FirstRand May Revise Provision After UK Car-Loans Ruling
Britain's Financial Conduct Authority said Sunday it will consult on a redress scheme for the missold loans, which could potentially cost lenders over £9 billion ($12 billion), after the UK Supreme Court overturned most of a lower court ruling and found that dealers can act in their own interests and generally don't need informed consent to charge commission.
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Rachel Reeves under pressure to ‘urgently rule out' tax hikes
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South Africa's most important city is now in the hot seat. Johannesburg is under fire after the National Treasury flagged 24.4 billion rand ($1.4 billion) in irregular, unauthorized, and wasteful spending. In a formal letter dated July 30, Finance Minister Enoch Godongwana gave Mayor Dada Morero just 14 days to explain how the city plans to fix the messor risk losing critical national funding. That funding accounts for about 15% of Johannesburg's 89 billion rand annual budget, and without it, even the most basic services could be pushed past the breaking point. Warning! GuruFocus has detected 9 Warning Signs with GS. This isn't just another bureaucratic disputeit's a direct threat to investor confidence in the city that houses the continent's largest stock exchange and the headquarters of major corporations like Tesla (NASDAQ:TSLA). Internal documents reviewed by Bloomberg revealed Johannesburg is over 221 billion rand behind on much-needed infrastructure upgrades. Roads are crumbling, outages are frequent, and crime remains high. While Mayor Morero recently assembled a "bomb squad" of former officials to improve service delivery, critics argue that past financial mismanagement has already left deep scars. The Democratic Alliance, the main opposition party, called this the gravest financial threat in Johannesburg's democratic history. The stakes go beyond local politics. If Treasury follows through and pulls back funding, it could trigger a broader credibility crisis for South Africa's ruling coalitionjust months before Johannesburg is set to host world leaders at a major global summit. For investors watching from abroad, this situation introduces a new variable into the risk calculus for South African assets. Treasury's letter makes it clear: without urgent action, Johannesburg could become a cautionary tale about fiscal negligence in one of Africa's most promising markets. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Pearson PLC (PSO) (H1 2025) Earnings Call Highlights: Strategic Partnerships and AI Innovations ...
Release Date: August 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Pearson PLC (NYSE:PSO) reported a 2% increase in sales and adjusted operating profit for the first half of 2025, aligning with their February guidance. The company is making significant progress in strategic partnerships, including new relationships with Google Cloud, Microsoft, and AWS, which are expected to drive revenue growth. Pearson PLC (NYSE:PSO) is expanding its enterprise learning and skills segment, with new contract wins from HCL Tech and Google Cloud, indicating strong growth potential. The acquisition of e-dynamic Learning is expected to support Pearson's medium-term growth strategy, with the business having strong margins and a track record of good growth. AI-driven innovations are enhancing Pearson's product offerings, improving learning outcomes, and generating cost efficiencies across the business. Negative Points Pearson PLC (NYSE:PSO) faces near-term pressure from hiring freezes affecting its PDRI segment, which could impact future opportunities. The English language learning segment saw a 3% decline, with the Pearson Test of English expected to decline in the second half of the year. Higher education enrollments are expected to remain flat, requiring growth from other factors such as inclusive access and pricing. The company is experiencing FX headwinds, which have impacted adjusted earnings per share, despite positive underlying trading performance. The integration of e-dynamic Learning may incur near-term costs and deferred revenue impacts, potentially affecting 2025 group guidance. Q & A Highlights Warning! GuruFocus has detected 9 Warning Signs with FRA:CIG. Q: Are the new contracts, such as those with ServiceNow and Salesforce, performing in line with expectations, and what is the growth outlook for 2026? A: Omar Abbosh, CEO: While we are not providing specific guidance for 2026, the contracts with ServiceNow, Salesforce, and others are performing as expected. Arthur Valentine added that the launch efforts and expected volumes are in line with expectations and reflected in the guidance provided. Q: Can you provide more details on how technology is driving cost efficiencies across Pearson? A: Sally Kate Johnson, CFO: AI is being used for content generation and translation, allowing faster market entry and cost savings. AI capabilities are also being integrated into services to improve customer experience and reduce costs. Q: What is driving the expected revenue growth in the second half of 2025? A: Sally Kate Johnson, CFO: The growth is driven by new and renewed contracts in assessments and qualifications, enrollment growth in virtual schools, and a strong performance in English language learning. The impact of previous school losses will no longer be a headwind. Q: Can you explain the recent acquisition of e-dynamic Learning and its expected impact? A: Omar Abbosh, CEO: E-dynamic Learning is a leader in career and technical education, providing content for middle and high school students. It will be integrated into the higher education segment and is expected to support medium-term growth with strong margins and cash flow. Q: How is Pearson addressing the decline in English Language Learning, particularly with PTE? A: Sharon, Head of English Language Learning: The second half of the year is expected to see growth driven by institutional business, particularly in Latin America, with a focus on government deals and share gains. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
