Bloomberg Daybreak: Europe 06/30/2025
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Bloomberg
33 minutes ago
- Bloomberg
ECB's Rehn Worried About Effects of Lengthy Inflation Undershoot
European Central Bank Governing Council member Olli Rehn is worried that inflation staying below 2% for a lengthy period could shift the price outlook of euro-zone consumers. The ECB is projecting 18 months of inflation below its goal as US tariffs dent confidence and the 20-nation economy struggles to expand. Rehn, who heads Finland's central bank, said risks are currently two-sided, but is more uneasy about the knock-on effects of the undershoot.
Yahoo
43 minutes ago
- Yahoo
Is FedEx's High-Yielding Dividend Safe?
The package delivery giant's dividend is above average and yields 2.5% today. FedEx's growth prospects are concerning given the state of international trade. Although it recently beat expectations, analysts worry about FedEx's future growth. 10 stocks we like better than FedEx › FedEx (NYSE: FDX) is a logistics giant that's known all around the world. It's been a safe, blue chip stock to own over the years. Not only does it have strong financials and post consistent profits, but it also offers investors an attractive dividend, which currently yields 2.5% -- much higher than the S&P 500's 1.2% payout. There have, however, been concerns of late about its growth. Trade wars and tariffs are weighing on businesses, and the worry is that a recession may be on the horizon in not only the U.S., but in other countries as well. And a slowdown has already been taking a toll on the business. Given the challenges FedEx is facing, should you be worried about its dividend? On June 24, FedEx posted its fourth-quarter earnings numbers for the period ended May 31. The company finished the fiscal year with revenue totaling $22.2 billion -- nearly unchanged from the $22.1 billion it posted in the previous fiscal year. Net income improved slightly, from $1.47 billion a year ago to $1.65 billion this past year. It wasn't a bad performance at all, and the company beat expectations for the most recent quarter as adjusted earnings per share (EPS) of $6.07 came in higher than Wall Street estimates of $5.84. The company's cost-cutting efforts have been paying off. But for the current fiscal year, FedEx still doesn't expect to see a lot of growth. It is projecting flat to 2% gain in revenue, as it's still bracing for some challenging economic headwinds. FedEx currently pays a quarterly dividend of $1.45, which it recently increased by 5% from the $1.38 it was paying just a few months ago. This means that over the course of a full year, it's paying $5.80 per share to each shareholder. At that rate, the payout looks fairly safe. Consider that in its most recent quarter, its adjusted EPS was already more than this figure. Over the course of a full year, there's little doubt that its earnings will be strong enough to support this level of dividends. FedEx's payout ratio is around 33%, which not only is sustainable, but leaves a lot of room for the company to continue raising its dividend. Unless the company's earnings were to drastically nosedive -- and there's no reason to believe that will happen anytime soon -- there shouldn't be much concern about its dividend today. FedEx has been struggling to grow in recent years, but that is largely a result of economic challenges, which likely won't persist over the long term. This is still a trusted logistics company that should benefit from continued growth in e-commerce and international trade. It may take some time and patience, but this isn't a stock I'd bet against, as it has a strong brand and vast network, and it's in a good position to benefit from strong economic growth. While its near-term prospects may not look great, this can be a good stock to buy on weakness right now. Although you may be concerned about the 19% drop in value this year (returns as of June 27), the business' fundamentals remain solid, especially as it continues to focus on efficiency and driving costs down. Trading at just 12 times its estimated future earnings, this can be a solid income-generating stock to hang on to for the long haul. Before you buy stock in FedEx, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and FedEx wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $722,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $968,402!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FedEx. The Motley Fool has a disclosure policy. Is FedEx's High-Yielding Dividend Safe? was originally published by The Motley Fool Sign in to access your portfolio
Motor 1
an hour ago
- Motor 1
Ferrari Admits It Made a Mistake When It Deleted Real Buttons
When Ferrari showed the Amalfi last night, we were pleased to see that the Roma's successor received a more powerful V-8 without resorting to a hybrid setup. Another highlight is inside, where the 'entry-level' Prancing Horse now features a redesigned steering wheel with physical buttons and a proper start button. Why the change? Maranello responded to customer complaints about capacitive-touch keys, which many found frustrating, and is now reverting to physical controls. The Amalfi leads the way, but all future Ferrari models will feature physical buttons on the steering wheel. Commercial boss Enrico Galliera told Autocar that real buttons 'will be deployed in every new launch we put in the market.' Even better, product development boss Gianmaria Fulgenzi told Top Gear that a retrofit for existing models is possible. Current owners won't have to replace the entire steering wheel; only the center section needs to be swapped, and the procedure can be done at a dealer without shipping the car back to Italy. Photo by: Ferrari Photo by: Ferrari But why did Ferrari embrace touch-sensitive keys in the first place? According to Galliera, it began with the SF90 and the idea of equipping the mid-engine supercar with the latest available technology at the time. However, the company soon realized this approach wasn't '100% perfect for the use that is done in the car.' He added, 'This became clear, and it was feedback that we received very loudly from our clients.' Galliera believes touch buttons are 'extremely innovative' but admits Ferrari failed to consider that 'when you use it, you're also driving, and the end result [goes against] our objective of eyes on the road, hands on the steering wheel.' The intent was to replicate the speed and familiarity of using a smartphone, but that didn't go as planned. Although touch controls tend to be frustrating, the haptic interface hasn't deterred buyers. Ferrari had record sales in 2024, delivering 13,752 cars, or up 0.7% from the previous year. It has enough customer orders to cover production through the end of next year , meaning newly placed orders won't be fulfilled until 2027. 2027 Ferrari Amalfi 29 Source: Ferrari Ferrari isn't the only automaker moving away from touch controls on steering wheels. Last year, Volkswagen reinstated physical buttons on the GTI, R, and even the lesser R-Line trim, which is sold outside the United States. For future models, VW is also bringing back some proper buttons on the center console. However, the era of dashboards with dedicated climate and frequently used controls is slowly fading. Sure, exceptions still exist (Toyota and Hyundai/Kia spring to mind), but for the most part, it's all about screens now. Heck, even Ferraris now have an extra display just for the front passenger. Catch Up With Ferrari: Lewis Hamilton Hypes Up The Ferrari F80: 'Fastest Road Car I've Ever Been In' The Electric Ferrari Isn't Coming This Year Sources: Autocar , Top Gear Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
