Major International Business Headlines Brief::: 16 November 2018

Fri Nov 16 06:25:17 CAT 2018

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Major International Business Headlines Brief::: 16 November 2018

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*  South Africa central bank to hold rates, but a close call

*  MTN Rwanda close to finalising a 50 bln franc syndicated loan

*  Nigeria raises $2.86 bln in Eurobonds to fund deficit

*  South Africa's Woolworths posts 2.7 pct rise in 20-week sales

*  Ghana budget deficit seen easing to 4.2 pct in 2019 from 4.5 pct 2018 target

*  GE passes Nigerian rail concession leadership to South Africa's Transnet

*  Russia’s Alrosa sells stake in Botswana diamond joint venture

*  Mediclinic H1 core profit down 8 percent on weak Swiss performance, shares fall

*  Glencore's Katanga warns of earnings hit if Congo row not resolved

*  Vodacom Tanzania approves sale of 26 pct stake to South Africa's Vodacom Group

*  Pound and UK shares hit by Brexit turmoil

*  Facebook accused of dark PR tactics

*  Manchester United revenues slip on fewer home games

*  Beyoncé buys out Ivy Park venture from Sir Philip Green

*  Uber loss tops $1bn ahead of planned IPO next year

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South Africa central bank to hold rates, but a close call

JOHANNESBURG (Reuters) - South Africa’s central bank will keep interest rates on hold at its Nov. 22 meeting, according to a Reuters poll, but the number of economists forecasting a rise suggests it is a very close call.

In a poll taken in the past week, 16 of 26 economists said the South African Reserve Bank (SARB) would keep its repo rate at 6.50 percent while the rest opted for a 25 basis-point hike.

As a whole, economists gave a median 45 percent chance of a hike this month, suggesting the Bank may not wait until January or March before raising the rate to 6.75 percent.

“The probability of a rate hike is increasing, and if it was not for a stronger rand after the U.S. midterm election and the lower international oil price, the probability could have been in favour for a rate hike in November,” said Johannes Jordaan at Economic Modelling Solutions.

The rand has rallied this month back to the firmer 14 per dollar area after hitting this year’s weakest level at 15.69 just two months ago.

At the last meeting, four members of the Monetary Policy Committee (MPC) voted for no change and three for a 25 basis point increase, but Bank Governor Lesetja Kganyago struck a more hawkish tone.

“There is an argument for the SARB acting more proactively now at this stage of the cycle, to avoid having to tighten even more later on in the cycle,” said Razia Khan, head of Africa research at Standard Chartered.

After the last MPC meeting the ruling African National Congress initially called on the Bank to help the poor in “driving growth, creation of jobs and reduction of the capital costs in the economy,” but it later retracted the statement.

The SARB is comfortable when inflation is close to the middle of its 3-6 percent target band and not with the consumer price index rate sticky towards the upper end. It was unchanged at 4.9 percent in September.

“So for any inflation-targeting central bank uncomfortable about the suggestion that inflation may stay towards the upper end of the inflation target range, that is, too close to 6 percent, we think there is a very compelling reason to tighten,” Khan said.

She said Standard Chartered had not seen anything suggesting U.S. economic momentum will fade sufficiently for the Fed not to keep tightening and so emerging markets are still at risk.

Still, a separate Reuters poll this month found the rand was expected to be 2 percent higher in a year as local economic reforms kick in - although it may be held back by a potentially more hawkish U.S. Federal Reserve. [ZAR/POLL]

The Fed has raised interest rates eight times since December 2015, including three times so far this year. The Fed is widely expected to raise rates again in December. [ECILT/US]

The Central Bank of Nigeria (CBN), managing South Africa’s peer and the continent’s biggest economy, is expected to hold rates at 14.00 percent on Nov 20, even after consumer inflation rose to 11.28 percent in September.

“Developments around a potential minimum wage increase and pre-election spending will likely increase the hawkish stance of the CBN. This will be reinforced by some concern over recent capital inflow reversals,” said Khan.

“That said, an actual rate hike just before the election is difficult to see.”

Nigeria is due to hold elections in February. The Reuters poll forecast that Nigeria would hold rates steady through next year.

