Business in 60 Seconds

Australia exits first recession in almost three decades

Australia has exited its first recession in almost 30 years thanks to a surge in domestic demand. GDP grew by 3-point-3 percent in the third quarter. That's after a 7 percent contraction in the previous three-month period due to coronavirus lockdowns. The growth represents Australia's largest quarterly GDP increase since 1976.

Salesforce to buy workplace messaging app Slack for $27.7B

Cloud-based software company Salesforce has agreed to buy the workplace messaging app, Slack, for 27-point-7 billion dollars. The deal is the largest in the fast-growing cloud software industry, topping Microsoft's 26 billion dollar purchase of LinkedIn four years ago. The pandemic and the accompanying lockdowns have boosted demand in the industry.

US home-rental service Airbnb seeks to raise $2.6B in IPO

Airbnb is hoping to raise as much as 2-point-6 billion dollars in its long-awaited initial public offering later this year. In a filing, the US home rental service says it's planning to sell around 52 million shares at between 44 and 50 dollars each. That would value Airbnb at up to 35 billion dollars.

UK department store chain Debenhams set to close all stores

UK department store chain Debenhams says it will start liquidating its business after J-D Sports pulled out of talks over a rescue deal. The process will see the closure of all 124 outlets in the UK, with the possible loss of 12-thousand jobs. The collapse of Debenhams comes a day after retail giant, Arcadia entered administration as the pandemic hit sales.

Credit Suisse names Antonio Horta-Osorio as new chairperson

Swiss lender Credit Suisse has named outgoing Lloyds CEO Antonio Horta-Osorio as its new chairperson. He'll succeed Urs Rohner when he steps down in 2021, after serving the maximum term of 12 years. Horta-Osorio's appointment comes as Credit Suisse is facing a 680 million dollar fine in the US due to residential mortgage-backed securities issued in 2007.

Video-conferencing app Zoom posts 367% jump in Q3 revenue

Video conferencing company, Zoom has reported third-quarter sales that exceeded analysts' expectations. That's as the new restrictions to curb the spread of the coronavirus pandemic continue to keep employees at home. Zoom's revenue has jumped nearly four-fold in the three months to the end of October from a year ago to 777 million dollars.

UK bans new Huawei 5G kit installation from September

The UK government has announced it's banning the installation of new Huawei 5G equipment from September 2021. It's part of a plan to phase out the Chinese firm's technology over national security concerns. The announcement comes ahead of a debate over a new Telecommunications Security Bill, where firms could be fined up to 133-thousand dollars, if they violate the ban.

Food delivery firm DoorDash looks to raise $2.8B in IPO

Doordash is seeking to raise as much as 2-point-8 billion dollars in its initial public offering later this year. In a filing, the biggest US food delivery company said it's planning to sell 33 million shares priced between 75 dollars and 85 dollars apiece. At the top end of this range, the SoftBank-backed startup could be valued at about 32 billion dollars.

Financial data firm S&P Global to buy IHS Markit for $44B

S&P Global has agreed to acquire UK-based financial data provider IHS Markit for 44 billion dollars. The merger would combine two major financial data services and create a rival to information powerhouses Bloomberg and Refinitiv. Under the terms of the deal, S&P Global shareholders will own almost 68 percent of the combined entity.

India slips into recession for first time in history

India has entered a technical recession for the first time in its history, as the coronavirus pandemic hit consumption and business activity. GDP shrank by 7-and- a-half percent in the July to September period, following the record 24-percent contraction in the prior quarter. Analysts expect South Asia's largest economy to exit from recession early next year.

China to impose anti-dumping measures on Australian

China will impose tariffs on wine imported from Australia in a further souring of relations between the two countries. The Chinese Commerce Ministry says the anti-dumping duties will take effect on the 28th of November and range from 107-percent to a 212-percent penalty. China is the biggest buyer of Australian wine, importing nearly 1-billion dollars' worth of the beverage last year.

Disney increases number of planned job cuts to 32,000

Disney says it's planning to slash another 4-thousand jobs by the end of March, mainly at its theme parks in the US. This will bring the total number of job cuts since the pandemic begain to 32-thousand. Earlier this month, the entertainment giant reported its first annual loss in more than four decades, as cinemas and its theme parks remained empty during the crisis.

Turkey and Qatar ink deal on 10% sale of Borsa Istanbul

Turkey and Qatar have agreed to finalise the sale of a 10-percent stake in Turkey's stock exchange, Borsa Istanbul. The signing ceremony was held during the sixth meeting of the Turkey-Qatar Supreme Strategic Committee. The Turkey Wealth Fund is the majority shareholder of Borsa Istanbul and will continue to own around 80-percent of the exchange.

Salesforce in talks to acquire workplace messaging app Slack

Cloud-based software company, Salesforce, is reportedly in talks to buy the workplace messaging app, Slack, as it looks to expand its business. Slack has a market value of more than 17-billion- dollars and would be Salesforce's largest ever acquisition. Shares in Slack jumped more than 30-percent on the reports, while Salesforce shares fell around 5-percent.

ViacomCBS sells publishing unit to Bertelsmann for $2.18B

ViacomCBS has agreed to sell its publishing house, Simon & Schuster, to media group Bertelsmann for almost 2-point-2 billion dollars. The German owner of Penguin Random House, outbid Rupert Murdoch's News Corp for the publisher. ViacomCBS says it will use the proceeds from the transaction to invest in strategic growth priorities like streaming.

