Connect with us
DAPA Banner
DAPA Coin
DAPA
COIN PAYMENT ASSET
PRIVACY · BLOCKDAG · HOMOMORPHIC ENCRYPTION · RUST
ElGamal Encrypted MINE DAPA
🚫 GENESIS SOLD OUT
DAPAPAY COMING

Business

Russell 2000 Rises 0.9% as Small Caps Extend Outperformance Amid Market Rotation

Published

on

FTSE 100 Surges 0.8% Today as Oil Eases and Markets

NEW YORK — The Russell 2000 Index climbed Thursday as small-cap stocks continued to attract buyers in a broadening market environment, closing at 2,919.61 after gaining 26.10 points, or 0.90%. The move highlighted ongoing investor rotation out of mega-cap technology names into smaller companies perceived as more sensitive to domestic economic improvements.

Small-cap shares have shown resilience in 2026 despite periodic geopolitical pressures from the Middle East. The index has benefited from expectations of lower interest rates, potential fiscal support and stronger relative earnings growth compared to large caps. Thursday’s advance came as the broader market displayed mixed performance, with the Dow Jones Industrial Average posting gains while the Nasdaq faced pressure.

The Russell 2000, which tracks the smallest 2,000 companies in the Russell 3000 Index, has been a standout performer in recent periods. Year-to-date through early June 2026, it has posted solid gains, outperforming the S&P 500 on multiple stretches as investors seek exposure to more domestically focused businesses less vulnerable to international trade tensions.

Reconstitution Dynamics in Focus

Advertisement

The June 2026 semi-annual Russell reconstitution, the first under the new twice-yearly schedule, has added to technical support for small caps. Preliminary results showed significant activity, with 237 companies joining the Russell 2000 and others migrating between indexes. Health care, technology, industrials and consumer discretionary sectors led additions.

The market capitalization breakpoint between the Russell 1000 and Russell 2000 rose 24% to about $5.7 billion, reflecting broad growth across US equities. The smallest company in the Russell 2000 now has a market cap of roughly $146 million, up nearly 23% from the prior year.

This reconstitution process typically generates elevated trading volume and can influence short-term price action as index funds and passive strategies adjust holdings. Analysts note a shift toward higher-quality, profitable companies within the small-cap universe during this cycle.

Broader Market Context

Advertisement

Small caps have gained traction as the market rotates away from concentrated mega-cap leadership. Companies in the Russell 2000 tend to derive more revenue domestically, making them potentially better positioned amid uncertainties around tariffs, global supply chains and energy costs linked to US-Iran tensions.

Recent economic data has presented a mixed picture. While inflation remains a concern and oil prices fluctuate with Middle East developments, resilient consumer spending and corporate earnings in certain sectors have supported risk appetite for smaller firms. The Federal Reserve’s path on interest rates continues to influence sentiment, with small caps often benefiting more from easing expectations.

Financials, industrials and consumer-related names within the index contributed to Thursday’s gains. These sectors stand to benefit from a stable or improving domestic economy and potential stimulus measures.

Performance Trends in 2026

Advertisement

The Russell 2000 has notched multiple record highs in 2026 and extended streaks of outperformance against the S&P 500. In the first quarter, it posted positive returns even as large-cap indexes faced pressure from geopolitical shocks and energy volatility.

Analysts from firms like Goldman Sachs have highlighted potential for small-cap strength in 2026, citing accelerating economic growth, moderating inflation and Fed easing. However, they caution that full-year outperformance is not guaranteed and depends on sustained fundamentals.

Dispersion within the Russell 2000 remains high, offering opportunities for active managers. While some unprofitable companies have lagged, higher-quality names with strong cash flows have driven much of the recent rally.

Challenges and Risks

Advertisement

Despite the positive session, risks persist. Small caps remain sensitive to higher oil prices and any escalation in the Middle East that could disrupt energy supplies. South Korea’s won weakening to multi-month lows on Thursday underscored global spillovers from US-Iran tensions.

Valuations have expanded in the small-cap space, raising questions about sustainability. The index trades at premiums to historical averages in some metrics, though still below large-cap multiples in others. Ongoing earnings reports will be critical in validating the rotation narrative.

Broader economic headwinds, including sticky inflation in certain categories and consumer sentiment challenges, could weigh on discretionary spending. Companies in the Russell 2000 often have higher debt loads, making them more exposed to interest rate fluctuations.

Investor Sentiment and Outlook

Advertisement

Institutional and retail investors alike have shown renewed interest in small caps as part of a diversification strategy. Exchange-traded funds tracking the Russell 2000 have seen inflows during periods of outperformance.

