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Alphabetannounced its first-ever dividend on Thursday and a $70 billion stock buyback, cheering investors who sent the stock surging nearly 16% after the bell.

The Google parent is returning capital while spending billions of dollars on data centers to catch up with rivals on generative artificial intelligence. The dividend will be 20 cents per share.

Just three months ago, Alphabet’s Big Tech rival, Meta Platforms, announced its own first-ever dividend, a move that lifted the social media company’s stock market value by $196 billion the following day. Amazon remains the lone holdout among Big Tech firms not offering a dividend.

Alphabet beat expectations for the quarter in sales, profit and advertising – metrics that are all closely watched.

“Alphabet’s announced dividend payouts and buybacks on top of the solid earnings beat are not only a breath of fresh air for the tech market as a whole, but also a very intelligent strategy for the search engine giant going into a tough time of the year,” said Thomas Monteiro, senior analyst at Investing.com.

Alphabet’s after-hours share surge of nearly 16% following the report increased its stock market value by about $300 billion to over $2 trillion.

In a call to discuss results, CEO Sundar Pichai touted Google’s AI offerings as a boon to its core search results. “We are encouraged that we are seeing an increase in search usage among people who are using the AI overviews,” he said.

Revenue was $80.54 billion for the quarter ended March 31, compared with estimates of $78.59 billion, according to LSEG data.

The search firm’s beat on first-quarter revenue was powered by rising demand for its cloud services on the back of increasing adoption of artificial intelligence and steady advertising spending.

Google reported advertising sales rose 13% in the quarter to $61.7 billion. That compares with the average estimate of $60.2 billion, according to LSEG data.

Alphabet is coming off a fourth quarter in which ad sales missed the mark, sending shares tumbling, amid rising competition from Amazon, Facebook and new entrants like TikTok. The latter faces an uncertain future after President Biden signed a bill that would ban the popular app if it is not sold within the next nine to 12 months.

Meanwhile, Google Cloud revenue grew 28% in the first quarter, boosted by a boom in generative AI tools that rely on cloud services to deliver the technology to customers.

Alphabet’s capital expenditures were $12 billion, a 91% rise from a year prior, a figure Gabelli Funds portfolio manager Hanna Howard called “higher than anticipated.”

Still, CFO Ruth Porat said on the call with analysts that she expects such expenditures to be at that level or higher throughout the remainder of the year, as the company spends to build artificial-intelligence offerings.

Despite the surge in capital expenditures, Porat said operating margin in 2024 would be higher than last year, without elaborating.

Google’s cloud services are attractive for venture capital-backed startups developing generative AI technologies due to their pricing and ease of integration with other tools, investors and experts have previously said.

Google has touted its AI-powered chatbot, Gemini, as a panacea for automation, from coding to document creation. The software was widely criticized, however, after it was found to generate historically inaccurate images, including of former US leaders and World War Two-era German soldiers.

Google has said it is aware of the issues and is working to address them.

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Business

Supermarket spreadable matches Lurpak in taste test | Sign up to Money newsletter

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Supermarket spreadable matches Lurpak in taste test | Sign up to Money newsletter

Sky News has launched a free Money newsletter – bringing the kind of content you enjoy in the Money blog directly to your inbox.

Each Friday, subscribers get exclusive money-saving tips and features from the team behind the award-winning Money blog, which is read by millions of Britons every month.

Sign up today, and this week you’ll find the following in the newsletter:

  • The free £2,000 that 800,000 parents aren’t claiming
  • Our Verdict: Our blind tasters put spreadable butter to the test – and a cheaper supermarket version comes joint top with a big name
  • And we outline the best deals available in five key areas for your household budget

So join our growing Money community – and thanks to the thousands of you who already have.

What to expect each week

The newsletter is your essential personal finance companion, with digestible information to help you make smarter decisions on your savings, mortgages, holiday money and much more.

As a subscriber, you get additional exclusive content that goes beyond the blog.