US jobless claims rise for second week as virus cases

The number of Americans filing for unemployment benefits has risen for the second consecutive week, as states re-introduce lockdown measures to deal with a surge in coronavirus cases. Another 778-thousand people lodged jobless claims last week, compared with 748-thousand in the week prior. But the latest figures show the number of people continuing to claim benefits has dipped to 6-point-1 million.

Hong Kong's Lam vows closer Beijing ties to revive economy

Hong Kong chief executive Carrie Lam has pledged to strengthen ties with mainland China in a bid to revive the economy. In her annual policy address, Lam said the government's priority was to restore order following last year's political unrest. The protests, together with the pandemic, have pushed the Asian financial hub into its worst recession on record.

YouTube suspends OANN over COVID-19 misinformation

YouTube has temporarily suspended the right-wing cable channel, One America News Network, for repeatedly violating the site's policy on sharing COVID-19 misinformation. O-A-N-N will be barred from posting new videos and live streams for one week, and the channel will also be demonetised for the length of the suspension.

GM to recall 7M vehicles globally over air bag issue

General Motors will recall around 7-million trucks and sport utility vehicles globally to replace potentially dangerous Takata air bag inflators. The recall is expected to cost the US carmaker 1-point-2 billion dollars. That's about one-third of its net income so far this year. Takata air bags have been linked to more than two dozen deaths worldwide

Turkey mandates three banks to issue dollar bonds

Turkey's Treasury and Finance Ministry has authorised Goldman Sachs, HSBC and Morgan Stanley to issue a dollar-denominated bond due in 2031. The decision was taken as part of the Treasury's 2020 external borrowing program. Meanwhile, the country's banking watchdog has moved to cool a lending boom by abolishing a rule that compels lenders to extend credit and buy government debt.

Apple security chief Thomas Moyer indicted for bribery

Apple's head of global security, Thomas Moyer, has been charged with bribery. Moyer has been accused of offering to donate 200 iPads worth around 70-thousand dollars to a county sheriff in California to secure four concealed gun carry permits for the tech group's employees. Apple says it has conducted its own investigation and found no wrongdoing.

US reportedly seeks ban on exports to 89 Chinese firms

The Trump administration is reportedly seeking a ban on exports to 89 Chinese companies. According to a draft copy seen by Reuters, the firms will be prevented from buying a range of US goods and technology due to their ties with China's military. The move could escalate tensions with Beijing as US president-elect Joe Biden prepares to take over the White House.

Abu Dhabi discovers 22 billion barrels of oil reserves

Abu Dhabi National Oil Company has announced the discovery of 22-billion- barrels of unconventional reserves. The latest discoveries come as the firm plans to increase its production capacity to 5-million barrels a day by 2030. Meanwhile, Abu Dhabi has pledged 122-billion- dollars in capital expenditure for its state oil company over the next five years.

Cineworld secures $450M in emergency funding

British movie chain operator, Cineworld, has secured 450-million- dollars in emergency funding as it looks to survive the coronavirus crisis. The group, which shut all of its 660 movie theatres in the US and the UK in October, says it now has enough liquidity to make it through to next year. Shares in Cineworld jumped around 20-percent on the announcement.

UK retail sales rise in October ahead of second lockdown

UK retail sales rose in October for the sixth consecutive month, ahead of November's closure of most non-essential businesses. The volume of overall sales rose by 1-point-2 percent compared with the previous month. That's as consumers brought forward their Christmas shopping. Analysts expect sales to fall again this month due to the second round of lockdown restrictions.

Japan's core consumer prices fall 0.7% in October

Japan's core consumer prices fell in October at their fastest annual pace in nearly a decade. That's after the inflation lost the upward support of a consumption tax increase a year ago. Core consumer prices, which exclude volatile fresh food costs, fell 0-point-7 percent year-on-year last month, in line with expectations.

Gaming company Roblox files for IPO as demand surges

Popular gaming platform, Roblox, has filed to go public after demand for video games surged under COVID-19 lockdowns. The filing showed the company's revenue jumped 68 percent from a year ago to 590 million dollars in the first nine month, while virtual currency sales totaled 1-point-2 billion dollars. Roblox is planning to list on the New York Stock Exchange later this year.

Nasdaq to buy fraud detection firm Verafin for $2.75B

Exchange operator Nasdaq has agreed to buy anti-financial crime software firm Verafin for 2-point-75 billion dollars. The acquisition will significantly expand Nasdaq's reach in the regulatory technology market. Verafin provides institutions a cloud-based platform to help detect, investigate, and report money laundering and financial fraud.

Thyssenkrupp to cut another 7,400 jobs as losses deepen

German conglomerate, Thyssenkrupp, says it's planning to cut 74-hundred more jobs over the next three years as it struggles to survive the COVID-19 crisis. This will bring the total number of job cuts to 11-thousand. The steel and materials group reported a net loss of six-and-a-half billion dollars for the year to September.

Apple to pay $113M in US over iPhone battery slowdowns

Apple has agreed to pay 113 million dollars to settle consumer fraud lawsuits brought by more than three dozen states. The US tech giant was accused of secretly slowing down old iPhones to get users to purchase new devices. The deal is separate from a proposed settlement Apple reached in March to pay affected iPhone owners up to 500 million dollars to stem a class action.