Latest news with #DanniHewson
Straits Times
6 days ago
- Business
- Straits Times
Trump's make-believe tariffs can still hurt us all. Here's why
US President Donald Trump is unpredictable by design and his behaviour puts some famous thought experiments into new focus, says the writer. If US President Donald Trump announces a tariff on Truth Social, but never actually imposes it, did it exist? If news that tariffs are coming prompts companies to 'front-run' the levies, do they even need to happen? If tariffs are imposed, importers pay them, and yet, there's no seeming effect on prices, need we worry about them? 'The boy who cried tariffs continues to warble his perplexing ballad of random numbers from the White House,' complained Ms Danni Hewson of London investment house AJ Bell this week. 'Investors are listening, and nodding to acknowledge the latest verse, but largely getting on with business as usual. Most are probably waiting for the wolf to actually show up before properly evaluating the danger.'
RTÉ News
10-07-2025
- Business
- RTÉ News
Markets 'shaken but not stirred' by Trump's latest tariff threats
Markets are "shaken but definitely not stirred" by the latest US tariff threats, according to financial analysit Danni Hewson. On Tuesday the White House confirmed that the high tariffs on imports from most countries - which were due to come into effect on 9 July - would be delayed until 1 August. That was to give time for countries to conclude trade deal negotiations. At the same time, however, US President Donald Trump suggested that some countries would face higher tariffs than initially set out on his 'Liberation Day' announcement in April. He also said higher tariffs would be introduced for certain sectors - including a potential 200% tariff on pharmaceuticals. But despite all of this, markets have remained relatively calm. "There was a phrase coined a little while ago - the TACO trade; Trump Always Chickens Out," said Danni Hewson, head of financial analysis at AJ Bell. "I think markets have really taken that to heart - they've become a bit desensitised to some of these moves that he makes. "They've just gotten used to Trump 2.0 and they've decided that, when he brings these in that there is potentially an awful lot of wiggle room from what is the initial announcement and what then follows," she said. One example of markets shrugging off the tariff threat is chip-maker Nvidia. Its shares plummeted in April, as the initial threat of tariffs was seen as a threat to global demand for its products. But the share price quickly recovered and - despite semiconductors being named this week as one of the sectors that would face high tariffs - it reached new highs yesterday. "We've seen some remarkable moves by companies like Nvidia in the wake of those Liberation Day tariff announcements," said Ms Hewson. "It slumped massively in the wake of that but it's now recovered all of that, and then some, becoming the world's most valuable company. "It did end up slightly down at $3.97 trillion - but when you're talking about a company that, not so long ago, was valued at $500m, I don't think many people are going to quibble at that." She said this was a clear sign, though, that markets are putting aside the threat of tariffs and focusing on things like the artificial intelligence boom. "But we have got [Nvidia] earnings coming up and I think investors are going to be looking at the impact of tariffs on those," she said. One move that did surprise markets yesterday was the announcement by Linda Yaccarino that she was stepping down from her role as CEO of social media platform X. Tasked with repairing the relationship between X and advertisers, Ms Hewson said that many felt she was ultimately CEO in name only. "X is a very different place than it was when it was Twitter - some advertisers will never come back," she said. "Elon Musk is taking things in a very different direction - subscription models and that kind of thing - so maybe he doesn't need advertisers as much". "For Tesla shareholders - which were down again yesterday - they'll be thinking does that mean he's now got to take control [at X] while he looks for someone else to take on the CEO role," she added.
