BofA lifts STOXX 600 annual target to 530 points
European equities remain close to all-time highs despite the global trade war and escalating tensions in the Israel-Iran conflict, the Wall Street brokerage said.
"The main reason for the resilience, is that these events (Israel-Iran conflict, trade war) have not yet translated into a clear-cut weakening in global growth," BofA said, maintaining its "negative" stance on the region's equities.
The brokerage's current target for the pan-European benchmark index still implies a nearly 1.1% downside to its Thursday close of 535.86.
While a trade deal between the U.S. and China as well as a benign May U.S. inflation report have brought some relief to financial markets, pressures from tariffs and escalating tensions in the Middle East are expected to weigh on global economic growth.
BofA upgraded the European mining sector to "overweight" from "marketweight", citing attractive valuations after significant underperformance, with support from a weaker dollar.
The brokerage downgraded airlines to "underweight" from "marketweight", on potential risks from higher oil prices if Middle East tensions escalate.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29 minutes ago
- Yahoo
US airlines' shares jump as airfare data signals improving pricing power
(Reuters) -Shares of major U.S. carriers jumped on Tuesday after upbeat airfare data for July signaled improving pricing power for the industry, as airlines bring capacity in check to align with a soft demand environment. Shares of legacy carriers United Airlines, American Airlines and Delta Air Lines jumped nearly 10% each, while budget rival Southwest Airlines gained 4% in afternoon trading. Smaller peers Alaska Air and JetBlue Airways rose about 10% each and low-cost carrier Frontier Group surged 22%. Data from the Labor Department's Bureau of Labor Statistics on Tuesday showed airfares rose 4% in July after slipping 0.1% in June, marking their first increase in six months. Uncertainty stemming from President Donald Trump's sweeping tariffs and budget cuts has prompted travelers to curb discretionary spending and reassess plans. A soft demand environment, particularly from budget-conscious domestic travelers, had forced carriers to discount fares, squeezing margins despite summer typically being their peak money-making season. Airlines have since been trimming seats on offer and readjusting routes to keep their pricing power in control and shield margins. During their second-quarter earnings calls in July, major executives expressed confidence in the industry's ability to cut capacity and boost airfares in the latter part of the year.
Los Angeles Times
30 minutes ago
- Los Angeles Times
Delivery drones may soon take off in the US. Here's why
Delivery drones are so fast they can zip a pint of ice cream to a customer's driveway before it melts. Yet the long-promised technology has been slow to take off in the United States. More than six years after the Federal Aviation Administration approved commercial home deliveries with drones, the service mostly has been confined to a few suburbs and rural areas. That could soon change. The FAA proposed a new rule last week that would make it easier for companies to fly drones outside of an operator's line of sight and therefore over longer distances. A handful of companies do that now, but they had to obtain waivers and certification as an air carrier to deliver packages. While the rule is intended to streamline the process, authorized retailers and drone companies that have tested fulfilling orders from the sky say they plan to make drone-based deliveries available to millions more U.S. households. Walmart and Wing, a drone company owned by Google parent Alphabet, currently provide deliveries from 18 Walmart stores in the Dallas area. By next summer, they expect to expand to 100 Walmart stores in Atlanta; Charlotte, North Carolina; Houston; and Orlando and Tampa, Florida. After launching its Prime Air delivery service in College Station, Texas, in late 2022, Amazon received FAA permission last year to operate autonomous drones that fly beyond a pilot's line of sight. The e-commerce company has since expand its drone delivery program to suburban Phoenix and has plans to offer the service in Dallas, San Antonio, Texas, and Kansas City. The concept of drone delivery has been around for well over a decade. Drone maker Zipline, which works with Walmart in Arkansas and the Dallas-Fort Worth area, began making deliveries to hospitals in Rwanda in 2016. Israel-based Flytrex, one of the drone companies DoorDash works with to carry out orders, launched drone delivery to households in Iceland in 2017. But Wing CEO Adam Woodworth said drone delivery has been in 'treading water mode' in the U.S. for years, with service providers afraid to scale up because the regulatory framework wasn't in place. 'You want to be at the right moment where there's an overlap between the customer demand, the partner demand, the technical readiness and the regulatory readiness,' Woodworth said. 'I think that we're reaching that planetary alignment right now.' DoorDash, which works with both Wing and Flytrex, tested drone drop-offs in rural Virginia and greater Dallas before announcing an expansion into Charlotte. Getting takeout food this way may sound futuristic, but it's starting to feel normal in suburban Brisbane, Australia, where DoorDash has employed delivery drones for several years, said Harrison Shih, who leads the company's drone program. 'It comes so fast and it's something flying into your neighborhood, but it really does seem like part of everyday life,' Shih said. Even though delivery drones are still considered novel, the cargo they carry can be pretty mundane. Walmart said the top items from the more than 150,000 drone deliveries the nation's largest retailer has completed since 2021 include ice cream, eggs and Reese's Peanut Butter Cups. Unlike traditional delivery, where one driver may have a truck full of packages, drones generally deliver one small order at a time. Wing's drones can carry packages weighing up to 2.5 pounds. They can travel up to 12 miles round trip. One pilot can oversee up to 32 drones. Zipline has a drone that can carry up to 4 pounds and fly 120 miles round trip. Some drones, like Amazon's, can carry heavier packages. Once an order is placed, it's packaged for flight and attached to a drone at a launch site. The drone automatically finds a route that avoids obstacles. A pilot observes as the aircraft flies to its destinations