Fintel News

LONDON BRIEFING: Centrica settles probe; Unite reservations on track

2026-05-15T07:00:03Z

Centrica will pay GBP20 million into Ofgem's redress fund and write off up to GBP70 million after the regulator closed its British Gas prepayment meter probe, while Unite Group says reservations for the next academic year remain in line with guidance. Building materials distributor Grafton sees revenue rise despite weaker trading in Great Britain.

Here is what you need to know before the London market open:

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MARKETS

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FTSE 100: called down 0.7% at 10,302.83

GBP: lower at USD1.3337 (USD1.3480 at previous London equities close)

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BROKER RATINGS

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JPMorgan raises Standard Life to 'overweight' (underweight) - price target 950 (620) pence

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Deutsche Bank Research raises Tate & Lyle price target to 595 (460) pence - 'buy'

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COMPANIES - FTSE 100

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Centrica says its British Gas unit has agreed to pay GBP20 million into Ofgem's Voluntary Redress Fund after the regulator closed its investigation into the supplier's historic involuntary prepayment meter installations. Ofgem, the UK regulator for the electricity and downstream natural gas markets, says British Gas failed to meet standards required for the treatment of vulnerable customers between 2018 and 2023, including cases where prepayment meters were installed under warrant when it was inappropriate to do so. British Gas will also compensate affected customers from the 2018-21 period, in addition to payments already made for 2022-23, and write off up to GBP70 million of energy debt for vulnerable customers. The company says it has not restarted warrant-based prepayment meter installations since suspending the practice in February 2023 and adds the settlement will not affect its 2026 financial guidance.

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COMPANIES - FTSE 250

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Unite Group says reservations for the 2026/27 academic year remain in line with expectations, with 79% of beds reserved compared with 80% a year before. The student accommodation provider says sales progress remains consistent with guidance for occupancy at the lower end of 93% to 96% and rental growth of 2% to 3%. Unite also says it is increasing disposal plans and exploring ways to accelerate its portfolio transition, which would release surplus capital for share buybacks or university partnerships. The company reiterates guidance for adjusted earnings per share of 41.5p to 43.0p for financial 2026. CEO Joe Lister says: "We are increasing our disposal plans and working with advisors to explore options to further accelerate our transition to a more focused, higher-quality portfolio. This will release surplus capital for reinvestment into share buybacks or university partnerships consistent with our capital allocation framework."

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Grafton says revenue in the first four months of 2026 rises 3.2% to GBP830.1 million from GBP804.4 million, while average daily like-for-like sales are broadly flat as growth in Iberia, Ireland and Northern Europe offsets weaker markets in Great Britain. The Dublin-based building materials distributor says it continues to manage supply chain risks linked to conflict in the Middle East, with no material disruption so far although inflationary pressures are evident. Grafton says disciplined cost control and margin management remain a focus, and now expects 2026 adjusted operating profit in the range of GBP190 million to GBP200 million, supported by the acquisitions of Ireland's Cygnum and Spain's Mercaluz.

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OTHER COMPANIES

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Glenveagh Properties reiterates 2026 earnings per share guidance of up to 21 euro cents as the Irish housebuilder says trading remains in line with expectations. The Kildare, Ireland-based housebuilder says its closed and forward order book stands at EUR1.5 billion, up from EUR1.3 billion in March, while the Homebuilding segment and Partnerships division are both performing as expected. The company says it is well positioned to deliver around 2,750 units in 2026 and remains on track to complete around EUR45 million in land sales this year. Glenveagh also reiterates its second-half weighted delivery profile for 2026 and announces a further EUR25 million expansion to its share buyback programme, bringing the total to EUR50 million. CEO Stephen Garvey says: "Matching delivery costs with affordability has been the central challenge for Irish homebuilders. This has driven every strategic decision we have made as a business, from our early investment in standardisation and vertical integration, to our ongoing innovation programme and the efficiency gains we are now realising through AI and data. The result is a business that can deliver high-quality homes at prices that work for customers, while ensuring the business remains on a sound financial footing in an uncertain cost environment."

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FRP Advisory Group expects annual revenue of at least GBP176 million for the financial year ended April 30, up 16% from GBP152.2 million a year earlier, while adjusted underlying Ebitda is expected to rise 9% to at least GBP45 million from GBP41.3 million. The London-based business advisor, including insolvency and corporate finance, says results are at least in line with market consensus and cites strong performances across restructuring, corporate finance, financial advisory and forensic services. FRP says ongoing Middle East conflict is expected to increase inflationary pressures and complicate central bank interest rate-cut paths, adding that it already has seen increased demand for debt advisory and restructuring advisory services. The company says its balance sheet remains strong with around GBP26 million in net cash at April 30 and that it intends to propose a final dividend in line with its policy. CEO Geoff Rowley says: "This year, we further strengthened our model through a combination of targeted acquisition activity and investment in talent, geographic reach and service capabilities...The short and medium-term outlook for our markets remains positive and we have sufficient resource flexibility to respond to an increase in demand and a strong balance sheet to capitalise on investment opportunities when they arise."

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Gresham House Energy Storage Fund says it has signed export credit agency-backed financing agreements for battery energy storage system equipment at its Cockenzie and Monet's Garden projects, totalling 297 megawatts with a two-hour duration. The company says the credit facilities, provided by Banco Santander SA, will fund up to 50% of battery, inverter and transformer equipment costs and allow payments to be spread over 10 years at a fixed interest rate. Gresham House Energy Storage Fund also says it has completed the acquisition of the 240MW Cockenzie project, which is expected to become the largest asset in its portfolio. The fund adds it is progressing wider project financing, including senior debt facilities covering up to 70% of project costs, with construction expected to begin once funding is finalised ahead of 2027 connection dates.

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The UK's Civil Aviation Authority says an alternative developer model has been shortlisted as part of options for expanding Heathrow Airport, opening the possibility for a rival company to deliver a third runway. The proposal is consistent with plans from Arora Group, owned by hotel entrepreneur Surinder Arora, to build and operate a new runway and terminal. Heathrow Airport Ltd, whose investors include Ardian and the sovereign wealth funds of Qatar and Saudi Arabia, wants to oversee the expansion itself. The CAA says four regulatory models have been shortlisted ahead of a consultation running until June 15, while the UK government is expected to consult on amendments to its Airports National Policy Statement by July.

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By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Grafton year-to-date revenue up despite "weaker" Great Britain trade

2026-05-15T06:58:16Z

Grafton Group PLC on Friday said revenue edged higher in the first four months of the year, despite underwhelming trade in Great Britain.

The Dublin-based building materials distributor said revenue in the four months to April 30 rose 3.2% on-year to GBP830.1 million from GBP804.4 million a year prior. Average daily like-for-like sales were flat over the period.

Grafton said growth in Iberia, the island of Ireland region and Northern Europe offset "weak markets" in Great Britain.

"A robust performance in Iberia, alongside more modest sales growth in the Island of Ireland and Northern Europe, was fully offset by weaker trading in Great Britain. Trading in the seasonally less important early months of the year was also influenced by exceptionally wet weather in Ireland and the UK," Grafton said.

"Our island of Ireland businesses delivered average daily like-for-like revenue growth of 1.8% in the period in comparison to last year driven by strong growth in Chadwicks. Chadwicks benefited from a pick‑up in construction activity in recent months following persistently wet weather earlier in the year and some forward purchases ahead of price increases. Woodie's trading was slightly behind strong prior‑year comparatives, when favourable weather in early spring 2025 pulled forward demand for plant and garden related products."

Grafton sealed the buy of Mercaluz in Spain earlier this month in a deal worth up to EUR175 million. It completed the buy of Irish timber frame firm Cygnum in April for an undisclosed sum.

These deals are expected to "offset weaker trading in Great Britain".

Grafton as a result now expects annual adjusted operating profit in the range of GBP190 million and GBP200 million. It puts consensus at GBP190.8 million. In 2025, adjusted operating profit amounted to GBP190.2 million.

The company added: "Though we have experienced no material disruption to date, the group continues to actively manage supply chain risks arising from conflict in the Middle East, maintaining high levels of stock availability for customers. Supplier price increases and higher fuel costs are being closely managed, while the group remains mindful that sustained cost inflation may place pressure on market demand and volumes. Against this backdrop, focus remains firmly on disciplined cost control and margin management."

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 set to fall on Iran fears

2026-05-15T05:58:48Z

Stocks in London are set to open lower on Friday, as investors digest the outcome of the US-China summit and the latest Westminster drama.

IG says futures indicate the FTSE 100 to open 85.3 points lower, 0.8%, at 10,287.63 on Friday. The index of London large-caps closed 0.5% higher at 10,372.93 on Thursday.

US President Trump said he made "fantastic trade deals" with China's Xi Jinping, as the pair met at final meetings of a superpower summit that according to the US leader has also reaped a Chinese offer to help open the Strait of Hormuz.

"We've made some fantastic trade deals, great for both countries," he said, as Xi accompanied him through the gardens of Zhongnanhai, a central leadership compound next to Beijing's Forbidden City.

On the topic of the war in Iran, the US president said Xi had effectively assured his counterpart that China was not preparing to militarily aid Tehran, which has essentially closed the Strait of Hormuz.

"He'd like to see the Hormuz Strait open, and said 'if I can be of any help whatsoever, I would like to help,'" Trump added.

Sterling was quoted at USD1.3354 early Friday, lower than USD1.3480 at the London equities close on Thursday. Against the euro, sterling fell to EUR1.1467 from EUR1.1549 a day prior.

The euro traded at USD1.1646 early Friday, lower than USD1.1677 late Thursday. Against the yen, the dollar was quoted at JPY158.58 versus JPY158.14.

Back in the UK, Greater Manchester Mayor Andy Burnham said he intends to stand for Labour in a by-election after a sitting MP offered to step aside to allow his return to Westminster and a potential challenge to Prime Minister Keir Starmer.

Burnham said he wanted to "bring the change we have brought to Greater Manchester to the whole of the UK and make politics work properly for people".

The move follows Labour MP Josh Simons announcing he would resign as MP for Makerfield so Burnham could contest the seat. According to the Press Association, Starmer is not expected to block Burnham from becoming Labour's candidate in the by-election.

In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.8%, the S&P 500 up 0.8% and the Nasdaq Composite up 0.9%.

In Asia on Friday, the Nikkei 225 index in Tokyo was down 1.9%.

Data from the Bank of Japan showed producer prices accelerated sharply in April. The corporate producer price index rose 2.3% month-on-month, up from 0.8% in March and well ahead of the FXStreet-cited consensus forecast of 0.7%. On an annual basis, producer prices climbed 4.9%, accelerating from 2.6% and beating expectations for a 3.0% increase.

In China, the Shanghai Composite was down 0.9%, while the Hang Seng index in Hong Kong fell 1.9%. The S&P/ASX 200 in Sydney was down 0.3%.

Brent oil was trading at USD107.57 a barrel early Friday, higher than USD104.92 late Thursday.

US Treasury Secretary Scott Bessent claimed Iran's oil production had effectively come to a standstill due to the ongoing US blockade of Iranian ports.

Speaking to CNBC, Bessent said there had been "no loadings in the past three days" at Kharg Island, a major hub for Iranian crude exports. He added that storage facilities were nearing capacity as tankers remained unable to enter or leave Iranian ports.

The US blockade was imposed in response to Tehran's closure of the Strait of Hormuz, a key artery for global oil trade. Bessent warned that if Iran is forced to shut oil wells because storage capacity is exhausted, the country could face lasting damage to its energy infrastructure.

Gold was quoted at USD4,563.79 an ounce early Friday, lower than USD4,688.75 on Thursday.

In Friday's corporate calendar, Grafton Group and Unite Group both issue trading statements.

In the economic calendar on Friday, Switzerland industrial production, Ireland trade balance, Canada manufacturing sales, the New York Empire State manufacturing index and US industrial production.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

China urges lasting Middle East truce, reopening of shipping lanes

2026-05-15T05:41:26Z

China called on Friday for a lasting truce in the Middle East and for shipping lanes to be reopened "as soon as possible", as the strategic Strait of Hormuz has been effectively closed during the war with Iran.

Iran has largely blocked shipping through the vital strait since conflict broke out with the US and Israel on February 28 and Washington has blockaded Tehran's ports.

Iran's grip over the waterway has rattled global markets and given Tehran significant leverage.

US President Donald Trump has discussed Iran during a summit in Beijing with Chinese leader Xi Jinping.

In an interview with Fox News after the first day of the summit wrapped, Trump said Xi had effectively assured him that China was not preparing to militarily aid Tehran.

"He said he's not going to give military equipment... he said that strongly," Trump told Fox.

"He'd like to see the Hormuz Strait open, and said 'if I can be of any help whatsoever, I would like to help,'" Trump added.

When asked if the two presidents had discussed the subject, China's foreign ministry responded on Friday saying it hoped a lasting ceasefire could be reached "as soon as possible" to restore peace and stability in the Middle East.

"Shipping lanes should be reopened as soon as possible in response to the calls of the international community," it added.

"There is no point in continuing this conflict which should not have happened in the first place."

In peacetime, the Hormuz Strait accounts for roughly a fifth of global oil and liquefied natural gas shipments, along with other key commodities.

Iran's Revolutionary Guards said on Thursday that naval forces had allowed a number of Chinese ships to pass through the strategic Strait of Hormuz since the previous night.

source: AFP

Donald Trump indicates military destruction of Iran "to be continued"

2026-05-15T05:34:18Z

Donald Trump has suggested the military destruction of Iran is "to be continued".

The US president made the comment in an early morning Truth Social post on the final day of his visit to China.

It comes amid stalled talks with Iran after Trump said the already fragile ceasefire was "on life support" and dismissed Tehran's peace proposal as "garbage".

He listed the military offensive in the Middle East, which has led to a stand-off over the strategic Strait of Hormuz waterway, as one of his achievements "during the 16 spectacular months of the Trump Administration".

In the post, the president insisted that Chinese leader Xi Jinping was not talking about him when he "very elegantly referred to the US as perhaps being a declining nation".

While he did not say where these remarks were made, Trump claimed they were directed at his predecessor Joe Biden and claimed "on that score, he was 100% correct".

He said: "President Xi was not referring to the incredible rise that the US has displayed to the world during the 16 spectacular months of the Trump Administration."

This included "…military victory and thriving relationship in Venezuela, the military decimation of Iran (to be continued!) — Strongest military on earth by far, economic powerhouse again…"

Trump added: "In fact, President Xi congratulated me on so many tremendous successes in such a short period of time."

The president had previously said his Chinese counterpart had offered during talks to assist in negotiating an end to the Iran war and reopening the Strait of Hormuz to shipping.

Trump told Fox News: "He'd like to see the Hormuz strait open. He said, 'If I can be of any help whatsoever I would like to help'."

He also said Xi had assured him China would not provide Iran with military equipment.

Iran's stranglehold on the Gulf sea route since the US and Israel triggered the war has affected economies around the world, including the UK's.

The effective closure of the shipping lane to oil and gas supplies has sparked a global energy crisis and sent fuel prices soaring.

The US has imposed its own blockade of Iranian ports in response.

A top US commander on Thursday told Congress that America had the military power to permanently reopen the strait, but would not be drawn on why this has not happened.

Admiral Brad Cooper, who heads US forces in the Middle East, instead referred legislators on Capitol Hill to the White House administration.

A separate naval mission ordered by Donald Trump to reopen the sea route lasted only a few days before it was pulled amid reports of Saudi opposition, with fears it could lead to more attacks by Tehran and threaten the fragile ceasefire.

Tensions continue to flare in the area, with one ship seized and another sunk after being attacked in the latest incidents.

Appearing before the Senate armed services committee, Admiral Cooper was asked if the US was able to permanently open the strait.

In reply, he said: "Without getting into specifics we have the military power, yes."

On the ability of Iran to carry out attacks in the region, he said: "They have a very moderate, if not small, capability to continue strikes and we, of course, have accordingly prepared for such a contingency."

He was pressed by Democratic committee member senator Elissa Slotkin, who asked: "But if we have the power to militarily open the strait and their threat is, quote, moderate or small, why wouldn't we just do it?"

Admiral Cooper said: "I really would defer to policymakers in this particular matter."

He pointed out the strait was the subject of ongoing negotiations.

Admiral Cooper also indicated the White House had been warned of the threat of Iran closing the sea channel in response to military strikes.

Responding to questioning, he said: "One of my responsibilities as a combatant commander is to generate a wide range of options with associated risks and opportunities and present those to the (defence) secretary and the president."

And despite claims by Trump of regime change in Iran following the military offensive, Admiral Cooper told senators the country's hardline revolutionary guard was still "exercising significant authority".

During Trump's visit to Beijing, it has been reported that Iran has allowed several Chinese vessels to transit the strait.

By Nick Lester, Press Association US Editor in Washington DC

Press Association: News

source: PA

UPDATE: Trump says made "fantastic trade deals" with Xi

2026-05-15T04:02:50Z

President Donald Trump said he made "fantastic trade deals" with Xi Jinping, as the pair met on Friday at final meetings of a superpower summit that according to the US leader has also reaped a Chinese offer to help open the Strait of Hormuz.

Trump had arrived in Beijing seeking to seal deals in sectors including agriculture, aviation and artificial intelligence, as well as to contain differences between the two sides in a number of tense geostrategic areas – not least the Middle East war.

Trump's overtures to Xi, whom he described as a "great leader" and "friend", have so far been met with more muted tones by the Chinese leader.

But the US leader said "a lot of good" has come out of the visit.

"We've made some fantastic trade deals, great for both countries," he said, as Xi accompanied him through the gardens of Zhongnanhai, a central leadership compound next to Beijing's Forbidden City.

In an interview with Fox News after the first day of the summit wrapped, Trump said the talks in Beijing had gone well and that Xi had agreed to several US wishlist points.

"He said he's not going to give military equipment... he said that strongly," Trump told Fox.

"He'd like to see the Hormuz Strait open, and said 'if I can be of any help whatsoever, I would like to help,'" Trump added.

Asked whether the two leaders had discussed Iran, the Chinese foreign ministry on Friday released a statement calling for "a comprehensive and lasting ceasefire".

"Shipping lanes should be reopened as soon as possible in response to the calls of the international community," it added.

The warm handshakes and pomp on Thursday were somewhat overshadowed by a blunt warning from Xi on a much longer standing geopolitical flashpoint, Taiwan.

Shortly after talks started, Chinese state media reported Xi had told Trump that missteps on the sensitive issue of Taiwan could push their two countries into "conflict".

The Fox News interview did not touch upon Taiwan, and Trump did not comment to reporters when asked about the matter on Thursday.

However, US Treasury Secretary Scott Bessent told CNBC the president would say more "in the coming days".

Trade is expected to be a focus of Friday's conversation.

In the Fox interview, Trump said one big business deal had already been struck, saying Xi had agreed to purchase "200 big" Boeing jets.

Shares of the US aviation giant fell after Trump's comments, in a sign the market had expected a more robust purchase from China.

The US president said Beijing had also voiced interest in buying US oil and soybeans.

China, which is the key foreign customer of Iranian oil, bought small amounts of US oil before Trump imposed tariffs last year.

It has sharply slowed down purchases of US soybeans, turning instead to Brazil.

And Treasury Secretary Scott Bessent told CNBC that Trump and Xi were talking about setting up "guardrails" for the use of artificial intelligence.

Bessent said the world's "two AI superpowers are going to start talking", though US export controls on the advanced technology to China remain a sore point in relations.

Trump's visit to Beijing is the first by an American president in nearly a decade.

On Thursday, Xi referenced the "Thucydides Trap", a political theory referring to an increased likelihood of war when a rising new power competes with an established great power.

Xi said however that he thought the US and China could "transcend" this danger.

Responding to the comments in a social media post in the early hours of Friday, Trump said Xi "very elegantly referred to the US as perhaps being a declining nation".

He insisted Xi was not referring to the US under his watch, which he claimed was experiencing an "incredible rise", but rather the country under his predecessor Joe Biden.

"Two years ago, we were, in fact, a Nation in decline," Trump posted on his Truth Social site. "Now, the US is the hottest Nation anywhere in the world, and hopefully our relationship with China will be stronger and better than ever before!"

He said that Xi "congratulated me on so many tremendous successes".

By Danny Kemp

source: AFP

Trump traded hundreds of millions in US securities in 2026

2026-05-15T02:49:54Z

US President Donald Trump was involved in buying and selling securities linked to American companies in transactions that totaled hundreds of millions of dollars in the first quarter of 2026, according to government documents released Thursday.

Trump's financial disclosure report to the Office of Government Ethics detailed purchases of securities for tech companies like Nvidia Corp, Apple Inc, Amazon.com Inc, Microsoft Corp, Adobe Inc, Oracle Corp and Uber Technologies Inc, with each transaction ranging between USD1 million and USD5 million.

There were more than 2,300 purchases in the period from January to March.

The nearly 1,300 sales in the quarter included transactions involving Microsoft, Amazon and Meta Platforms Inc worth between USD5 million and USD25 million, the disclosure report showed.

The filing did not give specifics on the type of security, for example, if they were stocks or bonds.

The Office of Government Ethics oversees the executive branch, working to "prevent financial conflicts of interest and other violations of the ethics rules," according to its website.

Trump has routinely brushed off accusations that he and his family are using the presidency to enrich themselves and their cronies.

Among the examples of potential conflict of interest, the chief executive officers of Nvidia and Apple were part of the US delegation this week as Trump visited Beijing to meet with Chinese counterpart Xi Jinping, in hopes of sealing deals with the world's second-largest economy.

Trump's assets are held in a trust administered by his son, Donald Jr. It is structured in such a way that Trump can, at any time, resume direct management of his holdings.

source: AFP

Applied Materials impresses as AI drives record quarter and outlook

2026-05-14T20:32:01Z

Applied Materials Inc on Thursday delivered strong sales growth in the April quarter and gave upbeat guidance reflecting its rapid global build-out of AI computing infrastructure.

The Santa Clara, California-based semiconductor-focused materials engineering company said net income rose 31% to USD2.81 billion in the three months to April 26, the second quarter of its financial year, from USD2.14 billion the year prior.

Diluted earnings per share climbed 33% to USD3.51 from USD2.63 a year ago, or by 20% to USD2.86 from USD2.39 on a non-GAAP diluted basis,

Revenue grew 11% to a record USD7.91 billion from USD7.10 billion, beating Zacks Research consensus of USD7.69 billion.

Shares in Applied Materials rose 4.2% in after hours trading after closing up 0.9% at USD440.56 each in New York on Thursday.

"Applied Materials delivered record quarterly performance, and we now expect our semiconductor equipment business to grow more than 30 percent in calendar 2026," said Gary Dickerson, president and chief executive. "The rapid global build-out of AI computing infrastructure combined with Applied’s strong leadership positions in leading-edge logic, DRAM and advanced packaging provide an exceptionally strong foundation for sustained, multi-year revenue and profit growth."

Semiconductor Systems revenue rose to USD5.97 billion from USD5.40 billion with Applied Global Services sales of USD1.67 billion, up from USD1.42 billion.

GAAP gross margin improved to 49.9% from 49.1% with non-GAAP gross margin of 32.1%, up from 30.7%.

"The growth in AI that Applied has been investing for is now in full force," said Brice Hill, chief financial officer.

Looking ahead, Applied Materials expects third quarter revenue of USD8.95 billion, plus or minus USD500 million, compared to Bloomberg-cited consensus of USD8.15 billion, and non-GAAP diluted EPS of USD3.36, plus or minus USD0.20, ahead of USD2.88 consensus.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Chip startup Cerebras hits USD80 billion in value in stock debut

2026-05-14T20:21:37Z

Shares of US chip startup Cerebras Systems surged Thursday in its trading debut, hitting a market value of USD80 billion at one point.

The Sunnyvale, California-based artificial intelligence company closed up 68% at USD311.07, rising sharply from its USD185 opening price.

The strong market debut underscores demand for equities tied to the artificial intelligence investment boom. The company raised USD5.55 billion in an initial public offering, the largest so far in 2026.

Cerebras had twice raised its target price for the listing on Nasdaq electronic exchange.

Cerebras specializes in giant processors, also known as wafer-scale systems. They are viewed as suitable for the development and use of AI models.

After three years of sustained growth following the release of OpenAI's ChatGPT, the AI infrastructure market has exploded this year.

In January, OpenAI committed to acquiring a massive quantity of Cerebras processors, a contract valued at over USD10 billion.

As part of this agreement, Cerebras granted OpenAI warrants - derivative products that can be converted into shares under certain conditions. If all the conditions are met, OpenAI could control more than 10% of Cerebras's capital.

source: AFP

NEW YORK MARKET CLOSE: S&P passes 7,500 as technology surge continues

2026-05-14T20:19:26Z

Shares ended higher in New York on Thursday after a strong quarterly showing from Cisco, as the artificial intelligence trade continues to overlook geopolitical tensions.

The Dow Jones Industrial Average closed up 370.26 points, 0.8%, at 50,063.46. The S&P 500 rose 56.99 points, 0.8%, to 7,501.24. The Nasdaq Composite ended up 232.88 points, 0.9%, at 26,635.22.

"So long as the AI mania persists, and US earnings remain at their impressive level, it seems unlikely that markets will begin to worry about rising yields and surging energy costs. So long as the music keeps playing investors will have to chase the moves in equity markets, continuing the feedback loop that has driven such a rapid recovery. It is never wise to stand in the way of an oncoming train, and for now luck is running with the bulls," said IG Chief Market Analyst Chris Beauchamp.

Cisco jumped 13% on Thursday after it promised to slash 5% of its workforce, citing its goal to be a "winner" in the AI era.

"The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest. I'm confident Cisco will be one of those winners. This means making hard decisions – about where we invest, how we're organized, and how our cost structure reflects the opportunity in front of us," said Chief Executive Chuck Robbins.

The CEO's comments came after Cisco said revenue increased 12% to a record USD15.84 billion in the three months to April 25, the third quarter of its financial year, from USD14.15 billion a year ago and ahead of the USD15.55 billion VA consensus.

Non-GAAP diluted earnings per share increased 10% year-on-year to USD1.06, ahead of Visible Alpha consensus of USD1.03.

Cisco reported "significant momentum" for AI infrastructure from hyperscalers. It said USD5.3 billion of AI orders had been taken financial year to date.

As a result, Cisco now expects full-year AI orders of USD9 billion, raised from USD5 billion, and AI revenue of USD4 billion, lifted from USD3 billion.

Boeing shares slid 4.7% on Thursday after a multi-billion dollar deal with China fell short of expectations.

Amid his trip to the country, US President Donald Trump said China would buy 200 Boeing aircraft, its first purchase of US-made commercial jets in nearly a decade.

Investors had been expecting the order to total 500 aircraft, according to Bloomberg, ahead of the 300-aircraft order announced during Trump's first trip to China in 2017.

"It was sort of like a statement but I think it was a commitment," Trump said, describing his conversation with President Xi Jinping in a Fox News interview.

Verizon on Thursday said it has reached an agreement in principle with T-Mobile and AT&T for a joint venture that aims to end wireless dead zones in the US.

The telecommunications companies said the venture will pool limited spectrum resources to increase capacity, enhance the customer experience, and help satellite providers reach more customers through a unified platform.

"Our goal is to make staying connected simple, no matter where you are - on a rural highway, in a national park, on a boat, or during an emergency," said AT&T Chair John Stankey. "By joining with other carriers, we're bringing our combined expertise to accelerate our customers' access to reliable, and always-on coverage everywhere."

Verizon closed down 0.3%, T-Mobile fell 1.1% and AT&T closed down 0.4%.

Cerebras Systems closed up 68% at USD311.07 on Thursday in its opening day of trading.

The Sunnyvale, California-based artificial intelligence company had a market value of around USD69 billion at 20:00 BST, when it was up 72% on the day, according to Bloomberg.

On the data front, US retail sales grew 4.9% on-year in April, picking up speed from a 4.2% increase in March, the Census Bureau said Thursday.

On-month, sales were 0.5% higher in April, in line with FXStreet cited consensus. Sales had risen 1.6% in March from February.

"April retail sales echoed what we've heard across corporate conference calls for weeks now: The US consumer remains resilient despite soaring gas prices," said Bret Kenwell at eToro.

Separate data from the US Department of Labor showed initial jobless claims totalled 211,000 in the week to May 9, rising from 200,000 a week prior. The prior reading was upwardly revised slightly from 199,000.

The latest reading topped the FXStreet cited consensus of 205,000.

Continuing jobless claims for the week to May 2 totalled 1.782 million, rising from 1.758 million. The prior reading was downwardly revised from 1.766 million.

"The trend in claims remains low, with unadjusted initial claims 14K lower than a year ago and unadjusted continuing claims down 85K. State level data show broad-based health. Both the latest Challenger and [Worker Adjustment and Retraining Notification] numbers suggest layoffs will remain relatively low over coming months," said Pantheon Macro.

"Nonetheless, hiring indicators remain very weak, suggesting a high share of new claimants will struggle to find new work quickly."

Against the dollar, the euro was at USD1.1677 late Thursday, down from USD1.1710 on Wednesday. Sterling fell to USD1.3405 from USD1.3522. Against the yen, the dollar was at JPY158.19, up from JPY157.89.

A barrel of Brent was quoted at USD105.96 late Thursday, up from USD105.80 on Wednesday. West Texas Intermediate rose to USD101.47 from USD101.19.

The yield on the 10-year US Treasury was at 4.46% on Thursday, down from 4.47% on Wednesday. The 30-year yield fell to 5.01% from 5.04%.

Gold fell to USD4,670.09 an ounce late Thursday from USD4,689.27 on Wednesday.

In Europe, London's FTSE 100 closed up 0.5%. The DAX 40 in Frankfurt rose 1.3%. The CAC 40 in Paris gained 0.9%.

In China, the Shanghai Composite ended down 1.5%, while the Hang Seng Index in Hong Kong ended up by less than 0.1%. The Nikkei 225 in Tokyo fell 1.0%. The S&P/ASX 200 in Sydney closed up 0.1%

Friday's global economic diary includes US industrial production data and the New York empire state manufacturing index.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Reunert guides lower interim earnings as power cable units weigh

2026-05-14T16:17:34Z

Reunert Ltd warned on Thursday that it expects interim earnings to slump, dragged down by its power cable businesses.

The Woodmead, Johannesburg-based industrial firm operates in the fields of electrical engineering, information & communication technologies and defence & allied technologies.

The company guides for earnings per share from continuing operations of between 179 rand cents and 191 cents for the six months that ended March 31, down between 21% and 26% from 243 cents a year earlier.

The company has classified Blue Nova Energy Pty Ltd as discontinued operation as it is held for sale.

Headline EPS from continuing operations is estimated between 179 cents and 191 cents, compared to 238 cents.

For the first half, EPS from total operations is likely to decline to a range of 180 cents to 190 cents, from 209 cents, while HEPS is seen between 179 cents and 191 cents, from 227 cents.

Reunert attributed said the slump in interim earnings mainly to the underperformance of the electrical engineering segment, particularly the power cable businesses.

Power cable businesses were hit by weaker demand in both South African and Zambian infrastructure investment; the rapid appreciation of the Zambian kwacha against the dollar; and delayed orders due to record high raw material commodity prices.

Apart from the electrical engineering unit, Reunert said is expects strong operating performance in the defence cluster, and a stable operating performance in the information & communication technology segment.

Reunert plans to publish its interim financial results on or about Friday next week.

Shares in Reunert ended up 1.3% to ZAR71.00 on Thursday in Johannesburg.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: FTSE shrugs off political drama as oil price dips

2026-05-14T16:10:04Z

The FTSE 100 closed higher on Thursday as ongoing political uncertainty was offset by encouraging UK GDP data, a cooling oil price and easing gilt yields.

The FTSE 100 closed up 47.58 points, 0.5%, at 10,372.93. The FTSE 250 ended up 299.70 points, 1.3%, at 22,828.07, and the AIM All-Share fell just 0.09 of a point at 817.12.

The Cboe UK 100 ended up 0.7% at 1,030.68, the Cboe UK 250 was 1.6% higher at 19,737.01, and the Cboe Small Companies Index ended down 0.3% at 18,291.68.

In the UK, Health Secretary Wes Streeting quit his post, paving the way for a possible leadership challenge against embattled Prime Minister Keir Starmer.

Starmer, who led his Labour Party to victory in 2024, is fighting to save his job after poor local election results last week. Four junior ministers have resigned, and more than 80 Labour MPs have urged him to quit, but he has vowed to cling on.

Streeting criticised the "drift" at the top of government and told the PM it is "clear" he will not lead Labour into the next election.

While stopping short of announcing a bid for the top job, Streeting urged Starmer to allow the "best possible field of candidates" to run to replace him in Downing Street.

The UK bond market took the news in its stride with the yield on 10-year gilts trading at 5.00%, cooling from 5.07% the day before.

The pound fell against the dollar to USD1.3480 on Thursday afternoon from USD1.3505 on Wednesday. But against the euro, sterling climbed to EUR1.1549 from EUR1.1542 on Wednesday.

Investors were also weighing encouraging UK economic growth data for the first quarter.

UK gross domestic product rose 0.6% in the three months to March, accelerating from revised growth of 0.2% in the fourth quarter of 2025 and in line with the FXStreet-cited consensus.

A lower oil price gave support to bond and equity markets, reflecting positive sentiment about the US-China summit.

Investors are hoping that US President Donald Trump's visit to China results in progress in Washington's efforts to reach a peace agreement with Iran, leading to the reopening of the Strait of Hormuz.

The White House said that Trump and his Chinese counterpart, Xi Jinping, held a "good" meeting in which they agreed that the Strait of Hormuz "must remain open".

Iran has largely blocked shipping through the vital waterway, through which a fifth of the world's oil and natural gas normally passes, since the outbreak of war with the US and Israel on February 28.

"The two sides agreed that the Strait of Hormuz must remain open to support the free flow of energy," the White House said.

Brent crude for July delivery was trading at USD104.92 a barrel on Thursday, down compared to USD107.33 at the time of the equities close in London on Wednesday.

The euro traded lower against the greenback, at USD1.1677 on Thursday, from USD1.1715 on Wednesday. Against the yen, the dollar was trading at JPY158.14, higher than JPY157.81.

In Europe on Thursday, the CAC 40 in Paris ended up 0.9%, and the DAX 40 in Frankfurt advanced 1.3%.

In New York, the Dow Jones Industrial Average was up 0.8%, the S&P 500 rose 0.9%, and the Nasdaq Composite was 1.0% higher.

Cisco stormed 15% higher after it announced, after Wednesday's US market close, better-than-expected third quarter results and fourth quarter guidance.

The San Jose, California-based digital communications technology company raised expectations for AI sales and orders, pointing to "broad-based record-high demand for our technology."

The yield on the US 10-year Treasury narrowed to 4.46% on Thursday from 4.50% on Wednesday. The yield on the US 30-year Treasury fell to 5.01% from 5.05%.

In London, Legal & General gained 6.2% as the Financial Times suggested that potential bidders, including insurers and alternative asset managers, had been "running the rule" over the business.

But Chief Executive Antonio Simoes told the FT that he was not considering a break-up or sale and was "100% focused on executing my strategy."

"There's no discussions or anything else going on," he added.

Nonetheless, one current L&G insider told the FT that "it feels like we’re being dressed up for a sale."

Relx added 1.4% after hosting a seminar focused on its Risk Business Services division, which primarily looked at Fraud & Identity solutions, around 16% of Risk and Business Analytics sales.

JPMorgan analyst Daniel Kerven said management reiterated its expectation of continued high single-digit underlying organic revenue growth for the division for a decade or more, and that revenue will grow faster than costs.

But 3i Group slumped 13% after disappointing sales figures from its key investment, Dutch discount retailer Action.

The London-based private equity investor said that at the end of week 19, to May 10, Action's year-to-date like-for-like sales growth rate was 2.4%, slowed from 6.8% a year prior.

Furthermore, consumer caution persisted in France, and traffic declined in Germany amid a deterioration in the situation in the Middle East at the end of March.

Citigroup analyst Andrew Lowe said Action's year-to-date week 19 LFL sales growth implies nil year-on-year growth between weeks 12 and 19, with flat LFL sales growth in France and Germany.

While Dan Coatsworth, head of markets at AJ Bell, said 3i has "paid the price" for being too reliant on a single holding.

"For a long time, Action was seen as invincible, one of the fastest growing retailers in Europe and the reason why investors were happy to pay a large premium to own 3i Group shares. That goodwill has now disappeared," he added.

Elsewhere, the FTSE 250 saw two possible bids emerge for Tate & Lyle and Spire Healthcare.

London-based food and beverage ingredient provider Tate & Lyle leapt 45% after it confirmed a takeover approach from Ingredion, worth up to 615 pence per share, or GBP2.74 billion in total.

US peer Ingredion later confirmed its 595p per share non-binding, indicative all-cash offer, which implies a total valuation of GBP2.65 billion. Additionally, Tate & Lyle shareholders would have the right to receive a final dividend of up to 13p for the year ended March 31, as well as an interim dividend of up to 7p for the six months ended in September.

London-based private healthcare provider Spire, meanwhile, soared 49% as it backed a takeover proposal from its second-largest shareholder, Toscafund Asset Management.

Spire said Toscafund made a non-binding proposal of 250 pence per share in cash, valuing the company at GBP1.01 billion.

Gold traded at USD4,688.75 an ounce on Thursday, down slightly from USD4,690.48 on Wednesday.

The biggest risers on the FTSE 100 were Legal & General, up 15.30p at 263.80p, Imperial Brands, up 110.00p at 2,866.00p, Admiral Group, up 122.00p at 3,294.00p, British American Tobacco, up 155.00p at 4,962.00p and Whitbread, up 69.00p at 2,340.00p.

The biggest fallers on the FTSE 100 were 3i, down 309.00p at 2,112.00p, Burberry, down 79.50p at 1,083.00p, Babcock International, down 39.60p at 975.40p, Tesco, down 11.50p at 450.70p and Coca-Cola HBC, down 92.00p at 4,172.00p.