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MTN Rwanda close to finalising a 50 bln franc syndicated loan

KIGALI (Reuters) - MTN Rwanda, the biggest telecoms operator in the East African nation, is close to sealing a deal for a 50 billion franc ($56.29 million) syndicated loan to be used to modernise its network, its chief financial officer said on Thursday.

Diatile Lily Zondo told Reuters that the company had no plans for an initial public offering, disputing a report by news agency Bloomberg earlier in the week.

($1 = 888.1812 Rwandan francs)

Nigeria raises $2.86 bln in Eurobonds to fund deficit

LAGOS (Reuters) - Nigeria raised $2.86 billion in Eurobonds on Wednesday across three maturities, to help fund its budget deficit, in a sale that was three times oversubscribed, the government said.

It priced the bonds with maturities of seven, 12 and 30 years at 7.625 percent, 8.75 percent and 9.25 percent, respectively.

Nigerian officials have been meeting investors at a roadshow organised by Citi and Standard Chartered in London this week prior to issuing the Eurobond.

The meeting led by Nigerian Finance Minister Zainab Ahmed, was attended by Budget Minister Udoma Udo Udoma, Central Bank Governor Godwin Emefiele and head of the Debt Management Office (DMO).

The government said demand for the dollar-denominated bond stood at $9.5 billion from global institutional investors. The bond would help Nigeria fund its budget deficit for 2018 and other financing needs, it said.

“Despite significant oil and wider macro market volatility, Nigeria has successfully raised its external debt requirements for the 2018 budget at a cost considerably lower than many of its peers across Sub-Sahara Africa,” the government said in a statement.

Nigeria sold $1.18 billion in seven-year tenor, $1 billion with 12-year maturity and $750 million for 30-years. The offer would close on Nov. 21.

The upper house of parliament last month approved the Eurobond issue but advised the government to limit foreign borrowing and boost revenue.

Wednesday’s issue is Nigeria’s sixth Eurobond sale.

Last year Nigeria sold $3 billion in Eurobonds, part of which it used to fund its 2017 budget. It then followed with a $2.5 billion Eurobond sale in February to refinance local currency bonds at lower cost.

Lawmakers said the new bond issue will raise foreign borrowing to 32 percent of Nigeria’s total debt, up from 30 percent at June 2018.

Nigeria, which emerged from recession last year, approved a three-year plan in 2016 to borrow more from abroad. It wants 40 percent of its loans to come from offshore sources to lower borrowing costs and help to fund record-high budgets.

President Muhammadu Buhari, who plans to seek a second term in next year’s election, signed 2018’s record 9.12 trillion naira ($29.8 billion) budget into law in June as part of efforts to foster economic growth.

Fitch upgraded the outlook on Nigeria’s sovereign rating to stable from negative prior to Wednesday’s issue, the statement said.

South Africa's Woolworths posts 2.7 pct rise in 20-week sales

JOHANNESBURG (Reuters) - South African retailer Woolworths Holdings Ltd reported a 2.7 percent rise in sales for the 20 weeks ended Nov. 12, helped by its local food and Australian businesses.

Food sales climbed 7.2 percent from a year earlier, with volume driven by low inflation and aggressive promotion. Comparable store sales increased by 5 percent.

Sales at the local fashion, beauty and home business, which has been under pressure recently from constrained economic conditions, declined by 3.3 percent.

Compounding problems for the department store chain operator, its offerings and positioning in womenswear, particularly in the relaunched sub-brand, EDITION, did not resonate with its core customers.

“While sales for the first quarter ended 23 September 2018 were affected by a significantly smaller winter sale, regular sales in October, particularly in womenswear, have shown a positive trend,” the firm said in a statement.

Its David Jones business in Australia has been going through a number of transformation initiatives, including putting in place new merchandise and finance systems, new online platform and repositioning its food business, which had seen significant costs and disruptions.

But the sales momentum in David Jones continued into the new financial year, with sales increasing by 2.9 percent and comparable store sales by 2.4 percent. Online sales also grew, by 48.4 percent.

Earlier this month, the retailer said it would phase out the David Jones brand in South Africa, heeding calls from its loyal customers for an increased emphasis on the Woolworths brand. The David Jones brand will now only be available in Australia and New Zealand.

