Small-caps 'compelling' as stagflation risks rise, says wealth advisor
The stocks of smaller companies are attractive for a number of reasons including their lower prices, says Eric Diton, president and managing director of The Wealth Alliance.
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BBC News
33 minutes ago
- BBC News
Government puts £426m to manufacturing at Sheffield Forgemasters
The government has pledged £426m of investment towards works at a Sheffield steel producer in a move it said would protect 700 skilled Ministry of Defence (MoD) bought Sheffield Forgemasters in 2021 and will use the site, near Meadowhall, to support manufacturing for defence this year, plans to build a new plant at the facility, which will be operational by 2028, were approved. On Tuesday, the government announced it would plough extra funding into the site in a move it claimed would also create 900 construction jobs. Defence Secretary John Healey said the investment was important at a time when "global threats are rising". Healey said: "We recognise we need to invest in our defence and Armed Forces. But a country's military is only as strong as the country standing behind it. "Forgemasters is a shining example of what we have in the UK, of innovation and traditional industry, and it demonstrates how defence is an engine for growth in jobs and investment right across the country."Forgemasters, which dates back about 250 years, is one of Sheffield's oldest industrial planning permission for the new facility was granted in February, Forgemasters programme director Craig Fisher said the development would "create highly-skilled engineering jobs for decades to come"."This planning agreement will see construction of the largest machining hall of its kind in the UK, and regeneration of a prominent brownfield site in the city's industrial centre," he said. Listen to highlights from South Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
Telegraph
40 minutes ago
- Telegraph
Apple's AI event falls flat as iPhone maker struggles
Apple's flagship annual showcase has fallen flat as the iPhone maker fails to allay concerns that it is falling behind on artificial intelligence. The American tech giant was struck by a sell-off on Monday evening after it became apparent that its keynote presentation, led by chief executive Tim Cook, would only include minor software upgrades. Investors sent the stock price down by as much as 1.9pc during the presentation, wiping as much as $65.3bn (£48bn) off its market capitalisation. It comes amid growing frustration over Apple's failure to keep up with rivals on cutting-edge artificial intelligence (AI) developments. Last month, Apple's former chief designer Sir Jony Ive seemingly took aim at the company, hitting out at the 'legacy' products on the market and the 'decades old' technology within them. Sir Jony was speaking as he announced he was joining artificial intelligence rival OpenAI, in a $6.5bn (£4.8bn) deal expected to create a new generation of devices that could challenge the iPhone On Monday night, Apple put great emphasis on a range of visual improvements it is making to all of its operating systems. It said iPads would now be able work like traditional Mac computers, with apps able to run in windows. However, Daniel Ives, an analyst at Wedbush Securities, said the event was 'overall a yawner' and that investors' patience was 'wearing thin'. It follows years of setbacks for Apple as it battles to compete on artificial intelligence. While it was one of the first Silicon Valley companies to embrace AI with its voice assistant Siri, rivals have since rapidly overtaken its technology. Last month, Mr Cook admitted on an earnings call that 'we need more time to complete our work on [improved Siri] features so they meet our high-quality bar'. On Monday, Apple failed to announce any major AI updates for Siri. Reports have suggested that progress has been hampered by complications updating Siri using large language models. The most notable AI announcement at the annual showcase was that it would give software developers access to the AI technology that is built into recent Apple devices. Craig Federighi, Apple's software chief, said: 'We think this will ignite a whole new wave of intelligent experiences in the apps users rely on every day. We can't wait to see what developers create.' The company introduced a live translation feature to phone calls. Customers will be able to speak in England to a French person and then hear their words read out in French. Apple said it would also have a call screening feature that will work like a personal assistant, automatically answering calls from unknown people and asking them for information so that a customer can decide whether to take the call. Thomas Monteiro, an analyst at said: 'In a moment in which the market questions Apple's ability to take any sort of lead in the AI space, the announced features felt incremental at best.'
Reuters
an hour ago
- Reuters
Breakingviews - TV-burdened WBD will struggle to cut the cord
NEW YORK, June 5 (Reuters Breakingviews) - David Zaslav's fleece vest provides limited protection from the chilling effect of his corporate balance sheet. The Warner Bros Discovery (WBD.O), opens new tab boss is trying to eject the collapsing traditional TV business, but $34 billion of mostly merger-related net debt complicates the plan. The time to split was yesterday. WBD, a $24 billion media conglomerate spanning CNN to Looney Tunes, flagged the possibility of a breakup last year when it restructured into two operating divisions: one that houses cable networks such as Discovery and another for its HBO streaming service and Warner Bros. movie studio. The step laid the groundwork to follow a similar path as cable operator Comcast (CMCSA.O), opens new tab, where CEO Brian Roberts outlined plans to move some TV assets into a standalone company. Financial engineering prospects keep getting tougher by the day. S&P Global, alarmed by the relentless decline in broadcasting and its drag on other businesses, downgraded, opens new tab WBD's credit rating to junk status. The company's stock price also has plummeted from a peak of about $77 a share in March 2021 to around $10. Zaslav is confronted with a conundrum. The spinoff cannot be sent packing with too much more debt than equity, which would tempt friction with bondholders. At 5 times estimated 2026 EBITDA of $5.5 billion, according to Visible Alpha, and if general expenses are evenly divided, the TV enterprise would be independently worth $28 billion. With 60% debt, the same proportion as now, it would be carrying $14 billion. On that basis, WBD's remaining $20 billion of net borrowing stays with streaming and the studio. Assume that business is valued at half of where Netflix (NFLX.O), opens new tab trades, or 16 times next year's EBITDA, and the assets are worth $56 billion. On paper at least, the math suggests WBD's equity would be worth twice as much as today once cleaved in two. And yet in that scenario, the HBO side also gets stuck with debt equivalent to 5 times its $3.5 billion in projected 2026 EBITDA. That amount of leverage – 30% higher than at the parent now – would potentially impede its ability to compete effectively by hamstringing investment in new programs and technology. These discouraging figures increase the chances of both companies getting frosty receptions from investors. Zaslav may want to warm up to the idea of selling the TV business instead. Follow Jennifer Saba on Bluesky, opens new tab and LinkedIn, opens new tab.
