Latest news with #FTSE100
Yahoo
2 hours ago
- Business
- Yahoo
Trending tickers: latest investor updates on Nike, Xiaomi, Cyngn, Spotify, Core Scientific and Unilever
Nike (NKE) shares surged by almost 10% in after-hours trading, fuelled by growing investor optimism that the company's long-awaited turnaround strategy may finally take hold, even as it posted its worst quarterly earnings in over three years. On Thursday, the Oregon-based sportswear giant reported fourth-quarter revenues of $11.1bn (£8bn), surpassing analyst expectations, though it marked the lowest revenue figure since Q3 2022. Net income plummeted 86% to $211m, or 14 cents per share, compared to $1.5bn, or 99 cents per share, in the same period last year—yet still exceeded Wall Street forecasts. Nike's (NKE) chief executive Elliott Hill said: 'The results we're reporting today in Q4, and in FY 25 are not up to the Nike standard." The company also warned that US president Donald Trump's trade tariffs could cost it around an extra $1bn. Amid these results, Mamta Valechha, a consumer discretionary analyst at Quilter Cheviot, remained cautious. 'Nike (NKE) continues to slump, with its fourth quarter the worst in at least two decades. Sales were down 12%, while its operating margin was a meagre 2.9%. The sales themselves had actually come in ahead of really low expectations, producing an earnings beat.' Read more: FTSE 100 LIVE: Stocks higher as US and China sign trade agreement, US says 10 deals imminent Valechha pointed to underlying challenges, adding: 'These troubling numbers, though, suggest that Nike (NKE) may nearly be at rock bottom. The share price rallied strongly in after-market trading as investors are beginning to expect a positive rate of change going forward. It has been a difficult period for Nike following the pandemic, and the threat of tariffs simply is not helping the situation for the company.' Though the company's outlook for the coming quarter remains grim, Valechha noted that the road to recovery would likely be gradual. 'It will be a slow recovery, however. Management is expecting further sales declines and record-low operating margins for Q1. That said, it is setting itself a low bar, hoping to give itself room for manoeuvre and the ability to beat expectations from investors and begin to drive positive momentum back into the business.' Nike's (NKE) strategy to clean up inventory levels and reduce discounting could be pivotal in driving future growth. However, Valechha said that fresh, in-demand product launches are crucial. 'Ultimately, Nike needs to produce new products that people want to buy, bringing about increased demand to help bring sales back to the company. The green shoots of recovery are beginning to show themselves in some divisions, but more could soon be on the way.' Shares of Hong Kong-listed Xiaomi ( surged more than 5% to reach a record high on Friday before closing with 3.6% gains, following an overwhelming customer response to its new electric vehicle (EV). The consumer electronics giant, which has quickly expanded into the EV market, is now directly challenging Tesla (TSLA) with its latest offering, the YU7 electric luxury SUV. On Thursday, CEO Lei Jun revealed that the YU7's starting price would be 253,500 yuan ($35,322), undercutting Tesla's (TSLA) Model Y by 10,000 yuan. Tesla's Model Y starts at 263,500 yuan in China. Lei's announcement comes as part of Xiaomi's ( broader strategy to become a serious player in the electric vehicle sector, which has seen intense competition from industry leaders like Tesla. According to Xiaomi ( the YU7 received more than 200,000 orders within just three minutes of its official launch, a sign of the growing consumer appetite for EVs, especially those offering more affordable alternatives to established brands. Ahead of the vehicle's price revelation, analysts at Citi had forecasted that the YU7 would be priced between RMB 250,000-320,000 ($34,800 to $44,590), with expected monthly sales of around 30,000 units. Citi further predicted that as sales gain momentum, Xiaomi ( could reach annual sales figures of between 300,000 and 360,000 units. Cyngn (CYN) shares closed 1271% higher on Thursday and were 30% higher in pre-market trading, after the industrial automation company revealed a partnership with Nvidia (NVDA). The collaboration will see Cyngn's (CYN) vehicles, powered by Nvidia's (NVDA) Isaac robotics platform and the company's proprietary DriveMod software, change automation across industries such as logistics and manufacturing. The partnership is designed to enhance operational safety and efficiency within commercial operations. Cyngn's (CYN) announcement came ahead of its participation at Automatica 2025, a global robotics event where the company, along with several other