Woolworths said earnings per share (EPS) is expected to be more than 100 percent higher in the 26 weeks ending Dec. 23, compared with a loss of 505.9 cents in the same period last year, in the absence of a once-off hefty impairment of the carrying value of David Jones.

For the 53 weeks ending June 2019, the company expects EPS to be more than 150 percent higher, compared with a loss of 369.5 cents a year earlier.

Ghana budget deficit seen easing to 4.2 pct in 2019 from 4.5 pct 2018 target

ACCRA (Reuters) - Ghana aims to narrow its budget deficit to 4.2 percent of gross domestic product in 2019 and forecasts GDP growth of 7.6 percent including oil, Finance Minister Ken Ofori-Atta said on Thursday.

The West African commodity exporter aims for inflation of 8 percent by the end of next year, the same as its 2018 target. Non-oil growth is seen at 6.2 percent, Ofori-Atta said in a budget statement to Parliament.

GE passes Nigerian rail concession leadership to South Africa's Transnet

ABUJA (Reuters) - General Electric (GE) said on Thursday it has passed the leadership of a consortium picked to run a Nigerian rail concession to South Africa’s Transnet after the U.S. firm exited its transport business.

Russia’s Alrosa sells stake in Botswana diamond joint venture

GABORONE (Reuters) - Botswana Diamonds said it had bought joint venture partner Alrosa out of Sunland Minerals and was in talks about selling a stake in the project to another partner.

“The company anticipates the new partner stepping into the exploration shoes of Alrosa and, once the deal is finalised, work could begin in the first half of 2019,” it said.

Botswana Diamonds, which previously held 50 percent in company exploring for diamonds in Botswana’s Central Kalahari Game Reserve, did not disclose the amount paid to Russia’s Alrosa or the name of the “large diamond producer with new ideas” that was close to acquiring the stake.

“New investment into Sunland could not be formalised until Botswana Diamonds took title to the Sunland shares,” Botswana Diamonds said in a statement on Thursday.

The joint venture was established in 2014 to test Alrosa’s exploration technology to identify new diamond-bearing kimberlites under the Kalahari sands.

Mediclinic H1 core profit down 8 percent on weak Swiss performance, shares fall

JOHANNESBURG (Reuters) - Mediclinic International Plc reported an 8 percent decline in half-year core profit on Thursday, reflecting a disappointing performance from its Swiss operation Hirslanden due to regulatory changes in the country’s healthcare market.

A constituent of London’s FTSE 100 index with a secondary listing in Johannesburg, Mediclinic has faced stricter regulations this year in Switzerland that have hobbled growth. These include tariff reductions for outpatients and less favourable insurance mix.

The private healthcare group reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of 213 million pounds ($277 million) for the six months to September 30, down from 232 million a year earlier.

The company said it took a non-cash impairment charge on the equity investment in Spire Healthcare of 164 million pounds and non-cash Hirslanden impairment charges of 98 million pounds.

The charges resulted in the private healthcare provider reporting a wider loss of 168 million pounds from a loss of 50 million pounds a year earlier.

“The group’s first half financial results were disappointing,” group Chief Executive Ronnie van der Merwe said in a statement.

“The poor performance in Switzerland more than outweighed the revenue growth and margin expansion delivered by the Southern Africa and Middle East divisions.”

Johannesburg-listed shares of Mediclinic were down 6.51 percent to 62.30 rand, while the London-listed shares were down 4.27 percent at 0922 GMT.

($1 = 0.7716 pounds)

Glencore's Katanga warns of earnings hit if Congo row not resolved

LONDON (Reuters) - Katanga Mining expects its earnings to be hit if a row with Democratic Republic of Congo that has prevented it from importing and exporting copper is not resolved soon.

Although Glencore’s Katanga said on Thursday that copper production was continuing as normal, it warned that its earnings would be affected if the dispute is not settled.

“Unless the dispute with the DGDA (customs authority) is resolved and KCC’s (Kamoto Copper Company) imports and exports are permitted to resume in the near future, the suspension of imports and exports is expected to negatively impact the Company’s production and revenue,” it said.

Glencore declined to comment, while Congolese authorities were not immediately available to comment.

Operating in Congo has been complicated by a tangle of legal disputes and arguments over increased royalties.

