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Al-Ahram Weekly
6 days ago
- Business
- Al-Ahram Weekly
Stocks, dollar gain as Trump weighs future of Fed boss - Markets & Companies
Leading European and Asian stock markets mostly rose Thursday, tracking more record highs on Wall Street. Investors assessed the outlook for US interest rates, fuelled by news that President Donald Trump was considering whether to sack Federal Reserve boss Jerome Powell. The dollar rose against main rivals, also as developments over US tariffs and the earnings season influenced market direction. "US futures are pointing to a mixed open after markets see-sawed on Wednesday after Trump suggested he could fire... Powell but later went back on the idea," noted Victoria Scholar, head of investment at Interactive Investor. "Earnings continue to dominate with Netflix kicking off results from the tech sector" Thursday. Tokyo-listed shares in the Japanese owner of convenience store giant 7-Eleven plunged after its Canadian rival pulled out of an almost $50 billion takeover bid. Investors have walked a cautious line this week as they ascertain the trade outlook. Trump has unveiled a flurry of fresh tariff threats, with the latest being letters to scores of countries notifying them of levies of up to 15 percent. All three main indices in New York ended in the green Wednesday, with the Nasdaq at another record high, following a brief sell-off after it emerged Trump had raised the idea of firing Powell. The markets recovered after the president denied he was planning such a move. The news caused a spike in US Treasury yields amid fears over the central bank's independence and came after Trump spent months lambasting Powell for not cutting interest rates. The Fed's "Beige Book" survey of economic conditions has meanwhile indicated increasing impacts from the tariffs, with many businesses warning they had passed along "at least a portion of cost increases" to consumers. Key figures at around 1115 GMT London - FTSE 100: UP 0.5 percent at 8,969.29 points Paris - CAC 40: UP 0.9 percent at 7,792.21 Frankfurt - DAX: UP 0.8 percent at 24,196.72 Tokyo - Nikkei 225: UP 0.6 percent at 39,901.19 (close) Hong Kong - Hang Seng Index: DOWN 0.1 percent at 24,498.95 (close) Shanghai - Composite: UP 0.4 percent at 3,516.83 (close) New York - Dow: UP 0.5 percent at 44,254.78 (close) Euro/dollar: DOWN at $1.1584 from $1.1641 on Wednesday Pound/dollar: DOWN at $1.3397 from $1.3414 Dollar/yen: UP at 148.62 yen from 147.80 yen Euro/pound: DOWN at 86.45 pence from 86.72 pence Brent North Sea Crude: UP 0.2 percent at $68.63 per barrel West Texas Intermediate: UP 0.5 percent at $66.70 per barrel Follow us on: Facebook Instagram Whatsapp Short link:
Times
7 days ago
- Business
- Times
Should the state pension stay frozen for expats?
More than 450,000 pensioners in countries including Australia and Canada are missing out on thousands of pounds because their pension payments have not gone up since 2012, according to Interactive Investor, an investment platform. Those living in the UK and EU and some other nations, meanwhile, have their income protected by the triple lock. Is this fair? We hear both sides of the argument. Jan Zeber from the public policy consultancy Bradshaw Advisory 'Britain is broke and the state pension is one of the main reasons' is how I would summarise last week's verdict on the state of the public finances by the Office for Budget Responsibility. According to its forecast, the state pension is now 'unexpectedly' going to cost an extra £15.5 billion each year by the end of the decade than if it had risen in line with wages instead of the triple lock — an increase three times greater than expected. By 2073, we are forecast to be spending just under 8 per cent of gross domestic product to pay for the state pension. The triple lock is a coalition government-era commitment to increase the state pension every year in line with inflation, earnings or 2.5 per cent, whichever is highest that year. These metrics are all based on what is happening in the UK, so you should be a resident here to benefit from the increases. If you live overseas, then UK inflation and earnings growth have no bearing on how far your state pension goes in the country you live in. It should be uncontroversial for the state to focus its scarce resources on those who are within its borders because, for an overwhelming majority of people, remaining within them isn't a choice. I understand that there are many reasons why people become expatriates, but it's always a choice and often a luxurious one. Escaping to the sun while benefiting from the triple lock increases would be a smart arbitrage, but not one that the cash-strapped UK state should have an obligation to fund. • David Willetts: The triple lock has been far more damaging than I ever feared And what about the countries in Europe, the US, Israel, Jamaica and the other seemingly random hodgepodge of countries in which British pensioners do benefit from increases to their pension? You might be surprised to hear that the arbitrary nature of these agreements lies in international diplomacy. Reciprocal agreements to increase pensions date back to when the cost of the state pension was lower, the world was globalising and governments wanted to enable smooth movement of labour. As the cost of pensions rose for the Treasury, the government changed its approach in 1996 and there have been no new commitments to increase pensions for those abroad since. The agreements that remain are international treaty