Fintel News

GSK to invest USD30 billion in US manufacturing, R&D over five years

2025-09-17T02:34:34Z

GSK PLC on Wednesday announced plans to spend a minimum of USD30 billion over the coming five years to improve its US manufacturing facilities and research and development capabilities.

GSK is a pharmaceutical and biotechnology company based in London and is a constituent of the UK's FTSE 100 blue-chip stock index.

The company said the USD30 billion investment includes a commitment to spend USD1.2 billion in advanced manufacturing facilities, artificial intelligence, and advanced digital technologies, to deliver next-generation biopharma factories and laboratories in the US.

"These investments build on GSK’s strong innovation and manufacturing footprint and capabilities in the United States today, developing and making products in the United States for the United States," GSK commented.

The USD1.2 billion will be partly allocated towards the construction of a new biologics flex factory in Upper Merion, Pennsylvania, with construction scheduled to begin in 2026.

It will also contribute to developing new AI and digital technology capabilities at five existing manufacturing sites in Pennsylvania, North Carolina, Maryland, and Montana.

In particular, the investment will focus on new drug substance manufacturing capabilities and enhanced device and auto-injector capabilities and assembly.

Chief Executive Officer Emma Walmsley said: "Here in the UK, we continue to invest in a significant manufacturing base and more than GBP1.5 billion in R&D every year. Today, we are committing to invest at least GBP30 billion in the United States over the next 5 years, further bolstering the already strong R&D and supply chain we have in the country."

With this latest announcement, GSK has committed new investments in the US of approximately USD2 billion over the last twelve months.

In 2024, the company spent a total of GBP6.4 billion, approximately USD8.73 billion, on R&D investments across its portfolio, representing a 3% increase on an actual exchange rate basis from the prior year, or 5% at constant exchange rates.

GSK shares closed down 0.9% at 1,465.69 pence in London on Tuesday, while shares listed in New York closed 0.6% lower at USD40.05.

By Elijah Dale, Alliance News senior reporter Asia-Pacific

Comments and questions to newsroom@alliancenews.com

NEW YORK MARKET CLOSE: Shares lower as Fed meeting kicks off

2025-09-16T20:34:56Z

Shares edged lower in New York on Tuesday, as investors brace for a likely quarter-point interest rate cut from the Federal Reserve on Wednesday.

The Dow Jones Industrial Average closed down 125.55 points, 0.3%, at 45,757.90. The S&P 500 fell 8.52 points, up 0.1%, to 6,606.76. The Nasdaq Composite ended down 14.79 points, 0.1% at 22,333.96.

"The S&P 500 continues to maintain a positive trend and remains anchored near its all-time high around 6,530 points," said XS.com market analyst Linh Tran. "The outlook in the upcoming period revolves around three main pillars: the inflation trajectory and the pace of Fed easing; the health of corporate earnings; and capital flows - investor sentiment.

"At present, the fundamental backdrop remains fairly favourable as the US labour market has cooled, helping yields and the US dollar ease, thereby partially relieving discount pressure on equity valuations, especially for interest-rate-sensitive groups. However, part of the rate-cut expectations has already been priced in, so the index's positive reaction tends to be selective and depends heavily on upcoming data as well as the message at the FOMC meeting."

The Federal Open Market Committee's September meeting kicks off on Tuesday, with the central bank expected to announce a 25 basis points cut to a 4.00%-4.25% range, its first cut since a 25 basis points trim in December.

The FOMC announces its decision at 1900 BST on Wednesday, and a press conference with Chair Jerome Powell follows shortly after.

While the quarter-point move is widely expected (the CME FedWatch tool puts the likelihood at 96.1%), doves, including Trump-appointed board member Stephen Miran, are eyeing a more drastic 50bps cut - though CME puts it at just 3.9% probability.

All eyes will be on Chair Jerome Powell's press conference, where any hint at a weakening unemployment picture will be taken as a sign of further cuts to come, though he's expected to remain silent as usual on the future rate path, Bank of America analysts said.

Overall, BofA expects Powell's comments to reflect those made at Jackson Hole last month, and that the FOMC will opt for language similar to last September: "Job gains have slowed, and the unemployment rate has moved up but remains low."

But the key, BofA said, will be whether or not Powell focuses on the slowdown in payrolls and extrapolates from the preliminary benchmark revisions "to conclude that the job market has probably been contracting in the last few months".

"In this vein, he might also cite upside risks to the unemployment rate, even if it hasn't risen much thus far."

However, a hawkish Powell may point to growth in final private domestic demand - his preferred activity metric. The metric grew by 2.7% from the second quarter of 2024 to the first quarter of 2025, during which payroll growth was marked down to about 70,000 per month, BofA noted.

The dollar was weaker ahead of the decision.

Late Tuesday, the pound traded at USD1.3662, up from USD1.3608 at the New York close on Monday. The euro rose to USD1.1868 from USD1.1771. Against the yen, the dollar was at JPY146.36, down from JPY147.34 on Monday.

"If Powell's message and the projections lean more dovish than markets anticipate, both the dollar and Treasury yields could come under renewed pressure," said Van Ha Trinh, Financial Markets Strategist at Exness. "Conversely, if the Fed signals a more cautious approach, the downside could be contained."

Treasury yield held steady, with investors waiting to see "if inflation dynamics and Fed guidance shift expectations further, as yields could react sharply to any surprise in either the pace or scale of policy easing," Ha Trinh added.

The US 10-year Treasury was at 4.03% late Tuesday, down from 4.04% on Monday. The yield on the US 30-year Treasury was at 4.65%, narrowing from 4.66%.

Gold was quoted at USD3,688.55 an ounce late on Tuesday, up from USD3,679.41 on Monday.

Federal Reserve data on Tuesday showed US industrial production rose 0.1% on-month in August after a fall of 0.4% in July, outperforming the FXStreet-cited consensus of a 0.1% decline in August. July's figure was revised down from a 0.1% contraction.

Furthermore, capacity utilisation remained unchanged at 77.4% in August, with July revised down a notch from 77.5%. August's capacity utilisation was in line with consensus.

The Census Bureau on Tuesday said retail sales rose 0.6% in August from July, beating the FXStreet-cited consensus of a 0.2% rise.

Retail sales had also risen 0.6% in July from June, a growth rate upwardly revised from an initially reported 0.5%.

On-year, retail sales were 5.0% higher in August, picking up speed from a 4.1% rise in July.

Separately, the Bureau's export price index rose 0.3% in August from July, though it had been expected to be flat. In July, it also rose 0.3% from June.

The import price index also advanced 0.3% in August from July, beating the consensus of a 0.1% fall and picking up speed from 0.2% in July from June.

US President Trump continued his campaign against the media on Tuesday as he announced a USD15 billion "defamation and libel lawsuit" against the New York Times.

"The New York Times has been allowed to freely lie, smear, and defame me for far too long, and that stops, NOW!" he wrote on his Truth Social platform, adding the lawsuit was being brought in Florida.

The news outlet reported last week that Trump had threatened legal action against it in relation to articles on a lewd birthday note given to sex offender Jeffrey Epstein.

Trump has denied authoring the note.

Workday shares slid on Tuesday despite announcing a slew of new products at its Workday Rising 2025 event and the acquisition of AI firm Sana Labs AB.

Workday announced it will acquire Sana, an AI company focused on next-generation enterprise knowledge tools. The USD1.1 billion all-share deal is expected to close in Workday's fourth quarter ending January 31.

"Sana will power a new Workday experience - where knowledge, data, action, and learning come together as one and create the new front door for work," the company said in a statement.

New, AI-focused platforms include Workday Illuminate, Workday Build and Workday Data Cloud.

The company also announced a partnership with Microsoft and a pact with Databricks, Salesforce.com and Snowflake.

Shares ended down 1.7%.

CrowdStrike on Tuesday announced the acquisition of AI firm Pangea.

The Wall Street Journal said the deal was worth USD206 million, though terms were not disclosed by CrowdStrike.

The company also announced deals with Salesforce and Nvidia to boost security for agentic AI.

CrowdStrike ended up marginally. Salesforce dropped 1.3%. Nvidia slid 1.6%.

Eli Lilly on Tuesday announced plans to build a USD5 billion manufacturing facility near Richmond, Virginia, part of a USD50 billion commitment to US capital expansion since 2020.

The facility, slated for Goochland County, will act as the company's first fully integrated active pharmaceutical ingredient and drug product facility for Lilly's emerging bioconjugate platform and monoclonal antibody portfolio.

It's set to be the first of four new pharmaceutical sites built to bolster Lilly's domestic medicine production.

Shares climbed 2.2%.

Brent was quoted at USD68.04 a barrel on Tuesday, up from USD67.01 on Monday. West Texas Intermediate rose to USD63.86 from USD62.75.

In Europe, the FTSE 100 lost 0.9% in London. The CAC 40 in Paris closed down 1.0%. The DAX 40 in Frankfurt declined 1.8% in Frankfurt.

In Asia, the Nikkei 225 in Tokyo gained 0.3%. In China, the Shanghai Composite closed up marginally, while the Hang Seng Index ended down less than 0.1% in Hong Kong. The S&P/ASX 200 rose 0.3% in Sydney.

Wednesday's global economic calendar has the Fed interest rate decision and subsequent press conference by Chair Powell. Other US data includes building permits and crude oil stocks. The eurozone reports CPI.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: Stocks end down as Fed policy meeting begins

2025-09-16T16:05:56Z

Stock prices in London closed mostly lower on Tuesday, as expectations of a rate cut from the US Federal Reserve continue to dominate, and following the release of US industrial and retail data.

The Fed started its two-day key policy meeting on Tuesday, AFP reported, hours after Stephen Miran narrowly won confirmation to join the central bank.

Stephen Miran, who has been a key advisor to Trump, took the oath of office as a Fed governor on Tuesday after narrowly winning a Senate vote on Monday night to become one of the FOMC's 12 voting members.

It remains to be seen if he will push for larger rate cuts as the president has repeatedly demanded, with markets widely expecting a 25 basis points cut at the end of discussions on Wednesday.

The FTSE 100 index closed down 81.37 points, 0.9%, at 9,195.66. The FTSE 250 ended down 154.72 points, 0.7%, at 21,491.87, and the AIM All-Share closed up 0.48 points, 0.1%, at 767.87.

The Cboe UK 100 was down 0.8% at 921.60, the Cboe UK 250 was down 0.7% at 18,834.72, and the Cboe Small Companies was down 0.1% at 17,118.14.

"A barrage of US companies are expected to announce big investments in the UK to coincide with Donald Trump's state visit," said AJ Bell's Russ Mould. "Google-owner Alphabet is the latest name in the frame, with news it will spend GBP5 billion in the UK on AI-related infrastructure investments and scientific research...[but] the expected wave of US investment wasn't enough to lift the UK stock market.

"The FTSE 100 gets more than two-thirds of its earnings from overseas, so even policies that can potentially boost growth domestically may not have the impact on the constituents of the UK's leading stock market index that some might expect."

Anglo American, on the FTSE 100, gained 0.6%.

The miner has formally completed its copper tie-up with the Chilean state-owned mining company Codelco.

This comes after the two companies back in February this year signed a memorandum of understanding for a framework to implement a joint mine plan for their adjacent copper mines of Los Bronces and Andina in Chile.

Student accommodation provider Unite Group lost 1.7%.

The UK Competition & Markets Authority has invited comments on Unite's proposed acquisition of Empiric Student Property, in the first step ahead of a potential formal investigation into the deal.

Empiric, whose shareholders are set to own 10% of the combined firm if the deal goes ahead, was down 1.1% on the FTSE 250.

Also on the FTSE 250, Pollen Street Group closed 3.0% higher.

The London-based asset manager said it was encouraged by growing demand for mid-market alternatives and asset-based lending, as it announced first-half pretax profit growing 28% annually to GBP29.6 million while total income climbed 17% to GBP63.8 million. Pollen Street also declared an interim dividend of 27.0 pence, up 1.9%.

Chief Financial Officer Crispin Goldsmith said the firm "is trading in line with expectations", adding: "The group remains in a strong position and is strategically well-placed and well-resourced for further growth through H2 2025 and beyond."

On AIM, Focusrite closed 15% higher.

The music and audio products hailed a "resilient performance" in the face of tough market conditions, with revenue rising to GBP87 million for the six months to August 31 and to GBP168 million for the 12 months. Focusrite has changed its year-end to February 28 from the end of August.

It expects adjusted Ebitda for the 12 months to August to be within the market forecast range, which it puts at GBP24.5 million to GBP26.0 million.

Stocks in New York were lower. The Dow Jones Industrial Average was down 0.4%, the S&P 500 index down 0.2%, and the Nasdaq Composite down 0.1%.

The yield on the US 10-year Treasury was quoted at 4.05%, widening from 4.04%. The yield on the US 30-year Treasury was quoted at 4.66%, widening from 4.65%.

US industrial production rose 0.1% on-month in August after a downwardly revised fall of 0.4% in July, the Fed reported. It outperformed the FXStreet-cited consensus of a 0.1% decline in August.

Also, according to the Census Bureau, US retail sales rose 0.6% in August from July, unchanged on-month but beating the FXStreet cited consensus of a 0.2% rise.

Separate data showed that the export price index rose 0.3% in August from July, though it had been expected to be flat. The import price index advanced 0.3%, beating consensus of a 0.1% fall.

In other US news, Trump said that the US and China had reached an agreement over TikTok, which Washington says must pass to US-controlled ownership.

"We have a deal on TikTok, I've reached a deal with China, I'm going to speak to President Xi on Friday to confirm everything up," Trump told reporters as he left the White House for a state visit to Britain.

"Neither side wants to be seen as weak, but there is also a desire to keep trade flowing between the two sides," Mould commented.

"Progress on TikTok's future in the US and US-China trade agreements more broadly have been slow, and they look set to drag on...Finding a middle ground that satisfies both the authorities in the US and China has proved to be difficult to achieve, which makes the prospect of a framework deal on TikTok's US somewhat curious.

"More information is expected on Friday, and the structure of any potential agreement could provide hints to how future deals are struck more broadly between the US and China."

In European equities on Tuesday, the CAC 40 in Paris closed down 1.0%, while the DAX 40 in Frankfurt ended down 1.8%.

German industrial major thyssenkrupp was up 4.9% in Frankfurt, after announcing that India's Jindal Steel International has made a "non-binding, indicative offer" for its steel business Thyssenkrupp Steel Europe.

thyssenkrupp, which has been looking to split itself into standalone businesses to boost profitability, would "carefully review" the offer and pay "particular attention" to what it would mean for employment at its sites, it added.

The pound was quoted higher at USD1.3642 at the time of the London equities close on Tuesday, compared to USD1.3597 on Monday. The euro stood higher at USD1.1837, against USD1.1765. Against the yen, the dollar was trading lower at JPY146.65 compared to JPY147.34.

Brent oil was quoted higher at USD68.32 a barrel at the time of the London equities close on Tuesday, from USD67.37 late Monday.

Gold was quoted higher at USD3,680.32 an ounce against USD3,668.27.

The biggest risers on the FTSE 100 were Fresnillo, up 92.60p at 2,288.60p, J Sainsbury, up 5.00p at 322.80p, Croda International, up 39.00p at 2,556.00p, Glencore, up 3.70p at 310.55p, and Mondi, up 11.10p at 1,007.50p.

The biggest fallers on the FTSE 100 were Haleon, down 17.00p at 339.70p, easyJet, down 15.80p at 457.20p, Barclays, down 9.80p at 374.85p, Coca-Cola HBC, down 92.00p at 3,598.00p, and NatWest, down 13.40p at 524.40p.

On Tuesday's economic calendar, as well as the Fed rate decision and press conference, look out for UK and eurozone consumer inflation.

On Tuesday's UK corporate calendar, Barratt Developments releases full-year results; IP Group has half-year results; and Games Workshop holds its annual general meeting.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

US industrial production unexpectedly ticks up a notch in August

2025-09-16T13:26:45Z

US industrial production unexpectedly grew in August, data from the Federal Reserve showed on Tuesday.

US industrial production rose 0.1% on-month in August after a fall of 0.4% in July. It outperformed the FXStreet-cited consensus of a 0.1% decline in August. July's figure was revised down from a 0.1% contraction.

Furthermore, capacity utilisation remained unchanged at 77.4% in August, with July revised down a notch from 77.5%. August's capacity utilisation was in line with consensus.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

FOREX: Euro and sterling gain as dollar under pressure before Fed

2025-09-16T13:15:05Z

Sterling and the euro hit their best levels against the buck since July, as Federal Reserve easing expectations continue to weigh on the dollar on the eve of an expected rate cut.

UK labour market data, though short of being solid, did not offer too much encouragement for the doves, keeping the pound in decent shape above the USD1.36 mark.

Against the dollar, sterling rose to USD1.3641 on Tuesday afternoon from USD1.3606 a day prior.

According to the Office for National Statistics, the nation's jobless rate was steady at 4.7% in the three months to July, where it stood for the three months to June. The reading was in line with consensus cited by FXStreet.

The ONS said an estimate showed payrolled employees declined by 142,000 on-year in July and by 6,000 on-month.

"The early estimate of payrolled employees for August 2025 decreased by 127,000 (0.4%) on the year, and by 8,000 (0.0%) on the month, to 30.3 million," the ONS added.

"The estimated number of vacancies in the UK fell by 10,000 (1.4%) on the quarter, to 728,000, in June to August 2025. This is the 38th consecutive period where vacancy numbers have dropped compared with the previous three months, with vacancies decreasing in 9 of the 18 industry sectors."

Average growth in regular earnings during the three months, so excluding bonuses, was 4.8%, in line with consensus cited by FXStreet, cooling from 5.0% in the three months to June.

Total pay growth picked up slightly to 4.7% from 4.6%, but was in line with expectations.

Dutch bank ING sees the UK labour market as one that is "still cooling, though crucially, not materially faster than it was in the spring".

Versus the euro, sterling faded to EUR1.1549 on Tuesday, from EUR1.1560 a day prior.

Versus the dollar, the single currency advanced to USD1.1807 from USD1.1763.

Societe Generale analyst Kit Juckes noted that a relative strength indicator trackcing the euros performance has climbed.

"The 9-day RSI reached 80 before the most recent EUR/USD peak above 1.18 and reached levels higher than that before the last two peaks, in 2017 and 2020. Today, it's 'only' in the 60s because the euro is climbing steadily, but slowly. This is a good sign," Juckes added.

"Relative growth forecasts, relative rates, and the overall market backdrop are all on the euro’s side, for now. It could all change with tomorrow's FOMC statement, but I reckon the market is less long euros than I feared and the chances of a move to 1.20 this month have improved (we still think a peak in the mid-1.20s is as good as the euro can get, however.)"

The Fed is expected to enact a 25 basis point cut on Wednesday.

The US Senate on Monday narrowly cleared President Donald Trump's choice for a key role at the Federal Reserve, as the clock ticks down to the central bank's next policy meeting.

The Republican-majority Senate voted 48-47 to confirm Stephen Miran, who chairs the White House Council of Economic Advisers, allowing him to join the Fed's board of governors and therefore a panel of 12 voting members who set interest rates steering the world's biggest economy.

Brown Brothers Harriman analysts commented: "Miran is the most likely FOMC member to vote for a 50bps cut tomorrow. Meanwhile, Fed Governor Lisa Cook is also expected to attend the upcoming Federal Open Market Committee meeting. An appeals court allowed Cook to continue working during the ongoing legal proceedings. President Donald Trump could still ask the Supreme Court to step in."

Against the Canadian dollar, the US currency fell to CAD1.3756 from CAD1.3831. The Bank of Canada also announces a rate decision on Wednesday.

Canada's consumer price inflation rate picked up in August, but at a slower speed than forecast, numbers on Tuesday showed.

According to Statistics Canada, the annual consumer price inflation rate accelerated to 1.9% in August, from 1.7% in July. The reading fell short of the FXStreet cited consensus of 2.0%, however.

StatCan said: "Gasoline prices fell to a lesser extent year over year in August (-12.7%) than in July (-16.1%), leading to faster growth in headline inflation. Excluding gasoline, the CPI rose 2.4% in August, after increasing 2.5% in each of the previous three months. Moderating the acceleration in the all-items CPI were lower prices for travel tours and fresh fruit compared with July."

On-month, consumer prices fell 0.1% in August from July. They had been expected to be flat. Prices had risen 0.3% in July from June.

The BoC is expected to cut its policy rate to 2.50% from 2.75%.

Versus the Australian dollar, the greenback fell to AUD1.4988 from AUD1.5008.

Against the Swiss franc, it fell to CHF0.7913 from CHF0.7949. Versus the yen, it eased to JPY147.11 from JPY147.26.

The Dollar Index stood at 97.05 points, down from 97.33 a day prior.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UK Chancellor Reeves and US counterpart Bessent meet finance chiefs

2025-09-16T12:58:54Z

Finance bosses joined Chancellor Rachel Reeves and US counterpart Scott Bessent for talks on strengthening economic cooperation ahead of Donald Trump's state visit.

The UK chancellor hosted Bessent and major banking and financial technology firms from both sides of the Atlantic for talks in 11 Downing Street.

Reeves said: "Together we are delivering investment and opportunity for both our countries."

Attendees included senior representatives from Citigroup Inc, Morgan Stanley, Bank of America Corp, S&P Global Inc and BlackRock Inc.

Ahead of the US president's arrival a number of American firms have announced investments in the UK.

Citi Group has confirmed it will invest GBP1.1 billion across its UK operations, while S&P Global will put GBP4 million into their Manchester offices and Bank of America will create up to 1,000 new jobs in Belfast in its first operation in Northern Ireland.

Other firms represented in 11 Downing Street included Barclays PLC, Circle, Schroders PLC, London Stock Exchange Group PLC, Revolut, Ripple, Coinbase Global Inc, Goldman Sachs Group Inc, JPMorgan Chase & Co, Blackstone Inc, CD&R and HSBC Holdings PLC.

Officials said the meeting was intended to strengthen economic ties between the UK and the US, building on the GBP1.2 trillion invested in each other's economies.

By David Hughes, PA Political Editor

Press Association: Finance

source: PA

US retail sales growth beats expectations in August

2025-09-16T12:44:39Z

US retail sales rose at a faster pace than expected in August, numbers on Tuesday showed.

According to the Census Bureau, retail sales rose 0.6% in August from July, beating the FXStreet cited consensus of a 0.2% rise.

Retail sales had also risen 0.6% in July from June, a growth rate upwardly revised from an initially reported 0.5%.

On-year, retail sales were 5.0% higher in August, picking up speed from a 4.1% rise in July.

Separate data showed export and import prices were higher than expected last month.

The export price index rose 0.3% in August from July, though it had been expected to be flat. In July, it also rose 0.3% from June.

The import price index advanced 0.3% in August from July also, beating consensus of a 0.1% fall and picking up speed from 0.2% in July from June.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

COMMODITIES: Gold rallies to another record before US Fed verdict

2025-09-16T11:38:04Z

Gold hit another all-time high record on Tuesday as US interest rate decision loomed, while gains in the oil market kept piling up.

Spot gold was quoted at USD3,691.11 an ounce on Tuesday afternoon in London, up from USD3,642.37 at the same time on Monday. Silver rose to USD42.75 an ounce from USD42.16.

The yellow metal USD3,698.97 an ounce on Tuesday for the first time ever, after smashing a historic record of USD3,685.58 on Monday.

Bullion, which has gained around 41% year to date, has broken several records over the past two weeks amid rising expectations of interest rate cut in the US this coming Wednesday.

Markets expect the US Federal Reserve to lower its lending rates by 25 basis points as a result of weakness in US labour market.

"These expectations have pushed Treasury yields to multi-month lows and weakened the dollar index," ING analysts Warren Patterson and Ewa Manthey said.

Gold generally has an inverse relationship with the dollar and US Treasury bonds, which makes non-yielding gold more attractive.

"Should the central bank's guidance fall short of dovish market expectations, gold could face near-term selling pressure," Exness analyst Eric Chia said in reference to the Fed, adding: "However, any confirmation of multiple cuts would strengthen its rally, potentially leading to new highs."

"Continued concerns over the Fed's independence will also remain the focus for the global market looking ahead, ING's Patterson and Manthey said

US President Donald Trump's aggressive trade policy, conflicts in the Middle East and Ukraine, and central bank buying have all also helped support gold, Patterson and Manthey said.

In other commodities, Brent crude oil was priced at USD67.48 a barrel on Tuesday, up from USD66.99 on Monday. West Texas Intermediate fell to USD63.51 a barrel, compared to USD62.69.

The oil market extended gains for a third straight session on Tuesday as Ukrainian strikes on Russian infrastructure sparked renewed energy supply concerns.

"The EU is reportedly weighing sanctions on firms in India and China facilitating Russian oil flows, while President Trump signalled readiness for major sanctions if Europe follows suit," Hargreaves Lansdown analyst Matt Britzman said.

Market participants were caught between escalating geopolitical tensions and "not particularly supportive fundamentals", Patterson and Manthey said, keeping a close eye on the potential of further Western sanctions on Russian supplies against a looming supply surplus expectation.

In other metals, platinum was priced at USD1,406.25 an ounce on Tuesday, up from USD1,398.45 on Monday. Palladium was quoted at USD1,209.50 an ounce, up from USD1,209.26.

In base metals, aluminium was flat at USD2,695.00. But the copper price firmed to USD10,073.50 per tonne from USD10,070.00.

Copper prices jumped to their highest level since June 2024, ING's Patterson and Manthey said, amid reports suggesting that Chile expects production to grow this year and next, targeting a record 6 million tonnes by 2027, despite setbacks at two major mines.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

PRESS: Card reader company SumUp eyes IPO in London or New York - FT

2025-09-16T11:06:49Z

Financial technology firm SumUp is mulling an initial public offering in either London or New York, the Financial Times reported on Monday.

The firm, which provides card readers, could be valued between USD10 billion and USD15 billion in a float, the FT said.

One source told the FT that SumUp's founders will remain its largest shareholders. The FT also reported that SumUp is looking to raise funds to buy competitors. Citing a source, the FT reported SumUp believes the payment processing is ready for consolidation.

In a 2022 funding round, SumUp was valued at EUR8 billion, though it had hoped to be worth EUR20 billion.

A float for SumUp would provide a rare boost for the London Stock Exchange, which has struggled to secure high profile listings and seen big names move their primary listings elsewhere.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: European shares drift lower but New York to rise

2025-09-16T11:02:45Z

European blue-chips traded lower on Tuesday afternoon, with equity market sentiment on the continent wavering before the start of the Federal Reserve meeting, but across the Atlantic, stocks are expected to push even higher after a record close at the start of the week.

A stronger pound kept a lid on London's large-cap benchmark, which is stacked with international earners.

Elsewhere, gold added some sparkle, with the spot price approaching USD3,700.

The FTSE 100 index lost 20.96 points, 0.2%, at 9,256.07. The FTSE 250 fell just 8.20 points at 21,638.39, and the AIM All-Share was up 1.32 points, 0.2%, at 768.71.

The Cboe UK 100 was down 0.2% at 927.43, the Cboe UK 250 was flat at 18,962.65, but the Cboe Small Companies was marginally higher at 17,144.18.

In Paris, the CAC 40 was 0.1% lower. In Frankfurt, the DAX 40 was 0.4% lower.

The pound rose to USD1.3633 early on Tuesday afternoon, from USD1.3597 on Monday. The euro advanced to USD1.1807 from USD1.1765, while against the yen, the buck fell to JPY147.05 from JPY147.34.

The euro and pound hit their best levels since July.

The stronger sterling hit shares in international earners on the FTSE 100. Asia-focused insurer Prudential fell 2.2%, soft drink bottler Coca-Cola HBC fell 1.7% and consumer goods firm Unilever lost 1.0%.

The UK unemployment rate was unmoved in July, as expected, numbers on Tuesday showed.

The ONS said an estimate showed payrolled employees declined by 142,000 on-year in July and by 6,000 on-month.

"The early estimate of payrolled employees for August 2025 decreased by 127,000 (0.4%) on the year, and by 8,000 (0.0%) on the month, to 30.3 million," the ONS added.

Average growth in regular earnings during the three months, so excluding bonuses, was 4.8%, in line with consensus cited by FXStreet, cooling from 5.0% in the three months to June.

Total pay growth picked up slightly to 4.7% from 4.6%, but was in line with expectations.

Rostro analyst Joshua Mahony commented: "With wage growth easing from 5% to 4.8%, and the claimant count increasing to 17.4k, some will claim this could push the BoE towards a rate cut on Thursday. However, tomorrow's inflation report will likely put that argument to bed, with the UK CPI rate currently standing well above target at 3.8%. As such, we should expect precious little movement in terms of UK rates for some time, with market pricing the next cut in February 2026."

The yield on the US 10-year Treasury was unchanged at 4.04% on Tuesday afternoon, where it stood at the time of the London equities close on Monday. The yield on the 30-year Treasury inched up to 4.66% from 4.65%.

The US Senate on Monday narrowly cleared President Donald Trump's choice for a key role at the Federal Reserve, as the clock ticks down to the central bank's next policy meeting.

On the docket for Tuesday afternoon is a US retail sales reading at 1330 BST. Ahead of the data, the Dow Jones Industrial Average is called flat, the S&P 500 up 0.2% and the Nasdaq Composite 0.3% higher. The S&P and Nasdaq achieved record closes on Monday.

In London, Haleon shares fell 3.2%. Barclays cut the consumer healthcare company to 'equal-weight' from 'overweight'.

At the other end of the index, Fresnillo rose 3.8%, with the gold miner boosted by a surging bullion price. Hochschild Mining added 1.4%.

Gold traded at USD3,695.02 an ounce midday Tuesday, up from USD3,668.27 at the time of the closing bell on the London Stock Exchange on Monday. Gold hit a record high of USD3,698.86 an ounce, on the cusp of the USD3,700 mark.

"The market has pushed gold to all-time highs for a reason, and while the exact reason could fall on any one of many macro debates and concerns being posed by market players, the fact that gold is uncorrelated from the S&P500 and US Treasuries and is a portfolio hedge that is working well makes the investment case highly attractive. The fact that gold has been so strong, the pullbacks limited, and contained, and the rate of change has picked up also brings in a lot of systematic buyers, and we can’t dismiss the importance of the flow-based effects pushing gold higher," Pepperstone analyst Chris Weston commented.

"Of course, the FOMC meeting does pose risk to gold positioning, but the risk to US growth is skewed to the downside, and the market is sensing a growing risk that the Fed has miscalculated its views on economics and are progressively behind the curve on policy."

Elsewhere in London, Trustpilot added 8.5%. The Copenhagen-based consumer review platform said pretax profit jumped 45% to USD3.7 million in the first half of 2025 from USD2.6 million a year prior.

Adjusted earnings before interest, tax, depreciation and amortisation surged 70% to USD18.0 million from USD10.6 million, while the adjusted Ebitda margin improved to 14.6% from 10.6%.

Revenue climbed 23% to USD122.8 million from USD99.8 million.

Trustpilot now expects the adjusted Ebitda margin for the full-year to be in line with the first half, ahead of expectations. It had previously predicted an outcome of 14%.

SThree shares slumped 21%. It warned of a hit to profit in the next financial year due to continued subdued hiring activity.

The London-based science, technology, engineering and mathematics-focused recruiter said net fees in the third quarter to the end of August tumbled 12% on-year at constant currency.

It noted this was a "modest sequential improvement quarter-on-quarter" due to a return to US growth during the period.

