France activates plan for no-deal Brexit

French Prime Minister Edouard Philippe announced the French government has activated its plans for handling the effects of a no-deal Brexit, which has become “less and less unlikely.” (AFP)
Updated 17 January 2019
0

France activates plan for no-deal Brexit

  • The plan provides for 50 million euros ($56 million) of investment in French ports and airports
  • “We want to be ready to protect the interests of our citizens,” said the prime minister

PARIS: The French government has activated its plans for handling the effects of a no-deal Brexit, which has become “less and less unlikely,” Prime Minister Edouard Philippe said Thursday.
Speaking after a ministerial meeting called to discuss the British parliament’s rejection of the divorce deal negotiated with the EU, Philippe said: “I have taken the decision to activate the plan for a no-deal Brexit.”
The plan provides for 50 million euros ($56 million) of investment in French ports and airports, “which are obviously the places most affected by the changes needed” in the event of Britain crashing out of the EU without a deal.
“In some ports that will be the construction of car parks, in others it will be the establishment of infrastructure for carrying out checks,” Philippe said.
France had already planned on recruiting extra customs staff and veterinary inspectors.
The French parliament is on Thursday expected to complete the adoption of a bill allowing the government to take decisions by decree if necessary following a no-deal Brexit, which could create potentially chaotic scenes on both sides of the Channel.
“We want to be ready to protect the interests of our citizens,” Philippe said.
“Our objective is at the same time to respect our obligations, to make sure that the lives of our citizens and, in a way, British citizens living in France, are impacted as little as possible,” he added.


Microsoft tops $1 trillion as it predicts more cloud growth

Updated 13 min 51 sec ago
0

Microsoft tops $1 trillion as it predicts more cloud growth

BENGALURU/SAN FRANCISCO: Microsoft Corp. on Wednesday briefly topped $1 trillion in value for the first time after executives predicted continued growth for its cloud computing business.
The Redmond, Washington-based company beat Wall Street estimates for quarterly profit and revenue, powered by an unexpected boost in Windows revenue and brisk growth in its cloud business which has reached tens of billions of dollars in sales.
Microsoft shares rose 4.4% to $130.54 in late trading after the forecast issued on a conference call with investors, pushing the company ahead of Apple Inc’s $980 billion market capitalization. The companies and Amazon.com Inc. have taken turns in recent months to rank as the world’s most valuable US-listed company.
Microsoft’s stock has gained about 23% gain so far this year, after hitting a record high of $125.85 during regular trading hours.
Under Chief Executive Satya Nadella, the company has spent the past five years shifting from reliance on its once-dominant Windows operating system to selling cloud-based services.
Azure, Microsoft’s flagship cloud product, competes with market leader Amazon Web Services (AWS) to provide computing power to businesses.
Growth in that unit slowed to 73% in the third quarter ended March 31 from 76% in the second quarter. Mike Spencer, Microsoft’s head of investor relations, said the decline was roughly in line with the company’s estimate.
Christopher Eberle, a senior equity analyst with Nomura, said that with Azure, “one should assume a slower rate of growth as we move forward, simply due to the law of large numbers.” Still, Azure will bring in $13.5 billion in sales in fiscal 2019 with an overall growth rate of 75%, he estimated. “I can’t name another company of that scale growing at these rates.”
Microsoft tops tech rivals such as Amazon in market capitalization on some days despite having less revenue, partly because most of its sales is to businesses, which tend to be steadier customers than consumers. A growing proportion of Microsoft’s software sales are billed as recurring subscription purchases, which are more reliable than one-time purchases.
Microsoft’s earnings per share of $1.14 beat expectations of $1 according to IBES data from Refinitiv.
Windows licensing revenue from computer makers grew 9% year over year, beating expectations after a 5% decline in the previous quarter. Spencer said a shortage of Intel Corp. processor chips for PCs that many analysts expected to last into this summer had been resolved earlier than expected, allowing PC makers to ship more machines.
Microsoft’s “commercial cloud” revenue — which includes business use of Azure, Office 365 and LinkedIn — was $9.6 billion this quarter, up 41% from the previous year but down slightly from the 48% growth rate the previous quarter.
Microsoft’s so-called “intelligent cloud” unit, which contains its Azure services, posted revenue of $9.65 billion, above Wall Street estimates of $9.28 billion, according to IBES data from Refinitiv. Chief Financial Officer Amy Hood said that unit could reach $11.05 billion in revenue in the fiscal fourth quarter.
The “productivity and business process” unit that includes both Office as well as social network LinkedIn had $10.2 billion revenue versus expectations of $10.05 billion.
Microsoft’s latest results contained two weak spots.
Its gaming revenue was up only 5% versus 8% the quarter before, which Spencer attributed to less revenue from third-party game developers and the fact that many gamers are delaying purchases of Microsoft’s Xbox console because a new model is expected soon.
Sales of the company’s Surface hardware grew 21% versus 39% the quarter before, also because customers waited for updated hardware they expected to be released soon.
Total revenue rose 14% to $30.57 billion, beating analysts’ average estimate of $29.84 billion according to IBES data from Refinitiv.
Net income rose to $8.81 billion, or $1.15 per share, from $7.42 billion, or 96 cents per share, a year earlier.