Investor Hunger for Yield Drives S&P 500 Dividend Option Growth
The contracts, which wager on cumulative dividend payments from companies in a gauge such as the Euro Stoxx 50 Index, have long been popular in Europe as a vehicle to speculate on corporate payouts and hedge long-term liabilities. Now the US is catching up.
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Yahoo
13 minutes ago
- Yahoo
European and Iranian diplomats meet in Istanbul as return of sanctions looms over nuclear deadlock
ISTANBUL (AP) — Talks between Iranian and European diplomats in Istanbul ended Friday with the sides agreeing to meet again to seek to unpick the deadlock over Tehran's nuclear program. Representatives from Britain, France and Germany, known as the E3 nations, gathered at the Iranian Consulate building for the first talks since Iran's 12-day war with Israel in June, which involved U.S. bombers striking nuclear-related facilities. The talks, which ended after four hours, centered on the possibility of reimposing sanctions on Iran that were lifted in 2015 in exchange for Iran accepting restrictions and monitoring of its nuclear program. Iranian negotiator, Deputy Foreign Minister Kazem Gharibabadi, said that the 'serious, frank and detailed' meeting focused on the nuclear issue and the status of sanctions while agreeing to further discussions. Snapback mechanism The E3 nations had earlier warned that sanctions could return under a process known as the 'snapback' mechanism, which allows one of the Western parties to reimpose U.N. sanctions if Tehran doesn't comply with its requirements. 'Both sides came to the meeting with specific ideas,' Gharibabadi said in a social media post. 'It was agreed that consultations on this matter will continue.' As the talks were ongoing, Iran's Foreign Ministry spokesman, Esmail Baghaei, said that he hoped that the meeting would see the E3 nations reassess their 'previous unconstructive attitude.' European leaders have said sanctions will resume by the end of August, if there is no progress on containing Iran's nuclear program. The snapback mechanism 'remains on the table," a European diplomat said on condition of anonymity because of the sensitivity of the talks, 'A possible delay in triggering snapback has been floated to the Iranians on the condition that there is credible diplomatic engagement by Iran, that they resume full cooperation with the IAEA (International Atomic Energy Agency), and that they address concerns about their highly-enriched uranium stockpile,' the diplomat said prior to Friday's negotiations. Rebuilding trust Tehran, meanwhile, has said that Washington, which withdrew from the 2015 deal during the first term of U.S. President Donald Trump, needs to rebuild faith in its role in negotiations. Gharibabadi previously said that Iran's engagement was dependent on 'several key principles' that included 'rebuilding Iran's trust — as Iran has absolutely no trust in the United States.' In a social media post on Thursday, he also said that the talks shouldn't be used 'as a platform for hidden agendas such as military action.' Gharibabadi insisted that Iran's right to enrich uranium 'in line with its legitimate needs' be respected, and sanctions removed. Iran has repeatedly threatened to leave the Nuclear Nonproliferation Treaty, which commits it to refrain from developing nuclear weapons, if sanctions return. Europe's role Friday's talks were held at the deputy ministerial level, with Iran sending Gharibabadi and a fellow deputy foreign minister, Majid Takht-e Ravanchi. A similar meeting was held in Istanbul in May. The identity of the E3 representatives weren't immediately clear, but the European Union's deputy foreign policy commissioner was thought to be attending. The U.K., France and Germany were signatories to the 2015 deal, alongside the U.S., Russia and China. When Washington withdrew in 2018, Trump insisted the agreement wasn't tough enough. Under the original deal, neither Russia nor China can veto reimposed sanctions. Since the Israeli and U.S. strikes on Iran, which saw American B-52 bombers hit three nuclear sites, Iranian Foreign Minister Abbas Araghchi has accused the E3 of hypocrisy, saying that they failed to uphold their obligations while supporting Israel's attacks. Uncertainty ahead Against the backdrop of the conflict, in which Iran responded with missile attacks on Israel and a strike on a U.S. base in Qatar, the road ahead remains uncertain. While European officials have said