Friday's global economic calendar has US industrial data and the New York empire state manufacturing index.

Friday's local corporate calendar has trading statements from student accommodation provider Unite and building materials distributor Grafton.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Xi warns Trump on Taiwan, Trump says Xi offered help to open Hormuz

2026-05-14T16:03:54Z

Chinese President Xi Jinping warned his US counterpart Donald Trump that missteps on Taiwan could push their two countries into "conflict", a stark opening salvo as they met in Beijing on Thursday at a superpower summit.

Trump arrived in China with accolades for his host, calling Xi a "great leader" and "friend" and extending an invitation to visit the White House in September.

Beyond the pomp as he welcomed Trump, Xi in less effusive tones said the two sides "should be partners and not rivals", and quickly highlighted the issue of Taiwan – which Beijing claims as its territory.

"The Taiwan question is the most important issue in China-US relations," Xi said, according to remarks published by Chinese state media shortly after the start of the talks, which lasted two hours and 15 minutes.

"If mishandled, the two nations could collide or even come into conflict, pushing the entire China-US relationship into a highly perilous situation," Xi added.

Trump's trip to Beijing is the first by a US president in nearly a decade, with the grand reception belying a roster of unresolved trade and geopolitical tensions.

Xi greeted Trump with a red-carpet welcome at the opulent Great Hall of the People, with military band fanfare, a 21-gun salute and a host of schoolchildren chanting "welcome!"

Seemingly enjoying the ceremony, Trump said that "the relationship between China and the USA is going to be better than ever before".

Xi instead referenced a political theory about the risks of war when a rising power rivals a ruling one, inspired by an ancient Greek historian.

"Can China and the US transcend the so-called 'Thucydides Trap' and forge a new paradigm for major-power relations?" Xi asked.

At a state banquet in the evening, the Chinese leader insisted it was possible.

"Achieving the great rejuvenation of the Chinese nation and making America great again can totally go hand in hand...and advance the well-being of the whole world," Xi said, in reference to Trump's MAGA movement.

But there are longstanding hurdles to overcome, with Taiwan looming large.

The US recognises only Beijing, but is required under US law to provide weapons to the self-ruled democracy for its defence.

China has sworn to take the island and has not ruled out using force, ramping up military pressure in recent years.

Following Xi's Thursday comments, Taipei called China the "sole risk" to regional peace, and insisted "the US side has repeatedly reaffirmed its clear and firm support".

Trump had said Monday he would speak to Xi about US arms sales to Taiwan, a departure from Washington's previous insistence that it will not consult Beijing on the matter.

The White House said the initial talks on Thursday had been "good", though it did not mention Taiwan in the readout.

Adam Ni, editor of newsletter China Neican, told AFP that while Xi's "blunt language" was not uncommon in party state media, it was unusual coming from the leader himself.

China has been "signalling a desire for US compromise on Taiwan", the National University of Singapore's Chong Ja Ian told AFP.

Xi's demand could suggest "they see some opportunity to convince Trump", he said.

US Treasury Secretary Scott Bessent told CNBC the president would say more on Taiwan "in the coming days".

Trump told Fox News that Xi had offered China's help to open the Hormuz Strait, the key oil route largely blocked since the US-Iran war erupted.

He also said that Xi had pledged not to send military equipment to aid Iran.

"He said he's not going to give military equipment… he said that strongly," Trump told the Hannity show. "He'd like to see the Hormuz Strait open, and said 'if I can be of any help whatsoever, I would like to help.'"

The Chinese foreign ministry earlier said the Middle East had been discussed but did not give further details.

The two men also discussed economic cooperation, with Trump hoping for business deals on agriculture, aircraft and other sectors.

Elite businessmen in his delegation, including Nvidia's Jensen Huang and Tesla's Elon Musk, attended the welcome ceremony and joined for part of the Trump-Xi talks, the White House said.

At the state banquet, before tucking into a menu including lobster and Beijing roast duck, Trump said the talks had been "extremely positive", describing the evening ahead as "another cherished opportunity to discuss among friends".

By Danny Kemp, Isabel Kua and Ludovic Ehret

source: AFP

Lebanon and Israel hold new talks in US as ceasefire nears end

2026-05-14T15:03:23Z

Lebanon and Israel held new peace talks in Washington on Thursday, as their latest ceasefire – considered to still be in place despite hundreds of deaths in Israeli strikes – nears its end.

Israel's military said it was striking Hezbollah targets in south Lebanon on Thursday after warning residents of several towns and villages there and in the country's east to evacuate. It also said a Hezbollah drone fell in Israeli territory, wounding several civilians.

Lebanon's state-run National News Agency (NNA) reported Israeli airstrikes on the south and east, including in areas not covered by the warning, a day after the health ministry said intense raids killed 22 people, eight of them children.

One diplomat privy to the two-day talks in Washington said discussions started just after 0900 (1300 GMT) at the State Department.

Lebanese and Israeli representatives last met on April 23 at the White House, where US President Donald Trump announced a three-week ceasefire extension and voiced optimism for a groundbreaking agreement between the countries, which have technically been at war for decades.

Trump at the time made the bold prediction that during the three-week extension, he would welcome Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun to Washington for a historic first summit between the countries.

The summit did not happen, with Aoun saying a security deal and an end to Israeli attacks were needed before such a landmark meeting.

Hezbollah lawmaker Ali Ammar on Thursday reiterated his group's rejection of the direct talks, saying they amounted to "free concessions" to Israel.

The ceasefire, which began on April 17, lasts through Sunday.

Still, Israeli strikes have killed more than 400 people during the truce, according to an AFP tally of health ministry figures.

Israel has vowed to keep pursuing attacks against Hezbollah, the Shia armed group and political movement backed by Iran's ruling clerics.

Hezbollah drew Lebanon into the Middle East war on March 2 with rocket fire at Israel in retaliation for the killing of Iran's supreme leader Ayatollah Ali Khamenei in US-Israeli strikes days earlier.

"Anyone who threatens the State of Israel will die because of his actions," Netanyahu said last week after an Israeli strike on Beirut's southern suburbs killed a senior Hezbollah commander.

A Lebanese official told AFP that the country would seek "the consolidation of the ceasefire" during the talks in Washington.

"The first thing is to put an end to the death and destruction," the official told AFP on condition of anonymity.

Iran has demanded a lasting ceasefire in Lebanon before any agreement to end the wider war in the region, and it has frustrated Trump by refusing his appeals for an accord on his terms.

The Middle East war has roiled the global economy and impacted hundreds of millions of people worldwide.

Israeli attacks since March 2 have killed more than 2,800 people in Lebanon, including at least 200 children, according to Lebanese authorities, a toll Hezbollah says includes its fighters.

Israel has pounded Hezbollah strongholds in the south and Beirut's southern suburbs, and has invaded the border region, parts of which Israel previously occupied for around two decades until withdrawing in 2000.

Lebanon has repeatedly called for Israel to withdraw its troops from the south, and insists on extending state sovereignty over all its territory as part of a commitment last year to disarm Hezbollah.

Washington has endorsed Beirut's commitment to do so, while pressing it to take more action.

The US believes "comprehensive peace is contingent on the full restoration of Lebanese state authority and the complete disarmament of Hezbollah," a State Department statement said.

"These talks aim to break decisively from the failed approach of the past two decades, which allowed terrorist groups to entrench and enrich themselves, undermine the authority of the Lebanese state, and endanger Israel's northern border," it said.

Thursday's meeting will be the third round of talks between the two countries, which have no diplomatic relations.

Unlike the previous two rounds, neither Secretary of State Marco Rubio nor Trump will participate, as both are on a state visit to China.

The US mediators include the ambassadors to Israel and Lebanon – respectively Mike Huckabee, an evangelical pastor and staunch supporter of Israel's regional ambitions, and Michel Issa, a Lebanese-born businessman and golf partner of Trump.

Lebanon was represented by special envoy Simon Karam, a lawyer and diplomat who has defended Lebanon's sovereignty, as well as its ambassador in Washington.

Israel's team will include its ambassador in Washington, Yechiel Leiter, a Netanyahu ally who is close with the Israeli settler movement in the occupied West Bank.

By Shaun Tandon

source: AFP

FOREX: Dollar nears JPY158; pound above USD1.35 despite UK uncertainty

2026-05-14T13:00:53Z

The dollar was largely on the up on Thursday, though sterling perked up to above USD1.35 against the greenback, despite continued UK political uncertainty.

In the latest development in Westminster, Health Secretary Wes Streeting has stepped down from the position, plunging UK Prime Minister Keir Starmer's premiership into crisis.

In his resignation letter, Streeting criticised the "drift" at the top of government and told the prime minister it is "clear" he will not lead Labour into the next election.

Streeting stopped short of announcing a bid for the top job, calling for the "best possible field of candidates" to run to replace him in Downing Street, suggesting he could be in favour of including Andy Burnham.

Against the dollar, the pound rose to USD1.3508 on Thursday from USD1.3493 on Wednesday. Versus the euro, it traded at EUR1.1543, rising from EUR1.1523.

XTB analyst Kathleen Brooks commented: "Yields remain elevated, but the bond market has been relatively stable in the past 24 hours. This could be because no other Labour Party member has made a formal leadership challenge against Starmer, or because thereby are reports that left of the party are planning on keeping Rachel Reeves as chancellor if Starmer goes. For now, we think that the selling pressure on UK bonds is on pause, and the sell off could start again if we get high tax/ high spend candidates standing against Starmer."

UK gross domestic product registered surprising first quarter growth, but analysts are sceptical that this will continue as geopolitical worries intensify.

The UK economy grew strongly in the first quarter of 2026, driven by the services sector, according to data from the Office for National Statistics on Thursday.

UK gross domestic product rose 0.6% in the three months to March, accelerating from revised growth of 0.2% in the fourth quarter of 2025 and in line with the FXStreet-cited consensus.

Lloyds Banking analysts commented: "That represents a clear step-up from the subdued performance at the end of last year. However, the timing of the data is important. Much of the strength predates the escalation in the Iran conflict, meaning the latest figures likely overstate the current pace of activity just as the outlook has become more uncertain. As with previous quarters, the profile within the period matters. Growth strengthened into February and March following a flat start to the year in January."

Lloyds also noted a "clear pattern" of strong starts to the year subsiding. In each of 2025 and 2024, the best quarterly growth came in the first three months of the year.

"Some caution is warranted in extrapolating the latest momentum," Lloyds added.

The dollar index rose to 98.59 points on Thursday from 98.53 on Wednesday.

The euro fell to USD1.1698 from USD1.1704.

"The US dollar is trading quietly against the major currencies," Bannockburn analyst Marc Chandler commented.

"The greenback has also traded as close to JPY158 as possible without going over. This is where the Bank of Japan may have intervened last week."

Against the yen, the buck advanced to JPY157.96 on Thursday from JPY157.82 on Wednesday.

US initial jobless claims were higher than expected in the week just gone, number on Thursday showed.

According to the Department of Labor, initial jobless claims totalled 211,000 in the week to May 9, rising from 200,000 a week prior. The prior reading was upwardly revised slightly from 199,000.

The latest reading topped the FXStreet cited consensus of 205,000.

US retail sales increased last month, according to a reading from the Census Bureau on Thursday.

Retail sales grew 4.9% on-year in April, picking up speed from a 4.2% increase in March.

On-month, sales were 0.5% higher in April, in line with FXStreet cited consensus. Sales had risen 1.6% in March from February.

Against the Australian dollar, the buck rose to AUD1.3815 from AUD1.3798. Versus its Canadian counterpart, the US currency rose to CAD1.3725 from CAD1.3695.

The Swiss franc edged up to USD1.2781 from USD1.2774.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UPDATE: UK PM Starmer on brink as Streeting quits, criticising "drift"

2026-05-14T12:40:10Z

Wes Streeting has quit as UK Health secretary, paving the way for a leadership challenge and plunging Keir Starmer's premiership into crisis.

In his resignation letter, Streeting criticised the "drift" at the top of government and told the prime minister it is "clear" he will not lead Labour into the next election.

Streeting's letter read: "It is now clear that you will not lead the Labour Party into the next general election and that Labour MPs and Labour unions want the debate about what comes next to be a battle of ideas, not of personalities or petty factionalism.

"It needs to be broad, and it needs to be the best possible field of candidates. I support that approach and I hope you will facilitate it."

Streeting's resignation follows days of turmoil in which calls have mounted for the prime minister to step down in the wake of Labour's election mauling last week.

He blamed the "unprecedented" results in part on "the unpopularity of this government", adding: "There are many reasons we could point to: from individual mistakes on policy like the decision to cut the winter fuel allowance to the 'island of strangers' speech, all of which have left the country not knowing who we are or what we really stand for."

Streeting praised Starmer's "many great strengths" and "courage and statesmanship on the world stage", but continued: "Where we need vision, we have a vacuum. Where we need direction, we have drift.

"This was underscored by your speech on Monday. Leaders take responsibility, but too often that has meant other people falling on their swords.

"You also need to listen to your colleagues, including backbenchers, and the heavy-handed approach to dissenting voices diminishes our politics."

Streeting said improvements in NHS waiting times could be one reason to "remain in post, but as you know from our conversation earlier this week, having lost confidence in your leadership, I have concluded that it would be dishonourable and unprincipled to do so".

It was unclear whether Streeting had the 81 Labour MPs needed to announce a leadership challenge against the prime minister, with earlier briefings from rival factions that he did not.

The move could force a leadership contest in which Angela Rayner has also indicated she could run, with other possible contenders including Energy Secretary Ed Miliband, armed forces minister Al Carns and Burnham.

The Greater Manchester Mayor would first need to find a seat and win a by-election, meaning his inclusion in a leadership race could stretch the timetable by months.

By Sophie Wingate, Press Association Deputy Political Editor

Press Association: News

source: PA

US initial jobless claims loftier than expected at 211,000

2026-05-14T12:35:58Z

US initial jobless claims were higher than expected in the week just gone, number on Thursday showed.

According to the Department of Labor, initial jobless claims totalled 211,000 in the week to May 9, rising from 200,000 a week prior. The prior reading was upwardly revised slightly from 199,000.

The latest reading topped the FXStreet cited consensus of 205,000.

Continuing jobless claims for the week to May 2 totalled 1.782 million, rising from 1.758 million. The prior reading was downwardly revised from 1.766 million.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

CORRECT: 3i starts share buyback but second half "challenging"

2026-05-14T12:26:42Z

(Correcting the reporting currency for Action to EUR from GBP).

3i Group PLC on Thursday announced a higher net asset value as it said the second financial half has been challenging for shareholders, as like-for-like sales growth for Action slowed recently.

3i shares fell 9.8% to 2,184.00 pence each on Thursday afternoon in London.

The London-based private equity investor said diluted net asset value per share was 3,030 pence as at March 31, 19% higher than 2,542p a year prior.

Total return on opening shareholders' funds was 22% in the financial year ended March 31, lower than 25% a year prior.

3i said non-food discounter Action remained its "principal driver" of return. In the first three months of 2026, Action's net sales rose by 14% to EUR4.01 billion from EUR3.52 billion a year ago, with operating earnings before interest, tax, depreciation and amortisation up 7.3% to EUR498 million from EUR464 million.

However, 3i noted that at the end of week 19, to May 10, Action's year-to-date like-for-like sales growth rate was 2.4%, slowed from 6.8% a year prior. 3i said that seasonal categories underperformed amid cooler weather in recent weeks and high comparables last year.

Further, consumer caution persisted in France and traffic declined in Germany amid a deterioration in the situation in the Middle East at the end of March. Meanwhile, Action's trading in the Netherlands, Belgium and southern Europe is in line or ahead of expectations, 3i said.

Chief Executive Officer Simon Borrows said it was "another good year" with "strong" contributions from Action, the broader private equity portfolio, and infrastructure.

He added: "The market environment remains complex with heightened geopolitical risk from the unresolved Middle East situation in particular. As a result, we expect to see an increase in inflation over the coming months."

The total dividend per share for financial 2026 is 84.5 pence, up 16% from 73.0p a year ago.

3i starts a GBP750 million share buyback programme on Thursday, to run until the maximum of the end of 2026.

"This performance provides a strong foundation as we enter FY2027 against an increasingly uncertain geopolitical backdrop."

He added: "Despite the progress in the year, the board is conscious that the second half of the year has been challenging for shareholders, as the share price has adjusted from the significant premium to NAV that had built up, particularly over the preceding two years."

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

COMMODITIES: Oil prices stable as Trump meets Xi in Beijing; gold down

2026-05-14T11:50:42Z

Oil prices steadied on Thursday as markets awaited the outcome of talks between US President Donald Trump and Chinese President Xi Jinping over the Iran conflict.

Spot Brent crude was trading at USD105.34 a barrel around midday on Thursday, down from USD107.79 on Wednesday. Spot West Texas Intermediate eased to USD100.77 a barrel from USD101.93.

Oil prices stood above the USD100 a barrel mark, as market participants monitored developments around Trump-Xi summit. Trump is on an official visit in China from Wednesday to Friday.

The oil market is in a "wait-and-see mode", amid the Trump-Xi meeting, ING analysts Warren Patterson and Ewa Manthey said.

"The market could be pinning too much hope on the US-China talks yielding some positive results on Iran," Patterson and Manthey said, adding: "Some hope that China could exert pressure on Iran to reach a deal with the US, to end the war and lead to a resumption of energy flows through the Strait of Hormuz."

For now, the energy market remains relatively stable amid a cautious backdrop and uncertainty about the potential developments around the status of the Strait of Hormuz, Exness analyst Eric Chia said.

"The lack of tangible progress toward a broader agreement continues to support prices, while persistent disruptions in the waterway are reinforcing concerns that energy flows from the Middle East could remain limited for an extended period," Chia said.

Meanwhile, official US crude oil inventories declined by 4.3 million barrels for the week that ended May 8 to 452.9 million barrels, the Energy Information Administration reported on Wednesday.

The International Energy Agency's latest monthly oil market report on Wednesday aggressively revised its demand forecasts for 2026 downward, ING's Patterson and Manthey noted. It now expects global oil demand to fall by 420,000 barrels a day year-on-year, leaving it 1.3 million barrels a day below pre-war level forecasts for 2026.

Opec's monthly oil market report, also released on Wednesday, showed its crude oil production fell by a further 1.73 million barrels a day month-on-month to 18.98 million barrels a day in April.

The benchmark TTF gas futures contract for delivery in one month rose to EUR47.15 per megawatt hour on Thursday from EUR46.71 on Wednesday.

Spot gold was quoted at USD4,695.47 an ounce on Thursday, slightly down from USD4,697.99 at the same time on Wednesday. Silver inched down to USD86.77 an ounce from USD86.92.

The yellow metal on Thursday remained within a "consolidation range" as investors monitored high-level talks between Trump and Xi for signals on the geopolitical outlook, Tony Sage of Critical Metals Corp said.

"At the same time, the precious metal continued to face pressure from elevated global bond yields and persistent inflation concerns," Sage said.

Inflation risks have risen due to surging crude oil prices, owing to the Middle East conflict that started late in February.

Elsewhere, platinum was priced at USD2,110.80 an ounce on Thursday, down from USD2,141.70 on Wednesday. Palladium softened to USD1,470.42 an ounce from USD1,491.33.

In base metals, the copper price firmed to USD14,083.00 per tonne from USD14,080.00, and aluminium climbed to USD3,651.00 from USD3,574.50.

Copper extended gains above the USD14,000 per tonne level, trading close to its all‑time high of USD14,527.50 set in late January, ING's Patterson and Manthey said.

"Supply-side risks continue to dominate price action. Firmer spot demand in China and tightening conditions across refined markets are underpinning prices," Patterson and Manthey said. "Limited sulphur availability in the Middle East continues to constrain parts of the supply chain."

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: Shares up as Strait of Hormuz talks lift mood

2026-05-14T11:19:18Z

Stock prices in London were higher by midday Thursday, with the FTSE 100 building on early gains as investors digested developments in US-China talks and awaited a heavy slate of US economic data.

The FTSE 100 index was up 31.73 points, 0.3%, at 10,357.60. The FTSE 250 was up 143.26 points, 0.6%, at 22,671.64, and the AIM all-share was down 1.28 points, 0.2%, at 815.92.

The Cboe UK 100 was up 0.6% at 1,030.05, the Cboe UK 250 was up 0.8% at 19,586.90, and the Cboe small companies was down 0.3% at 18,304.67.

In European equities on Thursday, the CAC 40 in Paris was up 0.6%, while the DAX 40 in Frankfurt was up 1.3%.

Geopolitics remained firmly in focus after the White House said US President Donald Trump and Chinese President Xi Jinping had held a "good" meeting and agreed that the Strait of Hormuz "must remain open".

Iran has largely blocked shipping through the vital waterway - through which roughly a fifth of the world's oil and natural gas normally passes - since the outbreak of war with the US and Israel on February 28.

"The two sides agreed that the Strait of Hormuz must remain open to support the free flow of energy," the White House said.

Following the talks, Trump said he had invited Xi to visit the White House on September 24.

China is directly affected by the disruption. More than half of the crude imported by sea into China comes from the Middle East and mainly transits through the strait, according to maritime analytics firm Kpler.

According to the White House readout, Xi expressed an interest in purchasing more American oil to reduce China's reliance on the strait in future. Beijing's own statement on the meeting did not reference such an interest.

For its part, the White House statement did not mention any discussions between the two leaders on Taiwan, the self-ruled island claimed by Beijing and a sensitive topic in US-China diplomacy.

Brent oil was quoted at USD105.71 a barrel at midday in London on Thursday, lower compared with USD107.33 late Wednesday.

The pound was quoted at USD1.3512 midday Thursday, little changed from USD1.3520 on Wednesday. Against the euro, sterling edged up to EUR1.1543 from EUR1.1542 a day prior.

Across the Atlantic, stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.6%, the S&P 500 index up 0.2%, and the Nasdaq Composite up 0.2%.

The yield on the US 10-year Treasury was quoted at 4.46%, narrowing from 4.50%, while the yield on the US 30-year Treasury eased to 5.03% from 5.05%.

A slew of US data is due later in the session. Initial jobless claims are scheduled for 1330 BST, with consensus expecting 205,000, up from 200,000 the previous week. US retail sales are also due at 1330 BST, with markets forecasting a 0.5% month-on-month rise in April after a 1.7% increase in March.

Export prices are expected to rise 1.1% month-on-month in April, following a 1.6% gain in March, while import prices are forecast to increase 1.0% after rising 0.8% previously.

Back in London, Health Secretary Wes Streeting has delayed any move to launch a leadership challenge against Prime Minister Keir Starmer, according to the FT.

Allies said his plans are on hold for now, though they claimed pressure on the prime minister to quit is intensifying.

Starmer's supporters argue Streeting has not secured the 81 MPs needed to trigger a formal contest.

Meanwhile, The Telegraph reported that Streeting allies claimed Cabinet ministers will go to Downing Street in the afternoon and demand Starmer to resign.

Attention has also turned to other potential contenders. Angela Rayner said she has been cleared by HM Revenue & Customs over a GBP40,000 unpaid tax issue, removing a possible obstacle to entering a contest, though she stopped short of confirming any bid.

On the FTSE 100, Legal & General led the gainers, up 5.6%, followed by Standard Life, up 2.6%, and National Grid, up 2.2%, as the utility said it will invest GBP70 billion over five years as earnings rise.

3i Group was among the biggest fallers, down 13%, after the private equity investor said the second half of its financial year had been "challenging".

Burberry Group fell 4.0%, extending losses after its recent results update.

On the FTSE 250, Spire Healthcare soared 46% after saying it has received a 250p-per-share takeover proposal from funds advised by Toscafund Asset Management LLP and would be minded to recommend the offer if a firm bid is made. The shares had closed at 150.40p on Wednesday.

Spire said Toscafund, its second-largest shareholder, is undertaking confirmatory due diligence, and discussions remain at an early stage.

At the bottom of the FTSE 250, PageGroup and Partners Group Private Equity were among the worst performers, down 5.0% and 4.0% respectively, as their shares traded ex-dividend.

Among smaller caps, TheraCryf jumped 16% after reporting progress in its Ox-1 addiction programme.

The drug development company said its Ox-1 blocker has shown potential for class-leading performance in binge eating disorder and added that the first toxicology species in the programme has been well tolerated.

Gold was quoted at USD4,700.47 an ounce, compared with USD4,690.487 on Wednesday.

Still to come on Thursday's economic calendar are US weekly jobless claims, retail sales, export and import prices, business inventories for March and US EIA natural gas stocks.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UPDATE: Trump says talks with China's Xi "positive and productive"

2026-05-14T11:11:39Z

US President Donald Trump said Thursday that talks earlier with Chinese counterpart Xi Jinping had been "extremely positive" while addressing a banquet on the first full day of a closely watched summit in Beijing.

"We had extremely positive and productive conversations and meetings today with the Chinese delegation earlier," said Trump in the lavish Great Hall of the People, describing the evening as "another cherished opportunity to discuss among friends".

source: AFP

Donald Trump says Xi Jinping invited to White House in September

2026-05-14T10:56:22Z

US President Donald Trump said Thursday he had invited Chinese President Xi Jinping to visit the White House on September 24.

"It is my honor to extend an invitation to you, Madam Peng, to visit us at the White House this September 24, and we look forward to it," Trump said, addressing Xi and his wife Peng Liyuan at a banquet following talks in Beijing.

source: AFP

NEPI Rockcastle describes first-quarter performance as "robust"

2026-05-14T09:42:39Z

NEPI Rockcastle NV on Thursday hailed its first-quarter performance as "robust", with income and tenant sales rising.

The Amsterdam-based real estate firm reported net rental and related income of EUR157.7 million for the first quarter that ended March 31, up 3.4% from EUR152.5 million a year earlier.

Like-for-like tenant sales rose 3.8% in first three months, with growth outpacing inflation, while footfall was broadly stable.

NEPI Rockcastle said it had delivered a robust start to 2026, with resilient operating trends in the first quarter.

Cost recoveries remained strong, with service charge income covering 96% of property operating expenses, the compny said.

"The first quarter of 2026 confirms the underlying quality of our portfolio," NEPI Rockcastle Chief Executive Officer Marek Noetzel said, adding: "We continue to capture rental growth through indexation and active asset management, while maintaining very high occupancy and strong collection rates."

"The momentum in markets such as Poland and Croatia remains encouraging, and our flagship assets continue to demonstrate pricing power and resilience," Noetzel said.

NEPI Rockcastle said its development pipeline exceeds EUR800 million over the next three years, including developments, extensions, refurbishments and the green energy programme. Of this, it had spent EUR338 million in the first quarter.

Looking ahead, the group maintains its 2026 earnings guidance at about 3% growth over 2025 distributable earnings per share. In 2025, distributable earnings per share was 62.03 euro cents.

Shares in NEPI Rockcastle were up 1.1% to ZAR141.50 on Thursday late morning in Johannesburg.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

Trump, Xi agreed Strait of Hormuz "must remain open" - White House

2026-05-14T09:38:28Z

US President Donald Trump and his Chinese counterpart Xi Jinping held a "good" meeting on Thursday in which they agreed that the Strait of Hormuz "must remain open", the White House said.

"The two sides agreed that the Strait of Hormuz must remain open to support the free flow of energy," the White House said.

China is directly affected by the lack of petroleum crossing the Strait of Hormuz.

More than half of the crude imported by sea to China comes from the Middle East and mainly transits through the strait, according to maritime analytics firm Kpler.

According to the White House, Xi expressed an interest in purchasing more American oil to reduce China's dependence on the strait in the future.

Beijing's own readout of the meeting did not mention any such interest.

For its part, the White House statement did not mention any discussions between the two leaders on Taiwan, the self-ruled island claimed by Beijing and a sensitive subject in US-China diplomacy.

Xi earlier warned that "conflict" between China and the US could break out, should the issue be mishandled, Chinese state media had reported.

source: AFP

Donald Trump-Xi Jinping meeting was "good" - White House

2026-05-14T09:27:16Z

US President Donald Trump and Chinese leader Xi Jinping held a "good" meeting in Beijing on Thursday, the White House said, in a readout that did not include any reference to Taiwan.

"President Trump had a good meeting with President Xi of China. The two sides discussed ways to enhance economic cooperation," the White House said in a statement.

It made no mention of discussions on self-ruled Taiwan that Xi earlier said could cause a "conflict" between China and the US should the issue be mishandled.

source: AFP

Rayner "cleared over tax affairs" amid uncertainty over UK PM's future

2026-05-14T08:21:13Z

Angela Rayner has said she has been cleared of deliberate wrongdoing in an investigation over her tax affairs, paving the way for a potential leadership bid amid uncertainty over Keir Starmer's future.

As UK Health Secretary Wes Streeting mulls whether to quit and challenge the UK prime minister, Starmer's former deputy indicated she could run in any race but insisted she would not "trigger" a contest.

Meanwhile, Chancellor Rachel Reeves warned colleagues not to put the economy "at risk" by "plunging the country into chaos" after figures showed gross domestic product grew in the first three months of the year.

Rayner, the MP for Ashton-under-Lyne, also denied she had done a deal with Greater Manchester Mayor Andy Burnham, whose path back to Westminster would be complicated by needing to fight and win a by-election.

Asked whether she would enter a contest, she told the Guardian: "I'll play my part in doing everything we possibly can to deliver the change, because it's not a personal ambition, I know the difference it makes."

She said Starmer should "reflect on" whether to step aside following a bruising set of local election results that have intensified speculation about his future in No 10, with Labour openly divided over how best to move forward.

Rayner said the Health secretary, who is believed to have told allies he is preparing to resign on Thursday in a bid for the top job, would need to "justify his actions".

"I do understand my colleagues and why they're angry and upset," she said. "I do understand why we're having this conversation now, but we need to get through that as quickly as possible."

Rayner has settled GBP40,000 in unpaid stamp duty, but has not paid any penalty as a result of the HMRC investigation into her underpayment of the levy on a property purchase, the row which triggered her resignation from the government and had overshadowed her prospects of a potential leadership run.

The chancellor, who has avoided commenting publicly on the turmoil engulfing Labour, said the party's MPs have an "important decision to make" in an intervention outside Downing Street on Thursday.

Addressing reporters gathered outside No 10 after figures showed the UK economy grew by 0.6% in the first three months of the year, Reeves said: "Labour MPs have got an important decision to make today, but the numbers show that the economy is growing and that when we entered this [Middle East] conflict, our economy was growing strongly because of the decisions that I have made as chancellor. We shouldn't put that at risk."

Asked what her message to Streeting was, she told the BBC that "plunging the country into chaos at a time when there is conflict in the world, but also at a time when our plan to grow the economy is starting to bear fruit" would be a mistake.

Chief Secretary to the Treasury James Murray said he hoped Streeting would still be Health Secretary "by the end of the day" and warned colleagues against going "into a chaotic process of uncertainty".

But in a further sign of discontent with Starmer's leadership, Labour Mayor of West Yorkshire Tracy Brabin stopped short of saying he should stay in No 10.

"I would expect to see change if he were to remain as prime minister," she told the BBC's Today programme, adding: "We can't continue as we are."

Efforts to lever Starmer out of Downing Street appeared to stall on Wednesday, with no further ministerial resignations or backbench calls for his resignation as Westminster turned its attention to the King's Speech.

Labour's trade union backers had pulled their support for Starmer that morning, while Streeting's team failed to deny claims he was poised to quit.

If he mounts a challenge, Streeting will need the backing of 81 Labour MPs to begin a formal contest.

While some 87 MPs have so far publicly called for Starmer's resignation, they are not united behind a single candidate to replace him.

Other figures regarded as potential challengers include Energy Secretary and former party leader Ed Miliband and armed forces minister Al Carns.

In an article for The New Statesman published on Thursday, former Royal Marines officer Carns said: "We do not need more slogans, strategies, press releases or commissions. We need action."

Deputy Prime Minister David Lammy has questioned whether any of the prime minister's rivals can muster the necessary support to launch a contest.

Starmer himself is expected to fight any leadership challenge, and spent Wednesday afternoon meeting ministers and Labour MPs as he sought to avert a coup.

On Thursday, he will seek to wrest back control of the political agenda with the introduction of legislation overhauling social housing and the "right to buy".

Ahead of the introduction of the Social Housing Renewal Bill, intended to boost the supply of council homes, Starmer said his government was "taking responsibility, rebuilding social housing, and delivering the change people voted for".

Meanwhile, the prospect of a return to Parliament for Greater Manchester Mayor Andy Burnham receded as more MPs declared they did not intend to give up their seats to allow him to contest a by-election.

Manchester MPs Afzal Khan and Jeff Smith had been rumoured in Westminster to be willing to make way for Burnham.

But both men expressly denied to the Press Association that they were preparing to stand down.

Burnham, the potential contender favoured by the soft left of the party, pulled out of his regular Thursday morning BBC Radio Manchester phone-in slot, with his spokesman telling the broadcaster: "He has to prioritise discussions arising from last week's local elections."

By Press Association Reporters

Press Association: News

source: PA

LONDON MARKET OPEN: FTSE 100 flat as UK GDP beats forecasts

2026-05-14T08:14:59Z

Stock prices in London opened mixed on Thursday, as investors digested stronger-than-expected UK growth data and a flurry of corporate updates.

The FTSE 100 index opened down 0.59 points, marginally lower, at 10,323.54. The FTSE 250 was up 102.51 points, 0.5%, at 22,630.86, and the AIM all-share was down 0.91 points, 0.1%, at 816.30.

The Cboe UK 100 was up 0.4% at 1,027.39, the Cboe UK 250 was up 0.6% at 19,539.47, and the Cboe small companies was down 0.1% at 18,328.77.

Fresh data showed the UK economy unexpectedly gathered pace in the first quarter of 2026, despite uncertainty linked to the war in Iran.

According to the Office for National Statistics, gross domestic product rose 0.6% in the first quarter, accelerating from revised growth of 0.2% in the previous three months and matching market expectations. The expansion was driven by the services sector, which grew 0.8% over the quarter, while production output increased 0.2% and construction output rose 0.4%.

On a monthly basis, GDP rose 0.3% in March, beating expectations for a decline, with services output also up 0.3% in the month. Industrial production fell 0.2% month-on-month in March and was flat year-on-year.

Separate ONS data showed the UK total trade balance recorded a GBP9.66 billion deficit in March. The visible trade deficit widened to GBP27.22 billion, reflecting a gap between goods exports and imports, while the non-EU trade deficit totalled GBP15.20 billion during the month.

In European equities on Thursday, the CAC 40 in Paris was up 0.5%, while the DAX 40 in Frankfurt was up 1.1%.

The pound was quoted at USD1.3511 early Thursday, marginally lower than USD1.3520 at the London equities close on Wednesday. Against the euro, sterling fell slightly to EUR1.1537 from EUR1.1542 a day prior.

The euro traded at USD1.1711 early Thursday, marginally lower than USD1.1715 late Wednesday. Against the yen, the dollar was quoted at JPY157.87 versus JPY157.81.

In the FTSE 100, 3i Group plunged 18% despite reporting a higher net asset value, as it warned that the second half of its financial year had been challenging for shareholders and that like-for-like sales growth at its key holding Action had slowed.

The London-based private equity investor said diluted net asset value per share was 3,030 pence as at March 31, up 19% from 2,542p a year earlier. Total return on opening shareholders' funds was 22% in the financial year ended March 31, down from 25% the previous year.

3i said non-food discounter Action remained its "principal driver" of returns. In the first three months of 2026, Action's net sales rose 14% to EUR4.01 billion from EUR3.52 billion a year earlier, while operating earnings before interest, tax, depreciation and amortisation increased 7.3% to GBP498 million from GBP464 million.

However, 3i noted that at the end of week 19, to May 10, Action's year-to-date like-for-like sales growth was 2.4%, down from 6.8% a year earlier. It said seasonal categories underperformed amid cooler weather in recent weeks and tougher comparatives.

Burberry fell 2.4% despite swinging to a pretax profit of GBP49 million for financial 2026, from a GBP66 million loss a year earlier. Adjusted operating profit rose to GBP160 million from GBP26 million, even as revenue edged down to GBP2.42 billion from GBP2.46 billion.

The luxury fashion house said fourth-quarter performance was driven by momentum in Greater China and the Americas, while EMEIA revenue was flat amid reduced tourist activity linked to the Middle East conflict.

Burberry also announced that Chair Gerry Murphy will retire after the release of first-half results in November, to be succeeded by Bridgepoint founder William Jackson.

On the FTSE 250, Spire Healthcare surged 42% after confirming it had received a 250p-per-share takeover proposal from funds advised by Toscafund Asset Management LLP and would be minded to recommend the offer if a firm bid is made. The shares had closed at 150.40p on Wednesday.

Spire said Toscafund, its second-largest shareholder, is undertaking confirmatory due diligence and that discussions remain at an early stage.

Watches of Switzerland rose 14% after reporting record revenue of GBP1.83 billion in financial 2026, up 11% year-on-year, driven by strong growth in the US, which now accounts for more than half of group sales. The luxury watch retailer expects adjusted Ebit of GBP152 million to GBP155 million for the year, ahead of prior guidance.

Among smaller caps, Gattaca jumped 13% after saying trading is ahead of market expectations, with strong contract recruitment growth continuing into the second half. The specialist staffing firm now expects continuing underlying pretax profit for financial 2026 of at least GBP6.0 million, above prior guidance of GBP4.5 million.

In the US on Wednesday, Wall Street ended mixed. The Dow Jones Industrial Average fell 0.1%, the S&P 500 rose 0.6% and the Nasdaq Composite gained 1.2%.

Geopolitics remained in focus as US President Donald Trump and Chinese President Xi Jinping opened a high-stakes summit in Beijing, centred on Iran, trade and Taiwan.

