FT News Briefing SME’s lose big, UK GDP woes, remembering Sumner Redstone
Aug 13, 2020
Small and medium-sized businesses in the US faced massive profit declines due to the pandemic. Lyft reported a staggering 61% revenue drop but is cautiously hopeful about recovery. Cisco anticipates greater sales declines, raising concerns about IT spending. Meanwhile, the UK grapples with severe economic downturns, suffering the worst slump in Europe. The conversation also honors Sumner Redstone, reflecting on his powerful legacy and influence in the media industry, contrasting his bold leadership style with today's more subdued approaches.
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Lyft's Revenue Drop
- Lyft's Q2 revenue dropped 61% due to pandemic's impact on ride-sharing.
- Unlike Uber, Lyft lacks alternative services to offset losses.
Cisco's Sales Warning
- Cisco predicts further sales decline, impacting after-hours trading.
- This warning signals a potential broader IT spending slowdown.
Small Businesses Struggle
- Small and medium-sized companies (Russell 2000) faced profit wipeouts in Q2 2020.
- This contrasts with larger companies (S&P 500) that experienced a smaller earnings drop.