Given events in the Middle East, it was already inevitable that domestic energy bills will rise this summer. The Bank paints a relatively bleak picture, even though uncertainty still dominates. In short, it will take the region – and the wider energy sector – a while to recover in any scenario, so prices will rise.

PLYMOUTH, Mich. — Garrett Motion Inc. shares exploded more than 22% Thursday, surging to $25.07 in morning trading after the automotive technology supplier delivered a strong first-quarter earnings beat and raised its full-year 2026 guidance, signaling robust demand for its turbocharging and electrification products amid the global shift toward hybrids and efficient internal combustion engines.

The turbocharger specialist reported net sales of $985 million for the quarter ended March 31, up 12% from a year earlier on a reported basis and 6% at constant currency. The top line comfortably topped analyst expectations of roughly $913 million. Net income reached $95 million, or $0.49 per share, beating consensus estimates of $0.43 per share. Adjusted EBIT hit $151 million, reflecting a robust 15.3% margin.

Garrett also generated $49 million in adjusted free cash flow and returned capital to shareholders through $87 million in share repurchases and a quarterly dividend of $0.08 per share, payable June 15. The performance underscored disciplined execution and strong volume conversion in a mixed automotive market.

CEO Olivier Rabiller highlighted the results as evidence of the company’s strategic positioning. “Net sales increased to $985 million, Adjusted EBIT margin expanded to 15.3% and we generated $49 million of Adjusted Free Cash Flow, reflecting disciplined execution and strong volume conversion,” he said in the earnings release.

Investors responded enthusiastically to the raised 2026 outlook. Garrett now targets full-year net sales of $3.6 billion to $3.9 billion, up from prior guidance, and Adjusted EBIT of $520 million to $600 million. The update reflects stronger-than-expected volumes and improved conversion rates, providing a clear runway for growth.

The surge marks a sharp rebound for GTX, which had traded around $20 in recent sessions. Volume spiked dramatically as traders piled into the name, pushing the stock toward multi-year highs. The move comes as Garrett benefits from sustained demand for gasoline and hybrid powertrains even as full electrification accelerates more slowly than anticipated.

Garrett Motion specializes in turbochargers, electric boosting systems and thermal management technologies that improve fuel efficiency and performance across internal combustion, hybrid and electric vehicles. Its products play a critical role in helping automakers meet stricter emissions standards without sacrificing drivability — a sweet spot in today’s transitional market.

Recent partnerships have broadened the company’s horizon beyond traditional automotive. On April 27, Garrett announced a collaboration with TONFY to integrate its oil-free centrifugal compressor technology into high-efficiency liquid cooling systems for battery energy storage. The deal targets the fast-growing data center and energy storage markets, diversifying revenue beyond passenger vehicles.

Analysts largely welcomed the results. The earnings beat and guidance raise validate Garrett’s hybrid-focused strategy at a time when many OEMs are recalibrating pure EV timelines. Hybrids have seen explosive growth in markets like China, Europe and North America, driving turbocharger demand.

Yet the stock’s volatility highlights ongoing risks. Garrett operates in a cyclical industry tied to global vehicle production, semiconductor availability and raw material costs. Trade tensions, currency fluctuations and potential slowdowns in China — a key market — remain watchpoints. The company carries debt from its 2018 spin-off from Honeywell, though management has steadily reduced leverage.

Wall Street’s consensus price target sits around $22-$24, implying more modest upside from pre-earnings levels but now appearing conservative after Thursday’s rally. Several firms maintain Buy or Outperform ratings, citing undervaluation relative to growth prospects and margin expansion potential.

For long-term investors, Garrett offers exposure to both legacy auto strength and emerging electrification trends. Its technologies support 48-volt mild hybrids and high-performance electric systems, positioning it across multiple powertrain scenarios. The company’s focus on industrial applications, including aerospace and energy, provides additional buffers.

Shareholder returns have become a priority. Beyond the quarterly dividend, the $87 million in first-quarter buybacks signal confidence. Garrett has authorization for further repurchases, potentially supporting the stock if earnings momentum continues.

The broader auto supplier sector has faced headwinds from softening new vehicle sales and inventory corrections. Yet Garrett’s outperformance reflects its technological edge and exposure to high-growth segments. Global turbocharger penetration continues rising as emissions regulations tighten worldwide.