Trump told Xi that their countries would have a "fantastic future together" and said it was "an honour to be your friend". Xi struck a more measured tone, saying the US and China "should be partners and not rivals", adding that "a stable China-US relationship is a boon for the world" and warning that "cooperation benefits both sides, while confrontation harms both".

Chinese state media reported that Xi warned Trump that relations could deteriorate sharply if Taiwan was mishandled, calling it the "most important issue" in China-US relations and cautioning that the two nations could "collide or even come into conflict" if it were not managed carefully.

The yield on the US 10-year Treasury was quoted at 4.46%, narrowing from 4.50%, while the yield on the US 30-year Treasury eased to 5.03% from 5.05%.

Brent oil was trading at USD106.41 a barrel early Thursday, lower than USD107.33 late Wednesday.

In Asia on Thursday, the Nikkei 225 index in Tokyo closed down 1.0%. In China, the Shanghai Composite fell 1.5%, while the Hang Seng index in Hong Kong ended marginally lower. The S&P/ASX 200 in Sydney closed up 0.1%.

Gold was quoted at USD4,700.47 an ounce early Thursday, higher than USD4,690.487 on Wednesday.

Still to come on Thursday's economic calendar are US weekly jobless claims, retail sales, export and import prices, business inventories for March and US EIA natural gas stocks.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Marco Rubio says Cuba leaders must go as US dangles USD100 million

2026-05-14T08:10:53Z

US Secretary of State Marco Rubio said that crisis-hit Cuba's leadership must change as Washington renewed an offer on Wednesday of USD100 million in aid if the communist-run island agrees to cooperate.

Cuba has been suffering severe economic tumult led by an energy shortage that plunged 65% of the country into darkness on Tuesday.

Cuba's leaders have blamed US sanctions but Rubio, a Cuban-American and vociferous critic of the government established by Fidel Castro, said the system was to blame including corruption by the military.

"It's a broken, nonfunctional economy, and it's impossible to change it. I wish it were different," he told Fox News host Sean Hannity on Air Force One as he traveled with President Donald Trump to China.

"We'll give them a chance. But I don't think it's going to happen," Rubio said.

"I don't think we're going to be able to change the trajectory of Cuba as long as these people are in charge in that regime."

Trump – who since the start of the year has deposed Venezuela's leftist leader but seen less success in a war on Iran – has mused that Cuba could be next and that the US could take over the island 145 kilometers, 90 miles, off Florida.

Rubio said last week after talks at the Vatican that Cuba had rejected a US offer for USD100 million in assistance, an assertion denied by Havana.

The State Department publicly renewed the proposal on Wednesday, a week after new US sanctions targeted key actors in Cuba's state-controlled economy and their foreign partners.

"The regime refuses to allow the US to provide this assistance to the Cuban people, who are in desperate need of assistance due to the failures of Cuba's corrupt regime," the State Department said in a statement.

"The decision rests with the Cuban regime to accept our offer of assistance or deny critical [life]-saving aid and ultimately be accountable to the Cuban people for standing in the way of critical assistance," it said.

It said the support would include direct humanitarian assistance and funding for "fast and free" internet access – which presumably would benefit dissidents in the one-party state that restricts media.

Cuba has seen a series of rare protests as economic misery grips the island of 9.6 million people.

On Wednesday, several dozen people, some banging pots and pans, protested against power outages in the San Miguel del Padron neighborhood on Havana's outskirts, a resident told AFP.

Several other neighborhoods saw similar protests by evening, with residents in Playa shouting, "Turn on the lights!", witnesses told AFP.

Cuban President Miguel Diaz-Canel acknowledged the "particularly tense" situation but pinned blame squarely on the US.

"This dramatic worsening has a single cause: the genocidal energy blockade to which the US subjects our country, threatening irrational tariffs against any nation that supplies us with fuel," he wrote Wednesday on X.

Cuba lost the source for around half its fuel needs when US forces snatched Venezuelan leader Nicolas Maduro in a stunning raid in January, with his successor complying with US pressure not to aid Cuba.

Since then, only one oil tanker, from Russia, has reached Cuba.

The Trump administration already provided USD6 million in humanitarian aid to Cuba but channeled it through the charity of the Catholic Church, which has long played a go-between role for the two countries.

After Rubio's initial comments on the USD100 million offer, Foreign Minister Bruno Rodriguez said it was a "lie" that "no one here knows anything about."

"Will it be a donation, a deception or a dirty deal to curtail our independence? Wouldn't it be easier to lift the fuel blockade?" Rodriguez wrote on X.

Rubio has been widely reported to be in contact with segments of the Cuban elite in hopes of stirring change.

By Shaun Tandon with Lisandra Cots in Havana

source: AFP

3i starts GBP750 million share buyback but second half "challenging"

2026-05-14T07:54:36Z

3i Group PLC on Thursday announced a higher net asset value as it said the second financial half has been challenging for shareholders, as like-for-like sales growth for Action slowed recently.

3i shares fell 17% to 2,000.00 pence each on Thursday morning in London.

The London-based private equity investor said diluted net asset value per share was 3,030 pence as at March 31, 19% higher than 2,542p a year prior.

Total return on opening shareholders' funds was 22% in the financial year ended March 31, lower than 25% a year prior.

However, 3i noted that at the end of week 19, to May 10, Action's year to date like for like sales growth was 2.4%, slowed from 6.8% a year prior. 3i said that seasonal categories underperformed amid cooler weather in recent weeks and high comparables last year.

Further, there was continued consumer caution in France and lower traffic in Germany amid a deterioration of the situation in the Middle East at the end of March. Meanwhile, Action's trading in the Netherlands, Belgium and southern Europe is in line or ahead of expectations, 3i said.

Chief Executive Officer Simon Borrows said it was "another good year" with "strong" contributions from Action, the broader private equity portfolio, and infrastructure.

The total dividend per share for financial 2026 is 84.5 pence, up 16% from 73.0p a year ago.

3i starts a GBP750 million share buyback programme on Thursday, to run until maximum the end of 2026.

Chair David Hutchison said: "The group's performance in FY2026 was underpinned by our two high-quality long-term hold assets delivering consistent compounding growth and a broader portfolio that has, once again, demonstrated resilience through periods of uncertainty and disruption. This performance provides a strong foundation as we enter FY2027 against an increasingly uncertain geopolitical backdrop."

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Spire Healthcare says would back GBP1 billion bid from Toscafund

2026-05-14T07:49:12Z

Spire Healthcare Group PLC on Thursday backed a takeover proposal from its second-largest shareholder Toscafund Asset Management LLP.

The London-based private healthcare provider said Toscafund made a non-binding proposal of 250 pence per share in cash, valuing the company at GBP1.01 billion.

"The proposal includes an option for Spire Healthcare shareholders to elect for an unlisted rollover equity alternative in respect of some or all of their Spire Healthcare shares. The proposal follows a number of earlier proposals from Toscafund to the board regarding a possible offer for Spire Healthcare submitted in the context of the strategic review," Spire added.

Spire shares jumped 42% to 213.36 pence each for a GBP863.9 million market capitalisation on Thursday morning in London.

Toscafund owns around 18% of Spire. Mediclinic is the FTSE 250 listing's largest shareholder, owning just under 30%.

Spire said: "Over multiple years Spire Healthcare has made significant progress in strengthening care quality, diversifying revenue streams and driving efficiencies.

"The board remains highly confident in Spire Healthcare's standalone strategy and the value creation opportunity. However, the board has carefully considered the proposal together with its advisers and has concluded that the possible cash offer is at a value that the board would be minded to recommend unanimously to Spire Healthcare shareholders."

Toscafund is in the process of undertaking its confirmatory due diligence and Spire said talks between the duo "are currently at a relatively early stage". Toscafund has until the close of play on June 11 to announce whether it plans to make an offer.

Also on Thursday, Spire said trading in the first four months of the year has been in line with expectations.

"Private patient revenue has continued to grow strongly, particularly self-pay; with NHS revenue also as expected. NHS commissioning plans reset in April 2026 with the start of the NHS 2026/27 financial year, covering Spire's Q2-Q4 FY26 and Q1 FY27. We have good visibility of volumes, with more than 85% of commissioning agreed. Those volumes are aligned with our previously communicated guidance for NHS activity in FY26 and indicate strong growth for Spire in Q1 FY27, supported by the lower base of activity in Q1 FY26," the firm said.

Spire said its GBP30 million savings target is progressing. It expects a 2026 adjusted earnings before interest, tax, depreciation and amortisation outcome in line with 2025's GBP268.6 million.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Aviva reports General Insurance growth and improved Wealth performance

2026-05-14T07:47:47Z

Aviva PLC on Thursday reiterated guidance as it delivered growth in General Insurance premiums and said cost savings from its purchase of Direct Line were on track.

The London-based insurer said GI premiums rose 19% year-on-year to GBP3.43 billion in the three months to March from GBP2.89 billion the year prior.

UK & Ireland GI premiums increased 26% to GBP2.52 billion from GBP1.99 billion a year ago, with 59% growth in Personal Lines, supported by both the acquisition of Direct Line and growth in the intermediated channel. Commercial Lines were 7% lower reflecting the impact of the rating environment partly offset by strong retention.

Canada GI premiums grew 3% in constant currency but were flat overall at GBP907 million versus GBP904 million, with Personal Lines up 4% and Commercial Lines up 1%.

The group undiscounted combined operating ratio moved to 94.1% from 96.6%, with improvements across all markets.

Wealth net flows totalled GBP3.3 billion, up 49% from GBP2.3 billion a year ago, with strong growth in Platform and Workplace net flows.

The estimated solvency II shareholder cover ratio of 171% compared to 180% last year.

Aviva said it is on track to deliver Direct Line capital synergies of more than GBP350 million by the end of the year, which will add more than 7 percentage points to the shareholder cover ratio, Aviva said.

Following achievement of these synergies, Aviva expects solvency to be above its target range of 160% to 180% by full year 2026.

Aviva said it is on track to meet group targets, with operating EPS compound annual growth of 11% between 2025 to 2028, IFRS return on equity of more than 20% by 2028 and cash remittances of over GBP7 billion between 2026 to 2028.

In General Insurance, Aviva said it "carefully managing through the cycle", trading with discipline.

For 2026, it said it is firmly on track to meet guidance in the UK&I GI business to achieve a COR of more than 94%, and for the COR in Canada to be approaching 94%.

Shares in Aviva were down 0.9% at 611.80 pence in London on Thursday.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Burberry says at "inflection point" as swings to annual profit

2026-05-14T07:30:46Z

Burberry Group PLC on Thursday reported a swing to an annual profit, as the luxury retailer's turnaround progresses.

In addition, it said it has named its next chair, with incumbent Gerry Murphy retiring later this year.

Burberry said pretax profit in the year to March 28 amounted to GBP49 million, swinging from a loss of GBP66 million the year prior.

Revenue, however, fell 1.7% to GBP2.42 billion from GBP2.46 billion. The outcome was just shy of consensus, as revenue of GBP2.43 billion had been expected, according to company compiled consensus.

Burberry shares were down 3.2% at 1,125.00 pence each in London on Thursday morning.

Revenue was flat at constant currency, as expected. Reported operating profit was GBP115 million, swinging from a GBP3 million loss and beating consensus of GBP104 million.

Burberry, famed for its trench coats and signature beige check pattern, said fourth quarter comparable store sales rose 5% in the final quarter alone, also in line with consensus.

There was 10% growth in the Americas and also in China, while in the Asia Pacific region, growth was 2%. In the Europe, the Middle East, India & Africa grouping, comparable store sales were down 2% in the final quarter.

"Q4 declined 2% due to the continued impact of reduced tourist activity in the region and the Middle East conflict towards the end of the quarter," the firm explained.

For the full-year, retail revenue edged down 1.0% to GBP2.06 billion from GBP2.08 billion. Wholesale revenue was 5.0% lower at GBP303 million from GBP319 million.

For the new financial year, it expects wholesale revenue to grow by a mid-single digit percentage in the first half, from GBP148 million a year prior.

Capital expenditure of GBP120 million is expected for the full-year, with a restructuring charge of around GBP5 million. Restructuring costs in the year just ended rose to GBP45 million from GBP29 million.

Annualised cost savings are expected to be around GBP100 million by financial 2027, with GBP80 million delivered in the year just gone.

"This financial year marks a meaningful inflection point for Burberry. We've returned to profitable comparable sales growth, with a strong fourth quarter driven by momentum in Greater China and Americas. Our strategy is working and there are clear opportunities for further growth. As we look ahead, while mindful of the uncertain macro-economic environment, our focus is on disciplined execution of Burberry forward. With increased brand relevance and product authority, I am more confident than ever that Burberry is firmly positioned for long-term value creation," Chief Executive Officer Joshua Schulman said.

The company unveiled its "Burberry Forward" strategic plan back in November 2024. The firm aimed to reignite the brand by returning to its roots as a quintessentially British luxury house.

Also on Thursday, it named William Jackson as its next chair, replacing Gerry Murphy who is to leave on the day Burberry releases interim results in November. Jackson joins the company as a non-executive director on July 1, standing for re-election at the annual general meeting a fortnight later.

Jackson is the founder and former chief executive officer of Bridgepoint Group PLC.

"Under his leadership Bridgepoint became a substantial global investment organisation with interests in many consumer-facing businesses, including brands such as Pret a Manger and MotoGP. William chaired both of these brands throughout their transformative growth years while building the wider Bridgepoint portfolio," Burberry said.

He previously served as a non-executive at property investor British Land PLC and a senior independent director at housebuilder Berkeley Group Holdings PLC.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

National Grid to invest GBP70 billion over five years as earnings rise

2026-05-14T07:30:36Z

National Grid PLC on Thursday said it plans to invest at least GBP70 billion over five years as it reported increased earnings for the 2026 financial year.

The London-based electricity and gas utility, which operates the UK's electricity transmission network, reported pretax profit of GBP4.18 billion for the year ending March 31, up 15% from GBP3.65 billion a year prior.

Diluted earnings per share from continuing operations grew 9.0% to 65.2 pence from 59.8p.

However, revenue for the year was down 3.8% to GBP17.69 billion from GBP18.38 billion. Despite this, operating profit advanced 10% to GBP5.43 billion from GBP4.93 billion as operating costs sank 5.6% to GBP12.50 billion from GBP13.24 billion.

The company said its "strong operating performance" was partially offset by divestments, storm costs in the US, and customer refund charges related to the March Federal Energy Regulatory Commission judgement on New England Transmission.

The utility firm raised its final dividend by 4.1% to 32.14p per share from 30.88p a year ago, giving a total payout of 48.49p, up 3.8% from 46.72p.

Looking ahead, National Grid said it plans to make a total cumulative capital investment of at least GBP70 billion from financial 2027 to financial 2031, ending in March 2031.

It reported a record capital investment of GBP11.6 billion for financial 2026, up 18% from GBP9.8 billion a year ago.

"National Grid is embarking on the largest investment programme in our history, committing at least GBP70 billion over the next five years to modernise and expand energy networks across the UK and the US Northeast - networks that underpin economic growth, strengthen energy security and enable the transition to a cleaner, more flexible energy system," said Chief Executive Zoe Yujnovich.

"At the same time, we are building the skilled workforce needed to deliver this investment at pace, creating thousands of jobs across our markets."

National Grid forecasts underlying EPS annual growth of between 8% and 10% in the five years to financial 2031, from a baseline of 78.0p in financial 2026.

It aims to grow dividends in line with UK consumer prices index including owner occupiers' housing costs inflation, or CPIH.

For financial 2027, it expects a "strong operational performance" with underlying EPS up between 13% and 15%, reflecting "higher allowed revenue".

CEO Yujnovich added: "Through executing today's programme with pace and precision, and transforming our capabilities we will be able to meet the rapidly growing demand and enable a more efficient energy system - one that supports long-term affordability and reliability for customers."

Shares in National Grid were up 1.5% at 1,295.00p on Thursday morning in London.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON BRIEFING: UK GDP accelerates as Burberry returns to profit

2026-05-14T07:00:29Z

UK economic growth accelerated in the first quarter as the services sector led a 0.6% expansion, while Burberry swung to annual profit, while Spire Healthcare Group said it would be minded to accept a 250p-per-share takeover proposal from funds advised by Toscafund.

Here is what you need to know before the London market open:

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MARKETS

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FTSE 100: called up 0.5% at 10,372.15

GBP: slightly higher at USD1.3529 (USD1.3520 at previous London equities close)

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ECONOMICS

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The UK economy grows 0.6% in the first quarter of 2026, accelerating from revised growth of 0.2% in the previous quarter and matching market expectations, according to the Office for National Statistics. Growth is driven by the services sector, which rises 0.8% in the quarter, while production output increases 0.2% and construction output climbs 0.4%. Monthly GDP rises 0.3% in March, beating expectations for a decline, as services output also grows 0.3% in the month. Industrial production falls 0.2% month-on-month in March and is flat year-on-year.

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Separate Office for National Statistics data show the UK total trade balance records a GBP9.66 billion deficit in March. The visible trade deficit widens to GBP27.22 billion, reflecting a gap between goods exports and imports, while the non-EU trade deficit totals GBP15.20 billion during the month.

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BROKER RATINGS

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DZ Bank cuts Vodafone to 'hold' (buy) - fair value 120 (130) pence

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LBBW raises Shell to 'buy' (hold) - price target 3,450 (2,900) pence

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COMPANIES - FTSE 100

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National Grid reports pretax profit of GBP4.18 billion for the year ending March 31, rising from GBP3.65 billion a year prior, while diluted earnings per share increase to 65.2p from 59.8p despite revenue falling to GBP17.69 billion from GBP18.38 billion. The utility firm raises its total dividend by 3.8% to 48.49p per share, including a final dividend of 32.14p. National Grid says capital investment reaches a record GBP11.6 billion in financial 2026 and expects cumulative investment of GBP70 billion between financial 2027 and 2031, supporting asset growth of around 10% annually. The company forecasts underlying earnings per share growth of 13% to 15% in financial 2027 and a compound annual growth rate of 8% to 10% between financial 2027 and 2031, while aiming to grow dividends in line with UK CPIH inflation.

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Burberry reports pretax profit of GBP49 million for financial 2026, swinging from a GBP66 million loss a year prior, while adjusted operating profit rises to GBP160 million from GBP26 million despite revenue edging down to GBP2.42 billion from GBP2.46 billion. Burberry says fourth-quarter performance is driven by momentum in Greater China and the Americas, while EMEIA revenue is flat amid reduced tourist activity linked to the Middle East conflict. The luxury fashion firm expects wholesale revenue to grow by a mid-single-digit percentage in the first half of financial 2027 and says it is encouraged by progress as it focuses on long-term value creation. Burberry also says Chair Gerry Murphy will retire after the release of first-half results in November, to be succeeded by Bridgepoint founder William Jackson.

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Aviva says first-quarter general insurance premiums rise 19% year-on-year to GBP3.4 billion, while wealth assets under management increase 18% to GBP233 billion with net flows of GBP3.3 billion. The insurer says the undiscounted combined operating ratio improves to 94.1% from 96.6% a year prior and it remains on track to achieve a UK & Ireland combined operating ratio below 94% in 2026. Aviva also says it is on track to deliver 11% compound annual operating earnings per share growth between 2025 and 2028 and is making good progress integrating Direct Line Insurance Group PLC.

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COMPANIES - FTSE 250

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Spire Healthcare says it has received a 250p-per-share takeover proposal from funds advised by Toscafund Asset Management LLP and would be minded to recommend the offer if a firm bid is made. Shares in the company closed at 150.40p on Wednesday. Spire says Toscafund, its second-largest shareholder, is undertaking confirmatory due diligence, and discussions remain at an early stage. Separately, the healthcare provider says trading in the first four months of 2026 is in line with expectations, with strong growth in private patient revenue, particularly self-pay. Spire also says progress continues on its GBP30 million savings target, and it expects full-year adjusted Ebitda to be broadly in line with 2025.

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Watches of Switzerland says revenue rises 11% to a record GBP1.83 billion in financial 2026, driven by strong growth in the US, which now accounts for more than half of group sales. The luxury watch retailer expects adjusted Ebit of GBP152 million to GBP155 million for the year, ahead of prior guidance. Watches of Switzerland says it expects financial 2027 revenue growth of 5% to 10% at constant currency and adjusted Ebit margin expansion of 40 to 80 basis points. The firm says it remains mindful of the geopolitical environment but has minimal direct exposure to the Middle East or tourist consumers.

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OTHER COMPANIES

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Gattaca says trading is ahead of market expectations as strong contract recruitment growth continues into the second half. The specialist staffing firm now expects continuing underlying pretax profit for financial 2026 of at least GBP6.0 million, ahead of prior guidance of GBP4.5 million. Gattaca says contract recruitment has continued to perform strongly across its core sectors, while Chief Executive Matthew Wragg says strategic investments and operational discipline are supporting performance despite challenging market conditions.

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By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UK economy grows 0.6% in first quarter as services sector leads

2026-05-14T06:18:29Z

The UK economy grew strongly in the first quarter of 2026, driven by the services sector, according to data from the Office for National Statistics on Thursday.

UK gross domestic product rose 0.6% in the three months to March, accelerating from revised growth of 0.2% in the fourth quarter of 2025 and in line with the FXStreet-cited consensus.

On an annual basis, GDP growth in 2025 was unrevised at 1.4%, following revised growth of 1.0% in 2024.

The ONS said all three main sectors contributed to quarterly growth in the first quarter, with services output rising 0.8%, production output increasing 0.2% and construction output climbing 0.4%.

Monthly GDP rose 0.3% in March, slowing from growth of 0.4% in February but beating the FXStreet-consensus of a 0.3% drop.

Services output increased 0.3% month-on-month in March and was up 0.8% on a three-month-on-three-month basis.

Industrial production fell 0.2% in March from February and was flat on-year.

Real GDP per head rose 0.6% in the first quarter and was up 0.9% from the same quarter a year earlier.

The ONS noted that revisions to quarterly GDP growth between the first quarter of 2024 and fourth quarter of 2025 were limited to plus or minus 0.1 percentage point.

Trade data released alongside the GDP figures showed the UK total trade balance stood at a deficit of GBP9.66 billion in March, while the visible trade balance deficit widened to GBP27.22 billion. The non-EU trade deficit was GBP15.20 billion.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

SMC launches buyback programme as semiconductor demand boosts earnings

2026-05-14T06:17:18Z

SMC Corp on Thursday said it will buy back up to JPY50.00 billion in shares, around USD316.7 million, as it reported higher earnings for the 2026 financial year.

The Tokyo-based firm said attributable profit climbed 7.0% to JPY167.30 billion in the 12 months to the end of March from JPY156.34 billion a year prior.

Basic earnings per share rose 8.0% to JPY2,640.04 from JPY2,444.61.

Net sales were up 6.4% at JPY842.54 billion from JPY792.11 billion.

SMC produces pneumatic control devices used in actuators, valves, vacuum products and sensors. It has customers in the automobiles, machine tools, semiconductor, energy and agriculture sectors.

SMC said: "Looking at the overall demand environment for automatic control equipment, in the semiconductor and electrical machinery-related industries, demand centered on digital device-related industries such as home appliances and flat panel displays remained solid in Greater China, and demand for the semiconductor-related industry recovered in Japan, North America, and South Korea in the latter half of the fiscal year."

The firm said capital investments in electric vehicles continued to hold back in North America, Japan and Europe, though there was resilient demand in Greater China.

The company added: "Machine tool-related industry showed strength mainly in Greater China and Japan. Sales to medical equipment-related, food machinery-related, and other industries remained sluggish."

SMC said it will repurchase up to 800,000 shares, or 1.3% of outstanding shares, worth up to JPY50 billion, between next Wednesday and March 24, 2027.

The company declared an unchanged final dividend of JPY500.00 per share, to give an unchanged total payout of JPY1,000.00 for financial 2026. It expects to pay the same dividend next year.

Looking ahead, the company expects net sales to jump 19% to JPY1.000 trillion, with attributable profit up 1.6% to JPY170.00 billion in financial 2027. It forecasts basic EPS of JPY2,692.46.

SMC expects the outlook to remain uncertain due to the conflict in the Middle East, US policy developments and exchange rate fluctuations.

SMC added: "In terms of recent demand trends, demand for the semiconductor-related industry has recovered in each region, and we estimate hybrid vehicle-related demand will also increase in the automotive-related industry. We also estimate demands for the machine tool-related, food machinery-related, and medical equipment-related industries will increase, due to the increase in demand for automation and labour-saving."

Shares in SMC were down 3.9% at JPY81,000.00 on Thursday afternoon in Tokyo.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 seen up ahead of UK GDP

2026-05-14T05:58:48Z

Stocks in London are set to open higher on Thursday, as investors monitor the latest developments from the US-China summit and brace for a heavy slate of UK economic data.

IG says futures indicate the FTSE 100 to open up 32.0 points, 0.3%, at on 10,357.35 on Thursday. The index of London large-caps closed 0.6% higher at 10,325.35 on Wednesday.

US President Donald Trump told Chinese counterpart Xi Jinping that their countries would have a "fantastic future together" as the two leaders opened a high-stakes summit in Beijing focused on Iran, trade and Taiwan.

Praising Xi, Trump said it was "an honour to be your friend", while the Chinese leader struck a more measured tone, saying the US and China "should be partners and not rivals". Xi added that "a stable China-US relationship is a boon for the world" and warned that "cooperation benefits both sides, while confrontation harms both".

Chinese state media also reported Xi warned Trump that relations could deteriorate sharply if the issue of Taiwan was mishandled. "The Taiwan question is the most important issue in China-US relations," Xi said, according to state broadcaster CCTV. "If mishandled, the two nations could collide or even come into conflict."

Brent oil was trading at USD106.08 a barrel early Thursday, lower than USD107.33 late Wednesday.

Back in the UK, Labour Party turmoil continued as Health Secretary Wes Streeting reportedly considered launching a leadership challenge against Prime Minister Keir Starmer.

Streeting is believed to have told allies he is preparing to resign on Thursday and announce a bid for the premiership after divisions within Labour erupted into the open earlier this week.

Efforts to force Starmer from Downing Street appeared to lose momentum on Wednesday, with no fresh ministerial resignations or public calls from backbench MPs for him to step down as attention shifted to the King's Speech. However, Labour's trade union backers withdrew support for Starmer, while Streeting's team declined to deny reports he was preparing to quit.

Sterling was quoted at USD1.3519 early Thursday, marginally lower than USD1.3520 at the London equities close on Wednesday. Against the euro, sterling fell slightly to EUR1.1541 from EUR1.1542 a day prior.

The euro traded at USD1.1714 early Thursday, marginally lower than USD1.1715 late Wednesday. Against the yen, the dollar was quoted at JPY157.89 versus JPY157.81.

Attention in London will also turn to a heavy batch of UK economic data due at 0700 BST.

Consensus expects UK gross domestic product to decline 0.2% month-on-month in March after a 0.5% increase in February. First estimates for first-quarter GDP are expected to show annual growth slowing to 0.8% from 1.0% in the fourth quarter, while quarterly growth is forecast at 0.6%, up from 0.1% previously.

UK industrial output is also expected to fall 0.3% month-on-month in March after rising 0.5% in February.

In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.1%, the S&P 500 up 0.6% and the Nasdaq Composite up 1.2%.

In Asia on Thursday, the Nikkei 225 index in Tokyo was down 0.6%. In China, the Shanghai Composite was down 0.8%, while the Hang Seng index in Hong Kong rose 0.4%. The S&P/ASX 200 in Sydney was marginally lower.

Gold was quoted at USD4,699.76 an ounce early Thursday, higher than USD4,690.487 on Wednesday.

Back in the UK, survey data from the Royal Institution of Chartered Surveyors suggested house prices remained under pressure in April.

The net balance for house prices fell to minus 34% from a revised minus 25% in March, significantly weaker than the FXStreet-cited consensus forecast for a minus 25% reading. The agreed sales balance also weakened slightly to minus 36% from a revised minus 35%.

In Thursday's corporate calendar, Aviva reports first-quarter results, while Burberry, National Grid, United Utilities and Land Securities publish full-year figures. Future also releases half-year results.

In the economic calendar on Thursday, European Central Bank President Christine Lagarde is due to speak. Ireland publishes CPI data, while the UK releases GDP, industrial production and manufacturing output figures.

In the US, retail sales, export and import prices and initial jobless claims are due.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

US chip start-up Cerebras to raise USD5.5 billion in IPO

2026-05-14T05:49:32Z

Chip startup Cerebras Systems Inc announced that its listing on Wall Street will start Thursday at USD185 per share, raising about USD5.5 billion, the largest IPO so far this year in the US.

Taking into account all shares already outstanding, including stock options and other financial instruments, the Sunnyvale, California-based company is valued at over USD55 billion.

Cerebras has twice raised its target price for the listing on Nasdaq electronic exchange.

The company initially targeted a price range of USD115 to USD125 per share, before raising it to between USD150 and USD160, and finally settling at USD185.

It plans to issue 30 million shares, with an over-allotment option for an additional 4.5 million shares, according to a Cerebras statement released Wednesday evening.

Raising USD5.55 billion will place Cerebras among the 15 largest initial public offerings ever completed on Wall Street, and the largest since medical equipment group Medline in December.

Cerebras specializes in giant processors, also known as wafer-scale systems. They are viewed as suitable for the development and use of AI models.

After three years of sustained growth following the release of OpenAI's ChatGPT, the AI infrastructure market has exploded this year.

In January, OpenAI committed to acquiring a massive quantity of Cerebras processors, a contract valued at over USD10 billion.

As part of this agreement, Cerebras granted OpenAI warrants – derivative products that can be converted into shares under certain conditions. If all the conditions are met, OpenAI could control more than 10% of Cerebras's capital.

source: AFP

China "will open wider" doors to world - Xi to US business leaders

2026-05-14T05:42:22Z

Chinese President Xi Jinping told a delegation of US business executives that China would "open wider" to the world during US-China talks in Beijing on Thursday.

"China's doors to the outside world will open wider and wider... American companies will enjoy even brighter prospects in China," Xi said, Chinese state media reported.

Nvidia Corp Chief Executive Officer Jensen Huang and Tesla Inc CEO Elon Musk were among the business leaders who travelled to China with US President Donald Trump.

source: AFP

Honda Motor reports annual loss, expects return to profit next year

2026-05-14T05:39:09Z

Honda Motor Co Ltd on Thursday posted an annual lost amid rising costs and greater research and development spending in financial year 2026.

The Tokyo-based automotive company swung to a loss of JPY423.94 billion in the year ended March 31, approximately USD2.68 billion, from a profit attributable to owners of the parent of JPY835.84 billion a year earlier.

The company produced an attributable loss per share of JPY106.06 versus earnings per share of JPY178.93 in the previous year.

Honda's final dividend has been increased by 2.9% to JPY35.00 per share from JPY34.00 per share, lifting the total dividend for the year by the same percentage to JPY70.00 per share from JPY68.00.

Sales revenue edged up 0.5% to JPY21.797 trillion from JPY21.689 trillion, while the cost of sales increased by 6.9% to JPY18.193 trillion from JPY17.025 trillion.

Total operating costs were 8.5% higher at JPY22.211 trillion from JPY20.475 trillion.

The increase was in part driven by a surge in R&D spending which jumped 40% to JPY1.541 trillion from JPY1.099 trillion. Meanwhile, selling, general and administrative costs rose 5.4% to JPY2.477 trillion from JPY2.351 trillion.

Looking ahead, the company expects to return to profit in the 2027 financial year with an attributable profit of JPY260.00 billion. Revenue is forecast to grow by 6.2% to JPY23.150 trillion.

Also on Wednesday, Honda announced the establishment of a new subsidiary in India called Honda Digital Innovation India Pvt Ltd, which will focus on providing digital services "to expand customer touchpoints and create new mobility experiences for Honda customers in India".

The new subsidiary will build a digital platform, through which the company will make these solutions available.

"India, where further market growth is expected in the years ahead, is a strategically important market where Honda already has a long-standing foundation for its motorcycle and automobile business," Honda commented.

Honda Motor were up 4.8% at JPY1,332.00 each in Tokyo on Thursday afternoon.

By Elijah Dale, Alliance News senior reporter Asia-Pacific

Comments and questions to newsroom@alliancenews.com

UK Labour turmoil continues as Streeting mulls leadership challenge

2026-05-14T05:35:21Z

Keir Starmer faces another day of questions over his future as Wes Streeting mulls whether to mount a challenge for the UK premiership.

The Health secretary is believed to have told allies he is preparing to resign on Thursday and announce a bid for the top job after Labour descended into open division at the start of the week.

But the morning saw Labour's trade union backers pull their support for Starmer, while Streeting's team failed to deny claims he was poised to quit.

If he mounts a challenge, Streeting will need the support of 81 Labour MPs to begin a formal contest.

While some 87 MPs have so far publicly called for Starmer's resignation, they are not united behind a single candidate to replace him.

Other figures regarded as potential challengers include former deputy prime minister Angela Rayner, Energy Secretary and former party leader Ed Miliband and armed forces minister Al Carns.

In an article for The New Statesman published on Thursday, former Royal Marines officer Carns said: "We do not need more slogans, strategies, press releases or commissions. We need action."

Deputy Prime Minister David Lammy has questioned whether any of the prime minister's rivals can muster the necessary support to launch a contest.

Starmer himself is expected to fight any leadership challenge, and spent Wednesday afternoon meeting ministers and Labour MPs as he sought to avert a coup.

On Thursday, he will seek to wrest back control of the political agenda with the introduction of legislation overhauling social housing and the "right to buy".

Ahead of the introduction of the Social Housing Renewal Bill, intended to boost the supply of council homes, Starmer said his Government was "taking responsibility, rebuilding social housing, and delivering the change people voted for".

Manchester MPs Afzal Khan and Jeff Smith had been rumoured in Westminster to be willing to make way for Burnham.

But both men expressly denied to the Press Association that they were preparing to stand down.

By Christopher McKeon, Press Association Political Correspondent

Press Association: News

source: PA

Xi tells Trump mishandling Taiwan could push US, China into conflict

2026-05-14T04:19:43Z

Chinese leader Xi Jinping told US President Donald Trump on Thursday that their countries could come into conflict if the issue over self-ruled Taiwan claimed by Beijing is mishandled, Chinese state media said.

"The Taiwan question is the most important issue in China-US relations," Xi said, according to state broadcaster CCTV.

"If mishandled, the two nations could collide or even come into conflict, pushing the entire China-US relationship into a highly perilous situation".

source: AFP

UPDATE: Trump heralds "fantastic future" for US-China as talks begin

2026-05-14T03:39:23Z

US President Donald Trump on Thursday told China's Xi Jinping their countries would have "a fantastic future together", as they began a superpower summit in Beijing on thorny issues including Iran, trade and Taiwan.

Heaping praise on his host, Trump told Xi it was "an honour to be your friend", as the Chinese leader, in less effusive tones, said the two sides "should be partners and not rivals".

Xi had greeted Trump with a red carpet welcome at the opulent Great Hall of the People with military band fanfare, a gun salute and a host of schoolchildren jumping and chanting "welcome!".

The trip to Beijing is the first by a US president in nearly a decade, with the grand reception belying a host of unresolved trade and geopolitical tensions between the two countries.

Xi questioned if China and the US could build cooperation rather than head for confrontation, as he underlined that "a stable China-US relationship is a boon for the world.

"Cooperation benefits both sides, while confrontation harms both," Xi said.

There has been plenty of the latter since Trump's last visit in 2017, with the two countries having spent much of 2025 embroiled in a dizzying trade war and at odds on many major global issues.

A new addition to that list, the Iran war, threatens to weaken Trump's position in the talks, having already forced him to postpone his trip from March.

The US president said he expected a "long talk" with Xi about Iran, which sells most of its US-sanctioned oil to China, but insisted that "I don't think we need any help with Iran" from Beijing.

US Secretary of State Marco Rubio, known throughout his career as a fierce opponent of Beijing, struck a somewhat different tone.

"We hope to convince them to play a more active role in getting Iran to walk away from what they are doing now, and trying to do now in the Persian Gulf," Rubio told broadcaster Fox News in an interview aired Wednesday.

Top of Trump's wish list for the summit will be business deals on agriculture, aircraft and other topics.

Elite businessmen in the US leader's delegation, including Nvidia's Jensen Huang and Tesla's Elon Musk, were on the stairs of the Great Hall of the People on Thursday for the welcome ceremony.

Musk told reporters afterwards the meeting had been "wonderful", while Huang said the two presidents "were incredible".

Aboard Air Force One en route to Beijing, Trump vowed on social media to push Xi to "open up" China to US firms "so that these brilliant people can work their magic".

The long-simmering trade war between the two countries will also be top of the agenda, after Trump's sweeping tariffs last year triggered tit-for-tat levies that exceeded 100%.

Trump and Xi are set to discuss extending a one-year tariff truce, which the two leaders reached during their last meeting in South Korea in October, although a deal is far from certain.

On Taiwan, another issue that has bedevilled ties, Trump said Monday he would speak to Xi about US arms sales to the self-governing democracy claimed by China.

That would be a departure from historic US insistence that it will not consult Beijing on its support for the island, and one which will be closely watched by Taipei and US allies in the region.

China's controls on rare earth exports and AI rivalry are among other topics expected to be taken up by the two heads of state.

Trump will be treated to a state banquet in the evening with Xi, and will also visit the historic Temple of Heaven, a World Heritage site where China's emperors once prayed for good harvest.

Both sides will be looking to come out of the summit with whatever wins they can, while also stabilising an often tense bilateral relationship that has global implications.

Trump will also be hoping to leave with a firm date for a reciprocal visit by Xi to the US later in 2026, to prove his rapport with his Chinese counterpart.

By Danny Kemp

source: AFP

Trump and Xi meet for high-stakes talks in Beijing

2026-05-14T02:31:48Z

Chinese leader Xi Jinping welcomed US President Donald Trump with a handshake on Thursday in Beijing for a superpower summit on thorny issues including Iran, trade and Taiwan.