Looking ahead, the June reconstitution finalization later this month could bring additional volatility. Markets will also watch for second-quarter earnings, Federal Reserve communications and any diplomatic progress on Middle East issues.

Strategists generally maintain a constructive view on small caps over the medium term, citing potential earnings acceleration and valuation support. However, near-term caution prevails amid geopolitical uncertainties and the possibility of renewed large-cap leadership.

The session’s 0.9% gain in the Russell 2000 came alongside solid volume, indicating genuine participation rather than thin trading. As the trading week progresses, focus will remain on whether small caps can sustain momentum or if broader market consolidation takes hold.

Advertisement

This performance underscores the cyclical nature of market leadership. While mega-cap technology drove much of the prior bull run, 2026 has seen a more balanced participation that includes smaller companies positioned for domestic recovery and sector-specific tailwinds.

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Business

Elon Musk Proposes Humorous Name for Potential AI Regulatory Body Amid Industry Growth

Published

on

Illustration shows Elon Musk photo and Twitter logo

Elon Musk, the chief executive of xAI and Tesla, suggested a tongue-in-cheek name for a potential artificial intelligence regulatory authority, sparking discussion about the future of AI oversight as the technology continues rapid advancement.

Musk proposed “AI Associated Institute of America, Inc.” or AIAIAI, pronounced “ay yai yai,” in a post on X. The comment highlighted ongoing debates about how governments should approach regulation of artificial intelligence systems while the industry expands at unprecedented speed.

Advertisement

The suggestion comes as policymakers worldwide grapple with balancing innovation incentives with concerns about safety, bias, job displacement and potential misuse of powerful AI models. Musk has been vocal about both the opportunities and risks associated with artificial intelligence development.

His companies, including xAI, Tesla and SpaceX, are deeply involved in AI applications ranging from autonomous driving to scientific discovery. Musk’s perspective carries significant weight in technology circles given his track record of ambitious projects.

Context of AI Regulation Discussions

Governments and international organizations have proposed various frameworks for AI governance. The European Union has implemented comprehensive AI regulations, while the United States has taken a more sector-specific approach with executive orders and agency guidelines.

Advertisement

Industry leaders, researchers and ethicists continue debating optimal regulatory structures. Concerns include ensuring AI systems remain aligned with human values, preventing harmful applications and maintaining global competitiveness.

Musk has advocated for proactive regulation while warning about potential existential risks from superintelligent AI. His proposal for AIAIAI reflects a skeptical view of bureaucratic approaches while acknowledging the need for some oversight.

The humorous acronym plays on the Spanish expression “ay, ay, ay,” often used to express dismay or surprise. This lighthearted tone contrasts with the serious nature of AI governance discussions.

Industry Growth and Challenges

Advertisement

Artificial intelligence development has accelerated dramatically, with major companies investing billions in computing infrastructure and talent. Models like those powering chatbots, image generators and autonomous systems demonstrate increasing capabilities.

xAI, Musk’s AI venture, focuses on understanding the universe through advanced models. The company’s Grok chatbot aims for maximum truthfulness and helpfulness without heavy content restrictions.

Regulatory uncertainty creates challenges for companies planning long-term investments. Clear frameworks could provide certainty while addressing legitimate safety concerns raised by experts.

International coordination remains difficult as nations compete for technological leadership. Differing approaches risk creating fragmented global standards that complicate compliance.

Advertisement

Broader Implications

Effective AI regulation could help mitigate risks while preserving innovation benefits. Poorly designed rules might stifle progress or drive development to less regulated jurisdictions.

Public trust in AI systems depends on transparency, safety measures and accountability. Regulatory bodies could play important roles in establishing standards and enforcement mechanisms.

Musk’s comment highlights the tension between rapid technological advancement and governance needs. His companies’ experiences with regulation in automotive, space and social media sectors inform his perspective.

Advertisement

The AI industry’s growth affects numerous sectors, from healthcare and education to transportation and entertainment. Balanced oversight could maximize benefits while addressing legitimate concerns.

Musk’s Influence on AI Discourse

As one of technology’s most prominent figures, Musk’s statements often shape public and industry conversations. His warnings about AI risks have influenced policy discussions while his companies push boundaries in practical applications.

The AIAIAI suggestion reflects Musk’s characteristic blend of humor and serious commentary. Similar playful proposals have appeared in his commentary on other regulatory topics.

Advertisement

xAI’s mission to advance scientific discovery through AI represents one approach to beneficial development. The company’s progress will be watched alongside regulatory developments.