Looking ahead, Garrett plans its 2026 Technology and Investor Day on May 20 in New York City, where executives are expected to detail innovation pipelines, including advanced cooling solutions and next-generation boosting systems. The event could provide further catalysts.

Risks remain. A sharper-than-expected slowdown in global auto production, commodity inflation or supply chain disruptions could pressure margins. Competition from other turbo specialists and in-house OEM development adds uncertainty. Valuation has expanded rapidly on today’s move, raising questions about near-term pullback potential.

Still, the earnings-driven rally underscores investor appetite for companies delivering tangible results amid economic uncertainty. Garrett’s ability to beat estimates while raising guidance stands out in an earnings season marked by caution.

As trading continued Thursday, GTX maintained most of its gains with strong conviction. The reaction reflects relief that Garrett’s hybrid bet is paying off while diversification efforts gain traction. Whether this marks the start of a sustained rebound or a short-term spike depends on execution in coming quarters.

For now, the message from the market is clear: Garrett Motion’s combination of strong fundamentals, raised expectations and strategic positioning has reignited investor enthusiasm. At a time when many auto suppliers struggle with EV transition uncertainty, Garrett stands out as a beneficiary of the prolonged hybrid era.

The coming months will test whether the company can sustain this momentum. With Q2 results due in late July and the investor day on the horizon, attention will focus on order books, margin trends and progress in non-auto segments. For shareholders riding the 22% wave, today’s surge validates patience — and raises hopes for further upside as 2026 unfolds.

This story about the March 2026 PCE inflation is developing and will be updated with more details.

The Federal Reserve’s preferred inflation gauge remained stubbornly high in March as consumers continued to face elevated price growth.

The Commerce Department on Thursday reported that the personal consumption expenditures (PCE) index rose 0.7% on a monthly basis in March and is up 3.5% from a year ago. Both figures were in-line with the expectations of economists polled by LSEG.

Core PCE, which excludes volatile measurements of food and energy prices, was up 0.3% from a month ago and increased 3.2% year over year. Both figures were in line with economists’ expectations from the LSEG poll.

FEDERAL RESERVE LEAVES INTEREST RATES UNCHANGED AS POWELL’S CHAIRMANSHIP NEARS END

Federal Reserve policymakers are focused on the PCE headline figure as they try to bring inflation back to their long-run target of 2%, though they view core data as a better indicator of inflation. Compared with February’s annual readings, headline PCE rose from 2.8% to 3.5% in March, while core PCE increased from 3% to 3.2%.

Goods prices were up 0.7% in March compared with a year ago, and increased 1.4% on a monthly basis.

Services prices rose 2.8% compared with last year in March, and were up 0.3% on a monthly basis.

HOW DOES FED CHAIR NOMINEE KEVIN WARSH VIEW THE CENTRAL BANK’S INFLATION GOAL?

The personal savings rate as a percentage of disposable personal income was 3.6%, down from 3.9% in February and 4.5% in January.

Since the start of 2025, the personal savings rate has declined from 5.1% in January 2025 and a recent peak of 5.5% last April.

What experts are saying

Heather Long, chief economist at Navy Federal Credit Union, said that while the “stock market and economy are being held up mainly by the big surge in AI investment,” the inflation

“Meanwhile, on Main Street, people are hurting from the highest inflation in three years and gas prices back at $4.30. Households are paying about $70 more a month at the pump. Nearly half of the larger tax refunds have already gone to pay for higher gas prices for many families,” Long said. “The only encouraging news is layoffs remain low. But it’s a big warning sign that consumption has slowed to just 1.6% in the first quarter.”

WHO IS KEVIN WARSH, TRUMP’S PICK TO SUCCEED JEROME POWELL AS FED CHAIR?

Bret Kenwell, U.S. investment analyst at eToro, said that, “Headline PCE was in-line with expectations, but that doesn’t soften the blow very much.”

“It still marked the highest year-over-year reading in almost three years, while goods inflation remains a clear pressure point. Durable goods inflation has gone from deflationary to inflationary since May 2025 and continues to accelerate, while non-durable goods inflation jumped as rising energy costs worked their way through the report,” Kenwell explained.