Xi greeted Trump at the opulent Great Hall of the People at just past 10:00 am, 0200 GMT, a grand reception that belies the deep tensions between the world's biggest economies.

Accompanied by Trump, Xi shook hands with several US officials, including Pentagon Peter Hegseth and Secretary of State Marco Rubio, who was known throughout his career as a fierce opponent of Beijing.

Trump and Xi stood in the centre as a Chinese military band played The Star-Spangled Banner and then the Chinese national anthem as cannons fired.

Jumping schoolchildren in brightly coloured outfits waving US and Chinese flags chanted "welcome, welcome" as Trump and Xi walked past them in the square.

The two leaders will also enjoy a state banquet at the hall in the evening, and Trump will visit the historic Temple of Heaven, a World Heritage site where China's emperors once prayed for good harvest.

The US president arrived for the two-day summit on Air Force One late Wednesday accompanied by top chief executive officers, including Nvidia Corp's Jensen Huang and Tesla Inc's Elon Musk – symbols of business deals Trump hopes to reach.

The trip to Beijing marks the first by a US president in nearly a decade, after Trump visited in 2017, accompanied – unlike this time – by his wife Melania.

Top of Trump's wish list will be business deals on agriculture, aircraft and other topics, with a host of top businessmen in the US leader's delegation.

Aboard Air Force One en route to Beijing, Trump vowed on social media to push Xi to "open up" China to US firms "so that these brilliant people can work their magic".

But Trump is dealing with a different and more emboldened China to the one he visited nine years ago, with a host of unresolved trade and geopolitical tensions between the two countries.

The Iran war in particular has threatened to weaken Trump's position in talks with Xi, having already forced him to postpone it from March.

The US president said he expected a "long talk" with Xi about Iran, which sells most of its US-sanctioned oil to China, but insisted that "I don't think we need any help with Iran" from Beijing.

US Secretary of State Marco Rubio struck a somewhat different tone.

"We hope to convince them to play a more active role in getting Iran to walk away from what they are doing now, and trying to do now in the Persian Gulf," US Secretary of State Marco Rubio told broadcaster Fox News in an interview aired Wednesday.

The long-simmering trade war between the two countries will also be top of the agenda, after Trump's sweeping tariffs last year triggered tit-for-tat levies that exceeded 100%.

Trump and Xi are set to discuss extending a one-year tariff truce, which the two leaders reached during their last meeting in South Korea in October, although a deal is far from certain.

On Taiwan, another issue that has bedevilled ties, Trump said Monday he would speak to Xi about US arms sales to the self-governing democracy claimed by China.

That would be a departure from historic US insistence that it will not consult Beijing on its support for the island, and one which will be closely watched by Taipei and US allies in the region.

China's controls on rare earth exports, AI rivalry and the countries' raucous trade relationship are also among the topics expected to be taken up by the two heads of state.

Both sides will be looking to come out of the summit with whatever wins they can, while also stabilising an often tense relationship between Beijing and Washington that has global implications.

Trump will also be hoping to leave with a firm date for a reciprocal visit by Xi to the US later in 2026, to prove his rapport with his Chinese counterpart.

By Danny Kemp

source: AFP

Iran hangs man on Israel spy charges, another over protests

2026-05-13T20:48:52Z

Iranian authorities on Wednesday hanged a man convicted of spying for Israel and another man in a case linked to January protests, the latest in a spate of executions against the backdrop of the US-Israeli war against the Islamic republic.

The Iranian judiciary's Mizan Online website described Ehsan Afreshteh, 32, as "a spy trained by Mossad in Nepal who sold sensitive information to Israel" and said he had been executed.

It later announced in a separate statement that Mohammad Abbasi, who had been sentenced to death over the killing of a police officer during the January protests, had also been hanged.

The Norway-based Hengaw and Iran Human Rights (IHR) NGOs said in separate statements that Afreshteh had denied he shared top secret documents with Israeli intelligence and said he had been subjected to televised "forced confessions" obtained through torture.

A specialist in cybersecurity, Afreshteh had insisted that all he had done was to "warn independent websites about cyberattacks", Hengaw said.

The rights groups said he had been living in Turkey but had received assurances from Iranian authorities that he could return home safely.

He was arrested on arrival, held in solitary confinement and in June 2025 sentenced to death by judge Abolqasem Salavati, who is notorious for handing out such verdicts.

His father, who had helped coordinate his return to Iran with the safety guarantees, suffered a fatal heart attack after hearing of the verdict, both IHR and Hengaw said.

Afreshteh is the sixth man to be hanged by Iran on charges of spying for Israel since the war began, according to IHR.

The US-based Human Rights Activists News Agency rights group, meanwhile, said that Abbasi had been executed Wednesday morning in Ghezel Hesar prison in Karaj outside Tehran after his death sentence was upheld by the Supreme Court.

It described Abbasi, 55, as a "protester" while Mizan said Abbasi was among a group of "rioters" who then pursued the police officer and killed him with a cold weapon.

Authorities have now since the the start of the war executed 26 men seen as "political prisoners" rights groups – 14 men charged over January protests, one more over 2022 demonstrations and 11 accused of links to banned opposition groups.

"These executions are intended to create fear among the Iranian people," said IHR director Mahmood Amiry Moghaddam, adding that Afreshteh had been sentenced to death "on false espionage charges, based on coerced confessions".

Authorities on Monday hanged Erfan Shakourzadeh, 29, a post-graduate student from an elite Tehran university, on charges of espionage for Israel and the US that he denied.

Iran is the world's most prolific executioner after China, according to rights groups.

Last year it hanged at least 1,639 people, according to figures from IHR, which has recorded at least 194 executions so far in 2026.

The January protests were met with a crackdown in which thousands were killed by security forces, according to activists.

By Stuart Williams

source: AFP

US renews offer of USD100 million to Cuba if it cooperates

2026-05-13T20:48:43Z

The US on Wednesday renewed an offer of USD100 million in aid for Cuba, pressuring its longtime nemesis to cooperate as it weathers an economic crisis and US sanctions.

Secretary of State Marco Rubio, speaking last week in Rome, said that Cuba had rejected an offer of USD100 million in assistance, an assertion denied by the communist government in Havana.

The State Department on Wednesday publicly renewed the proposal, which comes after the US piled new sanctions against key parts of Cuba's state-controlled economy.

"The regime refuses to allow the US to provide this assistance to the Cuban people, who are in desperate need of assistance due to the failures of Cuba's corrupt regime," the State Department said.

"The decision rests with the Cuban regime to accept our offer of assistance or deny critical (life)-saving aid and ultimately be accountable to the Cuban people for standing in the way of critical assistance," it said.

It said that the support would include direct humanitarian assistance from the US and funding for "fast and free" internet access – which presumably would benefit dissidents in the one-party state that restricts media.

The US, the statement said, was working to promote "meaningful reforms" in Cuba.

President Donald Trump's administration already provided USD6 million in humanitarian aid to Cuba but channeled it through the charity of the Catholic Church, which has long played a go-between role for the two countries.

After Rubio's initial comments, Foreign Minister Bruno Rodriguez said the offer was a "lie" that "no one here knows anything about."

"Will it be a donation, a deception or a dirty deal to curtail our independence? Wouldn't it be easier to lift the fuel blockade?" Rodriguez wrote on X.

Rubio, a Cuban-American who vociferously opposed the communist system founded by Fidel Castro, has been widely reported to be in contact with segments of the Cuban elite in hopes of stirring change.

Trump has publicly mused about taking over the island, which has been under a US embargo almost continuously since Castro's 1959 revolution.

Cuba's economic woes intensified in January after the US deposed Venezuela's leftist leader Nicolas Maduro, whose government had been providing around half of the island's fuel needs.

Last week the US imposed sanctions on a Cuban military conglomerate that controls nearly 40% of the economy, after Trump signed an order to punish any foreign banks that transact with US-blacklisted entities.

source: AFP

Israel ruling coalition proposes dissolving parliament for elections

2026-05-13T20:47:34Z

Israel's ruling coalition has submitted a proposal to dissolve the country's parliament, paving the way for early elections, the party of Prime Minister Benjamin Netanyahu said on Wednesday.

"The 25th Knesset shall be dissolved before the end of its term. Elections (to form the next parliament) will be held on a date determined by the Knesset Committee, which may not be set earlier than 90 days after the passage of this law," said the draft legislation released by Netanyahu's right-wing Likud party.

According to Israeli media reports, the dissolution bill could be put to a vote on May 20.

Parliamentary elections had originally been scheduled to take place by October 27.

The move to dissolve parliament, initiated by Netanyahu's own party, comes as the prime minister had appeared over the past 24 hours to face the possible collapse of his coalition amid mounting anger from ultra-Orthodox parties.

They accuse him of failing to deliver on his promise to pass a legislation that would permanently exempt young men from the ultra-Orthodox community studying in yeshivas, or religious seminaries, from compulsory military service.

Sensing an opportunity amid the turmoil, several opposition parties announced on Tuesday that they intended to introduce their own bill to dissolve the Knesset.

But Likud's announcement appears to have pre-empted the move, allowing Netanyahu to seize control of the electoral timetable.

Israel's main opposition leader Yair Lapid said Wednesday that he and his political allies are "ready".

"We are ready Together," Lapid wrote on X, referring to his new alliance, Beyahad (Together), formed with former premier Naftali Bennett.

source: AFP

US VP Vance acknowledges three-year-high inflation is 'not great'

2026-05-13T20:44:20Z

In a rare departure from the Trump administration's typically triumphant tone, US Vice President JD Vance on Wednesday acknowledged that consumer inflation was "not great" in April.

US year-on-year consumer inflation came in at 3.8% in April, a three-year high, fueled by energy price increases due to US President Donald Trump's war on Iran.

On Wednesday, the government reported wholesale price inflation of six percent year-on-year, its highest level since December 2022, with analysts warning high fuel prices were beginning to have knock-on effects on other products.

"Yes, the inflation number last month was not great," Vance told reporters at the White House.

"We know that we have a lot of work to do in order to deliver on the prosperity that the American people deserve."

Vance said Trump was "hyper aware" of the issue. A day earlier, Trump had insisted high inflation was only "short term."

Asked by a reporter if Americans' financial situation motivated him to make a peace deal with Iran, Trump offered a robust response on Tuesday.

"Not even a little bit. That only thing that matters when I'm talking about Iran: they can't have a nuclear weapon," he said.

"I don't think about Americans' financial situation, I don't think about anybody."

Asked about the president's statements, Vance denied the president said the words and insisted the question was a "misrepresentation" of Trump's quote.

With campaigning for November midterm elections in full swing, Democratic Party leaders seized on Trump's words to accuse the Republican of indifference to the soaring cost of living.

source: AFP

NEW YORK MARKET CLOSE: Tech continues ascent despite hot PPI, Iran war

2026-05-13T20:39:00Z

Technology shares advanced on Wall Street on Wednesday, shrugging off a sharp rise in producer prices, as US President Trump began his three-day trip to China.

The Dow Jones Industrial Average closed down 67.36 points, 0.1%, at 49,693.20. The S&P 500 rose 43.29 points, 0.6%, to 7,444.25. The Nasdaq Composite ended up 314.14 points, 1.2%, at 26,402.34.

"The relatively muted market reaction to elevated inflation data suggests that earnings optimism has emerged as the dominant catalyst," said Mark Hackett at Nationwide.

The Bureau of Labor Statistics on Wednesday said US producer price inflation accelerated to 6.0% in April, from 4.3% in March, the latter revised up from 4.0%. The latest reading, the hottest in over three years, topped the FXStreet cited consensus of 4.9%.

April's producer price inflation figure was the loftiest since December 2022's 6.4%.

On-month, prices rose 1.4% in April, beating the FXStreet cited expectation of a 0.5% rise, and heating up from a 0.7% climb in March from February.

"Prices for unprocessed goods for intermediate demand rose 4.1% in April, the sixth consecutive increase. More than 80% of the April advance can be traced to the index for unprocessed energy materials, which moved up 9.2%," the BLS said.

"Wednesday's PPI was strikingly elevated as producers are feeling the ripple effects of USD100 per barrel oil," commented Clark Bellin at Bellwether Wealth. "The Federal Reserve has an inflation problem on its hands," Bellin added.

The US Senate on Wednesday confirmed Kevin Warsh as Federal Reserve chair, replacing Jerome Powell, will remain on the Fed's board of governors.

"It is a very hard moment for someone to take over at the helm of the Fed," said Diane Swonk, chief economist at KPMG.

"There are no easy options: hold rates steady or cut and risk a more persistent, corrosive bout of inflation, or raise rates and add insult to injury to a labor market that looks better on paper than it feels to most workers."

US President Donald Trump landed in Beijing on Wednesday for a high-stakes summit with Chinese leader Xi Jinping aimed at easing tensions between the countries.

Trump, in his second visit as president, is focused on negotiating business deals rather than an end to the Iran war, though on Tuesday Trump said he expects a "long talk" with Xi on Iran.

The US delegation includes Nvidia Chief Executive Officer Jensen Huang, a last minute addition to the trip, and Tesla CEO Elon Musk.

Also attending are Boeing head Kelly Ortberg, Apple's Tim Cook, BlackRock's Larry Fink, Goldman Sachs' David Solomon, Blackstone's Stephen Schwarzman, Citigroup's Jane Fraser and Meta vice chair Dina Powell McCormick.

The Chinese foreign ministry said Wednesday it "welcomes" Trump's visit and that "China stands ready to work with the US... to expand cooperation and manage differences".

US crude oil stockpiles fell by 4.3 million barrels in the week ended May 8, the Energy Information Administration reported on Wednesday.

This decline was greater than the FXStreet-cited consensus of a 2.1 million decline. The prior week, stockpiles declines by 2.3 million barrels.

Meanwhile, the International Energy Agency said it now expects global crude demand to fall by an average of 420,000 barrels per day this year to around 104 million barrels per day. In its previous report, the Paris-based IEA had forecast a much smaller decline of 80,000 barrels per day.

The agency warned of demand destruction driven by a surge in oil prices since the start of the conflict.

A barrel of Brent was quoted at USD105.80 late Wednesday, down from USD107.74 on Tuesday. West Texas Intermediate fell to USD101.19 from USD102.35.

Despite geopolitical risk, private credit concerns and AI disruption, Morgan Stanley on Wednesday raised its year-end 2026 S&P 500 target to 8,000 from 7,800 previously, with a new 12-month forecast of 8,300, reflecting a strong earnings outlook.

Analysts led by Michael Wilson said the new mid-year 2027 outlook builds on three themes: running the economy/earnings cycle hot, public to private rebalancing, and a broadening of earnings and performance.

"Our view dating back to last spring has been that Liberation Day marked the trough of the rolling recession and the start of the rolling recovery. Over the next 12 months, we see the rolling recovery continuing to progress, driven by a strong earnings environment as positive operating leverage persists and is further enhanced by AI adoption," Morgan Stanley said.

In corporate news, French artificial intelligence startup Mistral AI is in discussions with European banks about deploying a competing model to Anthropic PBC's Mythos, Bloomberg reported on Wednesday.

Mythos has been given to a handful of firms including Apple, Microsoft and Nvidia in lieu of public release.

Late last month, the Wall Street Journal said the White House opposed the expansion of Mythos to 120 companies.

Bloomberg on Tuesday reported that Walmart plans to cut or relocate around 1,000 corporate jobs, in a move to consolidate its technology and artificial intelligence efforts.

The report quoted a memo from Global Chief Technology and Development Officer Suresh Kumar and executive vice president of AI Acceleration, Product and Design Daniel Danker.

"We've made changes to simplify how the work is organized, make ownership clearer and better align roles to the work and skills we need going forward," the memo said.

Walmart closed up 0.9%.

Against the dollar, the euro was at USD1.1710 late Wednesday, down from USD1.1741 on Tuesday. Sterling fell to USD1.3522 from USD1.3541. Against the yen, the dollar was at JPY157.89, up from JPY157.59.

The yield on the 10-year US Treasury was at 4.47% on Wednesday, up from 4.46% on Tuesday. The 30-year yield rose to 5.04% from 5.03%.

Gold fell to USD4,689.27 an ounce late Wednesday from USD4,717.62 on Tuesday.

In Europe, London's FTSE 100 closed up 0.6%. The DAX 40 in Frankfurt rose 0.8%. The CAC 40 in Paris gained 0.4%.

In China, the Shanghai Composite ended up 0.7%, while the Hang Seng Index in Hong Kong rose 0.2%. The Nikkei 225 in Tokyo rose 0.8%. The S&P/ASX 200 in Sydney closed down 0.5%

Thursday's corporate calendar has half-year results from Applied Materials.

The global economic diary includes US initial jobless claims, retails sales and export and import prices.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

US races to secure rare earths to rebuild depleted arsenal

2026-05-13T20:38:38Z

The US is working hard to create a supply chain for rare earths - metals needed to replenish its military arsenal amid the conflict in Iran – that does not depend on China, the sector's global leader.

Just a few grams of these materials are needed to make a television or laptop computer, but hundreds of grams are required for each Tomahawk or Patriot missile.

The Payne Institute for Public Policy at the Colorado School of Mines estimates US forces have fired thousands of missiles at Iranian targets since late February.

"The Middle East conflict is exposing in real time which minerals are truly mission-critical and exactly where supply chains could break under pressure," said Mahnaz Khan, a vice president of the Silverado Policy Accelerator think tank.

"This could add another layer of stress to the nation's ability to reconstitute the weapons," Khan said, noting that rare earths are used in "everything from drones and interceptors to F-35s and precision-guided missiles."

The Center for Strategic and International Studies, another think tank in Washington, said in late April that "restoring depleted stockpiles and then achieving the desired inventory levels will take many years."

The most-used rare earths are neodymium and praseodymium. Both are vital in the manufacture of so-called "permanent" magnets, which are 10 times stronger than traditional magnets and used in electric vehicles, wind turbines and smartphones.

Samarium, another of the 17 rare earths, is used in magnets needed in the defense industry.

During Donald Trump's first term as president, and then under his successor Joe Biden, the US boosted its share of global rare earth production from three to 13%, thanks to subsidies and tax incentives.

Until last year, there was only one major rare earths mine - at Mountain Pass in California, operated by MP Materials.

In July, Ramaco Resources opened the first new rare earths mine in more than 70 years – the Brook mine in Wyoming, but so far, nothing has been produced at the site.

Other mine projects are in development in Montana, Wyoming and Nebraska.

The US is also counting on recycling to help fuel its supply chains.

Trump's administration is looking abroad as well. It recently facilitated the acquisition of Brazilian producer Serra Verde by startup USA Rare Earth, in which the US government took a 10% stake in January.

But extraction is only the first phase of a process that also includes refining and separation (in order to isolate the various elements) before processing.

The separation stage is what has helped China dominate the sector. As of last year, it controlled 91% of global separation by volume, according to the International Energy Agency.

Authorities in China have used rare earths as a bargaining chip. Last year, Beijing restricted exports of certain rare earths before later lifting the measure.

India, Japan and France are also working hard to unlock China's stranglehold on the industry.

And the subject will be on the agenda for Trump's talks in Beijing with Chinese President Xi Jinping this week.

James Litinsky, the CEO of MP Materials – in which the government has a 15% stake, to launch separation operations – said separation activities will begin "imminently" at the Mountain Pass site.

In January, US firm Energy Fuels – which also produces uranium – took control of Australia's ASM and is planning to build a new site in the US, which will handle separation.

USA Rare Earth has invested in French rare earths specialist Carester, and they are together working on perfecting the separation process.

As for the end of the supply chain, startups Vulcan Elements and eVAC Magnetics started making permanent magnets last year. MP Materials should join that group shortly.

"We're not just selling magnets," Vulcan Elements CEO John Maslin told AFP.

"We're offering a secure, China-independent supply chain. Our priority is ensuring that the US and its allies can access the magnets they'll need for national security and economic resilience."

For Roderick Eggert, a professor at the Colorado School of Mines, it will take time for competitors to grow big enough to "significantly reduce the market shares of the Chinese producers."

To hedge its bets, the US has in recent months reached deals with producer nations including Australia, Democratic Republic of Congo, Rwanda and Thailand.

Maslin said the idea of the US being completely autonomous in terms of rare earths, from extraction to selling permanent magnets, is not far-fetched.

"The industry has to innovate and leapfrog, and not just copy and paste China," he said.

By Thomas Urbain

source: AFP

The veteran envoys leading Lebanon-Israel direct talks

2026-05-13T20:37:35Z

Lebanon's Simon Karam and Israel's Yechiel Leiter, both political veterans with entrenched views, will come face to face in Washington for talks Thursday after decades in a state of war.

Lebanon and Israel have no formal ties, but US President Donald Trump is hoping for a historic breakthrough even as Israeli forces remain deployed in south Lebanon to fight Iran-backed Hezbollah.

While Lebanon is seeking to consolidate a ceasefire in the latest war and to obtain the withdrawal of Israeli troops, Israel wants to ensure Hezbollah is disarmed.

Here are profiles of the envoys leading their countries' third round of negotiations:

Simon Karam, a lawyer known for his decades in politics and fierce defence of Lebanon's sovereignty, was appointed by President Joseph Aoun last month for the thorny task of helming the direct talks with Israel.

Beirut insists Israel must end its attacks before starting negotiations, while Hezbollah rejects outright any direct engagement between the two countries.

A former ambassador to Washington and independent politician, 76-year-old Karam is known for his defence of Lebanese unity in a country riven by sectarian divisions.

He is also known for his support for extending state sovereignty across all of Lebanon, where Hezbollah has long kept a huge arsenal and thrown the country into war after war.

Late last year, Karam was appointed as Lebanon's civilian representative to a committee comprising Lebanon, Israel, the US, France and UN peacekeepers that was tasked with monitoring a 2024 ceasefire.

Karam is known for his calm demeanour and makes few media appearances, but those who know him say he has remained uncompromising in his convictions on a sovereign, stable Lebanon.

During his participation in two previous ceasefire monitoring committee meetings, Karam "was a decisive and rational negotiator", a source familiar with the talks told AFP on condition of anonymity.

"He was particularly insistent on the demand that southern residents return to their towns, and spoke at length about the emotional ties linking villagers to their lands," the source added.

Political analyst Ali al-Amin, who has known Karam for decades, praised his upstanding character.

"He doesn't make deals under the table," Amin said, noting Karam had not sought high office despite his connections.

Karam entered public life in 1990, first being appointed governor of east Lebanon's Bekaa region and then Beirut.

He was named ambassador to Washington in 1992 but stepped down the following year, in a move observers said was linked to his diverging views from authorities who at the time were under the influence of Syria, whose occupation Karam opposed.

Karam, who is fluent in Arabic, French and English, hails from south Lebanon's Jezzine district and is married with three children.

Israel's ambassador to the US, Yechiel Leiter, is a longtime ally of Prime Minister Benjamin Netanyahu.

Well-versed in Israeli settler politics, conservative activism and hard-edged diplomacy, Leiter, 67, took up his post as Israel's top envoy to Washington in January 2025.

Born in the US, he emigrated to Israel at 18 and later served as a combat medic in the military in 1982, when Israel invaded Lebanon.

Leiter first gained prominence in the 1990s as a leading figure in the Yesha Council, the umbrella organisation representing Israeli settlers in the occupied West Bank.

During some of the most divisive years of the Israeli-Palestinian peace process, Leiter became a forceful advocate for the settlement movement and a prominent nationalist.

His influence later extended into government, holding several senior positions in the ministries of education, finance and transportation.

Leiter served as chief of staff to Netanyahu when the latter served as finance minister in the early 2000s, helping cement a longstanding political alliance.

A member of Netanyahu's Likud party, he also worked as a strategist and adviser to several right-wing Israeli think tanks.

The war in Gaza struck him personally.

In November 2023, his son, Moshe Leiter, was killed in combat in the Gaza Strip, a month after Hamas's October 7 attack on Israel.

Leiter was also an outspoken critic of President Joe Biden, before Trump returned to the White House.

In a 2024 interview with Israel's Channel Tov, he denounced what he described as "American pressure" on Israel under Biden during the war in Gaza.

After being appointed ambassador, Leiter renounced his US citizenship as Israelis with dual citizenship are not permitted to serve as diplomats in countries where they hold a citizen status.

In May 2025, he was summoned by the foreign ministry after accusing Netanyahu's opponents of spreading "blood libels" against the prime minister – breaching norms against Israeli diplomats making political statements, according to media reports.

Leiter has positioned himself as an advocate for a broader regional realignment, and following talks in Washington with his Lebanese counterpart in April, he praised what he called a "wonderful exchange".

His portfolio also includes normalisation talks with Syria, according to the Israeli embassy in Washington.

By Layal Abou Rahal and Gianluca Pacchiani

source: AFP

Kevin Warsh returns to Federal Reserve with 'regime change' agenda

2026-05-13T20:36:24Z

Kevin Warsh, the incoming chair of the US Federal Reserve, returns to the central bank with an ambitious reform agenda and the looming threat of intimidation by the man who nominated him: US President Donald Trump.

Warsh was confirmed to a 14-year term on the Fed's board by the Senate on Tuesday, with a separate vote installing him as the central bank's chief for a four-year term on Wednesday.

The 56-year-old native of upstate New York left his first term on the board prematurely in 2011, griping over policy differences.

Now, he returns to lead the Fed – tasked with, among other things, managing US inflation and ensuring maximum employment – with an agenda that includes changing how it makes decisions, communicates those moves and implements policy shifts.

He does so at a time of unprecedented political pressure on the Fed's independence, with Trump demanding lower interest rates to spur activity in the world's largest economy.

Trump frequently criticized and insulted Warsh's predecessor, Jerome Powell, over a lack of rate cuts. His administration targeted Powell in a criminal probe and is still attempting to remove another Fed governor, Lisa Cook.

At his confirmation hearing before the Senate banking committee, Warsh vowed to preserve the Fed's independence, saying he would "absolutely not" be the president's puppet.

"I am honored the president nominated me for the position and I'll be an independent actor if confirmed as chairman of the Federal Reserve," he said.

Born in New York's state capital Albany, Warsh graduated from high school in that area before obtaining degrees from Stanford University and Harvard Law School.

He is married to Jane Lauder, a granddaughter of cosmetics legend Estee Lauder. Her billionaire father Ronald Lauder is one of Trump's longtime associates.

Warsh started his career at investment giant Morgan Stanley, specializing in mergers and acquisitions.

He later joined then US president George W. Bush's administration, serving as a White House economic policy advisor from 2002 to 2006 before being nominated to the Fed's Board of Governors.

Warsh served on the board during the global financial crisis, and eventually left in 2011 over differences on how the central bank should tackle it. He has since worked on Wall Street and on the boards of various companies, including UPS.

"I saw the Fed and its people at their very best, but I also witnessed an institution that was tempted to play a larger role in the economy and society," Warsh said at his confirmation hearing.

That language echoes Trump, whose administration has called for the Federal Reserve to stay in its lane and has questioned its credibility.

In his first tenure at the Fed, Warsh was considered a "hawk" – a policymaker who favors addressing the inflation side of the mandate, usually by raising interest rates.

In recent years, he has changed his tune, aligning with Trump's demands for lower interest rates despite the US economy facing stubbornly high inflation since the Covid-19 pandemic.

Warsh blames high inflation on "policy errors" by the Fed in 2021 and 2022.

He has called for "regime change" in policymaking, including changing the data the Fed bases its decisions on, removing forward guidance from its communications and encouraging more of a "good family fight" at meetings.

He also wants to shrink the Fed's balance sheet, preferring to use interest rates as the central bank's primary tool on both sides of its mandate.

He has argued that the Fed has strayed into politics, again echoing a key Trump talking point.

David Wessel, senior fellow at the Brookings Institution, said Warsh has outlined a wide-ranging agenda, but one should "watch what he does, not what he has said."

He added that Warsh will not simply be able to impose his will on the central bank, and will have to work with his fellow policymakers.

"He is very smooth, and generally good with the people, and that will serve him well in this endeavor as long as he doesn't move too fast or too radically," Wessel told AFP.

Kathryn Judge, a law professor at Columbia University, said existing divisions at the Fed will pose a "significant challenge" to Warsh.

"I think we really just have to wait and see," Judge said.

"It's been a long time since we've had a chair coming in who is seeking to chart a new course, rather than to build on the success of his predecessors."

By Asad Hashim

source: AFP

Cisco shares surge as AI drives quarterly earnings and guidance beat

2026-05-13T20:35:15Z

Cisco Systems Inc on Wednesday raised expectations for AI orders and revenue as it delivered better-than-expected quarterly results and guidance.

The San Jose, California-based digital communications technology company now expects full-year AI orders of USD9 billion, raised from USD5 billion, and AI revenue of USD4 billion, lifted from USD3 billion, reflecting "significant momentum" for AI infrastructure from hyperscalers. It said USD5.3 billion of AI orders had been taken year to date.

Cisco said net income rose to USD3.37 billion in the three months to April 25, the third quarter of its financial year, from USD2.49 a year prior.

Diluted earnings per share were USD0.85 compared to USD0.62, while non-GAAP increased 10% year-on-year to USD1.06, ahead of Visible Alpha consensus of USD1.03.

Revenue increased 12% to a record USD15.84 billion from USD14.15 billion, ahead of VA consensus of USD15.55 billion.

In response, shares in Cisco shot up 12% to USD114.28 in after hours trading in New York on Wednesday after closing 2.6% to the good at USD101.87 earlier.

Cisco highlighted "broad-based, record high demand for Cisco technology", with total product orders up 35% year over year or 19% excluding hyperscalers.

Growth in networking product orders accelerated to more than 50% year over year.

Campus networking orders grew greater than 25% year over year and data centre switching orders grew greater than 40% year over year.

"Cisco delivered record quarterly revenue in Q3 and we saw very strong, broad-based demand for our products, demonstrating the relevance of our technology for connecting and securing AI," said Chuck Robbins, chair and chief executive.

Looking ahead, Cisco forecast fourth quarter revenue of USD16.7 billion to USD16.9 billion, comfortably ahead of USD15.80 billion consensus, and non-GAAP EPS of USD1.16 to USD1.18, outstripping USD1.08 consensus.

In addition, Cisco declared a quarterly dividend of USD0.42 per share.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: Gilts steady as PM clings on; miners aid FTSE 100

2026-05-13T16:02:06Z

The FTSE 100 rallied on Wednesday, led by mining stocks, while gilts steadied as UK Prime Minister Keir Starmer kept a precarious grip on power.

The FTSE 100 closed up 60.03 points, 0.6%, at 10,325.35. The FTSE 250 ended up 62.17 points, 0.3%, at 22,528.37, and the AIM All-Share rose 6.55 points, 0.8%, at 817.21.

The Cboe UK 100 ended up 0.4% at 1,023.56, the Cboe UK 250 was 0.2% higher at 19,425.04, and the Cboe Small Companies Index ended up 0.5% at 18,354.12.

In London, reports suggested Health Secretary Wes Streeting plans to step down and could mount a formal challenge to PM Starmer on Thursday.

Streeting confronted his boss over the crisis engulfing Labour as the pair met for crunch talks – which lasted less than 20 minutes – in Downing Street ahead of the King's Speech on Wednesday.

According to various reports, Streeting has told allies he is preparing to quit government on Thursday and run for the top job.

The pound nudged up to USD1.3520 on Wednesday afternoon from USD1.3505 on Tuesday. Against the euro, sterling was higher at EUR1.1542 from EUR1.1517 on Tuesday.

The yield on UK 10-year gilts traded at 5.07%, cooling from 5.10% the day before.

Kathleen Brooks research director at XTB said markets "remain sensitive to all news out of Westminster, and it is hard to see how the PM can stop another coup against him."

JPMorgan analyst Allan Monks said the political developments create significant uncertainty regarding the future leadership of the governing Labour party, and hence the future path of fiscal policy.

"While the odds of a leadership change this year have increased, the precise path and outcome remain hard to judge. One observation relevant for the gilt market is the sheer length of time it could take to gain clarity over the fiscal outlook," he added.

Monks estimates the costs of higher borrowing since March, when the Middle East crisis flared, to be around GBP11 billion, knocking down the government's fiscal headroom to GBP13 billion.

Elsewhere, the fragile ceasefire in the Middle East held as US President Donald Trump headed to Beijing for talks with his counterpart Xi Jinping.

The International Energy Agency warned that countries were tapping into oil inventories and strategic reserves at a "record pace", meaning further price volatility was likely.

Brent crude for July delivery was trading at USD107.33 a barrel on Wednesday, down compared to USD108.07 at the time of the equities close in London on Tuesday.

In Europe on Wednesday, the CAC 40 in Paris ended up 0.4%, and the DAX 40 in Frankfurt advanced 0.8%.

In New York, the Dow Jones Industrial Average was down 0.4%, the S&P 500 rose 0.2% while the Nasdaq Composite was 0.7% higher.

The yield on the US 10-year Treasury widened to 4.50% on Wednesday from 4.46% on Tuesday. The yield on the US 30-year Treasury stretched to 5.05% from 5.02%.

The euro traded lower against the greenback, at USD1.1715 on Wednesday from USD1.1729 on Tuesday. Against the yen, the dollar was trading at JPY157.81, higher than JPY157.73.

Following Tuesday's strong US consumer inflation figures, producer price data also surprised to the upside.

The Bureau of Labor Statistics said producer price inflation accelerated to 6.0% in April, from 4.3% in March, the latter revised up from 4.0%. The latest reading, the hottest in over three years, topped the FXStreet cited consensus of 4.9%.

Mining stocks propped up the blue-chip FTSE 100 with Antofagasta up 8.7%, Metlen Energy & Metals up 7.2%, Anglo American up 4.5% and Rio Tinto up 4.4% as metals price rose.

Fresnillo, up 4.0%, benefited from a strong gold price with the yellow metal trading at USD4,690.487 an ounce on Wednesday, up from USD4,663.87 on Tuesday.

Intertek gained 5.3% as it backed the latest takeover tilt from suitor EQT Fund Management Sarl, after rebuffing three prior proposals.

EQT's final proposal is worth GBP60 per share in cash, GBP61.077 including a final dividend. Together with the dividend, the tilt values Intertek at GBP9.40 billion.

Intertek said it "remains highly confident" in its standalone strategy and value creation plan. However, it said the EQT offer would "deliver value in cash to Intertek shareholders". As a result, it would be "minded to recommend" it, should a firm offer materialise.

Airtel Africa slumped 13% as Bharti Airtel confirmed it will raise its stake, but buy shares at a discount to the prior closing share price.

On Monday, shares had shot up 15% after Bharti Airtel - which has a 63% stake in the company - convened a meeting for Wednesday to consider a reorganisation of its subsidiaries' shareholding structure, including Airtel Africa.

On the FTSE 250, Vistry was in the doldrums, down 12%, as it warned first half profit will be "significantly lower than the prior year".

JPMorgan analyst Zaim Beekawa said it "is a pretty disappointing update given the magnitude of downgrades implied and, particularly, given street numbers have already come down meaningfully."

Elsewhere, recruiters PageGroup and Hays fell 5.6% and 7.4% respectively as Swiss peer Adecco plunged 17% after flagging weaker second quarter margins.

While shareholders in Cordel were smiling as its share price doubled after accepting a GBP29 million bid worth 12.4 pence per share from Vossloh.

The biggest risers on the FTSE 100 were Antofagasta, up 345.00p at 4,299.00p, Metlen Energy & Metals, up 2.70p at 40.18p, Intertek Group, up 280.00p at 5,580.00p, Anglo American, up 177.00p at 4,075.00p and Rio Tinto, up 352.00p at 8,272.00p.

The biggest fallers on the FTSE 100 were Airtel Africa, down 54.20p at 359.60p, Relx, down 122.00p at 2,333.00p, Experian, down 123.00p at 2,526.00p, Sage Group, down 31.20p at 847.60p and Imperial Brands, down 76.00p at 2,756.00p.

Thursday's global economic calendar has UK GDP data at 0700 BST followed by US retail sales figures and the weekly initial jobless claims report.

Thursday's local corporate calendar has first quarter results from insurer Aviva and full-year earnings from property investor Land Securities, luxury goods brand Burberry and electricity generator National Grid.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

US crude oil stockpiles fall by more than expected last week - EIA

2026-05-13T15:06:18Z

US crude oil stockpiles fell by 4.3 million barrels in the week ended May 8, the Energy Information Administration reported on Wednesday.

This decline was greater than the FXStreet-cited consensus of a 2.1 million decline. The prior week, stockpiles declines by 2.3 million barrels.

Crude oil refinery inputs averaged 16.4 million barrels per day during the week, said the EIA, 369,000 barrels per day more than the previous weeks' average. Gasoline production also increased last week, as it rose to 9.8 million barrels per day.

US crude oil imports averaged 5.8 million barrels per day last week, up by 424,000 from a week prior.

The EIA noted that crude oil imports averaged around 5.8 million barrels per day over the past four weeks, up 1.0% from the same four-week period last year.

By Christopher Ward, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Steps to fast-track EU rules into UK law included in King's Speech

2026-05-13T13:19:02Z

The UK government could fast-track EU rules into law without giving MPs a vote under legislation brought forward in the King's Speech.

Ministers have been attempting to forge closer ties with the continental trade bloc since coming to power in 2024, and have set the stage for a series of co-operation deals this summer.

Britain and Europe hope to agree a new alignment on food, on energy emissions, and on youth mobility when negotiators gather in Brussels for the second annual UK-EU summit.

The European Partnership Bill, set out in the King's Speech, will provide a "framework" which will allow these deals, and other future agreements with the EU, to be swiftly implemented, according to officials.

While the bill is set to give Parliament "a say" in the new agreements, critics have shared fears in several media reports that the powers laid out in the legislation will allow ministers to bypass a meaningful vote by MPs.

Negotiators in Brussels have acknowledged the legislation could prove controversial, especially among Brexit-backing politicians and media outlets.

The government is however keen to point to the benefits of allowing ministers to quickly adopt EU rules into UK law.