Future Regulatory Landscape

Policymakers face the challenge of creating adaptable frameworks for rapidly evolving technology. Agile regulation that can respond to new capabilities may prove more effective than static rules.

International cooperation could help establish consistent standards while respecting national priorities. Organizations like the United Nations and OECD continue facilitating dialogue on AI governance.

Advertisement

Industry self-regulation through best practices and safety commitments offers another avenue for responsible development. Many companies have signed voluntary agreements addressing key concerns.

The coming years will likely see continued evolution in AI regulation as capabilities advance and societal impacts become clearer. Musk’s commentary contributes to this ongoing conversation about balancing innovation with safety.

As artificial intelligence becomes more integrated into daily life, public understanding and engagement with governance issues will grow in importance. Transparent discussion about benefits and risks helps inform policy decisions.

Musk’s proposal, while humorous, draws attention to the need for thoughtful approaches to AI oversight. The technology’s transformative potential requires careful consideration of how best to guide its development for maximum benefit to humanity.

Advertisement
Continue Reading

Business

Alphabet's Dip Looks Increasingly Hard To Ignore

Published

on

Alphabet: Still Not Too Late To Jump On The 16%+ Growth Train (NASDAQ:GOOG)

Alphabet's Dip Looks Increasingly Hard To Ignore

Continue Reading

Business

TikTok, YouTube are reinventing sports viewership

Published

on

TikTok, YouTube are reinventing sports viewership
TikTok and YouTube are reinventing how young fans watch sports

As the New York Knicks clinched their first championship in 53 years and the NBA notched its highest Finals series ratings since 1998, professional basketball was inking another record.

The five-game series between the Knicks and the San Antonio Spurs generated “15 billion views and counting on social media, the most ever for an NBA Finals and nearly triple the previous record set in 2025,” according to the NBA. Game 5 alone generated more than 4 billion views on social media platforms, breaking the record set three days prior by Game 4.

It’s emblematic of an intensifying battleground in live sports as professional leagues seek to reach new and younger fans and media consumption shifts online.

TV and streaming platforms have been attracting some of the biggest audiences for live sports this year. The NBA Finals series claimed an average of 20.6 million viewers per game on Disney’s ABC and ESPN networks.

Advertisement

And yet social platforms like TikTok and Google’s YouTube are claiming a disproportionate amount of viewing time for Generations Z and Alpha — often at no cost. That’s left the sports leagues and live rights holders weighing whether to go all in on social as a funnel for future audiences or to reinforce the walled garden of subscription programming to offset rising broadcast fees.

New York Knicks fans gather outside of Madison Square Garden before Game 4 of the NBA Finals between New York Knicks and San Antonio Spurs, on June 10, 2026 in New York City.

Adam Gray | Getty Images

“It’s always a question of what the leagues are doing versus what the rights holders want to do,” said Jonathan Miller, a former Fox Corp. and NBA executive who currently serves as chief executive of Integrated Media, which specializes in digital media investments.

Advertisement

“Reaching and cultivating the youth sports base is a major priority and focus of the leagues themselves,” Miller said. “In today’s fragmented landscape, it is no longer a luxury to have a young base, it is a necessity to ensure a healthy future.”

New fans, new ways to watch

For years YouTube has snagged the biggest share of streaming viewership, according to Nielsen’s monthly report known as “The Gauge.”

Rather than watching live games in their entirety, consumers are increasingly watching sports clips, highlights, athlete-made videos and creator content on social platforms.

According to S&P Global’s 2025 “State of U.S. sports viewing” report, 68% of sports viewers reported watching live games on TV or through streaming; 38% reported watching highlights, interviews and other clips on social media, YouTube and other platforms; and 12% said they interact with social media accounts or fan forums for professional players, teams or leagues.

Advertisement

“What we’re seeing today is the evolution of consumption,” said Adam Kelly, president of global sports marketing agency IMG.

The TKO Groupowned firm packages and sells media rights and brand rights as well as providing consultancy on some of the biggest TV deals globally.

Live games that are aired exclusively on streaming consistently draw significantly younger audiences than those aired on linear TV, according to Nielsen, which recently began breaking down weekly sports viewership consumption.

If you are the broadcaster and proactively using your social and digital platforms to push out tons and tons of highlights and content … you’re kind of feeding the beast.

William Mao

Advertisement

senior vice president of media rights consulting at Octagon

The NBA Finals saw an increase in new viewers to streaming platforms like Disney’s ESPN, according to Apptopia. Even streaming-only versions of pay TV bundles like Fubo and YouTube saw similar results.

However, when broken down by age, those new viewers for the NBA postseason tended to skew older, according to Apptopia’s data.

