Latest news with #KathleenBrooks
The Independent
6 days ago
- Business
- The Independent
FTSE 100 takes breather ahead of tariff deadlines
The FTSE 100 ended a six-day winning streak to close a strong week on the back foot, ahead of pending US trade talk deadlines. The FTSE 100 index closed down 18.06 points, 0.2%, at 9,120.31. The FTSE 250 closed 37.43 points lower, 0.2%, at 22,117.98, and the AIM All-Share closed down 0.23 of a point at 776.64. For the week, the FTSE 100 rose 1.4%, hitting a new all-time high of 9,158.21. The FTSE 250 rose 1.0% and the AIM All-Share climbed 0.4%. Equities have enjoyed a strong run this week on expectations that governments will reach agreements with the US to avoid President Donald Trump's threatened tariffs before next Friday's deadline. Sentiment was lifted earlier in the week by the announcement of a Japan-US deal, as well as signals that the EU could be nearing its own agreement with Washington. That 'momentum has not been kept up, and European stocks are weaker at the end of the week,' said Kathleen Brooks, research director at trading group XTB. With no confirmation of a US-EU deal, sentiment towards European assets 'could be fragile as we lead up to that August 1 tariff deadline,' Ms Brooks added. On Friday, Mr Trump estimated there was a 50% chance of Washington being able to strike a deal with the EU to reduce import tariffs. 'I would say that we have a 50/50 chance, maybe less than that, but a 50/50 chance of making a deal with the EU,' Mr Trump told reporters while leaving the White House for a trip to Scotland. Mr Trump said his negotiators were working 'diligently' with EU officials. In European equities on Friday, the CAC 40 in Paris rose 0.4%, while the DAX 40 in Frankfurt fell 0.3%. Adding to the more cautious mood is the pending resumption of trade talks between the US and China at the start of next week, with investors looking for an extension to the August 12 deadline. The confirmation of a meeting, following talks in Geneva and then London earlier this year, comes ahead of the deadline when a pause on tariffs between China and the US is scheduled to expire. ING noted tariffs were drastically cut in a 90-day ceasefire agreement that was effective in May. This is set to expire on August 12. 'One big question for markets is whether the tariff ceasefire is extended. We expect that an agreement will be attainable, but, in the interim, markets will watch closely to see if there are adjustments to current tariff rates in either direction,' ING said. Retailers were mixed as figures from the Office for National Statistics showed UK retail sales improved in June following record-setting warm weather, but fell short of expectations. Total retail sales volumes rose 0.9% in June, compared to a fall of 2.8% in May, the latter downwardly revised from a decline of 2.7%. Sales fell short of an FXStreet-cited consensus for a 1.2% rise, however. Next edged up 0.7%, but sports retailer JD Sports Fashion fell 0.9% while Marks & Spencer ended flat. Further weighing on JD Sports was a profit warning from German sports brand Puma, which sent the latter's shares plunging 16%. Puma reported a drop in sales and gross margin during the second quarter, as demand weakened across several regions, prompting a warning of weaker performance for the rest of the year. Herzogenaurach, Germany-based Puma said preliminary sales fell 8.3% to 1.94 billion euros in the second quarter ended June 30 from 2.12 billion euros a year earlier. 'Looking ahead, Puma no longer expects to achieve the currency-adjusted sales growth previously anticipated for the remainder of 2025. The softer top line performance observed in the second quarter is expected to persist for the remainder of 2025, resulting in higher inventory levels,' Puma added. The pound eased to 1.3437 dollars late on Friday afternoon in London, compared to 1.3535 dollars at the equities close on Thursday. The euro traded at 1.1737 dollars, lower against 1.1773 dollars. Against the yen, the dollar was trading higher at 147.69 yen compared to 146.79 yen. In New York, the Dow Jones Industrial Average was up 0.2%, the S&P 500 was 0.3% higher, as was the Nasdaq Composite. The yield on the US 10-year Treasury was quoted at 4.42%, stretched from 4.40%. The yield on the US 30-year Treasury was quoted at 4.96%, widened from 4.94% on Thursday. New orders for US durable goods fell sharply in June, dragged lower by a steep drop in transportation equipment orders, according to data released by the US Census Bureau. Durable goods orders declined 9.3% month-on-month to 311.8 billion dollars, following a revised surge in May of around 17%. June's decrease, which was driven almost entirely by the volatile transportation category, marks the second decline in three months. However, it was milder than the around 11% decline expected by the FXStreet-cited consensus. Next week, the Federal Reserve is widely expected to leave interest rates unchanged, a move unlikely to please Mr Trump. T he US president has been vocal in his criticism of Fed chairman Jerome