Category: Business News

Time Warner has reported better-than-expected profits on the back of its hit superhero film Wonder Woman.

The US media firm posted an 11.6% rise in second-quarter net income to $1.1bn (£800m), driven by a strong performance by Warner Bros, which includes its movie business.

Wonder Woman, featuring Israeli actress Gal Gadot, had grossed about $800m worldwide by the end of July, it said.

The firm has already set a date of December 2019 for a sequel.

Wonder Woman continues to smash box office records

Wonder Woman’s female director conquers box office

Wonder Woman women-only screenings in Texas spark row

Time Warner said total sales had climbed 5% to $7.3bn in the three months to 30 June, despite a fall in advertising revenue in its Turner division, which owns news channel CNN.

Like other media companies, the firm has been struggling with the rise of streaming platforms such as Netflix, which has curbed ad spending on conventional TV networks.

Movies boost profit

Revenue from its HBO channel, home to hit fantasy TV series Game of Thrones, rose slightly to $1.48bn. However, analysts were expecting $1.51bn, according to the data company FactSet.

Time Warner performed best in its Warner Bros division, where revenues increased 12% to $3bn, due to higher film and video games sales.

The firm said Wonder Woman was already the highest-grossing live-action film by a female director, and the third-highest grossing Warner Bros movie ever at the US box office.

It also said the Lego Batman Movie and the sequel to Fantastic Beasts And Where to Find them had boosted sales.

Shares in Time Warner opened 0.16% higher in New York.

US regulators have taken a first step towards overhauling a key piece of regulation brought in to protect the economy after the financial crisis.

The Office of the Comptroller of the Currency said it was seeking views on revising the Volcker Rule, which stops banks trading with their own money.

The Trump administration has called for “significant changes” to the rule, which they say hampers banks’ growth.

But critics say diluting it would make the financial system less safe.

The acting Comptroller of the Currency, Keith Noreika, said voices from across the political spectrum had called for the law to be made clearer.

“A bipartisan consensus has emerged that the Volcker Rule needs clarification and recalibration to eliminate burden on banks that do not engage in covered activities and do not present systemic risks,” he said.

‘Open to improvements’

Since its introduction, big banks have criticised the Volcker Rule, arguing that it is impossible for regulators to work out what type of trading should be barred.

And in June, the US Treasury recommended changes to the current rule, including exempting banks with less than $10bn in assets and easing compliance requirements.

Supporters say that curbing risky trading by banks is critical to preventing a rerun of the financial crisis.

But some, such as Federal Reserve Chair Janet Yellen, have said they are open to improving the legislation.

The Office of the Comptroller of the Currency has not been joined by the other four US regulators charged with writing and enforcing the Volcker Rule.

Any changes would need to be approved by all five under current law.

The government has revealed through a job advert how it plans to tackle unfair trade after Brexit.

A new body called the UK Trade Remedies Organisation will be set up to tackle allegations of unfair competition and investigate complaints.

The online advert for a digital design lead said the organisation needs to be up and running by October 2018 – ahead of the UK’s exit in March 2019.

The UK can then enforce its own trade rules – a job currently done by the EU.

“This is a challenging deadline and the Trade Remedies Implementation Team is being formed to ensure this is effectively delivered on time,” read the advert.

The organisation will be an “arm’s length body” of the Department for International Trade.

The group’s implementation team – which the new recruit will join – will be responsible for hiring 130 staff and designing the organisation, including its IT, HR and finance structures.

However, prospective candidates have been warned they will be working in a “changing and uncertain environment”, with changes to policy possible as “thinking develops”, as legislation moves through parliament, and because of the on-going negotiation with the EU.

“This is a brand new function in the UK and delivering a fully functional and fit-for-purpose organisation by October 2018 is a huge challenge,” read the advert.

The job offers a salary of between £48,483 and £56,370.

The Dow Jones Industrial Average surged past 22,000 points for the first time ever in opening trade on Wednesday, lifted by a rise in Apple shares.

The Dow, a basket of 30 major US stocks, added more than 46 points in opening trade, rising 0.21% to 22,010.62.

The Wednesday morning milestone continued a streak of share price gains since January.

The Dow has since lost most of those early gains and is back below 22,000.

The wider S&P 500 index was essentially flat at 2,476.93.