The new food and drink deal could provide a benefit of GBP5.1 billion to the UK economy, officials believe.

When combined with the emissions trading deal, the impact could be up to GBP9 billion.

The British Chambers of Commerce meanwhile said the deal will help to lower prices of household goods for shoppers.

William Bain, head of trade policy at the BCC, said: "A permanent deal with the EU can't come soon enough for UK firms.

"In the talks ahead, ministers must deliver a deal that truly unburdens business and cuts costs.

"Consumers will then reap the benefits in their shopping baskets. Making trade with the EU quicker, cheaper and simpler is crucial to boosting economic growth in the years ahead."

The prime minister's official spokesman insisted Parliament would have some kind of input into the Bill, after being asked whether it would give ministers sweeping powers to bypass MPs.

He said: "Firstly, we have always been clear that Parliament will have a say on this bill and it will progress through in the usual way; secondly, Parliament will have a say on the agreements this bill will be used on; and thirdly, Parliament will have a set of new EU laws applying in the UK.

"The prime minister has been very clear: closer alignment with the EU means greater security and stronger growth at home.

"The benefits are indisputable: Our food and drink deal will slash red tape and some routine checks and paperwork at the border, ending lengthy lorry queues, allowing UK businesses and farmers to sell certain products back into the EU."

The bill's passage is expected to follow after the UK-EU summit this summer.

On Monday, in a speech aimed at moving on from last week's devastating election results, Keir Starmer said his government would be defined by steps to place the UK back "at the heart" of Europe.

He talked up plans for the "ambitious" youth mobility scheme, which will allow young people from Britain to travel, work and live in Europe with ease, and vice versa.

The prime minister was also asked by reporters if he would rule out including membership of the single market or customs union in the next Labour manifesto, and appeared to leave the door open to both, which were key planks of Brexit.

The EU-UK summit will be a "big leap forward", he said, adding it "will then be a platform on which we can build as we go forward".

By David Lynch, Press Association Political Correspondent

Press Association: News

source: PA

UPDATE: PM has "full confidence" in Streeting despite leadership talk

2026-05-13T13:15:31Z

UK Prime Minister Keir Starmer retains "full confidence" in Wes Streeting as Health secretary, even as he looks set to resign in a bid to launch a leadership challenge.

Streeting confronted his boss over the crisis engulfing Labour as the pair met for crunch talks – which lasted less than 20 minutes – in Downing Street ahead of the King's Speech on Wednesday.

He is believed to have told allies he is preparing to quit government on Thursday.

Asked whether the prime minister still has confidence in the Health secretary, his spokesman told reporters: "Yes."

The official declined to "get into the content of internal meetings" when asked for details of what was said, adding: "But the prime minister has full confidence in the Health Secretary."

Pressed on whether Streeting would remain Health secretary for the rest of the week, the spokesman reiterated that Starmer had "full confidence" in him, while describing the prime minister's mood as determined to "deliver the change" people want.

Starmer managed to cling on to power and see off an immediate threat to his leadership in the last few days despite four ministers, some of whom are close to Streeting, resigning and at least 80 MPs demanding he stands down.

The Labour Party has descended into open division over his future, with more than 100 other MPs signing a statement backing Starmer and warning "this is no time for a leadership contest".

Following his meeting with the prime minister, Streeting ignored reporters shouting questions at him as he made his way out of No 10.

Streeting's team failed to deny claims he was poised to quit and the minister posted on X on Wednesday as if business were carrying on as usual, talking up the government's record on the NHS and saying nothing of the turmoil within the party.

By Press Association Political Staff

Press Association: News

source: PA

FOREX: Yen falls; sterling down on dollar amid UK political chaos

2026-05-13T13:06:43Z

The dollar was largely, the yen sunk close to intervention levels again and the pound continued to toil on Wednesday on UK political uncertainty.

The dollar index rose to 98.53 points on Thursday from 98.25 at the same time on Wednesday.

"The dollar, which is firmer against most G10 currencies, is hovering near JPY158, where the Bank of Japan is thought to have intervened a week ago," Bannockburn analyst Marc Chandler commented.

The dollar spiked to JPY157.82 on Wednesday from JPY157.55 at the same time on Tuesday.

Chandler added: "The yen lost a little more than 0.25% yesterday as the greenback reached JPY157.75, a four-day high. The gains have been extended to JPY157.90 today. The high from last Wednesday when the BOJ is believed to have intervened was JPY158."

SPI Asset Management analyst Stephen Innes said the threat of intervention could "temporarily slow momentum" against the yen.

"But unless Tokyo fundamentally shifts its macro policy, defending the currency becomes increasingly difficult over the long run. Foreign exchange intervention without policy adjustment is often like trying to hold a beach ball underwater. It works briefly until pressure overwhelms the grip," the analyst added.

The pound fell to USD1.3493 on Wednesday from USD1.3531 on Thursday. Against the euro, however, sterling edged up to EUR1.1523 from EUR1.1518. It had traded below the EUR1.15 mark on Tuesday as pressure on UK Prime Minister Keir Starmer intensifies.

Ebury analyst Matthew Ryan commented: "We expect investors to place an increasingly sizeable political risk premium onto UK assets should Starmer’s exit path become clear, fearful of both a change in the status quo and a surge in gilt issuance under a more left-leaning prime minister. Sterling has also come under renewed pressure in the past 24 hours or so, with further losses likely should the unfolding saga tip Britain into yet another prolonged bout of political instability."

A figure central to events in Westminster, Wes Streeting, met with Starmer for crunch talks that lasted less than 20 minutes this morning. UK Health Secretary Streeting looks set to resign in a bid to trigger a leadership contest, PA reported.

Streeting and Starmer met before the King's Speech on Wednesday, which set out some of the government's plans for the year ahead.

Starmer promised a package of measures to set a "new direction for Britain" as he battles to save his premiership.

Starmer said he would be "setting a new direction for Britain at the next EU summit" and "putting Britain at the heart of Europe".

The government could fast-track EU rules into law without giving MPs a vote under legislation brought forward in the King's Speech.

Versus the dollar, the euro fell to USD1.1704 on Wednesday from USD1.1747 on Tuesday.

US producer prices rose at a faster pace than expected in April, numbers on Wednesday showed.

April's producer price inflation figure was the loftiest since December 2022's 6.4%.

Versus the dollar, the Swiss franc fell to USD1.2774 on Wednesday, from USD1.2811 on Tuesday.

Against its Australian counterpart, it declined to AUD1.3798 from AUD1.3805. Versus the Canadian dollar, the buck faded to CAD1.3695 from CAD1.3707.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

US producer price inflation spikes to 6% in April on energy hike

2026-05-13T12:43:22Z

US producer prices rose at a faster pace than expected in April, numbers on Wednesday showed.

April's producer price inflation figure was the loftiest since December 2022's 6.4%.

On-month, prices rose 1.4% in April, beating the FXStreet cited expectation of a 0.5% rise, and heating up from a 0.7% climb in March from February.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UPDATE: Trump arrives in China for superpower summit with Xi

2026-05-13T12:35:16Z

US President Donald Trump landed in Beijing on Wednesday for a high-stakes summit with Chinese leader Xi Jinping aimed at easing deep tensions between the rival superpowers.

Beginning the first visit to China by a US president in nearly a decade, Trump touched down on Air Force One at Beijing Capital International Airport at 1950 BJT, 1150 GMT, after the long flight from Washington.

Ructions over Iran, trade and Taiwan loom over the highly anticipated meeting between the leaders of the world's largest economies, which Trump had already delayed from March because of the war in the Middle East.

But Trump appeared firmly focused on business deals, with Nvidia Corp Chief Executive Officer Jensen Huang boarding the plane at the last minute in Alaska and Tesla Inc's Elon Musk also travelling on the presidential jet.

As the global AI race hots up, China is currently banned from purchasing the cutting-edge chips that Huang's company produces under US export rules that Washington says are to protect national security.

Trump said in a social media post en route that he would be "be asking President Xi, a Leader of extraordinary distinction, to 'open up' China so that these brilliant people can work their magic".

Visiting China for the first time since 2017 during his first term, Trump is expected to receive a lavish welcome from Chinese authorities and will have a packed itinerary.

Trump and Xi will hold talks at 1000 BJT, 0200 GMT, on Thursday in Beijing's opulent Great Hall of the People, where they will also enjoy a state banquet in the evening.

On Friday, they are set to have tea and a working lunch before the US president heads home.

As he departed the White House, Trump said he expected a "long talk" with Xi about the joint US-Israeli war with Iran, which sells most of its US-sanctioned oil to China.

But he also downplayed disagreements, telling reporters that "I don't think we need any help with Iran" from China and that Xi had been "relatively good" on the topic.

The Chinese foreign ministry said Wednesday it "welcomes" Trump's visit and that "China stands ready to work with the US... to expand cooperation and manage differences".

Yet Beijing is growing impatient for peace, with Foreign Minister Wang Yi urging his Pakistani counterpart on Tuesday to step up mediation efforts between Iran and the US.

Trump said Monday he would speak to Xi about US arms sales to Taiwan, the self-governing democracy claimed by China – a departure from historic US insistence that it will not consult Beijing on its support to the island.

The long-simmering trade war between the two countries will also be top of the agenda, after Trump's sweeping tariffs last year triggered tit-for-tat levies that exceeded 100%.

Trump and Xi are set to discuss extending a one-year tariff truce, which the two leaders reached during their last meeting in South Korea in October, although a deal is far from certain.

China's controls on rare earth exports and agriculture exports are also expected to be on the menu.

The tense buildup to the summit was already visible on the streets of Beijing, with police monitoring major intersections and checking the ID cards of passengers on the metro, AFP journalists saw.

"It's definitely a big deal," said Wen Wen, a 24-year-old woman travelling from the eastern city of Nanjing, when asked by AFP about Trump's visit.

"Some progress will certainly be made," she said, noting that she hopes China and the US can ensure "lasting peace" despite "recent instability in the global situation".

Trump has repeatedly touted a strong personal relationship with Xi, which he insisted on Monday would prevent a Chinese invasion of Taiwan.

Trump's trip will be closely scrutinised by Taiwan and Asian allies for any sign of weakening US support.

By Danny Kemp and Peter Catterall

source: AFP

IEA sees major drop in oil demand as Iran war hits supply

2026-05-13T12:23:00Z

The International Energy Agency expects a sharper decline in global oil demand and a rapid drawdown of stockpiles due to the impact of the Iran war, according to its monthly report published on Wednesday.

With supply tightening, global crude demand is projected to fall by an average of 420,000 barrels per day this year to around 104 million barrels per day. In its previous report, the Paris-based IEA had forecast a much smaller decline of 80,000 barrels per day.

The agency warned of demand destruction driven by a surge in oil prices since the start of the conflict. Benchmark Brent crude briefly rose above USD120 per barrel in March, up from around USD70 before the war, and is now trading around USD106.

The conflict has effectively shut down the Strait of Hormuz, a key global trade route, largely disrupting flows of crude oil, natural gas and refined fuels from the Gulf and fuelling concerns about global economic growth while keeping prices elevated.

Amid local supply shortages, governments and companies are working to curb oil consumption through measures such as conservation, price controls and rationing, the report said.

Global crude inventories are also falling at a record pace and are expected to continue declining for months. Despite the release of emergency reserves by major economies including the US, Japan and Germany, global stockpiles fell by around 4 million barrels per day in March and April.

The oil market is expected to remain significantly undersupplied through October, the IEA said, even if the conflict were to end as early as next month.

source: dpa

COMMODITIES: Oil prices edge higher before US-China talks; gold weaker

2026-05-13T11:32:03Z

Oil prices held on to gains on Wednesday as markets awaited clarity on US-Iran deadlock and braced for the Trump-Xi summit.

Spot Brent crude was trading at USD107.79 a barrel around midday on Wednesday, slightly up from USD107.33 on Tuesday. Spot West Texas Intermediate inched up to USD101.93 a barrel from USD101.14.

The Strait of Hormuz remains heavily restricted, keeping a major artery for crude, gas and fuel flows under pressure, while efforts to end the US-Iran conflict have yet to gain real traction, Hargreaves Lansdown analyst Matt Britzman said.

US President Donald Trump on Monday rejected Iran's latest counteroffer to end the war, putting a ceasefire between the two countries at risk.

"The upward factors for oil prices remain in place amid the absence of any sign of an imminent diplomatic settlement to the Middle East war, keeping the door open to escalation risks that could deepen the damage to the region's oil production and export infrastructure," XS.com analyst Samer Hasn said.

But the oil market may face downward pressure, helping to balance prices or slow their rise, reflecting a partial adaptation of energy supply chains in the Middle East to the closure of the Strait of Hormuz, alongside escalating economic risks amid pessimism about the possibility of lowering interest rates, Hasn said.

The benchmark TTF gas futures contract for delivery in one month softened to EUR46.71 per megawatt hour on Wednesday from EUR46.81 on Tuesday.

Spot gold was quoted at USD4,697.99 an ounce on Wednesday, down from USD4,700.33 at the same time on Tuesday. But silver rose to USD86.92 an ounce from USD83.62.

The yellow metal could continue to react to firm US Treasury bond yields and inflation fears in the world's largest economy, Exness analyst Eric Chia said.

Yields remain elevated and could put some pressure on gold, Chia said, warning that stronger-than-expected US consumer price inflation data reinforced the cautious outlook for interest rates and could support yields and weigh on gold.

Annual US consumer price index rose 3.8% in April from 3.3% in March, data published by the US Bureau of Labor Statistics showed Tuesday.

This has strengthened expectations that the US Federal Reserve could maintain monetary policy unchanged for an extended period and that other major central banks could move to tighten their monetary policies, painting downside risks for the precious metal, the Exness analyst said.

Investors are now turning their attention to upcoming US producer inflation data and the meeting between US President Donald Trump and Chinese President Xi Jinping.

Trump's visit in China is from Wednesday to Friday.

Elsewhere, platinum was priced at USD2,141.70 an ounce on Wednesday, up from USD2,085.70 on Tuesday. Palladium climbed to USD1,491.33 an ounce from USD1,482.03.

In base metals, the copper price advanced to USD14,080.00 per tonne from USD13,920.50, but aluminium slid to USD3,574.50 from USD3,581.50.

Copper's surge to fresh all-time highs is a timely reminder that the AI story is not just about chips and software, Hargreaves Lansdown's Britzman said.

"Futures climbed this morning, helped by stronger Chinese demand and mounting supply concerns, with resilient industrial activity, power grid investment, renewables and data centre growth all pulling in the same direction," Britzman added.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

PRESS: Streeting preparing to resign Thursday after talks with UK PM

2026-05-13T11:21:26Z

Wes Streeting met Keir Starmer for crunch talks that lasted less than 20 minutes this morning amid claims the UK Health secretary is poised to resign and trigger a leadership contest.

The Cabinet minister, who confronted the UK prime minister in Downing Street over the crisis engulfing Labour before the King's Speech on Wednesday, has told allies he is preparing to quit government, The Times reported.

Starmer managed to cling on to power and see off an immediate threat to his leadership on Tuesday despite four ministers, some of whom are close to Streeting, resigning and at least 80 MPs demanding he stand down.

The Labour Party has descended into open division over his future, with more than 100 other MPs signing a statement backing him and warning "this is no time for a leadership contest".

Following his meeting with the prime minister this morning, the Health Secretary ignored reporters shouting questions at him as he made his way out of Number 10.

Streeting's team has not responded to the report and the minister posted on X on Wednesday as if business were carrying on as usual, talking up government's record on the NHS and saying nothing of the turmoil within the party.

Unlike other senior ministers, he did not take to social media to reiterate his support for the prime minister on Tuesday, nor did he stop to voice his backing for Starmer as he left the weekly Cabinet meeting that morning.

During the meeting in Downing Street, the prime minister dug in and told Cabinet there was a process for challenging a leader which had not been triggered.

Deputy Prime Minister David Lammy also questioned whether rivals had secured the backing of the 81 MPs needed to launch a contest.

But on Wednesday morning, unions pulled their support, saying it is clear that Starmer will not lead Labour into the next election.

Cabinet Office minister Nick Thomas-Symonds told broadcasters the week so far had been "turbulent" for the prime minister but insisted "we are moving on".

He insisted Starmer and Streeting were "having a coffee" and dismissed that it was a showdown over Starmer's leadership.

"Anyone would think we were talking about the final scene at a Casino Royale or something, looking at some of the coverage that we've had," he told BBC Radio 4's Today programme.

He earlier told BBC Breakfast: "There is no contest for the leadership of the Labour Party. There's a very clear way to do that under our rules of 81 people nominating an alternative candidate. That hasn't happened.

"The contest hasn't been triggered. We are moving on. I'm not saying yesterday wasn't turbulent. It evidently was, but we are moving, getting on with delivery."

The government is seeking to carry on as usual by setting out its legislative agenda for the coming parliamentary session in the King's Speech on Wednesday.

The SNP has said it will seek to force a vote on Starmer's future in an amendment to the King's Speech.

New SNP Westminster leader Dave Doogan said: "If the Labour Cabinet ministers don't have the decency to do the right thing – then Parliament must.

"Unless they put an end to this chaos now, the SNP will table a motion of no confidence in Keir Starmer to draw things to a close."

Meanwhile, UK long-term borrowing costs eased back after reaching a 28-year high on Tuesday as Starmer continues to defy calls to stand down.

However, Labour's affiliated unions have called for a plan to be put in place for the election of a new leader of the Labour Party.

A statement from the Tulo group, which represents 11 unions, said Labour "cannot continue on its current path".

The unions, including Unite, Unison and the GMB, said: "It's clear that the prime minister will not lead Labour into the next election, and at some stage a plan will have to be put in place for the election of a new leader."

Streeting is among several Labour figures said to have ambitions to succeed Starmer, but has reportedly backed down from launching an immediate leadership bid.

Greater Manchester Mayor Andy Burnham, a leading figure from the soft left of the party widely seen as a contender, would first need an MP willing to stand aside so he could fight a by-election and chart a path back to Parliament.

Sources close to Energy Secretary Ed Miliband have denied reports that he is preparing to run if Streeting triggers a contest.

The prime minister, meanwhile, has sought to push on, already having replaced four ministers – including prominent MP Jess Phillips and health minister Zubir Ahmed, an ally of Streeting – who quit the government and called for Starmer to stand down.

Glasgow South West MP Ahmed said the situation was "unsustainable" and said it was "telling" that the whole Cabinet had not articulated support for the prime minister in the "full-throated way" they had previously.

"I think people who are articulating their dissatisfaction with the prime minister in private, they do have a responsibility to say that in public and directly to him, because this situation is unsustainable. It is now unstable and I think, therefore, we do need an expedient and orderly transition," he told BBC Radio 4's Today programme.

By Press Association Political Staff

Press Association: News

source: PA

LONDON MARKET MIDDAY: FTSE pares gains amid UK PM Keir Starmer turmoil

2026-05-13T11:18:13Z

Stock prices in London were little changed by midday Wednesday, having pared earlier gains as political drama in Westminster unsettled sentiment.

The FTSE 100 index was up 8.83 points, 0.1%, at 10,273.93. The FTSE 250 was down 5.64 points, marginally lower, at 22,459.79, and the AIM all-share was up 4.97 points, 0.6%, at 815.63.

The Cboe UK 100 was up 0.2% at 1,020.88, the Cboe UK 250 was down 0.1% at 19,380.41, and the Cboe small companies was up 0.2% at 18,297.19.

Front and centre in London was the latest twist in the crisis surrounding Prime Minister Keir Starmer.

Reports from The Times suggested Health Secretary Wes Streeting is "preparing to resign" after a meeting with the prime minister that lasted less than 20 minutes.

Streeting is said to be ready to trigger a leadership contest, with allies claiming he has made clear he is "going to go for it". They indicated he could resign on Thursday and formally mount a challenge for the Labour leadership.

The confrontation took place ahead of the State Opening of Parliament, where King Charles III was addressing parliament to outline the government's legislative agenda as Starmer fights to save his premiership.

The King's Speech included more than 35 bills and draft bills, covering areas such as immigration, the NHS and police reform, alongside a potential route to nationalising British Steel.

The prospect of a formal leadership challenge has injected fresh uncertainty into markets already rattled by rising bond yields earlier in the week.

The UK 10-year gilt was quoted at 5.094% at midday on Wednesday, down slightly from 5.103% at Tuesday's close. Despite an intraday low of 5.054%, it has traded as high as 5.115%

Sterling recovered slightly after losing ground on Tuesday. The pound was quoted at USD1.3518 midday Wednesday, compared to USD1.3505 on Tuesday. Against the euro, sterling rose to EUR1.1542 from EUR1.1517 a day prior.

The euro stood at USD1.1712, down from USD1.1729, while the dollar traded at JPY157.81 versus JPY157.73.

In European equities on Wednesday, the CAC 40 in Paris was down 0.4%, while the DAX 40 in Frankfurt was up 0.6%.

Data showed that eurozone economic growth slowed as expected in the first quarter of 2026.

According to Eurostat, gross domestic product in the single currency area rose 0.1% on-quarter, in line with the preliminary estimate and down from 0.2% growth in the fourth quarter.

On an annual basis, the eurozone economy expanded 0.8% in the first quarter, slowing from 1.3% growth in the final quarter of 2025. Employment growth also moderated, with the number of employed persons rising 0.1% on-quarter, compared with 0.2% growth previously.

Back in London, Intertek topped the FTSE 100, up 6.7%, after backing the approach from private equity firm EQT following what it described as "significant" shareholder engagement. Miners also helped lift the blue-chip index, supported by firmer metal prices.

On the FTSE 250, Vistry Group plunged 12% after warning of weaker half-year profit and pausing its share buyback programme. Avon Technologies followed lower, down 7.2%, amid weakness in its order book.

Among smaller caps, Mercantile Ports & Logistics soared, more than doubling from 0.43 pence to 1.24 pence, after appointing former CIA official Marty Martin to its board and signalling plans to explore opportunities outside India. The port operator said Martin previously served as CIA chief of station for the Near East Division.

Stocks in New York were called mixed. The Dow Jones Industrial Average was called down 0.3%, the S&P 500 up 0.2% and the Nasdaq Composite up 0.8%.

In Asia, geopolitical tensions also remained in focus. US President Donald Trump sparked concern in Taipei and among regional allies by saying he would discuss American arms sales to Taiwan with Chinese President Xi Jinping when the two leaders meet in Beijing this week.

Ahead of departing Washington on his first visit to China since 2017, Trump said he intended to raise the issue with Xi, breaking with long-standing precedent of not consulting Beijing on US arms exports to Taiwan.

Meanwhile, the Middle East conflict continued to cast a long shadow over markets. On day 74 of the conflict, Trump said he did not think about Americans' financial situation as he pushes for a deal with Iran.

After describing the ceasefire as on "massive life support" earlier in the week, aides suggested Trump is now more seriously considering resuming combat operations in Iran. The US president is heading to China, where he said he will have a "long talk" with Xi about Iran, although he downplayed the need for Beijing's help.

Earlier, the US Energy Department raised its forecast for gasoline prices, with retail prices now expected to average USD3.88 per gallon this year, up from last month's forecast of USD3.70.

The yield on the US 10-year Treasury was quoted at 4.46%, unchanged from Tuesday, while the yield on the US 30-year Treasury rose to 5.03% from 5.02%.

Brent oil was quoted at USD107.98 a barrel at midday in London on Wednesday, compared with USD108.07 late Tuesday.

Gold was quoted at USD4,695.54 an ounce, up from USD4,663.87 on Tuesday.

Still to come on Wednesday's economic calendar are US producer price inflation, EIA crude oil stocks and the IEA oil market report.

US PPI for April is due at 1330 BST, with consensus expecting a 4.9% year-on-year increase, up from 4.0% in March.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

PM Starmer sets out aim for "stronger, fairer" UK as looks to save job

2026-05-13T10:57:59Z

UK Prime Minister Keir Starmer promised a package of measures to set a "new direction for Britain" as he battled to save his premiership.

The prime minister said the legislation in the King's Speech would make the country "stronger and fairer" and help deliver the "change we promised" in Labour's 2024 general election landslide.

In his speech in the House of Lords, the King said the government would "defend the British values of decency, tolerance and respect for difference under our common flag".

Charles said the government would "harness the potential of the pride felt across the country for its communities" and "take urgent action to tackle antisemitism".

In his introduction to the package of legislation set out by the King in the traditional state opening of Parliament ceremony, Starmer said the country was "at a pivotal moment" as it dealt with the fallout from wars in Iran and Ukraine.

But he said: "The fundamentals of our economy remain sound and this will help us emerge from the Iran conflict stronger and fairer."

The war in the Middle East required "greater urgency" in the reforms the government has promised, Sir Keir said.

"We will strengthen our economic security, energy security, our defence and national security," the prime minister said.

"We will unblock the barriers to growth and prepare our country for a world where external shocks like this are ever more frequent.

"And we will fight for every child to have the chance to go as far as their talent and effort will take them."

The prime minister wants to forge closer ties with the EU, with a major summit planned this summer and progress expected on a youth experience scheme for under-30s.

Starmer said he would be "setting a new direction for Britain at the next EU summit" and "putting Britain at the heart of Europe".

The government could fast-track EU rules into law without giving MPs a vote under legislation brought forward in the King's Speech.

Ministers have been attempting to forge closer ties with the continental trade bloc since coming to power in 2024, and have set the stage for a series of co-operation deals this summer.

Britain and Europe hope to agree a new alignment on food, on energy emissions, and on youth mobility when negotiators gather in Brussels for the second annual UK-EU summit.

Measures in the King's Speech include a new law to strip disgraced peers like Peter Mandelson of their titles.

Measures outlined could lead to the banning of state-linked groups like Iran's Islamic Revolutionary Guard Corps.

The speech confirmed Labour plans to lower the voting age to 16 and the legislation for the new digital ID scheme.

There was also a package of laws to ease the burden of regulation and make it faster to build new energy infrastructure.

The government has been under pressure to ban the IRGC but has claimed existing legislation does not allow this.

The new tackling state threats bill is intended to close this loophole, giving powers similar to those used to proscribe terrorist organisations.

Starmer said: "We will take on extremism where it appears, including where it is sponsored by foreign powers that are hostile to the UK, such as Iran."

The King's Speech comes with Starmer's position in peril following a wave of backbench MPs calling for him to go and a handful of ministerial resignations in the wake of a devastating set of election results for Labour in English councils, Wales and Scotland.

The prime minister has insisted he will not leave office and has effectively called on potential rivals to challenge him under the party's rules, which require a contender to have the backing of 81 MPs.

Ahead of the King's Speech, Starmer had a brief meeting with one of his potential challengers, Health Secretary Wes Streeting, in Downing Street.

By David Hughes, Press Association Political Editor

source: PA

China, US discuss fix to trade feud ahead of Trump-Xi summit

2026-05-13T09:33:14Z

Top Chinese and US negotiators discussed "resolving" trade friction between their economies as they met for talks on Wednesday, setting up a highly anticipated summit between Donald Trump and Xi Jinping.

US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in South Korea for "economic and trade consultations", Chinese state media reported.

The two sides held "a candid, in-depth and constructive exchange on resolving economic and trade issues of mutual concern and further expanding practical cooperation", Xinhua news agency said.

China's commerce ministry shared the Xinhua report on its official website without elaborating on the issues discussed.

Trade is just one of the thorny issues Trump and Xi are expected to cover when they meet in China on Thursday and Friday.

Washington and Beijing last year slapped tit-for-tat tariffs on each other's exports, with levies exceeding 100%.

Trump and Xi agreed on a year-long truce at a meeting last October in South Korea, and expanding upon that deal is one potential item on their agenda this week.

"Economic security is national security," Bessent said as he announced his South Korea trip on social media.

He and Bessent's talks took place at Incheon International Airport, near Seoul, Xinhua reported earlier.

Afterwards, Bessent was due to travel to Beijing ahead of the Trump-Xi summit.

More than a dozen business executives including Nvidia Corp Chief Executive Officer Jensen Huang and Tesla Inc CEO Elon Musk are also travelling to China with Trump.

Other topics the US president is expected to discuss with Xi include the Iran war, Taiwan and artificial intelligence.

source: AFP

Streeting leaves No 10 after brief talks with Starmer as PM fights on

2026-05-13T09:29:05Z

Wes Streeting has been to Downing Street for crunch talks that lasted less than 20 minutes this morning as the UK prime minister continues to fend off calls to resign.

The UK Health secretary did not speak to reporters on his way in or out of Number 10.

The talks with Streeting, seen as one of the key rivals for the Labour leadership, come after Keir Starmer has so far managed to see off an immediate threat this week despite ministerial resignations and at least 80 MPs calling for him to quit.

But on Wednesday morning, unions pulled their support, saying it is clear that Starmer will not lead Labour into the next election.

Starmer's camp has suggested there is no consensus in Labour about having a leadership contest.

Cabinet office minister Nick Thomas-Symonds told broadcasters the week so far had been "turbulent" for the prime minister, but that MPs had not united behind a candidate to trigger a contest, adding "we are moving on".

He insisted the two were "having a coffee" and dismissed that it was a showdown over Starmer's leadership.

"Anyone would think we were talking about the final scene at a Casino Royale or something, looking at some of the coverage that we've had," he told BBC Radio 4's Today programme.

He earlier told BBC Breakfast: "There is no contest for the leadership of the Labour Party.

"There's a very clear way to do that under our rules of 81 people nominating an alternative candidate. That hasn't happened.

"The contest hasn't been triggered. We are moving on. I'm not saying yesterday wasn't turbulent. It evidently was, but we are moving, getting on with delivery."

The government is seeking to carry on as usual by setting out its legislative agenda for the coming parliamentary session in the King's Speech on Wednesday.

The SNP has said it will seek to force a vote on Starmer's future in an amendment to the King's Speech.

New SNP Westminster leader Dave Doogan said: "If the Labour Cabinet ministers don't have the decency to do the right thing – then Parliament must.

"Unless they put an end to this chaos now, the SNP will table a motion of no confidence in Keir Starmer to draw things to a close."

Meanwhile, UK long-term borrowing costs eased back after reaching a 28-year high on Tuesday as Starmer continues to defy calls to stand down.

However, Labour's affiliated unions have called for a plan to be put in place for the election of a new leader of the Labour Party.

A statement from the TULO group, which represents 11 unions, said Labour "cannot continue on its current path".

Streeting is among several Labour figures said to have ambitions to succeed Starmer, but has reportedly backed down from launching an immediate leadership bid.

Greater Manchester mayor Andy Burnham, a leading figure from the soft-left of the party widely seen as a contender, would first need an MP willing to stand aside so he could fight a by-election and chart a path back to Parliament.

Sources close to Energy Secretary Ed Miliband have denied reports that he is preparing to run if Streeting triggers a contest.

The prime minister meanwhile has sought to push on, already having replaced four ministers – including prominent MP Jess Phillips and health minister Zubir Ahmed, an ally of Streeting – who quit the government and called for Starmer to stand down.

Glasgow South West MP Ahmed, who is an ally of the Health Secretary, said the situation was "unsustainable" and said it was "telling" that the whole Cabinet had not articulated support for the prime minister in the "full-throated way" they had previously.

By Helen Corbett, Jordan Reynolds, and George Thompson, Press Association

Press Association: News

source: PA

SNP seeks to force vote on UK PM Keir Starmer's future

2026-05-13T09:26:39Z

The Scottish National Party will attempt to force a vote on UK Prime Minister Keir Starmer's future with an amendment to the King's Speech, the party has announced.

New SNP Westminster leader Dave Doogan said the "leadership circus can't go on any longer" as he seeks to force Labour MPs to stake a position on the prime minister's job if he does not resign himself.

"This farce has to end now so Parliament can focus on the issues that really matter," Doogan said.

"It's clear the only way that can happen is for Keir Starmer to go. He has lost the confidence of voters and his own MPs, and there's no coming back from that.

"The Labour Party must stop dragging this crisis out and put an end to it now. If the Labour Cabinet ministers don't have the decency to do the right thing – then Parliament must.

"Unless they put an end to this chaos now, the SNP will table a motion of no confidence in Keir Starmer to draw things to a close."

By Craig Paton, Press Association Scotland Deputy Political Editor

Press Association: News

source: PA

Eurozone economic growth slows as expected in first quarter

2026-05-13T09:15:10Z

The eurozone's gross domestic product expanded as anticipated in the first quarter of 2026, data published by Eurostat showed Wednesday.

The eurozone's economy grew by 0.1% on-quarter in the first quarter, in line with the preliminary flash estimate published in late April, and down from 0.2% in the fourth quarter.

On-year, the eurozone's economy was up 0.8% in the first quarter, slower than growth of 1.3% in the fourth quarter.

Meanwhile, the number of employed persons in the eurozone rose by 0.1% on-quarter in the first quarter, compared to 0.2% growth in the fourth quarter.

Separately, Eurostat reported that industrial production climbed by 0.2% on-month in the eurozone in March, the same pace as in February but worse than the FXStreet-cited consensus of a 0.3% uptick.

On-year, industrial production fell by 2.1% in March, underperforming against an expected 1.7% fall and a sharp deterioration from February's 0.8% contraction.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Bundesbank chief hints at ECB interest rate hike, citing inflation

2026-05-13T08:41:28Z

The head of Germany's Bundesbank has hinted that the European Central Bank could raise interest rates at its next meeting in June, warning of rising inflation linked to the war in Iran.

Joachim Nagel, the president of the German central bank, told the Handelsblatt financial newspaper on Wednesday that officials "cannot ignore the high energy prices."

"Interest rate rises are becoming increasingly likely unless the inflation picture changes fundamentally," he added.

"We may still have a lot to contend with when it comes to inflation," warned Nagel, who is also a member of the ECB's governing council.

He did not rule out inflation rates exceeding 4% in some months. The central banker said: "Even if the war ends soon, the inflation rate could remain elevated for much longer than we thought just a few weeks ago."

Inflation in the eurozone rose to 3% in April, well above the ECB's target of 2% in the medium term. However, the core inflation rate - which excludes volatile energy and food prices - is significantly lower.

As there are still no signs of progress towards an end to the Iran conflict and the transport of goods through the Strait of Hormuz remains hampered, expectations are growing in the financial markets that the ECB could raise interest rates.

However, the governor of the Bank of France, François Villeroy de Galhau, made it clear on the radio station France Info that there is not yet sufficient information on the future development of core inflation to make a decision.

source: dpa

LONDON MARKET OPEN: Shares up as gilts steady, Intertek jumps on bid

2026-05-13T08:18:07Z

Stock prices in London opened higher on Wednesday, as gilt markets steadied and investors welcomed strength in banking and mining stocks.

The FTSE 100 index opened up 73.59 points, 0.7%, at 10,338.91. The FTSE 250 was up 94.75 points, 0.4%, at 22,560.78, and the AIM all-share was up 3.78 points, 0.5%, at 814.44.

The Cboe UK 100 was up 0.8% at 1,027.63, the Cboe UK 250 was up 0.4% at 19,458.60, and the Cboe small companies was down 0.2% at 18,231.74.

In European equities on Wednesday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.9%.

In Westminster, Keir Starmer was holding talks with possible leadership challenger Wes Streeting on Wednesday morning, as the prime minister warned against a return "to the chaos and instability of the past".

Starmer's meeting with the health secretary, who would represent the centre-right of the Labour Party in any leadership contest, marked another potentially critical moment as the prime minister battles to stabilise his premiership. The meeting lasted around 20 minutes.

Wednesday is expected to bring further political drama in Westminster. Starmer will attempt to shore up his position with the unveiling of dozens of pieces of legislation in the King's Speech, aimed at demonstrating that the government still has a clear legislative programme.

UK government borrowing costs dipped on Wednesday as the gilt market steadied after yields climbed to their highest level since 2008 earlier this week.

The UK 10-year gilt was quoted at 5.073% early on Wednesday, down 0.03 percentage points from 5.103% at Tuesday's close, though above an intraday low of 5.054%.

Investors remain wary that a successor to Starmer could shift policy to the left, potentially driving higher public spending and pushing borrowing costs up further. Streeting is widely viewed by gilt investors as the least disruptive option to replace Starmer, seen as the continuity candidate most likely to stick with Labour's current fiscal rules.

Manchester Mayor Andy Burnham is regarded by some investors as a bigger risk, particularly following comments last year that the country should not be "in hock" to the bond market.

The pound recovered slightly after losing ground on Tuesday. Sterling was quoted at USD1.3521 early Wednesday, up from USD1.3505 at the London equities close. Against the euro, sterling rose to EUR1.1549 from EUR1.1517 a day prior.

The euro traded at USD1.1709 early Wednesday, down from USD1.1729 late Tuesday. Against the yen, the dollar was quoted at JPY157.71 versus JPY157.73.

On the FTSE 100, Intertek topped the index, up 6.9%, after the testing and inspection company said it is minded to recommend a takeover bid from private equity firm EQT, potentially paving the way for another major acquisition of a UK-listed company.

Intertek said its board would be minded to recommend a GBP60.00-per-share cash offer from EQT, subject to agreement on final terms and completion of due diligence. The proposal also allows shareholders to retain a 107.7p final dividend.

The offer follows earlier rejected bids of GBP51.50, GBP54.00 and GBP58.00 per share. Intertek said it remains confident in its standalone strategy but has paused its strategic review while EQT conducts confirmatory due diligence. The deadline for EQT to announce a firm offer or walk away has been extended to June 11.

The FTSE 100 was also supported by a rebound in banks and a rally in miners as metals prices rose. Antofagasta climbed 5.1%, while Fresnillo and Endeavour Mining were both up 4.5%.

Banks, which had been under pressure on speculation of a potential left-leaning challenger to Starmer and fears of new levies on the sector, recovered. Barclays rose 1.7%, followed by Lloyds Banking Group, up 1.6%.

Babcock International was among the leading gainers, up 3.3%, after reporting higher revenue and launching a new share buyback.

