Good morning! Here’s what you need to know in markets on Friday.
Goldman Sachs made job cuts in its securities business, according to people familiar with the matter. The cuts announced on Thursday bring the headcount reduction in the fixed-income, currencies and commodities (FICC) business to around 10%, the people said.
Retail billionaire Sir Philip Green has attacked MPs involved in what he calls a “trial by media” against him in relation to the collapse of BHS. The Telegraph reports that the Topshop owner has written to Frank Field MP and Iain Wright MP, chairman of the House of Commons Work and Pensions and Business committees respectively, to tell them that they appear to be “leaping to conclusions” over his conduct during the period he and his family owned the collapsed retailer. He has also called for Frank Field to resign from the committee over some of his comments.
Square shares dropped as much as 15% in after-hours trading on Thursday, after the payments company reported widening losses as spending accelerated. Operating expenses increased nearly 72% year-on-year to $207 million (£143 million) for the quarter, causing Square’s net loss to reach $96.7 million (£66.8 million), nearly double the level at this time last year.
News Corp, the owner of the Wall Street Journal and book publisher HarperCollins, reported its fifth drop in quarterly revenue in a row as print ad sales decline. New York-based News Corp, controlled by Rupert Murdoch, said “currency fluctuations” also contributed to a 7.3% fall in the company’s revenue to $1.89 billion (£1.31 billion) in its third quarter.
Asian shares are down. After being closed for most of the week, Japan’s Nikkei is down 0.31% on Friday. China’s benchmark Shanghai Composite is down 1.73% at the time of writing (6.25 a.m. GMT/ 1.25 a.m. ET) and the Hong Kong Hang Seng is down 1.37%.
Amazon could take as much as a 30% stake in a large cargo carrier, its second such deal this year as the e-commerce giant seeks to control more of the delivery process, from factories where goods are made to the doorsteps of customers. Bloomberg reports that as part of the agreement, Atlas Air Worldwide Holdings will acquire and operate 20 Boeing 767-300 freighters for Amazon, according to a statement from the airline Thursday.
Dragons’ Den star Touker Suleyman is one of the potential bidders circling collapsed fashion retailer Austin Reed. The Guardian reports that Suleyman, who offers to support entrepreneurs with his own money on the BBC TV show, confirmed his interest on Thursday. “Yes, parts of the [Austin Reed] business are on my radar,” he said.
Accommodation-listing service Airbnb is looking at moving into other businesses, its co-founder has said. Nathan Blecharczyk told the BBC that the willingness of people to stay in the home of a stranger showed the demand for personal connections while travelling. He said the company was now looking at pairing hosts and guests for tours, playing sport, and other activities
Fitch Ratings downgraded Brazil’s sovereign debt further into junk territory on Thursday, citing a deeper-than-expected economic contraction and changing fiscal targets that have undermined credibility. Fitch downgraded Brazil to BB from BB+ with a negative outlook a week before a Senate vote that is expected to lead to the ousting of unpopular leftist President Dilma Rousseff.
Saudi Arabia’s stock exchange, the biggest in the Middle East and Africa, has hired HSBC Saudi Arabia as a financial adviser for its initial public offering. “The appointment of a financial adviser is an important milestone,” the bourse said Thursday in a statement on its website as part of its initiative to boost transparency. The offering is scheduled to happen by 2018 pending regulatory approvals, Bloomberg reports.
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