Powell, prompting much speculation as to his future at the helm of the central bank. Despite political pressure, the CME's FedWatch tool places a 97% probability that the Federal Open Market Committee will maintain the target range for the federal funds rate at 4.25%-4.50%. The unity of the decision will be in focus given calls from Fed officials, including Christopher Waller, for lower rates. On the FTSE 100, NatWest rose 3.4% as it raised its full-year guidance, and boosted its dividend, after a strong first half which saw loans and deposits grow. The Edinburgh-based lender reported operating pre-tax profit of £3.59 billion in the six months to June 30, rising 18% from £3.03 billion the year before. Net interest income grew 13% to £6.12 billion from £5.41 billion, while non-interest income improved 8.1% to £1.87 billion from £1.73 billion. Net interest margin is 2.28%, improved on-year from 2.07%. NatWest declared an interim dividend of 9.5 pence per share, up 58% on-year from 6p, and intends to launch a share buyback for £750 million in the second half of 2025. 'With positive momentum in our business, we are ambitious for the future and see clear opportunities for further disciplined growth,' said chief executive officer Paul Thwaite. On the FTSE 250, Wizz Air climbed 11% as Barclays upgraded the low-cost airline to 'overweight' with a 1,500 pence share price target. Close Brothers rose 4.5%, after agreeing to sell City broker Winterflood Securities to London-based Marex for £103.9 million in cash. Close Brothers expects the sale proceeds to benefit its CET1 ratio by around 30 basis points, increasing it to 14.3% from 14.0%. Brent oil was quoted lower at 68.66 dollars a barrel in London on Friday, from 69.40 dollars late on Thursday. Gold fell to 3,329.51 dollars an ounce against 3,373.34 dollars. The biggest risers on the FTSE 100 were NatWest, up 17.00 pence at 518.6p, Ashtead, up 104.00p at 5,136.0p, Entain, up 17.3p at 1,000.5p, Lloyds Banking Group, up 1.26p at 79.3p, and Beazley, up 12.5p at 902.0p. The biggest fallers on the FTSE 100 were 3i, down 114.0p at 4,150.0p, Informa, down 20.2p at 862.8p, Rightmove, down 17.6p at 777.4p, Fresnillo, down 31.0p at 1,402.0p and Melrose Industries, down 10.0p at 510.0p. Monday's local corporate calendar has half-year results from Primary Health Properties. Later in the week, results are due from Barclays, HSBC, Shell, GSK, Unilever and AstraZeneca. The global economic calendar next week sees interest decisions in the US, Canada and Japan and nonfarm payrolls in the US on Friday.
Business Insider
24-07-2025
- Business
- Business Insider
Gold Price is Dented as Trump Deal Batters Safe Haven Status
Gold prices lost their shine today after the sealing of the U.S. and Japan trade deal calmed global economic fears. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Gold futures were down 0.3% to $3,434.50 per ounce in early trading, while spot gold was muted at $3,422.89 per ounce. Tariffs Talks The Japanese deal will mean that goods sold from Japan to America will be taxed at 15% below the 25% rate Trump had threatened would be imposed on August 1. That includes tariffs on vehicles and car parts. As part of the deal Japan has agreed to invest $550 billion in the U.S. If other countries agree to such a spend then this could open the floodgates to more U.S. trade deals in the days leading up to August 1 and beyond. There are some big hitters still to find a solution. 'The U.S. Treasury secretary said that he would resume trade talks with China next week, ahead of the August 12 th deadline for negotiations. This suggests that the U.S. is more focused on agreeing a deal with China, rather than the EU. The EU has until August 1 st to reach a trade agreement, otherwise, it will be subject to 35% tariffs,' said Kathleen Brooks, research director at XTB. If so, it lowers the threat of high tariffs being imposed on countries around the world with the subsequent threat to economic growth. This uncertainty has largely led to a huge spike in demand for gold and the gold price over recent months. That's because gold is seen as a safe haven in times of economic and geopolitical stress and strife. Dollar Doubts 'If further trade deals are signed ahead of 1 August, this could further boost general risk appetite and reduce the demand for gold,' CM Trade chief market analyst Tim Waterer said. 'But if the USD remains pressured this will keep a return to $3,500 a viable near-term prospect for the precious metal.' That dollar comment relates to concerns over the weak currency which has plummeted in value this year. Part of the pressure on the currency is uncertainty over the direction of interest rates, pressure from President Trump on the independence of the Federal Reserve and concern that his big beautiful bill will add to U.S. debt. Worries over geopolitical events in the Middle East, Asia and Europe also remain and could be a further driver for the gold price in the months ahead. It is why analysts still feel bullish about the gold price, as can be seen by the consensus below.