robotics firms, will demonstrate Nvidia-powered technologies. Automatica is regarded as a prime stage for unveiling AI-driven systems in real-world industrial settings. The meteoric rise in Cyngn's (CYN) stock price marks a stark contrast to the company's recent struggles. Over the past 12 months, Cyngn had endured a near-total loss of its market value, driven by a series of setbacks that included delisting risks and disappointing earnings results over four consecutive quarters. However, the company has since regained Nasdaq (^IXIC) compliance in March 2025, paving the way for its dramatic comeback. Investors are now hoping that this partnership with Nvidia (NVDA) will mark the beginning of a sustained recovery for Cyngn (CYN). Spotify's (SPOT) shares were trading higher ahead of the US market open, following a 5% increase in the previous session, as analysts raised their price target in anticipation of the company's Q2 earnings report. Guggenheim Securities analyst Michael Morris reaffirmed his 'buy' rating on the stock and lifted his 12-month price target to $840 from $725. In a note to clients on Wednesday, Morris expressed confidence in Spotify's (SPOT) growth trajectory. 'Our conviction in the mid- and long-term growth opportunity at the global streaming audio leader remains intact,' he said. Morris highlighted several factors fuelling his optimism, including Spotify's (SPOT) 'core pricing power, potential tier expansion, expanded delivery of audio formats (led by audiobooks and podcasts), and the early-stage commerce opportunity presented by app-store changes". Read more: Why BP could still be a target as Shell quashes takeover rumours Spotify (SPOT) stock reached a milestone on Wednesday, achieving its third consecutive record high. The company is set to release its second-quarter 2025 results and shareholder presentation on Tuesday, 29 July, before the market opens. Core Scientific (CORZ) shares saw a significant boost ahead of the US market open, following a 35% rally on Thursday triggered by a Wall Street Journal report revealing that artificial intelligence infrastructure vendor CoreWeave (CRWV) is in talks to acquire the bitcoin (BTC-USD) mining and hosting provider. The stock was briefly halted after the news broke, then resumed trading with its second-largest rally since Core Scientific's (CORZ) return to the Nasdaq (^IXIC) in January 2024, following a successful reorganisation. The company's biggest one-day jump came in June 2024, when shares surged 40% after the announcement of a major AI business expansion with CoreWeave (CRWV). According to the Journal, citing sources familiar with the situation, a potential transaction could be finalised in the coming weeks, pending any unforeseen obstacles. The deal would deepen an existing partnership between the two companies, which already includes billions of dollars in contracted commitments. With Thursday's surge, Core Scientific (CORZ) now has a market capitalisation of nearly $5bn, approximately five times the valuation implied by CoreWeave's (CRWV) previously rejected takeover bid from last year. Meanwhile, CoreWeave's stock fell by about 1% on Thursday. Unilever (ULVR.L) is paying $1.5bn to acquire US-based personal care brand Dr Squatch, according to the Financial Times. The FTSE 100-listed (^FTSE) company announced the acquisition on Monday, purchasing Dr Squatch from private equity firm Summit Partners for an undisclosed sum, though sources familiar with the transaction have confirmed the $1.5bn price tag. The deal signals the consumer goods giant's continued focus on upmarket, higher-growth sectors, despite its previous setbacks with razor subscription service Dollar Shave Club. Dr Squatch, known for its "natural" soaps, deodorants, shampoos, and other personal care products, has carved out a niche in the competitive male grooming market. The brand has built momentum through viral marketing campaigns and celebrity endorsements, including an ad with Hollywood actress Sydney Sweeney in a bubble bath and another with boxing legend Mike Tyson taking an ice bath. The brand's products are sold directly to consumers through its website and through third-party retailers, helping it establish a direct-to-consumer business model that has been integral to its rapid growth. For Unilever (ULVR.L), the acquisition marks an effort to recalibrate its portfolio by investing in categories with higher growth potential, particularly in the premium and natural personal care segments. This follows a series of strategic acquisitions aimed at bolstering its position in the fast-growing male grooming 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
Yahoo
6 hours ago
- Business
- Yahoo
The FTSE 100's worst stock for passive income could be a long-term growth opportunity to consider!
