Facebook to buy back additional $9 billion of shares

IT reporter(wp/reuters):

Facebook Inc (FB.O) will buy back an additional $9 billion of its shares, as it looks to pacify investors following a slump in its stock.

The social media giant’s shares, which have tumbled more than 22 percent this year, rose nearly 1 percent in extended trading.

The new program is in addition to a share buyback plan of up to $15 billion announced by the company last year.

Facebook is being investigated by lawmakers in Britain after consultancy Cambridge Analytica, which worked on Donald Trump’s U.S. presidential campaign, obtained personal data of 87 million Facebook users from a researcher.

Concerns over the social media giant’s practices, the role of political adverts and possible foreign interference in the 2016 Brexit vote and U.S. elections are among the topics being investigated by British and European regulators.

As Brexit crunch nears, campaign for new referendum gathers pace

Political reporter(wp/reuters):
After losing the most contentious referendum in British history, James McGrory went for a drink in The Hope pub near London’s medieval meat market. Amid butchers in bloodied coats, his dream of reversing Brexit seemed hopeless.

Two years later, with the country in crisis over how or whether to leave the European Union, McGrory is feeling more confident that his campaign can help secure another referendum that he hopes would overturn the 2016 result.

The idea of a second referendum has been gathering support from some senior British politicians and seems to have traction with sections of public opinion, but the political situation is so uncertain that it is hard to say whether this will actually translate into another vote, and when or how that might done, or what question might be put.

Full Coverage: The Road to Brexit

“We have gone from being seen as a fringe view, dismissed and laughed at, to now being at the centre of the Brexit debate,” McGrory, the 36-year-old campaign director of the People’s Vote campaign, said in an interview.

“The odds are getting shorter every day that we get another referendum. All the momentum is with our campaign.”

Betting odds show there is a 43 percent probability of an EU referendum before 2020. Gamblers think there is a 55 percent probability that Britain does not leave as planned on March 29.

Opinion polls suggest there has been a slight shift by voters towards remaining in the EU, but the public remains broadly split down the middle.

It remains unclear how exactly a second vote might be called, though some members of parliament have drafted a detailed roadmap, setting out possible legislative routes to another referendum.

Meanwhile, campaigners for another vote are busy lobbying parliament and trying to drum up public support with rallies and on social and mainstream media. They note Prime Minister Theresa May has included their desired outcome as one of three options facing the country: her deal, no deal or reversing Brexit.

U.S. investment bank J.P. Morgan said the chances of Britain calling off Brexit had increased after a string of parliamentary defeats for May cast new doubt over her plan to quit the bloc.

VOTE REVERSED?

Turning Brexit upside down would mark one of the most extraordinary reversals in modern British history and likely alienate the 17.4 million people who voted to leave the EU.

The path to a new referendum is fraught with crisis.

May's Brexit deal has first to be voted down in parliament on Dec. 11. Second, her government has to endure an attempt by the opposition Labour Party to topple it and then call a national election.

With the clock ticking down to March 29 and financial markets pricing in what would be a potentially disorderly exit, McGrory and his campaigners hope Britain’s politicians will accept they have come to a dead end and throw the question back to voters.

David Lammy, a Labour lawmaker, said that after parliament fails to reach a consensus it will reluctantly agree to hold another referendum as the best among a limited number of escape routes to avoid a potentially chaotic exit.

“We will probably end up going round and round in circles and when politics is stuck and cannot reach compromise then the only way to get out of that is to go back to the people,” Lammy told Reuters.

Lammy said that the situation may resemble Charles Dickens’ novel Bleak House, which revolves around a will settlement that has been in court so long that few of the participants can remember the original arguments.

A new referendum can only be called if it is approved by parliament. This could be either put forward by the government or by rebels. 

PIPE DREAM?

The hurdles to another referendum are high.

Both major political parties are committed to leaving the EU in accordance with the 2016 referendum.

Labour Party leader Jeremy Corbyn, who voted against membership of the European Community in a 1975 referendum, has indicated he is not keen on another referendum now.

His party has said they will only support another referendum if the deal is voted down and they fail to force a general election.

Some trade union leaders opposed another referendum because they feel it would be seen as betrayal by millions of Brexit supporters in Labour’s electoral heartlands.