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NEW YORK — Hertz Global Holdings Inc. shares skyrocketed more than 22% Thursday, surging to $6.85 in morning trading after the car rental giant announced major fleet partnerships with Uber Technologies Inc. through its new affiliate Oro Mobility, positioning the struggling company for a potential role in the autonomous vehicle revolution.

The deal marks Hertz’s boldest move yet into next-generation mobility services. Oro Mobility will provide comprehensive fleet management — including charging, maintenance, repairs, cleaning and depot operations — for Uber’s autonomous robotaxi program using Lucid vehicles equipped with Nuro AV technology. Services are set to launch in the San Francisco Bay Area later this year, with broader expansion planned for 2027.

A second partnership will see Oro operate driver-led vehicles on the Uber platform, with Hertz-employed drivers in select markets. Pilots already ran successfully in Atlanta, with operations now active in Los Angeles and San Francisco and Northern New Jersey launching this spring.

Hertz CEO Gil West hailed the agreement as transformative. “This partnership with Uber establishes Oro as an integrated solution that connects demand with scalable fleet management services,” West said in a statement. “Through this work, we’re deepening our capabilities across diverse mobility use cases and positioning Hertz to play a significant role as the industry evolves.”

The announcement triggered heavy buying volume as investors bet on Hertz’s pivot beyond traditional rentals. Shares had traded as low as $5.35 earlier in the session before rocketing higher on the news, easily outpacing broader market gains. The stock remains well below its 52-week high near $8.65 but has shown volatility typical of a high-beta turnaround story.

Analysts offered mixed reactions. The partnership provides a much-needed growth narrative for Hertz, which has battled heavy losses, fleet depreciation pressures and a painful EV strategy retreat in recent years. Yet questions linger about execution risks, capital needs and whether the deals can meaningfully move the needle on profitability.

Hertz has been on a rocky path. The company posted a full-year 2025 net loss of $747 million amid softening used-vehicle values and pricing challenges. Aggressive EV fleet expansion earlier in the decade backfired as resale values collapsed, forcing sales at steep losses. Management has since focused on right-sizing the fleet, improving revenue per day and expanding off-airport locations.

Q1 2026 guidance pointed to mid-single-digit revenue growth, supported by better pricing and demand trends. Hertz.com traffic jumped 15% in recent periods, aided by road-trip interest amid occasional airport disruptions. Earnings are scheduled for May 7, with investors hoping for signs of stabilization.

Wall Street’s consensus remains cautious. Most analysts rate HTZ as Hold or Sell, with an average 12-month price target around $4.50 to $5.73 — well below today’s levels. Recent moves include Northcoast downgrading to Sell on valuation concerns before upgrading back to Neutral. Short interest hovers near 47%, making the stock susceptible to squeezes.

The Uber deal injects optimism. Autonomous and fleet-as-a-service models could generate steadier, higher-margin revenue than spot rentals. Hertz brings decades of fleet management expertise, while Uber provides demand scale. Success could help offset traditional rental cyclicality tied to travel, oil prices and economic conditions.

Still, Hertz faces structural headwinds. High debt levels, interest expenses and residual value volatility remain concerns. The company ended 2025 with about $1.17 billion in cash, providing some buffer, but liquidity and balance sheet repair are priorities.

For retail investors, the surge highlights Hertz’s speculative appeal. The stock has delivered sharp rallies on positive catalysts — used-car price gains, travel demand spikes and now mobility partnerships — but often gives back gains on execution misses or macro pressures. Year-to-date performance had been choppy before Thursday’s breakout.

Industry peers reacted too. Avis Budget Group shares fell sharply in sympathy earlier in the week on broader rental sector concerns, underscoring competitive intensity and margin pressures.

Longer-term, Hertz’s recovery hinges on multiple fronts: fleet optimization, cost discipline, used-vehicle market stability and successful new ventures like Oro. CEO West, who took the helm in late 2024, has emphasized operational improvements and strategic diversification.

Market watchers note the timing. With robotaxi hype building around companies like Waymo, Cruise and Tesla, Hertz’s entry via partnerships offers lower-risk exposure. Oro could become a platform serving multiple OEMs and operators, creating a new revenue stream less tied to consumer travel cycles.

