Markets

Markets

BHP owners pocket record dividend

BHP shareholders will pocket a record payout, the company announced this morning, bringing the total dividend to $6.7bn (£5.5bn). The miner announced this morning that it would give shareholders an ordinary dividend of $1.33 per share. However, the payout comes on top of a special dividend earlier this year, of $1.02 per share as the company decided to return $10.4bn to shareholders. It came after BHP sold its oil fields in the Permian Basin to BP for $10.5bn last year. Attributable profit grew 124 per cent to $8.3bn, the biggest in five years, while basic earnings per share rose 130 per cent to $1.603. However, profit and dividend fell slightly short of expectations, sending shares in London down around two per cent to 1,746.2p. “As a BHP shareholder you cant be too disappointed. Its been a great year for the company, they have made a lot of money,” Brenton Saunders at Pendal Group, a Sydney-based fund manager, told Reuters. “Thats in a large part a function of commodity ma..

Markets

Bond yields fall as Trump calls for cut and ECB hints at stimulus

Yields on global bonds have fallen following a renewed call for interest rate cuts from US President Donald Trump and dovish words from European Central Bank (ECB) board member Olli Rehn. Read more: Eurozone inflation falls to well below ECB target in July Trump yesterday evening called for a 100 basis point (one percentage point) interest rate cut from the Federal Reserve “over a fairly short period of time”. Investors attention has turned to both the release of the Fed minutes tomorrow, which will be parsed for signs of willingness to drop rates, and to chair Jay Powells speech at Jackson Hole, Wyoming on Friday, where he is expected to signal more stimulus ahead. Finlands central bank governor Olli Rehn said yesterday evening that the ECB was determined to act if inflation stays stubbornly low. Eurozone inflation came in at just one per cent in July, well below the Banks target of close to two per cent. He said: “A significant degree of monetary stimulus continues to be necessa..

Markets

Analysts and investors hopeful for record BHP dividend

Investors will flock straight to the dividend page tomorrow after miner BHP releases its annual results overnight, expected to reveal the highest annual dividend in the companys history. Analysts had expected the dividend to reach around $2.36 for the full year 2019, up from $1.18 the year before, according to a consensus compiled by Vuma. The dividend includes a $1.02 special payout from January. It would mark a rebound for the companys payout to shareholders, which was slashed by around a quarter in 2016 after the bottom fell out of the metals market. Iron ore prices, one of BHPs key products along with copper and coal, ticked up earlier this year after 300 people died or went missing in a Brazilian mining accident. BHPs share price rose after the disaster, hitting 2,049p in early July, up from 1,569p when the dam burst in January. The dividend was boosted by a special payout after the company sold its shale assets in the US Permian Basin to BP for $10.5bn (£8.7bn) last year. ..

Markets

Finance bodies start talks to cut stock market trading hours

Banking and investment groups are working on proposals that could see stock market trading hours shortened across Europe. The Investment Association (IA), which represents the UKs asset management industry, and the Association for Financial Markets in Europe (AFME), a banking lobby group, are planning to consult their members on plans to cut European trading hours, according to Financial News. Opening equity markets an hour later and closing them an hour earlier is reported to be among the proposals being considered. Read more: FTSE 100 and FTSE 250 reopen after glitch hits morning trading City A.M. understands that work on the proposals is at a very early stage, and that no concrete plans have yet been made. A spokesperson for the IA said the organisation “is taking a strong interest in culture across the investment management industry, from boardrooms to the trading floor, and how this can play a pivotal role in fostering good mental health and creating inclusive workplaces w..

Markets

Analysts’ fantasy? EPS downgrade begins, 20% may become zilch by March

Mumbai: Earnings downgrades continued for India Inc post June quarter earnings amid a demand slowdown, tepid economic growth and analysts over-optimism with their estimates. And analysts say they do not see any respite anytime soon. Kotak Institutional Equities expects net profit of Nifty50 companies to grow 15 per cent in FY2020, versus 24 per cent estimated at the beginning of the earnings season. “Q1FY20 results did little to lift the gloom with many companies missing our already low expectations and guiding for weak demand conditions for another 2-3 quarters,” Kotak analysts said. They pointed out that net profit of Nifty50 companies grew 1.8 per cent year-on-year in June quarter, 0.8 per cent above expectations, driven largely by banks. Ebitda or earnings before interest, tax, depreciation and amortisation declined 3.4 per cent. While financials have been largely faring well, auto, consumption and capital goods sectors have been suffering from weak demand and various secto..

Markets

US and European stocks buoyed by ECB rate cut expectations

US and European stocks soared on Friday as expectations the European Central Bank will cut interest rates rose, helping the dollar to hit a two-week high against the euro. The dollar was also aided by promising data that showed a jump in US homebuilding permits to a seven-month high. Read more: US stock markets jump after China hints at stimulus However, the dollar pared gains against the euro when a report from the Der Spiegel said the German government was prepared to ditch its balanced budget rule and take on new debt to counter a possible recession. Germanys finance ministry declined to comment on the report. Germany and other eurozone government bond yields rose late on Friday in wake of the report. The German 10-year bond yield rose -0.69 per cent, having earlier hit a record low of -0.73 per cent. Meanwhile, technology shares boosted Wall Streets advances, but US stocks in general posted a third successive week of declines, largely due to the US-China trade war and an ..

Markets

US stock markets jump after China hints at stimulus

US stock markets have opened significantly higher after China sewed hopes of more stimulus and a rally in government bonds slowed down. Read more: FTSE 100 follows European stocks upwards after it reopens The tech-heavy Nasdaq index was the biggest climber, rising one per cent shortly after the opening bell. The S&P 500 had risen 0.8 per cent, while the Dow Jones was up 0.6 per cent. US stocks followed their European counterparts upwards. The German Dax had risen 0.9 per cent by early afternoon, the French CAC 40 had climbed 0.9 per cent, while the FTSE 100 was up 0.3 per cent. Global Investors were buoyed by the news that China is planning to inject some stimulus into its economy. Its state planning office said this morning it would act to increase disposable income. Stock markets have had a torrid two weeks following the announcement by US President Donald Trump that his administration planned to put 10 per cent tariffs on $300bn of Chinese goods, adding to the $250bn of goods t..

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