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TalkTalk suffers the costs of turnaround plan

“TalkTalk has swung into the red after absorbing a string of turnaround costs, while revealing its cut-price packages had lured back customers over the last year” writes Ben Marlow for telegraph.co.uk. The operator posted a pre-tax losses of £73m in the year to March 31, compared with profits of £70m the previous year, dragged down by £119m of turnaround costs. Around half its customers now signed up to one of these low-price deals.The company has been struggling to compete with rivals such as Sky and BT and has been forced…

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Markets News 

Uber Finds Profits in Leaving Tough Overseas Markets

“As a private company, Uber is not obligated to report quarterly results” reports nytimes.com. Uber said the investment funds Coatue, Altimeter and TPG will buy up to $600 million worth of stock in Uber, valuing the company at around $62 billion. The latest offering will again allow some of Uber’s earliest investors and employees to sell shares.Abboud, Uber’s spokeswoman, said the company has been engaged in ongoing discussion with the mayor’s office and the state about restarting testing. Source: nytimes.com Share This:

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Congress to roll back post-crisis financial rules as banks post record profits

“The banking industry made record profits in 2018, a federal agency reported Tuesday, as Congress prepares to roll back banking rules put in place after the 2008 financial crisis” writes Renae Merle Covers for washingtonpost.com. Both figures surpass the industry’s previous record for quarterly profits, the $48.1 billion the industry posted during the second quarter of 2017.The bill, which has already passed the Senate with bipartisan support, would subject fewer financial institutions to regulators’ toughest rules.The Trump administration has also taken several steps to ease the industry’s regulatory burdens, which…

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Ryanair shrugs off pilot shortage chaos to post soaring profits

“Ryanair shrugged off a pilot shortage that led to thousands of cancelled flights to post a surge in annual profits and revenues” writes Jack Torrance for telegraph.co.uk. But Ryanair still managed to grow pre-tax profits in the 12 months to March by 10pc to €1.3bn (£1.1bn) thanks to a boom in passenger numbers that pushed up sales 8pc to €7.2bn.Michael O’Leary, chief executive, warned however that costs were likely to rise 9pc this year as it contends with a higher wage bill and the soaring price of oil, which the…

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Marks and Spencer slump raises FTSE relegation fears

“Marks & Spencer is bracing for a second straight year of falling profits and a potential relegation from the FTSE 100 index as biting retail conditions hit food and clothing sales” writes Ben Marlow for telegraph.co.uk. Such a performance could condemn the retailer to the second-tier index as part of a FTSE 100 quarterly reshuffle due just days later.The high street staple will reveal a 7pc fall in pre-tax profits to £572.6m, and a meagre 1pc revenue rise to £10.7bn, when it announces full-year results on Wednesday.M&S’s food business and…

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News Oil 

Why surging oil prices don’t always mean big profits for U.S. shale producers

“Looking ahead, it looks as though shale oil producers may have the time they need to catch up” writes Markets Commodities Reporter for marketwatch.com. Figuring out the break-even cost per barrel for shale oil producers is a bit tricky, though experts agree that it runs lower than current futures prices.Read Opinion: These U.S. shale-oil companies are poised to profit when prices rise But that rise in prices put companies who hedged against the potential of falling oil prices at a disadvantage.U.S. shale producers have also increased their investments as prices…

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At Germany’s SAP, employee mindfulness leads to higher profits

“After the training, SAP employees often start meetings with a minute of stillness” writes Emma Thomasson for reuters.com. The company estimates that a 1 percentage point increase in employee engagement translates into a rise of 50 million euros to 60 million euros (43.7 million to 52.5 million pounds) in operating profit, while a 1 percentage point increase in its business health culture index can add 85 million euros to 95 million euros.Of SAP’s 91,000 employees, 6,500 have participated in a two-day program, including several top executives. Source: reuters.com Share This:

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Unlike Bezos, I’m a business owner who supports the head tax | Op-Ed

“Progressive small business owners like me have worked hard to put our dreams into reality in this increasingly unequal city” writes Shirley Henderson for seattletimes.com. Amazon CEO Jeff Bezos and I share one thing in common: Both of us have businesses headquartered in Seattle.Raising the minimum wage to $15 an hour did not cause massive disruption to Seattle’s business community and neither will the proposed head tax to support the homeless.That’s about how much would be required of them in one year if the proposed head tax is passed.Even many…

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HSBC, BNP Paribas Profits Down In Q1

“HSBC and BNP Paribas both recorded profit declines for the first quarter of 2018, according to reports on Friday (May 4)” reports pymnts.com. The bank pointed to a weaker dollar and other factors that have suppressed banking revenues.France’s BNP Paribas, meanwhile, also disappointed with a 17 percent drop in net profits, though reports in Reuters on Friday said this was expected.The Wall Street Journal said shares in U.K.-headquartered HSBC fell 2.8 percent on the London Stock Exchange after the bank revealed net profits were down year over year, from $3.13…

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