and lowers its cargo to the ground with retractable cords. Shakiba Enayati, an assistant professor of supply chain and analytics at the University of Missouri, St. Louis, researches ways that drones could speed the delivery of critical health supplies like donated organs and blood samples. The unmanned aircraft offer some advantages as a transport method, such as reduced emissions and improved access to goods for rural residents, Enayati said. But she also sees plenty of obstacles. Right now, it costs around $13.50 per delivery to carry a package by drone versus $2 for a traditional vehicle, Enayati said. Drones need well-trained employees to oversee them and can have a hard time in certain weather. Drones also can have mid-air collisions or tumble from the sky. But people have accepted the risk of road accidents because they know the advantages of driving, Enayati said. She thinks the same thing could happen with drones, especially as improved technology reduces the chance for errors. Woodworth added that U.S. airspace is tightly controlled, and companies need to demonstrate to the FAA that their drones are safe and reliable before they are cleared to fly. Even under the proposed new rules, the FAA would set detailed requirements for drone operators. 'That's why it takes so long to build a business in the space. But I think it leads to everybody fundamentally building higher quality things,' Woodworth said. Others worry that drones may potentially replace human delivery drivers. Shih thinks that's unlikely. One of DoorDash's most popular items is 24-packs of water, Shih said, which aren't realistic for existing drones to ferry. 'I believe that drone delivery can be fairly ubiquitous and can cover a lot of things. We just don't think its probable today that it'll carry a 40-pound bag of dog food to you,' Shih said. DoorDash said that in the areas where it offers drone deliveries, orders requiring the services of human delivery drivers also increase. That's been the experience of John Kim, the owner of PurePoke restaurant in Frisco, Texas. Kim signed on to offer drone deliveries through DoorDash last year. He doesn't know what percentage of his DoorDash customers are choosing the service instead of regular delivery, but his overall DoorDash orders are up 15% this year. Kim said he's heard no complaints from drone delivery customers. 'It's very stable, maybe even better than some of the drivers that toss it in the back with all the other orders,' Kim said. For some, drones can simply be a nuisance. When the FAA asked for public comments on Amazon's request to expand deliveries in College Station, numerous residents expressed concern that drones with cameras violated their privacy. Amazon says its drones use cameras and sensors to navigate and avoid obstacles but may record overhead videos of people while completing a delivery. Other residents complained about noise. 'It sounds like a giant nagging mosquito,' one respondent wrote. Amazon has since released a quieter drone. But others love the service. Janet Toth of Frisco, Texas, said she saw drone deliveries in Korea years ago and wondered why the U.S. didn't have them. So she was thrilled when DoorDash began providing drone delivery in her neighborhood. Toth now orders drone delivery a few times a month. Her 9-year-old daughter Julep said friends often come over to watch the drone. 'I love to go outside, wave at the drone, say 'Thank you' and get the food,' Julep Toth said. Durbin writes for the Associated Press.
Condé Nast Traveler
30 minutes ago
- Condé Nast Traveler
Inside the Leather Workshops of Andalusia
Menacho opened his workshop in the whitewashed village of Castilblanco de los Arroyos, a 45-minute drive north of Seville, a decade ago—but had never planned to work with leather. A keen equestrian, he wanted to become a riding instructor but failed the entrance exam. 'The following week they called me to see if I wanted to join the saddlery course instead,' he says. 'I said yes because I'd always enjoyed working with my hands. I learned cutting and stitching, how to differentiate between leather types, and how to make basic riding bags,' he says. It was through making saddles, tack, and other equestrian items, that he acquired the techniques that would make him a leading leathermaker in Spain—and across the fashion world. But the craft, and the ancient artisanal methods he follows, holds a deep significance for Menacho. Leatherwork in Andalusia dates back as far as the Islamic period, when cities like Córdoba became hubs for the trade. 'For me, it's a way of life and a symbol of identity,' he says. This history, and the region's deep connection with horses—as seen through its rich culture of agriculture and equestrianism—has led generations of Sevillian leather workers to hone and evolve the craft. Sacred art related to Seville's Semana Santa Easter festivities is at the root of many artisans' designs, while others are inspired by the city's rich mix of Moorish, Gothic, Mudejar, Renaissance and Baroque architecture. But artisanal work is hard work, and a number of craftspeople are beginning to rely more on machinery than the traditional methods to create their products. Younger generations, meanwhile, are moving away from the professions of their parents to embark on more modern careers. Both are developments that Menacho and many of his peers worry will not only dilute the quality of the product, but this intrinsic part of Andalusian life more deeply, too. 'The work of an artisan is culture, art, and history, but it can also be the future,' he says. 'I try to show people the real value of artisanal work so that we don't lose it.' Menacho, whose workshop is almost entirely free of machinery, does 90% of his work by hand Cristina Gómez Ruiz Techniques done by hand by artisans like Menacho distinguish, in their book, their work from industrial product Cristina Gómez Ruiz Menacho's own leather craft involves chiseling and scoring, die-cutting and stitching, embossing and gilding. He treats his leathers the traditional way with vegetable dyes in oak barrels, a process that can take between six and twelve months. His workshop is practically free of machinery, and 90% of the work he does is by hand, often using techniques that date back centuries, something that Menacho feels distinguishes an artisanal product from something industrial. 'The old, traditional methods are the ones that really work. Some of them date back 500 or 800 years. They're based on time, rhythm, and knowledge of materials,' he says.