The performance for the 2025 financial year to the end of November is expected to be in line with previously announced GBP25 million pretax profit guidance, SThree noted.

SThree noted that it has seen "positive momentum in certain markets and verticals" but said macro uncertainty has remained for longer than expected, which has impacted levels of new business activity.

"As a result, the board is now taking the prudent view that this subdued activity will continue into [financial 2026]," SThree said.

It said persistent softness in new business activity is expected to impact financial 2026 pretax profit consensus by around GBP20 million.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

German investor confidence steadies but economic outlook worsens - ZEW

2025-09-16T09:48:08Z

German investor confidence steadied in September, though assessments of current economic conditions worsened sharply, survey data from the ZEW economic research institute showed Tuesday.

The ZEW indicator of economic sentiment rose to 37.3 points, up 2.6 from August when the index suffered a steep drop. Despite the rebound, the assessment of the present situation deteriorated further, slipping to minus 76.4 points from minus 68.6 the month before.

"Financial market experts are cautiously optimistic and the ZEW indicator has stabilised, but the economic situation has worsened," said ZEW President Achim Wambach. He cited continued uncertainty over US tariff policy and Germany's upcoming "autumn of reforms" as key risks.

Expectations improved most notably for export-oriented industries such as autos, chemicals, pharmaceuticals and metals, though sentiment for these sectors remained in negative territory.

For the wider eurozone, the outlook brightened modestly, with the expectations index rising to 26.1 points from 25.1 in August. The assessment of current conditions also improved slightly to minus 28.8, up from minus 31.2 the previous month.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

EU Commission greenlights German long-term budget despite new debt

2025-09-16T09:18:51Z

The European Commission on Tuesday backed Germany's budget proposal for the years 2025-31 despite plans for new debt to finance massive investments in defence, infrastructure and climate protection.

The green light will ease concerns that Berlin's push to invest EUR500 billion over the coming years could have legal consequences as EU countries have to adhere to strict deficit and debt limits.

The commission concluded that Germany is likely to breach the 3% deficit limit initially but is expected to be back on track by 2028. Germany's debt burden is to ease again in the second half of the seven-year period.

The temporary breaches of the EU rules are not expected to trigger an excessive deficit procedure against Berlin, the commission said.

In addition, the commission allowed Berlin to make use of a special rule that exempts some defence spending from the deficit requirements to quickly improve European defence capabilities and to deter Russia.

Under this rule, capitals can spend an additional 1.5% of gross domestic product, GDP, on defence over four years without risking deficit proceedings.

Along with Germany, 15 other EU countries have already announced their intention to make use of that rule to buy new defence equipment.

Berlin's Finance Ministry submitted its seven-year fiscal policy plan to Brussels in July, after the new German government took office in May.

source: dpa

Eurozone on-year industrial output rise stronger than expected in July

2025-09-16T09:12:46Z

Annual industrial production growth in the eurozone was better than anticipated in July, while June's data was upwardly revised, data published by Eurostat showed Tuesday.

Industrial production in the eurozone grew 0.3% monthly in July, an improvement from a fall of 0.6% in June which was revised up from a 1.3% contraction. It was milder than the FXStreet-cited consensus of a 0.4% climb in July.

The highest monthly increase in the eurozone was in Croatia with 2.6%, followed by Slovenia with 2.1%. The worst falls were in Estonia with 5.5% and Malta with 4.7%.

Annual eurozone industrial production growth improved to 1.8% in July from 0.7% in June, the latter revised up from 0.2%. It beat the consensus of a 1.7% climb in July.

The best on-year growth was in Latvia with 9.8%, followed by Ireland with 8.1%. The worst on-year declines were in Luxembourg with 4.7%, followed by Slovakia with 4.6%.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Citigroup among US finance firms pledging investment into UK

2025-09-16T08:14:18Z

US financial firms have announced investments in the UK worth GBP1.25 billion before Donald Trump's state visit next week.

Citigroup Inc has confirmed it will invest GBP1.1 billion across its UK operations, while S&P Global Inc will put GBP4 million into their Manchester offices.

PayPal Holdings Inc has confirmed a GBP150 million investment in product innovations and growth and Bank of America Corp will create up to 1,000 new jobs in Belfast in its first operation in Northern Ireland.

Alongside the new investment announcements, companies are committing to ramp up commercial activity between the US and UK in the coming years.

BlackRock Inc is allocating GBP7 billion to the UK market over five years, while Rothesay is planning to double its investment in the US with another GBP7 billion in the coming years.

The investment and capital commitments line up some GBP20 billion trade between the two countries – with some GBP8 billion to come to the UK and GBP12 billion to go to the US, the Department for Business and Trade said.

Business & Trade Secretary Peter Kyle said: "These investments reflect the strength of our enduring 'golden corridor' with one of our closest trading partners, ahead of the US presidential state visit."

Tech firms OpenAI and Nvidia Corp are reportedly planning to unveil billions of dollars of investment into UK data centres during the visit next week.

Sam Altman, the head of ChatGPT maker OpenAI, and chipmaker Nvidia's Chief Executive Jensen Huang are understood to be part of a delegation of US executives to join Trump.

The US president's two-day trip begins on Wednesday and includes an overnight stay at Windsor Castle.

It comes as the future of tariffs on British steel is still unclear.

When the UK and US signed a trade deal in June, it reduced tariffs on car and aerospace imports to the US.

But no agreement on a similar arrangement for Britain's steel imports was reached, leaving tariffs on steel at 25%.

A government spokesperson said: "Our special relationship with the US remains strong.

"Thanks to our trade deal, the UK is still the only country to have avoided 50% steel and aluminium tariffs, and we continue to partner on technologies such as AI, Quantum, and cyber security in our trillion-dollar tech sectors.

"We will work with the US to implement this landmark deal as soon as possible to give industry the security they need, protect vital jobs, and put more money in people's pockets through the plan for change, as well as welcoming the president on this historic state visit."

By Helen Corbett, PA Political Correspondent

Press Association: Finance

source: PA

Anglo American formally seals copper pact with Codelco in Chile

2025-09-16T08:09:12Z

Anglo American PLC said on Tuesday it has concluded a copper tie-up with the Chilean state-owned mining company Codelco.

The new operating company of the joint mine is jointly owned and controlled by Anglo American's 50.1%-owned Anglo American Sur SA and Codelco.

On Tuesday, Anglo American said Anglo American Sur and Codelco have entered into a definitive agreement to implement a joint mine plan for their adjacent copper operations.

This transaction is subject to competition and regulatory approvals, and the joint mine plan is subject to securing the relevant environmental permits.

The joint mine plan has been developed to unlock an additional 2.7 million tonnes of copper production over a 21-year period once relevant permits are in place, currently expected in 2030, Anglo American said.

The expected additional copper production of 120,000 tonnes per year is to be shared equally, with 15% lower unit costs relative to standalone operations and with minimal incremental capital expenditure.

The transaction is expected to generate a pretax net present value uplift of at least USD5 billion, to be shared equally between Anglo American Sur and Codelco.

The combined production from Los Bronces and Andina in 2024 would rank in the top 10 copper mines globally. Once adjusted for the incremental 120.000 tonnes per year expected under the joint mine plan, it would rank within the top five, Anglo American said.

Shares in Anglo American were 0.9% higher at 2,583.00 pence each on Tuesday morning in London. They were up 0.6% at ZAR609.52 each in Johannesburg.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON MARKET OPEN: Softer start for stocks but dollar slump continues

2025-09-16T08:02:07Z

European equities made an underwhelming start on Tuesday, while the dollar continued to drift lower on the eve of the next Federal Reserve meeting.

The FTSE 100 index fell 25.31 points, 0.3%, at 9,251.72. The FTSE 250 fell just 5.72 points at 21,640.87, and the AIM All-Share was up 1.25 points, 0.2%, at 768.64.

The Cboe UK 100 was down 0.2% at 927.16, the Cboe UK 250 was flat at 18,966.04, but the Cboe Small Companies was 0.1% lower at 17,129.48.

In Paris, the CAC 40 was 0.3% lower. In Frankfurt, the DAX 40 was 0.4% lower.

The pound rose to USD1.3642 early on Tuesday, its best level since early-July, from USD1.3597 on Monday. The euro advanced to USD1.1799 from USD1.1765, while against the yen, the buck fell to JPY146.71 from JPY147.34.

"The dollar has started the week on the softish side. This may partly involve some pre-positioning ahead of tomorrow night's Fed rate cut. But it will also be a function of the benign external environment. Here, global equity markets continue to edge higher on a cocktail of resilient business optimism and the prospect of lower core borrowing costs. News of the continuing detente in US-China relations is also helping here, as Presidents Trump and Xi appear set to talk on Friday and seal the deal regarding TikTok's future status in the US," ING analysts commented.

In Tokyo, the Nikkei 225 rose 0.3%. Financial markets had been closed in Tokyo at the start of the week. In China, the Shanghai Composite closed flat, while the Hang Seng Index was down 0.1%. In Sydney, the S&P/ASX 200 ended up 0.3%.

In New York at the start of the week, the Dow Jones Industrial Average rose 0.1%, the S&P 500 added 0.5% and the Nasdaq Composite rose 0.9%. It was another record high for the S&P and Nasdaq.

Swissquote analyst Ipek Ozkardeskaya commented: "The combination of strong earnings growth and the prospect of lower rates is simply too good for investors to jump off a running bull. On the Fed and rate cuts, many expect a total of 100 bps over the next four meetings.

"So if you think there's a mismatch between the S&P 500's outlook and the broader US economy and Fed outlook – you're not alone. That's because the S&P 500 doesn't represent the US economy. Roughly a third of the index is made up of Big Tech. Nvidia alone accounts for about 8% of the benchmark. These companies have deep pockets and support each others' business. This ecosystem, combined with global demand for US tech, has kept the major US indices – the S&P 500 and Nasdaq in particular – in demand despite signs of economic weakness elsewhere. For the rest of the S&P 500, earnings growth last quarter was around 3–4%."

The yield on the US 10-year Treasury faded to 4.03% on Tuesday morning, from 4.04% at the time of the London equities close on Monday. The yield on the 30-year Treasury was unchanged at 4.65%.

The UK unemployment rate was unmoved in July, as expected, numbers on Tuesday showed.

The ONS said an estimate showed payrolled employees declined by 142,000 on-year in July and by 6,000 on-month.

"The early estimate of payrolled employees for August 2025 decreased by 127,000 (0.4%) on the year, and by 8,000 (0.0%) on the month, to 30.3 million," the ONS added.

Average growth in regular earnings during the three months, so excluding bonuses, was 4.8%, in line with consensus cited by FXStreet, cooling from 5.0% in the three months to June.

Total pay growth picked up slightly to 4.7% from 4.6%, but was in line with expectations.

Pantheon Macroeconomics analyst Rob Wood commented: "Wage growth provided a slight dovish surprise at the whole economy level, but big picture remains elevated. Private sector ex-bonus average earnings growth, which the MPC focus on more than whole-economy pay as a driver of inflation pressure, slowed to 4.7% three-months year-over-year, from 4.8% in June. But that slowdown was mainly driven by compositional effects."

A barrel of Brent fell to USD67.16 on Tuesday morning, from USD67.37 at the time of the London equities close on Monday. Gold traded at USD3,690.82 an ounce, up from USD3,668.27. The gold price hit a record high of USD3,694.18 on Tuesday.

Spurred on by the higher bullion price, Fresnillo rose 4.2%.

Budget carrier easyJet fell 2.7% as JPMorgan cut the stock to 'neutral' from 'overweight'.

Elsewhere, Kier Group surged 7.7%. The infrastructure firm said it is trading above expectations in the early stages of its new financial year.

"Building on our outperformance in FY25, the group has started the current financial year well and for FY26 is trading slightly ahead of the board's expectations," Chief Executive Officer Andrew Davies said.

Shares in recruiters fell, with SThree tumbling 24% and PageGroup and Hays falling 2.9% and 2.4% in a negative read across.

Science, technology, engineering, and mathematics-focused SThree said group net fees in the third-quarter to August 31 tumbled 12% on-year at constant currency. It noted this was a "modest sequential improvement quarter-on-quarter" amid growth in the US.

"More broadly, new business remains challenging, however, with a disciplined cost base reinforced by operational efficiencies, we remain confident in our ability to deliver on our FY25 PBT guidance. As we look further ahead, we are encouraged by pockets of improving momentum, however we have not yet seen a broader market recovery and, prudently, do not think this will start to materialise near-term, albeit not worsen," CEO Timo Lehne said.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Unilever names Srinivas Phatak as new chief financial officer

2025-09-16T07:35:51Z

Unilever PLC on Tuesday said it has appointed Srinivas Phatak as its new chief financial officer, effective immediately.

Phatak had been serving as acting CFO since February, following Fernando Fernandez's promotion to chief executive officer. He was previously deputy CFO and group controller at the London-based consumer goods firm, owner of brands such as Marmite, Dove and Ben & Jerry's.

The leadership changes have come after former CEO Hein Schumacher stepped down in February, following just 18 months in the role.

At the time, Unilever said a full search would be launched to appoint a permanent CFO. Following that process, the board said it was in unanimous agreement that Phatak was the best candidate, citing his industry expertise, functional experience, and strong performance as acting CFO.

Chief Executive Fernando Fernandez said: "Srinivas has been a great partner over the last six months as acting CFO and over many years as part of the Unilever leadership team. He brings financial rigour, strategic clarity, and a sharp eye for value creation."

Phatak also serves as an independent non-executive director at Coats Group PLC.

Unilever shares were 0.9% lower at 4,546.00 pence in London on Tuesday.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UK grocery price inflation ebbs but finances stay "tight" - Worldpanel

2025-09-16T07:30:46Z

UK grocery sales picked up but price inflation eased, according to data from Worldpanel on Tuesday, while Tesco PLC achieved its strongest period of sales growth for almost two years.

Total grocery sales in the 12 weeks to September 7 advanced 4.7% on-year to GBP35.48 billion from GBP33.88 billion. In the final four weeks of the survey, sales were 4.8% higher.

But grocery price inflation for the final four weeks faded to 4.9%, from 5.0% a month earlier, Worldpanel said.

"Prices might not be climbing quite as quickly, but they're still on the rise and the battle between own label lines and brands continues as household finances remain tight. Supermarkets' own lines now make up 51.2% of all sales, up from 50.9% a year ago. Sales of these products grew by 5.9% this period, just ahead of brands at 5.3%, but it's the premium own label goods which are the real standout performers. Sales rose by an impressive 10.3% making it six months in a row that they've increased by double digits.

"However, brands are holding ground in some categories, including toothbrushes, frozen chicken and baby toiletries, showing that consumers still value well-known names across some very different parts of the store," Worldpanel analyst Fraser McKevitt said.

During the 12-week period, Tesco "won more market share than any other grocer", Worldpanel said. It share of the market grew to 28.4% of all sales, from 27.6% a year prior. Tesco sales during the 12-week period rose 7.7% on-year to GBP10.07 billion, Worldpanel said, noting it was its loftiest growth since December 2023.

J Sainsbury PLC sales grew 5.4% annually to GBP5.36 billion, with its share of the market nudging fractionally higher to 15.1% from 15.0%.

Ocado Retail sales jumped 12% to GBP683 million and the online-only grocer's share of the market now stands at 1.9%, compared to 1.8% a year prior. Ocado Retail is joint-owned by Ocado PLC and Marks & Spencer PLC.

Elsewhere, Aldi's market share was unchanged at 10.7%, while Lidl's rose to 8.2% from, 7.8%.

Asda's shrunk to 11.8% from 12.7%.

Tesco shares traded 1.4% lower in early dealings on Tuesday, Sainsbury's fell 0.4%. Ocado fell 0.9% and M&S was down 0.9%.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON BRIEFING: Anglo American seals Codelco pact; Kier profit up

2025-09-16T06:50:20Z

Unilever made its acting finance chief permanent, Anglo American finalised a copper deal with Codelco and Kier Group says it is trading ahead of expectations.

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

----------

MARKETS

----------

FTSE 100: called 0.1% at 9,282.33

GBP: higher at USD1.3629 (USD1.3597 at previous London equities close)

----------

ECONOMICS

----------

The UK unemployment rate was unmoved in July, as expected, numbers on Tuesday showed. According to the Office for National Statistics, the nation's jobless rate was steady at 4.7% in the three months to July, where it stood for the three months to June. The reading was in line with consensus cited by FXStreet. The ONS said an estimate showed payrolled employees declined by 142,000 on-year in July and by 6,000 on-month. "The early estimate of payrolled employees for August 2025 decreased by 127,000 (0.4%) on the year, and by 8,000 (0.0%) on the month, to 30.3 million," the ONS added.

----------

BROKER RATINGS

----------

JPMorgan cuts easyJet to 'neutral' (overweight) - price target 500 (670) pence

----------

COMPANIES - FTSE 100

----------

Unilever has made its acting chief financial officer permanent after a "thorough internal and external search process". The consumer goods firm says the appointment of Srinivas Phatak as permanent CFO is effective immediately. In February, Unilever announced Chief Executive Officer Hein Schumacher would step down, with CFO at the time Fernando Fernandez replacing him. Phatak, who was deputy CFO, became acting CFO. CEO Fernandez says: "Srinivas has been a great partner over the last six months as acting CFO and over many years as part of the Unilever leadership team. He brings financial rigour, strategic clarity, and a sharp eye for value creation. His leadership and constructive challenge will be very valuable in driving consistent volume growth, margin expansion, and advancing our growth story. I'm confident that, together with the team, we can build a scalable marketing and sales engine that delivers executional excellence across all channels."

----------

Anglo American says it has finalised a copper tie-up with Chile's state-owned Codelco. The duo will implement a joint mine plan for their adjacent copper operations, Los Bronces and Andina. Anglo American says the deal has been struck trhough its 50%-owned unit Anglo American Sur. "The joint mine plan has been developed to unlock an additional 2.7 million tonnes of copper production over a 21-year period once relevant permits are in place, currently expected in 2030," Anglo American adds. "The transaction is expected to generate a pre-tax net present value uplift of at least USD5 billion, to be shared equally between AAS and Codelco."

----------

COMPANIES - FTSE 250

----------

Kier Group reports an increase in annual profit and says it is trading above expectations in the early stages of its new year. The infrastructure firm says its pretax profit in the year to June 30 rose 15% to GBP78.1 million from GBP68.1 million. Revenue improved 3.0% to GBP4.09 billion from GBP3.97 billion. "In the first year of our long-term sustainable growth plan the group delivered strongly, with profit performance, in particular, ahead of our initial expectations," CEO Andrew Davies says. Kier lifts its final dividend to 5.2 pence per share from 3.5p. Its total dividend is 38% higher at 7.2p per share from 5.2p. The CEO adds: "Building on our outperformance in FY25, the group has started the current financial year well and for FY26 is trading slightly ahead of the board's expectations."

----------

Harworth Group reports it is seeing "sustained demand for our residential serviced land" but warns tough market conditions may persist. The regenerator of land says its net asset value per share rose to 215.5 pence at the June 30 half-year end, edging up 0.8% from 213.7p at the end 2024. "We are seeing sustained demand for our residential serviced land, although costs to deliver increased in some instances impacting valuations and the market seems to be softer, an outlook we consider may continue to 2026, particularly with uncertainty around the UK Budget and the timing of further rate cuts," CEO Lynda Shillaw says. Harworth lifts its interim dividend by 10% to 0.538p from 0.489p.

----------

OTHER COMPANIES

----------

MJ Gleeson says its annual profit declined, as it reports "factors which stalled our momentum". The construction firm says pretax profit in the year to June 30 declined 17% to GBP20.5 million from GBP24.8 million a year prior. Revenue improved 5.9% to GBP365.8 million from GBP345.3 million. CEO Graham Prothero says: "This year has been challenging for Gleeson, and despite selling more homes relative to FY2024, there have been factors which stalled our momentum. We have taken the actions necessary to benefit the business through FY2026 and ensure the delivery of our strategic objectives." For the new year, it currently expects an outcome in line with expectations. It puts pretax profit consensus at GBP24.3 million. MJ Gleeson's total dividend per share is unchanged at 11.0p.

----------

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UPDATE: Trump bringing USD15 billion lawsuit against New York Times

2025-09-16T06:32:04Z

US President Donald Trump said Monday that he is bringing a USD15 billion "defamation and libel lawsuit" against the New York Times.

AFP has contacted the New York Times for comment.

Trump decried the newspaper as a "virtual 'mouthpiece' for the Radical Left Democrat Party" and accused it of lying about his "family, business, the America First Movement, MAGA, and our Nation as a whole."

He provided no evidence for his claims.

The news outlet reported last week that Trump had threatened legal action against it in relation to articles on a lewd birthday note given to sex offender Jeffrey Epstein.

The Republican president has denied authoring the note.

Trump has intensified his attacks on traditional media since his return to the White House, repeatedly badmouthing journalists critical of his administration, restricting access and bringing lawsuits.

He sued media magnate Rupert Murdoch and The Wall Street Journal for at least USD10 billion in July after it published an article about his friendship with Epstein.

Paramount settled Trump's lawsuit over election coverage on CBS News' flagship show "60 Minutes" for USD16 million the same month. He had alleged that the program deceptively edited an interview with his 2024 election rival, Kamala Harris, in her favor.

source: AFP

UK unemployment rate remains at 4.7% in July, as expected

2025-09-16T06:18:51Z

The UK unemployment rate was unmoved in July, as expected, numbers on Tuesday showed.

The ONS said an estimate showed payrolled employees declined by 142,000 on-year in July and by 6,000 on-month.

"The early estimate of payrolled employees for August 2025 decreased by 127,000 (0.4%) on the year, and by 8,000 (0.0%) on the month, to 30.3 million," the ONS added.

Average growth in regular earnings during the three months, so excluding bonuses, was 4.8%, in line with consensus cited by FXStreet, cooling from 5.0% in the three months to June.

Total pay growth picked up slightly to 4.7% from 4.6%, but was in line with expectations.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Trump says bringing USD15 billion lawsuit against New York Times

2025-09-16T05:59:30Z

US President Donald Trump said on Monday that he is bringing a USD15 billion "defamation and libel lawsuit" against the New York Times.

"The New York Times has been allowed to freely lie, smear, and defame me for far too long, and that stops, NOW!" he wrote on his social media platform Truth Social, adding that the lawsuit was being brought in Florida.

source: AFP

LONDON MARKET EARLY CALL: FTSE 100 to edge higher; UK jobless data due

2025-09-16T05:16:57Z

Stocks in London are set to open a touch higher on Tuesday, ahead of UK unemployment data and before the Federal Reserve meeting begins.

The UK jobless data is released at 0700 BST, before eurozone industrial production data at 1000 and US retail sales at 1330.

"On this side of the pond, though, focus will fall firstly on this morning's UK employment report, set to show unemployment having held steady at 4.7% in the three months to July," Pepperstone analyst Michael Brown commented.

IG says futures indicate the FTSE 100 to open 5.4 points higher, 0.1% at 9,282.43 on Tuesday. The index of London large-caps closed down 6.26 points, 0.1% at 9,277.03 on Monday.

The pound rose to USD1.3615 early on Tuesday, the eve of the next Fed decision, from USD1.3597 on Monday. The euro advanced to USD1.1775 from USD1.1765, while against the yen, the buck fell to JPY147.03 from JPY147.34.

"The dollar is pressed up against the cliff, staring into the void, but gravity hasn't yet taken charge. Yields at the short end have collapsed since August, payroll revisions wiped almost a million jobs off the books, and inflation prints have softened just enough to hand Powell cover for easing. On paper, the greenback should already have slipped into the ravine. Instead, it clings stubbornly to the ledge, balanced on cracked rock, refusing to fall," SPI Asset Management analyst Stephen Innes commented.

"Markets are hesitant to give it the final shove. Just 26 bps are priced for this week's FOMC, and 70 bps by December. Without a surprise 50 bp cut or Powell opening the door to bigger moves if the labour market buckles further, there's no trigger for a deeper drop."

In Tokyo, the Nikkei 225 rose 0.5%. Financial markets had been closed in Tokyo at the start of the week. In China, the Shanghai Composite was down 0.1%, while the Hang Seng Index was up 0.1%. In Sydney, the S&P/ASX 200 was up 0.3%.

In New York at the start of the week, the Dow Jones Industrial Average rose 0.1%, the S&P 500 added 0.5% and the Nasdaq Composite rose 0.9%.

SPI's Innes commented: "The US–China trade talks offered a spark of optimism Monday, with Trump promising a Friday call with Xi and a framework deal on TikTok ownership giving Washington the optics of control. Yet the subtext is unmistakable—AI and chips are the crown jewels here, and Beijing's fresh antitrust probe into Nvidia was no coincidence. Both capitals are haggling not over tariffs but over who holds the keys to the next high-tech revolution."

Nvidia said it follows all laws after a Chinese investigation found it had breached antitrust rules, the latest development in a fierce tech battle between Beijing and Washington.

"We comply with the law in all respects," a spokesperson for the Santa Clara, California-based chipmaker said in a written statement to AFP.

"We will continue to cooperate with all relevant government agencies as they evaluate the impact of export controls on competition in the commercial markets," the statement added.

A barrel of Brent rose to USD67.55 on Tuesday morning, from USD67.37 at the time of the London equities close on Monday. Gold traded at USD3,684.22 an ounce, up from USD3,668.27.

On Tuesday's economic calendar, highlights include UK unemployment, and US retail sales and industrial production.

On Tuesday's UK corporate calendar, construction firm MJ Gleeson reports annual results and staffing company SThree releases a trading statement.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

NEW YORK MARKET CLOSE: Shares edge higher as investors await Fed cut

2025-09-15T20:31:38Z

Stocks closed higher in New York on Monday ahead of an expected 25 basis point rate cut by the Federal Reserve on Wednesday, while US President Donald Trump took to Truth Social on a range of topics, including TikTok and the future of quarterly earnings reports.

The Dow Jones Industrial Average closed up 49.23 points, 0.1%, at 45,883.45. The S&P 500 rose 30.99 points, up 0.5%, to 6,615.28. The Nasdaq Composite ended up 207.65 points, 0.9% to a record high of 22,348.75.

Attention this week will be focused squarely on the two-day Federal Open Markets Committee meeting starting Tuesday. The CME FedWatch tool shows a 95.8% chance of a 25bps cut to a target range of 4.00-4.25%.

SPI Asset Management analyst Stephen Innes commented: "This week's Fed meeting is little more than stagecraft. A 25bp trim is in the bag, with two more this year and another pair next year, pointing toward 3–3.25%. The dot plot will flash across the terminals, but in FX we don't trade the light show - we trade the tape. And the tape is payroll. If the labour market cracks harder, a 50bp cut remains the joker in Powell's deck.

"But this Fed is no longer a fortress - it's a weather vane, spun by political gusts rather than economic bearings. What the White House wants heading into the mid-term election cycle is obvious: cheaper mortgages to juice housing, and stoked consumer sentiment to fuel voter optimism. With payroll revisions revealing the Fed is already 50bp late, the central bank has slipped into campaign choreography.

"The market knows it - the question isn't if the Fed cuts, it's how quickly politics pushes them deeper."

The US Senate will hold a confirmation vote tonight to appoint Council of Economic Advisers Chair Stephen Miran to the Federal Reserve Board, likely giving rate-cut seekers another ally at the FOMC.

US Treasury Secretary Scott Bessent on Monday announced a "framework" agreement that calls for TikTok "to switch to US-controlled ownership".

"It's between two private parties, but the commercial terms have been agreed upon," he added after a second day of talks with Chinese Vice Premier He Lifeng in Madrid.

In a social media post, Trump said a deal was reached with a "certain company that young people in our Country very much wanted to save. They will be very happy!"

Trump's 90-day extension to his initial pause on the forced sale, or banning, of TikTok is set to expire on Wednesday.

Trump said he would speak to Chinese President Xi on Friday.

Amid the talks, Beijing opened an anti-dumping probe into some integrate circuit chips originating from the US. It also said it will launch an investigation into whether the US had discriminated against the Chinese chip sector.

Then on Monday, China said an investigation found Nvidia had run afoul of the country's antitrust rules, and vowed an additional probe.

The statement did not provide further details about Nvidia's alleged legal violations or the further probe.

Nvidia shares closed marginally lower.

Also on Truth Social, Trump on Monday proposed changing Securities & Exchange Commission rules to require companies to report earnings semi-annually instead of quarterly, which would "save money, and allow managers to focus on properly running their companies".

Trump added: "Did you ever hear the statement that, 'China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis??? Not good!!!'."

Ahead of Trump's state visit this week, the UK government on Monday said Britain and the US will sign an agreement to speed up the development of new nuclear power projects.

Under the agreement, Britain and the US will use each other's safety assessments on new reactor designs, a move expected to cut the time to obtain a nuclear project license to two years, down from three to four years.

Several commercial deals were also announced Monday, including between US firm X-energy and British Gas owner Centrica to build up to 12 advanced modular reactors in Hartlepool, northeast England.

US firm Holtec, France's EDF and British firm Tritax Big Box REIT are set to develop data centres powered by small modular reactors.

Over the weekend, The Sunday Times said Alphabet's Google is in discussions to create a giant data centre in the northeast of England, calling talks with brownfield regeneration initiative Teesworks "finely poised".

The Sunday Times said a deal being agreed before Christmas was a possibility. However, it warned "an agreement could yet fall through."

Alphabet ended up 4.3%.

More certain, Sky News reported on Saturday, is a GBP500 million investment by BlackRock in UK data centres.

The outlet said BlackRock plans to announce a joint venture with internet infrastructure investor Digital Gravity Partners during President Trump's visit.

BlackRock closed down 0.7%.

An SEC filing showed Tesla CEO Elon Musk on Friday acquired 2.6 million Tesla shares at prices ranging from USD371 to USD396, totalling about USD1 billion.

The purchase followed Tesla's proposal of a compensation package for Musk that could top USD1 trillion.

Tesla Chair Robyn Denholm has made several business media appearances in recent days, defending the pay package.

"He is a generational leader," Denholm said Friday on Bloomberg. "There aren't any other people out there like Elon who can actually lead the company over the next decade or so."

Tesla closed up 3.6%.

Late Monday, the pound traded at USD1.3608, up from USD1.3564 at the New York close on Friday. The euro rose to USD1.1771, from USD1.1736. Against the yen, the dollar was at JPY147.34, down from JPY147.54 on Friday.

The US 10-year Treasury was at 4.04% late Monday, down from 4.06% on Thursday. The yield on the US 30-year Treasury was at 4.66%, narrowing from 4.68%.

Gold was quoted at USD3,679.41 an ounce late on Monday, up from USD3,645.98 on Friday.

Brent was quoted at USD67.01 a barrel on Monday, up from USD66.45 on Friday. West Texas Intermediate rose to USD62.75 from USD62.09.

In Europe, the FTSE 100 gave back 0.1% in London. The CAC 40 in Paris closed up 0.9%. The DAX 40 in Frankfurt rose 0.2% in Frankfurt.

In China, the Shanghai Composite lost 0.3%, while the Hang Seng Index gained 0.2% in Hong Kong. The S&P/ASX 200 eased 0.1% in Sydney.

Japanese markets were closed for Respect for the Aged Day.

Tuesday's global economic calendar has the start of the FOMC meeting, alongside US industrial production, retail sales and export and import prices as well as eurozone industrial production.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: FTSE 100 red ahead of expected US rate cut

2025-09-15T16:20:44Z

Stock prices in London closed mostly lower on Monday, as markets mainly price in an interest rate cut from the US Federal Reserve, and a hold from the Bank of England, this week.