Revenue in the year to March 31 increased 9.1% to GBP5.27 billion from GBP4.83 billion, driven by growth in its Nuclear and Aviation businesses. Underlying operating profit fell to GBP293 million from GBP363 million and underlying basic earnings per share declined to 39.6p from 50.3p, reflecting a GBP140 million non-recurring charge linked to its Type 31 frigate contract.

Excluding the charge, underlying operating profit rose 19% to GBP433 million and operating margin improved to 8.2% from 7.5%. Free cash flow increased to GBP262 million from GBP153 million, and net debt narrowed to GBP329 million from GBP373 million.

Land revenue returned to growth in the second half but fell 3% overall to GBP1.08 billion from GBP1.12 billion, as defence growth was offset by weaker civil volumes in Rail and South Africa.

The aerospace, defence and nuclear engineering group announced a new GBP200 million share buyback programme after completing a previous GBP200 million buyback in April. It reiterated unchanged expectations for financial 2027, supported by around 70% of expected revenue already under contract.

On the FTSE 250, Vistry plunged 11% after pausing its share buyback programme to prioritise debt reduction.

The Kent-based housebuilder said it is focusing on improving cash generation amid "more challenging" market conditions. Average daily net debt in the first half is expected to be higher than a year ago due to higher land payments and slower conversion of reservations into completions, though it still expects to end 2026 with net cash above GBP100 million.

Year-to-date sales rate rose 32% to 1.20 from 0.91 a year earlier, with Open Market sales around 30% higher year-on-year despite some moderation linked to uncertainty over the Middle East conflict.

Vistry said increased incentives and discounting have been concentrated on low-margin and near-complete sites, with the impact on profit expected to ease in the second half. The forward order book slipped to GBP4.5 billion from GBP4.6 billion, while partner transaction activity remained subdued during the transition between Social Affordable Housing Programmes.

The company warned that the Middle East conflict is putting upward pressure on material and labour costs, which it is seeking to mitigate through supplier engagement. It is adopting stricter hurdles for land buying while conditions remain volatile and expects adjusted pretax profit for 2026 towards the middle of the GBP168 million to GBP283 million analyst forecast range.

In the US on Tuesday, Wall Street ended mixed. The Dow Jones Industrial Average rose 0.1%, the S&P 500 fell 0.2% and the Nasdaq Composite declined 0.7%.

Before departing for China, US President Donald Trump issued a fresh warning over Iran, saying: "Iran will either do the right thing or we will finish the job."

He reiterated that his primary objective remains preventing Iran from acquiring a nuclear weapon and said he was not factoring in the financial impact on Americans.

"Our inflation is just short term," Trump told reporters, hours after consumer price inflation came in at 3.8% year-on-year, its highest level in three years. "As soon as this war is over, which will not be long, you're going to see oil prices drop," he said.

Asked whether Americans' financial situation was influencing his push for a peace deal, Trump replied: "Not even a little bit. The only thing that matters when I'm talking about Iran: they can't have a nuclear weapon."

Brent oil was trading at USD106.69 a barrel early Wednesday, down from USD108.07 late Tuesday.

In Asia on Wednesday, the Nikkei 225 index in Tokyo closed up 0.8%. In China, the Shanghai Composite rose 0.7%, while the Hang Seng index in Hong Kong edged up 0.1%. The S&P/ASX 200 in Sydney closed down 0.5%.

Gold was quoted at USD4,703.36 an ounce early Wednesday, up from USD4,663.87 on Tuesday.

Still to come on Wednesday's economic calendar, the eurozone releases GDP, industrial production and employment change data.

In the UK, the King's Speech is due at around 1130 BST. In the US, producer price inflation, EIA crude oil stocks and the IEA oil market report are scheduled.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Zurich Insurance confident after first quarter, notes uncertainty

2026-05-13T07:47:44Z

Zurich Insurance Group AG on Wednesday reported a strong start to 2026, with gross written premiums ticking up from the year prior.

The insurer posted USD15.56 billion in Property & Casualty GWP for the three months ended March 31, up 17% from USD13.32 billion on-year.

Commercial Insurance GWP rose 18%, "supported by disciplined underwriting and strong customer demand", while Retail GWP rose 15%, driven by growth in the Motor segment, with Travel performing well. The travel outlook, however, remains "dependent on the development of macroeconomic and geopolitical uncertainties indirectly affecting global travel demand".

"The group's exposure to geopolitical conflicts and tensions in the Middle East remains limited, with no material impact on performance expected. Against a backdrop of heightened geopolitical and macroeconomic uncertainty, Zurich continues to focus on supporting its customers as risks across the market continue to be reassessed," the company said.

P&C insurance revenue rose 11% to USD12.0 billion from USD10.78 billion.

Life GWP and deposits increased by 5% to USD9.85 billion from USD9.36 billion. Farmers Exchanges GWP increased by 4% to USD7.72 billion from USD7.40 billion.

Chief Financial Officer Claudia Cordioli commented: "All our businesses started the year strongly, with growth accelerating across targeted business lines and customer segments, including Specialty, Middle Market and Life Protection. Combined with our geographic diversification, these results highlight the resilience of our business model and the strength of our franchise. Thanks to our strong capital position, we are well positioned to navigate the current uncertain environment and stay on track to meet or exceed our 2027 targets."

The company's Swiss Solvency Test ratio was estimated at 265% as of March 31, up from 259% at December 31.

Zurich Insurance shares rose 3.7% to CHF560.80 on Wednesday morning in Zurich.

By Holly Munks, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Spirax backs 2026 forecast despite tepid industrial backdrop

2026-05-13T07:43:17Z

Spirax Group PLC on Wednesday said it started the year in line with expectations despite a "weak" industrial backdrop.

The Gloucestershire-based thermal energy and fluid technology company said it has seen mid-single-digit on-year organic growth in revenue in the first four months of 2026, with the adjusted operating profit margin improved on an organic basis.

"Macroeconomic uncertainty remained elevated, with conflict in the Middle East adding to the ongoing trade tariff developments and higher energy costs weighing on industrial production growth. Global IP1 in Q1 2026 was 1.4%, remaining weak in key European markets. Excluding China, industrial production was 1.5% with the full year forecast of 1.9% broadly unchanged from February and weighted to the second half. We remain cautious on the IP outlook as reflected in our guidance," Spirax said.

In the Steam Thermal Solutions arm, demand grew ahead of industrial production and in line with expectations. It said demand in China and Korea also continued to recover.

Electric Thermal Solutions saw double-digit demand, while at Watson-Marlow Fluid Technology Solutions, it remained "robust".

Spirax added: "We have delivered organic growth across the group in the first four months of the year in line with our expectations and despite the weak IP environment, we reiterate our guidance for 2026. We anticipate mid-single-digit organic growth in group revenues well ahead of IP; and an increase in group adjusted operating profit margin on an organic basis. We continue to expect organic growth in revenue and adjusted operating profit margin to be higher in the second half of the year, reflecting our usual seasonal profile."

Spirax shares fell 0.5% to 7,130.00 pence each in London on Wednesday morning.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Babcock International sales increase but frigate charge dents profit

2026-05-13T07:41:06Z

Babcock International Group PLC on Wednesday announced a new share buyback as it reported a charge on its type 31 frigate contract amid strong sales growth.

The London-based aerospace, defence and nuclear engineering services company said revenue rose 9.1% to GBP5.27 billion in the financial year ending March 31 from GBP4.83 billion a year earlier, or by 10% at constant currency.

Babcock said this reflected "strong underlying operational and financial performance" and "continued momentum and particularly strong performances in Nuclear and Aviation."

Shares in Babcock International were 3.6% higher at 1,043.14 pence each in London on Wednesday.

But underlying operating profit fell 19% to GBP293 million from GBP363 million and underlying basic earnings per share declined 21% to 39.6p from 50.3p, reflecting a GBP140 million non-recurring charge related to its Type 31 frigate contract.

Excluding the charge, underlying operating profit increased 19% to GBP433 million, operating margin improved to 8.2% from 7.5% and underlying basic EPS climbed to 60.5p from 50.3p.

The FTSE 100-listing said underlying free cash flow grew to GBP262 million from GBP153 million and net debt narrowed to GBP329 million from GBP373 million.

Babcock put consensus for full-year revenue at GBP5.11 billion, underlying operating profit of GBP411 million and free cash flow of GBP215 million.

The GBP140 million charge reflects revised costs to complete delivery of the Type 31 design and build contract, which is fully recognised in financial 2026, with the cash costs incurred over the remainder of the programme.

Babcock said it has experienced "higher than expected levels of rework as a result of changes to the design and the long-term impacts of out-of-sequence build activity earlier in the programme."

"Whilst the number of such rework events is not entirely unexpected, the work is being performed in the later stages of completion and therefore is more complex and more costly," it added.

Babcock estimates GBP100 million of the GBP140 million will be recognised as a revenue reversal in financial 2026 with the balance increasing the contract loss provision.

At constant currency, Nuclear revenue increased 14%, driven by strong growth in the Cavendish Nuclear business and higher submarine support activity, more than offsetting the expected decline in Major Infrastructure Programme revenue.

Marine revenue grew 8%, before a GBP100 million revenue reversal as a result of the Type 31 charge.

Land revenue returned to growth in the second half of the financial year, but declined 3% overall, as growth in defence was offset by weaker civil volumes in Rail and South Africa.

Aviation revenue climbed 34% due to the ramp up of the Mentor 2 programme in France and the British Columbia helicopter emergency services contract in Canada, and increased scope in UK military support contracts.

In addition, Babcock announced a new GBP200 million share buyback programme after completing a previous GBP200 million buyback in April.

Expectations for financial 2027 are unchanged, supported by around 70% of expected revenue already under contract.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Deutsche Telekom slightly lifts 2026 guidance amid T-Mobile growth

2026-05-13T07:37:42Z

Deutsche Telekom AG on Wednesday slightly raised its guidance for 2026, as it said it has been "largely unaffected by events around the globe".

The Bonn, Germany-based telecommunications provider said attributable profit fell 28% to EUR2.04 billion in the first quarter from EUR2.85 billion a year prior. Earnings per share sank 27% to EUR0.42 from EUR0.58.

Net revenue for the first quarter edged up 0.4% to EUR29.87 billion from EUR29.76 billion, and increased 4.7% in organic terms.

However, goods and services purchases climbed 2.4% to EUR11.95 billion from EUR11.67 billion. Personnel costs grew 4.7% to EUR5.19 billion from EUR4.96 billion.

Deutsche Telekom said adjusted earnings before interest, tax, depreciation and amortisation and after leases grew by 2.0% to EUR11.5 billion from EUR11.3 billion. In organic terms, it was up 7.5%.

"Deutsche Telekom shows resilience in turbulent times," said Chief Executive Officer Tim Hottges.

"Our business operations remain stable, largely unaffected by events around the globe. In fact, we have slightly raised our guidance."

The firm now expects adjusted Ebitdaal of around EUR47.5 billion for 2026, up from previous guidance of around EUR47.4 billion. In 2025, Deutsche Telekom reported adjusted Ebitdaal of EUR44.2 billion.

The guidance for adjusted earnings per share remains unchanged at around EUR2.20, up from EUR2.00 in 2025.

Deutsche Telekom said its increased expectations reflect the raised guidance recently announced by its subsidiary T-Mobile US Inc.

Last month, T-Mobile US said it now expects core adjusted Ebitda between USD37.10 billion and USD37.50 billion for 2026, up from initial guidance of between USD37.00 billion and USD37.50 billion.

Deutsche Telekom said first quarter revenue in Germany increased 1.9% to EUR6.34 billion from EUR6.22 billion. US revenue fell 0.3% to EUR19.74 billion from EUR19.80 billion, while revenue for Europe was 1.2% higher at EUR3.09 billion from EUR3.05 billion.

System Solutions revenue was 3.2% higher at EUR994 million from EUR963 million.

Shares in Deutsche Telekom were up 1.4% at EUR28.00 on Wednesday morning in Frankfurt.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

SoftBank's annual net profit quadruples to USD32 billion

2026-05-13T07:33:17Z

SoftBank Group Corp said Wednesday its net profit quadrupled year-on-year in financial year 2026, boosted by its investments in artificial intelligence.

The Minato, Tokyo-based tech investor posted net profit of JPY5 trillion, USD32 billion, for the financial year ending in March, compared with JPY1.15 trillion in the previous year.

After suffering massive losses across its broad tech portfolio in recent years, SoftBank has turned things around by diving into the fast-growing artificial intelligence sector.

It announced in December that its stake in ChatGPT maker OpenAI was around 11% after completing the second stage of a USD41 billion investment.

SoftBank's earnings often swing dramatically because it invests heavily in tech start-ups and semiconductor firms, whose stocks are volatile.

SoftBank shares closed 0.4% higher at JPY6,012.00 each on Wednesday.

source: AFP

Vistry warns of weaker half-year profit and pauses share buyback

2026-05-13T07:28:54Z

Vistry Group PLC on Wednesday said it has put the brakes on its buyback and warned of "significantly lower" half-year profit.

The housebuilder cautioned that the Middle East conflict has "started to create some upward pressure on material and, to a lesser extent, labour prices". It expects this to continue into the second half.

Vistry shares slumped 11% to 290.13 pence each in London on Wednesday morning, the worst FTSE 250 performer.

"Whilst market conditions have become more challenging in Q2, we have continued to increase our focus on initiatives to enhance cash generation," the company said.

Measures include reducing inventory through sales initiatives, having "higher hurdles" for land purchases and pausing its current share buyback to "prioritise debt reduction".

Vistry said: "Average daily net debt in the first half is expected to be higher than the prior year, reflecting higher land payments in the early part of the year and slower than anticipated conversion of reservations to completions on Open Market homes, commonly due to delays within housing chains. However, the combined effect of the above actions is expected to deliver significantly lower average net debt levels in the second half and we are now expecting a net cash position in excess of GBP100 million at 31 December 2026."

It expects first half profit to be "significantly lower than the prior year". This is "primarily due to the up-front profit impact of the actions to accelerate cash generation".

"However, with the benefits of an improved margin mix on active sites and a step up in demand from our affordable housing partners we expect H2 2026 profit to be in line with H2 2025 profit," Vistry added.

As a result, it expects adjusted pretax profit for 2026 in the middle of a GBP168 million to GBP283 million analyst forecast range. Adjusted pretax profit in 2025 amounted to GBP268.8 million. In the first half of last year, it totalled GBP80.6 million.

Vistry said: "The events in the Middle East have started to create some upward pressure on material and, to a lesser extent, labour prices which we expect to continue into H2. We are mitigating these where possible, through proactive engagement with our sub-contractors and suppliers and we will continue to monitor overall build cost inflation for 2026 and into 2027 as macro-economic conditions evolve."

It has seen a year-to-date increase in its sales rate to 1.20 from 0.91 a year prior.

"The year-to-date Open Market sales rate remains around 30% higher than the prior year, despite some moderation in recent weeks reflecting uncertainty arising from the Middle East conflict. The use of increased incentives and discounts has been more significant on low margin sites and developments that are nearing completion, resulting in an earlier recognition of profit impacts and a higher weighting of the overall profit impact in the first half than previously anticipated. We expect the level of discounting and its effect on profit to reduce in the second half of the year," the company said.

"As expected, transaction activity with partners has been relatively subdued as the industry transitions between social affordable housing programmes. We are encouraged that bidding for the SAHP 2026-2036 recently closed, with notification of grants and clarification of Partner status expected in Q3. This is expected to drive a step up in demand from our affordable housing partners towards the end of 2026 and into 2027, which will contribute to a greater second half weighting of partner revenues." SAHP stands for Social & Affordable Homes Programme.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Siemens unveils EUR6 billion buyback as second quarter profit falls

2026-05-13T07:21:26Z

Siemens AG on Wednesday said it will buy back EUR6 billion in shares as it confirmed its outlook for 2026, but reported lower net income for the second quarter.

The Munich, Germany-based technology company said net income fell 8.3% to EUR2.24 billion in the second quarter from EUR2.44 billion a year prior. On a per diluted share basis, net income fell 8.8% to EUR2.58 from EUR2.83.

Revenue for the second quarter was stable at EUR19.76 billion. On a comparable basis, Siemens said revenue was 6% higher.

Siemens announced a new share buyback programme of up to EUR6 billion, to run for up to five years.

"We delivered a successful second quarter despite the geopolitical environment, which remains very demanding. Siemens is benefiting from its technological strength and strong positioning in key growth markets. Digital Industries and Smart Infrastructure posted impressive overall performance – clear evidence that we're on a path of profitable growth," said Chief Executive Officer Roland Busch.

In the second quarter, orders climbed 11% to EUR24.11 billion from EUR21.64 billion, as the firm noted a "record-high" order intake at Smart Infrastructure.

For the first half in total, net income fell 29% to EUR4.46 billion from EUR6.31 billion. Diluted net income per share sank 31% to EUR5.16 in the first half from EUR7.48.

First half revenue grew 2.1% to EUR38.90 billion from EUR38.11 billion.

Siemens confirmed its outlook for 2026. It continues to expect comparable revenue growth between 6% and 8%.

The company forecasts basis earnings per share from net income before purchase price allocation accounting between EUR10.70 and EUR11.10 in 2026. EPS pre PPA in 2025 was EUR12.95.

Siemens now forecasts comparable revenue growth between 7% and 10% in Digital Industries, up from between 5% and 10%.

It now sees 8% to 10% comparable revenue growth in Smart Infrastructure, up from previous guidance of between 6% and 9%.

The firm guides for 5% to 7% comparable revenue growth in the Mobility division, down from between 8% and 10% previously.

"Our operating businesses' convincing performance and our strong free cash flow prove our resilience. As a result, we're very well positioned to reach our full-year group targets," said Chief Financial Officer Veronika Bienert.

Shares in Siemens were up 0.4% at EUR265.55 on Wednesday morning in Frankfurt.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Intertek backs EQT tilt after "significant" shareholder engagement

2026-05-13T07:13:01Z

Intertek Group PLC on Wednesday backed the latest takeover tilt from suitor EQT Fund Management Sarl, after rebuffing three prior proposals.

EQT upped the ante again on Tuesday, making a takeover proposal which it said is the "final possible offer", and the one that finally won over the assurance, inspection, product testing and certification firm.

EQT's final proposal is worth GBP60 per share in cash, GBP61.077 including a final dividend. Together with the dividend, the tilt values Intertek at GBP9.40 billion.

Shares in the company shot up 7.6% to 5,705.00 pence each in London on Wednesday morning, giving it a GBP8.77 billion market capitalisation.

Intertek said its recommendation follows "significant engagement with its shareholders".

Activist investor Palliser Capital, which has built a stake in Intertek below 1%, had urged the London listing to engage with EQT.

"The latest proposal for Intertek from EQT represents an attractive opportunity for shareholders that compares favourably, on a risk-and-time-adjusted basis, to the outcomes achievable through the strategic review. We strongly urge the Intertek board to engage with EQT now to establish a constructive dialogue, allow any required due diligence to take place and secure a favourable transaction for shareholders," a statement from Palliser said.

Separately, Reuters reported PrimeStone Capital also urged Intertek to engage with EQT.

"The (Intertek) board's latest response does not, in our view, reflect the serious engagement that this approach merits," activist PrimeStone said, according to Reuters.

Reuters reported that PrimeStone Capital owns around 0.5% of Intertek.

Intertek said on Wednesday: "The final proposal is subject to a number of preconditions, including completion of confirmatory due diligence and agreement of definitive transaction documentation. The board of Intertek has agreed to provide EQT with access to confirmatory due diligence on a customary basis to facilitate the announcement of a firm intention to make an offer."

EQT had previously made takeover proposals worth GBP51.50, GBP54.00 and GBP58.00 per share.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UPDATE: Trump vows to push Xi to "open up" China at superpower summit

2026-05-13T07:05:46Z

US President Donald Trump said he would ask Xi Jinping to "open up" China to American firms as he headed to Beijing on Wednesday for a high-stakes summit that will also bring up the Iran war.

In a sign of Trump's focus on business, Nvidia Corp Chief Executive Officer Jensen Huang boarded Air Force One during a stopover in Alaska, with Tesla Inc's Elon Musk also travelling on the presidential plane to China.

"I will be asking President Xi, a Leader of extraordinary distinction, to 'open up' China so that these brilliant people can work their magic, and help bring the People's Republic to an even higher level!" Trump wrote on social media after departing Washington.

A host of other top CEOs, including Apple Inc's Tim Cook, will also be in Beijing for the visit, the first by a US president to China in nearly a decade.

But Trump's ambitions to ramp up trade will have to contend with political frictions over Taiwan and the war in the Middle East, which already delayed the trip from March.

As he departed the White House, Trump said he expected a "long talk" with Xi about Iran, which sells most of its US-sanctioned oil to China.

But he also downplayed disagreements, telling reporters that "I don't think we need any help with Iran" from China and that Xi had been "relatively good" on the topic.

Yet Beijing is growing impatient for peace, with China's foreign minister urging his Pakistani counterpart on Tuesday to step up mediation efforts between Iran and the US.

This week's trip – the first since Trump visited Beijing in 2017 – will involve highly anticipated talks with Xi on Thursday and Friday, as well as lavish pomp and ceremony.

The packed itinerary includes a state banquet in Beijing's Great Hall of the People and a tea reception.

China's controls on rare earth exports, artificial intelligence rivalry and the countries' raucous trade relationship are also among the topics expected to be taken up by the heads of the world's top two economies.

The two sides are set to discuss extending a one-year truce in their tariff war, which Trump and Xi reached during their last meeting in South Korea in October.

The tense buildup to the superpower summit was already visible on the streets of Beijing, with police monitoring major intersections and checking the ID cards of passengers on the metro, AFP journalists saw.

"It's definitely a big deal," said Wen Wen, a 24-year-old woman travelling from the eastern city of Nanjing, when asked by AFP about Trump's visit.

"Some progress will certainly be made," she said, noting that she hopes China and the US can ensure "lasting peace" despite "recent instability in the global situation".

The US and China have long sought to stabilise their relationship despite increasingly seeing each other as adversaries in trade and geopolitics.

Trump has repeatedly touted a strong personal relationship with Xi, which he insisted on Monday would prevent a Chinese invasion of Taiwan, the self-ruled island claimed by Beijing.

"I think we'll be fine. I have a very good relationship with President Xi. He knows I don't want that to happen," he said.

Trump's trip will be closely scrutinised by Taiwan and Asian allies for any sign of weakening US support.

Beijing has grown more confident and assertive since Trump's 2017 trip and the US president finds himself in a weakened position as he seeks a way out of his Iran war.

But the summit also comes at an uncertain time for China's economy, which has struggled in recent years with sluggish domestic spending and a protracted debt crisis in the once-booming property sector.

By Danny Kemp and Peter Catterall

source: AFP

LONDON BRIEFING: Babcock launches buyback; Intertek backs EQT bid

2026-05-13T06:59:09Z

Babcock reports higher annual revenue and launches a GBP200 million share buyback despite a hit from its Type 31 frigate programme, while Intertek says it is "minded" to accept a takeover proposal from EQT. Elsewhere, Vistry pauses its share buyback programme as it prioritises debt reduction amid more volatile market conditions.

Here is what you need to know before the London market open:

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MARKETS

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FTSE 100: called higher 0.5% at 10,318.92

GBP: higher at USD1.3534 (USD1.3505 at previous London equities close)

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BROKER RATINGS

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Jefferies raises IMI price target to 3,295 (3,085) pence - 'buy'

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Peel Hunt starts Helios Towers with 'buy' - price target 290 pence

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Deutsche Bank Research cuts On The Beach Group price target to 314 (345) pence - 'buy'

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COMPANIES - FTSE 100

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Intertek Group says its board would be minded to recommend a GBP60.00-per-share cash takeover proposal from EQT, subject to agreement on final terms and completion of due diligence. The proposal, which also allows shareholders to retain a 107.7p final dividend, follows earlier rejected bids of GBP51.50, GBP54.00 and GBP58.00 per share. The London-based assurance, inspection, product testing and certification firm says it remains confident in its standalone strategy but has paused its strategic review while EQT conducts confirmatory due diligence. The deadline for EQT to announce a firm offer or walk away has been extended to June 11.

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Babcock International says revenue in the financial year ending March 31 rises 9.1% to GBP5.27 billion from GBP4.83 billion a year earlier, driven by growth in its Nuclear and Aviation businesses. Underlying operating profit falls to GBP293 million from GBP363 million and underlying basic earnings per share declines to 39.6p from 50.3p, reflecting a GBP140 million non-recurring charge related to its Type 31 frigate contract. Excluding the charge, underlying operating profit rises 19% to GBP433 million and operating margin improves to 8.2% from 7.5%. The London-based aerospace, defence and nuclear engineering group says free cash flow increases to GBP262 million from GBP153 million and net debt narrows to GBP329 million from GBP373 million. Land revenue returns to growth in the second half, but declines 3% overall to GBP1.08 billion from GBP1.12 billion, as growth in defence is offset by weaker civil volumes in Rail and South Africa. The company announces a new GBP200 million share buyback programme after completing a previous GBP200 million buyback in April. Babcock reiterates unchanged expectations for financial 2027, supported by around 70% of expected revenue already under contract.

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Spirax Group says trading in the first four months of 2026 is in line with expectations and reiterates its full-year guidance despite elevated macroeconomic uncertainty and higher energy costs linked to conflict in the Middle East. The London-based property developer reports mid-single-digit organic revenue growth in the four months ended April 30 and says adjusted operating profit margin improved organically from a year earlier. Spirax says demand in its Steam Thermal Solutions business grew ahead of industrial production, supported by strength in maintenance, repair and operations activity and some recovery in large projects, while Electric Thermal Solutions delivered double-digit demand growth across all divisions. The company says net borrowings at the end of the first quarter were GBP575 million, with net debt to Ebitda unchanged at 1.5x.

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Oil major BP confirms it has entered a production sharing agreement for six blocks in the North Ustyurt region of Uzbekistan, marking its first project in the country. BP acquires a 40% participating interest in the PSA, taking 20% each from SOCAR and Uzbekneftegaz. Following the deal, BP will hold 40%, while SOCAR and Uzbekneftegaz will each own 30%, with SOCAR remaining operator. The agreement covers the Boyterak, Terengquduq, Birqori, Kharoy, Qoraqalpoq and Qulboy blocks. The project is currently in its first phase, with seismic activities under way. BP says the PSA was originally signed in July 2025 between SOCAR, Uzbekneftegaz and the Ministry of Energy of Uzbekistan.

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COMPANIES - FTSE 250

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Vistry Group pauses its share buyback programme to prioritise debt reduction as the Kent, England-based housebuilder says it focuses on improving cash generation amid "more challenging" market conditions. Vistry says average daily net debt in the first half is expected to be higher than a year ago due to higher land payments and slower conversion of reservations into completions, though it still expects to end 2026 with net cash above GBP100 million. The company says year-to-date sales rate rises 32% to 1.20 from 0.91 a year earlier, with Open Market sales around 30% higher year-on-year despite recent moderation caused by uncertainty linked to the Middle East conflict. Vistry says increased incentives and discounting have been concentrated on low-margin and near-complete sites, with the impact on profit expected to ease in the second half. The forward order book slips to GBP4.5 billion from GBP4.6 billion, while partner transaction activity remains subdued during the transition between Social Affordable Housing Programmes, or SAHP. Vistry says the Middle East conflict is putting upward pressure on material and labour costs, which it is seeking to mitigate through supplier engagement. The company says it is adopting stricter hurdles for land buying while conditions remain volatile and expects adjusted pretax profit for 2026 towards the middle of the GBP168 million to GBP283 million analyst forecast range.

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CVS Group is facing pressure from activist investor Converium Capital, which has built a 2% stake and is urging the company to launch a GBP100 million share buyback, according to the Financial Times. Converium says CVS shares remain undervalued despite the conclusion of the UK competition regulator's investigation into the veterinary sector and the company's recent promotion to the FTSE 250 index. The activist investor argues the buyback would still leave room for up to GBP45 million of acquisitions while remaining within debt targets. Converium also warns it could seek board representation if its demands are not met. The UK Competition & Markets Authority in March imposed reforms on major veterinary groups, including CVS, following a probe into competition and pricing in the sector.

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TP ICAP says first-quarter revenue rises 13% year-on-year at constant currency to a record GBP689 million, driven by strong performances in its Global Broking and Energy & Commodities divisions amid volatile market conditions and elevated trading volumes. Global Broking revenue increases 15%, while Energy & Commodities revenue rises 13%. The company says Liquidnet revenue grows 9%, helped by expansion in equities and multi-asset execution, while Parameta Solutions revenue increases 4%. TP ICAP says the record first quarter marks a "very strong start" to the year and says it remains comfortable with its outlook for the remainder of 2026 at current foreign exchange rates.

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Gamma Communications says trading in the opening months of financial 2026 is in line with expectations, supported by continued growth in cloud communications and healthy cash generation. The company says net debt narrows to GBP1.6 million at April 30 from GBP9.3 million at December 31, despite share buyback and acquisition-related payments. Gamma reiterates full-year guidance and expects adjusted Ebitda within the analyst consensus range of GBP138.1 million to GBP142.8 million, with fully diluted adjusted earnings per share expected between 90.9p and 94.4p. Separately, Gamma confirms that Providence Equity Partners LLC is among parties in preliminary takeover discussions following recent press speculation, though it says there can be no certainty that an offer will be made.

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OTHER COMPANIES

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Guardian Metal Resources says it has expanded its Tempiute Tungsten project mineral rights position in Nevada by more than 375% after identifying around 550 acres of historical tungsten-enriched mine tailings. The company says it has staked 193 additional claims to secure the full extent of the tailings area and is evaluating the potential to recover tungsten and other metals from the site as a near-term domestic US supply opportunity. Guardian Metal plans to begin an auger drilling programme in June, subject to permits, to assess the volume and grade of material. Separately, the company says key pre-feasibility study workstreams at its Pilot Mountain project in Nevada are advancing well, supported by a USD6.2 million investment from the US government.

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The National Investment Fund of the Republic of Uzbekistan JSC says its initial public offering raises around USD603.6 million, valuing the company at about USD1.95 billion. The fund says it sells a 31% stake through shares and global depositary receipts, with strong demand from international and local investors. Cornerstone investors including BlackRock, Franklin Resources and Redwheel commit USD300 million. Conditional trading in the GDRs on the London Stock Exchange begins on Wednesday under the symbols UZNF and UZ20, with unconditional trading expected from next week Monday. In Tashkent, its ordinary shares begin trading on or around next week Monday.

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By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 seen up as gilt turmoil eases

2026-05-13T06:00:21Z

Stocks in London are set to open higher on Wednesday, as investors continue to digest the fallout from political turmoil in Westminster and elevated US inflation.

IG says futures indicate the FTSE 100 to open 57.8 points higher, 0.6%, at 10,323.12 on Wednesday. The index of London large-caps closed marginally lower at 10,265.32 on Tuesday.

Gilts will remain in focus after UK borrowing costs surged on Tuesday, as a leadership crisis surrounding Prime Minister Keir Starmer rattled bond markets.

The 30-year gilt yield held at its highest level this century, with cabinet ministers piling pressure on Starmer to consider his position. Benchmark 10-year gilt yields hit their highest level since 2008, rising 0.13 percentage points to an intraday high of 5.13%, before easing back to 5.103% at the close.

Starmer was fighting to stay in office on Tuesday after openly challenging his rivals to launch a Labour leadership bid, as ministers resigned and calls for him to step down grew louder.

Starmer's supporters believe he has headed off a possible challenge by Health Secretary Wes Streeting, who is not thought to have the backing of the 81 Labour MPs required to formally launch a leadership bid. The prime minister is due to hold a crunch meeting with Streeting after challenging rivals to test their support.

Starmer told his cabinet on Tuesday to get on with their jobs ahead of Wednesday's state opening of parliament, when King Charles will unveil dozens of pieces of legislation aimed at demonstrating that the government still has a plan for the UK.

Sterling was quoted at USD1.3544 early Wednesday, higher than USD1.3505 at the London equities close on Tuesday. Against the euro, sterling rose to EUR1.1543 from EUR1.1517 a day prior.

The euro traded at USD1.1733 early Wednesday, slightly higher than USD1.1729 late Tuesday. Against the yen, the dollar was quoted at JPY157.71 versus JPY157.73.

In the US on Tuesday, Wall Street ended mixed. The Dow Jones Industrial Average rose 0.1%, the S&P 500 fell 0.2% and the Nasdaq Composite declined 0.7%.

Another major focus for markets was US inflation. President Donald Trump insisted his policies were working and argued that surging US inflation was only temporary, driven by the US and Israeli war against Iran.

Asked whether Americans' financial situation was motivating him to strike a peace deal with Iran, Trump replied: "Not even a little bit. The only thing that matters when I'm talking about Iran: they can't have a nuclear weapon."

Attention now turns to Trump's trip to China, where he is due to arrive in Beijing on Wednesday evening for the first visit by a US president in nearly a decade.

The high-stakes summit with Chinese President Xi Jinping comes as the war in Iran looms over talks. Trump is expected to be accompanied by prominent tech leaders including Elon Musk and Tim Cook, with trade, artificial intelligence and Taiwan all on the agenda.

Trump said he expected a "long talk" with Xi about Iran, which relies on China as the top customer for its US-sanctioned oil. However, he downplayed disagreements, saying Xi had been "relatively good, to be honest with you". Trump added that he would ask the Chinese president to "open up" China to US businesses.

Brent oil was trading at USD106.12 a barrel early Wednesday, lower than USD108.07 late Tuesday.

In Asia on Wednesday, the Nikkei 225 index in Tokyo rose 0.8%. In China, the Shanghai Composite gained 0.4%, while the Hang Seng index in Hong Kong was marginally lower. The S&P/ASX 200 in Sydney fell 0.4%.

Gold was quoted at USD4,699.97 an ounce early Wednesday, higher than USD4,663.87 on Tuesday.

In Wednesday's corporate calendar, Amaroq Ltd reports first-quarter results, Avon Technologies posts half-year results, Conduit Holdings issues a trading statement, Spirax Group releases a trading statement and TP ICAP Group also provides a trading update.

On the economic calendar, the eurozone releases GDP, industrial production and employment change data. France reports unemployment and consumer price inflation, while Germany publishes current account and wholesale price figures.

In the UK, the King's Speech is due. In the US, producer price inflation, EIA crude oil stocks and the IEA oil market report are scheduled.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Allianz backs 2026 guidance after record first quarter profit

2026-05-13T05:57:10Z

Allianz SE on Wednesday hailed a record start to the year, and the insurer said it is on track to meet its annual profit forecast.

Total new business volume in the first quarter declined 1.8% on-year to EUR53.0 billion from EUR54.0 billion, though "internal growth", which strips out currency events and acquisitions and divestments, was 3.5%.

"The Property-Casualty segment was the main contributor with strong business growth also in Asset Management," Allianz said.

Operating profit climbed 6.6% to EUR4.52 billion from EUR4.24 billion a year prior, while net income surged 49% to EUR3.85 billion from EUR2.58 billion.

Core earnings per share were 51% higher at EUR9.96.

"Allianz delivered a record operating profit in the first quarter of 2026 – a testament to the strength of our fundamentals and the effectiveness of our customer-centered strategy," Chief Executive Officer Oliver Bate said.

"We remain disciplined in our delivery as we work to expand affordable protection and retirement for more people, harnessing the potential of AI to serve them in an even more efficient and personalized way."

Looking ahead, Allianz said it is on track to achieve its operating profit aim of EUR17.4 billion for the full year, plus or minus EUR1 billion. Operating profit in 2025 amounted to EUR17.37 billion.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Japan current account surplus widens in March as exports jump 12%

2026-05-13T03:05:16Z

Japan's current account surplus widened in March, preliminary balance of payments data showed Wednesday.

According to the Ministry of Finance, Japan's current account surplus increased 5.3% to JPY4.682 trillion in March, around USD29.69 billion, from JPY3.625 trillion in the same month a year prior.

The reading beat the FXStreet-cited consensus forecast of JPY3.879 trillion and February's surplus of JPY3.933 trillion.

Exports rose 12% on-year to JPY10.822 trillion in March, imports grew 10% to JPY9.992 trillion.

By Judy Amaca, Alliance News reporter Asia-Pacific

Comments and questions to newsroom@alliancenews.com

NEW YORK MARKET CLOSE: Stocks mixed on hotter-than-expected April CPI

2026-05-12T20:30:59Z

Shares ended mixed in New York on Tuesday as investors reacted to a worse-than-expected consumer price index reading for April.

The Dow Jones Industrial Average closed up 56.09 points, 0.1%, at 49,760.56. The S&P 500 fell 11.18 points, 0.2%, to 7,400.96. The Nasdaq Composite ended down 185.92 points, 0.7%, at 26,088.20.

"After such a powerful earnings-driven rally, equities may simply need a breather," said Bret Kenwell at eToro. "While the labor market and broader economy still look stable - if not exactly robust - a disjointed Fed and rising inflation complicate matters."

The US Bureau of Labor Statistics showed Tuesday said annual inflation sped up to 3.8% in April from 3.3% in March, above FXStreet-cited expectations of a 3.7% rise.

Monthly, US consumer prices were up 0.6% in April, in line with consensus and following a 0.9% uptick in March.

Energy costs surged 29.2% on-year in April. Monthly, energy costs were up 5.6% in April after a 21.3% jump in March.

Excluding food and energy costs, US inflation was up 2.8% on-year in April, up from 2.6% in March and higher than an expected 2.7%. Monthly, US consumer prices less food and energy were up 0.4% in April, higher than an anticipated 0.3% and up from 0.2% in March.

Here, TD Economics explained that primary shelter costs were the main driver, rising 0.5% on-month, much stronger than the 0.2% month-on-month averaged over the prior three months.

This looks to be related to an unwinding of a government-shutdown survey quirk that occurred in the CPI data late last year, TD Economics said, and should "fall out next month, allowing the shelter component to resume its downward trend".