The tech-focused Nasdaq index climbed 24.37 points or 0.38% to 6,387.31.

The markets’ rise on Wednesday morning was attributed to reaction to earnings from technology giant Apple.

Shares of the California company spiked more than 5% after the firm reported strong sales of iPhones, iPads and other services.

The Dow has risen almost 11% since the start of the year. The S&P is up about 10%, while the Nasdaq has climbed about 17%.

Analysts first said the stock rally was due to optimism about President Donald Trump’s business-friendly policies such as corporate tax reform. Now they say strong corporate earnings are boosting share prices.

German carmakers have agreed with top politicians to cut harmful emissions by updating software in five million diesel vehicles.

New engine management software will improve emission filtering systems and cut toxic nitrogen oxide levels by 25-30%, the industry association VDA said.

The industry is under pressure since a diesel emissions scandal exposed cheating to manipulate test readings.

The deal was struck at a summit with top politicians in Berlin.

It was approved in Berlin by Daimler, BMW, Volkswagen and Opel, VDA said in a statement (in German).

Car firms are a crucial part of the German economy, providing more than 800,000 jobs.

• VW ‘to address diesel fix concerns’

• Volkswagen: The scandal explained

Pressure to cut emissions increased last week, when a court in Stuttgart upheld a proposal to ban older diesel cars from the city.

It is the home city of Mercedes and Porsche, and one of Germany’s pollution hotspots.

‘Stop-gap measure’

As the summit got under way, Greenpeace environmental activists unfurled a banner on the roof of the transport ministry saying “Welcome to Fort NOx [nitrogen oxide]”.

The VDA said the software updates would be free for motorists and would be just as effective, in cutting NOx levels, as any bans on diesel cars in cities.

The diesel cars targeted will be those in the EU’s Euro-5 category for car emissions (for new registrations from 1 January 2011) and some in the Euro-6 category (for new registrations from 1 September 2015).

Of the five million cars covered by the agreement, 2.5 million are Volkwagens.

BMW says the offer will cover 225,000 of its cars in the Euro-5 category.

BMW will also give a discount of up to €2,000 (£1,792; $2,373) to drivers who exchange an old Euro-4 category BMW when they buy a new diesel BMW, electric BMW or Mini. Ford has made a similar offer.

The VDA stressed that the software update would not reduce a car’s efficiency or durability.

Electric future

Greg Archer of the lobby group Transport and Environment called the software upgrade a “welcome stop-gap measure” but said it was “not a long-term solution to the air pollution crisis”.

The BBC’s Jenny Hill in Berlin says air pollution now regularly exceeds legal limits in many German cities. It is a headache for the mighty automotive industry and for German politicians, ahead of a 24 September general election.

But Germany is unlikely to commit to ending production of combustion-engine vehicles any time soon, our correspondent says.

France and the UK plan to ban sales of fossil-fuel vehicles from 2040.

But switching to a future of electric vehicles will be hugely expensive – not least because of the need for charging points everywhere.

History has given us great personalities who went on to become famous leaders. The times they lived in might be different from ours, but their message still holds relevance. They exhibited such exemplary leadership skills, their personalities could not remain isolated within their times. These leaders have greatly impacted many of the modern leadership learnings, that have been absorbed by small business owners to even top level corporate CEOs.

To make your small business truly stand out and become the industry leader, learn leadership lessons from some of the greatest world leaders:

Genghis Khan: Change the world, but change it gradually.

He might have been one of the most ruthless kings in history, but he did get the job done. As an owner of a small business, the reality is the odds are stacked against you. The pressure to deliver is unparalleled — you only get one chance, and no matter what, you have to deliver. The great Mongol emperor was ambitious but not blind. He built a great empire but slowly and steadily. Learn from someone who came from nowhere and went on to spread the Mongol empire over Europe and Asia, changing world history and culture in the process.

Small businesses need to see change as an inevitable but gradual process. Do not jump the gun, take your time, plan out your business plan and execute it with precision. Just like Genghis Khan, as a small business owner you need to be patient, be a persistent learner, keep experimenting and constantly revising so that you are able to deliver.

Mahatma Gandhi: Learn to say no.

Mahatma Gandhi was one of the prolific leaders in helping India gain its independence. Along the way, Gandhi taught the world many words of wisdom, one of which was learning to say ‘no.’