ESPN streaming saw an increase of 38% in new users over the age of 46, while the youngest cohort between 17 and 25 was up just 8%. For Fubo and YouTube, the growth was also heavily skewed toward the over-46 audience.

Advertisement

“Our hypothesis when it comes to young fans is that they play a very important part in consuming sport and will continue to, but their consumption behavior is slightly different,” said Kelly. “People talk about fragmentation of the audience, but actually, consumption numbers have continued to increase.”

Sports highlights

Industry executives told CNBC that as sports migrate more and more onto social platforms, the content is acting as a conduit to live games, not a pure replacement.

“It’s just a continued development of the accessibility of content — a lot more platforms in the marketplace catering to short-form content,” said William Mao, senior vice president of media rights consulting at Octagon, a global sports and entertainment agency.

Mao said the rise of social content around live sports is an acknowledgment that companies need to “target and engage those younger demographics, those future consumers … where they are,” Mao said.

Advertisement

The appetite for clips is creating something of a land grab between leagues and media rights holders, according to Mao.

Both the broadcasters and the leagues have their own social media presences. If multiple accounts want use of the same footage, it could dilute the audience.

Mao said as a result, media negotiations can go so far as to determine how long a highlight or clip can be used exclusively on one platform versus another.

The hope is that a healthy highlight reel on social feeds spurs interest among younger fans in live matchups.

Advertisement

Alicia Windzio | Picture Alliance | Getty Images

Rollo Goldstaub, the global head of sport at TikTok, said 42% of users watching sports content on the short-form video platform will go on to tune into a live game on TV or streaming.

Goldstaub said his job includes making sure the platform has content from across the sports ecosystem — the leagues, athletes, media broadcasts and content creators. He said content directly from the broadcaster or the league, such as game highlights, typically has high engagement.

IMG’s Kelly said younger audiences “have been asked to fit into the existing framework when it comes to sports consumption.”

Advertisement

“Distribution has stayed very much on the traditional means of delivery because it’s what worked so well for so long,” he said. “Non-linear [TV] young fans are spending most of their time on these platforms. Their preference is to consume content where they’re already consuming other material.”

While there are ways to monetize highlights and content on social media — such as ad revenue sharing on platforms like YouTube and other sponsorship opportunities — the main source of value for these games comes from the airing of the live matches on TV and streaming.

With sports fees skyrocketing, the need to earn that investment back grows.

The NBA is in the early years of its 11-year, $77 billion deal. The NFL, which is in the midst of its own 11-year deal worth a record $111 billion, has put heavier weight on advertising to drive revenue.

Advertisement

“There’s an argument that if you are the broadcaster and proactively using your social and digital platforms to push out tons and tons of highlights and content, you’re kind of accelerating that trend even further right?” Mao said. “You’re kind of feeding the beast.”

Reaching young fans

To embrace younger fans, the major players are starting to adapt.

FIFA, the governing body over the World Cup, is allowing its global broadcasts to post more content on TikTok, whether that’s of the matches themselves or surrounding game footage.

The tournament is currently underway in the U.S., Canada and Mexico, and the first 10 minutes of every match can be shown on TikTok. When the stream ends there’s a direct link to stream the game, shown in the U.S. via networks owned by Fox and Comcast’s Telemundo.

Advertisement

Malik Tillman #17 of the United States is challenged by Miguel Almiron #10 of Paraguay during the FIFA World Cup 2026 Group D match between USA and Paraguay at Los Angeles Stadium on June 12, 2026 in Los Angeles, California.

Dean Mouhtaropoulos | Getty Images Sport | Getty Images

In February, the NBA leaned into creator content during its All-Star weekend, inviting more than 200 digital natives to the event.

Rights holders Paramount Skydance and Disney have rolled out kid-friendly simulcasts to capture the youngest fans who may be tuning in alongside their parents.

Advertisement

Paramount’s CBS has aired alternate broadcasts of live sports on its children’s TV network Nickelodeon — from Christmas Day games to the 2023 Super Bowl — complete with slime graphics and characters like SpongeBob SquarePants running on the field.

Disney has tapped into its intellectual property for ESPN’s NFL games, too, including overlays with characters from films like “Monsters Inc.” and “Toy Story.”

And leagues across sport have partnered with Gamefam, a leading Roblox game developer, to bring their team jerseys and content to the video game platform that’s popular with Gen Z and Gen Alpha.

Roblox collaborated with Paramount for its Super Bowl broadcast on Nickelodeon, which became the biggest event ever on Roblox with 70 million visits in 30 days: “It was huge,” said Gamefam CEO Ricardo Briceno.

