Shake Shack Shares Sizzle On Market Debut

By Sky News US Team

Shake Shack, a former New York City food cart which is now a gourmet burger chain challenger to McDonald's, rocketed upon its stock market debut on Friday.

Shares spiked nearly 120% to close at $45.90 on Friday, valuing the chain at $1.6bn (£1bn).

Shake Shack has hit on a winning formula with millennials by serving up hormone and antibiotic-free beef, crinkle-cut fries, shakes and beer.

Shake Shack started out in 2001 as a hot dog cart in a Manhattan park

Fifty-six-year-old founder Danny Meyer's 21% stake was worth about $390m based on the trendy company's opening day high.

It served burgers free of charge on Friday to the public out of food trucks on the street outside the New York Stock Exchange, where it was trading under the ticker symbol "SHAK".

The company has 63 locations in nine countries, but most of them are along the US East Coast. Others are in Las Vegas, Chicago, London and Istanbul.

Shake Shack aims to have 450 locations

It plans to use some of the cash raised from its initial public offering to open restaurants in new markets and to renovate existing stores.

The company said it expects eventually to have 450 locations.

Shake Shack started out in 2001 as a hot dog cart in Manhattan's Madison Square Park, before establishing itself as a kiosk three years later.

President Barack Obama in a Shake Shack in Washington DC

Its flotation comes two days after McDonald's dumped its chief executive amid its worst US sales slump in more than a decade.              

Shake Shack is still a fraction the size of McDonald's, which has more than 36,000 locations around the world, including more than 14,000 in the US.

But it is one of the so-called "fast-casual" upstarts, including Five Guys and burrito-maker Chipotle, which is taking a bite out of the fast-food behemoth's market share.

Americans ordered nine billion burgers at US restaurants last year, up 3% on the year before, according to market research group NPD.

16.01 | 0 komentar | Read More

US Economic Growth Slows To 2.6% Annual Rate

US economic growth slowed in the final quarter of 2014, but its performance was enviable when compared to new woes for the eurozone and Russia.

It was confirmed on Friday that the fastest pace of US consumer spending since 2006 was offset by lower business spending and a wider trade deficit in the three months to December.

The annualised measure for the period came in at 2.6% - meaning gross domestic product (GDP) rose 2.4% for 2014 as a whole - only behind that of Britain in the major industrialised economies.

Consumer spending, which accounts for more than two-thirds of US economic activity, advanced at a 4.3% pace in the fourth quarter - they key holiday season for retail.

Improved jobs and wage figures, coupled with a 43% fall in petrol prices since June, have meant that Americans have more to spend.

The strong pace of consumer spending was overshadowed by a drop in capital expenditure.

Business spending on equipment fell at a 1.9% rate - the largest contraction since the second quarter of 2009 - possibly reflecting cutbacks in the oil industry given the plunging prices.

Economists did not see a connection to world economic weaknesses denting confidence.

The growth figures were released as other economic developments highlighted pressures facing much of the rest of the world.

It emerged that negative inflation deepened in the struggling eurozone last month.

Price growth was measured at an annual rate of -0.6% amid the crash in oil values, which is actually expected to support economic activity ahead of the European Central Bank's €1.1tn quantitative easing programme starting in March.

The central bank action is aimed at halting a slide towards deflation - an entrenched period of falling prices, which tends to put consumers and businesses off making purchases in case they can secure goods and services cheaper, later.

Russia's reliance on its oil revenues - coupled with the impact of Western sanctions over Ukraine - is set to tip the country's economy into recession.

Its central bank confirmed on Friday that such was its concern about its economic outlook, it would cut its core interest rate from 17% to 15%.

It was moved to the higher rate just late last year to try and shore up the rouble, which has dived in value against the dollar, and prevent inflation soaring out of control.

16.01 | 0 komentar | Read More

New Greek Govt Begins Battle Over Bailout

Greece's newly elected anti-austerity government has said it will not co-operate with its international "troika" of creditors - the European Union, the European Central Bank and the International Monetary Fund.

Greece's finance minister Yanis Varoufakis said that despite warnings his country would shortly run out of money, his government preferred to do without fresh funds and instead renegotiate its entire €240bn (£180bn) bailout package.

Athens has been promised another €7.2bn (£5.4bn) in funds from the troika if it completes reforms required by its lenders by 28 February, when the bailout programme runs out.

"This government was elected on the basis of analytically questioning the very logic of the programme now being applied," Mr Varoufakis said, referring to the reforms and budget cuts demanded by the troika.

"We don't want the €7bn ... We want to sit down and rethink the whole programme."

Video: New Greek PM Takes Office

But the stance has already drawn criticism from top EU officials, and Germany's Angela Merkel.