Yahoo
07-07-2025
- Business
- Yahoo
World Chocolate Day: The EU is celebrating with sky-high prices
Cocoa and powdered chocolate prices jumped by more than 16% in the EU in May 2025 compared to the previous year. Prices in the bloc of 27 countries have been gradually increasing for the last 12 months, with annual 'cocoa inflation' going from 6.3% to 16.2%, according to Eurostat. One of the major reasons behind this is that there has been a surge in the prices of cocoa beans, the main ingredient in chocolate, over the past two years. This was coupled with increases in the cost of sugar and energy. The EU is entirely reliant on cocoa imports and accounts for more than half of the imports worldwide. The majority of the crop that is exported to the EU is grown in West Africa, where the harvest was hit by bad weather in the most important cocoa-producing regions, such as Ghana and Ivory Coast. 'Cocoa prices have almost tripled compared to the level two years ago,' Susannah Streeter, head of money and markets at Hargreaves Lansdown, told Euronews Business, adding that 'prices raced to record levels last year and have seen volatile patterns of trading over the past few months'. While prices have eased from peaks above $12,000 per tonne, they remain elevated in both the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE) in London. Concerns over the cocoa supply have eased a little from their peak in May 2025, to the beginning of July. 'Chocolate lovers will be relieved to hear that cocoa prices have fallen to an eight-month low in recent days and London futures today are a whopping 42% below where they were at the start of the year,' said Danni Hewson, head of financial analysis at AJ Bell. London Cocoa Futures were around £5,310 ($7,236) per metric tonne on Monday, more than twice the price it was exactly two years ago. She said that, 'the fact that consumers have been willing to keep stumping up for chocolate even as prices surged has tempted growers to invest in the crop, and the supply outlook has been improving,' which explained the declining prices. However, due to climate change-related risks, including diseases like black pod, which have been exacerbated, 'some plantations have ageing treeor mays, and the trade uncertainty created by Donald Trump's tariffs has only deepened that uncertainty which is expected to limit any downside when it comes to cocoa prices,' Danni added. Related Soaring cocoa prices prove a costly treat for Valentine's Day lovers Resellers mark up 'Dubai chocolate' as TikTok feeds sweet treat craze As bakeries across the continent struggle to grapple with the price increase of this essential ingredient, cocoa prices in the EU and the UK are not expected to fall substantially any time soon, according to a recent report by UK-based strategic consultancy Foresight Transitions. Global prices of cocoa beans are having a major impact on the continent's cost of chocolate. The EU's chocolate consumption is the highest in the world and the bloc is entirely reliant on cocoa imports, mainly from countries in West Africa, where the cocoa harvest is highly exposed to climate or biodiversity-related risks. According to the report, escalating cocoa prices cost European jobs too, citing the world's largest chocolate producer, Barry Callebaut, having laid off almost 20% of workers, a third of which are based in the EU, due to the rising cost of cocoa. 'The rise in the cost of cocoa, which is such a crucial ingredient, is causing a big headache for chocolate manufacturers, given that they are also having to cope with absorbing higher energy costs and wage growth,' said Streeter about the UK market. In May 2025, inflation was accompanied by a record jump in chocolate prices and the cost of chocolate was 17.7% higher than a year previously, according to ONS. 'The outlook for prices ahead remains volatile, given that unpredictable weather patterns affecting cocoa farmers, including droughts and extreme rainfall, is likely to continue longer-term,' Streeter said. Sign in to access your portfolio
Euronews
07-07-2025
- Business
- Euronews
World Chocolate Day: The EU is celebrating with sky-high prices
Cocoa and powdered chocolate prices jumped by more than 16% in the EU in May 2025 compared to the previous year. Prices in the bloc of 27 countries have been gradually increasing for the last 12 months, with annual 'cocoa inflation' going from 6.3% to 16.2%, according to Eurostat. One of the major reasons behind this is that there has been a surge in the prices of cocoa beans, the main ingredient in chocolate, over the past two years. This was coupled with increases in the cost of sugar and energy. The EU is entirely reliant on cocoa imports and accounts for more than half of the imports worldwide. The majority of the crop that is exported to the EU is grown in West Africa, where the harvest was hit by bad weather in the most important cocoa-producing regions, such as Ghana and Ivory Coast. 