In addition, last week, Katanga said it was halting cobalt exports while it builds a facility to remove uranium that meant the mineral could not be exported.

In its results statement on Thursday, Katanga said the DGDA had issued an order on Nov. 9 temporarily preventing it from importing or exporting any material, including copper.

Congolose authorities alleged it had failed to “declare and pay duties on the export of at least 6,650 tonnes of copper in December 2014 and January 2015”, Katanga added.

Katanga disputes the charge, which follows the company’s previous overstatement of copper cathode production by 6,650 tonnes in December, 2014.

It said on Thursday the DGDA was claiming export duties, even though the copper was not produced or exported.

Congolese authorities have said in previous statements that they were seeking talks with the international operators.

Vodacom Tanzania approves sale of 26 pct stake to South Africa's Vodacom Group

DAR ES SALAAM (Reuters) - Vodacom Tanzania shareholders on Wednesday approved the sale of a 26 percent stake owned by Mirambo Holdings Ltd to South Africa’s Vodacom Group.

Shareholders approved the transaction during an extraordinary annual general meeting in Tanzania’s commercial capital, Dar es Salaam.

“What we did today is just part of the required approval for the deal and this does not mean the deal is done, there are other authorities that need to approve it too, Ali Mufuruki, Vodacom Tanzania’s chairman said.

Mirambo Holdings is the investment vehicle of Tanzanian business tycoon Rostam Aziz.

Pound and UK shares hit by Brexit turmoil

The pound and shares in housebuilders and banks have fallen sharply after cabinet ministers Dominic Raab and Esther McVey quit over Prime Minister Theresa May's draft Brexit deal.

Royal Bank of Scotland sank 9%, with 7% falls for Persimmon, Taylor Wimpey and Barratt Developments.

Sterling fell 1.7% against the dollar and 1.9% against the euro.

The FTSE 100 index closed little moved, but the FTSE 250, which mainly comprises UK-focused firms, fell 1.6%.

Capita topped the fallers in the FTSE 250, plunging 14%, with Countryside Properties down 9%.

Why have shares tumbled?

Shares in companies that do most or all of their business in the UK reflected the continued political uncertainty, as members of the Conservative Party and opposition politicians voiced their scepticism over the draft deal.

"The market has taken a big red pen to stocks which are heavily exposed to the UK economy like the banks, retailers and housebuilders," said Laith Khalaf at Hargreaves Lansdown.

"These sectors were already under pressure, but the potential for an orderly Brexit to unravel in the next few days is causing further distress to be manifested in share prices."

BBC business editor Simon Jack said: "The odds of a general election have just gone up and that means the possibility of a Corbyn government must have increased as well.

"Markets don't like the prospect of that because of Labour's intention to raise taxes on companies and nationalise large sections of the economy."

The higher chances of an election was one of the reasons behind RBS' steep fall, as the Labour Party has said it would nationalise the lender. However, shares in other banks also fell, as investors considered the threat to the economy and therefore to banks' balance sheets if the UK were to leave the EU without a deal.

What's happened to the pound?

Sterling ended the day in London at under $1.28 against the dollar after a turbulent day's trading.

Initially on Wednesday, when Theresa May announced she had secured cabinet backing for the draft Brexit agreement with Brussels, the pound recovered earlier lost ground. But by Thursday morning it was already wavering.

A string of ministerial resignations led by Brexit Secretary Dominic Raab and Work and Pensions Secretary Esther McVey, undermined confidence in the pound further as market observers deemed the chances of a disorderly Brexit had risen.

Pound vs US dollar

How has Brexit affected the pound's volatility?

The Brexit process has been punctuated by big movements in the pound's relationship with the dollar, something which can lead to big gains or losses for investors.

In the run-up to, and immediate aftermath of the Brexit referendum on 23 June 2016, for example, the pound hit a peak of volatility against the dollar.

And as the graphic below shows, the events surrounding Wednesday's draft agreement has triggered the greatest volatility for sterling since the referendum.

What do the currency strategists say?

Jane Foley at Rabobank said the pound's plunge was "firmly tied" to the perception that Mrs May will have difficulty in pushing the Brexit plan through Parliament.