obligations with no justification other than the 'give and take' of dealmaking. At a time when the government's finances are under such strain, and so many people within our borders are struggling, there are a number of policy decisions the government must make to improve the situation. Extending pension entitlements for those that have chosen to live abroad, should definitely not be one of them. Sir Peter Bottomley, former MP for Worthing West and father of the House of Commons in 2024 It should not be a discussion. All pensioners, whether in Britain or overseas, should have their pensions rise with inflation. No sensible government would create a system in which only half the state pensioners living overseas get increases in line with those at home. Successive governments have stuck to this unfair anomaly that developed in the British Commonwealth in the 1950s. This was at a time when inflation in Britain was low, and even lower abroad, and old dominions and newly independent colonies did not think it necessary to negotiate increases in the state pension. As a result, more than 450,000 pensioners in countries like Canada, Australia and South Africa today, are denied upratings. It is absurd that a pensioner in British Columbia is worse off than one across the strait in the USA's Washington state. The arbitrary injustice is as shameful now as it has been a disgrace for decades. When Sir Roger Gale MP and I were campaigning thirty years ago, we knew of British pensioners stuck in Zimbabwe and South Africa who were facing poverty because they were denied the increases given to pensioners in the UK or those in European Union countries. A pensioner living in Australia for the past 20 years, sometimes because that is where their family is, might now get just £4,200 in state pension, instead of the £11,500 they would have had if they stayed in the UK. • Retiring abroad could cost you £160,000 It's unfair. Remember how much is saved on healthcare and other state costs for everyone choosing to live abroad. Your state income, based on compulsory and voluntary contributions throughout your lifetime, should bring the same payments whether you choose to, or have to, live here or overseas. It's a crazy system in which you can move from New Zealand to Ireland to get the increases. You get the upratings in Barbados and Jamaica but not Trinidad and Tobago; in the Philippines but not Indonesia. The problem continues because ministers consistently decide that they should give priority to those living in the country rather than living outside. Unfortunately, court judgments over 20 years have failed to put things right. This means it is up to ministers to act, and act now.
Daily Tribune
08-07-2025
- Business
- Daily Tribune
Stocks diverge as US tariff deadline looms
Stock markets diverged while the dollar strengthened yesterday as countries fought to hammer out trade deals ahead of US President Donald Trump's tariff deadline. Oil prices rose, even if OPEC and its allies agreed over the weekend to increase output more than expected. 'Tariff threats look likely to take centre stage yet again this week, following further developments over the weekend,' noted Richard Hunter, head of markets at Interactive Investor. Trump announced he would send the first tariff letters to various countries on Monday ahead of his deadline Wednesday for trading partners to reach a deal expires. He warned that US levies on imports will snap back to the high levels he set in April if countries failed to make agreements. Treasury Secretary Scott Bessent said, however, that the measures would not be applied until August 1, instead of the July 9 cut-off that had been set by Trump. Trade Nation analyst David Morrison said added time wasn't calming markets. 'While (Bessent) downplayed the idea of this being a 'new deadline', the market took little comfort, interpreting the remarks as an extension of trade risks,' he said. The White House has said several deals were in the pipeline but only two have been finalised so far, with Britain and Vietnam. Major trading nations, including Japan, India, the European Union and South Korea, have fought for the past three months to get agreements. Uncertainty prevails, with Trump declaring that an extra 10 percent import levy would be added to any country 'aligning themselves with the Anti-American policies of BRICS' -- the 11-member alliance including Brazil, Russia, India and China. Despite the tariff uncertainty, official data Monday showed German industrial production rose strongly in May, boosting hopes that Europe's top economy has turned a corner. The news boosted German equities which gained 1.2% for the day. Paris added 0.4 percent, while London dipped 0.2%. Asia's main stock markets mostly steadied. Wall Street slipped after record finishes by the S&P 500 and Nasdaq Composite on Thursday before the long holiday weekend in the United States. OPEC+ hike The oil market was also in focus after Saudi Arabia, Russia and six other key members of the OPEC+ alliance said they would increase oil output in August by 548,000 barrels per day, more than expected. The group said in a statement that 'a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories' led to the decision. IG analyst Chris Beauchamp said that crude prices would ordinarily be expected to drop when additional supply is being brought to market. 'Crude's strength today suggests that buying momentum is clearly picking up,' he said. Shares in Shell dropped around 2.9% after the British energy giant posted a weak trading update.
