- The Telegraph
- Posts
- EasyJet Defends Add-On Charges Amid Record Revenue.
EasyJet Defends Add-On Charges Amid Record Revenue.
PLUS: Despite a €29 million fine from Spain, EasyJet's ancillary revenue surges 22%, helping drive a 34% rise in annual profit.
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What you’ll read?
OpenAI Employees Gain $1.5 Billion Share Sell Option.
Fed Eyes Gradual Rate Cuts Amid Easing Inflation.
Today in AI & Tech
Thanksgiving Box Office Set for Record Revival Post-Pandem.
and more…
BUSINESS
Shares of GM and Stellantis fell sharply after President-elect Trump announced plans to impose 25% tariffs on U.S. imports from Mexico and Canada, potentially disrupting the auto industry’s low-cost production model. Analysts view the move as a negotiation tactic, but tariffs could significantly impact automakers like GM and Stellantis, which rely on Mexican plants for high-profit vehicles.
OpenAI Employees Gain $1.5 Billion Share Sell Option.
OpenAI is offering employees a $1.5 billion tender to sell shares to SoftBank at $210 per unit. The deal, driven by SoftBank CEO Masayoshi Son, allows employees to cash out while reducing IPO pressure. SoftBank, eager to expand its AI footprint, adds to its $500 million investment in OpenAI’s last funding round.
Databricks Secures Major Funding, Easing IPO Pressure.
Databricks, one of the most valuable private tech companies, is raising $5–$8 billion in a funding round valuing it at $55 billion, potentially surpassing OpenAI's record $6.6 billion raise this year. The funding allows employees to sell shares, reducing urgency for an IPO, which could occur mid-2025. Known for its AI-driven data software, Databricks recently acquired MosaicML and projects $2.4 billion in annual revenue by mid-2024.
Fed Eyes Gradual Rate Cuts Amid Easing Inflation.
Federal Reserve officials are optimistic about easing inflation and a stable labor market, allowing for gradual rate cuts. Minutes from the November meeting revealed confidence in inflation nearing the 2% target and a resilient job market, though uncertainties persist about the neutral interest rate and economic impacts of fiscal policies.
EasyJet Sees Record Add-On Revenue Despite Spanish Fine.
EasyJet reported record ancillary revenue of £3.59 billion ($4.5 billion) for the year ending October, driven by add-ons like baggage fees and seat selection, a 22% year-on-year rise. CEO Johan Lundgren criticized Spain's €29 million fine over "abusive practices," arguing such charges keep base fares low. Despite challenges, easyJet posted a £610 million profit, up 34%, citing strong summer demand and resilient consumer travel priorities.
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TECH
Today in AI & Tech
UK Launches AI Security Lab to Combat Emerging Threats.
The UK is establishing the Laboratory for AI Security Research (LASR) with an initial funding of £8.22 million to safeguard against AI-driven national security threats. The lab, involving experts from industry, government, and academia, aims to bolster cyber defense capabilities and counter state-backed cyber activities, particularly from Russia and North Korea. The initiative, part of a broader strategy to strengthen cybersecurity, will focus on collaboration with NATO allies and Five Eyes countries.
UK Consumers Push for Sustainability in Generative AI.
A survey by CloudNine PR reveals that 83% of UK adults are aware of generative AI, with 45% of those familiar with it urging companies to disclose the environmental costs of the technology. Generative AI is energy-intensive, with data centres consuming large amounts of electricity to run AI models. The growing demand for these technologies has sparked concerns about sustainability, with some consumers willing to pay a premium for more energy-efficient products. Policymakers and companies are responding by pushing for more transparency and adopting greener practices to reduce AI’s carbon footprint.
Reddit Targets International Growth, Focusing on India and Brazil for Expansion.
Reddit is ramping up efforts to grow its international user base, focusing on countries like India and Brazil to unlock new advertising opportunities, said COO Jen Wong. While about half of Reddit's users are already international, the company sees significant growth potential in non-U.S. markets, with India being a key area due to its large English-speaking internet population. Reddit is also working to enhance its platform's accessibility with AI-powered language translations and new search tools to help users navigate content more efficiently.
Other
Thanksgiving Box Office Set for Record Revival Post-Pandemic.
The Thanksgiving box office is primed for its best performance since 2019, led by Disney’s Moana 2, Universal’s Wicked, and Paramount’s Gladiator II. Analysts project a haul exceeding $200 million for the five-day holiday, potentially making it one of the highest-grossing Thanksgiving periods ever. Disney hopes to reclaim its animation dominance with Moana 2, which is expected to surpass recent post-pandemic releases and capitalize on its strong streaming legacy.
Nordstrom Beats Sales Forecasts but Remains Cautious for Holiday.
Nordstrom exceeded Wall Street’s quarterly sales estimates with 4% year-over-year growth driven by clothing, shoes, and activewear sales. The retailer raised its full-year sales forecast slightly, projecting flat to 1% growth, but maintained a conservative outlook due to slowing trends in late October. Digital sales grew 6.4%, and its off-price chain, Nordstrom Rack, contributed significantly to overall growth.
Amgen's Weight Loss Drug Shows Promise but Faces Lofty Expectations.
Amgen’s experimental weight-loss injection, MariTide, helped patients shed up to 20% of their weight after a year, with potential for further loss, according to mid-stage trial results. While promising, Wall Street viewed the results as falling short of expectations compared to rivals like Novo Nordisk and Eli Lilly. Amgen plans to refine dosing strategies in late-stage trials, aiming for a competitive edge with less frequent injections and a unique molecular design.
Abercrombie & Fitch Delivers Strong Holiday Guidance Despite Challenges.
Abercrombie & Fitch posted its sixth consecutive quarter of double-digit sales growth, with Q3 revenue of $1.21 billion exceeding expectations. The company raised its full-year sales growth outlook to 14-15% and reported strong holiday momentum, despite freight costs and tough comparisons to last year’s exceptional performance. Hollister’s 14% growth highlighted its appeal to Gen Z, as Abercrombie expanded globally and explored new categories like weddings and NFL partnerships.
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