Brexit supporters say the 2016 vote must be respected. “It is wholly dangerous for us to turn to the people now and say, ‘You let us down. You got it wrong’,” said Nigel Evans, a Conservative MP.

Even if parliament did agree in principle to a second referendum, Britain would then have to ask for an extension to its timetable for leaving the EU to allow enough time for a campaign, probably by withdrawing its Article 50 departure notification.

On Tuesday, just hours before a five-day parliamentary debate on May's deal, an adviser to the European Court of Justice said Britain could revoke its formal divorce notice. The court is due to rule on Dec. 10.

Even if there was a change in mood there would be controversy about what the question would be and whether another referendum would deliver a different result.

UNDERDOG?

After the failure of the 2016 campaign, pro-Europeans turned on each other and blamed what they saw as the chicanery of their opponents on the Brexit campaign.

But in the wake of their defeat, a small group of influential politicians, journalists and campaigners started to hatch a plan to keep Britain inside the club it joined in 1973.

They had to face unpalatable truths.

Their 2016 campaign had been riven with rivalry, damaged by its association with then-Prime Minister David Cameron, underperformed on social media and was cast by opponents as the voice of the establishment arguing for the status quo.

In recent months, pro-EU campaigners have been feeling more optimistic. In October, the People’s Vote organised a march of almost 700,000 people through London demanding another vote.

“The tables have turned,” said McGrory. “We are the underdog. We are the scrappy campaign that is doing things a bit differently.”

In the last month, two ministers have resigned calling for another referendum.

Three of the four former British prime ministers still alive - John Major, Tony Blair and Gordon Brown - have also said a second referendum is the way to resolve the crisis.

The mood in the headquarters of the People’s Vote in Millbank Tower close to parliament is bullish.

Young people examine charts of target audiences and organise an advertising blitz to convince MPs to block the government’s deal.

“If anyone thinks Brexit is a done deal they should be ready for another surprise,” McGrory said.

Theresa May told not to risk humiliating Commons defeat as she is pressured to postpone vote

Pic:Under pressure: Theresa May ( AFP/Getty Images )
Poitical reporter(wp/es):

 has been urged by a leading Tory backbencher to delay the crucial vote on her Brexit deal to avoid a humiliating defeat.

Sir Graham Brady said “clarity” on the controversial backstop was more important than the timing of the vote on the Prime Minister’s agreement.

It comes after Mrs May was urged by some Cabinet ministers to postpone the vote, which many of her fellow Conservatives expect she will lose.

Sir Graham, chairman of the backbench 1922 Committee, said he would welcome the vote being deferred if no solution could be found to differences within the party over the Northern Ireland border backstop.

He told BBC Two's Newsnight: "I think the most important thing is to have clarity about how we might remove ourselves from a backstop ... if we were to enter into one in the future.

"It's having the answer to that question of substance that is most important, not the timing, so if that question can be answered in the course of the next few days then all well and good.

"If it can't, then I certainly would welcome the vote being deferred until such time as we can answer that question."

MPs tabled earlier tabled an amendment to the meaningful vote on the deal that would give MPs some control over the controversial backstop, which has been the main sticking point after two years of negotiations

The alteration would mean Parliament will have to approve a decision to trigger the backstop arrangement or extend the transition period beyond December 2020.

It was tabled by Northern Ireland minister Sir Hugo Swire, Richard Graham and Bob Neill, hours after the Prime Minister indicated Parliament would choose between the two options after the UK formally quits the EU.

The move is likely to be seen as a bid to bolster flagging support for Mrs May ahead of a crunch Commons vote on her EU withdrawal deal next Tuesday - a showdown the PM made clear on Thursday morning she would not postpone.

But it remains to be seen whether it goes far enough to win over enough Tory Brexiteers to get the deal through the Commons.

DUP leader Arlene Foster, whose party opposes Mrs May's deal, warned that the amendment would not be enough, tweeting: "Domestic legislative tinkering won't cut it.

"The legally binding international Withdrawal Treaty would remain fundamentally flawed as evidenced by the Attorney General's legal advice."

The backstop, intended to prevent the return of a hard border in Northern Ireland, is highly controversial as Brexiteer MPs claim it traps the UK into obeying rules set by Brussels without a say over them.

The Government says it aims to conclude a comprehensive trade deal with the EU before a backstop arrangement would be needed.

