Latest news with #DanCoatsworth
Zawya
12 hours ago
- Business
- Zawya
FTSE 100 edges up as US holds off decision on Middle East involvement
London stocks edged up on Friday with broad-based gains as the United States deferred its decision on whether to get involved in the Middle East conflict to the next two weeks, aiding market sentiment. The blue-chip FTSE 100 rose 0.5% by 0947 GMT, but remained on track to end its five-week winning streak. The Bank of England opted to keep rates steady on Thursday, as widely expected, but warned about risks from a weaker labour market and higher energy prices amid the ongoing Iran-Israel war. As the air war between the two nations entered its second week, Europe tried to draw Iran to the negotiating table. Meanwhile, the White House said that decisions on potential U.S. involvement are expected within two weeks. "While the immediate prospect of a US intervention in Iran may have diminished, the fact this is reportedly a two-week hiatus means it will remain a live issue for the markets going into next week," said Dan Coatsworth, investment analyst at AJ Bell "A meeting of European ministers with their Iranian counterparts to try and formulate a deal today could be crucial." Banks and financial services gained 1.24%, with Standard Chartered and Barclays rising 3.4% and 2%, respectively. Personal goods were up 1.7%, while travel stocks added 1.4%. On the flip side, energy stocks gave up some of their recent gains, down 0.5%, with oil prices easing from this week's highs. On the economic data front, UK retail sales saw their sharpest decline since December 2023 while consumer confidence rose to its highest level of 2025. Across the Atlantic, the U.S. Federal Reserve said on Wednesday that two rate cuts were on the table for the year. The mid cap index was up 0.34%, but was set to post its first weekly loss in 11 weeks, breaking its longest winning streak in 35 years. In individual stocks, high-end homebuilder Berkeley dragged down the index, falling 7.6% after its chairman stepped down.
Reuters
13 hours ago
- Business
- Reuters
FTSE 100 edges up as US holds off decision on Middle East involvement
June 20 (Reuters) - London stocks edged up on Friday with broad-based gains as the United States deferred its decision on whether to get involved in the Middle East conflict to the next two weeks, aiding market sentiment. The blue-chip FTSE 100 (.FTSE), opens new tab rose 0.5% by 0947 GMT, but remained on track to end its five-week winning streak. The Bank of England opted to keep rates steady on Thursday, as widely expected, but warned about risks from a weaker labour market and higher energy prices amid the ongoing Iran-Israel war. As the air war between the two nations entered its second week, Europe tried to draw Iran to the negotiating table. Meanwhile, the White House said that decisions on potential U.S. involvement are expected within two weeks. "While the immediate prospect of a US intervention in Iran may have diminished, the fact this is reportedly a two-week hiatus means it will remain a live issue for the markets going into next week," said Dan Coatsworth, investment analyst at AJ Bell "A meeting of European ministers with their Iranian counterparts to try and formulate a deal today could be crucial." Banks and financial services (.FTNMX301010), opens new tab gained 1.24%, with Standard Chartered (STAN.L), opens new tab and Barclays (BARC.L), opens new tab rising 3.4% and 2%, respectively. Personal goods (.FTNMX402040), opens new tab were up 1.7%, while travel (.FTNMX405010), opens new tab stocks added 1.4%. On the flip side, energy stocks (.FTNMX601010), opens new tab gave up some of their recent gains, down 0.5%, with oil prices easing from this week's highs. On the economic data front, UK retail sales saw their sharpest decline since December 2023 while consumer confidence rose to its highest level of 2025. Across the Atlantic, the U.S. Federal Reserve said on Wednesday that two rate cuts were on the table for the year. The mid cap index (.FTMC), opens new tab was up 0.34%, but was set to post its first weekly loss in 11 weeks, breaking its longest winning streak in 35 years. In individual stocks, high-end homebuilder Berkeley (BKGH.L), opens new tab dragged down the index, falling 7.6% after its chairman stepped down.
Daily Mail
4 days ago
- Automotive
- Daily Mail
Trump tariffs slam the brakes on Jaguar Land Rover: UK's largest carmaker slashes annual profit guidance
Jaguar Land Rover has warned that Donald Trump's tariffs will hit profits. The UK's largest car maker slashed its annual profit guidance yesterday, telling investors margins would come in between 5 per cent and 7 per cent. This was compared to the 8.5 per cent margin last year and a 10.7 per cent margin for the January to March quarter. The company paused shipments to the US for a month at the start of April after Trump whacked a 25 per cent duty on all foreign-made vehicles. In a reprieve, the UK signed a trade deal in May, which allows it to export 100,000 cars a year to the US under a 10 per cent tariff. Although JLR produces its Range Rover cars in Britain, its popular Defender SUV is made in Slovakia, which is still subject to heavier tariffs. Dan Coatsworth at broker AJ Bell said the downgrade to profits suggests that 'JLR has been forced into the slow lane by Trump's tariffs'. Susannah Streeter at Hargreaves Lansdown said: 'It looks like it'll be a bumpy ride ahead for Jaguar Land Rover.'