Founded in 1996, Polar Capital Technology Trust's (LSE:PCT) a stock that won't appeal to those on the lookout for passive income opportunities. That's because it doesn't pay a dividend. In fact, it never has. And it's the only current member of the FTSE 100 that adopts this approach to shareholder distributions. Instead, it focuses on capital growth. During the five years to 31 May, the trust's share price has increased 71% and its net asset value's risen 119%. This compares favourably to another FTSE 100 technology-focused trust – Scottish Mortgage Investment Trust – that's seen its share price rise by 38% during this period. However, this fund invests heavily in unquoted companies, which can be difficult to value. By contrast, much of Polar Capital's growth can be attributed to having positions in each of the 'Magnificent 7'. At the end of May, six of these stocks were in the trust's top 10 holdings. However, it should be pointed out that an equal investment in all seven would have generated a return of over 300% since June 2020. But it's wise to have a diversified portfolio. By spreading risk across multiple positions, it's possible to mitigate some of the volatility that arises from investing in the stock market. And that's one of the advantages of an investment trust. By owning one stock, an investor will have exposure to multiple companies often in different jurisdictions. However, although Polar Capital has positions in 98 stocks, they're all in the same sector. Its manager is particularly keen on artificial intelligence (AI). Indeed, it describes itself as an 'AI maximalist'. Also, over 30% of its exposure is to the semiconductor industry. This could be a concern because history tells us that these types of stocks can be volatile. The tech-heavy Nasdaq dropped 75% between March 2000 and October 2002. But the trust's currently (27 June) trading at a near-10% discount to its net asset value. In theory, this means it's possible to gain exposure to the world's biggest tech stocks for less than their market value. However, over 70% of its value comes from North American stocks. Here, there's still a significant degree of uncertainty as to how President Trump's approach to tariffs will affect the economy. According to JP Morgan, there's a 40% chance of a recession this year. And due to their lofty valuations, a downturn's likely to affect the tech sector — and the Magnificent 7 in particular — more than most. For those who believe technology stocks will continue to deliver over the long term, I think Polar Capital Technology Trust's a share to consider. But only as part of a well-diversified portfolio. And anyone taking a position shouldn't expect to receive a dividend any time soon. The post The FTSE 100's worst stock for passive income could be a long-term growth opportunity to consider! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. James Beard has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon, Apple, Cloudflare, Meta Platforms, Microsoft, and Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
The Independent
21 hours ago
- Business
- The Independent
Tariff optimism lifts shares after US-China deal
European blue-chips ended solidly higher on Friday, shaking off robust US data which may have cemented another Federal Reserve hold next month, with tariff optimism lifting morale. The FTSE 100 index closed up 63.31 points, 0.7%, at 8,798.91. The FTSE 250 was up 241.30 points, 1.1%, at 21,715.96, and the AIM All-Share added 2.29 points, 0.3%, at 769.33. For the week, the FTSE 100 added 0.3%, the FTSE 250 surged 2.7% and the AIM All-Share gained 1.3%. Over the course of the whole first half of the year, the FTSE 100 has climbed 7.7%. In European equities on Friday, the CAC 40 in Paris jumped 1.8%, while the DAX 40 in Frankfurt surged 1.6%. The pound was quoted lower at 1.3713 dollars at the time of the London equities close, compared to 1.3733 dollars on Thursday. The euro stood at 1.1717 dollars, higher against 1.1698 dollars. Against the yen, the dollar was trading higher at 144.75 yen compared with 144.48 yen. The yield on the US 10-year Treasury was quoted at 4.27%, narrowing from 4.28%. The yield on the US 30-year Treasury was quoted at 4.82%, narrowing from 4.84%. In New York, the Dow Jones Industrial Average was up 1.0%, while the S&P 500 and Nasdaq Composite each added 0.6%. 'Stock markets this week have been on a frenzy, with Nasdaq leading the US Indices to new all-times on Wednesday and the S&P 500 is joining its tech-focused colleague,' Oanda analyst Elior Manier commented. 