Fixed-odds betting capped
UK chancellor Phillip Hammond had previously said the maximum bet for fixed-odds betting terminals would be reduced from £100 to £2 from October next year. But the government now appears to have changed its mind on timings; the reduction is now set to be put in place from April 2019. Concerns have mounted that fixed-odds betting terminals could lead participants to pay, and potentially lose, significant amounts of money. Gambling companies including 888 (888), Paddy Power Betfair (PPB) and GVC (GVC) saw mark-ups in their shares on the day of the announcement.
Addison Lee: appeal rejected
Drivers are employees
The Employment Appeal Tribunal has upheld a decision made by the Employment Tribunal in September 2017 that three drivers for taxi company Addison Lee were entitled to receive the national minimum wage and holiday pay – as employees rather than self-employed workers. The claims were brought by the GMB trade union and represented by law firm Leigh Day. The ruling could potentially benefit thousands of Addison Lee drivers. GMB’s legal director, Sue Harris, said: “This is another huge win for GMB over bogus self-employment. Other employers should take note – GMB will not stop pursuing these exploitative companies on behalf of our members.”
Astra streamlines
$1.5bn respiratory sale
AstraZeneca’s (AZN) strategy to divest what it deems to be “non-core” medicines from its product portfolio continued this week with the news that it has sold the US rights to Synagis, a respiratory syncytial virus (RSV) medication, to biopharmaceutical group Sobi for an upfront sum of $1.5bn (£1.16bn). Sobi will commercialise Synagis in the US, and around 130 AstraZeneca employees will transfer over to the biopharma group as part of the transaction. Sobi will also have the right to a share of US profits and losses related to a potential new medicine, known only as MEDI8897.
UK inflation flat
CPI at 2.2 per cent
According to the UK’s Office for National Statistics (ONS), the 12-month inflation rate for the consumer price index – including owner occupiers’ housing costs (CPIH) – was 2.2 per cent in October 2018, flat against September. The factors applying downward pressure to this rate included food and non-alcoholic drinks, clothing and footwear and some transport elements. The factors bolstering inflation included rising petrol, diesel and domestic gas prices, along with items within the miscellaneous goods and services, recreation and communication sectors. CPI (excluding ‘H’) came in at 2.4 per cent, also flat month on month.
Amazon and the big apple
New HQs in NYC and Virginia
US behemoth Amazon (US:AMZN) has selected Long Island City, New York and Arlington, Northern Virginia as the locations for its new headquarters. The group plans to invest $5bn and create more than 50,000 jobs across the new bases, with more than 25,000 employees in each. And it is establishing a smaller ‘Center of Excellence’ for its operations business in Nashville, Tennessee, creating more than 5,000 jobs. These sites join Amazon’s existing headquarters in Seattle. Each of the states will pay performance-based directive incentives to the company, subject to job creation and wage targets being met.
House of Fraser: Four stores to close
Couldn’t agree rent deals
Sports Direct (SPD) is to close four House of Fraser stores – having been unable to agree reduced rental terms with landlord Intu Properties (INTU). Sports Direct bought House of Fraser in August this year for a cash consideration of £90m, shortly after the latter entered into administration. At the time, chief executive Mike Ashley said that he intended to turn the acquired business into “the Harrods of the high street”, and that “we will do our best to keep as many stores open as possible”.
Vodafone's relief rally
Profit guidance improved
Vodafone (VOD) kept its interim dividend “stable” at 4.84ȼ, anticipating a full-year dividend of 15.07ȼ, flat year on year. Management will consider growing this over the long term, once leverage has reduced towards the lower end of its revised target range. The shares climbed 8 per cent on the day in response. The group also updated full-year guidance – it now expects underlying organic adjusted cash profit growth of around 3 per cent, against a prior range of 1-5 per cent.
