Burberry earns first buy rating from Citi in 17 years
For the first time in 17 years, Burberry Group Plc has received a buy rating from Citi, marking a significant shift in sentiment toward the British luxury brand.
Citigroup Inc. analyst Thomas Chauvet, who had maintained a neutral stance on the stock since the Global Financial Crisis, upgraded his recommendation to buy on Thursday. Chauvet stated that 'potential rewards now outweigh the risks,' a move that led Burberry shares to rise by as much as 4% in intraday trading.
Burberry's stock has struggled in recent years, falling roughly 70% from its peak two years ago. The decline reflects the brand's difficulty in repositioning itself further upmarket, alongside a broader slowdown in demand for luxury goods. The downturn also led to Burberry losing its position in the UK's FTSE 100 Index in 2023.
'Whilst patience is needed, potential rewards now outweigh the risks, considering the company's significant transformation potential over the next three years,' Chauvet wrote in a note to clients.
He pointed to the 'Burberry Forward' strategy launched by new chief executive officer Joshua Schulman, which aims to elevate the brand's global visibility and desirability. Chauvet suggested this strategic shift could drive a long-term revival.
Following a promising trading update in January, investors and analysts will seek further confirmation of progress when Burberry reports its next results on May 14.
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Euronews
7 hours ago
- Euronews
Trump departs G7 as Israel-Iran conflict shows signs of intensifying
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'The world's more divided and dangerous.' British Prime Minister Keir Starmer, French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni, and German Chancellor Friedrich Merz convened for an informal meeting lasting one hour shortly after their arrival at the summit late on Sunday. Merz, speaking to reporters at the summit, said his country is planning to draft a final communique proposal on the conflict, stressing that Iran must under no condition 'be allowed' to acquire nuclear weapons-capable material. Trump said Iran "is not winning this war. And they should talk and they should talk immediately before it's too late.' The US president was also asked on whether Washington will join Israel in its military operation in Iran, but Trump declined to comment on the matter. Donald Trump and British Prime Minister Keir Starmer announced on Monday that they have signed a trade deal which will slash tariffs on UK auto and aerospace industry imports. The new deal was announced on the sidelines of the summit. Trump and Starmer did however note that negotiations are still ongoing on the steel production sector. Trump insists that the deal with the UK is 'fair for both', adding that he expects it to produce a lot of jobs and income for both nations. Starmer took a similar tone to Trump as he addressed reporters saying the deal is a sign of strength and a 'very good day' for both countries. Reaching an agreement is significant as Trump has threatened much of the world with substantial import tariffs that have caused market instability and heightened the risk of a global trade war. Although he has backed off on several of his suggested tariffs, he has persisted in indicating that officials from his administration are vigorously engaged in negotiations for new trade agreements with numerous nations — despite the fact that very few have come to fruition. The agreement follows the leaders' announcement in May revealing that they'd reached a framework for a trade pact. This pact aims to significantly reduce US import taxes on British cars, steel, and aluminium in exchange for enhanced access to the British market for US goods, such as beef and ethanol. However, the agreement reached on Monday exclusively addresses British cars and aerospace materials, with further negotiations required for steel. London says the new deal would give British firms like Rolls Royce which produces engines for airplanes as well as high-end luxury vehicles a major boost, receiving an exemption from the 10% tariffs originally imposed. The US president also stirred controversy at the summit as he suggested that the G7 should expand to the G8, including Russia, or even the G9 with China. Trump expressed his preference for the organisation's expansion despite the fact that Russia and China are authoritarian regimes within a group whose members are democratic nations. Trump asserted that it was a 'very big mistake' to remove Russia in 2014 after it annexed Crimea, a move that preceded Russia's wider invasion of Ukraine in 2022. The comments added more complexity regarding Trump's interests as he is set to meet on Tuesday with Ukrainian President Volodymyr Zelenskyy about ending the brutal war started by the invasion. 'The G7 used to be the G8. Barack Obama and a person named Trudeau didn't want to have Russia in,' Trump said, referring to Justin Trudeau, who was elected prime minister a year after Russia's removal. Stephen Harper was the Canadian prime minister at the time. 'I think you wouldn't have a war right now if you had Russia in, and you wouldn't have a war right now if Trump were president four years ago,' Trump said. 