"A 25bp [US rate] cut is almost fully priced in, with three cuts for the year largely anticipated," Pepperstone's Dilin Wu said. "Against this backdrop, the 10-year US Treasury yield briefly fell below 4%, marking a five-month low."

The yield on the US 10-year Treasury was quoted at 4.04%, narrowing from 4.08%. The yield on the US 30-year Treasury was quoted at 4.65%, narrowing from 4.70%.

The FTSE 100 index closed down 6.26 points, 0.1%, at 9,277.03. The FTSE 250 ended up 21.19 points, 0.1%, at 21,621.87, and the AIM All-Share closed down 1.05 points, 0.1%, at 767.39.

The Cboe UK 100 was down 0.2% at 929.25, the Cboe UK 250 was up 0.1% at 18,959.22, and the Cboe Small Companies was down 0.4% at 17,139.39.

J Sainsbury shares on the FTSE 100 ended 3.5% higher.

The supermarket chain rebuffed an approach from JD.com Inc to buy Argos, but analysts say that the fact it did not rule out a sale of the retailer suggests it may be open to more offers.

"The firing gun has effectively been triggered on the sale of Argos," AJ Bell analyst Danni Hewson commented. "Sainsbury's might have rejected an offer from Chinese retailer JD, but the fact it hasn't come out and said the business isn't for sale at any price is telling."

Shore Capital Markets analysts, meanwhile, said they could "see why [Sainsbury] may engage with a firm like JD.com, which is a multi-functional international entity embracing retail, logistics, real estate, and healthcare.

"That said, to us Sainsbury is absolutely right to walk away from a potential deal that is not in the best interests of all of its stakeholders."

On the FTSE 250, AO World closed up 14%.

The Bolton, England-based firm said it expects full-year profit at the top half of its target range, as it "continues to perform strongly".

For the six months ending September 30, AO World expects revenue 13% ahead of the previous year. Revenue in its B2C division is expected to rise by 11% on-year. The firm also backed its full-year outlook for B2C growth in the double-digits, but raised its minimum profit target, now expecting pretax profit between GBP45 million and GBP50 million. Also, AO World said it will launch its first-ever buyback worth up to GBP10 million.

"Like an ageing fridge freezer, AO has made a lot of noise during its time on the stock market without performing that well," AJ Bell's Russ Mould commented.

"However, the online white goods seller is providing investors with cause for optimism in its latest update...The decision to unveil a share buyback speaks to management's confidence in the outlook and the company's strong financial position."

Pinewood Technologies ended up 0.5%.

The Birmingham-based, automotive sector-focused software provider is joining the FTSE 250, effective from Tuesday.

On AIM, Ingenta finished 15% higher.

The provider of software and services to the publishing industry said revenue in the six months to June 30 rose 1.6% on-year to GBP5.2 million from GBP5.1 million. Its pretax profit jumped 96% to GBP1.2 million, and Ingenta increased its dividend by 17% to 1.75 pence.

Litigation Capital Management lost 17%, after ending its investment in a class action brought on behalf of commercial fishermen against Gladstone Ports Corp.

The dispute financing solutions-focused asset manager said it believes the claimants' initial solicitors overcharged for legal services. It is seeking reimbursement and is investigating a claim for breach of contract and negligence.

The company also announced a formal strategic review.

In European equities on Monday, the CAC 40 in Paris closed up 0.9%, while the DAX 40 in Frankfurt ended up 0.2%.

The pound was quoted higher at USD1.3597 at the time of the London equities close on Monday, compared to USD1.3551 on Friday. The euro stood at USD1.1765, higher against USD1.1719. Against the yen, the dollar was trading lower at JPY147.34 compared to JPY147.83.

Stocks in New York were mostly higher. The Dow Jones Industrial Average was down 0.41 points, the S&P 500 index up 0.5%, and the Nasdaq Composite up 0.9%.

"Most of the recent progress made by US stocks has been founded on an expectation that a US rate cut is coming on Wednesday, but UK rates are expected to remain unchanged," Mould said. "Expectations for a US rate cut have been heavily influenced by the Fed's messaging. The big unknown is whether this will be a standard cut or a bumper one.

"The other big draw this week is likely to be Trump's state visit to the UK, which has already been heralded by news of tie-ups between companies on both sides of the Atlantic."

Meanwhile, the US has announced a "framework" deal with China to resolve their dispute over TikTok that calls for the Chinese-owned app to pass to US-controlled ownership.

"We have a framework for a TikTok deal," US Treasury Secretary Scott Bessent told reporters, adding it calls for the app "to switch to US-controlled ownership".

"It's between two private parties, but the commercial terms have been agreed upon," he said.

Bessent declined to give further details, saying US President Donald Trump and Chinese President Xi will speak on Friday to "complete" the agreement.

Tesla climbed 6.5%.

CEO Elon Musk bought about USD1 billion worth of shares in the car company, according to a regulatory filing with the Securities & Exchange Commission. The purchase came the same month Tesla unveiled a proposed compensation package for Musk that could top USD1 trillion, if he delivers on his vision for stratospheric growth from new technologies.

Brent oil was quoted at USD67.37 a barrel at the time of the London equities close on Monday, down from USD67.52 late Friday.

Gold was quoted at USD3,668.27 an ounce, higher against USD3,644.61.

The biggest risers on the FTSE 100 were Centrica, up 6.55p at 166.90p, J Sainsbury, up 10.60p at 317.80p, Segro, up 19.10p at 629.10p, Endeavour Mining, up 76.00p at 2,894.00p, and Marks & Spencer, up 9.00p at 347.20p.

The biggest fallers on the FTSE 100 were AstraZeneca, down 380.00p at 11,414.00p, Airtel Africa, down 4.60p at 223.80p, BT Group, down 3.90p at 201.90p, GSK, down 24.50p at 1,479.00p, and ConvaTec, down 3.80p at 232.20p.

On Tuesday's economic calendar, highlights include UK unemployment, and US retail sales and industrial production.

On Tuesday's UK corporate calendar, City Of London Investment Trust and Kier Group report full-year results.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

FOREX: Dollar starts week down as Fed rate cut "almost a done deal"

2025-09-15T14:04:21Z

The pound was stronger against the greenback on Monday afternoon ahead of the week's interest rate calls, with the US Federal Reserve expected to cut and the Bank of England to stand pat.

Compared with the dollar, sterling climbed to USD1.3606 on Monday afternoon from USD1.3529 on Friday.

StoneX analyst Fawad Razaqzada called GBP/USD the "currency pair of the week" and said he will maintain a "bullish" outlook ahead of various releases, including the Fed and BoE rate decisions on Wednesday and Thursday respectively.

"A 25bp [US Fed] cut is almost a done deal, but what traders will really hang on is the tone of [Chair Jerome Powell's] press conference and the dot plot projections," Razaqzada commented. "If the Fed signals that more cuts are on the way – or admits that a 50bp move was seriously considered – that could be the green light for another leg lower in the dollar or higher in GBP/USD."

Versus the euro, the pound edged up to EUR1.1560 from EUR1.1555. Against the dollar, the euro firmed to USD1.1763 from USD1.1704 on Friday.

Versus the yen, the dollar bought JPY147.26, down from JPY147.99 ahead of the interest rate decision from the Bank of Japan on Friday this week.

Against its Canadian counterpart, the US dollar softened to CAD1.3831 from CAD1.3852.

Versus the Swiss franc, the dollar lowered to CHF0.7949 from CHF0.7983.

And against the Australian dollar, the buck fell to AUD1.5008 from AUD1.5071.

The Dollar Index stood at 97.37 points, fading from 97.78 a day prior.

US President Donald Trump renewed his call on Monday for a large interest rate cut, saying in a post to his Truth Social platform that Powell "must cut interest rates, now, and bigger than he had in mind".

He also referred to Powell as "too late" in lowering rates, a moniker the president has repeatedly used in recent times.

Political pressure also clouds the bank's meeting with Stephen Miran, who chairs the White House Council of Economic Advisers, potentially confirmed as a Fed governor hours before Fed's key policy meeting is due to begin.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Donald Trump urges for major rate cut as Fed meeting nears

2025-09-15T13:35:07Z

President Donald Trump renewed his call Monday for a large interest rate cut, furthering pressure on the independent US central bank a day before it opens a key policy meeting.

In a post to his Truth Social platform, Trump said that Federal Reserve Chair Jerome Powell "must cut interest rates, now, and bigger than he had in mind."

He also referred to Powell as "too late" in lowering rates, a monicker the president has repeatedly used in recent times.

The Fed is widely anticipated to slash the benchmark lending rate by 25 basis points at the end of its two-day meeting on Wednesday, and all eyes are on Powell's comments after the gathering.

The move to lower rates would likely boost the world's biggest economy at a time when its jobs market is weakening, fueling fears of a downturn.

This would be the first rate cut of 2025, as the Fed has held interest rates steady since its last reduction in December while officials monitored the effects of Trump's wide-ranging tariffs on inflation.

While inflation remains notably above the central bank's longer-run two-percent goal, the hit from tariffs appear limited for now.

This gives policymakers some room to pivot to shoring up the labor market, as they walk a tightrope between maintaining stable prices and maximum employment.

Political pressure also clouds the bank's meeting with Stephen Miran, who chairs the White House Council of Economic Advisers, potentially confirmed as a Fed governor just hours before the meeting is due to begin.

The US Senate is due to vote to advance his nomination on Monday.

source: AFP

China threatens consequences after Trump's push for NATO tariffs

2025-09-15T12:48:44Z

China has threatened consequences after US President Donald Trump demanded that all NATO countries impose high tariffs on Chinese goods and stop buying Russian oil.

If China's interests are harmed, the People's Republic will take countermeasures and defend its security and development interests, Foreign Ministry spokesman Lin Jian said on Monday in Beijing.

The behaviour of the US is a "typical case of unilateral harassment," he said.

The Ministry of Commerce said in a separate statement that China hopes that the US will exercise caution in its words and actions and resolve differences in trade and economics through dialogue.

Trump had previously linked further US sanctions on Russia to all NATO countries imposing tariffs of 50-100% on Chinese imports and no longer buying Russian oil. He said he believes this would help end the war in Ukraine.

Trump's aim is to persuade China to use its influence on Moscow to bring Russia to the negotiating table. The proposed tariffs would be lifted when the war between Russia and Ukraine ends, he said.

China has remained neutral in the war in Ukraine, but is considered a close and influential partner of Moscow. Beijing has put forward proposals for resolving the war, which Ukraine has rejected because they are mainly based on Russia's demands.

Trump made his comments in parallel with the ongoing talks between China and the US in Spain, where representatives of the world's two largest economies are discussing their trade relations.

The tariff dispute between the US and China escalated earlier this year, with both countries imposing surcharges of more than 100% on goods imported from each other's countries. A pause in the dispute remains in place until November.

source: dpa

COMMODITIES: Gold weaker before US Fed decision; oil under pressure

2025-09-15T11:31:48Z

Gold softened on Monday as the precious metal consolidated before a US interest rate decision, while oil declined as traders monitored developments around the Russia-Ukraine war.

Spot gold was quoted at USD3,642.37 an ounce on Monday afternoon in London, down from USD3,647.54 at the same time on Friday. Silver eased to USD42.16 an ounce from USD42.20.

The yellow metal remained above the USD3,600 an ounce market at the start of the new week. It hit USD3,674.7 an ounce on Tuesday last week for the first time ever, following a series of records over the past two weeks.

"With expectations of a Fed rate cut and ongoing geopolitical tensions, gold has settled into a high-level consolidation," Pepperstone analyst Dilin Wu said.

The US Federal Reserve is widely expected to lower its lending rates on Wednesday, in response to a weaker labour market.

"Over the past week, gold has seen alternating bullish and bearish pressure, maintaining a high-level range," Wu said, adding: "Moderately soft US inflation data, confirmation of a September Fed rate cut, and persistent geopolitical tensions have supported the bulls."

Kudotrade analyst Konstantinos Chrysikos cautioned that gold could face some selling pressure if investors move to profit-taking mode after last week's record highs.

But, Chrysikos noted, the metal remained firmly supported near peak levels, underpinned by expectations of Fed monetary policy easing and strong institutional demand.

"Geopolitical tensions also underpinned sentiment," Kudotrade's Chrysikos said, explaining: "In the Middle East, tensions continue to mount. Meanwhile, Russia's assaults in Ukraine extended into Nato's borders after Romania reported another drone incursion."

In other commodities, Brent crude oil was priced at USD66.99 a barrel on Monday, down from USD67.40 on Friday. West Texas Intermediate fell to USD62.69 a barrel, compared to USD63.20.

Oil prices retreated after starting Monday's session on a positive note.

Earlier, the oil market rose following claims by Ukraine that recent drone attacks affected Russia's two key oil hubs in the Baltic Sea, ING analysts Warren Patterson and Ewa Manthey said.

"Recent reports suggest that the latest strikes temporarily suspended crude operations at Primorsk port, Russia's largest oil-loading port, at the end of last week," Patterson and Manthey said.

In addition, US President Donald Trump asked US allies to stop buying energy from Russia, and threatens to impose up to 100% tariffs on India and China that refuse to stop buying the cheap Russian oil, Swissquote analyst Ipek Ozkardeskaya said.

Traders needed a "major geopolitical shakeup" to sustainably lift oil prices at a time Opec+ is willing to bring more oil to the market, Ozkardeskaya said.

In other metals, platinum was priced at USD1,397.91 an ounce on Monday, down from USD1,398.45 on Friday. Palladium was quoted at USD1,208.66 an ounce, down from USD1,209.26.

In base metals, the copper price inched up to USD10,070.00 per tonne from USD10,057.00. Aluminium rose to USD2,695.50 from USD2,679.00.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

IN BRIEF: Tesla shares rise premarket as CEO Musk adds to holdings

2025-09-15T11:24:43Z

Tesla Inc - Austin, Texas-based electric carmaker - Chief Executive Elon Musk acquires 2.5 million shares in the company, worth USD1 billion, on Friday last week, according to an SEC filing on Monday. The share purchases were made in the range of USD371.9 to USD396.36, and were done via a trust. Earlier in September, Tesla unveiled a proposed compensation package for Musk that could top USD1 trillion should the CEO deliver a market capitalisation of at least USD8.5 trillion by 2035.

Current stock price: USD395.94. However, shares rose 7.2% in pre-market dealings to USD424.53 in New York.

12-month change: up 75%

By Christopher Ward, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: FTSE 100 struggles but pound tops USD1.36

2025-09-15T11:07:31Z

Stock prices in Europe were largely on the up on Monday, though the FTSE 100 underwhelmed, while the dollar was on the decline ahead of an expected US Federal Reserve rate cut.

The FTSE 100 index fell just 1.48 points to 9,281.81. The FTSE 250 rose 109.08 points, 0.1%, at 21,734.48, and the AIM All-Share was up 2.09 points, 0.3%, at 770.53.

The Cboe UK 100 was down 0.1% at 930.30, the Cboe UK 250 was up 0.7% at 19,083.15, while the Cboe Small Companies was flat at 17,192.72.

In Paris, the CAC 40 was 1.1% higher. In Frankfurt, the DAX 40 was 0.4% higher. French stocks shook up Fitch Ratings downgrading France's credit rating from AA- to A+.

The pound rose to USD1.3608 on Monday afternoon, from USD1.3551 at the time of the London equities close on Friday. The euro climbed to USD1.1756 from USD1.1719. Versus the yen, the dollar faded to JPY147.32 from JPY147.83.

The yield on the 10-year US Treasury ebbed to 4.06% from 4.08%. The yield on the 30-year was at 4.68% from 4.70%.

In New York, the Dow Jones Industrial Average is called up 0.2%, the S&P 500 and Nasdaq Composite are called up 0.1%.

The Federal Reserve announces a rate decision on Wednesday, the week's main event. It is the turn of the Bank of England on Thursday.

"The Fed will almost certainly deliver a 25bp rate cut on Wednesday to lower the target range for its funds rate from 4.25-4.50% to 4.00-4.25%. The crucial point in our view is whether the Fed frames this cut as a reactive response or a proactive move. Is the Fed easing its stance because it fears a future collapse in the labour market, or because recent downward revisions to nonfarm payrolls revealed that the labour market already needs rate cuts? If Fed Chair Jerome Powell's press conference, the Fed statement or the September economic projections point to the latter, then the Fed would implicitly suggest that it has acted 'too late' and fallen behind the curve – a reactive cut," Berenberg analyst Atakan Bakiskan commented.

"Such a scenario could push the market to price in more rate cuts than the 75bp for the rest of the year and 150bp by end-2026 that is currently priced in."

The BoE is expected to stand pat, but there is some UK data on the horizon before its decision.

Ebury analyst Enrique Diaz-Alvarez commented: "This week's data deluge will go a long way towards clarifying the state of the UK economy. We expect that the jobs data and inflation report will confirm that the UK is in the middle of a stagflationary process, with inflation remaining far above Bank of England targets while the labour market continues to slow.

"The Bank of England will keep rates unchanged on Thursday, as it continues to place greater emphasis on the inflation overshoot than the cooling in Britain's jobs market. We are bracing for a 7-2 vote, and forward guidance that acts to dampen expectations for cuts during the remainder of the year."

A barrel of Brent fell to USD67.02 on Monday afternoon from USD67.52 at the time of the London equities close on Friday. Gold faded to USD3,642.81 an ounce from USD3,644.61.

In London, Sainsbury's shares rose 4.7%. It has ended its talks to sell Argos to Chinese e-commerce firm JD.com.

It said talks had collapsed as JD.com's terms and commitments are "not in the best interests of Sainsbury's shareholders, colleagues and broader stakeholders".

It comes just 24 hours after announcing it was seeking a deal that could "accelerate Argos' transformation".

In a statement on Sunday, Sainsbury's said: "Following the media speculation on 13 September regarding discussions between J Sainsbury PLC (Sainsbury's) and JD.com Inc (JD.com) about a potential sale of Home Retail Group Limited (Argos), JD.com has communicated that it would now only be prepared to engage on a materially revised set of terms and commitments which are not in the best interests of Sainsbury's shareholders, colleagues and broader stakeholders."

It said it still expects to achieve around GBP1 billion in retail underlying operating profit and more than GBP500 million in retail free cash flow in the 2025/26 financial year.

BT was down 2.9%. It has entered a "relationship agreement" with existing shareholder Bharti Global, with two representative of the latter being added to the telecommunications firm's board. Sunil Bharti Mittal and Gopal Vittal are to join the BT board as non-independent non-executive directors with effect Monday.

"We're delighted to welcome Sunil and Gopal to the Board of BT. They bring significant experience and global perspectives in the telecoms industry, and we look forward to their contribution to the board and to the future success of BT Group," BT Chair Adam Crozier said.

Under the terms of a relationship agreement, Bharti is allowed to nominate two people to the BT board for as long as it owns 20% or more of the London listing. If it owns at least 10%, it can nominate one.

In August of last year, Bharti Global struck a deal to acquire just under 25% of BT from Altice.

Also putting pressure on the FTSE 100, its largest constituent AstraZeneca was down 3.0%, the worst performer. It has paused a planned GBP200-million expansion of its research site in Cambridge, eastern England, in the latest blow for inward investment in the UK.

It follows the company in January abandoning plans to build a GBP450-million vaccine plant in northwest England and comes days after US pharma group Merck & Co dropped plans to build a USD1.4-billion research centre in Britain.

AO World jumped 12%, the best FTSE 250 performer. It expects annual profit at the top half of its guidance range, as it "continues to perform strongly". The electricals retail reported that group revenue in the first half to September 30 is expected to rise 13% on-year. B2C Retail revenue is expected to increase by 11%, it added. AO World still expects annual double-digit B2C growth but now expects adjusted pretax profit between GBP45 million and GBP50 million, the bottom end of its range lifted from GBP40 million.

In addition, it announced its first-ever buyback, "given the group's strong cash generation and the board's ongoing confidence in its future performance".

AO World will buy back up to GBP10 million in shares. It reports half-year results on November 25.

S4 Capital slumped 13% as the advertising firm announced another cut to its annual forecast amid "continued wider market uncertainty".

The firm, however, reported that it will consider "an enhanced final dividend for 2025" if trading improves in the second half.

"Market conditions in the first half of 2025 reflect the continuing impact of, to say the least, volatile global macroeconomic conditions along with the unsettling effect of tariff negotiations. As a result, clients remain generally cautious given the uncertainty, with technology clients, which account for almost half our revenue, in particular, continuing to prioritise capital expenditure on expanding AI capacity. Our Technology Services Practice faced longer sales cycles and continued to be affected by a reduction in one of our larger relationships, although this will cycle out in the second half of the year," Executive Chair Martin Sorrell said.

"We expect an improved net revenue performance in the second half of the year, aided by the phasing of revenue from new business, particularly from General Motors, Amazon, T-mobile and a leading US-based FMCG and seasonality."

It now expects a like-for-like net revenue decline of mid-single digits for 2025, its outlook cut from a low single digits fall. It still expects an operational Ebitda "broadly similar to 2024".

Its target range for net debt at the year-end remains at GBP100 million to GBP140 million.

S4 Capital added: "The board will consider approving an enhanced final dividend for 2025, if the improved second half performance and liquidity targets are delivered."

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UK, US to sign deal to fast-track nuclear power projects

2025-09-15T10:11:05Z

Britain and the US will sign an agreement to speed up development of new nuclear power projects during President Donald Trump's state visit, the UK government said Monday.

The partnership promises faster regulatory approval and several new private sector investment deals for nuclear projects, as the UK strives to meet net zero and energy security targets.

The announcement comes as Trump arrives in Britain late Tuesday for a historic second state visit, having been hosted by Queen Elizabeth II in 2019 during his first term.

Prime Minister Keir Starmer said the partnership sets the UK "on course to a golden age of nuclear".

The UK has refocused on shoring up nuclear power since the start of the war in Ukraine, in the name of energy security and faced with a fleet of ageing power stations.

Britain said the partnership agrees to "eliminate any last dependencies on Russian nuclear material by the end of 2028 – further squeezing (Russian leader Vladimir) Putin out of the energy market."

Several commercial deals were also announced Monday, including between US firm X-energy and British Gas owner Centrica PLC to build up to 12 advanced modular reactors in Hartlepool, northeast England.

US firm Holtec, France's EDF and British firm Tritax are set to develop data centres powered by small modular reactors.

SMRs are aimed at cutting the costs and complexity of building nuclear power stations.

The partnership also includes enhanced cooperation between the two countries on experimental programmes for nuclear fusion, a technology aimed at providing emissions-free electricity without nuclear waste.

In June, Britain pledged billions of pounds of investment to invigorate its nuclear energy sector, including in the new Sizewell C nuclear power plant.

Centrica shares rose 2.9% to 165.00 pence each on Monday morning in London, while Tritax Big Box REIT PLC shares were 1.6% higher at 137.73p each.

source: AFP

China says Nvidia "violated" antitrust law, vows extra probe

2025-09-15T09:22:42Z

China said Monday that an investigation found chip firm Nvidia Corp had run afoul of the country's antitrust rules, and vowed an additional probe just after trade talks between Beijing and Washington entered a second day.

Beijing – which announced the investigation in December – is currently engaged in an intense contest with the US for supremacy in the critical field of semiconductors.

"Following a preliminary investigation, it has been determined that NVIDIA Corporation has violated the Anti-Monopoly Law of the People's Republic of China," a statement from the State Administration for Market Regulation, Beijing's top market watchdog, said.

The SAMR "has therefore decided to conduct a further investigation into the matter in accordance with the law", it added.

The statement did not provide further details about Nvidia's alleged legal violations or the further probe.

Santa Clara, California-based AI powerhouse Nvidia reported earnings last month that raised concerns about its business in China, which has come under increasing scrutiny in Washington as tensions over trade and geopolitics mount.

About an hour before the SAMR announcement, officials began a second consecutive day of bilateral trade talks in Madrid, seeking to narrow differences on a range of issues that have soured ties.

Nvidia shares were 3.0% lower in pre-market trading at USD172.57 each on Monday in New York.

source: AFP

US-China trade talks resume in Madrid with focus on technology

2025-09-15T08:38:20Z

China and the US resumed trade talks on Monday in Madrid, seeking to narrow differences on trade and technology that have strained relations between the world's two largest economies.

Talks restarted at Spain's foreign ministry, a day after delegations led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng opened the latest round of discussions. The meetings are expected to continue through Wednesday.

Officials from the two nations were seen entering the headquarters of the ministry on Monday morning, according to an AFP reporter at the scene.

The agenda includes two of the thorniest issues in the bilateral relationship: President Donald Trump's threat of steep tariffs on Chinese imports and Washington's demand that TikTok be sold to a non-Chinese owner or face a US ban by September 17.

Trade tensions escalated sharply earlier this year, with tit-for-tat tariffs reaching triple digits and snarling supply chains.

Both governments later agreed to roll back duties to 30% on US goods and 10% on Chinese exports, but the temporary truce expires in November.

Beijing urged Washington last week to resolve disputes "on the basis of mutual respect and equal consultations."

Over the weekend, China launched investigations into the US semiconductor sector, signalling frictions remain high despite the Madrid talks.

The meetings could lay groundwork for a possible summit between Trump and Chinese leader Xi Jinping later this year.

Until then, negotiators face the challenge of stabilising an uneasy truce while addressing disputes over technology access, tariffs and rare earth exports.

By Noemi Gragera, with Isabel Kua in Beijing

source: AFP

LONDON MARKET OPEN: Mixed trade in Europe ahead of central banks

2025-09-15T08:01:02Z

London's FTSE 100 underperformed as European peers got off to a more confident start on Monday ahead of a busy week for economic data and interest rate decisions.

"It is a big week for central bank meetings with the Fed (Wed), Bank of Canada (Wed), Norges (Thu), Bank of England (Thu) and the Bank of Japan (Fri), listed there in descending order of market-implied rate cut probability." analysts at Lloyds Bank commented.

"Aside from the central banks a flurry of UK data is slated though labour market news (Tue) is expected to be subordinate to August inflation data (Wed), both given the data quality issues and the MPC focus on near-term CPI."

The FTSE 100 index fell 6.26 points, 0.1%, at 9,277.03. The FTSE 250 rose 61.89 points, 0.3%, at 21,687.29, and the AIM All-Share was up 2.16 points, 0.3%, at 770.60.

The Cboe UK 100 was down 0.2% at 929.22, the Cboe UK 250 was up 0.4% at 19,024.12, but the Cboe Small Companies was 0.1% lower at 17,188.98.

In Paris, the CAC 40 was 0.8% higher. In Frankfurt, the DAX 40 was 0.3% higher.

The pound rose to USD1.3592 on Monday morning, from USD1.3551 at the time of the London equities close on Friday. The euro climbed to USD1.1742 from USD1.1719. Versus the yen, the dollar faded to JPY147.39 from JPY147.83.

"This week's Fed meeting is little more than stagecraft. A 25bp trim is in the bag, with two more this year and another pair next year, pointing toward 3–3.25%. The dot plot will flash across the terminals, but in FX we don't trade the light show — we trade the tape. And the tape is payroll. If the labour market cracks harder, a 50bp cut remains the joker in [Jerome] Powell's deck," SPI Asset Management analyst Stephen Innes commented.

The yield on the 10-year US Treasury ebbed to 4.07% from 4.08%. The yield on the 30-year remained at 4.70%.

In New York on Friday, the Dow Jones Industrial Average lost 0.6%, the S&P 500 ended slightly lower and the Nasdaq Composite a touch higher.

In China, the Shanghai Composite ended down 0.3%, while the Hang Seng Index in Hong Kong was 0.2% higher. Sydney's S&P/ASX 200 lost 0.1%. Financial markets in Tokyo were closed.

China's industrial production and retail sales growth eased in August, while unemployment edged up, the National Bureau of Statistics of China reported Monday.

Industrial production rose 5.2% year-on-year in August, easing from a 5.7% increase in July and below the 5.8% consensus forecast cited by FXStreet.

The NBS data also showed that retail sales climbed 3.4% year-on-year in August, slowing from a 3.7% increase in July and missing the 3.8% forecast.

The urban surveyed unemployment rate in China edged up to 5.3% in August from 5.2% in the preceding month, which NBS attributed to seasonality.

A barrel of Brent fell to USD67.27 on Monday morning from USD67.52 at the time of the London equities close on Friday. Gold faded slightly to USD3,641.02 an ounce from USD3,644.61.

In London, Sainsbury's shares rose 5.0%. It has ended its talks to sell Argos to Chinese e-commerce firm JD.com.

It said talks had collapsed as JD.com's terms and commitments are "not in the best interests of Sainsbury's shareholders, colleagues and broader stakeholders".

It comes just 24 hours after announcing it was seeking a deal that could "accelerate Argos' transformation".

It said it still expects to achieve around GBP1 billion in retail underlying operating profit and more than GBP500 million in retail free cash flow in the 2025/26 financial year.

AO World advanced 7.9%. It expects annual profit at the top half of its guidance range, as it "continues to perform strongly". The electricals retail reported that group revenue in the first half to September 30 is expected to rise 13% on-year. B2C Retail revenue is expected to increase by 11%, it added. AO World still expects annual double-digit B2C growth but now expects adjusted pretax profit between GBP45 million and GBP50 million, the bottom end of its range lifted from GBP40 million.

In addition, it announced its first-ever buyback, "given the group's strong cash generation and the board's ongoing confidence in its future performance".

AO World will buy back up to GBP10 million in shares. It reports half-year results on November 25.

S4 Capital fell 10% as the advertising firm announced another cut to its annual forecast amid "continued wider market uncertainty".

The firm, however, reported that it will consider "an enhanced final dividend for 2025" if trading improves in the second half.

S4 Capital's pretax loss in the first half of 2025 widened to GBP25.1 million from GBP17.2 million, with revenue declining 15% to GBP360.4 million from GBP422.5 million. Net revenue was 13% lower on-year at GBP328.2 million from GBP376.1 million and was down 10% on a like-for-like basis.

Operational earnings before interest, tax, depreciation and amortisation were down 31% to GBP20.8 million from GBP30.1 million.

Looking ahead, it now expects a like-for-like net revenue decline of mid-single digits for 2025, its outlook cut from a low single digits fall. It still expects an operational Ebitda "broadly similar to 2024".

Its target range for net debt at the year-end remains at GBP100 million to GBP140 million.

S4 Capital added: "The board will consider approving an enhanced final dividend for 2025, if the improved second half performance and liquidity targets are delivered."

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UPDATE: Sainsbury ends Argos talks with JD.com, keeps profit outlook

2025-09-15T07:45:53Z

J Sainsbury PLC said on Sunday it has ended talks to sell Argos to Beijing-based e-commerce firm JD.com Inc, citing unfavourable terms.

The supermarket chain confirmed it had "terminated" discussions after JD.com sought to proceed on what Sainsbury's described as a "materially revised set of terms and commitments" that it deemed not in the best interests of shareholders, staff, and other stakeholders.

The move came just a day after Sainsbury's said it was pursuing a deal that could "accelerate Argos' transformation."

Argos is the UK's second-largest general merchandise retailer, operating more than 1,100 collection points and running the country's third most visited retail website.

Sainsbury's added that it continues to see "strong momentum" in its business and remains focused on delivering its 'Next Level' strategy.

It said it still expects to achieve around GBP1 billion in retail underlying operating profit and more than GBP500 million in retail free cash flow in the 2025/26 financial year.