"There has already been voluntary debt forgiveness by private creditors, banks have already slashed billions from Greece's debt," Mrs Merkel said.

"I do not envisage fresh debt cancellation."

Her comments follow remarks made at a strained news conference between Mr Varoufakis and Eurogroup chief Jeroen Dijsselbloem.

Video: Greece On EU Collision Course

Mr Varoufakis said Athens was willing to negotiate with its lenders but not with the troika, which he described as a "committee built on rotten foundations".

Mr Dijsselbloem said Greece and the Eurogroup had a "mutual interest in the further recovery of the Greek economy inside the eurozone" and warned against Athens acting on its own.

"Taking unilateral steps and ignoring previous arrangements is not the way forward," Mr Dijsselbloem said.

"The problems of the Greek economy have not disappeared or changed overnight with the elections."

Video: Greek People Ready To 'Turn A Page'

Further concern comes from the potential of the anti-austerity political movement spreading to other nations, with a large "march for change" expected today in the Spanish capital Madrid to support new far left party Podemos.

The troika was formed in 2010 to rescue debt-riddled Greece with the bailout on the condition Athens imposed huge spending cuts and fiscal reforms.

Prime Minister Alexis Tsipras was elected last Sunday on a platform of ending austerity and erasing most of the country's national debt.

He will meet Italian Prime Minister Matteo Renzi on Tuesday and French President Francois Hollande on Wednesday, but has no plans to visit Germany - Europe's biggest economy and its effective paymaster.

16.01 | 0 komentar | Read More

Guinness Battles Rivals For Premier League Deal

By Mark Kleinman, City Editor

The owner of Guinness is among a pack of blue-chip companies battling to secure the title sponsorship of the English Premier League in a deal expected to be worth more than £150m.

Sky News has learnt that Diageo, the FTSE-100 alcoholic drinks producer, is working on a bid for the rights which is likely to be tabled in the coming weeks.

Barclays, the incumbent sponsor, has signalled to the administrators of English football's top division that it may also bid despite widespread expectations that it would withdraw when its existing deal expires at the end of next season.

Illustrating the global appeal of the sponsorship, Samsung, the Korean consumer electronics giant which sponsors the current Premier League leaders Chelsea, is understood to have expressed an interest in bidding for the title sponsorship.

Ford and Mastercard have also been touted as potential candidates, although it was unclear on Thursday whether they were likely to make formal offers.

Insiders confirmed the Premier League had gone to the open market with the property, which is one of the most valuable single-sport sponsorship deals in the world.

Diageo does not have a top-level football sponsorship deal in the UK, and senior executives believe the Premier League could offer a valuable platform to promote the brand across Africa, Europe and Asia, where it is enjoying substantial sales growth.

However, sponsorship industry sources pointed out that Diageo's ambitions of landing the deal could be complicated by the fact many Premier League clubs have individual supply and sponsorship agreements with rival beer brands.

They also highlighted the impact of possible curbs on sports sponsorship by alcohol brands after the General Election in May.

Labour has previously implied that it could seek to restrict or ban such tie-ups, although the party has made no announcement that such a measure will become official policy.

In 2012, Barclays agreed a three-year deal with the Premier League valued at £120m, which includes global title sponsorship rights, UK and international TV programme accreditation, extensive advertising rights, matchday tickets and hospitality, as well as joint community activity.

Barclays had been expected to walk away from its association with the Premier League after more than a decade, with some executives reportedly describing it as possessing "zero value".

But sources close to the bank confirmed that it had made no such decision to withdraw and said it was continuing to evaluate a potential renewal.

Under the terms of the auction being run by the Premier League, the incumbent sponsor does not have the right to match a higher bid from a rival, according to a source.

The Premier League's growing global audience has fuelled expectations that the next three-year deal could fetch upwards of £60m annually, with a deal expected to be concluded before the summer.

In addition to the headline cost, sponsors must commit a minimum sum to "activating" the association.

The fight for the title sponsorship comes as a more lucrative battle to secure live television rights looms.

The Premier League is expected to announce in the next fortnight the outcome of its next domestic TV rights auction, which last time commanded an overall price of more than £3bn.

Sky plc, the owner of Sky News, owns the majority of the rights under the existing deal, with BT holding the remaining packages.

Virgin Media, which is owned by the US media company Liberty Global, has called on Ofcom, the media regulator, to delay the TV rights while a competition investigation is ongoing.

Barclays, Diageo and the Premier League all declined to comment.

16.01 | 0 komentar | Read More

Amazon Shares Rise As Investment Pays Off

Shares in Amazon rose by more than 11% in extended trading after the company's quarterly results beat expectations.