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'Iran should have signed the 'deal' I told them to sign. What a shame, and waste of human life,' said Trump in a post on his own social media platform, Truth Social. 'Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!,' added Trump. Israel on Monday warned some 300,000 people in Tehran to evacuate ahead of airstrikes. Israeli forces then struck an Iranian state-run broadcaster during a live broadcast. It's the fifth day of conflict between Israel and Iran. Both countries have intensified their strikes on each other in recent days, with exchanges of missiles resulting in dozens of casualties between the two countries. The conflict started when Israel moved to strike multiple targets in Iran, including nuclear and military sites in a surprise attack in the early hours of Friday. The first wave of attacks also eliminated top Iranian officials, including the armed forces' chief of staff, Mohammed Bagheri, and head of Iran's paramilitary Revolutionary Guard Corp, Hossein Salami. Israel says the decision to attack Iran was 'pre-emptive self-defence', as it expressed concerns over Iran's rapidly advancing nuclear programme. Israel has repeatedly warned of the threat an Iran equipped with a nuclear weapon would pose on its very survival. Israeli Prime Minister Benjamin Netanyahu claimed Monday that the strikes have set Iran's nuclear program back 'years" and said he is in touch daily with Trump. In the early hours of Tuesday, Israeli air defence systems sounded for a short period of time as more Iranian strikes were anticipated. The Israeli army issued an air raid warning just after midnight local time for residents of Tel Aviv and the southern city of Beersheva. The alert was quickly dropped however, with the army confirming that residents are free to leave shelters and protective spaces nationwide. Iran's Foreign Minister and chief nuclear deal negotiator Abbas Araghchi says Israel's attacks on his country deal a huge blow to diplomacy. The comments were made during a call with his French, British and German counterparts. Iran signed a nuclear deal in 2015 with these three countries, along with the EU, US, China and Russia. Washington later unilaterally withdrew from the deal in 2018 under Trump's first term in office. Meanwhile, the US says it's deploying 'additional capabilities' to bolster its defences in the Middle East. The announcement was made by US Secretary of Defence Pete Hegseth in a post on social media platform X. 'Over the weekend, I directed the deployment of additional capabilities to the United States Central Command Area of Responsibility,' said Hegseth. 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France 24
9 hours ago
- France 24
G7 leaders urge Trump to ease off trade war
At a summit where host Canada hopes to avoid stoking Trump's anger, and with attention on events in the Middle East, leaders still urged the US leader to reverse course on his plans to slap even steeper tariffs on countries across the globe as early as next month. "Several participants asked to end the tariff dispute as soon as possible. They argued that this dispute weakens the G7's economies and in the end will only strengthen China," a senior German official told reporters on condition of anonymity. The six other countries urged Trump to end his trade conflict as soon as possible, telling him that his protectionist policies were only "damaging to ourselves," the official added. Most countries represented at the G7 are already subject to a 10 percent baseline tariff imposed by Trump, under a temporary easing of higher rates, with European countries and Japan also slapped with additional levies on cars and steel and aluminum. Britain in May was the first country to sign a preliminary deal with Washington to avoid deeper tariffs, and the two leaders at the G7 said they had agreed on the accord's final points and signed the agreement. "I like them. That's the ultimate protection," Trump told reporters after a meeting with British Prime Minister Keir Starmer on the G7 sidelines. Trump opened a folder to display the signed documents, only for the paperwork to slide out and spread across the ground. "Oops, sorry about that," he said as Starmer scrambled to gather up the loose sheets and stuff them back in the folder. 'Get it done' The trade issue is of particular interest to Canada after the Trump administration announced several extra levies on Canadian imports in recent months, throwing the country's economic future into deep uncertainty. After a meeting between Trump and Prime Minister Mark Carney, the Canadian government indicated that the two sides could come to a trade truce deal in the next 30 days. Mexican President Claudia Sheinbaum will also have her face-to-face time with Trump as her country tries to renegotiate its three-way North American free trade agreement that also includes Canada. While there is little expectation that the summit will see a breakthrough in the trade negotiations between the US and the rest of the world, US Trade Representative Jamieson Greer is part of Trump's delegation. Dozens of countries are locked in negotiations with Washington to clinch some sort of trade deal before the US imposes stinging reciprocal tariffs, threatened for July 9. But US Treasury Secretary Scott Bessent last week said that the date could be pushed back later for countries thought to be negotiating in good faith. German Chancellor Friedrich Merz told reporters he would team up with his counterparts from France and Italy to discuss the US trade threat with Trump directly. A source at the summit said that French President Emmanuel Macron urged the American leader to quickly end the trade conflict once and for all. The European Commission handles trade negotiations for the 27-country bloc, and the EU's trade chief Maros Sefcovic was also attending the summit, accompanying the delegation of EU Commission chief Ursula von der Leyen. The EU institutions are official members of the G7, and during the morning session, von der Leyen argued to the leaders that "tariffs -- no matter who sets them -- are ultimately a tax paid by consumers and businesses at home." Von der Leyen also met with Trump one-on-one on trade issues in a sit-down that US officials said was at her request. "We instructed the teams to accelerate their work to strike a good and fair deal. Let's get it done," she said in a post on X.