Shares in Sainsbury opened 4.8% higher at 322.00 pence in London on Monday. JD.com shares were 0.2% lower at HKD131.50 in the afternoon in Hong Kong.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON BRIEFING: AO World lifts guidance; S4 Capital cuts outlook

2025-09-15T06:51:28Z

BT announces representatives from Bharti have been added to its board amid a "relationship agreement", AO World will kick off its first buyback and S4 Capital reduced its outlook again.

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

----------

MARKETS

----------

FTSE 100: called to open just 2.4 points higher at 9,285.69

GBP: up at USD1.3558 (USD1.3551 at previous London equities close)

----------

ECONOMICS

----------

The average price tag on a UK home jumped by just over GBP1,500 month-on-month in September as the autumn selling season got under way, according to Rightmove. Across Britain, the typical new seller asking price is GBP370,257 in September, marking a monthly rise of 0.4% or GBP1,517. Despite the September increase in prices, the first since May, the average asking price for a home in Britain is 0.1% or GBP502 lower than a year ago, Rightmove says. It adds that the first annual price drop since January 2024 is the culmination of several months of competitive pricing by new sellers over the summer, with the number of sales being agreed now 4% higher than a year earlier.

----------

BROKER RATINGS

----------

UBS starts Smurfit WestRock with 'neutral' - price target 60 USD

----------

COMPANIES - FTSE 100

----------

Sainsbury's says that it has ended talks to sell Argos to Chinese e-commerce firm JD.com. Talks have collapsed as JD.com's terms and commitments are "not in the best interests of Sainsbury's shareholders, colleagues and broader stakeholders". Sainsbury's says: "Following the media speculation on 13 September regarding discussions between J Sainsbury PLC (Sainsbury's) and JD.com Inc (JD.com) about a potential sale of Home Retail Group Limited (Argos), JD.com has communicated that it would now only be prepared to engage on a materially revised set of terms and commitments which are not in the best interests of Sainsbury's shareholders, colleagues and broader stakeholders. Accordingly, Sainsbury's confirms that it has now terminated discussions with JD.com."

----------

BT Group says it has entered a "relationship agreement" with existing shareholder Bharti Global, with two representative of the latter being added to the telecommunications firm's board. Sunil Bharti Mittal and Gopal Vittal are to join the BT board as non-independent non-executive directors with effect Monday. "We're delighted to welcome Sunil and Gopal to the Board of BT. They bring significant experience and global perspectives in the telecoms industry, and we look forward to their contribution to the board and to the future success of BT Group," BT Chair Adam Crozier says. Under the terms of a relationship agreement, Bharti is allowed to nominate two people to the BT board for as long as it owns 20% or more of the London listing. If it owns at least 10%, it can nominate one. In August of last year, Bharti Global struck a deal to acquire just under 25% of BT from Altice.

----------

COMPANIES - FTSE 250

----------

AO World expects annual profit at the top half of its guidance range, as it "continues to perform strongly". The electricals retail reports that group revenue in the first half to September 30 is expected to rise 13% on-year. B2C Retail revenues expected to increase by 11%, it adds. AO World still expects annual double-digit B2C growth but now expects adjusted pretax profit between GBP45 million and GBP50 million, the bottom end of its range lifted from GBP40 million. In addition, it announces its first-ever buyback, "given the group's strong cash generation and the board's ongoing confidence in its future performance". AO World will buy back up to GBP10 million in shares. It reports half-year results on November 25.

----------

IG Group Chair Mike McTighe will step down before the end of the year, the online trading platform provider says. McTighe, who became chair in February 2020, will stand for re-election at IG's annual general meeting on Wednesday. "The process for appointing a successor is underway," IG adds.

----------

Self-storage company Big Yellow Group has exchanged contracts to acquire a freehold property in the Bethnal Green area of London for GBP10.8 million. Big Yellow will look to develop a 68,000 square foot self storage centre on the site. Chief Executive Officer Jim Gibson says: "This is a high-quality zone 2 London addition to the group's pipeline; opportunities to acquire sites in this location are rare, and there is very little existing self storage supply in the local area."

----------

OTHER COMPANIES

----------

Advertising company S4 Capital announces another cut to its annual forecast amid "continued wider market uncertainty". The firm, however, reports that it will consider "an enhanced final dividend for 2025" if trading improves in the second half. S4 Capital's pretax loss in the first half of 2025 widened to GBP25.1 million from GBP17.2 million, with revenue declining 15% to GBP360.4 million from GBP422.5 million. Net revenue was 13% lower on-year at GBP328.2 million from GBP376.1 million and was down 10% on a like-for-like basis. Operational earnings before interest, tax, depreciation and amortisation were down 31% to GBP20.8 million from GBP30.1 million. "Market conditions in the first half of 2025 reflect the continuing impact of, to say the least, volatile global macroeconomic conditions along with the unsettling effect of tariff negotiations. As a result, clients remain generally cautious given the uncertainty, with technology clients, which account for almost half our revenue, in particular, continuing to prioritise capital expenditure on expanding AI capacity. Our Technology Services Practice faced longer sales cycles and continued to be affected by a reduction in one of our larger relationships, although this will cycle out in the second half of the year," Executive Chair Martin Sorrell says. "We expect an improved net revenue performance in the second half of the year, aided by the phasing of revenue from new business, particularly from General Motors, Amazon, T-mobile and a leading US-based FMCG and seasonality." Looking ahead, it now expects a like-for-like net revenue decline of mid-single digits for 2025, its outlook cut from a low single digits fall. It still expects an operational Ebitda "broadly similar to 2024". Its target range for net debt at the year-end remains at GBP100 million to GBP140 million. S4 Capital adds: "The board will consider approving an enhanced final dividend for 2025, if the improved second half performance and liquidity targets are delivered."

----------

The owner of at-home beauty technology operator Beauty Tech Group confirms it plans to list on the Main Market in London. The initial public offering of Project Glow Topco is expected to occur in October. It will be eligible for inclusion in the FTSE UK indices. Berenberg will act as sponsor, bookrunner and joint financial adviser and NM Rothschild & Sons as joint financial adviser.

----------

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 to edge lower before central banks

2025-09-15T05:53:00Z

Stocks in London are set to open slightly lower on Monday, returning some of last week's progress, ahead of a slew of central bank decisions and economic data in the days ahead.

IG says futures indicate the FTSE 100 to open 6.4 points lower, 0.1%, at 9,276.89 on Monday. The index of London large-caps closed down 14.29 points, 0.2%, at 9,283.29 on Friday. It rose 0.8% last week.

The pound rose to USD1.3566 on Monday morning, from USD1.3551 at the time of the London equities close on Friday. The euro climbed to USD1.1730 from USD1.1719. Versus the yen, the dollar faded to JPY147.43 from JPY147.83.

The yield on the 10-year US Treasury ebbed to 4.07% from 4.08%. The yield on the 30-year narrowed to 4.68% from 4.70%.

In New York on Friday, the Dow Jones Industrial Average lost 0.6%, the S&P 500 ended slightly lower and the Nasdaq Composite a touch higher.

"Markets didn't do especially much on Friday, in a day that felt like the 'calm before the storm', with a monster docket ahead this week, including 5 G10 policy decisions, and a data deluge on both sides of the pond," Pepperstone analyst Michael Brown commented.

"Five central bank decisions are due across G10. The Fed will deliver a 25bp cut on Wednesday, though there will likely be both dovish dissents preferring a larger 50bp move, and hawkish dissents preferring to hold rates steady. Given those divisions, Powell is likely to emphasise optionality and the post-meeting press conference, while the updated dot plot should again point to a total of 50bp easing this year. A move lower in the median dot, to show 75bp of total easing this year, would require 8 members shifting their estimate lower, which seems a very tall order indeed."

Elsewhere, there are decisions from the Bank of England and Bank of Japan this week. Both are expected to leave rates unmoved.

In China, the Shanghai Composite was down 0.1% in afternoon trade, while the Hang Seng Index in Hong Kong was 0.3% higher. Sydney's S&P/ASX 200 was down 0.2%.

China's industrial production and retail sales growth eased in August, while unemployment edged up, the National Bureau of Statistics of China reported Monday.

Industrial production rose 5.2% year-on-year in August, easing from a 5.7% increase in July and below the 5.8% consensus forecast cited by FXStreet.

The NBS data also showed that retail sales climbed 3.4% year-on-year in August, slowing from a 3.7% increase in July and missing the 3.8% forecast.

The urban surveyed unemployment rate in China edged up to 5.3% in August from 5.2% in the preceding month, which NBS attributed to seasonality.

ING analysts commented: "Another month of disappointing Chinese data across the board may be creating a sense of deja vu, repeating last year's slowdown around this same time. We expect the recent softening of momentum to strengthen the case for unveiling new stimulus ahead."

A barrel of Brent fell to USD67.30 on Monday morning from USD67.52 at the time of the London equities close on Friday. Gold faded slightly to USD3,643.91 an ounce from USD3,644.61.

Monday's local corporate calendar has half-year results from advertising firm S4 Capital.

The economic events calendar has a eurozone trade balance reading at 1000 BST.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

China's unemployment rate edges up to 5.3% in August

2025-09-15T03:34:27Z

China's industrial production and retail sales growth eased in August, while unemployment edged up, the National Bureau of Statistics of China reported Monday.

Industrial production rose 5.2% year-on-year in August, easing from a 5.7% increase in July and below the 5.8% consensus forecast cited by FXstreet.

By sector, the value added of mining grew 5.1% year-on-year, and manufacturing rose 5.7%. Meanwhile, the production of electricity, heat power, gas and water increased 2.4%.

The NBS data also showed that retail sales climbed 3.4% year-on-year in August, slowing from a 3.7% increase in July and missing the 3.8% forecast.

The urban surveyed unemployment rate in China edged up to 5.3% in August from 5.2% in the preceding month, which NBS attributed to seasonality.

Stephen Innes, managing partner at SPI Asset Management, commented: "The Chinese economy is moving more like a stalled growth engine than even an old handcar trolley — each pump eventually produces less forward motion...What should be the engine pulling the Asia and global train now looks more like a machine stuck in low gear, unable to build the momentum to climb the next hill."

By Elijah Dale, Alliance News senior reporter Asia-Pacific

Comments and questions to newsroom@alliancenews.com

ANZ faces record AUD240 million penalty for widespread misconduct

2025-09-15T01:48:03Z

ANZ Group Holdings Ltd on Sunday said it has agreed to pay penalties totalling AUD240 million, approximately USD159.6 million, after admitting widespread misconduct in several investigations.

The Melbourne, Australia-based bank has entered into an agreement with the Australian Securities & Investments Commission to resolve matters relating to its Australian Markets and Australia Retail businesses that were subject to separate investigations by the regulator.

ASIC Chair Joe Longo said: "The total penalties across these matters are the largest announced by ASIC against one entity and reflect the seriousness and number of breaches of law, the vulnerable position that ANZ put its customers in and the repeated failures to rectify crucial issues."

"The issues we have seen reflect serious inadequacies across multiple levels and multiple divisions of ANZ and a clear failure to manage non-financial risk," ASIC Deputy Chair Sarah Court added.

The penalties remain subject to consideration and approval by Australia's Federal Court.

If approved, ANZ will be fined AUD85 million for its role in a AUD14 billion treasury bond issuance that took place in April 2023.

"Instead of trading gradually throughout the day to limit market impact, ANZ sold a significant volume of 10 year Australian bond futures around the time of pricing which placed undue downward price pressure on the bond price.

"ANZ knew its trading could expose its client to significant risk of harm, but did not disclose to its client that ANZ still had significant volumes to sell before pricing nor provide its client an opportunity to consult with ANZ about delaying pricing. This denied the government an opportunity to protect itself and the public interest," ASIC explained.

ANZ commented: "In relation to ANZ's role as duration manager, ASIC has not alleged ANZ engaged in market manipulation or over-hedging. All trading undertaken by ANZ as duration manager was to hedge the risk borne by it in connection with that role on this transaction.

"It is ANZ's view that no loss was caused to the Commonwealth from its trading as duration manager. However, given ANZ could have executed its role as duration manager with better communication, ANZ has offered to pay the [Australian Office of Financial Management] the revenue it earned as duration manager as a goodwill gesture."

ANZ could also pay a AUD40 million penalty for incorrectly reporting its bond trading data to the Australian government by overstating the volumes by tens of billions of dollars over a period of almost two years.

One AUD40 million fine is the result of the bank's failure to pay introductory bonus interest on some Online Saver accounts and displaying inaccurate rates between July 2013 and January 2024, while another AUD40 million fine relates to a breach of obligation when handling the hardship notices of 488 customers between May 2022 and September 2024.

The agreement further stipulates a AUD35 million penalty to refund fees charged to thousands of dead customers from July 2019 to June 2023, and for not responding to loved ones dealing with the estates of the deceased within a required time frame.

Chief Executive Officer Nuno Matos commented: "The failings outlined are simply not good enough and they reinforce the case for change. It is my expectation that we see measurable improvements across the bank to better protect and care for our customers and to create a more sustainable business."

ANZ shares were down 0.4% at AUD33.04 in Sydney on Monday morning.

By Elijah Dale, Alliance News senior reporter Asia-Pacific

Comments and questions to newsroom@alliancenews.com

Trump demands NATO halt Russia oil purchases before US sanctions

2025-09-14T09:10:15Z

US President Donald Trump said Saturday he was ready to sanction Moscow, but on the condition that all NATO allies agree to completely halt purchases of Russian oil and implement their own sanctions.

He also suggested members of the transatlantic alliance consider slapping tariffs of 50% to 100% on China as a way to help end Russia's war in Ukraine.

"I am ready to do major Sanctions on Russia when all NATO Nations have agreed, and started, to do the same thing, and when all NATO Nations STOP BUYING OIL FROM RUSSIA," Trump said in a post on his Truth Social platform, which he described as a letter to all NATO nations and the world.

Trump has repeatedly threatened Russia with additional sanctions – including last weekend after the Kremlin unleashed its biggest-ever aerial barrage against Ukraine – as a way to hit at revenue Moscow needs for its grinding war.

But so far he has failed to follow through, frustrating Kyiv.

The president, who met his Russian counterpart Vladimir Putin last month at a summit in Alaska, branded NATO nations' purchase of Russian oil "shocking" and said it weakens their bargaining power over Moscow.

"Anyway, I am ready to 'go' when you are. Just say when?"

Trump also raised the prospect of NATO imposing tariffs on China, which is believed to have boosted strategic cooperation with Moscow and held a high-profile summit with Putin recently in Beijing.

"I believe that (NATO sanctions on Russia), plus NATO, as a group, placing 50% to 100% TARIFFS ON CHINA, to be fully withdrawn after the WAR with Russia and Ukraine is ended, will also be of great help in ENDING this deadly, but RIDICULOUS, WAR," Trump said.

"China has a strong control, and even grip, over Russia, and these powerful Tariffs will break that grip."

If the 32-member alliance "does as I say, the WAR will end quickly," Trump said. "If not, you are just wasting my time."

source: AFP

NEW YORK MARKET CLOSE: Shares end winning week in mixed fashion

2025-09-12T20:31:50Z

Shares ended mixed in New York on Friday, though the Nasdaq notched another record close, as investors look ahead to the US interest rate decision next week.

The Dow Jones Industrial Average closed down 273.78 points, 0.6%, at 45,834.22. The S&P 500 fell 3.18 points, down marginally, to 6,584.29. The Nasdaq Composite ended up 98.03 points, 0.4% to a record high of 22,141.10.

For the week, the DJIA rose 1.0%, the S&P climbed 1.6%. The Nasdaq traded 2.0% higher.

All eyes will be on the Federal Open Markets Committee interest rate decision on Wednesday. Investors currently expect a 25 basis points cut after jobs data this week pointed to a weakening employment picture.

Bank of America analysts say markets will be watching for changes in Jerome Powell's categorizations of the labor market and inflation, with the Fed chair to be characteristically mum on the path of future cuts.

"On the labor market, it would be dovish if Powell were to focus on the slowdown in payrolls and extrapolate from the preliminary benchmark revisions to conclude that the job market has probably been contracting in the last few months," BofA analysts wrote. "In this vein, he might also cite upside risks to the unemployment rate, even if it hasn't risen much thus far."

BofA added: "The weak August jobs report and the large downward revisions in the preliminary benchmark for nonfarm payrolls should cement his pivot from focusing on upside risks to inflation to worrying about downside risks to the labor market. The question is, how hard has Powell pivoted?"

The University of Michigan on Friday said US consumer sentiment deteriorated in early September, with Americans growing more pessimistic about future economic conditions and their personal finances.

The UoM Index of consumer sentiment fell to 55.4 in the preliminary September reading from 58.2 in August, a 4.8% month-on-month decline and down 21% from 70.1 a year ago.

The decline was "particularly strong among lower and middle income consumers," said Joanne Hsu, director of the Surveys of Consumers.

Meanwhile, the index of consumer expectations dropped to 51.8 from 55.9 in August, falling 7.3% on the month and down over 30% year-on-year. The current conditions index edged down more modestly to 61.2 from 61.7, 3.3% below the September 2024 level.

Consumers reported increasing concerns about business conditions, the labour market and inflation. Both current and expected personal finances eased by about 8% from August. Around 60% of respondents also mentioned tariffs unprompted, highlighting the ongoing salience of trade policy concerns following the recent wave of reciprocal tariff announcements.

Despite the drop, sentiment remains above the lows seen in April and May 2025, immediately after the first tariff measures were introduced. Inflation expectations were mixed. One-year-ahead expectations held steady at 4.8%, while long-run expectations rose to 3.9%, up for a second consecutive month but still below April’s 4.4% reading.

Adobe shares slipped 0.3% on Friday despite climbing in extended trade on Thursday after reporting it passed a key AI milestone ahead of schedule.

Chief Financial Officer Dan Durn said Adobe AI-influenced annual recurring revenue surpassed USD5 billion in the three months to August 29 and the firm expects it to continue to rise as a percentage of business.

ARR from new AI-first products, including Firefly, Acrobat AI Assistant, and GenStudio for Performance Marketing, has already achieved the end-of-year target of over USD250 million, he pointed out. This was a quarter earlier than planned.

Durn's comments came after the Photoshop owner said third quarter net income rose 5.4% on-year to USD1.77 billion. Diluted earnings per share of USD4.18 compared to USD3.76. Non-GAAP EPS of USD5.31 beat FactSet consensus of USD5.18.

Third quarter revenue climbed 11% to USD5.99 billion from USD5.41 billion, beating FactSet consensus of USD5.92 billion.

"Adobe's Q3 results were pretty straightforward," observed Tyler Radke, analyst at Citi. "Digital Media ARR came in relatively in line with consensus and buyside expectations, while the full year was slightly raised on top/bottom lines."

Warner Bros Discovery and Paramount Skydance shares continued to surge on Friday following Thursday's Wall Street Journal report that the latter was considering an acquisition offer.

Additionally, CNBC said the bid could be made as early as next week. The reports have not been confirmed by either company.

BofA said of the deal: "While we are surprised at how quickly a potential bid has materialised, we are not surprised at the significant interest Warner Bros highly desirable assets are receiving."

The transaction logic makes sense but integrations take time, BofA points out.

"In our view, the industrial logic of a deal (e.g. greater scale, a broadcast network, combining premium sports with premium entertainment assets) makes strategic sense, however we still await Paramount Skydance's strategy to be outlined in November along with third quarter earnings."

WBD closed up 17%. Paramount Skydance rose 7.6%.

Pfizer and Moderna shares dropped on Friday after the Washington Post reported that the Trump administration plans to link Covid vaccines to the deaths of several children.

Officials plan to include the claim in a presentation next week to a vaccine panel that advises the Centers for Disease Control and Prevention, the Post reported, though the presentation has not yet been finalized.

Pfizer lost 3.9%. Moderna sank 7.4%.

OpenAI and Nvidia are reportedly planning to unveil billions of dollars of investment into UK data centres when they accompany US President Donald Trump on his state visit next week.

Sam Altman, the chief executive officer of OpenAI, and Nvidia CEO Jensen Huang are understood to be working with London-based data centre business Nscale Global Holdings Ltd on the project, Bloomberg reported.

The bosses are said to be part of a delegation of US executives set to visit Britain, with the tech spending pledge expected to be one of a raft of UK investment announcements by American firms during Trump's stay.

It is thought the UK government would supply energy for the data centres project, with OpenAI offering access to its AI tools and Nvidia the chips used to power AI models.

Nvidia closed up 0.4%.

The EU said Friday it had accepted commitments from Microsoft to more clearly separate its Teams communications app from its Office products in order to avoid a hefty antitrust fine.

The European Commission said the move addressed concerns at the heart of an antitrust probe launched in 2023, ending practices that prevented rivals from competing "effectively".

Microsoft closed up 1.8%.

Late Friday, the pound traded at USD1.3564, down slightly from USD1.3578 at the New York close on Thursday. The euro was at USD1.1736, little changed from USD1.1737. Against the yen, the dollar was at JPY147.54, up from JPY147.16 on Thursday.

The US 10-year Treasury was at 4.06% late Friday, up from 4.02% on Thursday. The yield on the US 30-year Treasury was at 4.68%, widening from 4.65%.

Gold was quoted at USD3,645.98 an ounce late on Friday, up from USD3,637.14 on Thursday.

Brent was quoted at USD66.45 a barrel on Friday, up from USD65.88 on Thursday. West Texas Intermediate rose to USD62.09 from USD61.74.

In Europe, the FTSE 100 gave back 0.2% in London. The CAC 40 in Paris closed up less than 0.1%. The DAX 40 in Frankfurt fell less than 0.1% in Frankfurt.

In Asia, the Nikkei 225 in Tokyo climbed 0.9%. In China, the Shanghai Composite lost 0.2%, while the Hang Seng Index gained 1.2% in Hong Kong. The S&P/ASX 200 closed up 0.7% in Sydney.

Monday's global economic calendar has China retail sales, industrial production and unemployment, alongside the eurzone trade balance. US data includes the New York empire state manufacturing index and the NOPA crush report.

Japanese markets are closed for Respect for the Aged Day.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: FTSE 100 fades after bright open as growth stalls

2025-09-12T16:02:52Z

Blue chips ended the week in subdued fashion, giving up early gains, as tepid UK economic growth data and a drop in US consumer sentiment weighed on the mood.

The FTSE 100 index closed down 14.29 points, 0.2%, at 9,283.29. It had earlier traded as high as 9,340.70. The FTSE 250 ended 68.35 points lower, 0.3%, at 21,625.40 while the AIM All-Share finished up 1.34 points, 0.2%, at 768.44.

For the week, the FTSE 100 was up 0.8%, the FTSE 250 advanced 0.2% and the AIM All-Share climbed 0.3%.

The Cboe UK 100 ended down 0.1% at 931.01, the Cboe UK 250 closed 0.1% lower at 18,949.59 but the Cboe Small Companies finished up 0.6% at 17,199.66.

The UK economy kicked off the third quarter of the year with a "summer slowdown", raising the risk that gross domestic product growth falls short of the Bank of England's forecast.

The UK economy registered no growth in July, as expected, numbers showed.

According to the Office for National Statistics, the UK economy tread water in July, an outcome in line with consensus, after gross domestic product advanced 0.4% in June from May.

Deutsche Bank analyst Sanjay Raja believes the data is evidence of a "summer slowdown setting in". The German bank had expected a decline for the month, however, so the reading was a little better than its forecast.

Lloyds Bank said July's data reflected a "payback" from a solid June, but momentum coming out of the second quarter should allow the economy to register growth in the new quarter.

In better news for the government, OpenAI and Nvidia are reportedly planning to unveil billions of dollars of investment into UK data centres when they accompany US President Donald Trump on his state visit next week.

Sam Altman, the chief executive officer of ChatGPT maker OpenAI, and chipmaker Nvidia's CEO Jensen Huang are understood to be working with London-based data centre business Nscale Global Holdings Ltd on the project, as first reported by Bloomberg.

In New York, at the time of the London equities market close, the Dow Jones Industrial Average was down 0.4%, the S&P 500 was little changed and the Nasdaq Composite was 0.4% higher.

The mixed showing on Wall Street followed strong gains on Thursday and a survey showing a drop in consumer sentiment.

Survey data from the University of Michigan showed consumer sentiment deteriorated in early September, with Americans growing more pessimistic about future economic conditions and their personal finances.

The Index of consumer sentiment fell to 55.4 in the preliminary September reading from 58.2 in August, a 4.8% month-on-month decline and down 21% from 70.1 a year ago.

The decline was "particularly strong among lower and middle income consumers," said Joanne Hsu, director of the Surveys of Consumers.

The Index of consumer expectations dropped to 51.8 from 55.9 in August, falling 7.3% on the month and down over 30% year-on-year. The current conditions index edged down more modestly to 61.2 from 61.7, 3.3% below the September 2024 level.

In Europe, the CAC 40 in Paris ended slightly higher, up 0.1%, while the DAX 40 in Frankfurt closed marginally lower.

On the FTSE 250, JTC jumped 16% on the prospect of a bidding war as it said it was in early-stage discussions regarding possible offers with Warburg Pincus and Permira Advisers.

The Jersey-based professional services company said it had previously rejected two approaches from Warburg Pincus but had now received a third proposal.

JTC said it has also received a revised fourth proposal from Permira, after spurning three others.

Hatfield, England-based retail technology firm Ocado Group tumbled 20% after major Cincinnati, Ohio-based partner Kroger said it would take a "hard look" at its automated warehouse technology.

Ocado launched a significant partnership with Kroger, one of the largest supermarket chains in the US, in 2018.

Initially, the firms agreed to build the equivalent of 20 customer fulfilment centres, where automated robots sort orders, but have so far opened eight sites. A further two are expected to open in the current financial year.

However, on Thursday evening, bosses at Kroger told investors in the US they are reviewing their use of the automation technology as it seeks to reduce costs and improve profitability.

Elsewhere, retailer WH Smith fell 2.8% after Berenberg cut the stock to 'hold' from 'buy'. SSP rose 2.3% after the German bank raised the Upper Crust owner to 'buy' from 'hold'.

Meanwhile, Big Technologies slid 11% after the provider of electronic monitoring solutions reported new revelations against its former chief executive, including possible forgery of documents, which have "material" adverse implications for its position in an ongoing litigation.

Big Technologies said "further very serious matters" have come to light regarding the conduct of Sara Murray and persons associated with her. As a result, the company is seeking to expand its claim against Murray and others as part of a "strengthened case."

The company said Murray has denied the allegations, although "no substantive explanation has been provided to date."

The pound eased to USD1.3551 late on Friday afternoon in London, compared to USD1.3578 at the equities close on Thursday. The euro ebbed to USD1.1719, against USD1.1743. Against the yen, the dollar was trading higher at JPY147.83 compared to JPY147.06.

The yield on the US 10-year Treasury was quoted at 4.08%, widened from 4.02% on Thursday. The yield on the US 30-year Treasury was quoted at 4.70%, stretched from 4.67%.

A barrel of Brent traded at USD67.52 on Friday afternoon, up from USD66.42 on Thursday. Gold firmed to USD3,644.61 an ounce on against USD3,636.97 on Thursday.

The biggest risers on the FTSE 100 were Beazley, up 22.50p at 814.50p, Babcock International, up 27.00p at 1,157.00p, Centrica, up 3.35p at 160.35p, Associated British Foods, up 35.50p at 1,970.50p and BAE Systems, up 33.50p at 1,981.00p.

The biggest fallers on the FTSE 100 were JD Sports Fashion, down 2.00p at 90.52p, Diageo, down 37.00p at 1,869.00p, Fresnillo, down 40.00p at 2,156.00p, Hikma Pharmaceuticals, down 28.00p at 1,632.00p and Ashtead, down 78.00p at 5,314.00p.

Monday's local corporate calendar has half-year results from advertising firm S4 Capital. Later in the week results are due from retailer Next and housebuilder Barrett Redrow.

The global economic calendar on Monday has a slew of data in China, including retail sales and industrial production figures.

The week also sees interest rate decisions in the US, UK, Japan and Canada.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

JTC shares up as confirms early-stage talks with two potential buyers

2025-09-12T14:25:09Z

JTC PLC shares on Friday traded higher after the firm said it was in early-stage discussions regarding possible offers with Warburg Pincus LLC and Permira Advisers LLP.

The stock was up 13% at 1,332.00 pence on Friday afternoon in London.

JTC, a Jersey-based professional services company, confirmed in light of "recent media speculation" that it has received a preliminary and conditional non-binding proposal, to acquire its entire share capital, from private equity funds managed by Warburg Pincus.

The board previously unanimously rejected two earlier non-binding proposals, on Friday last week and on Thursday.

Also, JTC revised a fourth revised proposal from Permira on Tuesday. This follows three unanimously rejected proposals, the third of which it received on August 30.

JTC said it is currently in early-stage talks, with Warburg Pincus and Permira, regarding both companies' latest possible offers.

The company advised shareholders to take no action at this time regarding either of these approaches, and said there is no certainty that any firm offer will be made.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

US consumer sentiment weakens in September as outlook dims

2025-09-12T14:19:04Z

US consumer sentiment deteriorated in early September, with Americans growing more pessimistic about future economic conditions and their personal finances, survey data from the University of Michigan showed Friday.

The Index of consumer sentiment fell to 55.4 in the preliminary September reading from 58.2 in August, a 4.8% month-on-month decline and down 21% from 70.1 a year ago.

The decline was "particularly strong among lower and middle income consumers," said Joanne Hsu, director of the Surveys of Consumers.

Consumers reported increasing concerns about business conditions, the labour market and inflation. Both current and expected personal finances eased by about 8% from August.

Around 60% of respondents also mentioned tariffs unprompted, highlighting the ongoing salience of trade policy concerns following the recent wave of reciprocal tariff announcements.

Despite the drop, sentiment remains above the lows seen in April and May 2025, immediately after the first tariff measures were introduced.

Inflation expectations were mixed. One-year-ahead expectations held steady at 4.8%, while long-run expectations rose to 3.9%, up for a second consecutive month but still below April’s 4.4% reading.

Final September results will be published on September 26.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Donald Trump says patience with Vladimir Putin "running out fast"

2025-09-12T13:16:36Z

US President Donald Trump said Friday his patience with Russia's Vladimir Putin was running out and hinted at tough sanctions over the war in Ukraine – while suggesting Kyiv also needed to compromise.

"It's sort of running out and running out fast, but it does take two to tango," Trump told the Fox and Friends show when asked if his patience was being taxed by Russia's refusal to end the conflict.

"It's amazing. When Putin wants to do it, [President Volodymyr] Zelensky didn't. When Zelensky wanted to do it, Putin didn't. Now Zelensky wants to and Putin is a question mark. We're going to have to come down very, very strong."

source: AFP

FOREX: Dollar recovers some poise ahead of central bank bonanza

2025-09-12T13:13:55Z

Sterling struggled in the wake of underwhelming UK economic data, while the dollar recovered some ground that it lost after another weak reading of the US labour market.

Focus turns to a slew of central bank decisions next week, including the Federal Reserve on Wednesday, before the Bank of England on Thursday and the Bank of Japan on Friday.

"The big event of the week is Wednesday’s FOMC meeting, where an interest rate cut is widely expected, though policy meetings are also scheduled in the UK, Japan, Canada, Brazil, Norway and Japan to make for a busy week for central bank watchers. It is also a heavy week for data releases, which include UK inflation, labour market, retail sales and public sector borrowing statistics, as well as industrial production numbers for the US, mainland China and the eurozone,"

S&P Global Market Intelligence analysts added.