Scottish Sun
07-06-2025
- Business
- Scottish Sun
Fury as ‘disgusting' Cadbury cuts size of popular multipack from six bars to four but keeps price the SAME
The change has been blasted by shoppers, including many parents who bought them as kids' snacks BITTER SWEET Fury as 'disgusting' Cadbury cuts size of popular multipack from six bars to four but keeps price the SAME CHOC-lovers are fuming after Cadbury reduced the size of its Dairy Milk Little Bars multipacks by a third. New packs of four are being sold for £1.40, even though packs of six cost the same last month. Advertisement 1 Choc-lovers are fuming after Cadbury reduced the size of its Dairy Milk Little Bars multipacks by a third The change has been blasted by shoppers, including many parents who bought them as kids' snacks. One fumed on the Tesco website: 'Advertised as new, only thing new is you get 4 instead of 6!! For the same price. Disgusting!' A second said: 'Stop reducing how much is in the packet and charging the same price!!!' A third added: 'Was a six pack now a four pack for the same price, a third less chocolate, unacceptable shrinkflation.' Advertisement It comes after Cadbury reduced packs of Freddos from five to four and Cadbury Dairy Milk multipacks were cut from nine bars to seven. Cadbury said: 'We understand the economic pressures that consumers continue to face and any changes to our product sizes is a last resort for our business. 'However, as a food producer, we are continuing to experience significantly higher input costs across our supply chain, with ingredients such as cocoa and dairy, which are widely used in our products, costing far more than they have done previously. 'Meanwhile, other costs like energy and transport, also remain high. This means that our products continue to be much more expensive to make and while we have absorbed these costs where possible, we still face considerable challenges Advertisement 'As a result of this difficult environment, we have had to make the decision to slightly reduce the weight of our Cadbury Dairy Milk Little Bars multipacks so that we can continue to provide consumers with the brands they love, without compromising on the great taste and quality they expect.' Dan Coatsworth, analyst at the investment firm AJ Bell, explained: 'The cost of producing chocolate has gone up a lot in recent years, driving up prices and prompting firms to make products smaller. We've outdone ourselves with this one' say Cadbury Ireland as they reveal new limited edition bar 'coming soon 'When production costs rocket, companies only have a limited range of options. 'They can pass on the costs to the customer through higher prices, which is difficult with a product like chocolate where people are often looking for a cheap treat. Advertisement 'Another option is to reduce the size of the product in order to reduce the manufacturing cost for each bar of chocolate. Or they can try a combination of the two. 'As a last resort, companies may have to tolerate lower profit margins, especially if consumers refuse to tolerate price rises and stop buying.' The British Retail Consortium said global cocoa prices are around three times higher than in 2022, after being badly affected by poor harvests in parts of Africa.