Investors were cheered by evidence that the company's huge investment in areas outside its core online retail empire was starting to pay off.

Amazon posted profits of $214m (£142m) in the three months until 31 December, exceeding Wall Street forecasts, but down on the same period in 2013.

The online retailer posted revenue of $26.33bn (£19.5bn) over the three-month period, missing expectations.

But Amazon Prime membership rose 53% during 2014, despite price rises put in place by the Seattle-based company.

Amazon has long focussed its spending on expanding into new areas such as cloud computing and video streaming, a strategy which has affected profitability and angered many shareholders.

Google posted fourth-quarter earnings figures of $4.8bn, or $6.91 ($4.59) per share, a 41% increase on the same period in 2013.

Analysts had forecast earnings of $7.12 (£4.72) per share, according to FactSet.

The company's revenue for the three-month period rose 15% to $18.1bn.

16.01 | 0 komentar | Read More

Qatar Airways Takes 10% Stake In BA Owner

Qatar Airways says it has taken a 9.99% stake in International Consolidated Airlines Group (IAG) to "enhance" their operational ties.

Qatar, which partners the IAG airline brands British Airways and Iberia in the oneworld alliance, said it would look to strengthen its commercial relationship with the European group.

Akbar al Baker, the chief executive of Qatar Airways, said: "IAG represents an excellent opportunity to further develop our Westwards strategy.

"Having joined the oneworld alliance it makes sense for us to work more closely together in the near-term and we look forward to forging a long-term relationship.

Qatar also confirmed it may consider increasing its stake over time, although it was not currently intending to do so.

The announcement was made as IAG chases a takeover of Ireland's Aer Lingus.

IAG chief executive Willie Walsh welcomed Qatar's investment.

He said: "We're delighted to have Qatar Airways, one of the world's premier airlines, as a long-term supportive shareholder.

"We will talk to them about what opportunities exist to work more closely together and further IAG's ambitions as the leading global airline group."

16.01 | 0 komentar | Read More

Tesco Drink Recalled Over 'Disgusting Smell'

Tesco has recalled one of its own-brand squash drinks after customers complained of a "disgusting smell" and some children were reportedly left vomiting.

Some parents have raised the possibility that it could have caused their children's upset stomachs.

The supermarket said it had withdrawn the Tesco No Added Sugar Double Concentrate Apple and Blackcurrant 750ml and 1.5-litre products.

A flavour additive was added in error to the squash, but Tesco said it posed no food safety risk.

A post on the PlayPennies website which had alerted users to the recall led to a flurry of replies from those who said they had opened the squash and noticed an unusual odour.

Others reported their children had been physically sick after drinking it.

Tesco said a flavour addictive was added in error but posed no safety risk

One poster wrote: "I bought 2 bottles of this squash over a week to a fortnight ago.

"We opened one and it smelt absolutely disgusting ... the only way to describe the smell was that it had been mixed with used toilet water..."

Clairedavies85 said: "Had this other day. The smell was horrendous but drank it anyway as I thought they just changed it.

"Since then both my daughter and partner have had bad bellies."

MrsD32 posted: "We finished a bottle of this yesterday and opened a new one last night.

"My eldest 2 children are off school today, one with diarrhoea and the other was sick all night. I hope this is a coincidence Tesco but it's not looking very likely!"

Swilly26 wrote: "I gave this to my son on Sunday then Sunday night he was sick. He's had some more today and been sick again..."

A message on the Tesco website said: "Sorry, this product is currently not available."

A Tesco spokeswoman said: "We have investigated with our supplier complaints about Tesco No Added Sugar Double Concentrate Apple and Blackcurrant 750ml and 1.5l.

"A flavour additive, which is not part of the ingredients for this product, has been added in error. The additive is called Dimethyl Disulphide and is a common ingredient in food products.

"It is an approved additive and poses no food safety risk. However, it does have a strong odour, similar to garlic, which customers are likely to find unpleasant.

"Only products bought since the New Year may be affected, they will have a best-before date of October 2015.

"Any customers can return this product, open or unopened, to any Tesco store."

It is the latest in a string of problems for the company, including falling sales and a £263m profits overstatement.

Tesco announced last month it would close 43 stores as it moved to save costs, and has now revealed the locations, placing 2,000 jobs at risk.

16.01 | 0 komentar | Read More

Briton Named New Chief Executive Of McDonald's

A Briton has been named as the new chief executive of McDonald's, as the fast food chain tackles disappointing sales worldwide.

Steve Easterbrook will become the new president and CEO of the company in March. His predecessor, Don Thompson, had only held the position for two-and-a-half years.

Net income at McDonald's plummeted by 21% in the fourth quarter to $1.1bn (£726m), as customers shopped around for healthier, cheaper and more customisable alternatives.