At a time when the global economy faces so much uncertainty, we have analysis from our trusted economics teams on the big stories that affect the cash in your pocket.

You also get first looks at popular features such as Money Problem, Cheap Eats, What It’s Really Like To Be A and our weekend Long Read.

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Politics

MPs want Mandelson back in Britain to face questions over Epstein ties

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MPs want Mandelson back in Britain to face questions over Epstein ties

MPs are demanding Peter Mandelson appears on British soil to give evidence on his relationship with paedophile Jeffrey Epstein.

But there is frustration within parliament at Lord Mandelson’s ability to avoid scrutiny, as Sir Keir Starmer faces mounting pressure to sack him as ambassador to the US over his links to the deceased billionaire.

It comes after it emerged the Labour peer, who has said he wishes he had never met Epstein, had written him a 2003 birthday note in which he described him as his “best pal”.

According to reports in Bloomberg and The Sun, he also sent Epstein messages of support while he was being investigated for sex offences, telling him he was “following you closely and here whenever you need”.

Politics Hub: Follow the latest from Westminster

Sky News has learned that the powerful Foreign Affairs Select Committee of MPs made a request to hear from Lord Mandelson after he was appointed by Sir Keir last year, but this was blocked by the Foreign Office.

Lord Mandelson‘s status as a member of the House of Lords means the committee cannot force him to appear before them. People overseas can also not be compelled to give evidence.

Committees have the power to summon people to give evidence and find them in contempt of parliament if they do not comply.

Lord Mandelson’s failure to appear adds to the controversy around a lack of government transparency sparked by the decision to not let national security adviser Jonathan Powell give evidence to the Joint Committee on the National Security Strategy.

Mike Tapp, the Home Office minister, told Sky News that it is “important we have full answers” on Lord Mandelson’s relationship with Epstein.

Asked if he should face the scrutiny of parliamentary committees, Mr Tapp said: “What is important to me, and I’m really clear on this, is we do have the full answers on this.

“But Sir Keir Starmer has been clear yesterday in the House that all of the answers are there.”

Conservative MP and FAC member Aphra Brandreth is the only person on the committee to publicly call for Lord Mandelson to give them evidence on the ambassador’s links to Epstein.

Sky News understands that others on the committee are keen for Lord Mandelson to speak to them, but have decided not to go public. As the committee make-up mirrors that of parliament, most members are Labour MPs.

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Beth’s breakdown: PM grilled over Mandelson

Read more on Mandelson:
Starmer backs his ambassador
What was his relationship with Epstein?
The disconnect between his claims and letters to Epstein

Ms Brandreth said in a statement: “At a time of huge instability around the globe, it’s vital that the UK’s ambassador to the US is focused completely on his job

“As a member of the Foreign Affairs Committee, I would welcome the opportunity to question Lord Mandelson on his ability to carry out his duties to the UK.”

She shared a letter written by fellow Tory MP and former Foreign Affairs Select Committee chair Alicia Kearns.

In the letter, Ms Kearns called on current chair Dame Emily Thornberry to summon Lord Mandelson, question him and put the concerns of MPs to him.

Ms Kearns also wants to know what questions Dame Emily has asked the Foreign Office since the appointment of Lord Mandelson, and to find out “how substantial” his relationship with Epstein was.

Ms Kearns told Sky News: “Months and months have passed with no action from the chair of the Foreign Affairs Committee, instead, there has been an unsettling silence from her on all things Mandelson.

“I would have summoned Mandelson long ago, it’s the chair’s duty to get the answers parliament deserves. It’s all too evident Thornberry has long been focused on her next role, not the one she’s been elected and paid to do.”

In January, Dame Emily raised Lord Mandelson’s appointment with Foreign Office minister Stephen Doughty.

She said the appointment was “inspired” – before asking the minister and government to “allow Lord Mandelson the time to come before my committee before he leaves for the United States”.

Mr Doughty said: “I am sure that we will consider any request that my right honourable friend makes in due course in the normal way in which we consider requests from her committee.”