Al Etihad
21-07-2025
- Business
- Al Etihad
Markets caught between earnings optimism and tariff fears
21 July 2025 20:44 LONDON (AFP)Stock markets largely rose on Monday, as traders focused on upbeat US corporate news, but President Donald Trump's August 1 deadline for ramped-up tariffs still weighed on European York extended its positive trajectory from the previous week, which had also pulled Asia Europe, London and Frankfurt rose, but Paris sank.'As we start a new week, the focus is once again on tariffs and earnings reports,' said Kathleen Brooks, research director at trading group in US equities have been encouraged by forecast-beating results from major corporations, against only a modest uptick in inflation that suggested tariffs impact was not yet a uncertainty will be part of the European Central Bank's calculation as it meets this week. Expectations are for it to hold eurozone interest rates steady, pausing a long cycle of equities advance was led by Hong Kong and came after strong earnings from Taiwanese chip giant TSMC and news that US titan Nvidia will be allowed to export key semiconductors to yen strengthened against the dollar after Japanese Prime Minister Shigeru Ishiba vowed to stay on even after his ruling coalition lost its majority in the upper house in elections on company news, Jeep maker Stellantis said it suffered a massive, 2.3-billion-euro ($2.7-billion) net loss in the first half of this year, on the back of slumping North America sales and partly from 'the early effects of US tariffs.'It shares, which have lost more than a third of their value since the start of the year, dipped early on Monday before reversing course and ending up. Oil prices receded on worries of declining global trade.
The Independent
21-07-2025
- Business
- The Independent
FTSE 100 ends day above 9,000 points for first time
European stocks ended mixed on Monday, as investors anxiously await developments on tariff talks, with an August 1 deadline nearing. The FTSE 100 index closed up 20.87 points, 0.2%, at 9,012.99, ending a day above the 9,000 points threshold for the first time. It failed to set a new intraday high on Monday, however. The FTSE 250 closed up 114.20 points, 0.5%, at 22,012.46, and the AIM All-Share closed down 1.90 points, 0.3%, at 770.88. In European equities on Monday, the CAC 40 in Paris lost 0.3%, while the DAX 40 in Frankfurt edged up 0.1%. 'The latest news on tariffs is mixed. Over the weekend US commerce secretary Howard Lutnick said that he hoped a trade agreement would be reached between the US and the EU, but that the August 1 deadline was hard, although no previous deadline from the US has been that hard so far,' XTB analyst Kathleen Brooks said. 'Early on Monday the news was less positive, with reports suggesting that the new universal tariff on all EU goods will be above the current rate of 10% with fewer exemptions. Voices are also getting louder in the EU about retaliatory measures including new taxes on US tech giants, which could disrupt negotiations even further.' The pound was up at 1.3506 dollars late on Monday afternoon in London, compared with 1.3444 dollars at the equities close on Friday. The euro traded at 1.1711 dollars, against 1.1656 dollars. Against the yen, the dollar was trading down at 147.29 yen compared with 148.48. In New York, the Dow Jones Industrial Average was up 0.5%, the S&P 500 traded up 0.6% and the Nasdaq Composite added 0.8%. SPI Asset Management analyst Stephen Innes said: 'This week is about managing two ticking clocks: the August 1 tariff deadline and the start of big tech earnings. It's a high-stakes cocktail — part policy roulette, part valuation validation.' The yield on the US 10-year Treasury was quoted at 4.36%, narrowing from 4.42%. The yield on the US 30-year Treasury was quoted at 4.92%, narrowing from 4.99%. US treasury secretary Scott Bessent said on Monday that the institution of the Federal Reserve – and whether it has been successful – must be examined, as President Donald Trump escalates pressure on the independent central bank. While Jerome Powell's term as Fed chief ends in May 2026, Mr Trump has recently zoomed in on the Fed's 2.5 billion dollar renovation project as a possible avenue for his ousting. The fresh attacks came after months of criticism aimed at Mr Powell as the central bank held interest rates steady this year, holding off cuts while policymakers monitored the effects of Mr Trump's tariffs. Asked if he would offer his opinion on firing Mr Powell, Mr Bessent told CNBC on Monday: 'I think that what we need to do is examine the entire Federal Reserve institution and whether they have been successful.' On the up in Europe were mining shares. Antofagasta rose 4.7% and Glencore climbed 3.0%. China started building a mega-dam on Saturday on a river running through Tibet and India, with premier Li Qiang attending the commencement ceremony, state media said. Beijing approved the project in December on the river – known as Yarlung Tsangpo in Tibet and Brahmaputra in India – linking it to the country's carbon neutrality targets and economic goals in the Tibet region. 