Malay Mail
08-07-2025
- Business
- Malay Mail
US stocks retreat from records on Trump tariff deluge
NEW YORK, July 8 — Stock markets were mixed yesterday with US indices retreating from records as President Donald Trump's aggressive trade policy came back to the forefront, reviving worries about trade wars and inflation. 'Tariff threats look likely to take centre stage yet again this week, following further developments over the weekend,' noted Richard Hunter, head of markets at Interactive Investor. After warning of a tariff hike of 10 per cent on countries aligning themselves with the emerging BRICS nations, Trump announced plans for 25 per cent tariffs on Japan and South Korea from August 1 if the countries do not reach a deal. Trump issued similar letters to South Africa, Malaysia, Myanmar, Laos and Kazakhstan, saying he would slap duties on their products ranging from 25 per cent to 40 per cent. Later yesterday, he announced additional levies on Indonesia, Cambodia and other countries. The broadsides revived attention on trade after the issue had receded for a few weeks while Congress debated Trump's sweeping fiscal package and worries about the Iran-Israel conflict took certain stage. Major US indices fell, with the S&P falling 0.8 per cent, retreating from a record. The likelihood that Trump's statements are a bargaining tactic is one reason losses weren't 'even worse,' said Steve Sosnick of Interactive Brokers. 'No one really wants to overreact negatively right now, which is why we're seeing a bit of a sell-off, but not a major sell-off,' he said. The White House has said several deals were in the pipeline but only two have been finalized so far, with Britain and Vietnam. The administration had previously set a July 9 deadline to reach agreements. The White House now says it will hike tariffs on August 1 on trading partners that don't strike a deal. Despite the tariff uncertainty, official data yesterday showed German industrial production rose strongly in May, boosting hopes that Europe's top economy has turned a corner. The news lifted German equities which gained 1.2 per cent for the day. Paris added 0.4 per cent, while London dipped 0.2 per cent. Asia's main stock markets mostly steadied. Opec+ hike The oil market was also in focus after Saudi Arabia, Russia and six other key members of the OPEC+ alliance said they would increase oil output in August by 548,000 barrels per day, more than expected. The group said in a statement that 'a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories,' led to the decision. IG analyst Chris Beauchamp said that crude prices would ordinarily be expected to drop when additional supply is being brought to market. 'Crude's strength today suggests that buying momentum is clearly picking up,' he said. 'The bearish theme that has dominated for so long seems to have run its course, even if more increases are expected in September,' he added. Among individual companies, Tesla tumbled 6.8 per cent after Trump blasted CEO Elon Musk's plan to launch a new political party in opposition to the president's hallmark legislation, the so-called 'Big Beautiful Bill.' The back-and-forth escalated a conflict between the president and the world's richest man at a time when investors had hoped Musk would refocus on Tesla and his other ventures and shift attention from politics. — AFP
Daily Mail
30-06-2025
- Business
- Daily Mail
Freetrade offers investors up to £200 cashback for topping up an Isa this summer - is it a good deal?
