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Amazon’s advertising profits will surpass cloud by 2021: Piper Jaffray

“The firm reaffirmed its overweight rating for the internet giant’s stock, predicting its ad business profits will surpass its cloud computing income by 2021” writes Michael S for cnbc.com. Olson noted the “Other” segment, where Amazon’s ad business resides, grew sales 72 percent in the second quarter.Amazon’s stunning growth in the internet advertising market will boost the company’s shares, according to Piper Jaffray.The analyst estimates Amazon’s ad business operating income will grow to $16 billion in 2021 versus $15 billion for Amazon Web Services that year. Amazon shares have rallied…

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London housing sales struggle as multiple issues put off buyers

“The London real estate market is losing steam with sales struggling to complete” writes Christopher Furlong for cnbc.com. Real estate companies have admitted that a slowdown in sales has affected their profits.Savills also said Thursday that residential transactions fell 7 percent in London during the first half of 2018, denting its profits.Data from Reapit Group, a real estate software company, showed that, on average, houses in the Greater London region were withdrawn from sale after 5.7 months. Source: cnbc.com Share This:

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Deutsche Telekom again lifts core profits guidance

“Deutsche Telekom’s revenues declined by 2.8 percent, year on year, to 18.37 billion euros, shy of expectations in the company’s own poll of analysts” writes Midwest Communications Inc for 95kqds.com. Adjusted net profit, the key metric for setting dividends in Deutsche Telekom’s recently adopted mid-term strategy, rose 3.3 percent to 1.238 billion euros.On an organic basis, stripping out the impact of exchange rate fluctuations, revenues and adjusted EBITDA grew by 1.3 percent and 3.9 percent respectively. Source: 95kqds.com Share This:

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AutoNation says F&I profit will hold steady even when new-vehicle sales fall

“As used-vehicle sales rise and new-vehicle sales decline, AutoNation’s F&I profit per unit will likely hold steady, executives said last week” writes Hannah Lutz for autonews.com. But as used-vehicle sales rise and new-vehicle sales decline, COO Lance Iserman said, F&I profit per vehicle is likely to stabilize as new- and used-vehicle sales become “one to one.”. At $1,789 on a same-store basis, AutoNation’s F&I profit per vehicle in the second quarter was highest among the public new-vehicle dealership groups. Source: autonews.com Share This:

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Glencore profits fall short as rising costs and legal wrangling looms

“Glencore blamed higher costs as well as lower market prices for cobalt, among other products” writes Jillian Ambrose for telegraph.co.uk. Glencore may have increased its profits by almost a quarter to set a new record for its interim results, but investors were left unimpressed as the mining behemoth fell short of expectations and faces higher costs to come.Cost inflation has emerged as a key threat across the industry as commodity prices recovery from a three year market rout.The embattled FTSE 100 giant, currently implicated in an alleged corruption scandal, revealed…

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Mining giant Glencore reports 23 percent rise in profit 

“Mining and trading firm Glencore on Wednesday reported adjusted first-half core profits of $8.3 billion, up 23 percent from a year earlier and earnings before interest and tax from its trading division up 12 percent at $1.5 billion” writes Gianluca Colla for cnbc.com. CEO Ivan Glasenberg said market conditions were likely to remain volatile and the focus remained on “creating value for shareholders through the disciplined allocation of long-term capital.”.  Source: cnbc.com Share This:

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Overseas costs drag on profits at Domino’s Pizza; shares slide

“(Reuters) – Rising overseas costs, particularly in Norway, overshadowed an improvement in sales at Domino’s Pizza Group , pushing first-half pre-tax profit down almost 10 percent and sending the company’s shares to an 11-month low” writes Midwest Communications Inc for 95kqds.com. Although sales rose more than 180 percent in Norway, losses climbed because of increased labor costs, but Wild indicated that performance would improve in the second half of the year.Overseas costs also contributed to a rise in net debt to 182.1 million pounds from 61 million pounds last year,…

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Rising Costs and U.S. Settlement Crimp HSBC’s First-Half Profit

“Flint told Reuters it is too soon to see any results from that new strategy” writes Min Read for reuters.com. HONG KONG/LONDON (Reuters) – HSBC Holdings Plc (HSBA.L) posted a small increase in first-half pretax profit, as rising expenses from investments in a new growth strategy and a $765 million settlement for alleged mis-selling of U.S. mortgage securities ate into higher revenues.The settlement wiped out almost all of the bank’s profits for the first half of the year in North America, where it is trying to turn around a U.S.…

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HSBC fails to impress City as costs rise in ‘tough’ quarter

“Analysts at Keefe, Bruyette & Woods said HSBC had had a “tough quarter” and the City’s focus would most likely be on the weakness in underlying profits” writes Ben Marlow for telegraph.co.uk. However adjusted pre-tax profits – which strip out one-off costs – were down 2pc to $12.1bn. John Flint, HSBC’s new chief executive, said the rise in costs reflected major investment in new hires and digital…Europe’s largest lender by assets posted a 5pc rise in pre-tax profits to $10.7bn (£8.2bn) for the first half of the year, up from $10.2bn…

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HSBC first-half pretax profit rises 4.6 percent, second quarter beats estimates

“Pretax profits for the first half from Asia jumped 23 percent to $9.4 billion, representing 88 per cent of the group’s pretax profits” reports businessinsider.com. HSBC reported a pretax profit of $10.7 billion in the six months through June, up from $10.2 billion in the same period a year earlier.The bank’s pretax profit of $5.96 billion in the April-June quarter was higher than the $5.79 billion average of analysts’ forecasts compiled by the bank. The bank also announced that it had appointed Jonathan Symonds, formerly chairman of HSBC Bank plc,…

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