Latest news with #Carlota
The Herald Scotland
2 days ago
- Business
- The Herald Scotland
Changing dynamics and the rise of UK share buybacks
With the popularity of share buybacks exploding in the UK, we explore when and why a company might choose buybacks over dividends, and what they mean for investors. As markets generally view this action as a sign of confidence, buybacks can lift a company's overall market capitalisation, as well as its share price. Of course, in the real world, this equation isn't quite so simple. Other factors can affect investor sentiment, and no amount of buyback activity will keep share prices high if the company is financially struggling or falling behind its competitors. Still, over time there is evidence that share buybacks can help preserve or even increase shareholder returns. In fact, according to market research company BCA Research, buybacks are one of the biggest long-term drivers of equity returns. The post-COVID-19 UK surge Historically, the UK market has been known for favouring dividends over buybacks. The FTSE 100 has a greater exposure to defensive sectors, such as consumer staples, healthcare or utilities, compared to other regions. These sectors tend to pay more dividends but commit less revenue to buybacks. According to Carlota Estragues Lopez, Equity Strategist at SJP: "Dividends are typically more appealing to investors seeking stable income. They are more common in defensive sectors, which tend to have lower cyclical revenues and more predictable cash flows. Because these businesses can be less sensitive to economic downturns, they are often better positioned to sustain and grow dividends over time." Since COVID-19, however, there has been a notable increase in the number of buybacks in the UK. In fact, the UK has recently become the buyback capital of the developed world. This is in terms of the percentage of large companies in the UK carrying out share buybacks comparative to other large economies. Carlota says this can be at least partly explained by the shifting geopolitical environment. Post Brexit, the UK market struggled with uncertainty for some time. This suppressed valuations and made the UK an unloved asset class. But while the UK economy is still experiencing weak growth, the FTSE 100 has become more appealing to investors over the past 18 months. As the market is beginning to recover, share buybacks are one of the tools that managers have increasingly started calling upon to help revive the UK stock market. Read more Money HQ: Historical power of the US Prior to 2024, the US led the way in buybacks. And while a higher proportion of large UK companies carried out buybacks in 2024, the US still dwarfed other economies in terms of total amount spent. Last year, companies in the S&P 500 spent over $940 billion on buybacks, approaching the record $1 trillion spent in 2022. To put those numbers into perspective, the FTSE 100's combined market cap was just north of £2 trillion at the end of May 2025. Apple has been the most notable example, committing hundreds of billions of dollars to buybacks over the past decade. At the start of 2015, there were well over 23,000 Apple shares in circulation. Today, that number stands closer to 15,000. Over the same period, the company's share price has leapt from around $30 to approximately $200 (at the time of writing). There are a range of reasons for the US's historic lead, but it can again be partly explained by the sector composition of its market. In recent years, the US has been increasingly dominated by a relatively small number of large technology companies. Technology and other cyclical sectors (those that tend to follow the peaks and troughs of the wider economy) typically contain companies that perform share buybacks and reinvest earnings into expansion and research and development (R&D), rather than paying dividends. Carlota notes: "Technology companies are often more prone to share buybacks because they can generate significant free cash flow, have lower capital intensity, and don't need to reserve as much capital for physical assets. After reinvesting in growth areas like R&D or acquisitions, excess cash can often be returned to shareholders via buybacks, which are seen as a flexible way to deploy capital without committing to permanent dividends." How we look at share buybacks When developing a view on a sector or market, buybacks are one factor to consider. But they should not be looked at in isolation, says Carlota. 'An active manager will assess the health of the balance sheet and ensure there's a sufficient cash buffer to support it.' There is also a risk that buybacks could be used to artificially increase the price of shares. Therefore, buybacks always need to be paired with strong fundamentals. When active managers look at buybacks, they look at them in combination with the strength of a company's financials – cash flow, income statements and balance sheet. In other words, is this company in a solid position to return capital to shareholders? Ben Stark is a chartered financial planner with over a decade of experience advising businesses and families. He is partnered with St. James's Place Wealth Management.