She said the resignations had increased speculation that the prime minister would face a no-confidence vote, something that would weigh heavily on the pound: "Any turn of events that could raise the risk of a general election would also punish the pound, given the risk of a market-unfriendly far-left government."

Chris Turner at ING said Mr Raab's resignation had increased the chances of a leadership challenge and a no-deal Brexit.

He said the pound "could fall another 3-4% unless the threat of a leadership election is quashed or there are clearer signs that the withdrawal agreement can garner more support in parliament".

What does business think of the agreement?

Organisations that speak on behalf of business like the Confederation of British Industry welcomed the draft deal, because it offered the prospect of a smooth path towards Brexit.

The CBI described the agreement as a "compromise, including for business" but was happy that it represented a "step back from the cliff-edge".

The agreement includes a 21-month transition period, during which time the UK will negotiate new trade terms with the EU. The UK would have a unilateral right to extend that transition period, which was described as "very positive for business" by James Stewart, head of Brexit at KPMG.

Northern Ireland also has the guarantee of a "friction-free" customs border with the Republic of Ireland.

CBI Director-general Carolyn Fairbairn told the BBC: "There is a possible path to frictionless trade now in terms of negotiating the final deal. I don't think anyone thinks the transition or the backstop is the answer, so this has to be used as a route to a final deal with frictionless trade and access for services."

So is everyone happy?

Of course not.

Pro-Brexit economist Gerard Lyons, chief economic strategist at Netwealth Investment and former chief economic adviser to Boris Johnson while he was Mayor of London, says the draft withdrawal deal is not something to cheer about.

"Whilst it has avoided the cliff edge, I think it's important we don't bury our heads in the sands here and view this as a 'good' deal - this is still disappointing," he said.

Those who had hoped the draft deal would supply some reassurance will also be disappointed as Theresa May wrestles with critics and struggles to unite enough MPs behind her plan.--BBC

Facebook accused of dark PR tactics

Facebook faces a new controversy over alleged tactics it used to discredit its critics, embarrass rival firms and downplay problems at the company.

The New York Times has published a wide-ranging account of the methods Facebook and a public relations firm used to "deny and deflect" criticism.

The report has led US lawmakers to call for tighter regulation of social networks.

Facebook has denied several of the claims.

The New York Times report claimed Facebook:

*         urged reporters to investigate whether there were financial links between billionaire George Soros, a prominent philanthropist, and an anti-Facebook movement

*         tried to discredit anti-Facebook protesters as anti-Semitic

*         ordered the publication of derogatory articles about rivals

*         watered down posts about Russian election interference and was slow to act

*         considered dragging rival companies into its controversies

The newspaper said PR firm Definers had circulated a document suggesting Mr Soros was the hidden backer of anti-Facebook movement Freedom from Facebook.

Facebook leaks take their toll

The document encouraged journalists to explore the financial connections between anti-Facebook groups and Mr Soros, who is frequently the target of conspiracy theories and anti-Semitic smears.

Mr Soros's Open Society Foundations said it had not made any grants to support campaigns against Facebook. It said Facebook's behaviour was "astonishing".

"Your methods threaten the very values underpinning our democracy," said its president, Patrick Gaspard.

Responding to the article, Facebook said it had wanted to show that Freedom From Facebook was "not simply a spontaneous grassroots campaign" and that the movement was "supported by a well-known critic of our company".

It said any suggestion that it had been an anti-Semitic attack was "reprehensible".

Chief executive Mark Zuckerberg later said that neither he nor chief operating officer Sheryl Sandberg had been "in the loop" about Definers' actions and added that Facebook would no longer work with the firm.

Sir Nick Clegg - the UK's former deputy prime minister who recently became Facebook's head of global policy - will oversee a review of the social network's use of other lobbyists and will report back on the matter to Ms Sandberg.

In July, protesters interrupted a House Judiciary Committee hearing where a Facebook executive was giving testimony.

The protesters carried signs showing Mr Zuckerberg and Ms Sandberg as two heads of an octopus, wrapping its tentacles around the world.

The New York Times said Facebook had called Jewish civil rights organisation the Anti-Defamation League and asked them to comment on the sign.

Soon after, the ADL posted a statement calling the image an "anti-Semitic trope".

Facebook has not responded to this claim.

The ADL said it routinely responded to reports of anti-Semitic slurs and evaluated each one appropriately.