Advertisement

Briceno noted that building fandom and converting users from Roblox to beyond the platform is “very important.” That could mean watching a game or buying a jersey or other merchandise.

“That’s the funnel. You build awareness and love for the brand, then you put your dollars into it,” said Briceno.

From TV to tech

NFL Commissioner Roger Goodell at the Netflix advertising presentation in 2025.

Courtesy of Netflix

NFL Commissioner Roger Goodell has been vocal about meeting young fans where they are on streaming services. The NBA’s latest media deal brought in Prime Video to replace Warner Bros. Discovery’s TNT Sports. YouTube aired its first-ever NFL game in September.

Advertisement

The strategy appears to be working. The NBA scored some of its highest-rated games this season, and the NFL’s “Thursday Night Football” on Prime Video has continued to capture more viewers — delivering its most-watched season in its 20-year history.

Still, IMG’s Kelly, TikTok’s Goldstaub and others said they don’t view the shift toward social media as a threat to the traditional media partners.

“We can be that partner that’s driving the value of these younger and more likely female fans, the ones that broadcasters are struggling to reach,” Goldstaub said.

“I think right now we’re really happy operating in this space of almost like part of the game,” he said. “We get to promote the full match live, we get to promote the broadcaster, but we also get to give users something really amazing and interesting to see.”

Advertisement
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Continue Reading

Business

U.S. charitable giving tops $600B thanks to megadonors and bequests

Published

on

U.S. charitable giving tops $600B thanks to megadonors and bequests

Violetastoimenova | E+ | Getty Images

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.

Donors gave an estimated $617.2 billion to U.S. charities last year, up 5.7% from the year prior on a blistering stock market rally, according to a Giving USA report released this week. 

Advertisement

The findings mark the first time yearly giving has topped $600 billion in the 60-year history of the annual philanthropy report, which is published by the Giving USA Foundation. Adjusted for inflation, giving was up 3% year over year. 

The effect of the stock market boom, however, was more pronounced with deep-pocketed donors. Individual donors still made up the highest share of contributions at $394.2 billion, but that sum grew just 1.4% in inflation-adjusted dollars, while charitable bequests – gifts made after death – surged by 16.6% to an estimated $62.19 billion. 

The rise in bequests could be the latest signal of the Great Wealth Transfer. Cerulli Associates estimates more than $124 trillion in assets will pass down by 2048, with about $18 trillion allocated to charity. 

Jon Bergdoll, the report’s lead analyst, said it’s too early to tell how much of the increase in bequeathed gifts is due to the massive handover of wealth.

Advertisement

What’s clearer, according to Bergdoll, is that wealthy Americans who are most likely to leave large sums to charity are the biggest beneficiaries of the stock market boom.

“There’s always a pretty tight connection between bequest and overall net worth, which in turn, is pretty connected to the market,” said Bergdoll, interim director of data and research partnerships at the Lilly Family School of Philanthropy at Indiana University, which researches and writes the report. 

Charitable giving hits record high: Here's what to know

The stock market’s impact on overall giving, which includes gifts by foundations and corporations, is slower and more muted. That said, Bergdoll said he expected a bigger uptick in giving considering the past few years of strong market growth. Between 2024 and 2025, the S&P 500 jumped 13.4% in inflation-adjusted dollars, roughly four times the rate of growth in total giving, per the report. 

He attributed much of the gap between paper wealth and total giving to tepid growth in gross domestic product and record-low consumer sentiment. 

“This is a somewhat strange economy for that stock market growth,” he said. “While the market’s doing well, and GDP is doing OK, it does seem like there is a lot of unease. We know that giving comes from a place of financial security for people, and so that could be dragging things down a little bit on the individual end.”

Advertisement

Bergdoll added that it would be detrimental for the nonprofit sector if charitable giving followed stock fluctuations too closely.  

“We wouldn’t want it to be a one-for-one relationship,” he said. “As much as we might want giving to go up 20% when the market goes up 20%, we really don’t want giving to go down by 20% when the market goes down by 20%.”

Get Inside Wealth directly to your inbox

Many top earners were expected to pull forward donations in 2025 to take advantage of tax benefits set to decline due to the One Big Beautiful Bill Act. Bergdoll said the uptick was significant but small relative to overall contributions. The report estimated donors gave an additional $1.71 billion in 2025 to take fuller advantage of expiring tax incentives.

While U.S. charities are receiving more dollars, they have become increasingly reliant on the ultra-wealthy as economic pressures squeeze middle-class donors. The report estimated that nine donors accounted for a whopping $22.32 billion of last year’s total philanthropy. MacKenzie Scott, philanthropist and ex-wife of Amazon founder Jeff Bezos, contributed the largest share at $6.65 billion.