Yahoo
20-05-2025
- Entertainment
- Yahoo
Mexico's Latin Pop Star Belinda to Topline Sony Pictures Television's Epic Series ‘Carlota' (EXCLUSIVE)
Sony Pictures Television (SPT) has found its Carlota. Belinda, the Spanish-born Mexican Latin pop star is poised to topline as the titular 'Carlota,' the Empress of Mexico, in SPT's most ambitious Latin American series to date. More from Variety Netflix's 'Avatar: the Last Airbender' Casts Seven Including Dichen Lachman, Dolly de Leon and Tantoo Cardinal 'Clash of Clans' Animated Series Ordered at Netflix Netflix Greenlights Korean Thriller 'The Rat' and Rom-Com 'Lovestuck' The high-concept project is among the hot picks in the studio's presentation to LA Screenings attendees on Tuesday, May 20. Set to start production later in the year, the 10 x 45' dramatic series is inspired by the true story of Carlota of Habsburg, Mexico's first and only Empress. It reimagines a visionary royal ahead of her time, following Carlota's arrival in Mexico full of idealism and determined to change the world. But as political unrest deepens and cultural tensions rise, she finds herself entangled in a far more complex reality, including a love story that defies fairy-tale expectations. As Carlota and her husband Maximilian attempt to build a new empire, they are drawn into a dangerous web of ambition, loyalty and betrayal. 'To be filmed across Mexico, Colombia and Spain, 'Carlota' is a powerful milestone in our journey to establish Sony Pictures Television as a leading entertainment producer in Latin America,' said SPT's John Rossiter, executive VP, Distribution, Networks & Production, Latin America, adding: 'This project underscores our dedication to crafting top tier stories that connect with audiences not only in Latin America but across the globe.' 'It's a truly international series in scope,' Rossiter told Variety, who conceded that SPT Latin America was spurred by the growing number of large-scale local series currently streaming on the platforms. The company will be tapping the incentives of each territory. Belinda ('Killer Women') leads a stellar Spanish and Latin American cast that includes Jaime Lorente ('Money Heist') as Maximiliano , Miguel Ángel Silvestre ('Sense8') as Alfred Van Der Smissen and Mexico's Mabel Cadena ('Black Panther: Wakanda Forever') as Josefa. 'Money Heist' director Alejandro Bazzano and Ana Lorena Pérez Ríos (HBO Max's 'Like Water for Chocolate') are attached to direct the series. 'In addition to the talent and high production values, at its core 'Carlota' has an emotional and authentic story which we believe will resonate with Mexican audiences and also have great global appeal,' Rossiter remarked,noting that historical costume dramas tend to do well on streamers. SPT Latin America's most recent venture into larger scale production is 'Yo No Soy Mendoza,' which debuted last month on Netflix and landed on the streaming giant's Top 10 Non-English TV Shows list globally and is among the Top 10 in 14 countries across Latin America. 'Yo No Soy Mendoza' follows Julian Garcia, a smooth-talking debt collector who is kidnapped and forced to pose as corrupt casino owner Esteban Mendoza and marry the businessman's fiancé. Thrust into Mendoza's dangerous world, Julian must dodge deadly enemies while juggling his old life and new identity. He soon discovers that beneath the chaos, the fight worth having is for something far more personal. 'Our development pipeline is exploding, the challenge is to decide which ones to do first,' said Rossiter, who added that this included unscripted shows. The 'Carlota' production team is led by Coty Cagliolo, SPT's senior VP & managing director, production, Latin & U.S. Hispanic and Carlos Quintanilla Sakar, VP & head of content and production, LatAm and USH, who serves as executive producer and showrunner, alongside executive producers Alejandro García and Madelaine Contreras. Best of Variety New Movies Out Now in Theaters: What to See This Week Emmy Predictions: Talk/Scripted Variety Series - The Variety Categories Are Still a Mess; Netflix, Dropout, and 'Hot Ones' Stir Up Buzz Oscars Predictions 2026: 'Sinners' Becomes Early Contender Ahead of Cannes Film Festival
Yahoo
20-05-2025
- Entertainment
- Yahoo
‘American Manhunt: Osama bin Laden' Hits 12.6 Million Views in Five Days on Netflix
'American Manhunt: Osama bin Laden' was the most-watched series on Netflix during the week of May 12-18, hitting 12.6 million views in five days after its May 14 premiere. It was followed by another dark docuseries, 'Fred and Rose West: A British Horror Story,' which reached 8.3 million views in the same amount of time. Landing at No. 3 for the second week in a row was 'Forever,' Mara Brock Akil's adaptation of Judy Blume's 1975 novel of the same name. The romance series, recently renewed for a second season, rose from last week's 3.7 million views to 6.7 million. More from Variety Mexico's Latin Pop Star Belinda to Topline Sony Pictures Television's Epic Series 'Carlota' (EXCLUSIVE) Netflix's 'Avatar: the Last Airbender' Casts Seven Including Dichen Lachman, Dolly de Leon and Tantoo Cardinal 'Clash of Clans' Animated Series Ordered at Netflix 'The Four Seasons,' also renewed for a second season, took the No. 4 position with 5.3 million views in its third week on the chart. More to come… Best of Variety New Movies Out Now in Theaters: What to See This Week Emmy Predictions: Talk/Scripted Variety Series - The Variety Categories Are Still a Mess; Netflix, Dropout, and 'Hot Ones' Stir Up Buzz Oscars Predictions 2026: 'Sinners' Becomes Early Contender Ahead of Cannes Film Festival