Risks abound. Autonomous deployment faces regulatory, technical and public acceptance hurdles. Scaling fleet operations profitably requires precise cost control. Competition from dedicated players and other rental firms entering the space could intensify. Hertz must also manage legacy challenges, including pension obligations and international exposure.

Investors weighing “Is HTZ a buy now?” confront a classic turnaround dilemma. At current prices, the stock trades at a discount to historical norms but reflects genuine risks. Bulls see optionality in mobility and eventual profitability; bears highlight ongoing losses and execution uncertainty. Q1 earnings next week will offer fresh data points on progress.

For now, the Uber partnership has reignited momentum. Volume spiked as traders piled in, with call options seeing strong activity. Whether the gains hold depends on follow-through — converting headlines into sustainable cash flow and proving Oro can scale.

Hertz remains a high-risk, high-reward name in a transforming auto and mobility landscape. Thursday’s surge underscores how quickly sentiment can shift on strategic news, but fundamentals will ultimately decide if this is the start of a lasting recovery or another volatile chapter.

As the market digests the announcement, attention turns to May 7 earnings and any color on partnership economics. For a company once synonymous with traditional rentals, Hertz’s pivot toward autonomous and fleet services could redefine its future — if it can navigate the operational and financial challenges ahead.

‘This move represents much more than a new office for us – it’s a really important moment in a 150‑year relationship with Newcastle and the North East’

A leading property consultancy has marked 150 years of operating in Newcastle and the wider North East through the launch of a new city centre office.

Real estate advisor Avison Young has been involved in a raft of high profile projects across the region, including its support of ambitious projects such as Forth Yards, the regeneration of Pilgrim Street and Founder’s Place in Newcastle, together with transformational schemes in Sunderland, Durham and Gateshead.

The business has now relocated from Central Square South to Wellbar on Gallowgate, next to St James’ Park, after striking a 10 year lease deal. The firm has relocated to a 4,400 sq ft space on the eighth floor of Wellbar, which will give its 30 colleagues and offers panoramic south‑facing views across the city.

Avison Young bosses said the move underlines its long‑term commitment to the region and confidence in its future growth. Wellbar is owned by the Reuben Brothers, and Avison Young supported the billionaire real estate firm in its acquisition of the building for around £21m in December 2023.

The firm also manages the building on their behalf, providing ground floor front‑of‑house staff while delivering all professional services within the building. Other occupiers include Sky, Irwin Mitchell, Eversheds and Kennedys.

The move comes as the business marks 150 years in Newcastle, originally established in 1876 as Lamb and Edge. From its origins managing the Grainger Estate in Grainger Town, Gordon Hewling, managing director of the Newcastle office, told how the firm has played a central role in shaping Newcastle’s built environment through periods of industrial growth, post‑war regeneration and modern‑day transformation.

Mr Hewling, principal in the building and project consultancy, said: “This move represents much more than a new office for us – it’s a really important moment in a 150‑year relationship with Newcastle and the North East.

“We’ve grown alongside the city through industrial expansion, post‑war reinvention and into the modern, outward‑looking regional centre it is today, and we’re incredibly proud of the role we’ve played in shaping that journey.

“Moving into our new home in a building we manage on behalf of a long‑standing client is a powerful reflection of who we are as a business and how we work. Being just five minutes from Grey’s Monument and Eldon Square puts us at the heart of the city, in an area set to see more change over the next decade.

“As we look ahead, this move is about carrying that legacy forward: continuing to support growth, attract investment and help shape places where people, businesses and communities can thrive. We’re excited about the next chapter.”

Like this story? For more news from the commercial property scene around the regions, visit our dedicated section here for the latest news and analysis within the sector.

NEW YORK — The Dow Jones Industrial Average rocketed more than 500 points higher Thursday, climbing 1.07% to 49,383.23 as strong corporate earnings, cooling geopolitical worries and resilient economic data fueled a broad rebound on Wall Street.

The blue-chip index added 521.42 points in morning trading, pushing toward fresh record territory amid renewed investor confidence. The S&P 500 and Nasdaq Composite also posted solid gains, with the tech-heavy Nasdaq leading advances as big tech results continued to impress despite mixed signals from the Federal Reserve.

