The 10 biggest business stories on Thursday January 14

Lower spending in Hong Kong and Macau hits Burberry sales; Tesco sales rise 1.3% over Christmas period, beating expectations

British fashion brand Burberry posted a 1% rise in third-quarter sales on Thursday buoyed by growth in China but said the outlook for the luxury sector remained uncertain

1. The Indonesian central bank cut interest rates 25 basis points to 7.25 per cent in a scheduled meeting just hours after explosions and gunfire erupted in Jakarta.

2. Tesco has had a strong Christmas with UK sales rising 1.3 per cent on a like-for like basis in the six weeks ending January.

3. Bank of England policymakers are expected to keep interest rates at record lows on Thursday, in the wake of the increasing likelihood that the UK economy slowed down last year.

4. Online fashion retailer ASOS reported a recovery in international sales growth on Thursday, helped by moves to make its prices abroad more responsive to exchange rate volatility.

5. Associated British Foods said total sales at its discount fashion store Primark were up 7 per cent in the four months leading up to Christmas on a constant currency basis, boosted by new store openings in Spain and the US.

6. Argos has seen a drop in its Christmas sales in the 18 weeks to 2 January, with like-for-like sales down by 2.2 per cent.

7. Burberry reported flat same-store sales growth its fiscal third quarter as the British luxury retailer continued to feel the impact of lower luxury spending in Hong Kong and Macau, and said outerwear sales were affected by warm weather.

8. UK housebuilder Countryside Properties said it expects to raise about £114 million through an offer of new shares, ahead of its return to the London Stock Exchange after more than a decade.

9. Swiss chocolate maker Lindt & Spruengli on Thursday missed expectations for its full-year sales after a sluggish global economy and hot weather hit consumer demand. Group sales were up 7.9 per cent at CHF3.65 billion ($3.62 billion), behind analysts' estimates for 3.74 billion franc revenues in a Reuters poll.

10. At least three winning tickets were sold in the record $1.5 billion Powerball jackpot, the New York Times reported. The winners will divide a jackpot that, based on final ticket sales, is worth $1.568 billion, with a cash option of $983.5 million, according to the North Carolina Education Lottery.