"Even assuming a 'more normal' reading on shelter prices last month, core inflation would've still firmed relative to March. With secondary price effects from higher energy prices likely to intensify in the months ahead, we're likely to see core measures of inflation drift a bit higher and hover around 3% through year-end," TD added.

Against the dollar, the euro was at USD1.1741 late Tuesday, down from USD1.1777 on Tuesday. Sterling fell to USD1.3541 from USD1.3618. Against the yen, the dollar was at JPY157.59, up from JPY157.25.

The yield on the 10-year US Treasury was at 4.46% on Tuesday, widened from 4.41% on Monday. The 30-year yield rose to 5.03% from 4.98%.

Gold fell to USD4,717.62 an ounce late Tuesday from USD4,735.50 on Monday.

Ahead of his historic trip to China, US President Donald Trump on Tuesday again warned that Iran would be "decimated" if it does not come to an agreement with the US.

"We have a lot of things to discuss [in China]. I wouldn't say Iran is one of them, to be honest with you, because we have Iran very much under control," Trump told reporters.

Despite reports that China continues to help arm Iran and purchase sanctioned oil, Trump said Xi has "been relatively good."

"They get a lot of their oil from that area. We've had no problem. And he's been a friend of mine. He's been somebody that we get along with."

A barrel of Brent was quoted at USD107.74 late Tuesday, up from USD104.15 on Monday. West Texas Intermediate rose to USD102.35 from USD98.07.

Ukrainian President Volodymyr Zelensky on Tuesday said he had met in Kyiv with Palantir Chief Executive Officer Alex Karp.

"There certainly are areas where we can be useful to one another, strengthening the defence of Ukraine, America, and our partners," Zelensky said in a statement on social media.

"We discussed areas of technological development - both in the context of combat operations and civilian needs," he added.

Palantir closed down 0.7%.

eBay on Tuesday said that it has rejected a takeover offer from video game retailer GameStop that valued the company at USD56 billion, calling the unsolicited proposal "neither credible nor attractive".

"eBay's board is confident that the company, under its current management team, is well positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders," Chair Paul Pressler said in a statement.

GameStop made its stock-and-cash deal in early May, to which analysts expressed doubts that it would be able to finance the deal. GameStop Chief Executive Officer Ryan Cohen said the company could "issue stock to get the deal done," however.

eBay closed up 2.1%. GameStop fell 3.5%.

Texas Attorney General Ken Paxton filed a lawsuit against Netflix on Monday, accusing it of improperly collecting user data and designing its platform to be addictive.

Paxton has accused the company of tracking and logging users' viewing habits, preferences and "other sensitive behavioral data," as well as "spying" on Texas kids and consumers.

"When you watch Netflix, Netflix watches you," the lawsuit said.

Netflix ended 2.6% higher on Tuesday.

Union Pacific on Monday said it averaged 334 miles per day of grain shuttle velocity in the three months ended March 31, compared to 294 miles per day in the same period the year before.

UP attributed its success to "record volumes" of grain transport in the wake of increased demand in Mexico and other overseas markets.

UP closed up 0.9% on Tuesday.

In Europe, London's FTSE 100 closed marginally lower. The DAX 40 in Frankfurt ended down 1.6%. The CAC 40 in Paris dropped 1.0%.

In China, the Shanghai Composite ended down 0.3%, while the Hang Seng Index in Hong Kong fell 0.2%. The Nikkei 225 in Tokyo rose 0.5%. The S&P/ASX 200 in Sydney closed down 0.4%

Wednesday's corporate calendar has third quarter results from Cisco.

The global economic diary includes eurozone industrial production and GDP

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Musk 'wanted 90%' of OpenAI, Altman says in high-stakes trial

2026-05-12T20:18:50Z

Elon Musk was obsessed with trying to control OpenAI, the artificial intelligence company's CEO Sam Altman said Tuesday at a blockbuster trial pitting some of the world's wealthiest tech titans against each other.

Altman is the latest in a parade of Silicon Valley megastars to take the stand in the case brought by Musk over OpenAI's pivot away from scrappy non-profit into the USD850 billion juggernaut behind ChatGPT.

Musk - the richest person on the planet - claims Altman and co-founder Greg Brockman improperly used a USD38 million injection he had hoped would sustain OpenAI as a research lab, developing the technology for the good of humanity.

"It does not fit with my conception of the words 'stealing a charity' to look at what has actually happened here," Altman told the court in Oakland, California.

"I am very proud of the work people have done, the value that has been created, and the support that this non-profit has."

OpenAI was founded as a non-profit in 2015, but established a for-profit subsidiary in 2019 as the AI race heated up.

Altman and others insist this was necessary to raise the vast sums of money from investors like Microsoft that were required to compete in a costly and difficult field.

Musk's legal case demands that OpenAI revert to non-profit status – a move that would impact its position in the global artificial intelligence race against Anthropic, Google and China's Deepseek.

OpenAI counters that Musk, who is now also an AI player with xAI, is motivated by petty revenge, having failed to seize majority control of the commercial entity.

The court has heard how, in 2017, the company's co-founders discussed the creation of the subsidiary with Musk.

Altman said Tuesday that the Tesla boss demanded a huge controlling stake.

"An early number that Mr Musk threw out was that he should have 90% of the equity to start," he told the jury.

"It then softened, but it always was a majority."

"The fact that Mr Musk was unwilling to commit in writing to something contractual where he would not have long-term control made me very uncomfortable.

"Part of the reason that we started OpenAI was that we did not think (Artificial General Intelligence) should be under the control of any one person," Altman said, referring to the hypothetical level at which AI is smarter than humans.

"No matter how good their intents are, this needs a rigorous governance structure."

When Altman and Brockman thwarted Musk's attempts to dominate the company, the mercurial businessman walked away entirely, telling them the venture would fail without him.

"The thing that burned into my memory is when he told us we had a zero percent – not one percent – chance of success," Altman told the hearing.

Musk's case has highlighted the mind-boggling sums of cash washing around AI companies as they forge ahead with a technology that is changing the way humanity lives and works.

That includes the USD30 billion stake that Altman's co-founder Greg Brockman was revealed to have in the company.

On Monday Microsoft CEO Satya Nadella testified that he was "very proud" of his firm's canny investment in the commercial venture, which has seen an initial USD13 billion become worth more than ten times that amount in just a few years.

Altman's testimony is expected to continue into Wednesday.

An advisory jury is expected to reach a verdict on any actual wrongdoing by the week of May 18.

Judge Yvonne Gonzalez Rogers will then make the final ruling on both liability and remedies after hearing the jury's opinion. She has indicated she will likely follow their advice.

Benjamin Legendre

source: AFP

Iran says Kuwait claims it tried to infiltrate island 'baseless'

2026-05-12T20:18:44Z

Iran on Tuesday rejected an "absolutely baseless" accusation from Kuwait that four Iranian officers attempted to infiltrate Bubiyan Island, saying they entered Kuwaiti waters because of disruption to navigational systems.

The foreign ministry said it "strongly condemns the improper action of the Kuwaiti government in politically and propagandistically exploiting the case".

Kuwait arrested the four earlier this month and on Tuesday accused them of being Revolutionary Guards officers.

bur/dcp/ach

source: AFP

US appeals court halts order declaring Trump's global 10% tariff illegal

2026-05-12T20:17:34Z

A US federal appeals court on Tuesday temporarily paused a ruling declaring President Donald Trump's global 10% tariffs illegal, granting a government request to suspend the decision pending appeal.

Trump imposed the temporary 10% duty in February, shortly after the Supreme Court struck down many of his global tariffs.

On May 7, the US Court of International Trade blocked the tariffs from being implemented against two companies and the state of Washington. That decision was to take effect on Tuesday.

The US Court of Appeals for the Federal Circuit on Tuesday issued a brief order that included an administrative stay on the CIT's order, setting a schedule for both sides to file briefs on the matter.

In its motion for a stay, the Trump administration argued that the CIT's decision should be stayed pending the full run of government appeals – up to the Supreme Court, if necessary.

It argued that if it issued refunds on the 10% global tariff, only to have an appeals court uphold its position, it would be unable to pursue economic redress.

"Plaintiffs, conversely, can be made whole through refunds, including interest, if the tariffs are ultimately held unlawful and refundable," the government said.

The court, however, only granted an administrative stay for the period while the court considers the motions for a stay pending appeal.

The Trump administration has said the new tariff was meant to deal with balance-of-payments deficits, citing Section 122 of the Trade Act of 1974.

The 10% global tariff under Section 122 is valid until late July unless extended by Congress.

The Trump administration has also been pursuing other means to impose tariffs to replace those struck down by the Supreme Court.

US authorities have opened investigations into dozens of trading partners over forced labor and overcapacity allegations – which could lead to fresh tariffs or other action.

Trump's sector-specific tariffs on goods like steel, aluminum and autos remain unaffected by these legal challenges.

The Supreme Court's striking down of the majority of Trump's tariffs was a blow to the Republican president, after he made the levies a signature economic policy.

Since the decision, businesses have rushed for refunds.

US Customs and Border Protection (CBP) estimated in March that more than 330,000 importers could be eligible for refunds after the Supreme Court's decision.

The tariffs that were struck down earlier, imposed under the International Emergency Economic Powers Act, collected approximately USD166 billion in duties and estimated deposits.

On Tuesday, CNBC reported that businesses had begun to receive refunds, in line with a CBP timeline released earlier this month.

CBP did not immediately respond to an AFP request for comment.

aha/

source: AFP

LONDON MARKET CLOSE: Pound wobbles, bonds suffer as Starmer battles on

2026-05-12T16:05:32Z

Stocks struggled on Tuesday, although blue-chips proved resilient, amid a triple whammy of domestic political strife, surging US inflation and a lack of progress in the Middle East.

The FTSE 100 closed down just 4.11 points at 10,265.32. The FTSE 250 ended down 341.66 points, 1.5%, at 22,466.20, and the AIM All-Share fell 11.75 points, 1.4%, at 810.66.

The Cboe UK 100 ended down 0.3% at 1,019.22, the Cboe UK 250 was 2.0% lower at 19,389.80, and the Cboe Small Companies Index ended down 0.4% at 18,261.54.

The pound fell to USD1.3505 on Tuesday afternoon from USD1.3651 on Monday. Against the euro, sterling was lower at EUR1.1517 from EUR1.1584 on Monday.

The yield on UK 10-year gilts traded at 5.10%, up from 5.01% the day before.

UK Prime Minister Keir Starmer defied calls for him to quit, despite a growing number of Labour MPs demanding that he steps aside.

"The Labour Party has a process for challenging a leader and that has not been triggered," Starmer told ministers during crunch talks over his future, as no one person has stepped forward to challenge him yet.

"The country expects us to get on with governing. That is what I am doing and what we must do as a cabinet," he added.

More than 80 of Labour's 403 members of parliament have now called for Starmer to quit immediately, or to set out a timetable for his resignation, including some ministers.

Banks sold off, amid reports of a possible windfall tax on the sector should there be a change at the top of government.

"Banks narrowly avoided a higher tax rate at the last budget, but our base case now assumes the UK banking surcharge to increase from 3% to 5%," said the banking team at JPMorgan.

NatWest fell 3.2%, Lloyds Banking Group dipped 4.4% and Barclays declined 3.6%.

Meanwhile, the surging bond yields weighed on interest rate sensitive housebuilders with Barratt Redrow down 4.1% and Taylor Wimpey 2.4% lower.

Adding to the uncertain mood, another spike in the oil price as the impasse in the Middle East carried on.

Iran's chief negotiator said Tuesday that Washington must accept Tehran's latest peace plan or face failure, after US President Donald Trump warned a truce was on the brink of collapse.

"Relations between Washington and Tehran appear to be more strained than at any time since the original ceasefire was announced just over a month ago," observed David Morrison at Trade Nation, suggesting that hostilities could "resume at any time".

Brent crude for July delivery was trading at USD108.07 a barrel on Tuesday, up compared to USD103.70 at the time of the equities close in London on Monday.

In Europe on Tuesday, the CAC 40 in Paris ended down 1.0%, and the DAX 40 in Frankfurt declined 1.6%.

In New York, the Dow Jones Industrial Average was down 0.5%, the S&P 500 fell 1.0% while the Nasdaq Composite was 1.7% lower.

The yield on the US 10-year Treasury widened to 4.46% on Tuesday from 4.39% on Friday. The yield on the US 30-year Treasury stretched to 5.02% from 4.97%.

The impact of the Iran war was reflected in soaring US inflation figures for April.

Annual CPI inflation sped up to 3.8% in April from 3.3% in March, above FXStreet-cited expectations of a 3.7% rise.

Monthly, energy costs were up 5.6% in April after a 21.3% jump in March.

Excluding food and energy costs, core CPI was up 2.8% on-year in April, up from 2.6% in March and higher than an expected 2.7%.

Analysts explained that much of the upside in core inflation came from a spike in shelter costs.

TD Economics said the numbers reinforce why the Fed needs to remain "patient".

While Bank of America said the latest increase means inflation is getting "very uncomfortable" for the Fed.

Following the data, Fed futures now place a 60% probability of a rate hike by March next year.

The euro traded slightly lower against the greenback, at USD1.1729 on Tuesday from USD1.1782 on Monday. Against the yen, the dollar was trading at JPY157.73, higher than JPY157.01.

Back in London, Vodafone fell back 7.0% after mixed full-year results with adjusted earnings short of hopes but adjusted cash flow ahead.

"In the stock market it's often said that it's better to travel than arrive, hence why shares in Vodafone dipped on robust-looking full-year results after a strong rally in the past 12 months," said Dan Coatsworth, head of markets at AJ Bell.

Vodafone shares have risen 60% in the last 12 months.

Intertek led the risers, up 6.4%, as it said it was "reviewing" the latest takeover proposal from suitor EQT Fund Management Sarl.

EQT's latest, and final, proposal is worth GBP60 per share in cash, GBP61.077 including a final dividend. Together with the dividend, the tilt values Intertek at GBP9.40 billion.

Intertek has turned down three previous approaches from EQT.

On the FTSE 250, Greggs rose 8.0% after reporting higher sales in the opening weeks of 2026 and maintaining full-year expectations.

But Wickes plunged 12% after reporting mixed trading as wet weather weighed on retail demand at the start of 2026.

Gold traded lower at USD4,663.87 an ounce on Tuesday, from USD4,733.27 on Monday.

The biggest risers on the FTSE 100 were Intertek, up 320.00p at 5,300.00p, British American Tobacco, up 255.00p at 4,634.00p, Compass Group, up 1.74p at 31.93p, Imperial Brands, up 104.00p at 2,832.00p and London Stock Exchange Group, up 328.00p at 9,348.00p.

The biggest fallers on the FTSE 100 were Vodafone Group, down 8.45p at 111.95p, 3i Group, down 116.00p at 2,400.00p, St James's Place, down 52.50p at 1,154.50p, Lloyds Banking Group, down 4.28p at 94.06p and Marks & Spencer, down 13.60p at 308.90p.

Wednesday's global economic calendar has eurozone industrial production and GDP data, the King's Speech in the UK and US PPI figures.

Wednesday's local corporate calendar has a trading statement from Spirax Group.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Pentagon says US cost of Iran war nearing USD29 billion

2026-05-12T15:03:56Z

The Pentagon said Tuesday the cost of the war with Iran had climbed to nearly USD29 billion, as President Donald Trump faced mounting scrutiny over the conflict and its impact on military readiness.

The new figure, revealed by the Defense Department during a budget hearing on Capitol Hill, is about USD4 billion higher than the estimate offered by Defense Secretary Pete Hegseth two weeks ago.

Hegseth and General Dan Caine, chairman of the Joint Chiefs of Staff, were testifying on a USD1.5 trillion budget request for 2027 alongside Pentagon finance chief Jules Hurst III when they were asked for an update on the war's price tag.

"At the time of testimony... it was USD25 billion dollars," Hurst told lawmakers, referring to Hegseth's April 29 estimate.

"But the joint staff team and the comptroller team are constantly looking at that estimate, and so now we think it's closer to 29," he said – citing updated "repair and replacement of equipment costs" and broader operational expenses.

Pressed on when Congress would receive a fuller accounting of the war's costs, Hegseth said the administration would request "whatever we think we need" separately from the main Pentagon budget, but did not say when that supplemental request would arrive.

The testimony came as a fragile US-Iran ceasefire appeared increasingly shaky, with Trump warning Monday that the truce was on "life support" after rejecting Tehran's latest peace proposal.

Democrats used the hearing to hammer the administration over both the ballooning cost of the war and what they described as a lack of transparency about US objectives.

"The question must be answered at the end – what have we accomplished and at what cost?" asked Rosa DeLauro, the top Democrat on the House Appropriations Committee.

Fellow Democrat Betty McCollum accused the Pentagon of a "consistent lack of transparency" and demanded more clarity about the administration's long-term strategy before Congress approves additional funding.

The war has intensified concerns over rapidly depleting US weapons stockpiles after months of heavy missile and air defence operations in the Middle East.

Hegseth dismissed warnings that the conflict had dangerously drained American munitions reserves.

"The munitions issue has been foolishly and unhelpfully overstated," he said. "We know exactly what we have. We have plenty of what we need."

Democratic Senator Mark Kelly warned over the weekend that inventories of Tomahawk missiles, Patriot interceptors and other advanced systems had been severely drawn down and could take years to replenish, potentially weakening US readiness in any future confrontation with China.

The hearings marked Hegseth's first appearance on Capitol Hill since the White House formally notified Congress that hostilities launched by the US and Israel against Iran on February 28 had "terminated."

Democrats, backed by two Republicans, have repeatedly accused Trump of waging war without proper congressional authorisation.

Hegseth and Caine were scheduled for a second round of questioning before a Senate panel later Tuesday.

source: AFP

FOREX: Pound slides as Westminster turmoil meets hotter US inflation

2026-05-12T13:27:42Z

Sterling weakened on Tuesday as a bout of political turmoil in the UK sent gilt yields sharply higher and rattled the pound, while stronger-than-expected US inflation data added to volatility across currency markets.

In the UK, speculation over Prime Minister Keir Starmer's future, combined with concerns over a fragile ceasefire in the Middle East that has kept upward pressure on oil prices, triggered sharp moves in bonds and foreign exchange.

The yield on the politically sensitive 30-year gilt hit its highest level since 1998 amid mounting worries that any replacement for Starmer could pursue looser fiscal policy.

Against the dollar, the pound fell to USD1.3531 on Tuesday afternoon from USD1.3606 at the same time on Monday. Sterling pared some losses from an intraday low of USD1.3503 before easing slightly again.

Versus the euro, the pound declined to EUR1.1518 from EUR1.1557, having touched an intraday low of EUR1.1493.

However, markets steadied somewhat after the prime minister emerged from a Cabinet meeting vowing to fight on.

Starmer held the meeting on Tuesday morning as he battles to remain in office.

Cabinet allies publicly backed him as they left Downing Street, saying he had pledged to "get on with governing" and insisted that a leadership contest had not been triggered.

Kathleen Brooks, research director at XTB, said: "The market is willing to wait and see but remains extremely sensitive to news out of Westminster. Ultimately, it could be the bond market that saves Starmer, as it is unlikely bond traders would trust anyone else at this stage."

The other major driver in currency markets was US inflation, which accelerated more than expected in April amid higher gasoline prices.

US consumer price index inflation rose to 3.8% in April from 3.3% in March, above the FXStreet-cited consensus forecast of 3.7%, data from the US Bureau of Labor Statistics showed.

Energy costs surged 29.2% on-year in April. On a monthly basis, energy prices rose 5.6% in April after jumping 21.3% in March.

Core consumer prices, excluding food and energy, increased 0.4% on-month in April, above expectations for a 0.3% rise and up from 0.2% in March.

The Dollar Index rose to 98.25 points from 97.98 a day earlier, though it remained below an earlier intraday high of 98.30 ahead of the release of the data.

Against the dollar, the euro slipped to USD1.1747 from USD1.1766.

The ZEW indicator of economic sentiment for the eurozone rose 11.3 points to minus 9.1 in May from minus 20.4 in April, significantly better than the FXStreet-cited consensus forecast of minus 20.

The indicator of the current economic situation climbed to minus 41.4 from minus 43.0.

In Germany, the ZEW economic sentiment indicator improved to minus 10.2 from minus 17.2, beating expectations of a deterioration to minus 19.8. However, the current situation index worsened to minus 77.8 from minus 73.7, slightly below consensus expectations.

ZEW President Achim Wambach said: "Weak industrial production, rising energy prices and an inflation rate that exceeds the two-percent mark continue to burden the German economy. There is cautious hope for a potential recovery in the second half of 2026, provided that the Middle East conflict eases and the government's economic stimulus measures are having an effect."

Meanwhile in Germany, the EU's largest economy, consumer price inflation accelerated in April, as higher energy costs pushed up prices. The annual inflation rate rose to 2.9% from 2.7% in March, while prices increased 0.6% on-month following a 1.1% rise in March.

On a harmonised basis, annual inflation also accelerated to 2.9% from 2.8%, with monthly prices up 0.5%. The figures were in line with preliminary estimates published in late April.

The Swiss franc was little changed against the dollar at USD1.2811 from USD1.2835 on Monday.

In Switzerland, producer prices rose on a monthly basis in April amid higher energy costs, while the annual decline in prices slowed. The producer and import price index fell 2.0% on-year in April, easing from a 2.7% fall in March.

The producer price index declined 2.4% on-year, unchanged from March, while the import price index fell 1.0%, slowing from a 3.2% drop.

The Federal Statistical Office said import prices were higher compared with March, particularly for petroleum products, crude oil and natural gas, as well as metals and semi-finished metal products, and computers and peripheral equipment.

Against the yen, the dollar rose to JPY157.55 from JPY157.12.

Japanese household spending fell more sharply than expected in March. The Statistics Bureau of Japan said average consumption expenditure for households of two or more people declined 2.9% year-on-year in real terms, following a 1.8% drop in February. The fall exceeded the FXStreet-cited consensus forecast of a 1.3% decline.

Versus the Australian dollar, the greenback was steady at AUD1.3805, unchanged from Monday.

In Australia, business confidence improved slightly in April, according to National Australia Bank. The NAB business confidence index rose five points to minus 24 from minus 29 in March, supported by gains in retail, construction, and recreation and personal services.

However, the business conditions index fell three points to plus three, marking its fourth consecutive monthly decline.

Against the Canadian dollar, the US currency fell to CAD1.3707 from CAD1.3669.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UPDATE: Third minister quits as UK PM Starmer's grip on power slips

2026-05-12T13:16:09Z

A third UK minister has resigned from the government, criticising Prime Minister Keir Starmer for a lack of "bold, radical action" as she urged him to quit.

Alex Davies-Jones announced she was stepping down as victims minister, following Jess Phillips and Miatta Fahnbulleh out of the door.

Their exit piles significant pressure on the beleaguered Labour leader, who vowed to fight on at Tuesday's Cabinet meeting.

At least 82 out of Labour's 403 MPs have now demanded Starmer's departure after the party's electoral mauling last week.

In numerical terms, this is the threshold needed to trigger a leadership contest – but on the important condition that they all line up behind the same candidate, which is not the case at the moment.

In her resignation letter, Davies-Jones wrote: "It has been the honour of my life to serve His Majesty's Government as the Minister for Victims and Tackling Violence Against Women and Girls.

"I have been proud to deliver some monumental changes which will help save lives and shift the dial on the conversation.

"However, we have needed to do more and therefore it is with a very heavy heart that I feel I have no choice but to resign. The scale of the electoral defeats at the Senedd Cymru and across the UK have been catastrophic.

"The country has spoken and we must listen."

She added: "I know you to be a good and honest man. But in my heart are my constituents, the victims I have had the honour of working with every day, including the Hillsborough victims and their families, and all those who demand better of us."

It came shortly after Phillips stood down as safeguarding minister, denouncing the prime minister's failure to be "bold".

By Sophie Wingate and Nina Lloyd, Press Association Political Staff

Press Association: News

source: PA

Germany's top court rules on class action truck cartel lawsuit

2026-05-12T13:05:34Z

Germany's top court on Tuesday ruled that claims for damages arising from antitrust violations may in principle be bundled in class-action lawsuits filed by debt collection agencies, in a case involving inflated prices for lorries.

However, the Federal Court of Justice, BGH, also said that if the bundling makes it impossible for the courts to provide effective legal protection, a split into multiple proceedings may be required.

The case involves a multimillion-euro damages lawsuit brought by buyers of lorries after the EU fined major manufacturers for illegal pricing agreements.

The European Commission imposed fines of nearly EUR4 billion on the truck manufacturers DAF, Daimler, Iveco Group NV, Scania, and Volvo/Renault for exchanging sales prices from 1997 to 2011. MAN was exempted from penalties as a key witness.

The commission left open whether buyers had suffered damages as a result of the cartel, and the truck manufacturers dispute that they did.

The buyers of approximately 70,000 trucks allegedly sold at inflated prices are demanding around EUR500 million in damages from MAN, Daimler, Iveco, and Volvo/Renault.

They have assigned their claims to the debt collection and legal services provider Financialright Claims, which is acting as the sole plaintiff and will receive a 33% commission if the case is successful.

The lawsuit had failed in the first instance in 2020 at the Munich Regional Court.

However, in March 2024, the Higher Regional Court came to a different conclusion on appeal. The defendant truck manufacturers challenged the decision, bringing the case to Germany's top civil court.

The BGH has now overturned the appeal trial's ruling and referred the case back to Munich for a retrial and a new decision. Among other things, the Higher Regional Court must examine whether the assignments made by the lorry buyers are potentially void due to a conflict of interest with the litigation financier.

The BGH also said Financialright Claims had combined a very large number of legally and factually complex claims in a disorganized manner, making it unrealistic for a single court panel to deal with the entire case within a reasonable timeframe.

Following the ruling, Daimler Truck Holding AG said it would continue to strongly contest the claims and maintained that customers had not suffered any financial losses.

By Jacqueline Melcher

source: dpa

German financial watchdog worried by high share prices amid Iran war

2026-05-12T13:01:04Z

Germany's financial regulator has sounded the alarm over high stock prices amid global crises such as the war with Iran.

The potential for sudden market and price corrections remains high, said Mark Branson, president of the German Financial Supervisory Authority, BaFin, on Tuesday.

"Price movements do not appear to reflect the high risks," he warned.

The benchmark German index, the DAX, is trading just a few percentage points below its January high, while the New York-based S&P 500 is at a record high, up 8% since the start of the year.

Risk premiums on high-yield bonds are as low as at the start of the year, Branson explained. "Everything points to an optimistic mood on the markets," he said.

Viewed objectively, however, the economic situation has not improved since the start of 2026, said Branson. "The markets are also moving in a very uniform manner. They know only two modes, with little differentiation between them: risk-on or risk-off."

In Germany, risks in the financial system are rising, as the poor economic climate could lead to an increase in loan defaults.

The BaFin president also referred to unresolved geopolitical conflicts, without specifically mentioning the war in Iran. "Market participants seem to firmly believe that political turbulence is always reversible," Branson said.

source: dpa

US President Donald Trump announces talks with "failed" Cuba

2026-05-12T12:54:53Z

President Donald Trump on Tuesday announced talks with Cuba, which has been crippled by a US fuel blockade in the wake of Washington's capture of key regional ally Nicolas Maduro.

In a post on Truth Social, Trump described the communist-ruled island as "a failed country," adding: "Cuba is asking for help, and we are going to talk!!!" He did not provide details.

There is growing speculation in Washington that Trump is seeking to overturn the Cuban government as part of a drive to increase US dominance in the Caribbean and Latin America.

Earlier this month, Trump said the US would be "taking over" the Caribbean island off the Florida coast "almost immediately."

He has also said following the US military operation to depose Venezuela's longtime leader Maduro that Cuba will be next.

The communist island has been in a standoff with successive US administrations since the 1960s and Florida, only around 90 miles, 145 kilometres, away, hosts a large, politically influential Cuban exile community.

Venezuela was a diplomatic and economic lifeline for impoverished Cuba and the fall of Maduro has left the island even more isolated.

Oil producer Venezuela was the main source of fuel for Cuba and the shutting down of the supply route by the US is provoking frequent power cuts.

On May 1, Trump announced new economic sanctions targeting key sections of the Cuban economy.

Cuban Foreign Minister Bruno Rodriguez called this "collective punishment" and "unilateral coercive measures."

source: AFP

Jess Phillips quits UK government adding pressure on PM Starmer to go

2026-05-12T12:52:19Z

A prominent UK minister has resigned from Keir Starmer's government, piling pressure on the embattled Labour leader to quit after he vowed to fight on.

Safeguarding minister Jess Phillips became the second minister to stand down, criticising the UK prime minister's failure to be "bold".

At least 81 out of Labour's 403 MPs have now demanded Starmer's departure after the party's electoral mauling last week.

Starmer told his Cabinet he would continue governing and several senior ministers emerged from the meeting rallying around him.

In her resignation statement, Birmingham Yardley MP Phillips said any real action by Starmer to tackle violence against women and girls came "in light of catastrophic mistakes".

In her letter shared to X by Sky News, she wrote: "I think you are a good man fundamentally, who cares about the right things however I have seen first-hand how that is not enough.

"The desire not to have an argument means we rarely make an argument, leaving opportunities for progress stalled and delayed."

She said delays to proposals aimed at preventing children from taking explicit images of themselves online were an example of "incremental change. Nothing bold about it".

Phillips continued: "I know you care deeply, but deeds, not words are what matter. I'm not sure we are grasping this rare opportunity with the gusto that's needed and I cannot keep waiting around for a crisis to push for faster progress.

"Decency is vital, calm curiosity is also needed, but so too are fight and drive required. Have a row, push back, make arguments, bring people along. Standing up and being counted can't always be workshopped. Politics is as much about feelings as policy, especially at the moment…

"I'm not seeing the change I think I, and the country expect, and so cannot continue to serve as a minister under the current leadership."

It came after the prime minister defied calls for him to vacate Downing Street, telling his Cabinet the country "expects us to get on with governing" and "that is what I am doing".

He avoided being directly challenged as he declined to discuss his leadership during Tuesday's gathering or meet critics individually afterwards, the Press Association understands.

Starmer said he would only speak to ministers one-on-one about his fate in the wake of his party's electoral mauling, but did not do so once Cabinet concluded, according to sources.

A number of loyal ministers, including Technology Secretary Liz Kendall, Business Secretary Peter Kyle, Work & Pensions Secretary Pat McFadden and Housing Secretary Steve Reed, faced the cameras to voice their support for the prime minister.

However, other Cabinet ministers – including those thought to have told Starmer to quit – left the meeting without speaking to reporters, pointing to splits in his top team over his future.

Health Secretary Wes Streeting, seen as a possible successor, ignored journalists shouting questions at him as he left No 10.

Phillips' departure followed the resignation on Tuesday morning of Miatta Fahnbulleh as housing, communities & local government minister.

Fahnbulleh, seen as a close ally of Energy Secretary Ed Miliband, told the prime minister "to do the right thing for the country and the party, and set a timetable for an orderly transition" as the public had lost trust in him because of issues such as the scrapping of the winter fuel payment.

By Sophie Wingate and Nina Lloyd, Press Association Political Staff

Press Association: News

source: PA

High energy prices push annual US CPI inflation to 3.8% in April

2026-05-12T12:42:06Z

US consumer price index inflation accelerated a notch more than expected amid higher energy prices, data published by the US Bureau of Labor Statistics showed Tuesday.

Annual CPI inflation sped up to 3.8% in April from 3.3% in March, above FXStreet-cited expectations of a 3.7% rise.

Monthly, US consumer prices were up 0.6% in April, in line with consensus and following a 0.9% uptick in March.

Notably, energy costs surged 29.2% on-year in April. Monthly, energy costs were up 5.6% in April after a 21.3% jump in March.

On February 28, the US and Israel launched a war against Iran which sharply sent energy prices higher.

Excluding food and energy costs, US inflation was up 2.8% on-year in April, up from 2.6% in March and higher than an expected 2.7%.

Monthly, US consumer prices less food and energy were up 0.4% in April, higher than an anticipated 0.3% and up from 0.2% in March.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

COMMODITIES: Oil extends gains as ceasefire remains on "life support"

2026-05-12T11:46:06Z

Oil prices rose on Tuesday as hopes for a peace deal faded, with the US and Iran showing no signs of narrowing their differences.

Spot Brent crude was trading at USD107.33 a barrel around midday on Tuesday, up from USD103.97 on Monday. Spot West Texas Intermediate firmed to USD101.14 a barrel from USD97.96.

The oil market on Tuesday extended gains as concerns about the US-Iran ceasefire intensified following US President Donald Trump's rejection of Tehran's latest counterproposal, Kudotrade analyst Konstantinos Chrysikos said.

US President Donald Trump on Monday warned that the ceasefire in the Middle East war was on "massive life support".

"With diplomatic progress stalling, fears of a re-escalation could keep the market on edge," Chrysikos said, with the extended shutdown of the the Strait of Hormuz continuing to disrupt global flows of crude.

A prolonged blockade could make normalisation more difficult and push it toward 2027, Kudotrade's analyst said.

"The outlook remains skewed to the upside while risks of an escalation remain persistent," Chrysikos said, adding: "Supply deficits are likely to keep prices elevated, with volatility remaining high around any diplomatic headline."

The benchmark TTF gas futures contract for delivery in one month rose to EUR46.81 per megawatt hour on Tuesday from EUR45.42 on Monday.

Spot gold was quoted at USD4,700.33 an ounce on Tuesday, up from USD4,667.84 at the same time on Monday. Silver climbed to USD83.62 an ounce from USD80.44.

The yellow metal regained some lost ground on Tuesday as it hovered around the USD4,700 an ounce level.

Gold has fallen around 12% since the Iran conflict began late in February, a counterintuitive move for an asset widely held as a crisis hedge, ING analyst Ewa Manthey said.

"Higher oil prices push inflation up, keep central banks on hold and strengthen the dollar, all of which weigh on gold," Manthey said, adding: "High liquidity also makes it a source of funds when investors need to cover losses elsewhere."

"We saw the same dynamic in 2022 after Russia invaded Ukraine. After an initial rally, gold came under pressure as the inflationary impact of higher energy prices pushed yields and the dollar higher," ING analyst said.

But central bank demand continues to underpin bullion, Manthey noted, noting that China's central bank returned to buying in April, adding 8.1 tonnes - the most since December 2024 - extending its buying streak to 15 consecutive months and lifting total holdings to around 2,305 tonnes.

Investors are awaiting the US consumer price inflation data for April due this afternoon.

Elsewhere, platinum was priced at USD2,085.70 an ounce on Tuesday, up from USD2,044.50 on Monday. Palladium improved to USD1,482.03 an ounce from USD1,480.48.

In base metals, the copper price jumped to USD13,920.00 per tonne from USD13,535.50, and aluminium gained to USD3,581.50 from USD3,502.50.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

KDDI annual results beat post-probe guidance as profit rises

2026-05-12T11:34:51Z

KDDI Corp on Tuesday reported a lower annual dividend due to last year's stock split, along with single-digit percentage growth in revenue and profit.

The Tokyo-based telecommunications firm, which in late March cut its full-year guidance after an investigation found false transactions and revenue at two subsidiaries, reported JPY6.072 trillion, about USD102.29 billion, in operating revenue for the year ended March 31.

This was up 4.1% from JPY5.836 trillion for the year before, and above its JPY6.060 trillion revised forecast.

KDDI said its operating income rose 1.1% on-year to JPY1.099 trillion from JPY1.087 trillion, also above the revised guidance of JPY1.090 trillion. Pretax profit rose 4.1% to JPY1.118 trillion.

Attributable profit climbed 7.9% to JPY707.11 billion from JPY655.42 billion. Basic earnings per share rose 13% to JPY183.59 from JPY161.86, beating the JPY181.23 forecast.

KDDI noted that it conducted a two-for-one stock split on April 1, the beginning of financial 2026, but that basic EPS was "calculated as if the stock split had been conducted at the beginning of the previous fiscal year."

KDDI's reported dividends reflect the actual pre-stock split figures, with the final dividend down to JPY40.00 per share from JPY75.00, and the total down to JPY80.00 from JPY145.00.

For the current financial year, KDDI said it expects a JPY42.00 final dividend and a JPY84.00 total dividend.

KDDI also expects operating revenue to increase 5.6% on-year to JPY6.410 trillion, and adjusted attributable profit to rise 2.7% to JPY731.00 billion with adjusted basic EPS of JPY196.29. Adjusted profit excludes extraordinary costs, large-scale costs, and one-time gains and losses resulting from portfolio restructuring, the firm said.

KDDI shares closed up 0.4% at JPY2,529.50 on Tuesday in Tokyo.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: FTSE 100 slips as Starmer turmoil lifts yields

2026-05-12T11:18:21Z

Stock prices in London were lower by midday Tuesday, as political turmoil in Westminster and renewed tensions in the Middle East weighed on sentiment and pushed bond yields sharply higher.

The FTSE 100 index was down 42.88 points, 0.4%, at 10,226.55. The FTSE 250 was down 266.82 points, 1.2%, at 22,541.04, and the AIM all-share was down 6.35 points, 0.8%, at 816.06.

The Cboe UK 100 was down 0.5% at 1,016.91, the Cboe UK 250 was down 1.5% at 19,498.59, and the Cboe small companies was marginally higher at 18,343.86.

In European equities on Tuesday, the CAC 40 in Paris was down 0.6%, while the DAX 40 in Frankfurt was down 1.0%.

In the UK, political uncertainty rattled bond markets. Yields on 30-year UK government bonds climbed to their highest level since 1998, as pressure intensified on Prime Minister Keir Starmer to step down.

British government bonds are underperforming their European counterparts across the curve, reflecting concerns about the UK's vulnerability to an energy shock as oil prices remain elevated, alongside mounting political risk.