Euronews
a day ago
- Euronews
These are the most expensive toll routes in Europe for motorists
A new study names France as the continent's toll fee capital, with French routes claiming the top spot and five of the 10 most expensive tolls in Europe. Italy and Denmark follow closely, with toll fees of €68.30 and €54.00, respectively. A study by the European tollway seller, Tollwayr, analysed toll fees across European countries, examining costs for various motorways, tunnels and bridges to identify the most expensive routes for car drivers. France leads the list with the Eurotunnel crossing between France and the UK charging €72.00, making it the most expensive toll in Europe. The country also appears in the top five positions with its major motorway routes, including the Paris-Marseille route at €68.90. "What's particularly notable is that France doesn't just have one or two expensive routes – it consistently charges premium prices across its major highways and tunnels," said Mattijs Wijnmalen, CEO of Tollwayr. "The country's extensive toll network reflects significant infrastructure investment, but also places a considerable financial burden on both local drivers and tourists." Italy ranks high on the list, with the Milan-Bari route costing drivers €68.30, making it the third most expensive toll in Europe. Denmark and Sweden both feature in the top ten, with the Øresundsbron bridge connecting the two countries, charging €54.00 from either side, making it the most expensive bridge toll in Europe. Croatia, while not in the top ten, has the most expensive tolls in Eastern Europe, charging €32.80. On the other hand, the United Kingdom's Warburton Bridge charges just €0.14, making it the least expensive toll in Europe, while Bosnia and Herzegovina's Svilaj-Odžak section costs only €0.61 for cars. Leaders of some of the world's biggest economic powers have arrived in the Canadian Rockies for a Group of Seven summit, overshadowed by an escalating conflict between Israel and Iran and US President Donald Trump's unresolved trade war. Israel's strikes on Iran and Tehran's retaliation, which appeared to catch many world leaders unaware, is the latest sign of a more volatile world. Trump in recent days vetoed an Israeli plan to kill Iran's Supreme Leader Ayatollah Ali Khamenei, a US official said, in an indication of how far Israel was prepared to go. British Prime Minister Keir Starmer said he had discussed efforts to de-escalate the crisis with Trump and Israeli Prime Minister Benjamin Netanyahu, as well as other world leaders and said he expected 'intense discussions' would continue at the summit. As summit host, Canadian Prime Minister Mark Carney has decided to abandon the annual practice of issuing a joint statement, or communique, at the end of the meeting. European Commission President Ursula von der Leyen said Sunday that the bloc was committed to strengthening Ukraine, as the G7 leaders gathered to meet in Kananaskis, Canada for crucial talks. "To achieve peace through strength, we must put more pressure on Russia to secure a real ceasefire, to bring Russia to the negotiating table and to end this war," Von der Leyen said during a news conference ahead of meetings. She added that the summit will be "defined by geo-economics and geopolitics at the same time." "We need a frank discussion among the G7 partners, restoring a sense of stability and predictability among ourselves. That is the first priority," Von der Leyen said. Trump is the summit wild card. Looming over the meeting are his inflammatory threats to make Canada the 51st state and take over Greenland. French President Emmanuel Macron visited Greenland on Sunday for a symbolic stop on his way to Canada. Macron warned that Greenland is 'not to be sold' nor 'to be taken." With other leaders wanting to talk to Trump in an effort to talk him out of imposing tariffs, the summit risks being a series of bilateral conversations rather than a show of unity. Leaders who are not part of the G7 but have been invited to the summit by Carney include the heads of state of India, Ukraine, Brazil, South Africa, South Korea, Australia, Mexico and the UAE. Avoiding tariffs will continue to be top of mind. President Volodymyr Zelenskyy is due to attend the summit and is expected to meet with Trump, a reunion coming just months after their bruising Oval Office encounter which laid bare the risks of having a meeting with the US president. Starmer met with Carney in Ottawa before the summit for talks focused on security and trade, in the first visit to Canada by a British prime minister for eight years.