Advertisement

These donors’ megagifts, or contributions of at least 0.1% of total giving, can reshape philanthropy year to year. Nearly a third of the increase in bequest giving came from the estate of late Microsoft cofounder Paul Allen, which established a $3.1 billion fund for science and technology research.

Gabe Cooper, vice chair of the Giving USA Foundation, told CNBC he had mixed feelings about megagifts.

“Do I love when the Paul Allens and MacKenzie Scotts of the world commit to giving away a lot of their wealth? Yes, 100%, and I wish more billionaires would do the same,” said Cooper, who is also the CEO of fundraising platform Virtuous. “On the flip side of that, I actually don’t want that number to grow too big. I don’t want a growing dependence on the megawealthy, whose giving patterns might be more volatile year to year.”

While the rise in bequests is a boon for philanthropy, Cooper has his eye on the bigger prize: heirs.

Advertisement

“If a billionaire passes away, and they give $200 million to charity, the other $800 million is probably going to their kiddos, and so I want those kiddos to make really good decisions in terms of philanthropy,” he said.

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Continue Reading

Business

Oral GLP-1s rapidly expanding user base

Published

on

Oral GLP-1s rapidly expanding user base

Consultancy sees the active GLP-1 user population rising by as much as 50% by 2027. 

Continue Reading

Business

Queer club launches action against Perth Bears

Published

on

Queer club launches action against Perth Bears

Queer club Bears Perth has lodged a formal objection to Perth’s new National Rugby League club registering the name Perth Bears in a case that could force a rethink for the rugby league startup.

Continue Reading

Business

Ryanair says it will reluctantly let parents sit with children for free

Published

on

Passengers incluidng children boarding a Ryanair aircraft using the steps at the front of the plane on a sunny day with blue skies

Under the old policy, Ryanair said adults travelling with children paid one reserved seat fee, and could select seats beside them for up to four children for free.

This typically led to a fee of £8 each way, the CMA said when it launched its investigation earlier this month.

It said at the time it was looking at whether the airline’s “approach to seat reservations may mean parents are being charged for the airline to meet its child safety and disability‑related obligations as set out under aviation rules – and will investigate to determine whether or not this practice is in line with consumer law”.

Other airlines offered to seat children next to a parent or guardian without a fee, or allocate seats together automatically during booking for free, it added.

Advertisement

Ryanair said its policy had given families certainty of where they would be sitting at the time of booking, which they had valued.

It said the “free parent seats” will now be available at the back of the aircraft, as front rows tend to be reserved.

The “minor policy tweak” came into effect on Thursday, it said. It does not expect the change to have an effect on Ryanair’s revenue.

O’Leary hit out at the CMA for targeting its family seating policy, which he said had been “universally embraced by consumers as the most progressive and transparent in Europe”.

Advertisement

“Instead of promoting competitiveness and lower fares for consumers, the CMA is on a mission to force Ryanair to adopt the less transparent and less consumer-friendly family seating policy applied by most other airlines – just because it’s the industry standard,” he said.

Continue Reading

Business

Darden Restaurants (DRI) Q4 2026 earnings

Published

on

Darden Restaurants (DRI) Q4 2026 earnings

An Olive Garden restaurant in Milpitas, California, US, on Tuesday, Dec. 16, 2025.

David Paul Morris | Bloomberg | Getty Images

Darden Restaurants on Thursday reported mixed quarterly results as same-store sales growth at the company’s fine-dining restaurants and Olive Garden fell short of expectations.

Advertisement

The company’s forecast for its fiscal 2027 earnings and revenue also came on the lower end of Wall Street’s projections.

Shares of the company slid more than 3% in premarket trading.

Here’s what the company reported for its fiscal fourth quarter ended May 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

  • Earnings per share: $3.66 adjusted vs. $3.63 expected
  • Revenue: $3.72 billion vs. $3.73 billion expected

Darden reported net income of $404.9 million, or $3.51 per share, up from $303.8 million, or $2.58 per share, a year earlier.

Excluding costs of restaurant closures and other items, the company earned $3.66 per share.

Advertisement

Net sales climbed 13.7% to $3.72 billion, boosted by the inclusion of an extra week during the fiscal year.

Across all of Darden’s restaurants, same-store sales rose 4.6%, topping expectations of 4.1% growth based on StreetAccount estimates.

LongHorn Steakhouse led the portfolio with same-store sales growth of 9.5%, beating StreetAccount projections of 7.1%. The chain has overtaken Olive Garden to become Darden’s top performer, although it still accounts for less of the company’s overall sales.

