Germany's $40 Billion Pension Gives Mandate to China Stock Fund
KZVK, which manages €34.1 billion ($40 billion), gave $50 million to Fullgoal Asset Management (HK) Ltd. in the second quarter, according to people with knowledge of the matter. The mandate is to invest in Chinese equities listed in Hong Kong, the mainland and the US, the people said, asking not to be identified as the information is private.
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Yahoo
32 minutes ago
- Yahoo
Do These 3 Checks Before Buying ISA Holdings Limited (JSE:ISA) For Its Upcoming Dividend
ISA Holdings Limited (JSE:ISA) is about to trade ex-dividend in the next three days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. This means that investors who purchase ISA Holdings' shares on or after the 16th of July will not receive the dividend, which will be paid on the 21st of July. The company's upcoming dividend is R00.167 a share, following on from the last 12 months, when the company distributed a total of R0.17 per share to shareholders. Looking at the last 12 months of distributions, ISA Holdings has a trailing yield of approximately 9.6% on its current stock price of R01.74. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Last year ISA Holdings paid out 100% of its profits as dividends to shareholders, suggesting the dividend is not well covered by earnings. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. Over the last year it paid out 70% of its free cash flow as dividends, within the usual range for most companies. It's good to see that while ISA Holdings's dividends were not well covered by profits, at least they are affordable from a cash perspective. Still, if this were to happen repeatedly, we'd be concerned about whether the dividend is sustainable in a downturn. See our latest analysis for ISA Holdings Click here to see how much of its profit ISA Holdings paid out over the last 12 months. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're encouraged by the steady growth at ISA Holdings, with earnings per share up 2.1% on average over the last five years. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, ISA Holdings has lifted its dividend by approximately 14% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders. Is ISA Holdings worth buying for its dividend? Earnings per share have not grown all that much, and the company is paying out an uncomfortably high percentage of its income. Fortunately it paid out a lower percentage of its cash flow. It's not the most attractive proposition from a dividend perspective, and we'd probably give this one a miss for now. Having said that, if you're looking at this stock without much concern for the dividend, you should still be familiar of the risks involved with ISA Holdings. We've identified 3 warning signs with ISA Holdings (at least 1 which can't be ignored), and understanding these should be part of your investment process. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
2 hours ago
- Yahoo
Which European economy stands to suffer the most from US tariffs?
Germany and Ireland are standing out as the two most exposed EU economies threatened by higher US tariffs, as Brussels works towards a trade deal with Washington, amid reports that pharmaceutical tariffs could be as high as 200%. When US President Donald Trump imposed a new 25% tariff on auto imports and car parts in April, Germany was identified as the EU country with the most to lose. Brussels-based think tank Bruegel's estimation at the time was that tariffs could cost 0.4% of the country's GDP in the long term. While awaiting a new EU-US trade deal, other details emerge that could put Ireland, Denmark, and Belgium, as well as other countries, in the crosshairs should Washington target the pharmaceutical sector next. The overall impact on the European economy will depend on the actual tariff rate the US settles on and the EU's response, but the blow will not be spread evenly. According to Bruegel, the EU economy is facing significant but manageable macroeconomic consequences. They estimated in a report in April that, regarding the possible scenarios, the damage could be approximately 0.3% of the EU's GDP, depending on the outcome of the negotiations. This compares to the 1.1% real GDP growth expected in the bloc in 2025, by the European Commission's Spring Forecast. Trade with the US is significant. In 2024, the United States was the largest partner for EU exports of goods, making up 20.6% of all EU goods exports outside the bloc. Pharmaceuticals account for 15% of the EU's goods exports to the US. They are followed by the auto sector. Until there is more clarification on potential US tariffs on the pharma sector's products, 'the auto sector seems to be the most vulnerable to US tariffs as there doesn't seem to be any major exemptions planned,' said Savary. The industry has been slapped with a 25% tariff in April. 