'The electricity generated will be primarily transmitted to other regions for consumption, while also meeting local power needs in Tibet,' state news agency Xinhua reported after the groundbreaking ceremony in south-eastern Tibet's Nyingchi. The development boosted iron and steel prices. In Amsterdam, steelmaker ArcelorMittal added 4.4%. Oxford Nanopore rose 19%. It left its full-year outlook unchanged, though revenue was higher than expected in the first half of 2025. The Oxford-based biomedical company focuses on DNA and RNA sequencing technology. It is expecting to report around £105 million in revenue for the six months that ended June 30, up by a quarter from £84.1 million a year prior. This 25% rise is ahead of the company's expectations, it said. Apax Global Alpha rose 18%. It agreed to a 916.5 million euro takeover from Apax Partners. The deal values each Apax Global Alpha share at 1.90 euros, an 18% premium to its closing price on Friday. Elsewhere, Aeorema Communications shot up 15%. It expects profit and revenue for the year to June 30 at the upper end of expectations following a 'transitional year'. The London-based live events agency said it expects revenue of at least £20.4 million for the 12 months that ended June 30, rising at least 0.5% from £20.3 million in financial 2024. Underlying pre-tax profit of no less than £600,000 is anticipated, up at least 37% from £437,000 and surpassing March guidance of £550,000. Chief executive Steve Quah said: 'We are pleased to be trading at the upper end of expectations, with strong revenue, profit and cash performance during what has been a transitional year. Furthermore, our restructuring is progressing well and sets us up to improve margins in 2026 without compromising our creative edge.' The biggest risers on the FTSE 100 were Antofagasta, up 88.00p at 1,956.50p, Endeavour Mining, up 90.00p at 2,284.00p, Fresnillo, up 52.00p at 1,497.00p, Anglo American, up 74.00p at 2,307.00p, and Marks & Spencer, up 10.40p at 352.40p. The biggest fallers on the FTSE 100 were BAE Systems, down 39.50p at 1,900.50p, Informa, down 14.20p at 822.40p, Diageo, down 32.00p at 1,897.00p, London Stock Exchange Group, down 175.00p at 10,655.00p, and Haleon, down 4.40p at 354.30p. Tuesday's local corporate calendar has third quarter numbers from contract caterer Compass. The economic calendar has UK public sector net borrowing data. Contributed by Alliance News.
Yahoo
18-07-2025
- Business
- Yahoo
Netflix shares drop as revenue forecast leaves investors unimpressed
By Joel Jose (Reuters) -Netflix shares declined more than 5% in early trading on Friday, as investors were disappointed by the streaming giant's revenue forecast raise being driven by a weaker dollar instead of strong customer demand. The stock has nearly doubled in value in the last 12 months, pushing Netflix's market value above $540 billion, more than the combined worth of Disney, Comcast, and Warner Bros. Discovery. The streaming platform on Thursday raised its 2025 revenue outlook and expects to be in the range of $44.8 billion to $45.2 billion, broadly helped by a weaker dollar, compared to its previous forecast range of $43.5 billion to $44.5 billion. "Better-than-expected quarterly results and upgraded full-year revenue and cash flow guidance weren't enough to keep investors happy," said Dan Coatsworth, investment analyst at AJ Bell. Investors were disappointed because the improved revenue outlook was driven by foreign exchange factors rather than stronger customer demand, Coatsworth said. Disappointment over the forecast overshadowed a quarterly profit beat that was fueled by the success of the final season of 'Squid Game'. Netflix shares, which have gained about 43% so far this year, currently trade at 43.8 times the estimates of its earnings for the next 12 months, compared with Disney's 19.57 and Comcast's 7.71."The muted response to Netflix's share price... may be down to its lofty valuation," said Kathleen Brooks, research director at XTB. With subscriber growth slowing after the pandemic-era surge, Netflix has shifted its focus to ramping up advertising revenue to reshape its business model. The company is expanding its ad-supported tiers, implementing targeted ad placements, and working on live sports events to attract advertisers. "As Netflix ramps up its advertising revenues combined with underlying strength in the core business, we see a strong runway to drive higher monetization of its engagement," analysts at MoffettNathanson said. At least 16 analysts raised their price targets on the stock following results, bringing the median target to $1,365, as per data complied by LSEG. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