For its part, Olive Garden saw same-store sales grow 2.4% in the quarter, missing expectations of 3.2% growth.

Advertisement

Darden’s fine-dining segment reported same-store sales growth of 1.9%, falling short of StreetAccount estimates of 3.1%. The division includes The Capital Grille and Ruth’s Chris.

The company’s “other business” segment saw same-store sales rise 4.6%, higher than the 3% projected by analysts. The division includes a handful of smaller restaurant chains, like Yard House and Chuy’s.

Looking ahead to the next fiscal year, Darden is projecting total sales of $13.60 billion to $13.75 billion and net earnings per share from continuing operations in a range of $11.10 to $11.35. Wall Street is expecting the company to report fiscal 2027 revenue of $13.72 billion and earnings per share of $11.40.

Darden is also forecasting that it will report same-store sales growth of 2.5% to 3.5% during fiscal 2027 and open between 75 and 80 new locations.

Advertisement
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Continue Reading

Business

Somerset council offices to be turned into more than 100 flats for NHS staff

Published

on

Business Live

The apartments near Musgrove Park Hospital will provide affordable accommodation in Taunton

C Block of County Hall, seen from the A38 Upper High Street in Taunton. CREDIT: Daniel Mumby. Free to use for all BBC wire partners.

C Block of County Hall(Image: Local Democracy Reporting Service / Daniel Mumby)

An office block in the centre of Taunton is set to be transformed into new flats for NHS staff following approval by local councillors. Somerset Council offloaded C Block of County Hall (situated at the southern end of The Crescent) in March 2025, with the proceeds earmarked to fund front-line services.

Advertisement

Prime PLC, a specialist developer of health and care property, submitted revised proposals in November 2025 to convert the 4,600 sq m building into 111 flats, targeted at new recruits joining Musgrove Park Hospital and neighbouring NHS services.

The council’s planning committee west (which oversees major applications within the former Somerset West and Taunton area) has now granted approval to the conversion scheme – though concerns were raised about parking provision and how “cramped” the accommodation will be.

The flats will span eight floors, made up of 99 one-bedroom studio apartments, six two-person apartments and six three-person flats.

Each studio apartment will offer just under 25 sq m of floor space and will feature a bathroom and kitchen/dining area.

Advertisement

Shared laundry facilities will be made available to residents, while a new lift shaft will be installed to bring the 1960s structure up to the requisite fire safety standards.

Just 10 parking spaces will be available on site within an underground car park, with most staff expected to walk, cycle or carpool to Musgrove Park Hospital, which sits roughly half a mile away — approximately a 15-minute walk.

Richard Baum, head of strategic planning at Somerset NHS Foundation Trust, set out the case for the development when the planning committee west convened in Taunton on Tuesday afternoon (June 23).

He said: “There is an urgent and growing need for high-quality and affordable accommodation for NHS staff.

Advertisement

“We continue to face sustained workforce pressures; we are actively trying to recruit new staff all the time at Musgrove, whether that’s newly qualified staff, experienced staff or trainees.

“One of the issues we currently face is that there isn’t enough access to suitable housing. We regularly see people accept roles and then struggle to find accommodation that they can afford, and others decline roles altogether because there isn’t sufficient housing in the local area that they can afford.

“When we recruit staff early in their years, they move around geographically a lot. They require accommodation that’s flexible and affordable, and the traditional private rental market doesn’t provide that.

“This development addresses a clear gap that we have and enables staff to live locally in a way that is affordable to them, so that they can remain in their roles, train up in the NHS and keep delivering patient care locally here in Somerset.

Advertisement

“This will allow people to come into our organisation, settle quickly and reduce the pressure they have with commuting. This is an ideal and highly sustainable location.”

The new flats are expected to experience a considerable turnover of residents, with entry-level NHS employees residing there while they train at the hospital before purchasing or renting larger homes locally as they progress through the various salary bands.

Councillor Andy Hadley (Conservative, Minehead) hailed the proposals as “a great idea” but raised concerns about whether the scheme could trigger parking problems in the surrounding streets.

He said: “Yes, people won’t used their cars to go to work, but most people do own a car. What is being done to stop the local area being snarled up with 111 cars all day long?”.

Advertisement

Councillor Nick O’Donnell (Liberal Democrat, Rowbarton and Staplegrove) echoed Mr Hadley’s parking concerns, and expressed doubts over whether the flats would offer sufficient space to ensure tenants enjoyed an adequate quality of life.

He said: “When I was looking at the plans, I was quite concerned about the living space – 24 to 27 sq m, which is 12 sq m below what is marketable.