Under the Withdrawal Agreement, the backstop would be introduced if a trade deal had not been agreed by both sides by the time the transition period ends in December 2020.

However, the transition period could be extended for a maximum of two more years.

UK temporary workers enjoy biggest pay rise since 2007 - REC

business correspondent(wp/Reuters):

Temporary staff in Britain had their biggest pay rises in more than a decade last month as the approach of Brexit made workers wary about changing jobs, leaving employers scrambling to fill positions, a survey of recruiters showed on Friday.

Pay for temporary staff employed via recruitment agencies grew by the most since the eve of the financial crisis in July 2007, while starting salaries for permanent staff rose at one of the fastest rates in nearly four years.

Sectors such as hospitality and warehousing struggled to fill their vacancies in the run-up to Christmas, the Recruitment and Employment Confederation (REC) said.

The number of permanent and temporary staff being hired grew at the slowest rate since the summer, though in outright terms demand remained strong.

“It’s very much a candidate’s market at the moment and demand for workers is driving a sharp increase in starting salaries,” said James Stewart, vice chair of accountants KPMG, who sponsor the survey.

As fears of a no-deal Brexit spark concerns about job security, fewer people are willing to risk changing jobs.

“Candidates who are prepared to take a chance and job hop can often bag a pay rise as a result,” Stewart said.

Companies have complained of fewer foreign workers coming to Britain in the run-up to Brexit and official figures have shown the lowest net immigration from the European Union since 2012.

Past REC data showing stronger growth in starting salaries and temporary wages has not always translated into stronger earnings across the British workforce as a whole.

However, the most recent official data for average weekly earnings, excluding bonuses, for full-time employees showed the sharpest annual growth in almost a decade, with wages up 3.2 percent on the year in the three months to the end of September.

The Bank of England has said it expects to raise interest rates gradually as wages rise, generating inflation pressure.

Senior Conservative lawmaker said would welcome delay to Brexit vote - BBC

Political reporter(wp/Reuters):

A senior lawmaker in Prime Minister Theresa May’s Conservative Party said he would welcome a delay to parliament’s planned Dec. 11 Brexit vote if she cannot provide clarity on how Britain would leave the so-called Irish backstop, the BBC reported.

BBC reporter Nicholas Watt said on Twitter that Graham Brady, who chairs the influential 1922 committee of Conservative lawmakers and who would run any leadership contest if May is ousted, made the comments in an interview on Thursday.

Worries about the backstop, intended to ensure no return of border controls between British-ruled Northern Ireland and EU-member Ireland, are a key driver of opposition to the deal.

Former Tesco bosses Chris Bush and John Scouler cleared of £250m fraud after case collapses

Business correspondent(wp/es):

Two former Tesco directors have been cleared of fraud and false accounting after they were accused of manipulating the company's profits. 

The firm's shares plummeted by nearly 12 per cent, wiping £2billion off the share value, when Tesco announced in September 2014 that a statement the previous month had overstated profits by £250million.

Chris Bush, ex-UK managing director, and John Scouler, the then UK food commercial director, were accused of being aware that income was being wrongly included in the company's financial records to meet targets and make Tesco look financially healthier than it was.

But on Thursday at Southwark Crown Court, the jury was told that they had been acquitted at the Court of Appeal.

The acquittal came after trial judge Sir John Royce dismissed the case brought by the Serious Fraud Office (SFO), bringing the trial to a halt after the prosecution presented its case.

The SFO went to the Court of Appeal regarding the dismissal, but its appeal was dismissed on Wednesday.

Mr Scouler, 50, from St Albans, and Mr Bush, 52, of High Wycombe, were each cleared of one count of fraud and another of false accounting.

During the trial, the jury was told the case was a retrial, and that a third man, former UK finance director Carl Rogberg, is charged with identical offences but was not currently well enough to stand trial.

A decision will be made in due course about what action should be taken in relation to Rogberg following the acquittals of Mr Scouler and Mr Bush.

The trial of Mr Scouler and Mr Bush, which began on October 8, had been expected to last three months.

Mr Bush said: “While I am delighted that my innocence has finally been established, it is troubling that Mr Scouler and I were ever charged. 

“Put simply, these charges should never have been brought, and serious questions should be asked about the way in which the SFO has conducted this investigation.”