'Tariffs alone could shave around 8% off total EU trade volumes over the next five years,' said Rory Fennessy, Senior Economist at Oxford Economics, in a recent report. Countries with the highest value in goods exports to the US, facing the biggest threat to their economies, include Germany, Ireland, Italy, France and the Netherlands. The German economy relies heavily on exports, boosted by the country's motor vehicle sector. Nearly one-quarter (22.7%) of the total German exports are heading to the US. 'Germany stands out as the major European economy likely to be hit hardest by US tariffs, and we expect GDP growth to slump in the second and third quarters," Andrew Hunter, Associate Director and Senior Economist at Moody's Ratings, said to Euronews Business. Hunter also added that smaller economies, including Austria and others in central and eastern Europe, 'which are heavily integrated into Germany's industrial supply chains, will also be hit hard'. According to Bruegel, after 2025, the long-term negative impact of the tariffs could be around 0.4% of the GDP in Germany, once 'the effect has fully built up and initial short-term effects dissipated,' said Niclas Frederic Poitiers, Research Fellow at Bruegel. 'For France, the average effect would be around 0.25% of GDP.' Related Lengthy trade wars could cut global investment by one-tenth, warn economists Trump the unifier? How Europe could benefit from Trump's policies Uncertainty could lead to lost investments and jobs across the entire 27-member bloc. Hunter said that, 'even for those countries where direct exposure to US exports is relatively limited, such as France or Spain, growth is still likely to be weighed down by global weakness and uncertainty. Regarding long-term impacts, Ireland stands out as one of the most affected countries, as more than half of its goods exports (53.7%) are directed towards the US market. A lot depends on whether the pharmaceutical sector will be hit with tariffs. If so, 'Ireland will be the EU economy most at risk from these tariffs,' said Mathieu Savary, chief strategist for our European Investment Strategy at BCA Research. The research-based pharmaceutical industry is a key asset of the European economy. It is one of Europe's top-performing high-technology sectors. It contributed €311 billion in gross value added (GVA) and 2.3 million jobs directly and indirectly to the European Union's economy in 2022, according to a recent study by PWC. And the US market is crucial to the European pharma sector. According to the European Federation of Pharmaceutical Industries and Associations, in 2021, North America accounted for 49.1% of world pharmaceutical sales compared with 23.4% for Europe. And more than one-third of EU pharma exports are going to the US. If the pharma sector is hit by a 25% tariff, as it is expected by Moody's in the coming months, 'most exposed would be a number of smaller European economies like Denmark, Belgium, Slovenia and Ireland, which are generally where we think the risks of recession in Europe are highest,' Hunter said. BCA Research's chief strategist added that in this case, 'Ireland is particularly exposed to this risk,' citing that exports to the US represent 18% of Ireland's GDP, and pharma exports represent nearly 55% of Irish exports. According to BCA, the impact 'could curtail 4% to 5% to growth over time'. Bruegel estimated that Ireland's cumulative real GDP loss could be 3% by 2028. The think tank also singled out the country as the most vulnerable regarding the impact of the US tariffs on employment. Regarding how vulnerable a country is to job losses in light of US tariffs, Bruegel said that Italy was the second most-exposed country, with a high exposure in transport equipment and a high level of exposed employment in fashion and car manufacturing. Italy would also have high exposure in pharmaceuticals. Trump said on Tuesday that pharmaceutical products imported to the US are facing a 200% tariff, without disclosing any further details. According to BCA's Savary, it is not likely, because 'that would massively increase the cost of healthcare for US consumers, which is already a major issue for voters.' He sees it as a 'strong message to foreign pharma companies to adjust their pricing down and invest into producing their drugs in the US.' Savary expects 'that FDIs into the US and drug prices reduction announcements will be the end result of these talks and threats'. 'The pressure is now on for drug companies to expand US production facilities so they are effectively on the doorstep of American customers,' said Dan Coatsworth, investment analyst at AJ Bell.
Bloomberg
2 hours ago
- Bloomberg
Germany Searches for Army Recruits in Dwindling Pool of Workers
A Germany flush with cash to rearm against the threat from Russia is struggling to muster sufficient recruits in an already stretched jobs market. The military revamp, following decades of neglect, is playing out as society ages and more and more people exit the workforce. Those trends have already left firms lacking skilled staff and put officials seeking to swell the army's ranks in a bind.
