Europe Biz: Ted Baker in $32m blunder, Airbus dismisses 16 employees
Updated 23:22, 02-Dec-2019
Catherine Newman and Juliet Mann
Ted Baker's shares fell 10% in early trading. (Credit: Simon Dawson / Reuters)

Ted Baker's shares fell 10% in early trading. (Credit: Simon Dawson / Reuters)

Ted Baker 'may have overstated inventory by up to $32m' 

Ted Baker says it may have overstated its inventory by as much as 25 million pounds ($32 million), in the latest of a series of challenges faced by new CEO Lindsay Page. 

Shares in Ted Baker fell 10 percent at market opening after Liberum analysts described the news as "less than ideal." They have dropped by 74 percent so far this year.

This year, former boss Ray Kelvin stepped down over misconduct claims, while sales and profits have tumbled. In the latest setback, Ted Baker said it may have accounted for stock, mainly clothing, on its balance sheet that did not exist.

The company said in a statement: "Ted Baker is committed to ensuring the independent review is completed in an efficient and transparent manner and will update the market as appropriate. Whilst the review is ongoing, the company will not comment further."

Ted Baker added, however, that it did not expect any cash impact from the overstatement of inventory.


Airbus dismisses 16 employees in German compliance investigation

Airbus has dismissed 16 employees after an investigation into the potential misuse of client documents. 

The inquiry was launched by Munich prosecutors in September after the company alerted authorities to potential irregularities surrounding the documents, which concern two procurement deals in Germany. 

Airbus CEO Guillaume Faury, right, announced a $30bn deal with Emirates in November (Credit: AP)

Airbus CEO Guillaume Faury, right, announced a $30bn deal with Emirates in November (Credit: AP)


Just Eat investor slams Prosus's low bid 

Investors in Just Eat should back the all-share merger with unless rival bidder Prosus lifts its offer to 925 pence per share, said one of the company's shareholders on Monday.

Just Eat shareholders have two offers to consider – a tie-up between the British group and its Netherlands-based peer; and a 710 pence-a-share cash offer from technology company Prosus.

Cat Rock has been very open about its support of the Takeaway deal, and said in a letter to other shareholders on Monday that Prosus had exaggerated the challenges facing Just Eat as a way of rationalizing its low price. It also said Prosus should raise its offer to at least 925 pence. 


Spain's manufacturing decline slowed in November 

Spain's manufacturing sector contracted for a sixth straight month in November as weak overseas demand and domestic political uncertainty continued to drag, although there have been rebounds.

Markit's Purchasing Managers' Index (PMI) of manufacturing companies rose to 47.5 last month, from 46.8 in October. This figure has remained below the 50 mark, which separates growth from contraction, since June. 


US-China trade deals

There is a cautious optimism on financial markets about a US/China trade deal, but also about the health of the global economy in general, with recent data hinting that the manufacturing sector, on the brink of recession for most of the year, is showing signs of improvement.

"Today's final manufacturing PMI numbers from Spain, Italy, France and Germany could well go further in reinforcing this narrative, with expectations of improvements in both France and Germany … Spain and Italy, on the other hand, are expected to underperform," said Michael Hewson, chief market analyst at CMC Markets.


UK election campaigning

In the UK, the focus is firmly on election campaigning. As the polls fluctuate, so will the pound. With US President Donald Trump arriving in town for the Nato summit, there could be questions about a future UK/US trading relationship, which could tickle investors.


Cyber Monday

Today is Cyber Monday – another so-called shopping bonanza, yet one with the bargains apparently online rather than in store. Big hopes have been placed on US consumers in particular spending their way out of recession and setting the tone around the world. So, big shopping days like this will continue to be monitored closely.

"With so much good news baked into global asset markets that a trade deal will get across the line in some shape or form shortly, less than spectacular sales data could weigh on markets this week," said Jeffrey Halle at OANDA.

Source(S): Reuters