“If you’re a student living at university, it’s probably more than enough room, but then in halls of residence you’ve got a separate kitchen space. I just think it’s going to be a bit cramped.

“These flats aren’t that much bigger than the average sized hotel room.”

Advertisement

Councillor Caroline Ellis (Lib Dem, Bishop’s Hull and Taunton West) welcomed the proposals, contending that they would smarten up the look of the building while relieving pressure to develop greenfield land on the town’s outskirts.

She said: “It’s good to be using a brownfield site of this kind. We’ve got to be mindful that every single dwelling on a brownfield site, at an accessible location for the town centre, is one less that has to go on precious green space.

“This is serving a burning social and community need, because if Musgrove cannot attract a decent workforce, then we are going to miss out majorly [sic].

“This is very much starter, ‘meanwhile’ housing, to make sure that we remove barriers to the labour market, so people can just get their feet under the table and get started. I can’t see why we would be objecting to this.

Advertisement

“C Block is a minger building – you wouldn’t build that nowadays, would you? – and this might make it slightly less minging.”

Councillor Norman Cavill (Conservative, Monkton and North Curry) was in agreement, remarking: “Quite frankly, a change in the appearance of this building is highly desirable.

“The accommodation is much needed for the hospital, the college and the nurses training at the latter. I don’t think there will be a lack of customers for a long time.”

The proposal was granted unanimous approval by the committee following a debate lasting just over an hour, paving the way for construction work to commence before Christmas.

Advertisement
Continue Reading

Business

Halfords shares surge as motoring services drive return to profit

Published

on

Business Live

Revenue grew five per cent to £1.8bn

A Halfords store

A Halfords store(Image: Yui Mok/PA Wire)

Halfords shares have surged after it exceeded analyst forecasts to deliver a £44m profit, signalling that the motoring and cycling retailer’s transformation is starting to gather momentum.

Advertisement

The company recorded a £43.6m pre-tax profit in the year to April, bouncing back into profitability following last year’s £30m loss, as turnover climbed five per cent to £1.8bn. Its shares leapt 14 per cent on Thursday morning to 205p.

City analysts had predicted the firm would post £40.3m in profit before tax, while the company’s own guidance pointed towards the “upper end” of a £41.2m ceiling.

The FTSE 250 business has been pursuing expansion in its motoring division in recent months under new chief executive Henry Birch, as the segment begins to eclipse its retail revenues.

Birch’s approach has focused on a swift expansion of the firm’s garage network as the Redditch- based company looks to its motoring services division to fuel its growth, as reported by City AM.

Advertisement

Turnover in Halfords’ autocentre operations rose by six per cent on a like-for-like basis to £740m. The business said its repairs services are accelerating, with the firm having previously identified the UK’s ageing vehicle fleet as a growth opportunity.

The robustness of this repairs activity more than offset “ongoing weakness” in the tyres market, it said.

Duncan Ferris, an analyst at Freetrade, said the firm is “finding growth in keeping Britons’ ageing cars on the road,” 43 per cent of which are 10 or more years old. Halfords has reported that it has bucked a “subdued consumer environment” to post a four per cent like-for-like rise in revenue, reaching £1bn, at its retail division.

Bicycle sales are spearheading this growth, climbing 6.4 per cent, indicating that this segment of the business is finding its footing once more following the boom and bust triggered by the surge in cycling demand during the pandemic.

Advertisement

The retailer’s bike sales soared during the pandemic, propelling its share price to significant heights, yet Halfords has since struggled to replicate those figures in subsequent years.

“There are still reasons to be cautious, though. In Halfords’ retail business, profits remain under pressure as inflation and reinvestment offset the impact of positive sales momentum,” Ferris said.

The company’s share price peaked at 430p in June 2021 but has since shed nearly 60 per cent of its value in five years before Thursday’s update.

Last April, the retailer announced the abrupt exit of Graham Stapleton, who had steered the business for seven years. Birch, the former chief executive of Very and William Hill, was named as his replacement on the same day.

Advertisement

The incoming Halfords chief said: “These are early days in our growth strategy and there is much still to do as we seek to leverage Halfords’ clear strengths: leading market positions, an unmatched physical and digital presence in motoring and cycling, a trusted brand, and a unique services proposition.”

The firm revealed on Thursday that former EY partner Jock Lennox will join its board as chair, taking over from Keith Williams, whose exit was confirmed in November.

Halfords was established as a wholesale ironmongery in 1892 before growing its cycling and motoring retail operations. It has been listed on the London Stock Exchange since 2004.

Advertisement
Continue Reading

Trending

Copyright © 2025