"The Bank of England is meanwhile expected to make no policy changes, having already been on a gradual easing path over the past year. However, there’s clearly a heated discussion going on around the next policy steps. The upcoming meeting will be important to assess the degree to which those worried about inflation are outnumbering those worried about the economy and the labour market, to thereby potentially delay any further rate cuts."

Against the dollar, sterling fell to USD1.3529 Friday afternoon from USD1.3545 a week prior. Versus the euro, it ebbed to EUR1.1555 from EUR1.1572.

The UK economy registered no growth in July, as expected, numbers on Friday showed.

According to the Office for National Statistics, the UK economy tread water in July, an outcome in line with consensus, after gross domestic product advanced 0.4% in June from May.

"What drove some of the upside? For the services sector, it was mainly transportation and storage – and mainly warehousing and support activities for storage that drove the gains in GDP. Perhaps some early signs of positive spillover due to trade diversion, given the UK’s better trade deal with the US. It’s early days, but we will be watching this closely as this could be a source of growth for some time. Beneath the hood, however, it’s clear that consumers have slowed their spending into summer with consumer-facing services flatlining in July. Manufacturing too, we think, will remain weak for some more time, as we course correct after a stronger start to the year," Raja said.

"Looking ahead, some correction in GDP growth remains likely. Indeed, what propelled GDP to the upside in H1-25 will likely reverse in H2-25, with exports reversing course, net acquisitions slowing further, stockpiling unwinding, and public sector spending softening as the fiscal tightening crystalises. Moreover, as the US trade war catches up with the UK, global headwinds will gather pace, weakening the UK’s external backdrop. Domestically, we also see some drag in the economy from higher inflation, budget uncertainty, and a still sluggish labour market. This should keep spending in check for a little while longer."

Versus the dollar, the euro edged down to USD1.1704 from USD1.1710 on Thursday.

The US annual consumer price inflation rate picked up to 2.9% in August, as expected, from 2.7% in July. On-month, consumer prices rose 0.4% in August, after a 0.2% rise in July from June. A rise of 0.3% had been expected, according to consensus cited by FXStreet.

Dollar weakness, on Thursday however, had stemmed from more downbeat labour market data. Initial jobless claims for the week to September 6 rose to 263,000 from 236,000. The latest reading, the loftiest since October 2021, topped the FXStreet cited consensus of 235,000.

On Thursday, the European Central Bank left rates unmoved.

ING analysts commented: "Yesterday’s ECB meeting proved more eventful than we had anticipated. After an initial dovish reaction to the statement – likely due to a slight downward revision in 2027 inflation forecasts – the euro spiked on the back of President Lagarde's hawkish remarks. The balance of risks for growth is now seen as “more balanced”, and there was strong wording on the fact that the disinflationary process in the euro area is now over. At the same time, Lagarde steered clear of any headline-catching comments on French bonds, which we thought was a major dovish risk.

"The combined effect of hawkish ECB and US jobless claims spike sent the EUR:USD 2-year swap spread to -110bp, very close to the late September 2024 levels, when the Fed had just cut 50bp. While the spread is still some 35bp wider compared to the last time EUR/USD was trading at these levels four years ago, the medium-term rate-implied risk premium on the dollar has shrunk substantially, making further EUR/USD gains more feasible. A break above 1.180 in the near term now seems rather likely."

Versus the yen, the dollar bought JPY147.99, up from JPY147.48. Against its Canadian counterpart, the buck faded to CAD1.3852 from CAD1.3872.

Both the BoJ and Bank of Canada announce rate decisions next week.

Analysts at Lloyds Bank commented: "The BoJ isn’t expected to hike rates this time but there will be intense interest in whether stronger hints are given about an October increase."

The Bank of Canada is expected to cut, however, according to ING.

"The Bank of Canada is set to resume cutting interest rates in the wake of a large GDP contraction in the second quarter and rising unemployment. Tariffs will continue to weigh on the economy, and with inflation broadly in line with target, we look for a 25bp cut on Wednesday, with a further 25bp cut in the fourth quarter. CAD should remain weak in the crosses," ING analysts said.

Versus the Swiss franc, the dollar rose to CHF0.7983 from CHF0.7973.

Against the Australian dollar, the US currency faded to AUD1.5071 from AUD1.5101.

The Dollar Index stood at 97.78 points, rising from 97.75 a day prior.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Donald Trump says will deploy National Guard to Memphis

2025-09-12T12:55:46Z

US President Donald Trump on Friday said he would deploy National Guard troops to Memphis, Tennessee, in the latest stage of his federal crime crackdown that critics say is authoritarian.

"We're going to Memphis. Memphis is deeply troubled. The mayor is happy... We're going to fix that just like we did Washington," Trump told Fox News.

source: AFP

COMMODITIES: Gold hangs below record ahead of Fed decision; oil higher

2025-09-12T11:57:46Z

Gold advanced on Friday, but hovered just below the all-time high record as investors remained convinced of a potential interest rate cut in the US next week, given the fragile state of the labour market.

Spot gold was quoted at USD3,647.54 an ounce on Friday afternoon in London, up from USD3,620.72 at the same time on Thursday. Silver rose to USD42.20 an ounce from USD41.07.

Bullion reached USD3,674.7 an ounce on Tuesday for the first time ever, a highlight in a series of records since last week.

The yellow metal is on track for a fourth consecutive weekly advance as expectations of monetary policy easing in the US and persistent geopolitical risks reinforced safe-haven demand, Naga analyst Frank Walbaum said.

The US Federal Reserve will make its interest rate call on Wednesday next week.

"Recent US data painted a mixed picture," Walbaum said, noting that US consumer price inflation rose 0.4% in August, but producer prices unexpectedly fell.

"Together with last week's weak payrolls report, the data signalled a softening labour market, keeping markets confident of at least a 25-basis-point cut," he said.

In other commodities, Brent crude oil was priced at USD67.40 a barrel on Friday, slightly up from USD67.04 on Thursday. West Texas Intermediate firmed to USD63.20 a barrel, compared to USD63.17.

The oil market clawed back some losses on Friday as traders weighed energy demand worries, against geopolitical tensions that threaten supply.

Escalating geopolitical tensions, following Israel's attack on Hamas's leadership in Qatar and prospects of tighter Western sanctions on Russian energy exports, might help "put a floor" under oil prices, ING analysts Warren Patterson and Ewa Manthey said.

In its latest monthly oil market report, the International Energy Agency expects a record oil surplus of more than 3 million barrels per day in 2026, amid cooling demand growth in China and increasing supply, Patterson and Manthey said.

The agency, they noted, sees muted demand growth, a rise of 740,000 barrels per day this year, up marginally from its previous forecast.

"The IEA attributes this to limited growth from emerging economies and falling demand in industrialised nations over the latter half of the year" ING analysts said, adding: "Looking ahead to 2026, global oil demand is forecast to grow by around 700k b/d year-on-year."

But the IEA also revised up its oil supply growth estimates primarily due to the return of Opec+ supply, and now forecasts global supply will grow by 2.7 million barrels a day this year.

In other metals, platinum was priced at USD1,398.45 an ounce on Friday, up from USD1,387.30 on Thursday. Palladium was quoted at USD1,209.26 an ounce, up from USD1,185.23.

In base metals, the copper price climbed to USD10,057.00 per tonne from USD9,930.00. Aluminium firmed to USD2,679.00 from USD2,622.00.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: FTSE 100 climbs, outperforming European peers

2025-09-12T11:01:20Z

London blue chips were higher around midday on Friday, outperforming their European peers, ahead of an expected pledge by US tech companies for multi-billion dollar investments into UK data centres.

The FTSE 100 index was up 29.29 points, 0.3%, at 9,326.87. The FTSE 250 was up 13.00 points, 0.1%, at 21,706.75, and the AIM All-Share was up 2.27 points, 0.3%, at 769.37.

The Cboe UK 100 was up 0.4% at 935.06, the Cboe UK 250 was up 0.2% at 19,015.28, and the Cboe Small Companies was up 0.3% at 17,156.10.

"A lacklustre GDP figure is more relevant to the FTSE 250 than the FTSE 100 index given the former has a greater proportion of domestic-focused companies," said AJ Bell analyst Russ Mould.

"It's never a good look for a country to be stuck in the mud, and the GDP data will put even more pressure on chancellor Rachel Reeves to find a way to plug the gap in public finances without derailing the economy.

"News the economy flatlined in July wasn't a shock to investors as most economists hadn't expected any growth. That’s why the news didn't cause a wobble on the UK stock market, with the FTSE 250 holding firm in early trading. However, the GDP result will do nothing to improve business sentiment, and ongoing uncertainty could lead more companies to take a cautious approach and that doesn’t bode well for UK domestic earnings – and therefore share price – growth."

According to the Office for National Statistics, the UK economy tread water in July, an outcome in line with consensus, after gross domestic product advanced 0.4% in June from May.

Raja sees the UK economy growing around 1.2% this year, before picking up to 1.3% in the next. However, he sees risks "skewed one way: to the downside".

In European equities on Friday, the CAC 40 in Paris shed 0.5%, while the DAX 40 in Frankfurt lost 0.3%.

EU countries on Friday agreed to prolong sanctions over the war in Ukraine for another six months on more than 2,500 Russian individuals and entities, including President Vladimir Putin.

Ambassadors from the bloc's 27 member states signed off on the move ahead of a deadline on Monday, after Hungary and Slovakia dropped demands to take a number of people off the blacklist, diplomats said. The sanctions – which have to be renewed each six months – were set to lapse next week if no deal was found.

"We just extended our sanctions on Russia," EU foreign policy chief Kaja Kallas wrote on X on Friday. She said Brussels was currently finalising work on a new package of sanctions "looking into additional curbs on Russian oil sales, shadow oil tankers, and banks".

Brent oil was quoted at USD66.84 a barrel at midday in London on Friday, up from USD66.42 late Thursday.

Angle fell 23% around midday in London.

The Guildford, England-based liquid biopsy company said, following talks with an unnamed "significant shareholder", Chief Executive Officer Andrew Newland and Finance Director Ian Griffiths have stepped down from the board.

"They remain committed and supportive of the company and intend to support the company with an orderly handover," Angle said.

Big Technologies slipped 14%.

The provider of electronic monitoring solutions reported new revelations against its former chief executive, including possible forgery of documents, which have "material" adverse implications for its position in the Buddi litigation.

Big Technologies said "further very serious matters that have come to light" regarding the conduct of Sara Murray and persons associated with her. As a result, the company is seeking to expand its claim against Murray and others as part of a "strengthened case."

The company said Murray has denied the allegations, although "no substantive explanation has been provided to date." Nonetheless, it has offered to Murray and others that the claims against them be addressed through alternative dispute resolution, such as mediation.

At the other end, Atome jumped 24%.

The low-carbon fertiliser developer has struck an offtake deal with Yara International, under which Yara will purchase the entire production from Villeta project. Crop nutrition firm Yara will commit to the purchase of 260,000 tonne-per-year low-carbon fertiliser production.

The pound was quoted down at USD1.3552 at midday on Friday in London, compared to USD1.3578 at the equities close on Thursday. The euro stood lower at USD1.1732, against USD1.1743. Against the yen, the dollar was trading up at JPY147.81 compared to JPY147.06.

Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.2%, the S&P 500 index 0.1% lower, and the Nasdaq Composite broadly flat.

OpenAI and Nvidia Corp are reportedly planning to unveil billions of dollars of investment into UK data centres when they accompany US President Donald Trump on his state visit next week.

It is thought the UK government would supply energy for the data centres project, with OpenAI offering access to its AI tools and Nvidia the chips used to power AI models.

The yield on the US 10-year Treasury was quoted at 4.04%, widening from 4.01%. The yield on the US 30-year Treasury was quoted at 4.65%, narrowing from 4.67%.

"US equities closed at all-time highs on Thursday, with the Dow, S&P 500 and Nasdaq all setting new records. The rally was powered by continued strength in technology, with Tesla and Micron building on Oracle's earlier surge to extend the week's bullish momentum," commented Rostro analyst Joshua Mahony.

"On the macro front, yesterday's CPI release saw a concerning 0.4% rise in August, although this was overshadowed by a jump in jobless claims which rose to their highest level in nearly four years. With markets still pricing a 100% likelihood of a September rate cut, recent signs of a softening labour market have clearly overshadowed any inflation pressures to drive expectations of lower rates in the months to come.

"However, we have seen the CME pricing for a 50bp cut drop from 12% to 7.5%, highlighting the fact that inflation remains a key concern that will likely stifle the chances of an oversized move from the Fed next week."

Gold was quoted higher at USD3,650.14 an ounce against USD3,636.97.

Still to come on Friday's economic calendar, the US Michigan consumer sentiment index at 1500 BST.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

PRESS: OpenAI, Nvidia set to pledge multibillion-dollar UK investments

2025-09-12T10:37:09Z

Tech titans OpenAI and Nvidia Corp are reportedly planning to unveil billions of dollars of investment into UK data centres when they accompany US President Donald Trump on his state visit next week.

It is thought the UK government would supply energy for the data centres project, with OpenAI offering access to its AI tools and Nvidia the chips used to power AI models.

Prime Minister Keir Starmer unveiled an action plan in January to make the UK an AI "superpower" by expanding use of the technology.

He announced plans for a series of AI "growth zones" around Britain to help speed up planning approvals for data centres and improve access to the energy grid.

Starmer also said the UK would invest in building more data centres, having previously declared them "critical national infrastructure".

The government has been hoping to attract AI investment with its action plan, but also spur on the adoption of the technology across Whitehall in a bid to improve productivity and cut costs.

OpenAI, Nvidia and Nscale have been approached for comment.

Nvidia shares were 0.1% higher in pre-market trading at USD177.41 each on Friday morning in New York.

By Holly Williams, PA Business Editor

Press Association: Finance

source: PA

Giorgio Armani's will calls for 15% sale to major fashion group

2025-09-12T09:30:35Z

Late Italian designer Giorgio Armani instructed the foundation that is inheriting his luxury company to sell 15% to a major fashion group, according to his will made public Friday.

He named Paris-based luxury titan LVMH Moet Hennessy Louis Vuitton SE, Paris-based cosmetics group L'Oreal SA and Paris-based eyewear firm EssilorLuxottica SA as his preferred buyers, according to excerpts of the will published by Italian media following his death on September 4 at age 91.

The sale must take place between 12 and 18 months.

The new shareholder would then have the possibility of taking, within five years, a majority stake in the group – which Armani built up over five decades and which was notable for its independence during his lifetime.

LVMH shares were down 0.5% at EUR484.95 each on Friday morning in Paris, L'Oreal shares were 1.0% lower at EUR380.00 each and EssilorLuxottica shares were down 1.5% at EUR262.70.

source: AFP

Ocado shares fall as Kroger takes hard look at future of US warehouses

2025-09-12T09:26:31Z

Hatfield, England-based retail technology firm Ocado Group PLC slid in value on Friday morning after major Cincinnati, Ohio-based partner Kroger Co said it would take a "hard look" at its automated warehouse technology.

Shares in the London-listed company fell by 11% to 267.00 pence each in early trading as the comments raised concerns among investors.

Kroger shares were 0.3% higher at USD67.46 each in pre-market trading on Friday morning in New York.

Ocado launched a significant partnership with Kroger, one of the largest supermarket chains in the US, in 2018.

Initially, the firms agreed to build the equivalent of 20 customer fulfilment centres, where automated robots sort orders, but has so far opened eight sites.

A further two are expected to open in the current financial year.

However, on Thursday evening, bosses at Kroger told investors in the US they are reviewing their use of the automation technology as it seeks to reduce costs and improve profitability.

Ron Sargent, interim chief executive of Kroger, said the business is conducting a "full site-by-site analysis" of its warehouse and distribution operations.

The company said it plans to focus more on fulfilling orders directly from stores to improve speed and efficiency.

"Where we have seen strong demand in high-density areas, these facilities deliver better results than those facilities where density is lower and customer adoption has been slower", Sargent said.

"We are taking a hard look at some of our automated facilities."

Neil Wilson, UK investor strategist at Saxo, said: "The comments are clearly a negative for Ocado as Kroger seems likely to move away from the kind of large CFCs provided by the British company and instead seems to be looking to lean on local stores to fill orders."

It came as Kroger reported e-commerce was nonetheless up 16% in the latest quarter.

By Henry Saker-Clark, PA Deputy Business Editor

Press Association: Finance

source: PA

Microsoft avoids EU fine by answering Teams antitrust concerns

2025-09-12T08:53:16Z

The EU said Friday it had accepted commitments from Microsoft Corp to more clearly separate its Teams communications app from its Office products in order to avoid a hefty antitrust fine.

The European Commission said the redress proposed by the Redmond, Washington-based tech company addressed the concerns at the heart of an antitrust probe launched in 2023, ending practices that prevented rivals from competing "effectively".

"Today's decision therefore opens up competition in this crucial market, and ensures that businesses can freely choose the communication and collaboration product that best suits their needs," said EU competition chief Teresa Ribera.

The decision follows preliminary findings in a probe triggered by a 2020 complaint from Slack, a Teams competitor.

The commission – the EU's antitrust regulator – had concluded that Microsoft abused its dominant position by bundling Teams with other products.

A first Microsoft move to offer some Office 365 and Microsoft 365 suites, which also include Word, Excel, PowerPoint and Outlook, without Teams was deemed insufficient by Brussels.

Microsoft then put forward more changes in May, which the commission has now accepted.

The firm pledged to sell versions of its Office 365 and Microsoft 365 suites without Teams and at a lower price than the version including the conferencing app, according to the commission.

It will also allow customers with long-term licences to switch to packages without Teams, and to transfer their data for use in rival applications.

Finally, it promised to improve the interoperability of rival applications with other Microsoft products.

The commitments have now become legally binding for at least seven years, the commission said.

Were Microsoft not to honour them it may face a fine of up to 10% of its worldwide annual turnover.

Microsoft shares were 1.5% higher in pre-market trading at USD508.50 each on Friday morning in New York.

source: AFP

LONDON MARKET OPEN: Stocks largely up after strong week; pound down

2025-09-12T08:04:47Z

Stock prices in Europe opened largely higher on Friday, looking set to round off a positive week for equities with another gain.

Stocks have been supported by the conviction that the Federal Reserve will cut rates this month, a notion strengthened by more tepid labour market data on Thursday.

The FTSE 100 index rose 22.58 points, 0.2%, at 9,320.16. It is up 1.2% so far this week. The FTSE 250 was edged down 12.03 points, 0.1%, at 21,681.72, and the AIM All-Share was up 3.21 points, 0.4%, at 770.31.

The Cboe UK 100 was up 0.3% at 934.46, the Cboe UK 250 was flat at 18,976.34, but the Cboe Small Companies was 0.3% higher at 17,144.78.

In Paris, the CAC 40 was 0.1% lower. In Frankfurt, the DAX 40 was 0.3% higher.

In New York on Thursday, the Dow Jones Industrial Average powered 1.3% higher, the S&P 500 added 0.9% and the Nasdaq Composite rose 0.7%.

In Tokyo on Friday, the Nikkei 225 hit another all-time high, rising 0.9%. In China, the Shanghai Composite fell 0.1% though the Hang Seng Index in Hong Kong surged 1.2% in late trade. Sydney's S&P/ASX 200 was 0.7% higher.

Data from the US Bureau of Labor Statistics showed the US annual consumer price index accelerated to 2.9% in August from 2.7% in July, as anticipated by the FXStreet-cited consensus. The monthly inflation rate sped up to 0.4% in August from 0.2% in July, higher than the consensus of an increase to 0.3% in August.

The core annual inflation rate remained unchanged at 3.1% in August, as expected. The monthly core inflation rate was unchanged at 0.3%, also as anticipated.

Separately, the US Department of Labor reported that the latest number of new unemployment insurance claims was 263,000 in the week to September 6, an increase of 27,000 from 236,000 a week prior, the latter of which was revised down from 237,000.

The most recent figures are the highest since October 2021.

The next Fed decision is on Wednesday.

"Given the mixed signals—negative PPI, higher unemployment, and core CPI remaining on track—the market still leans toward a 25 bps cut," XS.com analyst Linh Tran commented.

The euro was lower at USD1.1739 on Friday morning from USD1.1743 at the time of the closing bell in Europe on Thursday. Versus, the yen, the buck rose to JPY147.43 from JPY147.06.

The yield on the US 10-year Treasury was quoted at 4.04%, stretching from 4.02%. The yield on the US 30-year Treasury was unmoved at 4.67%.

The pound faded to USD1.3565 early Friday from USD1.3578 at the time of the London equities close on Thursday.

The UK economy registered no growth in July, as expected, numbers on Friday showed.

According to the Office for National Statistics, the UK economy tread water in July, an outcome in line with consensus, after gross domestic product advanced 0.4% in June from May.

"Real gross domestic product grew by 0.2% in the three months to July 2025 compared with the three months to April 2025, down from three-month-on-three-month growths of 0.3% in June 2025 and 0.6% in May 2025," the ONS said.

Ebury analyst Samuel Edwards commented: "Today's data points to an economy at a standstill in what will be another blow to the government in the run up to the now confirmed autumn budget."

A barrel of Brent declined to USD65.87 on Friday morning, from USD66.42 at the time of the London equities close on Thursday. Gold rose to USD3,650.62 an ounce from USD3,636.97.

A stronger gold price supported shares in producers Fresnillo and Hochschild, with the duo up 4.6% and 4.7%.

Retailer WH Smith fell 1.8% after Berenberg cut the stock to 'hold' from 'buy'. SSP rose 3.4% after the German bank raised the Upper Crust owner to 'buy' from 'hold'.

Elsewhere in London, Gemfields Group rose 6.1%. The miner and marketer of coloured gemstones said it generated revenue of USD32.0 million at an emerald auction held between August 25 and September 11, nearly doubled from USD16.1 million in November 2024.

"This September auction marks Kagem's first high-quality emerald sale since the disappointing result in November 2024. Mining operations at Kagem were suspended in January 2025 in response to market uncertainty and challenges relating to the oversupply of Zambian emeralds. Following signs of recovery at the April commercial-quality auction, two mining points were reopened in May," Gemfields' Managing Director of Product & Sales Adrian Banks said.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Taiwan defence ministry to seek up to USD33 billion to harden security

2025-09-12T07:34:32Z

Taiwan's defence ministry plans to seek up to a record USD33 billion in special funding to upgrade the island's defences against a potential Chinese attack, a senior lawmaker told AFP.

As Chinese military pressure on the democratic island intensified in recent years, Taiwan has been ramping up defence spending.

But Washington, Taipei's biggest arms supplier, has been pushing it to do more.

The ministry is working on a special budget of between TWD800 billion and TWD1 trillion [USD26 billion and USD33 billion] over seven years, said Wang Ting-yu, who belongs to President Lai Ching-te's Democratic Progressive Party.

The final amount has not been finalised as Taiwan negotiates with the US over potential arms sales that would be included in the special budget, Wang told AFP in an interview this week.

"We want to build a complete defence ecology to defend our country," said Wang, describing the plans as a "huge" upgrade to the island's self-defence capabilities.

Wang said the plans included integrating Taiwan's air defence systems; acquiring from overseas partners more advanced technology to detect small drones, rockets and missiles and ensure a rapid response to an attack; and increasing the island's capacity to produce and store ammunition for wartime.

Taiwan lives under the constant threat of invasion by China, which claims the self-ruled island is part of its territory and has threatened to seize it by force.

"China is developing their fifth-generation fighters and they're using stealth technology in all kinds of drones or missiles," said Wang, who sits on the parliamentary Foreign Affairs & National Defence Committee.

"So we need more advanced sensor systems, more advanced radar systems – if you cannot detect it, all kinds of fire units are useless."

Wang's remarks came as Taiwan seeks to strike a deal with the US to reduce US President Donald Trump's 20% tariff on the island's shipments.

Taipei has been eager to show Trump it is serious about shoring up the island's defences, which would be no match for China's firepower in a conflict.

Lai's government announced last month plans to boost its 2026 defence budget to TWD949.5 billion, or more than three percent of gross domestic product.

It aims to increase spending to five percent of GDP by 2030.

Asked if he hoped the special defence budget plans would help Taiwan in the trade negotiations, Wang replied: "Yes".

Taiwan's defence ministry declined to comment when contacted by AFP.

If the cabinet approves the spending plan, it will have to be passed by the opposition-controlled parliament before it can take effect.

By Allison Jackson and Amber Wang

source: AFP

US Treasury chief to meet Chinese vice premier during Europe trip

2025-09-12T07:20:24Z

US Treasury Secretary Scott Bessent will meet with senior Chinese officials, including Vice Premier He Lifeng, during a European trip next week to discuss national security, economic and trade issues, the Treasury Department said on Thursday.

Bessent will travel to Spain and the UK from Friday to September 18, with the Madrid portion of his visit including discussions with Chinese representatives on "key national security, economic, and trade issues of mutual interest," the department said in a statement.

That would include "TikTok and cooperating on money laundering networks that threaten both the US and China," it said.

Tensions between the world's two biggest economies simmered this year but have improved since April, when both countries slapped escalating tariffs on each other's exports.

Bessent's planned talks come after top diplomats and defense chiefs from both nations held back-to-back discussions Wednesday, which analysts said could mark a step toward a meeting between US President Donald Trump and Chinese leader Xi Jinping.

Trump said in August that he expects to visit China this year or shortly afterwards, noting that economic ties between the two countries have improved.

US Secretary of State Marco Rubio told his Chinese counterpart Wang Yi in a telephone call on Wednesday that he wanted constructive and open dialogue with China.

In a separate video call the same day, China's defence minister Dong Jun warned Pentagon chief Pete Hegseth that "containing, deterring, or interfering with China will be futile," state broadcaster CCTV reported.

"We must... build an equal, respectful, peacefully coexistent, stable and positive military-to-military relationship. We must respect each other's core interests," he told Hegseth.

Following the Spain visit, Bessent will travel to London for meetings with British government and private sector officials before joining Trump's official state visit with King Charles at Windsor Castle.

source: AFP

German consumer price inflation rate quickens to 2.2% in August

2025-09-12T07:20:23Z

German consumer price inflation accelerated in August, numbers from Destatis confirmed on Friday.

Destatis reported that the pace of annual consumer price inflation quickened to 2.2% in August, from 2.0% in July. The reading was in line with the flash estimate.

On-month, prices rose 0.1% in August, easing from a 0.3% advance in July from June.

On a harmonised basis, allowing for EU-wide comparison, the pace of yearly consumer price inflation picked up to 2.1% in August from 1.8% in July. On-month, prices rose 0.1% in August, having risen 0.4% in July. Both harmonised readings were also in line with the preliminary estimate.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON BRIEFING: Big Technologies seeks to expand claim against ex-CEO

2025-09-12T06:57:11Z

The UK economy had a tepid July, as expected, keeping a lid on the pound in morning trade.

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

----------

MARKETS

----------

FTSE 100: called 0.2% at 9,316.78

GBP: lower at USD1.3552 (USD1.3578 at previous London equities close)

----------

ECONOMICS

----------

The UK economy registered no growth in July, as expected, numbers on Friday showed. According to the Office for National Statistics, the UK economy tread water in July, an outcome in line with consensus, after gross domestic product advanced 0.4% in June from May. "Real gross domestic product grew by 0.2% in the three months to July 2025 compared with the three months to April 2025, down from three-month-on-three-month growths of 0.3% in June 2025 and 0.6% in May 2025," the ONS said. "Services output grew by 0.4% in the three months to July 2025, compared with the three months to April 2025, and was the main contributor to GDP growth over this period, after growing 0.4% in the three months to June 2025." In July alone, service and construction output rose 0.1% and 0.2% from June, but production fell 0.9%. The production reading fell short of consensus. It had been expected to be flat, according to FXStreet. Separate data from the ONS showed the UK trade deficit widened in July. The trade gap stretched to GBP5.26 billion from GBP5.02 billion in June.

----------

The UK government is "absolutely committed" to its pledge to build 1.5 million new homes in England by 2029, the new Housing secretary has said. Steve Reed said the government was standing firm behind the vow, which was part of Labour's pre-election manifesto, telling the BBC: "It's what we're going to do." Reed told the broadcaster: "We'll do it by working in partnership with the developers and with the builders. "My job is to get every barrier out of the way that is stopping that construction going ahead."

----------

BROKER RATINGS

----------

Berenberg cuts WH Smith to 'hold' (buy) - price target 700 (1,600) pence

----------

COMPANIES - FTSE 250

----------

Murray Income Trust says its recently ended financial year has seen market that "equally - if not more - volatile". The investor focused on UK equities international and domestic equity markets were "remarkably sanguine overall" in the face of the turbulence, which Murray Income partly puts down to the UK government budget last year. "These domestic policy shifts, combined with the broader international climate, have contributed to periodic fluctuations and instability in both UK and global financial markets," it says. Murray Income's net asset value per share at the end of June faded to 936.3 pence from 946.0p the year prior. The net asset value total return was 2.7%, easing from 9.9% in financial 2024, and below the 11.2% achieved by its benchmark, the FTSE All-Share Index. Murray Income reports it has lifted its dividend to 40.00p per share from 38.50p. "The board recognises and shares shareholders' disappointment that, against this backdrop, the company's NAV and share price returns over the year were only 2.7% and 4.3%, once again lagging behind the benchmark. In fact, the company is now trailing the benchmark over one, three, five and ten years," it adds. "As part of the review announced in July 2025, which remains ongoing, the board is considering proposals regarding the company's future and its management arrangements from a range of candidates, including third party investment managers, other investment companies, and the incumbent manager. The board is taking into account factors including historic record, portfolio construction, investment philosophy, investment management structure, income generation, risk controls and commitment to investment trusts."

----------

OTHER COMPANIES

----------

Big Technologies says it looking to "expand its claim" against former CEO Sara Murray. The provider of electronic monitoring solutions reports that "further very serious matters that have come to light". Big Technologies alleges the new developments centre on a "forgery or deliberate falsification by Sara Murray of various documents". These include board minutes of Buddi, a unit which Big Technologies acquired in 2018. These minutes show Buddi board members agreeing "to sell their shares in Buddi" to Big Technologies. Big Technologies alleges: "Sara Murray created or otherwise forged or deliberately falsified the affected documents more than three years after the dates on their face and, specifically, in the days immediately after the claimants first notified the company and Buddi on 20 July 2021 that they were challenging the exercise of the drag right and claiming that they were wrongly forced or induced to sell their shares in Buddi." Big Technologies has the view that a drag right exercise was invalid and this will have a "material adverse impact" on its position in the Buddi litigation, where some former shareholders of Buddi allege they were wrongly forced to sell their shares in Buddi "and were not given the opportunity to reinvest into Big Technologies". "As a result of this, the company has also concluded that it and Buddi are unlikely to be able to successfully defend material elements of the claim in the Buddi litigation," it adds. Big says that while the new developments are serious in nature, it has "offered to Sara Murray and others that the claims against them be addressed through alternative dispute resolution". Big says that Murray has denied the allegations but is yet to provide a "substantive explanation".

