Business in 60 Seconds

GardaWorld makes $3.8B hostile takeover bid for G4S

Canadian security group, GardaWorld, has made a formal 3-point-8 billion dollar hostile takeover bid for its bigger UK rival, G4S. GardaWorld says G4S needs fresh management to deal with a series of scandals and lawsuits. G4S's board has unanimously rejected the offer, saying it significantly undervalues the group.

Turkey cuts tax on foreign currency transactions

Turkey has lowered a tax on foreign currency transactions in its latest step to support financial stability. The 'bank and insurance transaction tax' on retail foreign currency purchases, including gold, has been cut to 0-point-2 percent from 1 percent. The country has also slashed the level of withholding tax on lira bank deposits of more than one year to zero from 10-percent.

Disney to cut 28,000 jobs in US theme parks division

Shares in Disney fell after the company said it's laying-off 28-thousand employees, mostly at its US theme parks. That's as the COVID-19 pandemic weighs on its operations. The entertainment giant has blamed the parks' limited visitor capacity due to social- distancing requirements. Disney reported a 4-point-7 billion dollar loss in the quarter to June, as its theme parks business lost 2-billion dollars.

South Africa's unemployment rate falls to 23.3% in Q2

South Africa's unemployment rate fell to the lowest in 11 years in the second quarter despite the loss of 2.2 million jobs. The jobless rate fell to 23-point-3 percent in the three months through June. But the country was under a strict lockdown during the period, preventing people from looking for work. That brought the jobless rate down because only those actively looking for work are counted as unemployed.

LVMH countersues Tiffany over $16B collapsed merger

LVMH has countersued Tiffany & Co after scrapping its planned 16-point-2 billion dollar takeover of the iconic US jeweler. The French luxury goods giant has accused Tiffany's board of making crucial financial mistakes since the deal was unveiled last year. Earlier this month, Tiffany filed a lawsuit against the Louis Vuitton- owner to force it to complete the deal.

NTT to spend $40B to take wireless carrier unit private

Japan's biggest telecoms company, Nippon Telegraph and Telephone Corp, says it'll spend 40-billion- dollars to take its wireless carrier unit private. The group already owns 66-point-2 percent of NTT DoCoMo. The move comes as Japan's new prime minister Yoshihide Suga called for a reduction in mobile fees.

US judge temporarily halts Trump's TikTok ban

A US federal court has temporarily suspended a Trump administration order that would've banned TikTok from being downloaded from US app stores. But the judge hasn't blocked a much broader ban set to come into effect on the 12th of November. TikTok's Chinese owner, ByteDance, has struck a deal to partner with Walmart and Oracle in the hope of averting a total ban in the US.

Qatar Airways receives $2B in state aid as losses widen

Qatar Airways has received a nearly 2-billion- dollar lifeline from the Qatari government to help it weather multiple crises. The state-owned carrier unveiled a net loss of 1-point-9 billion dollars for the year ended in March. The airline's earnings have been hit by the pandemic and a boycott by Gulf neighbours. It's investment in Air Italy has also turned sour, after the carrier went into liquidation in February.

BTS's management label prices IPO at top end of range

Big Hit Entertainment, the music label behind the popular South Korean K-Pop group, BTS, has priced its initial public offering at the top of the range. A regulatory filing shows each share has been priced at around 115-dollars, and that Big Hit could raise 820-million- dollars through the offer. The label is expected to list on the KOSPI exchange on the 15th of October.

UK budget deficit set to surpass $500B this fiscal year

The UK's budget deficit is on track to exceed half-a-trillion dollars in the current fiscal year. The government borrowed 222 billion dollars in the first five months as it tries to cushion the impact of the coronavirus pandemic. Earlier this week, the government unveiled a new 6-point-3 billion dollar support programme to protect jobs.

Turkish lira rallies after govt eases trading restrictions

The Turkish Lira strengthened for the second day in a row after the central bank eased trading curbs for foreign investors. The watchdog raised the limits on currency swaps and other derivative deals that lenders can carry out with foreign counterparts. The move follows the central bank's decision to hike its key interest rate by 200 basis points.

Harley-Davidson to exit India, world's largest bike market

US iconic motorcycle maker, Harley-Davidson is stopping manufacturing in India. The decision came after a decade of unsuccessful efforts to gain a foothold in the world's largest two-wheeler market. The departure is the latest blow for Prime Minister Narendra Modi's strategy to encourage domestic manufacturing.

US weekly jobless claims rise slightly to 870,000

Another 870-thousand Americans filed for unemployment benefits last week, marking a slight increase from the previous reading. The US Labor Department's latest figures represent the fourth consecutive week that new jobless claims have come in below the 1-million mark. But the pace of the labour market's recovery has slowed, as coronavirus cases surge in parts of the US.

TikTok asks US judge to block Trump's download ban

TikTok has asked a US federal judge to block a Trump administration order that would remove the video-sharing app from US app stores. The company says the order exceeds the Commerce Department and the president's powers under US law. Meanwhile, TikTok's Chinese owner, ByteDance, has applied for a tech export license in China, after it reached a deal with Oracle and Walmart for a stake in the app.

Westpac to pay $920M over money-laundering scandal

Australia's Westpac has agreed to pay a record 920-million- dollar fine for systematically allowing money laundering to occur occur through the bank. The country's oldest lender has also admitted it violated anti-money laundering and counter- terrorism laws on more than 23-million occasions. The scandal has already led to the ouster of the bank's chief executive and chairman.