Analysts pointed to a combination of factors driving the rally. Big Tech earnings from Alphabet, Amazon, Microsoft and Meta provided a mixed but ultimately supportive backdrop after the bell Wednesday. Alphabet and Amazon beat expectations with strong cloud and AI-driven growth, helping lift sentiment even as Meta faced some pressure on higher capital spending.

The Federal Reserve held interest rates steady in a split decision Wednesday but signaled openness to future cuts if inflation continues moderating. Chair Jerome Powell acknowledged progress on price stability while highlighting risks from elevated oil prices tied to Middle East tensions.

Oil prices remained elevated but pulled back slightly from recent peaks above $120 a barrel for Brent crude. Reports of potential de-escalation in U.S.-Iran hostilities after weeks of uncertainty helped ease energy market fears that had weighed on stocks earlier in the week.

“This market has shown remarkable resilience,” said one strategist at a major investment bank. “After navigating tariff shocks, geopolitical flare-ups and a hawkish Fed tone earlier in the year, investors are rewarding companies delivering on AI and efficiency gains.”

The Dow’s advance Thursday marked a sharp reversal from modest losses the previous session. Year-to-date, the index hovers near flat but has recovered significantly from March lows when escalating Iran conflicts triggered a brief correction. The blue-chip benchmark briefly dipped into correction territory before rebounding on ceasefire hopes and robust first-quarter earnings.

Financial stocks led Dow gainers as banks benefited from a steeper yield curve. JPMorgan Chase, Goldman Sachs and Travelers rose solidly. Industrial names like Caterpillar and Boeing also contributed, reflecting optimism about infrastructure spending and global trade normalization.

Technology remained a key driver. NVIDIA, Apple and Broadcom extended recent strength on continued AI infrastructure demand. The sector’s performance helped the Nasdaq outperform, trading up more than 1% in early action.

Broader market breadth improved, with advancing issues outpacing decliners on the New York Stock Exchange. Small-cap stocks in the Russell 2000 also participated, suggesting the rally extended beyond mega-caps — a positive sign for market health.

Economic data released Thursday offered a balanced picture. First-quarter GDP growth came in softer than expected amid higher energy costs, but personal income and consumer spending held up. Core PCE inflation, the Fed’s preferred gauge, showed modest cooling, reinforcing hopes for rate relief later in 2026.

Investors appeared to look past near-term volatility. President Donald Trump’s administration continued navigating Iran negotiations, with markets pricing in reduced risk of prolonged disruption to oil supplies through the Strait of Hormuz.

Corporate America’s earnings season has largely beaten forecasts. More than 70% of S&P 500 companies reporting so far have topped analyst estimates on revenue and profits, according to FactSet data. AI-related spending and cost discipline have been recurring themes.

Yet challenges linger. Elevated oil prices threaten to stoke inflation and squeeze consumer wallets. Higher-for-longer rates could pressure sectors sensitive to borrowing costs, including real estate and utilities. Geopolitical flare-ups remain a wildcard.

The Dow’s climb to the 49,000 level earlier in 2026 represented a psychological milestone. Thursday’s push toward 49,400 underscores sustained bull market momentum despite periodic pullbacks. Since crossing 49,000 in January, the index has traded in a volatile but upward range.

Analysts remain constructive for the remainder of 2026. Median Wall Street forecasts target the S&P 500 around 7,650 by year-end, implying double-digit upside from current levels. AI adoption, potential tax policy tailwinds and eventual Fed easing are cited as primary supports.

Not all sectors shared in the enthusiasm. Energy stocks lagged as oil prices moderated. Defensive names like consumer staples and health care showed modest gains but trailed the broader market.

International markets offered mixed signals. European bourses traded higher on similar earnings optimism, while Asian markets closed mostly positive overnight. China’s stimulus measures continued supporting sentiment in emerging markets.

For individual investors, the rally highlights the importance of diversification. While mega-cap tech has dominated returns, broadening participation across value, small-caps and cyclicals could sustain the advance.

Looking ahead, traders eye upcoming jobs data and inflation readings for further clues on the Fed’s path. Apple’s earnings later Thursday could provide another catalyst or headwind depending on iPhone demand and services growth.

The current environment rewards stock-picking and active management. Companies demonstrating pricing power, innovation and strong balance sheets are being rewarded, while those lagging in efficiency face pressure.

As trading approached midday, the Dow maintained most of its gains. Volume remained healthy, indicating conviction behind the move rather than short-covering alone.