Richard Sallybanks, partner at BCL Solicitors, representing John Scouler, added: "We are delighted that Mr Scouler leaves court today knowing that the judge, having heard the entirety of the prosecution evidence, reached the firm conclusion that he had no case to answer.

"That decision was obviously correct yet the SFO chose to pursue an appeal which was rejected yesterday when the Court of Appeal refused even to grant leave.

"We have long argued that the SFO's prosecution of Mr Scouler was fundamentally flawed, that he should not have been charged and that the SFO should not have proceeded with this trial."

Sterling's fate hangs on Brexit, UK growth to be weak - Reuters poll

Business correspondent(wp/Reuters):
Sterling’s near-term fate hangs on whether British Prime Minister Theresa May manages to get her Brexit withdrawal deal through Parliament, according to Reuters polls that also found economic growth will be weak.

May faces deep opposition in parliament ahead of a Dec. 11 vote on her withdrawal agreement, raising the risk of a no-deal Brexit shock to the economy in less than four months’ time.

She suffered embarrassing defeats on Tuesday at the start of five days of debate over her deal to leave the European Union that could determine the future of Brexit and the fate of her government.

If the deal is agreed, sterling GBP= will gain 3.5 percent, according to the median in a poll of foreign exchange strategists taken mostly as Parliament debated the deal, but if it fails to pass the pound will fall by 2.75 percent.

“Our colleagues are right to flag the risks that Parliament could initially reject the deal. This inevitably leads to a knee-jerk sell-off in GBP,” noted BofAML analysts.

“We think there is likely to be a material repricing of the UK rates curve once a deal is announced and ratified, which in turn is likely to be bullish for GBP.”

Sterling has ricocheted on each piece of Brexit news, largely ignoring economic data. As predicted in Reuters polls ahead of the June 2016 referendum on EU membership, it has fallen versus the U.S. dollar, down well over 10 percent on Wednesday from pre-vote levels.

There is still only a median 25 percent probability no agreement is reached before Britain is due to leave the EU on March 29, unchanged from a November poll. It has been between 20 and 30 percent since Reuters began asking in July 2017.

Instead, almost 90 percent of economists who answered an additional question expect the most likely outcome to be the two sides agreeing a free-trade deal, as they have since Reuters began polling on this in late-2016.

Still in second place was leaving without an agreement and trading under basic World Trade Organization rules. And once more in third place was Britain being a member of the European Economic Area, paying into the EU budget to maintain access to the EU’s single market.

While the second and third outcomes were a close call, Brexit being cancelled was seen as unlikely and no respondent pegged this as the most likely scenario.

“The outcomes are obviously up in the air at present. But as it currently stands, some form of Free Trade Agreement looks to be the most likely option,” said Peter Dixon at Commerzbank.

Median forecasts in the wider foreign exchange poll pegged sterling at $1.29 in one month, $1.34 in six months and $1.37 in a year’s time, little-changed from a November poll. It traded around $1.275 on Wednesday.

The dollar has enjoyed unrivalled performance against its peers this year but will be undermined in 2019 on increasing concern about slowing U.S. economic growth, a poll showed. [EUR/POLL]

Against the euro EURGBP= the pound will be little moved from Wednesday’s level in one month when a euro will get you 89.0 pence. In six months and a year it will be worth 87.0p.

SLOW GROWTH

With little clarity about the terms under which Britain and the EU will part ways, British services firms were clobbered last month, leaving the economy at risk of contracting, a survey showed on Wednesday. [GB/PMIS]

The poll predicted Britain’s economy will expand 0.3-0.4 percent per quarter from here through to mid-2020, largely underperforming its peers.

It will grow 1.3 percent this year and a still modest 1.5 percent next year and in 2020, according to the poll of 76 economists, slower than ahead of the EU vote.

Still, a post-referendum recession never materialised and economists gave only a median 25 percent chance of one in the coming year and 30 percent within two years.

Inflation has held stubbornly above the Bank of England’s 2 percent target - and is not expected to be back there until the third quarter next year - yet the central bank has kept monetary policy loose.

It is not expected to raise the Bank Rate from the current 0.75 percent until at least April, when it will add 25 basis points. A subsequent 25 basis point increase is not expected until early-2020.

Only one of 77 economists polled expects the Bank to increase borrowing costs at its next policy decision on December 20.