----------

Newbury Racecourse reports stronger half-year revenue and a narrowed loss, amid a rise in raceday attendance. The horse racing, entertainment and events firm says its pretax loss in the first half of 2025 narrowed to GBP146,000 from GBP256,000. Revenue increased 4.3% to GBP9.7 million from GBP9.3 million. Declared raceday attendances grew to 53,569 from 43,733 a year earlier. Chair Dominic Burke says: "Trading for the first half of 2025 is marginally ahead of our expectations, despite strong raceday attendances up 22% on 2024. Compared with the first six months of last year, our revenues have grown across the majority of our income streams, but due to the impact of high inflationary costs, the increase in the national living wage and national insurance contributions as well as our continued commitment to prize money, the company has only been able to reduce losses compared to the same period last year."

----------

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UK economy treads water in July, in line with consensus

2025-09-12T06:14:50Z

The UK economy registered no growth in July, as expected, numbers on Friday showed.

According to the Office for National Statistics, the UK economy tread water in July, an outcome in line with consensus, after gross domestic product advanced 0.4% in June from May.

"Services output grew by 0.4% in the three months to July 2025, compared with the three months to April 2025, and was the main contributor to GDP growth over this period, after growing 0.4% in the three months to June 2025."

In July alone, service and construction output rose 0.1% and 0.2% from June, but production fell 0.9%. The production reading fell short of consensus. It had been expected to be flat, according to FXStreet.

Separate data from the ONS showed the UK trade deficit widened in July. The trade gap stretched to GBP5.26 billion from GBP5.02 billion in June.

Exports rose 2.3% to GBP76.45 billion in July from GBP74.76 billion in June. However, imports rose at a slightly faster pace of 2.4% to GBP81.71 billion from GBP79.78 billion.

The ONS said goods imports and exports rose in both EU and non-EU nations.

Exports of goods to the US rose by GBP800 million in July, but are off pre-tariff levels.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 to rise ahead of UK economic data

2025-09-12T05:55:41Z

Stocks in London are set to open higher on Friday, ahead of a UK gross domestic product reading and inflation data from Germany and other eurozone constituents.

The UK data is released at 0700 BST. Also on the docket, there is final consumer price index data from Germany, France and Spain on Friday morning, ahead of eurozone reading on Wednesday.

IG says futures indicate the FTSE 100 to open 26.8 points higher, 0.3%, at 9,324.38 on Friday. The index of London large-caps closed 72.19 points, 0.8% at on 9,297.58 on Thursday. It has risen 1.0% this week.

In New York on Thursday, the Dow Jones Industrial Average powered 1.3% higher, the S&P 500 added 0.9% and the Nasdaq Composite rose 0.7%.

In Tokyo on Friday, the Nikkei 225 hit another all-time and was 1.0% higher in late trade. In China, the Shanghai Composite was up 0.3% while the Hang Seng Index in Hong Kong surged 1.5%. Sydney's S&P/ASX 200 was 0.7% higher.

Swissquote analyst Ipek Ozkardeskaya commented: "In just one sentence: yesterday's fresh data from the US gave the green light for next week's Federal Reserve (Fed) cut. It's not that the inflation data matters much at this stage – all attention is shifting toward the weakening US jobs market – but yesterday's CPI figures, broadly in line with expectations, combined with a jump in initial jobless claims, gave full justification to those calling for a Fed cut next week. Two more cuts are already fully priced in before year-end. That's the good news."

The core annual inflation rate remained unchanged at 3.1% in August, as expected. The monthly core inflation rate was unchanged at 0.3%, also as anticipated.

The most recent figures are the highest since October 2021.

The pound faded to USD1.3558 early Friday from USD1.3578 at the time of the London equities close on Thursday.

According to FXStreet cited consensus, numbers on Friday are expected to show that the UK economy tread water in July, after registering a 0.4% advance in June from May.

The euro was lower at USD1.1732 on Friday morning from USD1.1743 at the time of the closing bell in Europe on Thursday. Versus, the yen, the buck rose to JPY147.38 from JPY147.06.

The yield on the US 10-year Treasury was quoted at 4.03%, stretching from 4.02%. The yield on the US 30-year Treasury was unmoved at 4.67%.

A barrel of Brent declined to USD65.89 on Friday morning, from USD66.42 at the time of the London equities close on Thursday. Gold rose to USD3,654.11 an ounce from USD3,636.97.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Adobe shares climb after hours as meets AI target early, ups guidance

2025-09-11T20:39:25Z

Adobe Inc shares rose on Thursday after it reported an improvement in third quarter earnings and raised fourth quarter guidance as it met a key AI target ahead of schedule.

Shares in the San Jose, California-based creative software company were up 4.0% in New York on Thursday after hours. They had earlier closed up 0.1% at USD350.55.

In the three months to August 29, net income rose 5.4% to USD1.77 billion from USD1.68 billion a year prior. Diluted earnings per share of USD4.18 compared to USD3.76.

Third quarter revenue climbed 11% to USD5.99 billion from USD5.41 billion. Of this, Digital Media segment revenue was USD4.46 billion, up 12% on-year or up 11% in constant currency. Digital Media annualized recurring revenue exiting the quarter was USD18.59 billion, up 12% on-year.

Digital Experience segment revenue was USD1.48 billion, up 9% both as reported and in constant currency. Digital Experience subscription revenue was USD1.37 billion, representing 11% growth both as reported and in constant currency.

Remaining performance obligations at quarter end were USD20.44 billion, up 13% from USD18.14 billion last year.

Chair and Chief Executive Officer Shantanu Narayen commented: "Adobe is the leader in the AI creative applications category with AI-influenced ARR surpassing USD5 billion and AI-first ARR already exceeding our USD250 million year-end target. Given our customer strategy, AI product innovation and

strong go-to-market execution, we're pleased to once again raise our [fiscal year 2025] total revenue and EPS targets."

Chief Financial Officer Dan Durn added: "Adobe delivered record [third quarter] revenue, with strength in subscription revenue across both Digital Media and Digital Experience segments. We're raising our FY25 total revenue and EPS targets as we execute against our growth strategy to deliver category leading and AI-infused solutions to meet the diverse needs of our customers."

For 2025, Adobe now expects revenue of USD23.65 billion to USD23.70 billion, up from USD23.50 billion to USD23.60 billion guided in the second quarter. It sees Digital Media segment revenue of USD17.56 billion to USD17.59 billion, up from USD17.45 billion to USD17.50 billion previously and Digital Media ending ARR growth of 11.3% compared to 11% before.

GAAP EPS of USD16.53 to USD16.58 is expected, up from USD16.30 to USD16.50 guided previously.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

NEW YORK MARKET CLOSE: Prices and jobs data signal Fed cut next week

2025-09-11T20:19:13Z

Shares ended higher in New York on Thursday as August inflation data largely came in as expected and jobless claims continued to drive higher.

The Dow Jones Industrial Average closed up 617.08 points, 1.4%, at a record 46,108.00. The S&P 500 rose 55.43 points, 0.9%, to 6,587.47. The Nasdaq Composite ended up 157.01 points, 0.7%, to a record high of 22,043.07.

"Today's CPI reading cleared the decks for a September rate cut, though the weekly claims figure provided the fuel for the real move higher in US markets," said IG Chief Market Analyst Chris Beauchamp.

"Coming off the back of last week's payrolls, the signs are there that the employment picture in the US is now definitively weakening. The Fed's rationale for acting next week got a lot stronger today, and we are seeing plenty of buying in advance of next week's meeting."

The US Department of Labor on Thursday reported said the number new unemployment insurance claims was 263,000 in the week to September 6, an increase of 27,000 from 236,000 a week prior, the latter of which was revised down from 237,000. The most recent figures are the highest since October 2021, when they stood at 268,000.

The latest reading topped the consensus which had pencilled in a decrease to 235,000.

The four-week moving average stands at 241,000 compared with 222,000 over the preceding four-week period ended on August 9.

Continuing jobless claims were unchanged at 1.939 million in the week to August 30, with the previous week's figure revised down by 1,000 from 1.940 million.

Barclays analysts attributed the increase mainly to severe flooding in Texas, which saw claims rise by 21,000.

In Barclays' view, recent seasonally adjusted data from the DoL has been "questionable due to the immense distortions during the COVID-19 lockdowns in the spring of 2020."

With this in mind, Barclays said comparisons to pre-Covid non-adjusted data show the market remains "in a low-turnover equilibrium, with hiring and separation rates having converged at low levels. This suggests that the modest job gains seen in recent months are likely persisting into September."

Oxford Economics said even though last week's spike in claims "may overstate labor market weakness," claims have indeed drifted higher.

"We expect the claims data along with other soft readings on the labor market, including the August job report and the preliminary benchmark revision to payroll employment, will lead the Fed to lower rates by 25bps at next week's FOMC meeting."

Separately, the US Bureau of Labor Statistics on Thursday said the annual CPI inflation rate accelerated to 2.9% in August from 2.7% in July, as anticipated by the FXStreet-cited consensus. The monthly inflation rate sped up to 0.4% in August from 0.2% in July, higher than the consensus of an increase to 0.3% in August.

The core annual inflation rate remained unchanged at 3.1% in August, as expected. The monthly core inflation rate was unchanged at 0.3%, also as anticipated.

The US Senate is expected to hold a confirmation vote for Federal Reserve board nominee Stephen Miran on Monday, after he passed through committee on Wednesday.

Miran would fill a seat vacated in early August by former Fed Governor Adriana Kugler.

If confirmed, Miran would be eligible to vote at the Federal Open Market Committee meeting next week.

Shares in Warner Bros Discovery soared on Thursday after the Wall Street Journal said recently merged Paramount Skydance Corp was preparing a takeover bid.

According to the WSJ, Paramount Skydance's bid will be for Warner Bros Discovery as it exists currently, despite WBD's plans to split into two separate companies next year.

The WSJ article said the bid would be "majority cash" but did not specify a price.

According to WSJ sources, the offer is "backed by the Ellison family". This includes Oracle founded Larry Ellison and his son David Ellison, chair and chief executive of Paramount Skydance.

WBD shares closed up 29%. Paramount Skydance climbed 16%.

Merck on Wednesday said it has dropped plans to build a USD1.4 billion research centre in the London, blaming the UK's "lack of investment" in the sector and its drugs prices.

The Merck statement confirmed news first reported by the Financial Times. The daily quoted the company as saying: "Simply put, the UK is not internationally competitive."

Merck closed up 1.3%.

Boeing has reached an agreement with its union after more than a month of strikes in the company's defence division, the International Association of Machinists & Aerospace Workers said on Wednesday.

"The five-year tentative agreement includes improvements to general wage increases and restores a signing bonus," the IAM union said in a statement, adding that members will have a chance to vote on the agreement on Friday.

Around 3,200 employees in the defence division have been on strike since early August. They build fighter jets, including the F-15, and missile systems in the states of Missouri and Illinois. Boeing hired some new staff in recent weeks to keep operations running.

Late last year, a strike by tens of thousands of workers halted production of Boeing's best-selling 737 model and the 777 long-haul jet for about two months. In November, employees accepted the company's offer of a 38% pay increase over four years.

Boeing closed down 3.3%.

Alaska Air on Wednesday named Diana Birkett Rakow as CEO of Hawaiian Airlines.

Rakow, currently senior vice president of public affairs and sustainability at Alaska Airlines, will succeed retiring Joe Sprague on October 29.

Rakow previously held roles at Group Health and Kaiser Permanente, after serving as a health policy advisor for the US Senate Finance Committee.

Alaska Air ended up 1.9%.

Late Thursday, the pound traded at USD1.3578, up from USD1.3529 at the New York close on Wednesday. The euro rose to USD1.1737 from USD1.1696. Against the yen, the dollar was at JPY147.16, down from JPY147.38 on Wednesday.

The US 10-year Treasury was at 4.02% late Thursday, down from 4.05% on Wednesday. The yield on the US 30-year Treasury was at 4.65%, narrowing from 4.69%.

Gold was quoted at USD3,637.14 an ounce late on Thursday, down from USD3,639.93 on Wednesday.

Brent was quoted at USD65.88 a barrel on Thursday, down from USD67.60 on Wednesday. West Texas Intermediate fell to USD61.74 from USD63.18.

In Europe, the FTSE 100 closed up 0.8% in London, as did the CAC 40 in Paris. The DAX 40 in Frankfurt rose 0.3% in Frankfurt.

In Asia, the Nikkei 225 in Tokyo climbed 1.2%. In China, the Shanghai Composite gained 1.7%, while the Hang Seng Index closed down 0.4% in Hong Kong. The S&P/ASX 200 fell 0.3% in Sydney.

Thursday's global economic calendar has the Michigan consumer sentiment index and the US World Agricultural Supply and Demand Estimates report.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

PRESS: Warner Bros Discovery jumps on Paramount Skydance bid report

2025-09-11T18:42:28Z

Shares in Warner Bros Discovery Inc soared on Thursday after a report from the Wall Street Journal that said recently merged Paramount Skydance Corp was preparing a takeover bid.

According to the WSJ report, Paramount Skydance's bid will be for Warner Bros Discovery as it exists currently, despite WBD's plans to split into two separate companies next year.

In June, the Burbank, California-based media and entertainment company said it will separate into two publicly traded companies, splitting Streaming & Studios and Global Networks to enable each to "maximise its potential".

The Streaming & Studios company will consist of Warner Bros Television, Warner Bros Motion Picture Group, DC Studios, HBO, HBO Max and its film and television libraries.

Global Networks will include global entertainment, sports, news and television brands including CNN, TNT Sports in the US and Discovery, as well as digital products such as the Discovery+ streaming service and Bleacher Report.

The WSJ article said the Paramount Skydance bid would be "majority cash" but did not specify a price.

Shares in Warner Bros Discovery were 27% higher at USD15.89 in New York on Thursday afternoon, while Paramount Skydance was up 9.8% at USD16.59.

According to WSJ sources, Paramount Skydance's offer is "backed by the Ellison family".

Larry Ellison, the Oracle founder, is the father of David Ellison, the chair and chief executive of Paramount Skydance.

In August, Skydance closed its takeover of Paramount Global following regulatory approval of the deal.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: Stocks up, dollar down as data seals US rate cut

2025-09-11T16:02:17Z

The FTSE 100 posted strong gains on Thursday as soft US jobs data, despite accelerating inflation, kept the Federal Reserve on track to lower interest rates next week.

"Inflation was a touch higher than expected and tariffs are likely to keep it elevated over coming months, but the weakening of the jobs market is now the Fed's priority, with rising jobless claims hinting at a pick-up in lay-offs at a time when hiring is subdued," James Knightley at ING observed.

The FTSE 100 index closed up 72.19 points, 0.8%, at 9,297.58. The FTSE 250 ended 159.65 points higher, 0.7%, at 21,693.75 and the AIM All-Share finished up 5.09 points, 0.7%, at 767.10.

The Cboe UK 100 ended up 0.7% at 931.44, the Cboe UK 250 closed 0.8% higher at 18,974.14 and the Cboe Small Companies finished up 0.3% at 17,098.83.

In New York, at the time of the London equities market close, the Dow Jones Industrial Average was up 1.2%, the S&P 500 rose 0.8%, and the Nasdaq Composite firmed 0.7%.

The core annual inflation rate remained unchanged at 3.1% in August, as expected. The monthly core inflation rate was unchanged at 0.3%, also as anticipated.

The most recent figures are the highest since October 2021, when they stood at 268,000, and topped the consensus which had pencilled in a decrease to 235,000.

Thomas Feltmate at TD Economics thinks goods prices are likely to continue to drift higher over the coming months as businesses increasingly pass on more tariff costs.

He believes US policymakers will need to balance the risks of reducing the policy rate by enough to "breathe some life" back into the labour market, but not by so much that they risk unnecessarily stoking inflation.

"We see the Fed delivering on three quarter-point cuts by year-end, with the first coming at next week's meeting," he added.

In Europe, the CAC 40 in Paris ended up 0.8%, while the DAX 40 in Frankfurt closed 0.3% higher.

The European Central Bank left interest rates unchanged amid a brighter forecast of economic growth, and a broadly unchanged assessment of the inflation outlook.

The decision, which was widely expected, leaves the rate on the deposit facility at 2.00%, on the main refinancing operations at 2.15%, and on the marginal lending facility at 2.40%.

President Christine Lagarde affirmed that the ECB will take a data-dependent approach to ensure it stays in the "good place" it currently finds itself in.

Lagarde said inflation is "where we want it to be" and the central bank will take a "meeting-by-meeting approach to decisions".

Irene Lauro, eurozone economist at Schroders, said: "The ECB today appears to confirm our view that the easing cycle has ended. With trade uncertainty fading, the euro area's recovery is set to accelerate."

But Wells Fargo expects the evolving growth, wage and inflation trends will still see the ECB deliver one final quarter point rate cut, to 1.75%, at its December meeting.

"We expect growth to soften in the coming quarters, reflecting slower employment and income growth, and still subdued sentiment and confidence," the broker said.

The US data put the dollar under pressure. The pound rose to USD1.3578 late on Thursday afternoon in London, compared to USD1.3548 at the equities close on Wednesday. The euro climbed to USD1.1743, against USD1.1722. Against the yen, the dollar was trading lower at JPY147.06 compared to JPY147.35.

The yield on the US 10-year Treasury was quoted at 4.02%, trimmed from 4.06% on Wednesday. The yield on the US 30-year Treasury was quoted at 4.67%, narrowed from 4.71%.

On the FTSE 100, Compass Group rose 2.8% as Deutsche Bank upgraded to 'buy' from 'hold' with a 2,900 pence price target.

But M&G traded 1.8% lower as it traded ex-dividend.

On the FTSE 250, Trainline steamed ahead by 12% after raising earnings guidance and announcing a GBP150 million share buyback.

In a trading statement, the London-based rail and bus ticketing platform said revenue increased around 2.6% to GBP235 million in the six months to August 31 from GBP229 million the year prior.

Net ticket sales were 8.3% higher at GBP3.25 billion from GBP3.00 billion.

UBS said net ticket sales were 0.4% above Visible Alpha's consensus of GBP3.24 billion, while revenue was around 1.6% ahead.

For the full year, Trainline now expects adjusted earnings before interest, tax, depreciation and amortisation to grow at the top end of its previous guidance range of between 6% and 9%.

"The overall tone is upbeat and that's exactly what the market needed to hear to get the share price moving higher again," commented Russ Mould, AJ Bell investment director.

On AIM, Fevertree Drinks cheered investors, climbing 13%, as it announced plans to cancel its share premium account to create additional distributable reserves, a move aimed at supporting future dividends, share buybacks and broader corporate flexibility.

The premium cancellation, subject to shareholder and court approval, would give the premium mixers maker more headroom to return capital to investors, the London-based manufacturer of premium drink mixers said.

A barrel of Brent traded at USD66.42 on Thursday afternoon, down from USD67.31 on Wednesday. Gold eased to USD3,636.97 an ounce on against USD3,646.88 on Wednesday.

The biggest risers on the FTSE 100 were BAE Systems, up 115.50p at 1,947.50p, Compass Group, up 70.00p at 2,610.00p, Babcock International, up 30.00p at 1,130.00p, ICG, up 60.00p at 2,262.00p and Rolls-Royce, up 24.00p at 1,123.50p.

The biggest fallers on the FTSE 100 were M&G, down 4.70p at 253.20p, Entain, down 15.60p at 860.00p, Experian, down 63.00p at 3,832.00p, WPP, down 3.80p at 394.70p and Segro, down 5.60p at 613.80p.

There are no significant events scheduled in Friday's local corporate calendar.

The global economic calendar on Friday has UK GDP and industrial production data, and inflation figures in France and Germany.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UPDATE: ECB holds rates as Lagarde affirms "good place"

2025-09-11T14:24:33Z

President Christine Lagarde affirmed that the European Central Bank will take a data-dependent approach to ensure it stays in the "good place" it currently finds itself in.

Lagarde said inflation is "where we want it to be" and the central bank will take a "meeting-by-meeting approach to decisions".

The ECB left interest rates unchanged amid a brighter forecast of economic growth, while its assessment of the inflation outlook was "broadly unchanged".

The decision, which was widely expected, leaves the rate on the deposit facility at 2.00%, on the main refinancing operations at 2.15%, and on the marginal lending facility at 2.40%.

In July, the Frankfurt-based lender left interest rates unchanged despite a "challenging" environment and uncertainty caused by trade disputes.

But Lagarde did not reveal much on the "direction of travel" for eurozone rates. She said she was not going to characterise the current juncture as a "pause".

"All of that is swept away by the principles which we have agreed, which is to be data-dependent, to decide meeting-by-meeting, to not have a pre-determined path, and to really look at [the] inflation outlook," Lagarde said.

"This is our mechanism, this is our framework,"

Numbers earlier in September showed annual consumer price index inflation accelerated slightly to 2.1% in August from 2.0% in July. The figure came in above the 2.0% increase forecast by the FXStreet-cited consensus.

Nonetheless, risks to "undershooting" the central bank's inflation target of 2% have been in focus in recently. Minutes from the July meeting showed "several members viewed inflation risks as tilted to the downside relative to the June staff projections, at least for the next two years".

ECB policymaker Isabel Schnabel, however, told Reuters earlier in September that she sees risks to inflation tilted to the upside, justifying the case for leaving rates unmoved.

On risks, Lagarde said Thursday: "We had that good discussion of risks. Risks to growth, risks to inflation. We do not ever settle on risk to inflation as to whether it is to the upside, to the downside. We mention a number of factors that constitute as risk to the upside and risk to the downside.

"But we do have those discussions, and we did have it yesterday and this morning."

Those talks resulted in a statement on risks being in the monetary policy statement.

That paragraph said: "Risks to economic growth have become more balanced. While recent trade agreements have reduced uncertainty, a renewed worsening of trade relations could further dampen exports and drag down investment and consumption. A deterioration in financial market sentiment could lead to tighter financing conditions, greater risk aversion and weaker growth.

"The outlook for inflation remains more uncertain than usual, as a result of the still volatile global trade policy environment. A stronger euro could bring inflation down further than expected. Moreover, inflation could turn out to be lower if higher tariffs lead to lower demand for euro area exports and induce countries with overcapacity to further increase their exports to the euro area. Trade tensions could lead to greater volatility and risk aversion in financial markets, which would weigh on domestic demand and would thereby also lower inflation."

The ECB said inflation could move higher "if a fragmentation of global supply chains pushed up import prices and added to capacity constraints in the domestic economy".

New ECB staff projections showed inflation a touch higher than projected in June, while economic growth projections were raised for this year.

ECB staff see headline inflation averaging 2.1% in 2025, 1.7% in 2026 and 1.9% in 2027, compared to 2.0%, 1.6% and 2.0% predicted in June.

For inflation, excluding energy and food, ECB staff expect an average of 2.4% in 2025, 1.9% in 2026 and 1.8% in 2027, versus 2.4% in 2025 and 1.9% in both 2026 and 2027, forecast in June.

The economy is projected to grow by 1.2% in 2025, revised up from the 0.9% expected in June. The growth projection for 2026 is now slightly lower, at 1.0%, while the projection for 2027 is unchanged at 1.3%.

EU chief Ursula von der Leyen defended Wednesday a much-criticised tariffs deal with Washington, saying it stabilised ties at a time of soaring global tensions and averted trade war "chaos".

"Tariffs are taxes. But the deal provides crucial stability in our relations with the US at a time of grave global insecurity," von der Leyen told the European Parliament in Strasbourg.

"Think of the repercussions of a full-fledged trade war with the US. Picture the chaos."

The July accord locks in a 15% tariff on most EU exports to the US, with exemptions for some areas – including aircraft – but not for key others, such as wine and spirits.

Lagarde said Thursday that the agreement helped diminish uncertainty.

"If you go back to June, we had a highly uncertain situation," she said.

"I think that two things have clearly moved out of our radar screen when it comes to downside risk. The first one is the risk of European retaliation. That was factored into our June projection, and that was considered as one of the risks in a trade war."

The ECB president continued: "The second thing is the uncertainty. That has clearly diminished, and we can see that in the instruments we use to measure uncertainty."

Versus the dollar, the euro traded choppily. Before the ECB decision, it traded at USD1.1685, down from USD1.1709 on Wednesday afternoon. After the rate hold, it traded as low as USD1.1666. However, it rose to USD1.1710 after a US data dump, which showed jobless claims rose but annual consumer price inflation picked up as expected.

After the press conference, it bought USD1.1741.

A stronger euro has been a talking point heading into the ECB meeting.

The ECB said: "Higher tariffs, a stronger euro and increased global competition are expected to hold growth back for the rest of the year. However, the effect of these headwinds on growth should fade next year. While recent trade agreements have reduced uncertainty somewhat, the overall impact of the change in the global policy environment will only become clear over time."

The bond market has also been in focus, amid a backdrop of widening yield spreads among eurozone constituents.

But Lagarde said "sovereign bond markets are orderly, functioning with smooth liquidity".

France has been at the heart of some bond market turmoil, but Lagarde said she would not comment on individual countries. She did state, however, that she is confident fiscal policymakers will want to "reduce uncertainty as much as possible".

"There is also a set of fiscal rules... the member states have to adhere to," she added.

Lagarde also fielded a question on the response to the last decision by the ECB in July, where she was deemed by some to have been hawkish. Lagarde said she is neither a hawk or a dove and is instead an "owl", "because I want to see everything that happens around me".

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

US CPI inflation up at 2.9% in August as expected; jobless higher

2025-09-11T12:49:50Z

The US annual consumer price index inflation rate increased as expected in August, data published by the US Bureau of Labor Statistics showed Thursday.

The country's annual CPI inflation rate accelerated to 2.9% in August from 2.7% in July, as anticipated by the FXStreet-cited consensus. The monthly inflation rate sped up to 0.4% in August from 0.2% in July, higher than the consensus of an increase to 0.3% in August.

The core annual inflation rate remained unchanged at 3.1% in August, as expected. The monthly core inflation rate was unchanged at 0.3%, also as anticipated.

The latest reading topped the consensus which had pencilled in a decrease to 235,000.

Continuing jobless claims were unchanged at 1.939 million in the week to August 30, with the previous week's figure revised down by 1,000 from 1.940 million.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

FOREX: Dollar struggles after jobless claims data; euro mixed post-ECB

2025-09-11T12:46:46Z

The euro struggled on Thursday in the wake of a European Central Bank rate hold, while the dollar surrendered some progress in the wake of in line US inflation but a loftier than expected jobless claims number.

The ECB decision, which was widely expected, leaves the rate on the deposit facility at 2.00%, on the main refinancing operations at 2.15%, and on the marginal lending facility at 2.40%.

The Governing Council is not "pre-committing to a particular rate path," the ECB added.

"By pausing, the ECB is acknowledging that growth has stabilized and inflation remains sticky. While the recovery looks durable, underlying price pressures continue to ease, leaving the door open to one final cut before year-end," BCA analyst Mathieu Savary commented.

Against the euro, sterling rose to EUR1.1572 on Thursday afternoon, from EUR1.1559 on Wednesday.

The ECB said: "The new ECB staff projections present a picture of inflation similar to that projected in June. They see headline inflation averaging 2.1% in 2025, 1.7% in 2026 and 1.9% in 2027. For inflation excluding energy and food, they expect an average of 2.4% in 2025, 1.9% in 2026 and 1.8% in 2027.

"The economy is projected to grow by 1.2% in 2025, revised up from the 0.9% expected in June. The growth projection for 2026 is now slightly lower, at 1.0%, while the projection for 2027 is unchanged at 1.3%."

Dollar weakness, however, stemmed from more downbeat labour market data. Initial jobless claims for the week to September 6 rose to 263,000 from 236,000.

The latest reading, the loftiest since October 2021, topped the FXStreet cited consensus of 235,000.

The next Federal Reserve decision is on Wednesday. According to the CME FedWatch Tool, a cut is certain. There is just over an 8% likelihood that a 50 basis point cut is enacted, according to the tool, and a 92% chance of a 25bp cut.

Against the dollar, the pound rose to USD1.3545, from USD1.3539 a day prior and USD1.3514 before the US data.

ING analysts commented: "The pound has continued to firm up against the euro, as the narrative of dire debt servicing issues in the UK lost some steam. When looking at the infamous 30-year bonds, gilts have actually outperformed the rest of Europe since the start of the month.

"The pound's much higher sensitivity than EUR and USD to back-end bond selloffs means downside risks remain ahead of a possibly chaotic pre-budget (26 November) period. But higher front-end rates led by a hawkish Bank of England continue to make the pound an expensive sell against the euro in periods of gilt stability."

The Dollar Index stood at 97.75 points, where it sat a day prior but down from earlier highs on Thursday.

Against the yen, the dollar rose to JPY147.48 on Thursday, from JPY147.39 a day prior. It had traded above JPY148 earlier Thursday, however.

Versus the Swiss franc, the buck faded to CHF0.7973 from CHF0.7978.

Rabobank analysts commented: "While the Fed is widely expected to progressively reduce rates between now and the end of next year, the outlook for the safe haven CHF may be hampered by the potential return by the SNB to negative rates this year, while the safe haven JPY has been subjected to volatility following the resignation of Japanese PM Ishiba."

Versus the Australian dollar, the buck faded to AUD1.5101 from AUD1.5109. Against its Canadian counterpart, however, it rose to CAD1.3872 from CAD1.3854.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

ECB leaves interest rates on hold amid brighter economic outlook

2025-09-11T12:32:31Z

The European Central Bank on Thursday left interest rates unchanged amid a brighter forecast of economic growth while its assessment of the inflation outlook was "broadly unchanged".

The decision, which was widely expected, leaves the rate on the deposit facility at 2.00%, on the main refinancing operations at 2.15%, and on the marginal lending facility at 2.40%.

In July, the Frankfurt-based lender left interest rates unchanged despite a "challenging" environment and uncertainty caused by trade disputes.

On Thursday, the ECB said it is determined to ensure that inflation stabilises at its 2% target in the medium term.

"It will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance," it stated.

The Governing Council is not "pre-committing to a particular rate path," the ECB added.

New ECB staff projections showed inflation a touch higher than projected in June, while economic growth projections were raised for this year.

ECB staff see headline inflation averaging 2.1% in 2025, 1.7% in 2026 and 1.9% in 2027, compared to 2.0%, 1.6% and 2.0% predicted in June.

For inflation, excluding energy and food, ECB staff expect an average of 2.4% in 2025, 1.9% in 2026 and 1.8% in 2027, versus 2.4% in 2025 and 1.9% in both 2026 and 2027, forecast in June.

The euro traded at USD1.1673 shortly after the announcement compared to USD1.1685 before.

A press conference with ECB President Lagarde follows at 1345 BST.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

COMMODITIES: Gold rally fizzles before US inflation data; oil lower

2025-09-11T11:32:57Z

Gold retreated on Thursday, but analysts maintained that the bull run remained intact given the likelihood of interest rate reduction in the US and geopolitical risks.

Spot gold was quoted at USD3,620.72 an ounce on Thursday afternoon in London, down from USD3,656.19 at the same time on Wednesday. Silver eased to USD41.07 an ounce from USD41.21.

The rally in yellow metal stalled, as investors awaited fresh leads following a strong run over the past few days.

Gold could consolidate and may have hit a "light technical correction" after hitting a record early this week, analysts said.

The precious metal broke an all-time high point of USD3,673 an ounce on Tuesday, having clocked a series of records since last week, amid rising expectations of US interest rate cuts.

All eyes turn to the US consumer price inflation for August, which is expected this afternoon.

"However, the metal could continue to benefited from a dovish shift in interest rate expectations following disappointing labour indicators and the latest inflation data release," said Joseph Dahrieh, managing principal at Tickmill.

"August's producer price index unexpectedly declined, with both headline and core readings falling 0.1% against forecasts of an increase," Dahrieh said, adding: "This followed earlier signs of a softening labour market and strengthened the case for the Federal Reserve easing."