'Cocoa prices have almost tripled compared to the level two years ago,' Susannah Streeter, head of money and markets at Hargreaves Lansdown, told Euronews Business, adding that 'prices raced to record levels last year and have seen volatile patterns of trading over the past few months'. While prices have eased from peaks above $12,000 per tonne, they remain elevated in both the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE) in London. Concerns over the cocoa supply have eased a little from their peak in May 2025, to the beginning of July. 'Chocolate lovers will be relieved to hear that cocoa prices have fallen to an eight-month low in recent days and London futures today are a whopping 42% below where they were at the start of the year,' said Danni Hewson, head of financial analysis at AJ Bell. London Cocoa Futures were around £5,310 ($7,236) per metric tonne on Monday, more than twice the price it was exactly two years ago. She said that, 'the fact that consumers have been willing to keep stumping up for chocolate even as prices surged has tempted growers to invest in the crop, and the supply outlook has been improving,' which explained the declining prices. However, due to climate change-related risks, including diseases like black pod, which have been exacerbated, 'some plantations have ageing treeor mays, and the trade uncertainty created by Donald Trump's tariffs have only deepened that uncertainty which is expected to limit any downside when it comes to cocoa prices,' Danni added. No easing of chocolate prices in Europe any time soon As bakeries across the continent struggle to grapple with the price increase of this essential ingredient, cocoa prices in the EU and the UK are not expected to fall substantially any time soon, according to a recent report by UK-based strategic consultancy Foresight Transitions. Global prices of cocoa beans are having a major impact on the continent's cost of chocolate. The EU's chocolate consumption is the highest in the world and the bloc is entirely reliant on cocoa imports, mainly from countries in West Africa, where the cocoa harvest is highly exposed to climate or biodiversity-related risks. According to the report, escalating cocoa prices cost European jobs too, citing the world's largest chocolate producer, Barry Callebaut, having laid off almost 20% of workers, a third of which are based in the EU, due to the rising cost of cocoa. 'The rise in the cost of cocoa, which is such a crucial ingredient, is causing a big headache for chocolate manufacturers, given that they are also having to cope with absorbing higher energy costs and wage growth,' said Streeter about the UK market. In May 2025, inflation was accompanied by a record jump in chocolate prices and the cost of chocolate was 17.7% higher than a year previously, according to ONS. 'The outlook for prices ahead remains volatile, given that unpredictable weather patterns affecting cocoa farmers, including droughts and extreme rainfall, is likely to continue longer-term,' Streeter said.
Yahoo
04-07-2025
- Business
- Yahoo
Nvidia is on track to become the most valuable company in history
The AI chipmaker Nvidia's shares hit a new all-time high on Thursday, briefly giving the company a market capitalisation of $3.92 trillion (€3.33tn), the highest in history for any company. This surpassed Apple's record of $3.91tr set in December 2024, even though Nvidia's market capitalisation dipped once again below this level at market close. The chipmaker's shares traded as high as $160.98 at their peak on Thursday, before the price dipped below this level, placing the market capitalisation at around $3.89tr when daily trading wrapped up. Tech companies' shares benefitted from a better-than-expected nonfarm payrolls report in the US, an indicator of a resilient US economy. This optimism was boosted by forecasts that businesses would continue to spend on AI advances, boosting demand for AI chips. Related Nvidia shares surge as earnings beat despite chip export restrictions to China Nvidia expects $5.5bn revenue hit as US curbs chip exports to China Nvidia shares are up more than 50% in just less than two months. Analysts expect that the company will break the valuation record soon and retain its elevated share price by the close of the trading day. 'Chip giant Nvidia is on track to achieve a new closing high,' said Dan Coatsworth, investment analyst at AJ Bell, adding that the 'AI revolution is still intact'. AJ Bell head of financial analysis Danni Hewson added that, 'After all the gloomy predictions that this might be the year the AI bubble bursts, Nvidia's found another gear. The chipmaker is on track to smash a coveted record and become the world's most valuable company ever.' The value of Nvidia currently is more than three times the total market capitalisation of the stock market in Spain and more than four times that of the Italian stock exchange. 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