Did it water down information about election meddling?

According to the New York Times, Facebook executives were angry that its chief information security officer, Alex Stamos, had directed a team to investigate Russian election meddling without approval.

It said Ms Sandberg had been worried that investigating the interference left Facebook "exposed" to legal action.

The company ordered blog posts about election interference to be "less specific".

The first blog post did not name Russia at all and the company "stalled" disclosing information for weeks.

Facebook said it had not named Russia in a research paper about election meddling because it had felt the US intelligence services were "best placed to determine the source".

The company said it had never discouraged its security experts from investigating election interference.

Did it plant negative news about rivals?

The newspaper said Facebook was responsible for dozens of articles criticising Apple and Google for their business practices.

The articles were published on conservative news site NTK Network, which shares staff and offices with PR firm Definers.

While NTK itself does not have a large audience, its articles are often picked up by larger outlets such as Breitbart.

Facebook said Mr Zuckerberg had been clear that he disagreed with Apple chief executive Tim Cook's criticisms of his company and there had been "no need to employ anyone else" to criticise Apple.

It said Mr Zuckerberg and chief operating officer Sheryl Sandberg had been "deeply involved in the fight against false news".

Did Facebook try to generate positive headlines?

In February 2018, Ms Sandberg publicly backed new legislation that would hold social networks accountable if they failed to tackle sex trafficking on their platforms.

Other technology companies had been critical of the proposed law.

According to the New York Times, Facebook felt backing the legislation would look positive and would win favour with law-makers.

But Facebook said Ms Sandberg had backed the legislation because "it was the right thing to do".

Did Facebook try to drag Google into its controversies?

After a New York Times article revealed that Facebook had undeclared deals with phone-makers to share user data with them, the company set up focus groups to test how it should react.

One approach it tested was arguing that Google had similar data-sharing deals with phone-makers.

When asked to testify in front of the Senate Intelligence Committee, Facebook lobbied for the hearing to include a Google representative, the newspaper said.

Google was asked to testify but did not show up. Many of the news headlines of the day focused on Google's empty chair.

What were the other allegations?

The report also said Facebook had urged staff to use only Android devices, after Apple's Tim Cook had criticised the social network.

Facebook said it encouraged employees and executives to use Android because "it is the most popular operating system in the world".

The newspaper also suggested Facebook had struggled to work out how to deal with a post made by Donald Trump in 2015, calling for a ban on Muslim immigration.

"To suggest that the internal debate around this particular case was different from other important free speech issues on Facebook is wrong," the company said in a blog post.

What has the reaction been?

The Wall Street Journal reported that morale at Facebook had fallen amid the ongoing scrutiny of the company.

It said it had seen an internal survey taken by 29,000 employees that reported only half were "optimistic" about the company's future, a fall of 32 percentage points from the previous year.

The Open Society Foundations president, Mr Gaspard, said Facebook had used tactics "out of Putin's playbook" that had "no place in an important debate about the integrity of our elections".

Democratic congressman David Cicilline said in a post that "Facebook cannot be trusted to regulate itself".

"Facebook executives will always put their massive profits ahead of the interests of their customers," he said.

"Congress should get to work enacting new laws to hold concentrated economic power to account."

Facebook said it had ended its relationship with Definers and had never hidden its work with the consultancy.

Definers has not yet responded to the BBC's request for comment.

We knew that Facebook's handling of its recent crises had been inept.

Mark Zuckerberg's description of the idea that fake news put Donald Trump in the White House as "crazy" was a prime example.

But now the New York Times has painted a startling picture not just of negligence and mismanagement by Facebook's leaders but of deeply questionable tactics as they fought to protect the image of their company.

This new evidence of ethical failings will also embolden politicians and regulators around the world who want to clip Facebook's wings.--BBC

Manchester United revenues slip on fewer home games

Revenue at Manchester United fell in the first quarter as the Premier League club played fewer home games.

Sales for the three months to 30 September came in at £135m, compared with £143.7m a year earlier, it said.

However, the 20-time English champions stuck to their full-year financial forecasts.

United, whose squad features French World Cup winner Paul Pogba and Spanish goalkeeper David de Gea, are currently eighth in the Premier League.

