Verizon posts higher subscriber loss on price hikes, competition
(Reuters) -Verizon Communications lost more wireless subscribers in the first quarter than Wall Street expected, as the U.S. telecom giant grappled with the fallout of recent price hikes and aggressive promotions from rivals.
The company warned in March that off-season promotions by AT&T and T-Mobile would result in "soft" subscriber growth, fueling fears about intensifying competition in an industry vying for a limited pool of new subscribers.
It also raised monthly prices for its customizable myPlan accounts with five lines or more by $3 per line, while customers on the New Verizon Plan faced a $4 per line increase for single mobile lines.
That led to a higher churn, percentage of customers exiting a service, with Verizon reporting a loss of 289,000 monthly bill-paying wireless subscribers in the first quarter, after it added a record 568,000 customers in the December quarter.
Analysts had expected the company to lose 166,400 subscribers, according to FactSet data.
The company introduced a three-year price guarantee in early April to lock in customers for its myPlan and myHome offerings.
It also reaffirmed its annual adjusted profit and free cash flow outlook, a sign it was confident in its business plans amid economic uncertainty.
In the first quarter, total revenue grew 1.5% to $33.5 billion, edging past analysts' estimates of $33.24 billion, according to data compiled by LSEG.
Wireless service revenue grew 2.7% to $20.8 billion, helped by the price hikes implemented by the company.
Verizon's consumer business added 137,000 wireless retail core prepaid customers, compared to 131,000 net losses a year ago, marking its best net additions since the acquisition of TracFone.
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Trump tariffs live updates: US and China resume trade talks, White House seeking 'handshake' on rare earths
The US and China restarted trade talks in London on Monday, aiming to ease tensions over rare earths and tech after President Trump and his China's leader Xi Jinping spoke last week. "The purpose of the meeting today is to make sure that they're serious, [and] to literally get handshakes," Hassett, director of the National Economic Council, told CNBC. "I expect it to be a short meeting with a big, strong handshake and we'll see." Trump's call with Xi, which both leaders framed as positive, came after weeks of Trump publicly pushing for a direct call. US-China tensions have risen in the aftermath of the countries' trade truce reached in mid-May in Geneva, with both countries have accused the other of breaching that truce while ratcheting up pressure on other issues. The US and China are also now using their control over certain key materials to gain control in the trade war. 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New tariffs are coming into play: Effective Wednesday, June 4, Trump doubled tariffs on steel and aluminum from 25% to 50% Meanwhile, Trump's most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them "unlawful." Here are the latest updates as the policy reverberates around the world. The US is keen to strike a firm deal with China on rare earths exports as both sides resume talks in London today. Reuters reports: Read more here. Global auto companies are hoping that trade talks between the US and China on Monday could help fast track rare earth exports from China, which are desperately needed. Reuters reports: Read more here. 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That truce has come under strain in recent weeks over various trade and other thorny issues, including China's curbs on rare earth mineral exports and US chip curbs. Bet you were wondering how long we could go before mentioning Elon Musk's feud with President Trump in this blog (lots more on that here, here, and here). Yes, the remarkable back and forth included Trump threatening Musk's government contracts — and Musk seeming to agree with a call to impeach Trump, while also throwing in an "Epstein files" mention. But as Yahoo Finance's Ben Werschkul details, Musk is now going to war with many of the biggest pillars of Trump's agenda. There was a tariff mention as part of that. Specifically, Musk not only criticized the tariffs — he's now on record saying he thinks they will cause a recession this year. As Ben writes: Read more here. 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Outbound shipments of rare earths in May from China rose 23% on the month to their highest in a year, despite Beijing's export curbs on some of the critical minerals prevented some overseas sales, with shortages impacting global manufacturing. Bloomberg News reports: Read more here. Chinese exports rose less than expected last month, held back by the biggest drop in shipments to the US in over five years, despite strong demand from other markets. Bloomberg News reports: Read more here. The US and China will restart trade talks in London on Monday after President Trump and Xi spoke last week. The two sides have accused each other of breaking a May deal in Geneva to pause tariff hikes above 100%. Trump, after agreeing with Xi to resume critical mineral flows, said he expects the talks to go "very well." 