City news: InterContinental Hotels, online betting, Bombardier, London Stock Exchange
INVESTORS checked out of the InterContinental Hotels Group after weaker oil prices and security fears slowed revenue growth, yesterday.
The Holiday Inn and Crowne Plaza operator reported slowed growth in revenue
The Holiday Inn and Crowne Plaza operator said growth in revenue per available room slowed to 1.3 per cent in the third quarter from 2.5 per cent over the previous three months.
With 14 per cent of its US rooms located in oil-producing states, the company has felt the impact of spending cuts across the energy industry.
Middle East revenue also dipped, while trading in France, Turkey and Belgium has been “challenging” following terror attacks. Shares fell 65p to 3160p.
Online gambling 'cons' probed
Online betting firms may be breaking the law with misleading promotions and unfair terms to block payouts.
The Competition and Markets Authority is investigating whether Britain’s 5.5 million online gamblers are treated fairly after the Gambling Commission raised concerns.
It fears they have to play for longer than they wished before they can withdraw money and are not able to withdraw winnings when they want to stop playing.
Online betting firms may be breaking the law with misleading promotions and unfair terms
CMA’s Nisha Arora said: “Gambling inevitably involves risk, but it shouldn’t be a con.
Sites are making it too difficult for users to understand the terms on which they’re playing.”
Cuts by plane and train maker
Bombardier is cutting 7,500 jobs – 10 per cent of its global workforce – in its efficiency drive.
The axe will fall in 2018 when the Canadian trains and planes maker targets administrative and non-production roles.
Bombardier is cutting 7,500 jobs – 10 per cent of its global workforce
Earlier this year it announced more than 1,000 jobs would go from its Northern Ireland aircraft manufacturing, with 270 more from UK train-making factories including Derby.
The move is set to generate recurring savings of $300million (£246million) by the end of 2018, and cost $225-275milion in restructuring charges.
Chief executive Alain Bellemare said: “These actions will ensue we have the right cost structure, workforce and organisation to compete and win.”
More time for LSE review
European regulators have extended their review of the London Stock Exchange’s proposed £21billion merger with German rival Deutsche Borse.
LSE has said it could hive off the French clearing subsidiary of its LCH
The European Commission delayed its decision by 15 working days to March 6 after both companies asked for more time.
Antitrust regulators are concerned the merger could hinder competition in key financial market activities such as clearing, derivatives and index licensing.
LSE has said it could hive off the French clearing subsidiary of its LCH. Clearnet arm to allay concerns over the deal.