Man Utd 'most valuable club in Europe'

Premier League revenues soar to £4.5bn

They are 12 points behind leaders and cross-town rivals Manchester City.

'Financial strength'

During the three-month period, which covered the start of the season, the club said it played two fewer home games than last year which translated into lower sales of matchday tickets and merchandise.

This was due to a quirk of scheduling between the first and second quarters.

Sponsorship also dipped, primarily due to a smaller summer tour, although turnover from broadcasting jumped almost 5% to £43m.

The club said it still expected to report revenues of £615m-£630m in 2018-19 while earnings before interest and other charges would come in at £175m-£190m.

"Our financial strength enables us to continue to attract and retain top players and to invest in our academy, as we look to drive the success on the pitch that the club and our fans expect," executive vice chairman Ed Woodward said.

This year Manchester United was again named Europe's most valuable football club, according to accountancy giant KPMG.

The club topped KPMG's study of top sides' "enterprise value", being worth about €3.25bn (£2.9bn), ahead of Real Madrid and Barcelona.--BBC

Beyoncé buys out Ivy Park venture from Sir Philip Green

Beyoncé has ended a business venture with Topshop boss Sir Philip Green by buying him out of Ivy Park, the gymwear label they founded together.

The pair launched Ivy Park two years ago, playing on the personal brand of the US singer and outspoken feminist.

The buyout comes weeks after Sir Philip was named as having taken legal action to prevent publication of allegations of sexual harassment of staff.

Sir Philip says he "categorically and wholly" denies the allegations.

However, Beyoncé had faced pressure from campaigners to cut ties.

In a statement on Thursday, Ivy Park said: "After discussions of almost a year, Parkwood has acquired 100% of the Ivy Park brand. Topshop - Arcadia will fulfil the existing orders."

Sir Philip Green: From 'King of the High Street' to 'unacceptable face of capitalism'

Naming Green 'right thing to do', says Hain

Ivy Park sells items such as hoodies and leggings, part of a trend towards so called athleisure.

Beyoncé and Sir Philip had both owned 50% stakes in the label, which is named after the singer's daughter with rapper Jay Z, Blue Ivy.

Sir Philip, one of Britain's best known businessmen, was named in parliament last month by Lord Hain as the man behind a court injunction preventing the publication of allegations of sexual harassment and racial abuse of staff.

In a statement last month, he denied having broken the law and said his businesses fully investigated employee grievances.

Topshop dismantles feminism pop-up

However, campaign Equality Now had called for Beyoncé to end her relationship with the tycoon, arguing it was at odds with her stated principles.

Yasmeen Hassan, from the campaign group, said in October: "Beyoncé has put herself forward as a women's rights activist. She and her team need to look closely at these allegations."

Another activist, Nimco Ali, said: "Beyoncé should say 'I don't want to work with Philip Green'."

A representative of Sir Philip would not comment further on the Ivy Park deal, while Beyoncé could not be reached for additional comment.--BBC

Uber loss tops $1bn ahead of planned IPO next year

Uber posted a loss of $1.07bn (£821m) in the three months to September, as the ride-sharing firm prepares for a public stock offering next year.

The US company's net losses widened sharply on a quarterly basis as revenues rose only slightly.

Uber was recently valued at $72bn, making it one of the most valuable privately held firms in the world.

But it is under pressure to become more profitable for a planned offering of its shares to the public next year.

Net losses widened sharply to $1.07bn from $891m, figures from Uber showed, as revenues and bookings rose only slightly.

But losses were down 27% compared to the same period last year, according to Reuters.

"We had another strong quarter for a business of our size and global scope," Uber chief financial officer Nelson Chai said in a statement.

"As we look ahead to an IPO and beyond, we are investing in future growth across our platform, including in food, freight, electric bikes and scooters, and high-potential markets in India and the Middle East where we continue to solidify our leadership position."

Uber 'to focus on bikes over cars'

Ola to challenge Uber in UK

Revenues rose by 5% on the previous quarter to $2.95bn, while gross bookings were up 6% at $12.7bn.

Bookings growth slid into the single digits on a quarterly basis at the start of this year, Reuters said.

Japan's Softbank has taken a 15% stake in Uber in a deal which foresees an initial public offering by Uber next year.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

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