Small businesses often tend to be people-pleasing, but that’s not a great idea. When you keep saying ‘Yes’ to everything and anything, you are taking on more commitments than you can handle. With limited resources, you end up failing to deliver on your promises. Saying no to someone is not easy, but sometimes it’s necessary.

Here are a few ways you can say no without hurting the sentiments of the other person:

• Don’t wait to give your decision. When you say no to someone, do not wait until the last minute, make it quick and easy. Wasting people’s time by leaving them hanging for days and weeks will worsen the situation.
• Give clarifications. Don’t over do it, but provide brief reasons as to why you will not able to say yes to the commitment.
• Do not mince words. Refrain yourself from using: let’s see, I am not sure, probably, maybe.

Martin Luther King Jr.: Great leaders do not sugar coat reality.

Martin Luther King Jr. saw the ugly realities that existed in his times, he did not shy away from them, he took them head-on. The same way, small businesses cannot shy away from their realities or weaknesses. Instead of hiding it, face it and convert those limitations into opportunities.

Your passion for your small business might be admirable, but it shouldn’t make you blind to reality. If you face criticism, learn from it. See where you lack and work to improve it. Sugarcoating your shortcomings is going to backfire on you.

Collect customer feedback to identify and get rid of the roadblocks that hamper customer experience, helping to reduce your churn rate. Use the feedback insights to keep making changes to your business. At the same time, keep measuring customer satisfaction to see if the new changes are translating into a positive customer experience.

To make your feedback process more efficient, here are few things to keep in mind:

• Don’t make immediate changes. Take the time to study them and then gradually implement the insights.
• Always give focus on negative reviews. More than the positive ones, look at the negative customer opinions and do not be discouraged by them.
• Keep at it. Conduct feedback as many times as possible. It keeps your business on top of things, all the time.

Nelson Mandela: Sell strength not fear.

Nelson Mandela, the revolutionary politician and former president of South Africa, always believed in the power of courage. When at the height of apartheid, he embraced strength to his people, instead of selling them fear.

As a small business owner, you have a responsibility of encouraging employees and stakeholders to have faith in rough times. When you show fear, people will have doubts about your leadership abilities. Panicking will not help you solve any problem when you are cool headed and in control of your emotions, you are in a better mental state to find solutions.

Showcasing your vulnerability might sound romantic to some, but as leaders, you can’t afford to be the weak link. You have to project a stronger personality, that encourages people to trust your judgments. Here are few ways by which you can show a more authoritative personality:

• Don’t allow excuses. Whether it’s you or your employees, you should not entertain yourself with excuses. (Privately) call people out on their excuses, and hold them accountable.
• Allow pauses when you speak. When you break your speech pattern with a small pause, it shows that you are in control and know what you are talking about. Pauses also help in providing a reference for emphasis.
• Build a high EQ. As leaders, you need to have a high emotional intelligence to project yourself as a strong leader. It’s when you are in control of your emotions, you are better at managing your employees’ emotions.

Muhammad Ali: It’s not showing off if it’s true.

Muhammad Ali, the most flamboyant boxer known to the sports world, was a fast talker who people found endearing. Why? Because he didn’t sell fluff, he preceded his talks with his actions. And he made sure that the world knew about his golden moments.

Don’t get me wrong, you should be humble, but at the same time don’t feel guilty about your success. Small business owners need to understand that the more they spread the word about their achievements, the more eyeballs they will be able to garner. That’s how you get recognized as an industry leader.

Not every business can do what you achieved, always remember that. This kind of appreciation motivates your employees as well, it encourages them to work harder, with more passion. Don’t feel guilty, this success has come to you because the foundation of your business has always remained strong. So, work hard and enjoy the laurels.

Wrapping up

These are just a handful of world leaders that history has produced. The way they lived their lives can teach you a lot about how to lead your small business. That being said, learning is just the beginning, to become a genuine leader you have to execute the lessons learned. It’s not easy, I agree, but neither is it impossible. In the end, isn’t that the whole point of leadership doing something others can’t?

More from Bizness Apps

Sales falls and lower profits at supermarket Asda in 2016 have been revealed in detail in newly-filed accounts.

The figures for the Walmart-owned supermarket, filed at Companies House, confirm a torrid spell for Asda as it faced stiff competition in the grocery sector.

Like-for-like sales were down 5.7% compared with the previous year.