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The recent Trump-Xi call brought hope if lower tariffs, but investor confidence remains cautious. As of today, the US has only secured one new trade deal — with the UK. A startup that assembles one of its smartphones entirely in the US says it's possible for a company like Apple to do the same and not incur prohibitive costs, but it's not easy and would take several years of focused effort, Fortune reports: At least one expert in the UK believes Prime Minister Keir Starmer may have unrealistic expectations about a trade deal with President Donald Trump and the US, Bloomberg reports: Read more here President Donald Trump has come up short on striking trade deals with most nations with just one month left before his self-imposed tariff deadline, even as he took his first steps in weeks toward engaging with China. Trump secured a much-desired call with Chinese President Xi Jinping, paving the way for a new round of talks on Monday in London — yet the diplomacy was overshadowed by a blowout public fight between Trump and his billionaire onetime ally, Elon Musk. Trump's aides insisted Friday that the president was moving on and focused on his economic agenda. Still, question marks remain over the US's most consequential trade relationships, with few tangible signs of progress toward interim agreements. Read more here Bloomberg reports: Read more here. President Trump said a new round of trade talks between the US and China would start Monday, a day after he spoke with Chinese leader Xi Jinping. Trump said Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer would lead talks for the US. "The meeting should go very well," Trump predicted. Bessent led the last round of talks in Geneva, which led to a tariff truce that sent markets soaring. 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Trade talks between the US and India were set to wrap up this Friday, but now they are being extended into next week as officials on both sides aim to work out an interim deal before a July 9 deadline. Indian government sources said the discussions, which have focused on tariff cuts in the farming and auto sectors, will continue next Monday and Tuesday. President Trump and Indian Prime Minister Narendra Modi are looking to double trade by 2030 and cement a trade pact by fall 2025. Reuters reports: Read more here. US and Chinese officials exchanged jabs at an event held by the American Chamber of Commerce (AmCham) in Shanghai on Friday, as the chamber appealed for more clarity for American businesses operating in China. Reuters reports: Read more here. India's Tata Steel has warned that it might be excluded from tariff-free access to the US under the UK's trade agreement with the Trump administration. This exclusion risks putting more than $180M worth of annual exports at risk. 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According to a survey conducted by the American Chamber of Commerce in China, most US firms with operations in china are not budging. The survey revealed that some US don't want to leave the country and in fact would ramp up production in China, despite the the challenges posed by tariffs. Bloomberg News reports: Read more here. We know what President Trump wants in trade discussions with China. But what does China's Xi Jinping want? Bloomberg News reports Read more here. Both the US and China are using their control over key materials in a deepening trade war standoff. On Friday, Bloomberg reported that Washington is restricting ethane shipments, a gas China heavily relies on for plastics production. This follows Washingtons block on chip exports to China. 'Ethane is no longer just a byproduct of shale — it's now a geopolitical weapon,' said Julian Renton, lead analyst covering natural gas liquids at East Daley Analytics. 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Iran to present counter-proposal to US in nuclear talks
DUBAI (Reuters) -Iran will soon hand a counter-proposal for a nuclear deal to the United States via Oman, Iranian foreign ministry spokesperson Esmaeil Baghaei said on Monday, in response to a U.S. offer that Tehran deems "unacceptable". The spokesperson also called on the international community to force nuclear disarmament upon Israel, Iran's longstanding foe which Tehran says is trying to thwart the nuclear negotiations. "The U.S. proposal is not acceptable to us. It was not the result of previous rounds of negotiations. We will present our own proposal to the other side via Oman after it is finalised. This proposal is reasonable, logical, and balanced," Baghaei said. "We must ensure before the lifting of sanctions that Iran will effectively benefit economically and that its banking and trade relations with other countries will return to normal." Reuters previously reported that Tehran was drafting a negative response to the U.S. proposal which was presented in late May. An Iranian diplomat said the U.S. offer failed to resolve differences over uranium enrichment on Iranian soil, the shipment abroad of Iran's entire stockpile of highly enriched uranium and reliable steps to lift U.S. sanctions. Baghaei said there was not yet any detail on the timing of a sixth round of nuclear talks between Tehran and Washington. Last week, Supreme Leader Ayatollah Ali Khamenei dismissed the U.S. proposal as against Iran's interests, pledging to continue enrichment on Iranian soil, which Western powers view as a potential pathway to building nuclear weapons. Iran says its nuclear programme is only for peaceful purposes. During his first term in 2018, U.S. President Donald Trump ditched a 2015 nuclear pact between Iran and six powers and reimposed sanctions that have crippled Iran's economy. Iran responded by escalating enrichment far beyond that pact's limits. Iran says the West has turned a blind eye to Israel's nuclear programme even while pushing against Iran's. Israel neither confirms nor denies that it has nuclear weapons. Baghaei said sensitive Israeli documents, which Iran has previously promised to unveil, would demonstrate "that parties constantly questioning Iran's peaceful nuclear programme actively work to strengthen Israel's military nuclear programme". The negotiating parties should not allow Israel to disrupt diplomatic processes, he added.