Daily Mail
24-05-2025
- Business
- Daily Mail
Slash your household bills by investing in the very firms that keep on hiking prices
The cost of living has surged again, driven up by a sharp rise in household bills last month. So called 'Awful April' brought a barrage of bill hikes on everything from energy and water to broadband bills and car tax. Council tax bills increased £109 on average, energy bills by £111, water bills by £123, and £50 was added to the typical annual phone and broadband bill. That drove inflation up to 3.5 per cent, official figures confirmed last week. But for investors willing to do their homework, there is an innovative way to get help with the rising cost of all the essentials. Investing in the companies that are raising your bills could be an effective way to earn an income large enough to cover what they charge you. Dan Coatsworth, from the investment platform AJ Bell, says: 'Most of the companies on the stock market charging us these bills pay generous dividends – you could buy their shares and use the income payments to settle up. In doing so, you are effectively handing them back their own cash.' Of course, it may not make sense to buy shares in companies just because you are their customer. But there can be opportunities among firms that provide these basic household services, such as energy and insurance. Here, experts suggest their top picks in each category – and how much you would need to invest to cover your bills, although of course you could buy less to cover part of them. Energy bills The energy price cap, which dictates the maximum households can be charged for each unit of gas and electricity, increased by 6.4 per cent in April, bringing the typical annual bill to £1,849, although it will fall again by £129 a year in July. Centrica, which owns British Gas, yields 3 per cent, and SSE, which supplies about five million British households, 3.6 per cent. You would need to invest about £50,000 in the latter to generate a large enough dividend to pay your annual energy bill. Charles Luke, manager of the Murray Income investment trust, points to National Grid as one reliable dividend payer in the energy space. 'It is a very solid business and benefits from the fact that we need to invest in our infrastructure as part of the energy transition,' he says. Shares currently yield 4.5 per cent. Mr Coatsworth suggests looking beyond the major providers to Telecom Plus, which owns the Utility Warehouse brand and yields a healthy 4.8 per cent. An investment of about £38,500 would generate enough income to cover the bills. Insurance A typical car insurance policy now costs £589, and for home buildings and contents insurance you can expect to pay £393, according to the Association of British Insurers. That's a combined annual insurance bill of £982 on average. At 2.4 per cent, Direct Line's dividend yield is nothing to write home about. Admiral, which insures about 5.7 million cars in the UK, looks more interesting, with a yield of about 4.4 per cent. Aviva yields a chunky 6.5 per cent. An investment of £9,100 would produce a dividend large enough to cover the average car insurance premium. Meanwhile, a £6,250 investment in Mony Group, which owns the comparison site MoneySuperMarket and yields 6.3 per cent, could generate enough to cover the home insurance. Phone and broadband Mid-contract price hikes meant some customers saw their phone and broadband bills increase by as much as 7.5 per cent in April. Vodafone shares currently yield a hefty 8 per cent, but such a high yield raises questions about sustainability. The yield is a company's dividend expressed as a percentage of its share price, so when the share price falls, the yield rises. This might look attractive but isn't necessarily. Vodafone shares are down 9.6 per cent over the past year, and down 42 per cent over five years. Remember in general that high yields are not the only measure to look out for – you'll need to do your research to make sure you understand the business. A company may look like it's offering a great deal, but have a systemic problem that means future earnings could be lower than expected. Simon Gergel, manager of the Merchants investment trust, says: 'Focusing specifically on yield can be quite dangerous, and some of the highest yielding stocks can be value traps.' One helpful indicator to give you an idea of whether the annual payout could be cut in future is the dividend cover ratio. This indicates how many times over a company can afford to pay its dividend. Anything below one suggests a firm is borrowing to fund its payout, which can be a sign of trouble. Ben Kumar, from the wealth manager 7IM, adds: 'Remember also that dividends are not guaranteed. Companies can, and do, cut them. Shares in the telecoms giant BT yield 5 per cent. An £11,000 investment could bring in enough to cover the typical £550 annual cost of phone and broadband. Water Water bills leapt by 26 per cent in April, bringing the average annual cost to £603. Getting a water meter can help reduce that, particularly if there are fewer people in your property than it has bedrooms. Alternatively, you could make the water providers pay for you. Severn Trent, which serves about 4.6 million UK households, yields an attractive 4.5 per cent. Dan Coatsworth prefers United Utilities, which yields a fraction more at 4.6 per cent. A £13,100 investment could produce enough income to do the job. Mr Kumar says: 'While dividends tend to keep pace with broad inflation over time, that is different to the specific inflation on your bills. 'Overall inflation is 3.5 per cent right now, but water bills just went up 26 per cent – so you might have to invest considerably more in the future to ensure your dividend income keeps pace with increases.' Spread your risk Cherry-picking individual stocks can be risky, so you might feel more comfortable letting a professional do the work. Income funds can provide a reliable dividend while spreading their risk across dozens of different stocks. Murray Income Trust is a so-called Dividend Hero – a fund that has increased its dividend for at least 20 consecutive years. Its top holdings include National Grid, HSBC, and BP, which is good news for those worried about petrol prices. It yields 4.55 per cent. Merchants Trust, which has increased its dividend for 43 consecutive years, yields 5.4 per cent and its top holdings include Lloyds Banking Group and SSE. How it works When you buy shares in a company you get a vote at the firm's annual general meeting and you share in its profits. Your money could grow if the company share price rises – or your investment could fall if the share price goes down. But on top of this when a business is profitable it rewards shareholders with a payout called a dividend. The amount is expressed as a percentage. So if you invest £1,000 in a company and it pays a 5 per cent dividend, you'll get £50. When you get a dividend you can choose either to reinvest it or take the money as cash.