'Markets are awaiting and getting a few good news on the US trade deals – the latest is the White House announcing that July 9 is in the end not too important, and Trump mentioning the completion of a deal with China, however the details are still missing.' The analyst added: 'Even the release of PCE data hasn't sparked major volatility. The buying momentum after the de-escalation and ceasefire in the Middle East really has been mind-boggling. Dip buyers have had the hand in the past five years, particularly when bullish catalysts come into play (or bearish catalysts fade away). A three-month recovery took the [S&P 500] back from 4,800 all the way to 6,160 current levels.' The US Federal Reserve's key inflationary gauge, the core personal consumption expenditures price index, was higher than anticipated in May, data published by the Bureau of Economic Analysis showed Friday. Annual core PCE inflation was 2.7% in May, accelerating a notch from 2.6% in April, the latter upwardly revised from 2.5%. Market consensus for May had been 2.6%, according to FXStreet. With core PCE inflation rising, it is unlikely that the Federal Reserve will cut US interest rates before September, much to the chagrin of President Donald Trump, who is pushing for immediate rate cuts. The White House said on Thursday no decision is imminent on naming a successor to Federal Reserve chairman Jerome Powell, after a report suggested the president could do so this summer. 'No decisions are imminent, although the president has the right to change his mind,' a White House official told AFP. 'The president has many good options to nominate as the next Federal Reserve chairman,' the official added. Mr Powell's term as chief of the independent central bank ends in May 2026, and the choice of a successor by this summer or autumn would be sooner than usual. But a Wall Street Journal report late Wednesday said President Trump has considered selecting and unveiling Mr Powell's replacement by September or October. Among the stocks shining across the Atlantic, Nike jumped 15%. The sportswear firm reported a drop in annual profit amid softer revenue and warned of a one billion dollar cost increase in financial 2026 due to new tariffs, which it aims to mitigate through targeted actions across the business. AJ Bell analyst Russ Mould commented: 'The footwear manufacturer has brought back Elliott Hill as CEO to drive a turnaround and investors lapped up his every word on plans to get the business back on track with new sports-focused product lines.' JD Sports rose 7.6%, the athleisure retailer leading the way on the FTSE 100 in a positive read across. 'A healthier Nike playing catch-up with product innovation could stimulate new demand for its products and theoretically JD Sports would benefit as it is a key retailer of Nike shoes,' Mr Mould added. Also on the up in London were stocks with an exposure to China. Among them, luxury fashion firm Burberry added 7.1%. XTB analyst Kathleen Brooks commented: 'The key theme for markets in the next week and a half will be US trade agreements, as July 9 is the deadline for the reciprocal tariff reprieve. There has been some good news on this front. Both China and the US have confirmed that they have agreed a trade framework going forward.' Brent oil was quoted lower at 66.83 dollars a barrel late on Friday afternoon in London from 67.83 dollars late Thursday. Gold fetched 3,273.76 dollars an ounce, lower against 3,322.21 dollars. Weaker gold prices hurt precious metal miners. Hochschild Mining gave back 2.6%. Elsewhere, Next 15 added 15%, recovering some of its 28% slide from Thursday. It confirmed it is in early talks to dispose of some of its brands, a day after it announced a new chief executive and warned on profit. The London-based business growth consultant said it is actively considering options to speed up value creation across its business units and enhancing the delivery of its commercial and strategic objectives. 'The board's primary focus is maximising shareholder value. At this time, there can be no certainty that any agreement will be reached, nor as to the terms of any such agreement, including if sufficient value is not realised. Further updates will be provided as appropriate,' Next 15 said. The biggest risers on the FTSE 100 were JD Sports, up 6.18p at 87.88p, Ashtead Group, up 249.00p at 4,732.00p, Melrose Industries, up 18.60p at 536.00p, Standard Chartered, up 33.00p at 1,219.00p, and IMI, up 50.00p at 2,116.00p. The biggest fallers on the FTSE 100 were Endeavour Mining, down 96.00p at 2,176.00p, Fresnillo, down 63.00p at 1,433.00p, Babcock, down 20.00p at 1,137.00p, BAE Systems, down 25.50p at 1,862.00p, and Coca-Cola Europacific Partners, down 70.00p at 6,640.00p. Monday's economic calendar has UK GDP data at 7am and a German inflation reading at 1pm. The week picks up pace with eurozone consumer price data and a host of PMI readings on Tuesday. US nonfarm payrolls will be the main event on Thursday, before markets in New York closed for Independence Day on Friday. On the UK corporate front, grocer Sainsbury's releases a trading statement on Tuesday. Contributed by Alliance News.