The yield on the UK 10-year gilt was quoted at 5.093%, the highest level since 2008, up 0.092 percentage points from 5.002% at the previous close.

The day's high stood at 5.130%, before easing slightly after ministers loyal to Starmer insisted that "no one challenged" the prime minister at a crucial cabinet meeting.

Starmer held the high-stakes meeting on Tuesday morning as he fights to stay in office. Allies publicly backed him as they left Downing Street, saying he had vowed to "get on with governing" and had told his top team that a leadership contest had not been triggered.

In chaotic scenes afterwards, several cabinet ministers spoke to reporters, though Health Secretary Wes Streeting, seen as a potential leadership rival, ignored questions shouted by journalists.

An influential group of Labour MPs has called for a renewal of the party's economic strategy to create a "more active state" and prioritise "long-term investment" over "short-term crisis management".

In a joint introduction to a collection of essays published on Monday, former Cabinet minister Louise Haigh and Yuan Yang, who is among at least 79 Labour MPs who have called on the prime minister to step down, said politics must offer "more than better management of decline".

They said the collection would explore questions such as "how to build a tax system that is fairer, simpler, and better aligned with modern sources of wealth and economic activity" and how "social investment and market reforms can reduce the cost of living".

Meanwhile, 30-year yields, where fiscal and political concerns are most clearly expressed, have reached levels not seen in nearly three decades.

The pound was also hit by Westminster's political instability. Sterling was quoted at USD1.3540 midday Tuesday, compared to USD1.3651 on Monday.

Against the euro, sterling fell to EUR1.1528 from EUR1.1584 a day earlier. The euro stood at USD1.1745, against USD1.1782, while the dollar traded at JPY157.55, up from JPY157.01.

Across the Atlantic, US President Donald Trump said the Iran ceasefire was on "life support" and that he was considering restarting US naval escorts through the Strait of Hormuz as he pushes for what he described as "complete victory" in the conflict.

Amid mounting pressure over the economic impact of the war, Trump said Iran's rejection of Washington's latest demands had left the already fragile ceasefire "unbelievably weak".

He told Fox News he was weighing a revival of Operation Freedom, a previous US effort to escort commercial shipping through Hormuz, though no final decision has been taken.

Iranian parliamentary speaker Mohammad Bagher Ghalibaf responded that Iran was prepared "for any eventuality".

Brent oil was trading at USD107.84 a barrel early Tuesday, up from USD103.70 late Monday.

Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 down 0.3% and the Nasdaq Composite down 0.7%.

Investors were awaiting key US data, with the ADP employment change four-week average due at 1315 BST, most recently up 39,250, and US consumer price inflation for April due at 1330 BST. The consensus expects CPI to rise 3.7% year-on-year, up from 3.3% in March.

The yield on the US 10-year Treasury was quoted at 4.43%, widening from 4.39%. The yield on the US 30-year Treasury rose to 5.00% from 4.97%.

Political risk spilled over into equity markets, with UK banks among the biggest fallers in the FTSE 100. Barclays dropped 3.4%, NatWest fell 3.0%, and Lloyds Banking Group was down 3.3%.

However, Vodafone Group was at the bottom of the index, despite hailing a strong growth outlook as sales and earnings increased. The Berkshire-based telecommunications provider swung to a pretax profit of EUR1.86 billion in the financial year to March from a EUR1.48 billion loss the year prior.

Revenue grew 8.0% to EUR40.46 billion from EUR37.45 billion, driven by strong service revenue growth and the consolidation of Three UK, partially offset by foreign exchange movements.

Intertek topped the blue-chip index after suitor EQT Fund Management Sarl made what it described as its "final possible offer" for the assurance, inspection, product testing and certification firm.

EQT's final proposal values Intertek at GBP60 per share in cash, or GBP61.077 including a final dividend, implying a total valuation of GBP9.40 billion. The proposal follows a GBP58.00 per share bid made on Friday, which valued the company at around GBP8.93 billion.

Intertek said it is reviewing the final proposal with its advisers and will make a further announcement in due course.

On the FTSE 250, Greggs rose 4.3% after reporting higher sales in the opening weeks of 2026 and maintaining full-year expectations.

The Newcastle upon Tyne-based bakery chain said total sales in the first 19 weeks of the year rose 7.5% to GBP800 million from GBP744 million, while like-for-like sales increased 2.5%, improving to 3.3% growth in the most recent 10 weeks. It added that profit performance has been supported by operational cost control and said its outlook for cost inflation and full-year expectations remains unchanged.

At the other end of the index, Wickes Group shares plunged 10% after reporting mixed trading as wet weather weighed on retail demand at the start of 2026.

The home improvement retailer said revenue in the 17 weeks to April 25 rose 1.3% to GBP537 million, though like-for-like sales fell 0.1%, with weaker outdoor project demand offsetting growth in Design & Installation. It added that it remains comfortable with full-year market expectations for adjusted pretax profit despite continued uncertainty in the trading environment.

In the eurozone, investor sentiment improved more than expected in May, according to ZEW survey data.

The ZEW indicator of economic sentiment for the eurozone rose by 11.3 points to minus 9.1 in May from minus 20.4 in April, beating the FXStreet-cited consensus for a smaller improvement to minus 20. The current economic situation index climbed to minus 41.4 from minus 43.0.

In Germany, the ZEW economic sentiment indicator improved to minus 10.2 in May from minus 17.2 in April, beating expectations of a deterioration to minus 19.8. However, the current situation index worsened to minus 77.8 from minus 73.7, slightly worse than consensus forecasts.

Gold was quoted at USD4,692.63 an ounce, down from USD4,733.27 on Monday.

Still to come on Tuesday's economic calendar are US consumer price index inflation, the Redbook index, the monthly budget statement and ADP employment change figures.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UK MPs call for more active state in renewal of economic strategy

2026-05-12T11:07:44Z

An influential group of Labour MPs has called for a renewal of the party's economic strategy to create a "more active state" and prioritise "long-term investment" over "short-term crisis management".

As Prime Minister Keir Starmer faces growing pressure to resign, the soft-left Tribune group questioned whether the UK's budget rules were "fit for long-term renewal".

Attention should also be focused on "how to support stronger, broader-based growth by creating a stronger, more active state that is capable of stabilising inflation, generating investment and sparking dynamism," they said.

In her own contribution to the collection, Haigh wrote: "Faced with the dual mandate of maintaining fiscal control and supporting economic growth, the institution defaults toward caution, prioritising near-term debt dynamics over longer-term economic outcomes."

The ex-transport secretary also called for capital gains tax to be brought closer to income tax rates as the existing difference "creates incentives for individuals to shift income into lower-taxed forms, effectively lowering the rates they pay on money they earn".

Alignment should come with measures such as inflation indexation to ensure that "genuine investment returns are not unduly penalised", she said.

She said funding for social care and other social services should be nationalised and distributed "more fairly" through a national funding formula, "reducing reliance on regressive local tax bases".

Council tax should be cut and "refocused" to return to funding genuinely local services while stamp duty should be removed to avoid discouraging people from moving homes and leaving some properties not used in the way that best suits people's needs, the MP said.

Yang said: "The cost-of-living crisis and our low growth are two symptoms of the same problem: an economic structure that hasn't been working for a long time.

"Families are facing stagnant incomes and persistently high costs, and fiscal subsidies alone will not solve that.

"We need to take on the root causes of those costs – from reforming energy pricing, to tackling housing, transport and food prices – while building a more active state that can stabilise prices and support investment.

"Strengthening household resilience is essential not just for fairness, but for growth, because an economy where people feel secure is one in which they can be productive."

By Press Association Political Staff

Press Association: News

source: PA

French parliament summons TotalEnergies CEO over war "superprofits"

2026-05-12T10:55:28Z

Patrick Pouyanne, head of energy firm TotalEnergies SE, will face a grilling next month over his group's massive profits during the Middle East war from the French parliament's finance committee, the committee's head said Tuesday.

The company is among several oil and gas majors facing growing calls for a windfall tax to help offset the pain of higher fuel prices on consumers.

"With Total's tax situation back in the news, I have decided to call Patrick Pouyanne to appear before the Finance Committee. This hearing will take place on 17 June at 10:00 am," the commission's president, Eric Coquerel of the hard-left France Unbowed party, posted on X.

"Today, the issue of Total's taxes – which in 2025 saw it pay zero euros in corporation tax – and the question we are asking... regarding price caps are topical", Coquerel separately told AFP.

He said he had received a "positive" response from Pouyanne, who has appeared at several parliamentary and senate hearings since the 2022 energy crisis sparked by the war in Ukraine, which helped stack up record profits for multinational oil firms.

This year, TotalEnergies and a clutch of other major energy firms saw their first-quarter profits soar, in its case by 51% to USD5.8 billion, prompting calls for more taxes on their outsize gains.

Coquerel said that Pouyanne "will no doubt face some rather difficult questions, but I believe he is expecting them."

TotalEnergies has implemented a cap on fuel prices at petrol stations in France and announced special offers for May bank holidays.

But Pouyanne said last week that such "socially responsible decisions" might be reversed if extra charges were brought to bear on its French operations.

TotalEnergies shares rose 1.4% to EUR77.99 each on Tuesday afternoon in Paris.

source: AFP

eBay "rejects" GameStop's USD56 billion takeover bid

2026-05-12T10:43:15Z

Online marketplace eBay Inc said Tuesday that it had rebuffed a takeover offer from video game retailer GameStop Corp that valued the company at USD56 billion, calling the unsolicited proposal "neither credible nor attractive".

Grapevine, Texas-based GameStop, well known among American gamers but a much smaller company than San Jose, California-based eBay, made its stock-and-cash deal in early May.

Analysts quickly expressed doubts that it would be able to finance the deal, though GameStop Chief Executive Officer Ryan Cohen said in a television interview that "we have the ability to issue stock to get the deal done".

GameStop has roughly USD9.4 billion in available assets and said it had secured a commitment letter from Canadian investment firm TD Securities for USD20 billion in financing.

Its offer valued eBay at USD125 per share, but in a sign that investors were sceptical of its success, eBay shares closed at just USD108.13 on the Nasdaq composite on Monday.

eBay shares were 1.1% lower in pre-market trading at USD107.00 each on Tuesday morning in New York.

source: AFP

UPDATE: Cabinet ministers back UK PM Starmer after he vows to fight on

2026-05-12T10:27:00Z

Cabinet ministers came out of their meeting backing Keir Starmer, after the UK prime minister vowed to fight on despite mounting calls for him to quit.

Four senior ministers spoke out in support of the beleaguered Labour leader after he told his gathered Cabinet he would continue governing.

However, other Cabinet ministers – including those thought to have told Starmer to quit – left the meeting without speaking to reporters, pointing to splits in his top team over his future.

Technology Secretary Liz Kendall, Business Secretary Peter Kyle, Work & Pensions Secretary Pat McFadden and Housing Secretary Steve Reed stood by the Labour leader as they faced the cameras on Downing Street after the Cabinet meeting.

Kendall said: "This government will do what we were elected to do which is serve the British people. The prime minister has my full support in this.

"Let me just say this; there is a process to challenge the leader, nobody has made that challenge and what people would expect me to do is to focus on how we can grow the economy, tackle the cost of living and give them a better life."

McFadden said nobody publicly challenged Starmer to go at the Cabinet meeting, Kyle said Starmer was showing "really steadfast leadership," and Reed said the prime minister had his "full support".

Health Secretary Wes Streeting, seen as a possible successor, ignored journalists shouting questions at him as he left No 10.

Starmer has dug in, despite the first ministerial resignation from his government and a growing number of Labour MPs urging him to set a timetable for his departure.

According to Downing Street, the prime minister told his Cabinet: "As I said yesterday, I take responsibility for these election results and I take responsibility for delivering the change we promised.

"The past 48 hours have been destabilising for government and that has a real economic cost for our country and for families. The Labour Party has a process for challenging a leader and that has not been triggered.

"The country expects us to get on with governing. That is what I am doing and what we must do as a Cabinet."

His woes deepened minutes before the meeting, when housing, communities and local government minister Miatta Fahnbulleh told the prime minister "to do the right thing for the country and the party and set a timetable for an orderly transition" as the public had lost trust in him because of issues such as the scrapping of the winter fuel payment.

Fahnbulleh is seen as a close ally of Energy Secretary Ed Miliband, who reportedly privately told Starmer to consider stepping down last week.

Home Secretary Shabana Mahmood and Foreign Secretary Yvette Cooper are also reportedly among those to have had similar conversations with him.

Earlier on Tuesday, one of Starmer's closest aides declined to say whether he would lead his party into the next general election.

Cabinet minister Darren Jones, the Chief Secretary to the prime minister, said: "I'm not going to get ahead of any decision the PM may or may not take."

The cost of long-term government borrowing surged to a fresh 28-year high and the pound weakened on Tuesday morning amid the uncertainty about the prime minister's future, although market moves eased slightly after the public show of support following Cabinet.

Meanwhile, Chancellor Rachel Reeves pulled out of an event she was due to speak at on Tuesday morning in the City of London.

By Sophie Wingate, Christopher McKeon and Nina Lloyd, Press Association

Press Association: News

source: PA

Eurozone investor sentiment better than anticipated in May

2026-05-12T09:29:04Z

Investor sentiment and the economic situation index in the eurozone was better than expected in May, survey data from ZEW showed Tuesday.

The ZEW indicator of economic sentiment for the eurozone improved by 11.3 points to minus 9.1 points in May from minus 20.4 points in April. It was much better than the FXStreet-cited consensus of a soft amelioration to minus 20 points in May.

The indicator of the current economic situation climbed to minus 41.4 points in May from minus 43.0 points in April.

Meanwhile, the ZEW indicator of economic sentiment in Germany rose to minus 10.2 points in May from minus 17.2 points in April, beating the consensus of a deterioration to minus 19.8 points in May.

The indicator of the current situation in Germany worsened to minus 77.8 points in May from minus 73.7 points in April, worse than consensus of a milder deterioration to minus 77.5 points in May.

The financial market survey by ZEW was conducted between May 4 and 11, with 188 analysts and institutional investors participating.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

UK PM insists will continue governing despite mounting calls to quit

2026-05-12T09:11:29Z

Keir Starmer is defying mounting calls for him to quit, telling a meeting of his Cabinet that the country "expects us to get on with governing" and "that is what I am doing".

The UK prime minister's woes deepened on Tuesday morning as the first minister resigned from his government urging him to go, and as the number of Labour MPs telling him to set out a timetable for his departure grew to 75.

According to Downing Street, Starmer told his Cabinet: "As I said yesterday, I take responsibility for these election results and I take responsibility for delivering the change we promised.

"The past 48 hours have been destabilising for government and that has a real economic cost for our country and for families.

"The Labour Party has a process for challenging a leader and that has not been triggered. The country expects us to get on with governing. That is what I am doing and what we must do as a Cabinet."

The meeting was expected to be fraught, with some ministers said to be joining calls for the prime minister to go.

Earlier, housing, communities & local government minister Miatta Fahnbulleh told the prime minister "to do the right thing for the country and the party and set a timetable for an orderly transition" as the public had lost trust in him because of issues such as the scrapping of the winter fuel payment.

And one of Starmer's closest aides declined to say whether he would lead his party into the next general election.

Cabinet minister Darren Jones, the Chief Secretary to the prime minister, said: "I'm not going to get ahead of any decision the PM may or may not take."

By Sophie Wingate, Press Association Deputy Political Editor

Press Association: News

source: PA

Iran chief negotiator says US must accept proposal or face "failure"

2026-05-12T08:49:11Z

Iran's chief negotiator on Tuesday issued an ultimatum to the US to accept the conditions in Tehran's 14-point proposal for peace in the Middle East war or face "failure".

The defiant message came after US President Donald Trump rejected the latest counteroffer from Iran and said that a fragile ceasefire in place since April 8 was on "life support".

But Mohammad Bagher Ghalibaf said Washington had to accept Tehran's "rights" if it wanted to end more than two months of conflict, as peace talks remain deadlocked after an initial round failed to produce a breakthrough last month.

"There is no alternative but to accept the rights of the Iranian people as laid out in the 14-point proposal. Any other approach will be completely inconclusive; nothing but one failure after another," said Ghalibaf in a post on X.

"The longer they drag their feet, the more American taxpayers will pay for it."

Iran has refused to back down in its war with Washington, with military officials warning they are prepared to respond to any renewed US attack.

It has choked traffic through the key Strait of Hormuz trade route, rattling global markets and giving it vital leverage, while the US has imposed its own naval blockade on Iranian ports.

Details of the latest US proposal remain limited, though media reports say it involves a one-page memorandum of understanding aimed at ending the fighting and establishing a framework for negotiations on Iran's nuclear programme.

Iran's foreign ministry said its response called for ending the war on all fronts, including Lebanon, halting the US naval blockade on Iranian ports and securing the release of Iranian assets frozen abroad under longstanding sanctions.

It did not elaborate on what Iran would offer in return.

On Tuesday, the spokesman for Iran's parliamentary national security commission said lawmakers would consider the possibility of enriching uranium to weapons-grade levels if conflict resumed.

"One of Iran's options in the event of another attack could be 90% enrichment. We will examine it in parliament," Ebrahim Rezaei wrote in a post on X.

Tehran possesses a significant stockpile of uranium enriched to 60% purity, with roughly 90% required for a nuclear weapon.

Iran's stockpile of highly enriched uranium remains a key sticking point in negotiations with the US, which insists the material must be transferred out of the country.

Iran has so far refused to move its enriched uranium stockpile abroad and insists on its right to the peaceful use of nuclear energy, though it has said the level of enrichment remains "negotiable".

source: AFP

UK junior minister resigns, calls on PM to set out departure plan

2026-05-12T08:46:41Z

The first UK minister has resigned from Keir Starmer's government, piling pressure on the beleaguered Labour leader to quit.

Housing, Communities & Local Government minister Miatta Fahnbulleh told the prime minister "to do the right thing for the country and the Party and set a timetable for an orderly transition".

Fahnbulleh is seen as a close ally of Energy Secretary Ed Miliband, who reportedly told Starmer to consider stepping down last week.

Her resignation comes as Starmer faces a fraught Cabinet meeting, with some ministers said to be urging the prime minister to go.

In a statement posted on X, Fahnbulleh said: "It has been a privilege to play my part in a government that is working hard at every level to deliver the change that our country needs.

"Whilst progress has been made, we have not acted with the vision, pace and ambition that our mandate for change demands of us. Nor have we governed as a Labour Party clear about our values and strong in our convictions.

"Mistakes such as the winter fuel payment and cuts to the support provided to disabled people have left too many of my constituents doubting our mission.

"And the message on the doorstep was clear: you, Prime Minister, have lost the trust and confidence of the public.

"Our country faces enormous challenges and people are crying out for the scale of change that this requires.

"The public does not believe that you can lead this change – and nor do I.

"Therefore, I urge you to do the right thing for the country and the Party and set a timetable for an orderly transition so that a new team can deliver the change we promised the country."

By Sophie Wingate, Press Association Deputy Political Editor

Press Association: News

source: PA

Wizz Air ups profit view; turns to promotional fares to sustain demand

2026-05-12T08:23:21Z

Wizz Air Holdings PLC on Tuesday improved its profit guidance, as it reported it "proactively pivoted" capacity amid the Middle East conflict.

The Budapest-based budget carrier expects to report a "breakeven to slightly positive net profit result" for the year that ended March 31. Back in March, it said it expected net profit below guidance issued in January, where it put the range between a EUR25 million loss and a EUR25 million profit.

The airline said on Tuesday: "The net income improvement versus previous guidance resulted from stronger underlying revenue and a well-hedged macroeconomic mix. Wizz ended the financial year with a strong liquidity position, reporting a total cash position of EUR2.1 billion.

"Looking forward, the conflict in the Middle East has introduced near-term uncertainty around fuel costs and customer demand."

Wizz Air said it is 70% hedged for its summer fuel needs, at around USD720 per metric tonne. It also hailed its fuel efficient fleet. It said it benefits from a "significant fuel burn advantage, with A321neos comprising 75% of our current fleet consuming 18% less fuel relative to the legacy aircraft technology".

A321neos are manufactured by Airbus SE.

"Current scheduled capacity for the first half of the year stands at around 51 million seats, up 28% year-on-year. Against this, we see the forward bookings with 44% currently sold, up 2 percentage points year-on-year, reflecting a positive response to the continuing development of our network. This includes adding capacity across our existing markets and opening new operating bases within the Wizz Air European footprint with significant bias towards leisure demand," Wizz Air added.

In order to "maintain this booking momentum", Wizz Air has used promotional fares to stoke demand in the first half of the new financial year, it said.

Chief Executive Officer Jozsef Varadi said: "While the industry faces the challenges of the conflict in the Middle East, we have proactively pivoted the affected capacity to our core markets and are seeing strong demand trends through the peak summer period across our network.

"Wizz Air's financial strength, including cash liquidity, hedge positions and our highly fuel-efficient fleet, continues to underpin our ability to grow our business with structural competitive advantages. As such, while we are mindful of the near-term geopolitical challenges, we remain excited by the growth potential inherent in our core markets and the fact that Wizz Air is well placed to further strengthen its leadership in the faster growing CEE region.''

Wizz Air shares fell 0.4% to 1,009.00 pence each in London on Tuesday morning.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON MARKET OPEN: Shares down as UK PM Starmer turmoil hits gilts

2026-05-12T08:19:55Z

Stock prices in London opened lower on Tuesday, with political turmoil in the UK and renewed tensions in the Middle East weighing on sentiment.

The FTSE 100 index opened down 46.69 points, 0.5%, at 10,222.59. The FTSE 250 was down 238.46 points, 1.1%, at 22,566.28, and the AIM all-share was down 5.11 points, 0.6%, at 817.30.

The Cboe UK 100 was down 0.5% at 1,016.94, the Cboe UK 250 was down 1.4% at 19,521.67, and the Cboe small companies was up 0.4% at 18,406.77.

In European equities on Tuesday, the CAC 40 in Paris was down 0.5%, while the DAX 40 in Frankfurt was down 0.7 %.

British government bonds are underperforming their European counterparts across the curve, reflecting concerns about the UK's exposure to an energy shock as oil prices remain elevated, as well as mounting political risk.

The yield on the UK 10-year gilt was quoted at 5.102%, the highest level since 2008, up 10 basis points from 5.002% at the previous close. The day's high stood at 5.115%.

Meanwhile, 30-year yields, where fiscal and political concerns are most clearly expressed, have reached levels not seen in nearly three decades.

Starmer is preparing to face his cabinet as he fights to remain in office. His party is in open revolt, and divisions have emerged within his cabinet over whether he should step down.

Home Secretary Shabana Mahmood has joined other ministers in calling for Starmer to set out a timetable for departure.

At least 72 Labour MPs have now urged him either to resign immediately or to announce a timeline for doing so. Senior minister Darren Jones dismissed speculation about a potential return of Manchester Mayor Andy Burnham as "fantasy politics", telling the BBC that discussions about "strategy" should take place "internally – as opposed to in public".

The pound weakened amid the political tensions. Sterling was quoted at USD1.3519 early Tuesday, lower than USD1.3651 at the London equities close on Monday. Against the euro, sterling fell to EUR1.1510 from EUR1.1584 a day prior.

The euro traded at USD1.1745 early Tuesday, lower than USD1.1782 late Monday. Against the yen, the dollar was quoted at JPY157.56, higher versus JPY157.01.

Political risk spilled over into equity markets, with UK banks among the biggest fallers in the FTSE 100. Barclays dropped 3.7%, NatWest fell 3.6%, and Lloyds Banking Group was down 3.1%.

In the US, President Donald Trump said the Iran ceasefire was on "life support" and that he was considering restarting US naval escorts through the Strait of Hormuz as he pushes for what he described as "complete victory" in the conflict.

Speaking amid mounting pressure over the war's economic impact, Trump said Iran's rejection of Washington's latest demands had left the already fragile ceasefire "unbelievably weak". He told Fox News he was weighing a revival of Operation Freedom, a previous US initiative to escort commercial shipping through Hormuz, although no final decision has been made.

Iranian parliamentary speaker Mohammad Bagher Ghalibaf responded by saying Iran was prepared "for any eventuality".

Brent oil was trading at USD106.35 a barrel early Tuesday, up from USD103.70 late Monday.

Trump also said he planned to suspend the federal gasoline tax as Americans grapple with surging fuel costs linked to the Iran conflict. Speaking at the White House, he said the measure would remain in place "till it's appropriate".

Back in London, Intertek Group topped the FTSE 100 leaderboard after suitor EQT Fund Management Sarl made what it described as its "final possible offer" for the assurance, inspection, product testing and certification firm.

EQT's final proposal values Intertek at GBP60 per share in cash, or GBP61.077 including a final dividend. Including the dividend, the offer values the company at GBP9.40 billion.

The proposal follows a GBP58.00 per share bid made on Friday, which valued Intertek at around GBP8.93 billion.

Intertek responded, saying it is reviewing the final proposal with its advisers and will make a further announcement in due course.

Vodafone fell 3.8% despite swinging to a pretax profit of EUR1.86 billion in the year ended March 31, from a EUR1.48 billion loss a year earlier, helped by higher revenue and the absence of impairment charges.

In financial 2025, Vodafone booked a EUR4.52 billion impairment charge, compared with none in financial 2026. Revenue rose 8.0% to EUR40.46 billion from EUR37.45 billion, driven by service revenue growth and the consolidation of Three UK, partly offset by foreign exchange movements.

Chief Executive Margherita Della Valle said: "After the transformation of the last three years, we are now a simpler company with a stronger growth outlook. Our strategic progress has generated good group service revenue momentum for the year, together with profit and cash flow at the upper end of our guidance range...We are now well set for mid-term growth."

On the FTSE 250, Greggs was among the top performers after reiterating that expectations for the full-year outcome remain unchanged.

The bakery chain said it continues to target around 120 net openings for the full year. In the first 19 weeks of 2026, like-for-like sales rose 2.5%, while total sales increased 7.5% to GBP800 million.

In Asia on Tuesday, the Nikkei 225 index in Tokyo ended 0.5% higher. In China, the Shanghai Composite closed down 0.3%, while the Hang Seng index in Hong Kong finished 0.2% lower. The S&P/ASX 200 in Sydney closed down 0.4%.

In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.2%, the S&P 500 up 0.2% and the Nasdaq Composite up 0.1%.

The yield on the US 10-year Treasury was quoted at 4.43%, widening from 4.39%. The yield on the US 30-year Treasury was quoted at 5.00%, widening from 4.97%.

Gold was quoted at USD4,702.77 an ounce early Tuesday, lower than USD4,733.27 on Monday.

Still to come on Tuesday's economic calendar, the eurozone and Germany will release ZEW economic sentiment surveys.

In the US, consumer price inflation, the Redbook index, the monthly budget statement and ADP employment change figures are due.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UK borrowing costs hit 28-year high on UK PM leadership uncertainty

2026-05-12T08:16:23Z

UK long-term borrowing costs have surged to a fresh 28-year high and the pound weakened as Prime Minister Keir Starmer's leadership comes under increasing pressure.

The yield on 30-year UK government bonds – also known as gilts – jumped as much as 13 basis points to 5.807% in Tuesday morning trading, reaching the highest level since 1998 as Starmer faced increasing calls from within his own party to quit.

The yield on 10-year gilts also rose back above 5%, lifting by 11 basis points to 5.11%, but remains below recent highs reported last month.

Gilt yields move counter to the value of the bonds, meaning their prices fall when yields rise.

Rising yields on these bonds mean it costs more for governments to borrow from financial markets.

The pound also weakened further amid the UK political instability while stocks on the London market dropped sharply on rising oil prices as the US remained in deadlock with Iran over a resolution to end the conflict.

Sterling fell 0.6% to USD1.352 and was 0.2% lower at EUR1.152.

The FTSE 100 Index dropped more than 1% in opening trade, later settling 0.5% lower at 10,216.15

The cost of crude continued to edge back up, standing 2% higher at just over USD106 a barrel.

Neil Wilson, Saxo UK's investor strategist, warned over further market volatility and a mounting gilt rout until leadership clarity is achieved.

He said: "We could see a blowout in longer-dated gilts if this turns into a dogfight – political, fiscal and inflationary risks will rise.

"Markets tend to dislike a lack of certainty over who runs a government; the fiscal position is already fragile and likely to become worse should a left-leaning ticket prioritise spending; and that this makes inflation stickier."

He added: "A leftwards lurch would raise hackles among bond vigilantes at a time when the fiscal position is already fragile, and risks are rising due to rising inflation from soaring energy prices and weaker growth outlook for the economy.

"In the event of a new leadership ticket there is a risk of additional government spending on cost-of-living measures, such as support for rising energy bills, increased minimum wage, benefit uprating and a rental freeze, among a range of potential help mechanisms.

"It would be a toxic combination for gilts – higher spending, lower growth and inflation becoming embedded."

By Holly Williams, Press Association Business Editor

Press Association: Finance

source: PA

UPDATE: Intertek suitor EQT makes GBP9.4 billion "final" bid proposal

2026-05-12T08:12:12Z

Intertek Group PLC on Tuesday said it is "reviewing" the latest takeover proposal from suitor EQT Fund Management Sarl.

EQT upped the ante again on Tuesday, making a takeover proposal which it said is the "final possible offer" for the assurance, inspection, product testing and certification firm.

EQT's final proposal is worth GBP60 per share in cash, GBP61.077 including a final dividend. Together with the dividend, the tilt values Intertek at GBP9.40 billion.

Intertek shares were up 6.4% to 5,299.06 pence each in London on Tuesday morning, giving it a market capitalisation of GBP8.16 billion.

Intertek confirmed that it received the proposal on Monday.

"As with EQT's previous proposals, the board of Intertek is reviewing EQT's final proposal with its advisers and a further announcement will be made in due course," it added.

It follows a GBP58.00 proposal by EQT made on Friday, which valued the company as whole at around GBP8.93 billion.

"The board of Intertek has carefully reviewed the further revised proposal with its advisers and unanimously concluded that it significantly undervalues Intertek and its future prospects and there is significant execution risk given its conditional nature. Accordingly, the Intertek board unanimously and unequivocally rejected the further revised proposal," Intertek said at the time.

Intertek had also rejected prior EQT proposals of GBP54.00 and GBP51.50 per share.

On the new proposal, EQT said it "delivers certain and accelerated cash value at a full valuation for Intertek shareholders". It is "superior to the range of outcomes associated with Intertek's standalone prospects", EQT added.

"EQT has submitted this final proposal with a view to progressing swiftly towards a recommended firm offer in the interests of Intertek shareholders. There can be no certainty that an offer will be made," EQT added.

Last month, Intertek launched a strategic review and said it was considering selling or demerging its Intertek Energy & Infrastructure business. The strategic review will consider whether Energy & Infrastructure and Testing & Assurance "would be better positioned as separate businesses to unlock their full potential", Intertek explained.

The company said on Friday: "Since the announcement of the strategic review, the company has received an encouraging level of interest from potential buyers of Intertek Energy & Infrastructure."

EQT has until the close of play on May 14 to announce a firm intention to make an offer for Intertek, according to UK M&A rules. The deadline could be extended, however.

Activist investor Palliser Capital, which has built a stake in Intertek below 1%, urged the London listing to engage with EQT.

Separately, Reuters reported PrimeStone Capital also urged Intertek to engage with EQT.

"The (Intertek) board's latest response does not, in our view, reflect the serious engagement that this approach merits," activist PrimeStone said, according to Reuters.

Reuters reported that PrimeStone Capital owns around 0.5% of Intertek.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

German annual consumer price inflation rate speeds up to 2.9% in April

2026-05-12T08:02:44Z

German consumer price inflation accelerated last month, the Federal Statistical Office confirmed on Tuesday, as higher energy costs pushed up prices.

The yearly consumer price inflation rate picked up to 2.9% in April, from 2.7% in March.

Consumer prices rose 0.6% on-month in April, after a 1.1% climb in March from February.

On a harmonised basis, allowing for EU-wide comparison, the annual rate of inflation accelerated to 2.9% in April, from 2.8% in March. Prices were up 0.5% on-month in April on a harmonised basis, after rising by 1.2% in March.

The numbers were in line with preliminary data published in late April.

Prices of energy products were up 10% on-year in April, picking up speed from a 7.2% increase in March and after falling by 1.9% in February. In late-February, the US and Israel launched a war against Iran which has sharply raised energy prices since.

Ruth Brand, president of the Federal Statistical Office, said: "Overall inflation increased for the second consecutive month as a result of another rise in energy prices that was due to the Iran war. Consumers are particularly feeling the persistent price pressure regarding motor fuels."

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Imperial Brands backs yearly view but warns war could hit demand

2026-05-12T08:00:33Z

Imperial Brands PLC on Tuesday maintained its annual outlook, but the Middle East conflict has prompted a "more uncertain macroeconomic environment".

Shares in the company rose 0.8% to 2,750.00 pence each in London on Tuesday morning.

The owner of the Davidoff and Gauloises cigarette brands, as well as Rizla rolling paper and blu e-cigarettes said pretax profit in the half year to March 31 fell 39% to GBP791 million from GBP1.30 billion a year prior.

Revenue, however, rose 0.8% to GBP14.72 billion from GBP14.60 billion. Keeping a lid on profit, it was hurt by GBP210 million in strategy review programme costs and a GBP313 million hit from the settlement of historic legal cases.

"We have made a positive start to the execution of our evolved 2030 strategy, combining consistent operational and financial performance with tangible progress on our transformation," Chief Executive Lukas Paravicin said.

"In combustibles, robust pricing momentum has continued to deliver low single-digit growth, at constant currency, in both net revenue and adjusted operating profit. In next generation products we continue to grow market share in all three categories. We have seen particularly strong growth in heated tobacco, following the rollout of our Pulze 3.0 device. Our modern oral portfolio has grown strongly in European markets, while in the US we have grown volume share in a competitive market.

Despite the impact of one-offs our first half operational performance has driven consistent, strong cash flows, which underpin ongoing investment in growth initiatives and capital returns to shareholders."

Imperial Brands said it is on track with its GBP1.45 billion share buyback, and it has upped its interim dividend by 4.0% to 83.36 pence per share from 80.16p.

The firm said Tobacco & NGP net revenue rose 1.8% in the half-year to GBP3.73 billion from GBP3.66 billion. Adjusted operating profit from the units totalled GBP1.48 billion, down 0.5% from GBP1.49 billion. At constant currency, the net revenue figure was 1.8% higher and the adjusted operating profit measure increased 1.3%.

Tobacco volumes were down 1.5% on-year, amid declines in Europe and the Americas, but "robust pricing" supported net revenue and adjusted operating profit growth. In Next Generation Products, it is seeing "market share gains in all three categories and strong volume growth in all regions".

Looking ahead, it said: "While the conflict in the Middle East has resulted in a more uncertain macroeconomic environment, we have not seen a material impact to date. We will continue to monitor the situation. The longer this persists, the more likely there could be a more meaningful impact on input costs and consumer demand, including duty free. We remain focused on delivering full year results in line with our guidance.

"On a constant currency basis, we expect to deliver low-single-digit tobacco and double-digit NGP net revenue growth. Tobacco pricing will continue to more than offset cigarette volume declines and is expected to have more of a benefit in the second half. In NGP we expect a stronger second half, given the negative impact of one-offs in H1, plus new Zone flavour launches and targeted execution. Group adjusted operating profit is expected to grow in the 3% to 5% range, on a constant currency basis. Growth is expected to accelerate in the second half."

Adjusted operating profit in the year ended September 30 was GBP3.99 billion, with tobacco net revenue at GBP7.95 billion and NGP net revenue at GBP368 million.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Prosus expects "very strong" annual 2026 results as buyback continues

2026-05-12T07:54:22Z

Prosus NV said on Tuesday it expects to report "very strong" annual financial results as it continues its share buyback programme and focuses on boosting revenue at its newly acquired Just Eat Takeaway.com NV.

In a letter to shareholders, Chief Executive Officer Fabricio Bloisi said the Cape Town-based technology company had hit the "ambitious" guidance for the financial year that ended March 31 of over USD7.3 billion in revenue and USD1.1 billion in ecommerce adjusted earnings before interest, taxes, depreciation and amortisation, excluding Just Eat Takeaway and La Centrale.

Prosus will make trade-offs to drive growth, increase investment to compete more aggressively, and accelerate product deployment to position its ecosystems for long-term secular growth, Bloisi wrote.

In Latin America, Prosus's iFood performed well and delivered its 2026 targets in a highly competitive market.

Prosus will now accelerate its investment in iFood to take the offensive to stimulate demand and build out. This investment will reduce the 2027 financial year adjusted Ebitda to between USD100 million and USD150 million, Bloisi cautioned.

In Europe, Prosus expects to return Just Eat Takeaway to orders and revenue growth by the end of the year, targeting over USD3.6 billion in revenue and over USD100 million in adjusted Ebitda, and setting a new baseline for growth.

Prosus continued to repurchase shares at an annual run rate of around USD5 billion, which will bring the total amount returned to shareholders to about USD50 billion across Prosus and its parent Naspers Ltd in four years.

For financial 2026, Prosus has sold non-strategic assets valued at USD2 billion, and is planning further disposals.

Shares in Prosus were down 5.3% to ZAR747.28 on Tuesday morning in Johannesburg. They fell 6.2% to EUR38.54 in Amsterdam.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

Intertek suitor EQT makes GBP9.4 billion "final" bid proposal

2026-05-12T07:46:13Z

Intertek Group PLC suitor EQT Fund Management Sarl upped the ante again on Tuesday, making a takeover proposal which it said is the "final possible offer" for the assurance, inspection, product testing and certification firm.

EQT's final proposal is worth GBP60 per share in cash, GBP61.077 including a final dividend. Together with the dividend, the tilt values Intertek at GBP9.40 billion.

Intertek shares were up 5.3% to 5,245.00 pence each in London on Tuesday morning, giving it a market capitalisation of GBP8.11 billion.