US producer price index rose 2.6% on-year in August, easing from a 3.1% advance for July, numbers from the Bureau of Labor Statistics showed Wednesday. A rise of 3.3% was expected for August, according to consensus cited by FXStreet.

In addition, bullion continued to benefit from geopolitical tensions, especially in the Middle East and in Eastern Europe, Dahrieh said.

"The move lower in bullion is largely tied to a light technical correction and the easing concerns about of the AI-driven market exuberance after Oracle's surprise announcement," XS.com analyst Samer Hasn said.

"Relief in the tech sector over inflated valuations reduced defensive demand for gold, creating room for more downside pressure," Hasn said.

In other commodities, Brent crude oil was priced at USD67.04 a barrel on Thursday, essentially flat from USD67.03 on Wednesday. West Texas Intermediate inched down to USD63.17 a barrel, compared to USD63.31.

The oil market in Thursday's session pitted signs of softer US energy demand, against geopolitical risks, Hargreaves Lansdown analyst Matt Britzman said.

A surprise build in US crude oil stocks hinted at weaker consumption in the world's largest economy, tempering bullish momentum, Britzman said.

Official US crude oil inventories rose by 3.9 million barrels for the week that ended September 5 to 424.6 million barrels, the Energy Information Administration reported on Wednesday.

"Still, tensions from Moscow to the Middle East kept a risk premium in play, as markets await President Trump's response to Russia's airspace breach and fresh calls for EU tariffs on major Russian crude buyers," Hargreaves Lansdown analyst said.

In other metals, platinum was priced at USD1,387.30 an ounce on Thursday, down from USD1,396.60 on Wednesday. But palladium was quoted at USD1,185.23 an ounce, up from USD1,170.11.

In base metals, the copper price jumped to USD9,930.00 per tonne from USD9,910.00. Aluminium firmed to USD2,622.00 from USD2,617.00.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: Solid advance in Europe before ECB rate call

2025-09-11T11:02:42Z

Stock prices in Europe were on the up on Thursday afternoon, ahead of a US inflation reading which represents the last obstacle before an expected Federal Reserve cut.

While the Fed is seen cutting next week, the European Central Bank is expected to hold.

The FTSE 100 index rose 45.39 points, 0.5%, at 9,270.78. The FTSE 250 was up 99.22 points, 0.5%, at 21,633.32, and the AIM All-Share was up 2.62 points, 0.3%, at 764.63.

The Cboe UK 100 was up 0.5% at 929.52, the Cboe UK 250 was also up 0.5%, sitting at 18,928.27, while Cboe Small Companies was 0.1% higher at 17,063.78.

In Paris, the CAC 40 was up 0.9%. In Frankfurt, the DAX 40 was 0.2% higher. Despite recent political turmoil in France, barely a handful of Paris blue-chips traded in the red on Thursday afternoon, with LVMH the worst performer, down only 0.2%. Societe Generale was up 2.5% and has shot up almost 8% this week, despite the political uncertainty.

The pound fell to USD1.3508 on Thursday afternoon from USD1.3548 at the time of the London equities close on Wednesday. The euro faded to USD1.1685 from USD1.1722. Against the yen, the buck surged to JPY147.98 from JPY147.35.

The yield on the US 10-year Treasury was quoted at 4.05%, narrowing from 4.06% late Wednesday afternoon London time. The 30-year yield narrowed to 4.69% from 4.71%.

The global economic calendar on Thursday has US inflation figures and weekly jobless claims data at 1330 BST, after the European Central Bank's interest rate decision at 1315.

Rostro analyst Joshua Mahony commented: "Policymakers are widely expected to keep rates unchanged, with markets increasingly convinced the easing cycle has run its course. Inflation remains largely at target, and economic indicators such as the manufacturing PMI have managed to make a significant recovery over the past year.

"This highlights the potential desire for the ECB to hold back some ammunition, shifting the focus away from further stimulus and towards the resilience of the underlying economy. Traders will be closely following Lagarde’s testimony for any signs that the rate cuts are behind us, while economic projections also tell a story around the direction of travel for the eurozone."

In New York, the Dow Jones Industrial Average and S&P 500 are called to open 0.2% higher, and the Nasdaq Composite up 0.3%.

According to consensus cited by FactSet, the US annual consumer price inflation rate is expected to have accelerated to 2.9% in August, from 2.7% in July.

"We think the combination of a moderation in jobs growth and still-manageable inflation should keep the Fed on track to cut rates, with a 25-basis-point cut expected in September to be followed by three additional consecutive cuts of the same size by January 2026," UBS analyst Mark Haefele commented.

"Against this backdrop, we maintain our positive view on quality bonds and continue to favour medium duration Treasuries as part of a well-diversified portfolio. Gold, already trading near record highs, should continue to perform as a portfolio diversifier and an effective hedge against both macroeconomic uncertainty and political risks. Falling rates should further support the rally in equities, with the S&P 500 expected to finish 2025 near 6,600 and reach 6,800 by end-June 2026."

In New York, shares in buy now pay later service provider Klarna will remain in focus. The stock jumped 15% on its debut on Wednesday. Elsewhere, Oracle added 36% on Wednesday after its earnings late Tuesday. Klarna is down 2.5% in pre-market trade on Thursday, and Oracle is up 1.1%.

Gold fell to USD3,622.17 an ounce midday Thursday, from USD3,646.88 at the time of the London equities close on Wednesday. A barrel of Brent fell to USD66.98, from USD67.31.

Gold miner Fresnillo and oil major BP were among the best performers in London, despite the fall in the bullion and Brent prices. Fresnillo was up 2.1% and BP added 1.2%. Fresnillo shares have more than trebled this year.

Trainline shares steamed ahead, adding 8.3%. It announced a new share buyback after a "robust" first half.

For the full year, which ends in February, Trainline reconfirmed its year-on-year growth expectations for net ticket sales of between 6% and 9% and revenue of between 0% and 3%.

However, the company now expects adjusted earnings before interest, tax, depreciation and amortisation to grow at the top end of its previous guidance range of between 6% and 9%.

In addition, Trainline announced that once its current share buyback ends, it will "launch an enhanced repurchase programme" worth GBP150.0 million.

THG shares pushed 9.6% higher. It said sales momentum was building, despite a weak start to the financial year, with trading in the third quarter the strongest in 2025 so far.

The Manchester-based retail firm, behind brands such as Lookfantastic and Myprotein reported a pretax loss of GBP66.7 million in the first half of 2025 widened from GBP56.4 million the year prior.

Revenue weakened 7.6% to GBP783.4 million from GBP848.1 million, or by 2.6% at constant currency.

THG Beauty sales dropped 12%, or by 5.9% at constant currency, while THG Nutrition sales grew 1.1%, or by 3.1% at constant currency.

THG said trading gained momentum throughout the first six months of 2025 and this has continued into the third quarter, which has seen the strongest trading performance in the year so far.

As a result, THG maintained guidance. It expects THG Beauty to deliver second half revenue growth of 1.0% to 3.0% at constant currency, and predicts growth of 10% to 12% at THG Nutrition.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

German exports to plummet by 2.5% in 2025 — industry group BGA

2025-09-11T10:40:29Z

German exports are set to decline by 2.5% this year, according to a forecast by industry association BGA on Thursday, with new US tariffs and red tape at home adding to the struggles facing German businesses.

"There is currently no sign of a sustained upturn in German exports - it remains unlikely that previous growth rates will be achieved," said BGA President Dirk Jandura.

Germany exported goods worth a total of EUR1.549 trillion in 2024, a decline of 1.7% on the previous year.

In the first six months of 2025, total exports amounted to some EUR786 billion, according to the country's statistical office.

Germany's economy, which is reeling from two consecutive years of recession, depends heavily on exports, but many of its core industries have been hit hard by the new tariffs imposed by US President Donald Trump.

As of August 7, most EU exports to the US have been subjected to a 15% baseline duty, with imports of steel and aluminium facing tariffs as high as 50%.

German exports to the US, the country's most important trading partner, were down for the fourth consecutive month in July, plunging to the lowest level since December 2021.

"Many of the new US tariffs are so high that business is simply becoming impossible - for numerous German exporters, this effectively means losing the US market," Jandura said.

source: dpa

Taiwan plans USD18 billion for "resilience" to tariffs, China

2025-09-11T09:55:07Z

Taiwan's government plans to spend USD18 billion on strengthening the island's "resilience", including helping industries hit by US tariffs and boosting its defences against Chinese threats, the cabinet said Thursday.

The special budget bill was approved on Thursday but it has to be passed by the opposition-controlled parliament before it can take effect.

The TWD550 billion, USD18 billion, in funds would be used to support industries hit by the US' 20% tariff, and provide cash handouts to people, the cabinet said.

It also included TWD150 billion for strengthening Taiwan's defences, such as buying more coast guard patrol boats, making drones and boosting the military's command and control systems.

Defence Minister Wellington Koo said the funding would "increase our combat readiness" and "ensure operational resilience" as Chinese pressure on the island intensifies.

"In recent years, China has been increasing grey-zone harassment and military intimidation," Koo said.

"We cannot ignore the existence of such threats. We must face them and remain vigilant."

Taiwan lives under the constant threat of invasion by China, which claims the self-ruled island is part of its territory and has threatened to seize it by force.

The island has ramped up spending on military equipment and weapons over the past decade, but it remains heavily reliant on the US to deter a Chinese attack.

President Lai Ching-te said last month Taiwan's defence spending was expected to reach five percent of gross domestic product by 2030.

His government has also announced plans to increase the 2026 defence budget to 3.32% of GDP.

source: AFP

Playtech shares rise as guides adjusted earnings ahead of expectations

2025-09-11T08:12:21Z

Playtech PLC on Thursday reported a swing to a loss amid lower revenue, but saw its shares climb higher as it said it expects to beat adjusted earnings expectations for the full year.

Shares in the company climbed 7.2% to 425.00 pence on Thursday morning in London, giving Playtech a market capitalisation of GBP1.33 billion. However, its shares are down 33% over the last 12 months.

The Douglas, Isle of Man-based gambling software operator reported a swing to a pretax loss of EUR58.8 million for the six months that ended June 30, from profit of EUR21.5 million a year earlier.

Driving the weaker earnings was a mix of lower revenue and higher costs.

Playtech's top line contracted 9.9% to EUR387.0 million from EUR429.7 million, while administrative expenses before depreciation and amortisation more than doubled to EUR118.0 million from EUR55.3 million.

Playtech also reported a EUR31.2 million loss in unrealised fair value changes of derivative financial assets, swinging from a EUR51.3 million gain.

Earnings before interest, tax, depreciation and amortisation were down 87% at EUR12.9 million from EUR99.3 million.

Looking to the full-year, Playtech reported a "solid start" to second half trading, noting plans to increase investment growth in the US and Brazil in the second half of the year.

Despite headwinds in Brazil and Colombia, Playtech said it is on track to beat full-year adjusted Ebitda expectations.

"These results show the strong start Playtech is making in its transition back to its roots as a predominantly pure-play B2B business. I'm very pleased that we have reported earnings ahead of expectations from earlier in the year, reflecting the strong performance across our key markets," said Chief Executive Mor Weizer.

"The second half of the year has started well, and we are on track to be ahead of expectations for the year and well placed to achieve the ambitious medium-term growth targets we set out at the FY 2024 results. The strength of our balance sheet will allow us to increase investment in the US and Brazil in H2 to drive continued growth," continued Weizer.

By Christopher Ward, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET OPEN: Stocks climb before US inflation reading, ECB

2025-09-11T07:58:11Z

European stocks opened largely in the green on Thursday, as investors gear up for a US inflation reading and a European Central Bank decision.

The ECB is expected to leave rates unmoved on Thursday, though next week, the Federal Reserve is expected to cut. The size of the cut could hinge on Thursday's consumer price index data.

The FTSE 100 index rose 40.78 points, 0.4%, at 9,266.17. The FTSE 250 was up 56.21 points, 0.3%, at 21,590.31, and the AIM All-Share was up 2.91 points, 0.4%, at 764.92.

The Cboe UK 100 was up 0.4% at 929.12, the Cboe UK 250 was up 0.2% at 18,875.60, but the Cboe Small Companies was 0.1% lower at 17,042.20.

In Paris, the CAC 40 was up 0.3%. In Frankfurt, the DAX 40 was flat.

The pound fell to USD1.3514 on Thursday morning from USD1.3548 at the time of the London equities close on Wednesday. The euro faded to USD1.1692 from USD1.1722. Against the yen, the buck rose to JPY147.80 from JPY147.35.

The yield on the US 10-year Treasury was quoted at 4.06%, where it stood late Wednesday afternoon London time. The 30-year yield remained at 4.71%.

In New York on Wednesday, the Dow Jones Industrial Average fell 0.5%, the S&P 500 added 0.3% and the Nasdaq Composite edged up marginally.

In Tokyo on Thursday, the Nikkei 225 ended up 1.2%. The Shanghai Composite in China surged 1.7%. The Hang Seng Index in Hong Kong was down 0.3% in late trade. Sydney's S&P/ASX 200 fell 0.3%.

The global economic calendar on Thursday has US inflation figures and weekly jobless claims data at 1330 BST, after the European Central Bank's interest rate decision at 1315.

"After a subdued PPI print yesterday, the chances of today's US core CPI exceeding the consensus 0.3% MoM are lower. We expect firmer conviction on three Fed cuts by year-end after today's release and a weaker USD. In the eurozone, the ECB meeting should have little impact on FX, with only some minor EUR downside risks," analysts at ING commented.

The European Central Bank is expected to leave rates unmoved again, putting the central bank's latest batch of forecasts in focus, with any nod to an inflation undershoot presenting a "dovish risk" to proceedings.

In July, the Frankfurt-based official lender left interest rates unchanged despite a "challenging" environment and uncertainty caused by trade disputes.

The decision, which was expected, left the rate on the deposit facility at 2.00%, on the main refinancing operations at 2.15%, and on the marginal lending facility at 2.40%.

What followed was a "wait-and-see holiday", a phrase ECB President Christine Lagarde coined at the end of the last meeting, typifying the central bank's approach to rate decisions.

That approach is likely to continue. Another hold is in the offing on Thursday, analysts predict. The ECB announces its decision at 1315 BST, and a press conference with Lagarde follows around half an hour later.

A barrel of Brent edged up to USD67.38 early Thursday, from USD67.31 at the time of the London equities close on Wednesday. Gold faded to USD3,629.03 an ounce from USD3,646.88.

In London, shares in the largest FTSE 100 listings were on the up, supporting the index. Among them, Shell rose 1.0%, HSBC added 0.8% and AstraZeneca rose 0.4%.

BAE Systems was the best performer, up 3.0%, during a week when geopolitical fears have come to the fore again. Shares in the aerospace and defence firm are up over 6% so far this week.

On the decline, M&G lost 2.6%. Shares have gone ex-dividend, meaning new buyers will not qualify for the latest payout.

Equipment rental firm Ashtead lost 1.4% after Jefferies cut the stock to 'hold'. Among FTSE 250s, Hays shed 2.6%. The recruiter was also cut to 'hold' by Jefferies.

Trainline shares rose 9.2%. Trainline reported a "robust" performance in its first half and the rail ticket selling platform announced a GBP150.0 million buyback. For the six months to August 31, Trainline's revenue increased around 2.6% to GBP235 million from GBP229 million, the firm said in a trading statement.

Net ticket sales were 8.3% higher at GBP3.25 billion from GBP3.00 billion, it added.

"Rail liberalisation in Europe continues to demonstrate the value Trainline brings as the preeminent domestic aggregator, most recently in Southeast France where increased carrier competition between Paris, Lyon and Marseille has driven Q2 sales growth of 34%. At the same time, Trainline Solutions has become a GBP1 billion sales business as we help more clients of all sizes, from SMEs to the world's largest travel management companies, ramp up business travel sales across Europe," Chief Executive Officer Jody Ford said.

Looking ahead, Trainline expects adjusted earnings before interest, tax, depreciation and amortisation "to track above the top end" of its full-year growth guidance range of 6% to 9%.

It affirmed its revenue and net ticket sales growth expectations. It still expects a revenue outcome ranging from flat to a 3% rise, and net ticket sales growth between 6% and 9%.

Trainline announced that once its current share buyback ends, it will "launch an enhanced repurchase programme" worth GBP150.0 million.

"It would imply GBP350 million of shares being bought back and cancelled over a three-year period," it added.

Fevertree surged 9.7%. It lifted its half-year dividend and reported a "good start to the second half of the year". Pretax profit in the first six months of 2025 was down 15% to GBP11.2 million from GBP13.2 million, on revenue which fell 17% to GBP144.3 million from GBP172.9 million.

"In the UK, the wider On-Trade category continues to face challenges, but our Off-Trade performance has remained robust. Importantly, more than half of the 3.6 million UK households that buy Fever-Tree are now also purchasing products from our broader portfolio such as our Ginger Beer or premium soft drinks, a clear sign that our diversification strategy is resonating with consumers and broadening the occasions in which our brand is enjoyed," CEO Tim Warrillow said. "Together with the operational progress we are making and the strong performance we have seen over the summer months, we are well placed for both the second half of the year and to capture the long-term opportunities ahead."

Fevertree lifted its half-year dividend to 5.97p per share from 5.85p.

Looking ahead, it said: "The group has made a good start to the second half of the year across our regions and we remain comfortable with full year market expectations."

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

China says "firmly opposes coercion" as Mexico mulls car tariffs

2025-09-11T07:49:06Z

China on Thursday said it "firmly opposes any coercion" after Mexico proposed a 50% duty on car imports from the Asian giant.

"China...firmly opposes any coercion by others to impose restrictions on China under various pretexts, which undermines China's legitimate rights and interests," foreign ministry spokesman Lin Jian told a regular news briefing.

source: AFP

Trainline boosts guidance and launches bumper GBP150 million buyback

2025-09-11T07:49:05Z

Shares in Trainline PLC steamed ahead on Thursday as it raised its earnings outlook and announced a new GBP150 million share buyback after a "robust" first half.

Shares in the London-based digital rail and coach ticketing platform were 12% higher at 290.79 pence each in London on Thursday morning.

In a trading statement, Trainline said revenue increased around 2.6% to GBP235 million in the six months to August 31 from GBP229 million the year prior. Trainline pointed out this is tracking towards the upper end of its full year guidance range for growth of between 0% to 3%.

Net ticket sales were 8.3% higher at GBP3.25 billion from GBP3.00 billion, tracking towards the upper end of Trainline's full year guidance range for growth of between 6% to 9%.

UK sales grew 8.1%, International sales increased 1.9% and Trainline Solutions rose 18%.

In the UK, growth was partly offset by the first phase of Project Oval, Transport for London's expansion of its contactless payment network, Trainline explained.

UK Consumer revenue was broadly flat at GBP107 million year-on-year, primarily reflecting the reduction in the headline commission rate in the UK in April from 5.0% to 4.5%, as previously announced in 2022, plus the mix effect of growing faster in on-the-day travel, which generates relatively lower rates of revenue than longer-distance travel.

For the full year, Trainline reconfirmed its year-on-year growth expectations for net ticket sales of between 6% and 9% and revenue of between 0% and 3%.

However, the company now expects adjusted earnings before interest, tax, depreciation and amortisation to grow at the top end of its previous guidance range of between 6% and 9%.

In the 12 months to February 2025, adjusted Ebitda totalled GBP159 million, itself up 30% from GBP122 million the year prior.

In addition, Trainline announced that once its current share buyback ends, it will "launch an enhanced repurchase programme" worth GBP150.0 million.

As at September 5, Trainline had acquired GBP71 million shares from its existing GBP75 million share repurchase programme.

"It would imply GBP350 million of shares being bought back and cancelled over a three-year period," Trainline added.

Trainline reports half-year results on November 5.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UK Chancellor Reeves mulls business rates reforms as economy "stuck"

2025-09-11T07:41:59Z

The chancellor has said the UK economy feels "stuck" as she revealed plans to consider business rates reforms including removing "cliff edges" for small firms.

The Treasury is looking at changes to the current system of business rates – the tax on UK business properties – as part of efforts to cut red tape and improve growth.

In an initial report into business rates, the Treasury said it would consider overhauling small business rates relief rules which "can discourage" expansion and investment.

The current rule means that when a company opens a second property it loses access to all small business rates relief unless it meets specific criteria.

It comes as part of the government's commitment to review business rates more widely amid mounting calls from firms and business groups for wholesale reform of the system.

It is understood that bosses of major high street firms, such as John Lewis, met with the Chancellor Rachel Reeves last week and encouraged a shake-up of current business rates rules.

Reeves said: "Our economy isn't broken, but it does feel stuck. That's why growth is our number one mission.

"Tax reforms such as tackling cliff-edges in business rates and making reliefs fairer are vital to driving growth.

"We want to help small businesses expand to new premises and building an economy that works for, and rewards working people."

By Henry Saker-Clark and Holly Williams

Press Association: Finance

source: PA

LONDON BRIEFING: Trainline announces buyback; THG hails momentum

2025-09-11T06:54:36Z

Trainline reports a strong first half and announces a GBP150.0 million share buyback, Fevertree's profit falls but it lifts its dividend, while THG says it Beauty and Nutrition units will see second half growth.

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

----------

MARKETS

----------

FTSE 100: called 0.2% at 9,247.99

GBP: lower at USD1.3518 (USD1.3548 at previous London equities close)

----------

BROKER RATINGS

----------

Jefferies cuts Ashtead Group to 'hold' (buy) - price target 5,700 (5,900) pence

----------

COMPANIES - FTSE 250

----------

Trainline reports it saw a "robust" performance in its first half and the rail ticket selling platform announces a GBP150.0 million buyback. For the six months to August 31, Trainline's revenue increased around 2.6% to GBP235 million from GBP229 million, the firm says in a trading statement. Net ticket sales were 8.3% higher at GBP3.25 billion from GBP3.00 billion, it adds. "Rail liberalisation in Europe continues to demonstrate the value Trainline brings as the preeminent domestic aggregator, most recently in Southeast France where increased carrier competition between Paris, Lyon and Marseille has driven Q2 sales growth of 34%. At the same time, Trainline Solutions has become a GBP1 billion sales business as we help more clients of all sizes, from SMEs to the world's largest travel management companies, ramp up business travel sales across Europe," Chief Executive Officer Jody Ford says. Looking ahead, Trainline expects adjusted earnings before interest, tax, depreciation and amortisation "to track above the top end" of its full-year growth guidance range of 6% to 9%. It affirms its revenue and net ticket sales growth expectations. It still expects a revenue outcome ranging from flat to a 3% rise, and net ticket sales growth between 6% and 9%. Trainline announces that once its current share buyback ends, it will "launch an enhanced repurchase programme" worth GBP150.0 million. "It would imply GBP350 million of shares being bought back and cancelled over a three-year period," it adds. Trainline reports half-year results on November 5.

----------

Energean reports its half-year earnings have been hit by shutdowns and a weaker Brent price. In the six months to June 30, pretax profit fell 0.5% to USD174.1 million from USD175.0 million a year prior, the exploration and production company says. Revenue declined 7.2% to USD803.8 million from USD866.6 million. It notes that net profit increased, however. Post-tax profit was up by around a quarter to USD110.5 million. "Our business has remained resilient, despite the external geopolitical and market pressures, underpinned by disciplined capital management and cost control, a clear focus on long-term value creation and delivery of operational excellence," Chief Executive Officer Mathios Rigas says. "Despite the temporary suspension of operations in Israel for two weeks during the peak summer months, as ordered by the Ministry due to geopolitical factors, net profit increased during the period and we are therefore pleased to declare our regular quarterly dividend today." Energean says it has maintained its total half-year dividend at USD0.60 per share.

----------

OTHER COMPANIES

----------

Fevertree Drinks says it has lifted its half-year dividend and reports a "good start to the second half of the year". Pretax profit in the first six months of 2025 was down 15% to GBP11.2 million from GBP13.2 million, on revenue which fell 17% to GBP144.3 million from GBP172.9 million, the firm reports. "In the UK, the wider On-Trade category continues to face challenges, but our Off-Trade performance has remained robust. Importantly, more than half of the 3.6 million UK households that buy Fever-Tree are now also purchasing products from our broader portfolio such as our Ginger Beer or premium soft drinks, a clear sign that our diversification strategy is resonating with consumers and broadening the occasions in which our brand is enjoyed," CEO Tim Warrillow says. "Together with the operational progress we are making and the strong performance we have seen over the summer months, we are well placed for both the second half of the year and to capture the long-term opportunities ahead." Fevertree lifted its half-year dividend to 5.97p per share from 5.85p. Looking ahead, it says: "The group has made a good start to the second half of the year across our regions and we remain comfortable with full year market expectations."

----------

THG reports weaker interim earnings but the e-commerce firm says it has "gained momentum throughout the first half". THG's pretax loss in the first half of 2025 widened to GBP66.7 million from GBP56.4 million, it says. Revenue weakened 7.6% to GBP783.4 million from GBP848.1 million. The firm has undergone some changes recently, which leave it well-placed to move to a net cash footing, it adds. "The successful THG Ingenuity demerger at the start of H1 alongside the Q3 disposal of Claremont Ingredients to Nactarome Group for GBP103 million, puts the group on an accelerated path towards a net cash position, with the H1 2025 refinancing securing long-term committed facilities," THG says. "Trading momentum from Q2 into Q3 continues to build positively, with the strategic model changes implemented across both THG Beauty and THG Nutrition throughout 2024 now bearing results. This momentum underpins confidence in full year and medium-term outlook." For the second half, THG Beauty is expected to see revenue growth of 1.0% to 3.0%, improving from a 5.9% decline in the first. A THG Nutrition revenue surge between 10% and 12% is predicted, picking up speed from a 3.1% rise in the first half. THG says: "As we now enter peak trading, THG Beauty has returned to growth, helped in part by annualising the impact of deprioritising selected low-margin European and Asia territories, alongside strengthening home market demand. Advent season has been the strongest launch in history across LOOKFANTASTIC and Cult Beauty edits." It continues: "To drive market share gains across both D2C and offline retail, Myprotein will limit price increases in H2 2025, further supporting growth in new customers and enabling an acceleration of its installed base in global offline retail."

----------

Fire safety products firm Zenova announces it has entered into non-binding terms to acquire Restoreo International. The possible transaction will be classed as a reverse takeover, so shares in Zenova have been suspended. "The board is confident that by leveraging Restoreo's working capital, existing technology, IP, logistics and distribution capabilities alongside Zenova's existing technology, IP, and manufacturing infrastructure, the enlarged group will be able to drive international growth through a combined product portfolio," Zenova says. Restoreo serves the insulation materials industry, in particular the windows and flooring markets.

----------

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 to rise before ECB, US data

2025-09-11T05:58:05Z

London's FTSE 100 is called to open higher, recouping its loss from Wednesday, ahead of a eurozone interest rate decision and US inflation reading.

IG says futures indicate the FTSE 100 to open 17.6 points higher, 0.2%, at 9,242.99 on Thursday. The index of London large-caps closed down 17.14 points, 0.2% at 9,225.39 on Wednesday.

The pound fell to USD1.3524 on Thursday morning from USD1.3548 at the time of the London equities close on Wednesday. The euro faded to USD1.1697 from USD1.1722. Against the yen, the buck rose to JPY147.45 from JPY147.35.

The yield on the US 10-year Treasury was quoted at 4.06%, where it stood late Wednesday afternoon London time. The 30-year yield remained at 4.71%.

In New York on Wednesday, the Dow Jones Industrial Average fell 0.5%, the S&P 500 added 0.3% and the Nasdaq Composite edged up marginally.

In Tokyo on Thursday, the Nikkei 225 was up 0.8% in late trade. The Shanghai Composite in China was up 1.0%. The Hang Seng Index in Hong Kong was down 0.3%. Sydney's S&P/ASX 200 was 0.3% lower.

The global economic calendar on Thursday has US inflation figures and weekly jobless claims data, plus the European Central Bank's interest rate decision and press conference.

"Yesterday's US PPI update suggested a notable drop in input price inflation in August. Both headline and core PPI unexpectedly fell last month, pulling the annual figures down to 2.6% for the headline and 2.8% for the core. Though still sticky near 3%, these figures do not disrupt dovish Federal Reserve expectations — nor do they strengthen them. US 2-year yields slipped slightly, while the S&P 500 hit a fresh record before giving back gains," Swissquote analyst Ipek Ozkardeskaya commented.

"All eyes now turn to today's CPI report. Headline inflation is expected to tick up to 2.9% from 2.7% a month earlier, while core inflation is seen holding sticky at 3.1% year-on-year. A softer-than-expected set of numbers could fuel bets of a jumbo Fed cut next week to support a weakening jobs market, while stronger-than-expected figures would strengthen the case for the Fed to start with a 25bp cut and follow with two more. In that case, we could see consolidation in 2-year yields and the dollar, and only limited incremental appetite for equities."

In July, the Frankfurt-based official lender left interest rates unchanged despite a "challenging" environment and uncertainty caused by trade disputes.

The decision, which was expected, left the rate on the deposit facility at 2.00%, on the main refinancing operations at 2.15%, and on the marginal lending facility at 2.40%.

What followed was a "wait-and-see holiday", a phrase ECB President Christine Lagarde coined at the end of the last meeting, typifying the central bank's approach to rate decisions.

Rabobank analysts commented: "The doves don't have a solid case for another rate cut, as some hawks are starting to think about the future need for rate hikes already. Even though we forecast higher headline inflation than the ECB, we expect only relatively small adjustments to the ECB's economic projections."

A barrel of Brent faded to USD67.20 early Thursday, from USD67.31 at the time of the London equities close on Wednesday. Gold faded to USD3,632.01 an ounce from USD3,646.88.

Thursday's local corporate calendar has half-year results from soft drinks manufacturer Fevertree Drinks and a trading statement from online train ticket platform, Trainline.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

NEW YORK MARKET CLOSE: Shares mixed as inflation cooler than forecast

2025-09-10T20:36:00Z

Shares ended mixed in New York on Wednesday as August producer price inflation was cooler than expected, while Oracle shocked analysts with its four-year Cloud Infrastructure outlook.

The Dow Jones Industrial Average closed down 220.42 points, 0.5%, at 45,490.92. The S&P 500 rose 19.43 points, 0.3%, to 6,532.04. The Nasdaq Composite ended up 6.57 points at a record high of 21,886.06.

Oracle shares soared on Wednesday as investors relished new guidance on AI revenue, despite quarterly earnings falling short of expectations.

In the three months to August 31 net income was flat USD2.93 billion with diluted earnings per share edging down to USD1.01 from USD1.03. Revenue increased 12% to USD14.93 billion from USD13.31 billion a year prior, shy of USD15.03 billion consensus.

But it was the firm's prediction that Oracle Cloud Infrastructure revenue will grow to USD144 billion over the next four years that sent shares higher. Oracle said MultiCloud database revenue from Amazon, Google and Microsoft grew at an astonishing 1,529% in the quarter.

Chief Technology Officer Larry Ellison said the company expects MultiCloud revenue to grow "substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscaler partners, for a total of 71."

CTO Ellison said eventually, "AI will change everything". "But right now, AI is fundamentally transforming Oracle and the rest of the computer industry, though not everyone fully grasped the extent of the tsunami that is approaching."

Oracle ended up 36%. "It's simply jaw-dropping how a company worth hundreds of billions of dollars can see its share price pop by 40% in a single day," said Danni Hewson, head of financial analysis at AJ Bell.