Yahoo
a day ago
- Business
- Yahoo
Global economy to slow amid 'most severe trade war since 1930s', says Fitch
The world economy faces a sharp slowdown induced by the most severe trade war since the 1930s, according to Fitch. The credit rating agency has pointed to the ongoing tariff conflict between the two economic superpowers as one of the sharpest confrontations in recent years. It notes that the scale of this trade war has been unprecedented since the Great Depression. Fitch has recently adjusted its forecast for the US effective tariff rate, now estimating it at 14.2%. This is a revision downwards, significantly lower than the 27% rate Fitch projected in April. The agency attributes the adjustment to US president Donald Trump's decision to dial down his aggressive stance on imposing widespread tariffs on other countries. However, despite this recent shift in policy, Fitch cautions that the economic outlook remains weak. "Our latest GDP forecasts reflect extreme volatility in US trade policy in recent months, which has increased uncertainty and will further weigh on growth," the agency said. Read more: FTSE 100 LIVE: Stocks higher as Trump says US 'signed' China deal, traders look to inflation data Fitch looked at the broader economic disruptions caused by the trade conflict, noting that tariffs have dampened US business and consumer confidence. This, in turn, led to a surge in imports in the first quarter of 2025 as US consumers and businesses rushed to preemptively stock up on goods before expected tariff hikes. Alongside this, inventories rose sharply. Despite these trends, Fitch found little evidence of an immediate impact on the US consumer price index (CPI). However, the agency noted that upstream producer prices and various price pressure measures from surveys have seen an uptick, signalling potential inflationary risks down the line. "The tariffs have reduced US business and consumer confidence and prompted a spike in US imports in 1Q25 as US residents sought to front-run tariff increases. Inventories also rose sharply. There is little evidence of any impact on the US CPI so far, but upstream producer price and survey measures of price pressures have risen," Fitch said. The agency also pointed to downward pressures on US financial asset prices, marked by increased equity market volatility, a weakening dollar, and rising long-term 30-year government bond yields. While the trade conflict between the US and China has been a drag on global economic growth, recent months have offered some reprieve. This truce has provided the space for some positive revisions in growth expectations for key global economies. Read more: UK economy likely to grow at moderate pace amid inflation 'uncertainty', warns Bailey Fitch has revised its US GDP growth forecast for 2025 upwards, from 1.2% to 1.5%. Meanwhile, China's growth is now expected to reach 4.2%, up from a previous forecast of 3.9%. In Europe, the outlook for the eurozone has also improved, with Fitch upgrading its growth forecast for the region from 0.6% to 0.8% for 2025. However, even with these positive revisions, inflation risks remain elevated. Fitch pointed out that the volatility in oil prices, particularly the expected average crude price of $70 per barrel in 2025, could further strain inflationary pressures across the global economy. As the world continues to navigate this uncertain economic landscape, the long-term impact of the US-China trade war remains a critical factor in shaping global growth 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
CNBC
a day ago
- Business
- CNBC
European stocks set to extend gains after White House hints at tariffs extension
Good morning from London. European equities look set to extend yesterday's gains at the open on Friday. Futures tied to the FTSE 100 are marginally higher, while those tied to Germany's DAX and France's CAC 40 indexes are up by 0.8% and 0.6%, respectively. It comes after the Trump administration said the July deadlines for so-called reciprocal tariffs "could be extended" and are "not critical." — Chloe Taylor U.S. President Donald Trump arrives for a "One Big Beautiful" event at the White House in Washington, DC., U.S., June 26, 2025. Nathan Howard | Reuters President Donald Trump could extend looming deadlines for reimposing steep tariffs on imports from most of the world's countries, the White House said Thursday. Trump's July 8 and 9 deadlines for restarting tariffs on those nations are "not critical," White House Press Secretary Karoline Leavitt told reporters. "Perhaps it could be extended, but that's a decision for the president to make," Leavitt said. Leavitt also said Thursday that if any of those countries refuse to make a trade deal with the United States by the deadlines, "The president can simply provide these countries with a deal." In late May, Trump threatened to impose tariffs of 50% on imports from European Union nations, all of whom had already been subject to the reciprocal tariffs imposed in April. Read more here. — Kevin Breuninger