they want to avoid further conflict and are open to a negotiated solution, they have warned that time is running out. Tehran maintains that it's open to diplomacy, though it recently suspended cooperation with the IAEA. A central concern for Western powers was highlighted when the IAEA reported in May that Iran's stockpile of uranium enriched to 60% — just below weapons-grade level — had grown to more than 400 kilograms (nearly 900 pounds). In an interview with Al Jazeera that aired Wednesday, Iranian President Masoud Pezeshkian said that Iran is prepared for another war and reiterated that its nuclear program will continue within the framework of international law, while adding that the country had no intention of pursuing nuclear weapons. A spokesman for Iran's Atomic Energy Organization said Thursday that the country's nuclear industry would 'grow back and thrive again' after the recent attacks by Israel and the U.S. ___ Stephanie Liechtenstein reported from Vienna. Nasser Karimi and Amir Vahdat contributed to this report from Tehran, Iran. ___ The Associated Press receives support for nuclear security coverage from the Carnegie Corporation of New York and Outrider Foundation. The AP is solely responsible for all content. ___ Additional AP coverage of the nuclear landscape: Andrew Wilks And Stephanie Liechtenstein, The Associated Press Sign in to access your portfolio
Yahoo
13 minutes ago
- Yahoo
As INEOS looks to grow in the US, it must deal with Trump's tariffs and the 'Chicken Tax' on trucks
While Land Rover has its new Defender, some customers yearn for the old boxy, body-on-frame brute. The one that seemed to be in every issue of National Geographic in the '70s and '80s. Enter the INEOS Grenadier. The brainchild of billionaire Jim Ratcliffe, founder of London's INEOS Group, the Grenadier is the spiritual successor of those older British off-roaders. The rugged Grenadier went on sale in the US last year, and things started well, with decent sales of around 8,000 units, starting at $78,900, and targeted sales growth of 50%. But then, INEOS got hit with President Trump's tariffs. INEOS builds its vehicles in France, and that means it's under EU trade restrictions and gets hit with a 25% US auto sector tariff, which could be more if the EU doesn't get a deal done with the White House by Aug. 1. 'We find ourselves right in the eye of the storm,' INEOS CEO Lynn Calder told Yahoo Finance. 'So even once there was a tariff deal negotiated ... between the UK and the US, that meant nothing for us.' Currently, UK auto imports to the US "only" face a 10% tariff rate. Read more: What Trump's tariffs mean for the economy and your wallet In April, INEOS said it would be capping tariff price increases at 5% on its vehicles. While a 15% proposed tariff on EU goods like autos sounds better than the alternative of 25% and up, a peculiar issue affects INEOS with regard to its latest product, the pickup truck version of the Grenadier known as the Quartermaster. 'The Quartermaster is also a European-made pickup truck that also attracts [a] 'chicken tax.' So we've taken an absolute double whammy on this vehicle, which is a perfect car for the US market,' Calder said. The "chicken tax" is a remnant of trade policy originating in the 1960s. Following European tariffs on US poultry, the US imposed a 25% tariff on foreign-made light trucks — a trade policy that still stands today. At the time, the tariffs on light-duty trucks were a protectionist measure against Volkswagen (VWAGY). This means there is a 50% tariff right now on the Quartermaster, Calder said, which currently starts at $92,900. A quick trade resolution can't come fast enough for European automakers like INEOS. If and when that comes to pass, INEOS can focus on its next offering in the US, the midsize Fusilier SUV, which will come in both EV and range-extending hybrid options and likely have a lower starting price. And looking beyond that, Calder said the option of building INEOS vehicles in the US is on the table. Assuming it's feasible, the move would make sense for an automaker targeting the lion's share of its sales in the States. INEOS is going to need all the help it can get. It is competing in a hyper-competitive luxury SUV market in the US dominated by Cadillac (GM), BMW ( Mercedes (MBGAF), and Land Rover. A hybrid, midsize SUV like the Fusilier, made in the US, would help make INEOS a bigger player in an SUV-crazed market. Chicken tax or no chicken tax. Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