Steve Easterbrook was formerly in charge of McDonald's branches in the UK

Sky's Business Presenter, Ian King, said: "This is really quite noteworthy - as one thinks of McDonald's as being an all-American company.

"Mr Easterbook has been with McDonald's since 1993. He came to the attention of the US board after what he did running the UK business, which had been going through a really sticky time a decade ago."

The company's board of directors believe Mr Easterbrook can "effectively lead the company to improved financial and operational performance".

Last Friday, McDonald's announced drastic changes to its menu - with plans to offer custom-made Big Macs and allow diners to place orders on their mobile phones.

McDonald's is still smarting from a food safety scare in China, where it faced allegations of using contaminated beef and chicken in its products.

The chain is expecting weak sales for the first half of 2015, and also plans to open fewer restaurants in regions with the poorest growth.

16.01 | 0 komentar | Read More

Shell Cuts Spending By $15bn On Weak Oil Costs

Royal Dutch Shell has confirmed a $15bn (£9.9bn) reduction in its spending plans over the next three years as oil prices hit six-year lows.

The company made the announcement as it unveiled its latest financial results, with Shell's underlying annual profit measure rising 14% to $22.6bn in 2014.

Its profits for the final three months of 2014 increased by 12% to $3.3bn (£2.2bn) but earnings per share, anxiously awaited by investors, missed estimates and Shell confirmed its dividend would be flat.

Its shares fell 4% in early trading on the FTSE 100.

The Anglo-Dutch firm said its annual performance was boosted by a restructuring of its downstream operation, as well as increased output of higher-margin products though upstream exploration and production division profits fell 30% in the final quarter.

Video: Oil Production & Consumption

Chief executive Ben van Beurden said: "We are taking a prudent approach here and we must be careful not to over-react to the recent fall in oil prices.

"Shell is taking structured decisions to balance growth and returns.

"By successfully delivering against our three key priorities of better financial performance, enhanced capital efficiency and continued strong project delivery, we are improving Shell's competitive position in the oil & gas industry."

Shell is the first oil major to report annual results since the price crash, which began last summer.

The price of Brent crude dropped about 50% during 2014 with that decline continuing in January to $48-per-barrel - 60% down on the costs seen last June.

Video: Oil: Winners and Losers

The plunge in world oil prices has been attributed to a glut in supply caused by a spurt in US shale oil production.

Other major oil-producing nations, especially Saudi Arabia, have been reluctant to lose market share by cutting back production in response to prop up prices.

Global economic weakness, which has damaged demand, is another factor behind the price fall.

16.01 | 0 komentar | Read More

Russia's Credit Rating Cut To Junk Status

Russia's sovereign credit rating has been downgraded to "junk" status by Standard & Poor's, which cited growing economic weaknesses.

The ratings agency's cut brings the country's rating below investment-grade for the first time in a decade.

The decision risks raising borrowing costs in Russia as many investment and pension funds have rules that prevent them buying any product not classed as investment-grade.

It also makes it more difficult for banks and other companies to refinance themselves.

S&P said it had cut the rating from BBB- to BB+ because of the growing impact of low oil prices and Western sanctions over the Ukraine crisis.

Video: Putin Promises Economic Recovery

The move, while widely expected, triggered a further weakening of the rouble - falling more than 7% at one stage to 70 to the dollar.

Banking stocks were also badly hit, while the cost of insuring Russian sovereign debt for five years rose, in a sign of investor concern.

Finance minister Anton Siluanov played down the situation.

"The decision taken shows the excessive pessimism of the agency. It fails to consider a series of factors which characterise the strong side of the Russian economy: the accumulation of large international reserves, including in the sovereign funds," he said.

Video: Can Russia Overcome Rouble Crisis?

Russia's international reserves, managed by the central bank, have collapsed since early last year following heavy spending to prop up the rouble, which has fallen more than 40% against the dollar in the last year.

Russia's economy is expected to slide into recession this year as a result of soaring inflation and the weak oil price.

A 60% fall in oil costs since June last year has depressed export revenues.

Oil is the biggest contributor to the Russian purse and President Vladimir Putin has admitted a failure to diversify the country's economy, pledging to publish soon an economic plan to combat the crisis.

1/10

1. Gallery: Fierce Fighting Continues On Front Line In Ukraine

   A Ukrainian serviceman fires a weapon during fighting with pro-Russian separatists in Pesky village near Donetsk

Ukrainian President Petro Poroshenko accused Russia on Wednesday of sending 9,000 troops to back separatist rebels in the east of his country, something Russia strongly denied

]]>

16.01 | 0 komentar | Read More