Germany approves 2021 budget with massive borrowing

The German cabinet has approved a budget for 2021 that further suspends a law that prohibits taking on new debt. Europe's biggest economy is planning to borrow another 112-billion- dollars to finance massive stimulus measures during the pandemic. Meanwhile business activity in the eurozone fell far worse than expected in September, amid a rise in coronavirus infections.

Unions at Suez file application to block Veolia's $3.5B bid

Unions at French water and waste treatment firm, Suez, have filed an application to block rival, Veolia's, 3-and-a- half billion dollar takeover bid. The legal action comes amid fears the deal will lead to widespread job losses. Last month, Veolia offered to buy a nearly 30-percent stake in Suez to help fend-off rising competition in the sector from Chinese firms.

Nike returns to profit as COVID-19 restrictions loosen

Nike returned to profit in its first quarter as restrictions to curb the spread of COVID-19 were eased. Net profit rose to just over one-and- a-half billion dollars in the June to August period, versus a loss of 790-million- dollars in the previous quarter. Shares in the world's largest sportswear maker jumped as much as 13-percent after the results.

China jails property tycoon Ren Zhiqiang for 18 years

A Chinese court has sentenced former real estate tycoon Ren Zhiqiang to 18 years in prison on charges of corruption. Ren, who has been a vocal critic of President Xi Jinping, was accused of taking bribes and embezzling public funds. The court said he had confessed to all charges and would not appeal against the decision.

Deutsche Bank to close around 100 branches in Germany

Deutsche Bank will shutter one in five branches in Germany as part of cost-cutting efforts to return to profitability. The lender said it would close around 100 branches across the country as the pandemic drives more customers online. The decision follows a similar move taken by domestic rival, Commerzbank, which recently opted to shut 200 of its 1-thousand branches.

GE plans to stop building coal-fired power plants

General Electric is planning to stop making coal-fired power plants as it focuses on gas turbines and renewable energy equipment. The US industrial giant said the exit from the coal business could include asset sales, site closings and job reductions. That's as GE works with customers to complete its existing obligations. Shares in the company fell around 8-percent after the announcement.

Nikola founder Trevor Milton steps down as chairperson

The founder of US electric truck start-up, Nikola, has stepped down as executive chairperson. Trevor Milton's resignation comes after short-selling firm, Hindenburg Research, accused the automaker of misleading investors and overstating the value of a business deal. The US Securities and Exchange Commission and Justice Department are reportedly investigating the allegations.

Microsoft to buy gaming firm ZeniMax Media for $7.5B

Microsoft has agreed to buy ZeniMax Media for 7-and-a-half billion dollars, marking its biggest video game acquisition to date. The deal will bring some of the industry's highest profile titles including Fallout and Doom under the Microsoft banner. The move comes amid rising demand for video games as lockdowns force people to stay home.

Swedish government promises $12B to boost economy in 2021

The Swedish government has promised to pump around 12-billion- dollars into the economy in its 2021 budget. That's to revive growth following the COVID-19 pandemic. The measures include tax cuts for individuals and companies, as well as financial aid for the welfare sector. Sweden's economy is expected to shrink around 4-point-6 percent this year.

UK retail sales rise for fourth straight month in August

UK retail sales rose in August for the fourth consecutive month, following the reopening of non-essential businesses. The volume of overall sales rose by 0-point-8 percent from the previous month, boosted by spending on household goods. Sales were also 4-percent higher than in February, which was the last month before the pandemic hit the country.

CaixaBank, Bankia to create Spain's biggest lender

Spain's CaixaBank and state-owned Bankia have agreed on a merger to create the country's biggest national bank by assets. Under the all-share deal, CaixaBank will acquire the state-controlled lender for 5-point-1 billion dollars. The new entity, which will operate under CaixaBank's name, is aiming to make more than 990-million- dollars in annual savings by 2023.

Ericsson agrees to buy Cradlepoint in $1.1B deal

Ericsson has agreed to buy the US wireless networking company, Cradlepoint, for 1-point-1 billion dollars. The deal comes as part of the Swedish telecoms gear maker's strategy of expanding its 5G-related products. Ericsson is battling rivals Nokia and Huawei to take the lead in the roll-out of fifth-generation mobile networks.

US weekly jobless claims fall slightly to 860,000

Another 860-thousand Americans filed for unemployment benefits last week, marking a slight decrease from the previous reading. The latest figures also show the number of people staying on jobless benefits has dipped to 12-point-6 million. It comes as US President Donald Trump urges Senate Republicans to increase the size of their 500-billion- dollar stimulus proposal to win-over the Democrats.

New Zealand's economy falls into recession in Q2

New Zealand's economy has fallen into its first recession in a decade following strict lockdown measures. GDP shrank by a record 12-point-2 percent in the second quarter.. with the retail, accommodation, restaurant and transport industries taking significant hits. New Zealand's response to the outbreak has been widely praised, with the country of nearly 5-million people recording just 25 deaths.

Messi wins court case over trademark of his logo

Football star Lionel Messi has won a decade-long legal battle over the trademark rights to his logo. The European Union Court of Justice upheld an earlier verdict in his favour, barring a Spanish cycling clothing brand from using the emblem that bears his name. According to Forbes, Messi is the best paid footballer in the world, with earnings of 126-million dollars this year.