Wall Street’s resilience this year reflects lessons from past disruptions. Investors have grown accustomed to navigating headlines, focusing instead on fundamentals and long-term growth drivers like artificial intelligence and reshoring.

The Dow’s 1%+ surge Thursday caps a strong week for equities, reinforcing the narrative of a soft landing for the U.S. economy. Whether this momentum carries into May depends on upcoming data and corporate guidance, but for now, optimism prevails.

With the benchmark index reclaiming ground lost during geopolitical spikes, many see the path higher — provided inflation cooperates and global risks subside. The 50,000 mark on the Dow, once a distant dream, now appears within reach before year-end.

FedEx and UPS said they will return tariff refunds to customers after a Supreme Court ruling opened the door to potentially billions of dollars in reimbursements tied to Trump-era import taxes.

The companies said they plan to pass along any recovered funds as the federal government begins processing refund claims for duties collected under the International Emergency Economic Powers Act (IEEPA), a move that could affect a broad swath of importers.

UPS CEO Carol Tomé said on the company’s first-quarter earnings call that UPS processed 16 million IEEPA-related entries and remitted more than $5 billion in tariffs to the U.S. Treasury.

“We are just a pass-through,” Tomé said, adding that once refunds are issued, UPS will send the money “right back to our customer.”

TRUMP ADMIN TO BEGIN REFUNDING $166B TO BUSINESSES IN WAKE OF SUPREME COURT DECISION

FedEx similarly said it intends to return funds to customers as soon as it receives refunds from U.S. Customs and Border Protection (CBP), reinforcing that logistics firms act primarily as intermediaries in tariff collection.

POWELL SAYS HE’LL STAY ON FED BOARD AFTER CHAIRMANSHIP ENDS BUT WON’T BE A ‘SHADOW FED CHAIR’

The developments follow a February Supreme Court ruling that found the 1977 law used by the Trump administration does not authorize presidents to impose tariffs, effectively invalidating a broad set of import duties applied to goods from major trading partners.

The decision could trigger a significant wave of repayments, with roughly $166 billion in tariff collections potentially subject to refunds, according to government data cited in court filings.

Thousands of companies have already moved to file claims after the federal government launched a new system to process refunds earlier this month, signaling strong demand for reimbursement.

Ticker	Security	Last	Change	Change %
FDX	FEDEX CORP.	390.00	+1.42	+0.37%
UPS	UNITED PARCEL SERVICE INC.	107.70	+1.07	+1.01%

CBP said it began rolling out a phased refund system on April 20, allowing importers and brokers to submit claims through its online portal. The agency said most valid refunds are expected to be issued within 60 to 90 days after approval, though more complex cases could take longer.

For logistics companies like UPS and FedEx, the refunds are not expected to materially impact financial results because the firms primarily collect tariffs from customers and remit them to the federal government.

Still, the scale of the refunds highlights the broader economic impact of the tariffs, which disrupted global trade flows and weighed on corporate earnings across multiple industries.

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While the court ruling struck down tariffs imposed under IEEPA, other trade measures remain in place, and officials have signaled that additional duties could still be pursued under alternative legal authorities.

FOX Business reached out to FedEx and UPS for further comment. 

Reuters contributed to this report. 

The brand, which has more than 120 showrooms throughout the UK, has filed for Chapter 7 bankruptcy in the US

Wren Kitchens has confirmed that its decision to withdraw from the US market will have no bearing on its Barton-based UK operations. The brand, which boasts more than 120 showrooms across the UK and is owned by Hull-born entrepreneur Malcolm Healey, has filed for Chapter 7 bankruptcy in the States, where it launched approximately six years ago.

The company says the move, which has resulted in job losses and store closures, will enable it to channel investment into its UK business, which continues to grow. Newly released accounts for the UK arm, Wren Kitchens Limited, reveal turnover surpassed £1bn in 2025 — the second highest figure in the company’s history — with operating profits exceeding £101m.

The firm has spoken of opportunities to expand its network of 124 showrooms, including the addition of further “small format” locations away from traditional retail parks. In recent years the UK business, which employs more than 7,000 staff including over 2,300 at Barton, has also successfully ventured into the bedrooms market with a dedicated factory established for that purpose.

