Day: May 6, 2020

U.S. lawmakers warn Trump against harming U.S. chipmakers amid coronavirus crisis

WASHINGTON (Reuters) – A group of Senate Republicans is urging U.S. President Donald Trump to avoid hurting American chipmakers, which they see as essential to the coronavirus response and the U.S. economy, as the administration cracks down on chip exports to China.

In a letter dated Wednesday, six senators, including Susan Collins, John Cornyn and Todd Young, expressed concern over rules released by the U.S. Commerce Department last week that could curb exports of chips and other technology to China in a bid to keep them from its military.

One of the rules expands the definition of a military buyer, potentially allowing the U.S. government to block semiconductor production equipment and other sales to China.

That rule and another, which does away with civilian license exceptions, are slated to go into effect in June without allowing industry to comment on the final versions.

“We are concerned that the Department of

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PayPal profit slumps as COVID-19 weighs on spending

FILE PHOTO: The German headquarters of the electronic payments division PayPal is pictured at Europarc Dreilinden business park south of Berlin in Kleinmachnow, Germany, August 6, 2019. REUTERS/Fabrizio Bensch

(Reuters) – PayPal Holdings Inc (PYPL.O) posted a 87.4% slump in quarterly profit on Wednesday as COVID-19 lockdowns hit consumer spending and forced the payments processor to boost its credit loss reserves, sending its shares down 3.7% in extended trading.

The coronavirus outbreak has forced companies to lay off millions of employees, dampening consumer confidence and heavily impacting people’s ability to spend on non-essential items.

“In March, the deteriorating environment resulting from COVID-19 further impacted PayPal’s business, affecting both volumes and revenue generated from travel and events verticals as well as impacting credit income,” the company said.

PayPal processed $191 billion in payments in the first quarter, up 18% from a year earlier, but missed analysts’ estimates of $194.23

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T-Mobile beats first-quarter postpaid subscriber estimates

FILE PHOTO: A T-Mobile logo is seen on the storefront door of a store in Manhattan, New York, U.S., April 30, 2018. REUTERS/Shannon Stapleton

(Reuters) – T-Mobile US Inc (TMUS.O) added more monthly bill paying phone subscribers than expected in the first quarter, thanks to cheaper plans compared to its rivals and a surge in demand for phone services as people work from home amid lockdowns.

However, the telecom operator declined to give a full-year outlook due to uncertainty over the impact of the COVID-19 pandemic.

It added 452,000 net new monthly paying phone subscribers in the first quarter, above analysts’ estimates of 426,000 from research firm FactSet.

The company posted a marginal rise in revenue to $11.1 billion from a year earlier, but misses expectations of $11.38 billion.

T-Mobile had closed 80% of its stores to comply with the lockdown. However, an increase in service revenue offset

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Lyft sees rider demand rebound in late April, ‘on path to profitability’

(Reuters) – Lyft Inc (LYFT.O) on Wednesday surprised investors with higher-than-expected revenue and the ride-hailing company vowed further cost cuts to become profitable as the U.S. coronavirus lockdown batters the economy.

FILE PHOTO: A Lyft driver wears a mask during the coronavirus outbreak, as he leaves passengers in the U.S. Capitol Hill neighborhood in Washington, U.S. April 1, 2020. REUTERS/Jonathan Ernst

Shares in Lyft rose over 18% in after-hours trading. Shares of larger rival Uber Technologies Inc (UBER.N) were up 9%.

The first-quarter results offer a first look at the impact of strict stay-at-home orders to combat the spread of the virus in many of the ride-hailing industry’s largest markets.

Lyft’s earnings also serve as an indicator for the performance of Uber, which will report results on Thursday.

The company did not say whether it stuck to its goal of being profitable on an adjusted basis

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