Chicago Tribune
15 minutes ago
- Chicago Tribune
Wall Street hovers near records in premarket trading as attention turns to next week's busy schedule
Wall Street was on track to open with gains on Friday, adding to record highs ahead of next week's busy slate of earnings, job market reports, a Federal Reserve policy meeting and the tariff deadline. Futures for the S&P 500 and the Dow Jones Industrial Average both were up 0.1% before the bell. Nasdaq futures were flat. The S&P and Nasdaq both closed at record highs on Thursday and markets are currently on track to finish the week with gains for the fourth time in the past five weeks. Intel shares tumbled more than 7% overnight after the chipmaker announced plans to reduce its 'core' workforce by nearly one-quarter and cut other expenses in a bid to revive the fortunes of the struggling chipmaker. Intel, which helped launch Silicon Valley as the U.S. technology hub, has fallen behind rivals like Nvidia and Advanced Micro Devices while demand for artificial intelligence chips soars. Deckers Brands was up more than 13% overnight after the shoe company easily beat Wall Street's sales and profit targets. Deckers said first-quarter sales rose 17% from the same quarter last year, to $965 million, on the strength of its Ugg and Hoka brands. Boston Beer Co., the maker of Samuel Adams beer and Truly hard seltzer, climbed 7.8% after its second-quarter profit came in well ahead of analysts' forecasts. Boston Beer saw its net income rise more than 15% over last year, boosting its earnings per share in the period to $5.45. Analysts were expecting profit of $3.86 per share. Stocks have broadly been rallying for weeks on hopes that President Donald Trump will reach trade deals with other countries that will lower his stiff proposed tariffs, along with the risk that they could cause a recession and drive up inflation. The deadline for those negotiations comes next Friday, Aug. 1. Next week brings the peak of earnings season, with more than 100 companies in the benchmark S&P 500 reporting their latest results. The Fed, under pressure from President Trump to lower its benchmark borrowing rate, will announce its latest decision on interest rates Wednesday. Despite pressure coming from the White House, most analysts think the Fed will stand pat, leaving its benchmark rate alone for the fifth straight time. The economic data calendar is also full, with three separate reports on the labor market, including the always closely-watched monthly jobs report. Elsewhere, in Europe at midday, Germany's DAX shed 0.8%, while Britain's FTSE 100 slid 0.4%. In Paris, the CAC 40 slipped 0.1%. In Asian trading, Japan's Nikkei 225 fell 0.9% to 41,456.23 after two days of gains following President Donald Trump's announcement of a trade deal that would place a 15% tax on imports from Japan. That's lower than the 25% rate that Trump had earlier said would kick in on Aug. 1. Data released on Friday showed the inflation rate in Japan's capital Tokyo rose 2.9% year-on-year in July, down from 3.1% in June. Japanese government efforts to moderate inflation are working, though underlying Tokyo price pressures remain elevated, ING Economics said in a commentary. It expects the Bank of Japan to hold interest rates steady at its July 30-31 meeting, but said the central bank would likely raise its forecast for inflation. In Chinese markets, Hong Kong's Hang Seng lost 1.1% to 25,388.35 and the Shanghai Composite index slid 0.3% to 3,593.66. Next week, U.S. Treasury Secretary Scott Bessent has said he will meet with Chinese officials in Stockholm, Sweden, to work toward a trade deal with Beijing ahead of an Aug. 12 deadline. Trump has said a China trip 'is not too distant' as trade tensions ease. '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 Economics said. In South Korea, the Kospi picked up 0.2% to 3,196.05, while Australia's S&P/ASX 200 shed 0.5% to 8,666.90. Taiwan's Taiex edged less than 0.1% lower, and in India, the Sensex fell 0.9%. On Thursday, the S&P 500 added 0.1% to its all-time high set the day before, closing at 6,363.35. The Dow Jones Industrial Average fell 0.7% to 44,693.91, while the Nasdaq composite rose 0.2% to a record 21,057.96. In energy trading, U.S. benchmark crude oil added 27 cents to $66.30 per barrel. Brent crude, the international standard, also rose 27 cents to $68.63 per barrel. The U.S. dollar rose to 147.65 Japanese yen from 147.00 yen. The euro fell to $1.1723 from $1.1750.