Freetrade is the latest platform to offer cashback on your investments, paying you one per cent when you top up your Isa with £5,000 or more. The maximum you can earn is £200. To bag that amount you'd have to use your full £20,000 Isa allowance on the platform, because transfers aren't eligible for the offer. Freetrade will also pay cashback on pensions*, and in a reverse of the Isa deal, only transfers are eligible. But there's more money on offer – you can get three per cent cashback, capped at £1,500. You must transfer a pension of at least £10,000. Investment platforms periodically offer deals to entice people to open an account or transfer their money. Usually there's a host of cashback offers at the end of the tax year, when people are thinking about how best to maximise their tax-free allowances. Considering we're only three months into the new tax year, deals are currently sparse. But of the offers available right now, Freetrade's rivals a Sipp deal from Interactive Investor*, which pays up to £2,000 when you transfer a pension. > Learn more about Freetrade's Isa cashback deal* Boost your pot: Cashback deals can help you get more from your money How do the deals stack up? Topping up an Isa isn't on everyone's to-do list in the summer. But if you are comparing accounts and fancy giving your pot a boost, you could do worse than Freetrade's Isa cashback offer. Cashback shouldn't be the only reason to choose a provider. You should check fees, investment choice, and the availability of research and customer support. Freetrade is similar to Interactive Investor in that it charges flat fees of £5.99 a month for the standard plan, which includes an Isa. Interactive Investor is £4.99 a month for an Isa that holds investments up to £50,000. But Interactive Investor isn't currently offering Isa cashback. And in terms of pensions, Interactive Investor's deal only works out better for very large transfers. It's also not offered as a percentage of your investments, instead being offered in bands - so both a £10,000 and a £45,000 transfer each qualify for £100 cashback. Taking Freetrade's pension deal, you'd get £300 for a £10,000 transfer and £1,350 for a £45,000 transfer. Here's what a pension transfer would net you with each provider: Pension cashback deals compared Transfer value Interactive Investor cashback Freetrade cashback £10,000 £100 £300 £30,000 £250 £900 £250,000 £500 £1,500 £1million £2,000 £1,500 To qualify for the pension cashback deal at Freetrade*, you must request to transfer before 31 August 2025 and the transfer must complete by 31 December 2025. The Isa cashback deal at Freetrade* also closes on 31 August 2025. Freetrade will pay Isa cashback into your general investment account on 28 November 2025. Make sure you read all the terms and conditions of each deal before going ahead. And before transferring a pension, check that you don't lose any valuable benefits by leaving the scheme. Read our full round-up of the best self-invested personal pensions to see how we rate pensions from each provider and check our comparison of the best investing platforms below. Compare the best DIY investing platforms Investing online is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you. When it comes to choosing a DIY investing platform, stocks & shares Isa, self invested personal pension, or a general investing account, the range of options might seem overwhelming. > This is Money's full guide to the best investing platforms Every provider has a slightly different offering, charging more or less for trading or holding shares and giving access to a different range of stocks, funds and investment trusts. When weighing up the right one for you, it's important to to look at the service that it offers, along with administration charges and dealing fees, plus any other extra costs. We highlight the main players in the table below but would advise doing your own research and considering the points in our full guide to the best investment accounts. Charles Stanley Direct * 0.30% Min platform fee of £60, max of £600. £100 back in free trades per year £4 £10 Free for funds n/a More details Freetrade * Basic account free, Standard with Isa £5.99, Plus £11.99 Stocks, investment trusts and ETFs. No funds Free n/a n/a More details Hargreaves Lansdown * 0.45% Capped at £45 for shares, trusts, ETFs Free £11.95 Free Free More details Interactive Investor* £4.99 per month under £50k, £11.99 above, £10 extra for Sipp Free trade worth £3.99 per month (does not apply to £4.99 plan) £3.99 £3.99 Free £0.99 More details InvestEngine * Free Only ETFs. Managed service is 0.25% Not available Free Free Free More details iWeb Free £5 £5 n/a 2%, max £5 More details Trading 212* Free Stocks, investment trusts and ETFs. Not available Free n/a Free More details