The FCDO has been approached for comment.

Sky News’ deputy political editor Sam Coates reports that the lead civil servant in the Foreign Office, Ollie Robbins, has written to Lord Mandelson to ask a series of questions.

These questions include: When did you last meet Jeffrey Epstein before he took his own life? When did you last accept hospitality? What were your last business dealings with?

It is not known if Lord Mandelson will respond.

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Will Lord Mandelson have to be replaced in US?

Meanwhile, Labour MPs Andy McDonald, Bell Ribeiro-Addy and Kim Johnson have called for Sir Keir to sack Lord Mandelson.

The SNP’s Westminster leader, Stephen Flynn, also urged the prime minister to remove Lord Mandelson without further delay – warning his “reputation is now on the line”.

But a source within diplomatic circles who has known Lord Mandelson told Sky News correspondent Rhiannon Mills they believe the US ambassador “can ride it out”.

“Unless there is worse to come, if he can stomach the attention, he can ride it out. In the UK residence in Washington, with its grounds and security, it is easy to hide away,” the source said.

“The most important part of Mandelson’s role as ambassador is his relationship with the US administration, they will not be the least bit fussed about this. They have bigger problems.

“This isn’t going to be a big story in the States as the focus is on Trump and dozens of other prominent American figures. The US press have lots of other fish to chase”.

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Environment

EU double standards on Russian LNG or economic reality?

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EU double standards on Russian LNG or economic reality?

Several European countries including Germany, Italy, Greece, the Netherlands and France have announced new LNG projects or the expansion to existing ones in response to shutdown of Russian gas pipelines.

Michael Sohn | Afp | Getty Images

So I’m sure you would have all seen U.S. President Donald Trump this week urged the European Union to impose tariffs of up to 100% on India and China to stop them buying cheap Russian oil.

A move that the U.S. administration said it would also match in an approach designed to ratchet up pressure on Russian President Vladimir Putin to talk seriously about peace in Ukraine.

This makes sense in many ways, as we all know – stop the flow of oil money, increase economic problems for Putin and force him to the peace table.

So far, so good…. and yet the accusations of double standards soon started flying out of New Delhi and elsewhere, and it’s fair to say India and other buyers of Russian commodities have a fair point.

Part of the problem is having the adequate supply of infrastructure to bring other kinds of energy sources into Europe, according to Italgas CEO Paolo Gallo.

And Italy is a “clear example [of] how we were able to significantly, massively reduce the importation of Russia, of Russian gas. But that is thanks to our speed to Eni, but thanks to our infrastructure. If we didn’t have the infrastructure, we couldn’t have switched from Russia to other source of LNG,” Gallo told me on Thursday.

Italy’s been going strong at building out its LNG infrastructure to reduce its dependency on Russian gas. Now, a big part in that effort’s come from energy firm Eni, in which the Italian government has a major share.

Let me remind you that Europe still imports vast quantities of Russian commodities, including liquified natural gas. In fact, Europe is still the biggest buyer of Russian LNG on the world market.

Yes, three years into the war and Europe is still buying 51% of Russian LNG!

Pres. Trump says U.S. and India continue to negotiate trade deal

And before we start pointing the finger at the usual recalcitrant EU suspects, let us remember that it’s not Slovakia or Hungary who are the biggest single country importers. No, this falls squarely on the shoulders of countries like France, Spain and Netherlands.

Astounded, confused disappointed? Well wait for this bit.

Despite promising to cut out all Russian LNG from the EU by the end of 2027, in the first six months of 2025 Europe grew — yes, grew — it’s hiked Russian LNG imports from 3.47 billion euros ($4 billion) to 4.48 billion euros’ worth.

As for the bloc’s bilateral trade with Russia? It was hitting 67.5 billion euros last year. You had imports from the region at 35.9 billion euros, properly dominated by fuel and mining products, and then you had EU exports to Russia not that far behind at 31.5 billion euros in 2024.

Double standards, hypocrisy, economic reality? I’ll let you make up your mind.

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