two bases hosting US troops in Iraq were hit by ballistic missiles. Brent crude was up by 1.4% at $69.21 per barrel in the middle of the Asian trade, easing back from earlier gains. So-called safe-haven assets, like gold and the Japanese yen, also rose on the news. At the same time, global stock prices were sent lower on concerns over the growing conflict in the Middle East. Japan's benchmark Nikkei 225 stock index fell by 1.3%, and Hang Seng in Hong Kong was down 0.8%. Iranian state television said the attack was a retaliation for the killing of the country's top commander Qasem Soleimani.

[Charliegrover]

Greggs Staff To Get £300 Bonus After 'phenomenal Year'


Thousands of Greggs staff are set to get a £300 one-off payment after a "phenomenal year", the firm said. Sales growth had been helped by Greggs' "now-iconic" vegan sausage rolls and strong demand for its traditional snacks, the bakery chain said. Greggs staff will share a £7m payment after shareholders received a £35m special dividend in October. The firm expects underlying annual pre-tax profit to be ahead of its expectations when it reports in March. The 19,000 Greggs staff who have been with the chain since before 31 March will get a £300 windfall at the end of January, while the remaining 6,000 will get £75 for each quarter they have worked for Greggs. The one-off payment to staff will be on top of the profit-sharing scheme that Greggs already has, a spokeswoman said. The bakery chain already shares 10% of profits with employees, she said. "Our record financial performance in 2019 has enabled us to enhance returns to shareholders," said chief executive Roger Whiteside. "I am delighted to announce that we will also be making a special additional payment to all of our colleagues across the business who have worked so hard to deliver this success in what has been a phenomenal year."

[Albert Davis]

Markets wobble as Iran strikes US forces; telecom stocks spurt



Equity benchmarks clawed back most of their lost ground to end modestly lower on Wednesday as global markets were whiplashed by a fresh wave of volatility after Iran launched retaliatory strikes against US forces in Iraq.
Equity benchmarks clawed back most of their lost ground to end modestly lower on Wednesday as global markets were whiplashed by a fresh wave of volatility after Iran launched retaliatory strikes against US forces in Iraq.

After plunging nearly 400 points in early trade, the 30-share BSE Sensex stabilized to finally settle 51.73 points, or 0.13 percent, down at 40,817.74.

Similarly, the broader Nifty shed 27.60 points, or 0.23 percent, to finish at 12,025.35.

[Charliegrover]

British Airways Owner's Boss Willie Walsh To Step Down



Willie Walsh, chief executive of International Airlines Group (IAG), the owner of British Airways, has announced he is to step down. He is set to retire as chief executive and from the board of IAG on 30 June. Mr Walsh said it had been a privilege to have worked on the creation of IAG after British Airways (BA) and Iberia were merged. Antonio Vázquez, IAG's chairman, described Mr Walsh as one of the "main drivers" of the project. Mr Walsh became the British Airways boss in 2005 and is ending a 15-year career with the IAG group, which also controls Aer Lingus and Vueling. He will step down from the role in March before retiring in June this year. Mr Walsh said: "It has been a privilege to have been instrumental in the creation and development of IAG. I have had the pleasure of working with many exceptional people over the past 15 years at British Airways and at IAG." Willie Walsh is a long-standing figure in the aviation industry. He joined Aer Lingus in the late 1970s as a cadet pilot.

[Charliegrover]

M&S Sales Squeezed As Men Shun Skinny Trousers



M&S said it overestimated demand for tight-fitting men's clothing in the run-up to Christmas. As a result, the High Street retailer said it had ordered more "regular" and "relaxed-fit" clothing for spring. M&S boss, Steve Rowe, said "disappointing" issues, such as the surplus of skinny menswear, held the firm back from a stronger performance over Christmas. Weak sales in clothing and homeware were offset by higher food sales.

[Charliegrover]

Boeing Faces Fine For 737 Max Plane 'designed By Clowns'



US regulators are seeking to fine Boeing $5.4m (£4.14m) for "knowingly" installing faulty parts on 737 Max planes. The move comes after the release of internal messages that raised more questions about the jet's safety. In one of the communications, an employee said the plane was "designed by clowns". Boeing has been under scrutiny since the fatal crashes of two 737 Max planes, which killed 346 people. The fine announced by the Federal Aviation Administration (FAA) on Friday is not connected to the software system that investigators have implicated in those crashes. It concerns "slat tracks" that are located on the wings.

The FAA said the company submitted the jets for FAA approval despite determining that the wing parts had failed a strength test. It also accused Boeing of failing to oversee its suppliers properly. The planemaker has the right to contest the penalty, which follows a $3.9m fine the FAA proposed against the US aerospace giant for similar reasons last month. Boeing did not immediately respond to a request for comment. The announcement heightens the pressure on the company, which is now facing multiple investigations following the 737 Max crashes in Indonesia and Ethiopia. Last month, the company fired chief executive Dennis Muilenburg. The firm said Friday it had denied him severance and that he had forfeited stock awards worth about $14.6m.