Pre-tax profits dropped almost 19% to £791.7m at the Leeds-based company.

“The grocery market has continued to experience low growth throughout the year and competition in the sector has remained intense. Our sales performance, relative to the market, was behind our expectations,” the company said.

Changes

Asda, Tesco, Sainsbury’s and Morrisons – the so-called big four UK supermarkets – also face competition from German discounters Aldi and Lidl.

Asda suffered more than most and, unlike others, has struggled to fight back. In May, it reported decreasing sales in the first quarter of 2017 – the 11th consecutive quarter of falls – as it continued to lose ground to its rivals.

However, Asda added that despite the disappointing results, there had been an improvement following “strategic changes” under new boss Sean Clarke.

Mr Clarke, who replaced previous chief executive Andy Clarke a year ago, has slashed the prices of everyday items as he attempts to arrest falling sales.

The chain reported a 2.8% fall in like-for-like sales in its first quarter of this year, a moderate improvement on the previous period, which saw sales fall 2.9%.

‘Focus on price’

Analysts have said that a major turnaround is required at Asda.

“Sainsbury’s and Tesco have always had more opportunity for differentiation from the discounters, but Asda has chosen to focus on price rather than range and in-store experience, which has clearly been the wrong strategy,” said Tom Berry, retail analyst at GlobalData.

“Asda has been flailing without direction for too long, and a comprehensive plan is needed if it is to survive in the highly competitive UK grocery market.”

Phil Dorrell, of consultancy Retail Remedy, is a previous marketing chief at Asda. He said that it was a difficult market for Asda and it “had a lot of catching up to do”.

“It is not changing significantly or fast enough to pull around the results. It did not get its proposition right,” he said.

Fidget spinners that can puncture the skin have been discovered for sale in the UK by a BBC Watchdog investigation.

Safety fears have been raised about the spinners – a craze that has fascinated children and frustrated parents – with others found to fail safety tests.

Some in the shape of a “shuriken”, an offensive weapon in the UK, were found to be on sale on eBay.

Tests found they could damage eyes and puncture skin. The auction site said they would be removed from sale.

The spinners, originally designed to help children with conditions such as autism deal with stress, have become a playground craze.

The Watchdog team bought three fidget spinners – marketed as toys for children – from eBay.

They had the appearance of a “death star” or “shuriken”. The items were put through testing by blades expert Professor Sarah Hainsworth. She tested the spinners by stabbing into a tomato, used as a substitute for an eye, and pork skin, used as a substitute for human skin.

All three spinners had the ability to puncture the tomato, and two out of three were able to puncture the pork skin.

A spokesman for eBay said: “These items are absolutely not permitted and will be immediately removed. We’d like to thank the programme for bringing these items to our attention.”

BBC Watchdog also bought five fidget spinners from local shops. A toy safety expert concluded that none of them should have been sold as they did not pass essential toy safety tests.

Concerned parents have also recounted evidence of poor quality spinners, including one who found a large shard of metal protruding from the toy.

Advice from Trading Standards for anyone buying spinners and other toys includes:

• Always look for the CE mark on packaging. This means they have been safety tested to European standards. If you can’t see one – don’t buy it
• Always buy from a reputable seller, and do not buy these toys for children aged under three as they have small parts that could present a choke hazard to children

You can watch the full story on BBC One at 20:00 BST on Wednesday 2 August, and later on the BBC iPlayer

Doorstep lender Provident Financial topped the London stock market in midday trade, up by 2.2%.

Rio Tinto was among the fallers, down 2.27% after it updated the market on its performance. It said profits had almost doubled to $3.3bn for the six months to 30 June.

The benchmark FTSE 100 was down 0.29% in lunchtime trading at 7,402.08.

In the FTSE 250 shares in William Hill bookmaker were up 9%, despite an 11% drop in first-half pre-tax profit.

The firm, which in March named a new chief executive and a finance chief, said profit before interest and tax for the 26 weeks to 27 June fell to £109m from £122m a year earlier.

Other winners in the FTSE 100 included ITV, Paddy Power Betfair, Old Mutual and Babcock International.

Other fallers included Standard Chartered, CRH, Smurfit Kappa, and Ashtead Group.

On the currency markets, the pound was up 0.18% against the dollar at $1.3227 and 0.04% down against the euro at 1.1185 euros.