All of this was achieved despite what CEO Mark Pullan described as a “somewhat challenging” year, with economic uncertainty and a prolonged housing market slowdown leading some customers to postpone kitchen renovation projects. Wren cited its inability to secure favourable terms on retail properties to grow its store network as the primary reason for exiting the US market.

Mr Pullan said: “We reluctantly took the decision to appoint a Trustee who is managing our exit from the US market, in line with US regulations. We regret the impact of this decision on our US colleagues and our customers and thank both of them for their support.

“Our focus is on further growing our UK business where last year we recorded our second most successful year since the business began and hit the £1bn turnover mark with strong profits despite what remains a subdued market. Encouragingly, this market growth has carried through into the first quarter. These results reflect the hard work and dedication of our teams across the business and our sustained re-investment in the business – over £500m over the past 15 years.”, reports Hull Live.

“We are beginning to see the early benefits of the investment in our new factory, which is enhancing both capacity and efficiency, while continued investment across our UK operations is helping to improve resilience, support fuel cost stability and reduce our environmental impact.

“While we remain mindful of potential uncertainties arising from the geopolitical situation, we are confident in the strength of our business and with all our focus on the UK, we will be accelerating our new store rollout programme over the year, with the launch of 15 new showrooms as well as new product categories.”

Shares of Vedanta adjusted to the company’s much-awaited demerger on Thursday, appearing to have crashed nearly 65% on NSE. However, in reality, the stock declined 5% after beginning to trade without the value of its four demerged entities.

After closing at Rs 773.60 on Wednesday, the stock opened sharply lower at Rs 289.50 on Thursday. Vedanta shares hit an intraday low of Rs 271.5 apiece on the NSE, marking a sharp 64.9% plunge from the previous close. The drop pulled the metal major’s market capitalisation down to Rs 1.13 lakh crore from Rs 3 lakh crore.

The shares now trade without the value of four demerged units — Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, and Vedanta Steel & Iron Ore — which will list separately on the BSE and NSE.

The special pre-open session (SPOS) ran from 9:15 am to 9:45 am on the stock exchanges to determine Vedanta’s share price adjustment post demerger, and the regular trading in the stock began at 10 am.

The Anil Agarwal-led conglomerate set May 1 as the record date for its demerger, which marks one of the biggest corporate restructurings in India’s metals and mining space. Since Friday (May 1) is a market holiday due to Maharashtra Day, Thursday (April 30) is the effective record date for the demerger.

Vedanta shares are currently part of the Nifty Next 50 index. On the global front, it is part of the MSCI Emerging Markets Index as well as the FTSE indices. According to Nuvama, Vedanta will continue to be part of the Nifty Next 50 index, while the soon-to-be-listed demerged entities (Aluminium, Power, Oil & Gas, Steel) will be reflected as dummy constituents until listing. The brokerage added that Vedanta’s weight will be auto-adjusted on MSCI and FTSE indices.
Vedanta’s demerger is a well-structured move that should unlock shareholder value over time, said Raj Gaikar, Research Analyst at SAMCO Securities. When businesses like aluminium, zinc and oil & gas begin to trade independently, markets tend to value them more fairly than when they are bundled together in a single conglomerate, he added.

Vedanta’s demerger journey

Vedanta had first announced its demerger plans in 2023, aiming to split its Indian operations into six separately listed companies, including a standalone base metals entity. Over time, the structure was revised. The demerger, however, faced significant delays, largely due to objections raised by the government.

The metal conglomerate’s long-awaited demerger plan received the National Company Law Tribunal’s (NCLT) approval in December last year. Under the approved scheme, the base metals business will remain within a restructured Vedanta, while four new listed companies will be carved out. The restructured Vedanta will continue to house the zinc and silver businesses through Hindustan Zinc and is envisaged as an incubator for future ventures.

Also read: Vedanta share price adjusts 63% as it trades ex-demerger. What’s next for 21 lakh shareholders?

Vedanta Chairman Anil Agarwal, in an interview with the Financial Times, said that the long-delayed restructuring could create “phenomenal shareholder value”. He said that the new entities emerging from the conglomerate will have a free hand to grow. A privately held parent company controlled by Agarwal will retain roughly half the shareholding in each of the demerged entities, he added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)