[Charliegrover]

Robert Burns 'worth more than £200m to the Scottish economy'



The economic and cultural importance of Robert Burns is worth £203m to Scotland each year, according to a new report. The University of Glasgow study found that the "worldwide fascination" with the poet supports Scottish businesses. It showed that investments in Scotland to recognise the bard, including the opening of the Robert Burns Birthplace Museum, have helped increase his value. The report includes a number of recommendations to help grow the value of Burns' brand for Scotland. The biggest economic benefit is Burns-related tourism, which brings in just under £155m, almost two-thirds of which goes to Ayrshire and Arran where the poet was born and lived most of his life. More than £200m is made through tourism, products and festivals celebrating the poet, and researchers also estimated that the Burns' brand is worth an additional £140m each year.

Prof Murray Pittock, who led the research, said the Scottish poet "still holds a huge fascination for a worldwide audience". "Burns has universal appeal with his work being translated into every single major language including Russian, German, French and Chinese. While Auld Lang Syne is our New Year anthem and has been performed by everyone from Elvis Presley to Jimi Hendrix." "We hope that our research will help to inform and encourage Scotland to continue to develop plans to promote Burns at home and abroad. It also shows the great potential of Burns' brand to support regional inclusive growth from hotels and restaurants to food, drink and memorabilia."

[Charliegrover]

Former Boeing chief Dennis Muilenburg leaves with $62m



Former Boeing chief Dennis Muilenburg has left the company with $62m (£48m) in compensation and pension benefits. Mr Muilenburg will not receive severance pay, according to a regulatory filing by Boeing. Boeing fired Mr Muilenburg in December to restore confidence in the firm after two deadly crashes involving its 737 Max plane. It said that Mr Muilenburg received the benefits he was "contractually entitled to" and that no annual bonus was paid. In addition to the $62m in compensation and pension benefits, Mr Muilenburg holds stock options that would have been worth $18.5m at the closing price on Friday.

The planemaker also confirmed that David Calhoun, its new boss, could receive a bonus of $7m, subject to whether or not he can get the 737 Max flying safely again. Boeing said it was confident that Mr Calhoun was the right person "to strengthen Boeing's safety culture, improve transparency and rebuild trust". He was appointed as chief executive and president of Boeing having served on the firm's board since 2009. The figures were disclosed during a difficult week for the planemaker when internal messages were released that raised further questions over the jet's safety. An employee said the plane was "designed by clowns" in one of the communications. Boeing has faced scrutiny since the fatal crashes of two 737 Max planes, which killed nearly 350 people. It is facing multiple investigations following the crashes in Indonesia and Ethiopia.

[Charliegrover]

Yusaku Maezawa: Japanese Billionaire Seeks 'Life Partner' For Moon Voyage


Japanese billionaire Yusaku Maezawa is looking for a female "life partner" to accompany him on Space X's maiden tourist voyage to the Moon. The fashion mogul, 44, is set to be the first civilian passenger to fly around the moon on the Starship rocket. Planned for 2023, the mission will be the first lunar journey by humans since 1972. In an online appeal, Mr Maezawa says he wants to share the experience with a "special" woman. The entrepreneur, who recently split up from actress girlfriend Ayame Goriki, 27, has asked women to apply for a "planned match-making event" on his website. "As feelings of loneliness and emptiness slowly begin to surge upon me, there's one thing that I think about: Continuing to love one woman," Mr Maezawa wrote on the website. "I want to find a 'life partner'," Mr Maezawa added. "With that future partner of mine, I want to shout our love and world peace from outer space." The website features a list of conditions and a schedule for the three-month-long application process. Written in a dating profile-style, the conditions say applicants must be single, over the age of 20, always positive and have an interest in going to space. The deadline for applications is 17 January and a final decision on Mr Maezawa's partner will be made at the end of March.

[Charliegrover]

Trump launches fresh attack on Apple over privacy



US President Donald Trump has launched a fresh attack on Apple. He tweeted that the company was refusing to unlock iPhones "used by killers, drug dealers and other violent criminal elements". On Monday US Attorney General William Barr accused Apple of not being helpful in an inquiry into a shooting that is being treated as a terrorist act. It is the latest in a series of clashes between the White House and technology giants over access to data. Mr Trump accused Apple of refusing to co-operate with investigators despite his administration helping the company on trade and other issues. This is not the first time Apple has clashed with the US justice department. After a mass shooting in San Bernardino, California in 2015, in which 14 people were killed and 22 others were seriously injured, Apple refused to help gain access to the gunman's iPhone. The US government ended up paying another company a reported $1m (£770,000) to develop software to get around the device's encryption. The disputes highlight the ongoing disagreement between the technology industry and law enforcement agencies around the world. On one side encryption plays a crucial role in protecting people's privacy, on the other it can cause major issues for criminal investigators.