The Bureau of Labor Statistics on Wednesday said US producer prices rose 2.6% on-year in August, easing from a 3.1% advance for July. A year-on-year rise of 3.3% was initially reported for July. Another rise of 3.3% was expected for August, according to consensus cited by FXStreet.

On-month, prices fell 0.1% in August, after a 0.7% rise in July from June. It was the first monthly decline since April. The monthly figure undershot expectations of a 0.3% rise.

Excluding foods, energy, and trade, producer prices rose 2.8% on-year in August, picking up speed from 2.7% in July. On-month, they rose 0.3% in August, easing from 0.6% in July from June.

With the softer report following better than expected jobs data, markets continued to price in a 25 basis points interest rate cut from the Federal Reserve next week. The CME FedWatch tool now shows a 91.2% chance of a cut to the target range of 4.00-4.25%.

Elsewhere, the US Census Bureau said US wholesale inventories totalled USD908.1 billion at the end of July, up 0.1% from June, but lower than an advance estimate of 0.2%, which was also FXStreet consensus. Total inventories were up 1.3% year-on-year.

Total wholesale sales were USD711.3 billion in July, up 1.4% from June, and 6.2% higher year-on-year. June's figure was revised upwards to 0.7% from the preliminary estimate of up 0.3%.

Both the inventories and sales figures exclude manufacturers' sales branches and offices, are adjusted for seasonal variations and trading day differences, but not for price changes.

The July inventories/sales ratio for merchant wholesalers was 1.28. The July 2024 ratio was 1.34.

Several Russian and Belorussian drones were shot down in Poland on Wednesday, after what European leaders called a deliberate provocation by Russia.

Russian drones and missiles have entered the airspace of NATO members – including Poland – several times during Russia's three-and-a-half-year war with Ukraine, but a NATO country has never attempted to shoot them down.

Russia's Defense Ministry said it did not target Poland, while Belarus said it tracked some drones that "lost their course" because they were jammed.

Polish Prime Minister Donald Tusk said "a significant portion of the drones came directly from Belarus."

"What is new, in the worst sense of the word, is the direction from which the drones came. This is the first time in this war that they did not come from Ukraine as a result of errors or minor Russian provocations."

GE Healthcare Technologies said it has struck a deal to buy icometrix, a company focused on providing artificial intelligence-powered brain imaging analysis.

GE Healthcare said it expects to integrate the icometrix icobrain platform with its MRI systems. The tool includes the first US Food & Drug Administration-cleared computer-aided detection and diagnosis solution for detecting known side effects of amyloid-targeting therapies, which are used to treat Alzheimer's disease.

GE Healthcare lost 3.5%.

Synopsys shares tumbled on Wednesday as the company gave a "more conservative" fourth quarter guide after third quarter revenue and earnings fell short of expectations.

In the third quarter ended July 31, net income climbed to USD242.5 million from USD408.1 million a year prior. Basic net income per share was USD1.51 compared to USD2.66.

Revenue rose to USD1.74 billion from USD1.53 billion, below Zacks consensus of USD1.77 billion. Non-GAAP EPS of USD3.39 came in shy of the USD3.84 consensus.

Chief Executive Officer Sassine Ghazi said the IP business had underperformed in the quarter, and that the firm is "taking action to enhance our competitive advantage and drive resilient, long-term growth."

Ghazi contributed the poor performance to export restrictions that disrupted design starts in China, challenges at a major foundry customer, and "certain road map and resource decisions that did not yield their intended result".

Shares slumped 36%.

Buy-now, pay-later firm Klarna closed down at USD45.82 in its New York Stock Exchange debut on Wednesday, after opening at USD52.

Shares were 15% higher than the USD40 IPO, however, which valued the company at around USD15 billion. At the close, the company was valued at about USD17.3 billion.

Late Wednesday, the pound traded at USD1.3529, up slightly from USD1.3523 at the New York close on Tuesday. The euro eased to USD1.1696 from USD1.1707. Against the yen, the dollar was at JPY147.38, down from JPY147.45 on Tuesday.

The US 10-year Treasury was at 4.05% late Wednesday, down from 4.08% on Tuesday. The yield on the US 30-year Treasury was at 4.69%, narrowing from 4.73%.

Gold was quoted at USD3,639.93 an ounce late on Wednesday, up from USD3,632.25 on Tuesday.

Brent was quoted at USD67.60 a barrel on Wednesday, up from USD66.44 on Tuesday. West Texas Intermediate rose to USD63.18 from USD62.09.

In Europe, the FTSE 100 closed down 0.2% in London. The CAC 40 rose 0.2% in Paris. The DAX 40 in Frankfurt dropped 0.4% in Frankfurt.

In Asia, the Nikkei 225 in Tokyo climbed 0.9%. In China, the Shanghai Composite rose 0.1%, while the Hang Seng Index closed up 1.0% in Hong Kong. The S&P/ASX 200 closed up 0.3% in Sydney.

Thursday's corporate calendar sees third quarter results from Adobe.

The global economic diary has US consumer price inflation and initial jobless claims

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: Weak retailers hamper FTSE 100 as Primark dismays

2025-09-10T16:04:59Z

The FTSE 100 gave back early gains to close lower on Wednesday as weak retailers and increased geopolitical concerns limited progress.

The FTSE 100 index closed down 17.14 points, 0.2%, at 9,225.39. The FTSE 250 ended 62.61 points lower, 0.3%, at 21,534.10 and the AIM All-Share finished down 6.29 points, 0.8%, at 762.01.

The Cboe UK 100 ended down 0.2% at 925.10, the Cboe UK 250 closed 0.5% lower at 18,832.72 and the Cboe Small Companies finished down 0.4% at 17,050.31.

In Europe, the CAC 40 in Paris ended up 0.2%, while the DAX 40 in Frankfurt closed 0.4% lower.

Investors were unsettled by events in the Middle East following Israel's missile strike on Qatar. Also, Nato fighter jets shot down Russian drones over Polish airspace for the first time.

Poland's Foreign Minister Radoslaw Sikorski said on Wednesday that the overnight intrusion of several Russian drones into the NATO member's airspace was "not an accidental event".

"We have no doubt that this was not an accidental event...We are dealing with an unprecedented case of an attack not only on Poland's territory but also on the territory of NATO and the EU," Sikorski told reporters.

In London, airlines came under pressure over fears that flights will be disrupted. British Airways owner IAG fell 4.1% while low-cost airlines easyJet and Wizz Air dropped 2.2% and 1.8% respectively.

In New York, at the time of the London equities market close, the Dow Jones Industrial Average was down 0.6%, the S&P 500 rose 0.4%, as did the Nasdaq Composite.

Across the pond, Oracle leapt 42%.

After Tuesday's US market close, the Austin, Texas-based, cloud technologies-focused company astounded analysts as it reported a significant increase in bookings and gave an extremely bullish outlook for its cloud infrastructure business.

Chief Executive Safra Catz told investors that Oracle has made an "amazing start" to the financial year, signing significant cloud contracts with the "who's who of AI", including Meta, AMD and Nvidia.

Catz expects Oracle Cloud Infrastructure revenue to grow 77% to USD18 billion this financial year - and then increase to USD32 billion, USD73 billion, USD114 billion, and USD144 billion over the subsequent four years.

Jefferies analyst Brent Thill said the 2030 target of USD144 billion is USD53 billion above consensus and implies a 70% compound annual growth rate.

Ahead of Thursday's consumer inflation figures, data showed US producer prices rose 2.6% on-year in August, easing from a 3.1% advance for July, and below 3.3% FXStreet consensus.

On-month, prices fell 0.1% in August, after a 0.7% rise in July from June. It was the first monthly decline since April. The monthly figure undershot expectations of a 0.3% rise.

Excluding foods, energy, and trade, producer prices rose 2.8% on-year in August, picking up speed from 2.7% in July. On-month, they rose 0.3% in August, easing from 0.6% in July from June.

The pound edged up to USD1.3548 late on Wednesday afternoon in London, compared to USD1.3545 at the equities close on Tuesday. The euro nudged down to USD1.1722, against USD1.1724. Against the yen, the dollar was trading higher at JPY147.35 compared to JPY147.20.

The yield on the US 10-year Treasury was quoted at 4.06%, trimmed from 4.08% on Tuesday. The yield on the US 30-year Treasury was quoted at 4.71%, narrowed from 4.73%.

On the FTSE 100, retailers were a weak feature, not helped by softer-than-hoped sales at fast fashion business Primark, owned by Associated British Foods.

Shares in AB Foods tumbled 13% as analysts bemoaned "vague" guidance, soft sales at Primark and a less-than-sweet performance at its Sugar business.

AB Foods said sales growth at Primark, which generates around 47% of group revenue, is expected to be around 1% in the second half of the financial year to September 13 compared to the prior year, and below Visible Alpha consensus of 3.4%.

In addition, the firm said it expects the consumer environment to remain "uncertain."

AJ Bell analyst Russ Mould said the idea that value retailers will automatically thrive in a period where consumers are watching their pennies "no longer stacks up".

"Cheap prices do not mean goods will fly off the shelf, just as Primark has found out," he said.

Marks & Spencer fell 3.0%, and Next eased 1.8%. Kingfisher dropped 1.7%, as did JD Sports Fashion.

Anglo American gained a further 1.7% as its tie-up with Teck Resources continued to be well received while Haleon, up 1.1%, benefited from an upgrade by Goldman Sachs to 'buy'.

Elsewhere, Vistry fell 4.5% as it reported a drop in profit and revenue, although it did retain guidance.

The Kent, England-based housebuilder reported pretax profit of GBP40.9 million for the six months that ended June 30, down 55% from GBP91.2 million a year earlier. Revenue fell 5.1% to GBP1.64 billion from GBP1.72 billion.

Vistry noted lower levels of demand from its affordable housing partners, which it said reflected uncertainty ahead of the June spending review, coupled with transitional funding constraints as part of the move towards a new social & affordable housing programme.

Serica Energy slid 14% as it said further maintenance is required at the Triton Floating Production Storage & Offloading unit, resulting in a temporary reduction in production.

The North Sea-focused oil and gas producer suspended production at the FPSO back in January, following issues resulting from Storm Eowyn.

In August, Serica Energy said production had resumed with activity ramping up in line with its expectations.

In addition, Dana Petroleum, which operates the Triton FPSO, has told the company that subsea intervention work on the Bittern field has been scheduled for November.

The resultant production deferrals mean that Serica's production guidance for 2025 has been reduced to 29,000 to 32,000 barrels of oil equivalent per day from 33,000 to 35,000 boepd previously.

A barrel of Brent traded at USD67.31 on Wednesday afternoon, up from USD66.31 on Tuesday. Gold firmed to USD3,646.88 an ounce on against USD3,640.80 on Tuesday.

The biggest risers on the FTSE 100 were Prudential, up 33.40 pence at 1,027.00p, Polar Capital Technology Trust PLC, up 9.50p at 414.00p, BAE Systems, up 39.00p at 1,832.00p, HSBC, up 17.80p at 996.80p and Fresnillo, up 38.00p at 2,174.00p.

The biggest fallers on the FTSE 100 were Associated British Foods, down 295.50p at 1,945.50p, Relx, down 146.00p at 3,337.00p, IAG, down 16.20p at 381.70p, Auto Trader, down 25.20p at 788.20p and Marks & Spencer, down 10.60p at 342.10p.

Thursday's local corporate calendar has half-year results from soft drinks manufacturer Fevertree Drinks and a trading statement from online train ticket platform, Trainline.

The global economic calendar on Thursday has US inflation figures and weekly jobless claims data, plus the European Central Bank's interest rate decision and press conference.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

US wholesale inventories increase less than forecast in July

2025-09-10T14:39:21Z

Wholesale inventories grew less than initially predicted, figures from the US Census Bureau showed on Wednesday.

Total wholesale inventories were USD908.1 billion at the end of July, up 0.1% from June, but lower than an advance estimate of 0.2%, which was also FXStreet consensus. Total inventories were up 1.3% year-on-year.

Total wholesale sales were USD711.3 billion in July, up 1.4% from June, and 6.2% higher year-on-year. June's figure was revised upwards to 0.7% from the preliminary estimate of up 0.3%.

Both the inventories and sales figures exclude manufacturers' sales branches and offices, are adjusted for seasonal variations and trading day differences, but not for price changes.

The July inventories/sales ratio for merchant wholesalers was 1.28. The July 2024 ratio was 1.34.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

FOREX: Softer US producer price data cools dollar's progress

2025-09-10T13:05:58Z

The dollar went into US producer price data on the up on Wednesday, but surrendered some ground after the release, which was softer than expected.

US producer prices rose 2.6% on-year in August, easing from a 3.1% advance for July. A year-on-year rise of 3.3% was initially reported for July. Another rise of 3.3% was expected for August, according to consensus cited by FXStreet.

On-month, prices fell 0.1% in August, after a 0.7% rise in July from June. It was the first monthly decline since April. The monthly figure undershot expectations of a 0.3% rise.

Excluding foods, energy, and trade, producer prices rose 2.8% on-year in August, picking up speed from 2.7% in July. On-month, they rose 0.3% in August, easing from 0.6% in July from June.

Against the dollar, the euro traded at USD1.1709 on Wednesday afternoon UK time, down from USD1.1744 a day prior, but up from USD1.1696 before the US data was released.

Sterling stood USD1.3539, up from USD1.3532 before the US data, but down from USD1.3559 a day earlier.

The Dollar Index stood at 97.75 points, up from 97.52 this time on Tuesday, but down from 97.85 before the PPI reading.

Against the euro, sterling rose to EUR1.1559 on the eve of the next European Central Bank decision, up from EUR1.1541 a day earlier.

The European Central Bank is expected to leave rates unmoved again this week, putting the central bank's latest batch of forecasts in focus, with any nod to an inflation undershoot presenting a "dovish risk" to proceedings.

In July, the Frankfurt-based official lender left interest rates unchanged despite a "challenging" environment and uncertainty caused by trade disputes.

The decision, which was expected, left the rate on the deposit facility at 2.00%, on the main refinancing operations at 2.15%, and on the marginal lending facility at 2.40%.

What followed was a "wait-and-see holiday", a phrase ECB President Christine Lagarde coined at the end of the last meeting, typifying the central bank's approach to rate decisions.

Events in France are likely to be in focus. French President Emmanuel Macron on Tuesday named his defence minister and close ally Sebastien Lecornu as the new prime minister to resolve a deepening political crisis as protests loom in the coming days.

In choosing Lecornu, 39, to replace Francois Bayrou as the seventh premier of his mandate, Macron has plumped for one of his closest allies rather than seeking to broaden the appeal of the government across the political spectrum.

Macron has told Lecornu "to consult the political forces represented in parliament with a view to adopting a budget for the nation and making the agreements essential for the decisions of the coming months", the president's office announced.

Francois Bayrou on Tuesday submitted his resignation to President Macron after parliament ousted the government. Bayrou suffered a crushing loss in a confidence vote he had himself called, plunging France into fresh uncertainty.

Analysts at ING commented: "Expect EUR/USD to continue trading around the 1.1700 area - though we don't rule out a very temporary dip to the 1.1630/50 area later this week."

Versus the Swiss franc, the buck rose to CHF0.7978 from CHF0.7946 a day prior. Versus the yen, it advanced to JPY147.39 from JPY146.81.

Against its Canadian counterpart, the dollar rose to CAD1.3854 from CAD1.3805. Versus the Australian dollar, however, it declined to AUD1.5109 from AUD1.5124.

Rabobank analysts commented: "The outlook for the RBA and short-term interest rate differentials will remain a key driver of AUD/USD in the months ahead. Despite the strength in the recent Q2 GDP report, it is Rabobank’s central view that the RBA will cut rates by 25 bps in each of its November, February and May meetings, and that these three rate cuts will push the policy rate out of restrictive territory. We expect that the Fed will cut rates by a total of 125 bps by the end of next year.

"The market is currently only priced for around 43 bps of easing from the RBA over the next 6 month, although there are around 88 bps of Fed easing priced in on a 6-month view and 133 bps in 12 months. If the market is currently under-pricing RBA rate cuts or overpricing the risks of Fed moves, there is scope for the USD to recoup some ground vs the AUD."

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

US yearly producer price growth ebbs to 2.6% in August, below forecast

2025-09-10T12:43:47Z

US producer prices advanced at a markedly slower annual pace than expected, numbers from the Bureau of Labor Statistics showed Wednesday.

On-month, prices fell 0.1% in August, after a 0.7% rise in July from June. It was the first monthly decline since April. The monthly figure undershot expectations of a 0.3% rise.

Excluding foods, energy, and trade, producer prices rose 2.8% on-year in August, picking up speed from 2.7% in July. On-month, they rose 0.3% in August, easing from 0.6% in July from June.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

COMMODITIES: Gold hangs below fresh record; oil up after Israel strike

2025-09-10T11:44:38Z

Gold hovered just below the new record on Wednesday as investors assessed heated tensions in the Middle East.

Spot gold was quoted at USD3,656.19 an ounce on Wednesday afternoon in London, up from USD3,652.89 at the same time on Tuesday. But silver inched down to USD41.21 an ounce from USD41.28.

The yellow metal raced to USD3,673 an ounce on Tuesday, beating an all-time high record of USD3,659 hit earlier in the session. Bullion has broken a series of records since last week amid growing hopes of US interest rate cuts.

Markets now expect the US Federal Reserve to reduce its lending rates by 25 basis points on Wednesday next week, with a small probability of a 50-basis-point move, Sky Links Capital analyst Daniel Takieddine said.

"The string of disappointing labour market indicators has strengthened bets on multiple cuts through year-end, increasing the appeal of non-yielding assets," Takieddine said.

All eyes are on the US producer price inflation report, which is expected this afternoon, and the US consumer price inflation, which will be released on Thursday.

Geopolitical risks added fresh momentum to gold, Sky Links Capital's Takieddine said, adding: "Increased tensions in the Middle East are threatening ongoing ceasefire negotiations."

Israel launched a strike targeting Hamas' leadership in Qatar on Tuesday.

Poland said Wednesday it had scrambled aircraft alongside allies to shoot down "hostile objects" violating its airspace during a Russian attack on neighbouring Ukraine, AFP reports.

In other commodities, Brent crude oil was priced at USD67.03 a barrel on Wednesday, up from USD66.43 on Tuesday. West Texas Intermediate rose to USD63.31 a barrel, compared to USD62.70.

The oil market reacted to the Israeli strike, spiking briefly on escalation risks, but quickly retraced as markets judged the probability of escalation to be limited, Pepperstone analyst Ahmad Assiri said.

"This reflects oil's sensitivity to geopolitical shocks but also reinforces that underlying demand dynamics remain the dominant driver," Assiri said.

Traders are still adjusting to the Opec+'s decision at the weekend.

Eight key members of the energy alliance said Sunday they have decided to increase production by 137,000 barrels per day from next month.

The cartel raised output by around 550,000 per day in both August and September this year.

In other metals, platinum was priced at USD1,396.60 an ounce on Wednesday, down from USD1,398.85 on Tuesday. But palladium was quoted at USD1,170.11 an ounce, up from USD1,143.48.

In base metals, the copper price firmed to USD9,910.00 per tonne from USD9,895.00. Aluminium jumped to USD2,617.00 from USD2,612.00.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: Stocks shakes off geopolitical worries

2025-09-10T11:15:23Z

Stock prices in Europe were on the up on Wednesday afternoon, aided by an easing of French political uncertainty, Federal Reserve rate cut expectations and "blockbuster" US earnings overnight.

Geopolitical worries kept a lid on airline shares, but failed to deter the wider equity market.

The FTSE 100 index rose 36.02 points, 0.4%, at 9,278.55. The FTSE 250 was up 21.32 points, 0.1%, at 21,618.03, and the AIM All-Share was down 6.16 points, 0.8%, at 762.14.

The Cboe UK 100 was up 0.3% at 929.63, the Cboe UK 250 was down 0.3% at 18,879.45, and the Cboe Small Companies was 0.2% lower at 17,077.02.

In Paris, the CAC 40 was up 0.5%. In Frankfurt, the DAX 40 was 0.1% higher.

French President Emmanuel Macron on Tuesday named his defence minister and close ally Sebastien Lecornu as the new prime minister to resolve a deepening political crisis as protests loom in the coming days.

Rostro analyst Joshua Mahony commented: "Markets appear relieved at the prospect of stability after recent political turbulence, though challenges lie ahead as Lecornu must navigate a divided parliament to secure passage of the 2026 budget. The failure of his predecessor's austerity push signals that compromise will be needed, but for now, investors are focusing on the near-term boost to sentiment rather than the longer-term fiscal risks."

Also providing impetus, Mahony added, was a "blockbuster update" from New York-listed Oracle.

"While top-line numbers were mixed, investors were energised by a huge uplift in Oracle's cloud infrastructure outlook," the analyst said.

Oracle shares were 31% higher in pre-market dealings in New York on Wednesday.

Stocks in New York are set for a mixed open. The Dow Jones Industrial Average is called down 0.2%, but the S&P 500 and Nasdaq Composite up 0.2%.

XTB analyst Kathleen Brooks said the S&P 500 hit a record on Tuesday, shaking off geopolitical worries. The analyst also noted a "record downward revision in non farm payrolls" for the year to March. The Bureau of Labor Statistics said 911,000 fewer jobs were created than first reported.

"The market reaction was muted and rate cut bets were scaled back slightly after the data was released. The reason is that a Fed rate cut is now fully priced in by financial markets, and the market is already aware of weakness in the labour market. Although the 911k revision was more than some expected, it does not deviate from the narrative that the labour market remains weak, which solidifies the case for Fed easing," Brooks added.

The pound traded at USD1.3533 early Wednesday afternoon, up slightly from USD1.3531 at the time of the London equities on Tuesday. The euro fell to USD1.1698 from USD1.1724. Against the yen, the dollar bought JPY147.46, up from JPY147.20.

The yield on the US 10-year Treasury widened slightly to 4.09% from 4.08%. The yield on the 30-year stretched to 4.75% from 4.73%.

Gold rose to USD3,655.46 an ounce midday Wednesday, from USD3,640.80 late Tuesday. Gold hit a record high just shy of USD3,675 an ounce on Tuesday.

In the equity market, the fortunes of two ubiquitous names in retail diverged. Primark owner AB Foods slumped 10% in London, but Inditex, the operator of Zara, Bershka and Lefties. shot up 6.3% in Madrid.

AB Foods said sales growth at Primark is expected to be around 1% in the second half of the financial year to September 13 compared to the prior year, and below Visible Alpha consensus of 3.4%.

Inditex, in contrast, said autumn/winter collections have been "very well received by customers". Store and online sales in constant currency at the start of the second half of the year, from August 1 to September 8, were up 9% from a year ago, beating consensus of 7% growth.

AJ Bell analyst Russ Mould commented: "Zara-owner Inditex is also navigating a challenging path. Its products are more expensive, which means the goods must sparkle to convince cautious shoppers to part with their cash. The difference between Inditex and Primark is that the former is more upbeat about current trading, explaining why its shares jumped on its update.

"Both Inditex and Primark have US operations and they're having to contend with tariffs and unfavourable foreign exchange rates. Life is never easy as a retailer as there are so many things out of their control – be it the wrong type of weather, economic weakness or taxes. It currently feels like a perfect storm for the retail sector and management must be adept at spinning multiple plates."

Wickes, another retail name, added 1.3% in London.

The Watford, England-based home improvement retailer said pretax profit in the half-year to June 28 increased 5.7% to GBP24.2 million from GBP22.9 million. Adjusted pretax profit climbed 17% to GBP27.3 million from GBP23.4 million.

Revenue improved 5.6% to GBP847.9 million from GBP803.2 million.

Wickes remains "comfortable with market expectations for the full year". The firm puts consensus for annual adjusted pretax profit at GBP48.2 million, which would represent a rise from GBP43.6 million in financial 2024.

Gym Group shares bulked up 8.5%. It said it expects to deliver full year results at the top end of market expectations after a strong first half.

Pretax profit ballooned to GBP3.3 million in the six months to June 30 from GBP200,000 the year prior, or to GBP4.9 million from GBP500,000 on an adjusted basis.

Revenue rose 7.9% to GBP121.0 million from GBP112.1 million, with like-for-like growth of 3%.

The firm expects full-year adjusted earnings before interest, tax, depreciation and amortisation, less normalised rent, to be at the top end of analysts' forecast range of GBP50.6 million to GBP52.8 million, up from GBP47.7 million in 2024.

In the first half of 2025, adjusted Ebitda less normalised rent jumped 24% to GBP47.7 million from GBP38.5 million a year ago.

Travel sector shares were on the decline amid the geopolitical worries. British Airways owner IAG was down 3.0%, while budget carrier easyJet fell 1.5%. Wizz Air was down 2.2%.

A barrel of Brent eased slightly to USD66.86 midday Wednesday from USD66.91 at the time of the London equities close on Tuesday.

ING analysts commented: "Israel's targeting of the Hamas leadership in Doha saw a brief spike in energy prices. But unless Gulf countries retaliate, which is very unlikely, we don't see this having a lasting impact on energy markets. We've also had news this morning that Poland has shot down Russian drones in its airspace."

Getting a boost from the geopolitical worries, BAE Systems rise 2.2%.

Still to come on Wednesday is a US producer price index reading at 1330 BST. In focus on Thursday is a US consumer price index reading, and a European Central Bank decision.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

China chides "pressure" over Trump threat of Russia oil tariffs

2025-09-10T11:04:16Z

Beijing chided the use of "economic pressure" on Wednesday after US President Donald Trump suggested he would hike tariffs on buyers of Russian oil to stifle Moscow's funding for its war in Ukraine.

On Tuesday, in talks between US and EU officials, Trump suggested he was willing to broaden tariffs on Russian oil buyers such as China and India – if the EU takes similar moves, a US official told AFP.

Dialling in for discussions, Trump raised the possibility of tariffs between 50% and 100%, said the official, who was not authorised to discuss these details publicly.

"We firmly oppose the practice of constantly dragging China into the issue, and we firmly oppose the imposition of so‑called economic pressure on China," ministry spokesman Lin Jian told a regular press briefing on Wednesday.

"China is neither the creator of this crisis nor a party to it," he said.

Beijing and Moscow are key trading partners, and China has never denounced Russia's war, nor called for it to withdraw its troops.

Beijing insists it is a neutral party, regularly calling for an end to the fighting while also accusing Western countries of prolonging the conflict by arming Ukraine.

In talks ahead of China's massive military parade this month, Russian President Vladimir Putin told his Chinese counterpart Xi Jinping that their countries' ties were at an "unprecedented level".

source: AFP

EU chief von der Leyen says Trump deal averted "chaos" of trade war

2025-09-10T08:34:10Z

EU chief Ursula von der Leyen defended Wednesday a much-criticised tariffs deal with Washington, saying it stabilised ties at a time of soaring global tensions and averted trade war "chaos".

"Tariffs are taxes. But the deal provides crucial stability in our relations with the US at a time of grave global insecurity," von der Leyen told the European Parliament in Strasbourg.

"Think of the repercussions of a full-fledged trade war with the US. Picture the chaos."

source: AFP

LONDON MARKET OPEN: Stocks extend gains despite geopolitical concern

2025-09-10T08:02:53Z

Stock prices in Europe opened higher on Wednesday, shaking off geopolitical worries, with the prospect of Federal Reserve rate cuts, and strong US tech earnings overnight, lifting investor morale.

The FTSE 100 index rose 23.65 points, 0.3%, at 9,266.18. The FTSE 100 has risen every day this week. The FTSE 250 was up 48.83 points, 0.2%, at 21,645.54, and the AIM All-Share was down 3.01 points, 0.4%, at 765.29.

The Cboe UK 100 was up 0.2% at 928.73, the Cboe UK 250 was up 0.1% at 18,940.84, but the Cboe Small Companies was 0.2% lower at 17,070.88.

In Paris, the CAC 40 was up 0.7%. In Frankfurt, the DAX 40 was 0.5% higher. Much like the FTSE 100, the CAC 40 has closed higher every day this week so far. The DAX 40 declined on Tuesday.

The White House distanced itself Tuesday from Israel's strikes against Hamas in Doha, reiterating President Donald Trump's support for ally Qatar, while declining to confirm if Israel had pre-notified Washington of its attack.

While eliminating Hamas was a "worthy goal," a strike in the Qatari capital Doha "does not advance Israel or America's goals," White House Press Secretary Karoline Leavitt told reporters, reading from a statement.

"The president views Qatar as a strong ally and friend of the US, and feels very badly about the location of this attack," she said.

Poland said Wednesday that "hostile objects" had been downed by Polish or allied aircraft scrambled in response to multiple violations of its airspace during a Russian attack on Ukraine.

"Aircraft have used weapons against hostile objects," Defence Minister Wladyslaw Kosiniak-Kamysz said on social media, adding: "We are in constant contact with Nato command."

Russian drones and missiles have entered the airspace of Nato members including Poland several times during Russia's three-and-a-half-year war, but a Nato country has never attempted to shoot them down.

"Away from geopolitics, risk assets remain in rude health. Helping US equities have been some stellar results from Oracle, where its data centre business is performing well and supporting the hype in AI investment. And the prospect of the Fed cutting rates by 125-150bp over the next nine months can only support leverage and demand that asset managers remain fully invested to earn their fees. This is a benign, bearish environment for the dollar," analysts at ING commented.

Nonetheless, the dollar was resilient early Wednesday, with only sterling progressing against it. The pound traded at USD1.3536 early Wednesday, up slightly from USD1.3531 at the time of the London equities on Tuesday. The euro fell to USD1.1699 from USD1.1724. Against the yen, the dollar bought JPY147.46, up from JPY147.20.

Shares in Oracle leapt as it predicted buoyant cloud infrastructure sales, reflecting strong demand, after what it called an "astonishing" quarter.

Shares shot up 28% in after hours trading.

The Austin, Texas-based, cloud technologies-focused company said net income was flat USD2.93 billion in the three months to August 31 with diluted earnings per share up edging down to USD1.01 from USD1.03.

Revenue increased 12% to USD14.93 billion from USD13.31 billion a year prior, shy of USD15.03 billion consensus.

Total remaining performance obligations were up 359% year-over-year to USD455 billion, Cloud revenue rose 28% to USD7.2 billion but software revenue was down 1% at USD5.7 billion.

"We signed four multi-billion-dollar contracts with three different customers in Q1," said Oracle Chief Executive Safra Catz.

"It was an astonishing quarter - and demand for Oracle Cloud Infrastructure continues to build. Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars," Catz added.

In the US on Tuesday, the Dow Jones Industrial Average added 0.4%, the S&P 500 rose 0.3% and the Nasdaq Composite climbed 0.4%.

The yield on the US 10-year Treasury widened slightly to 4.09% from 4.08%. The yield on the 30-year stretched marginally to 4.74% from 4.73%.

Aiding Fed cut hopes, the US Bureau of Labor Statistics on Tuesday said it had overestimated total nonfarm employment by 911,000 jobs, or 0.6%, in the 12 months through March 2025, according to its preliminary benchmark revision.

Analysts at Lloyds Bank commented: "While further revisions could still reshape this profile (and this is all backward looking), considering the events that have roiled the economy since March it is hard to have confidence that could mean a positive evolution. Really, this update should just reinforce concerns that the Fed are late in addressing labour market risks and gives the economy an even more stagflationary hue."

The global economic calendar on Wednesday has US producer price inflation figures at 1330 BST.

Consumer prices in China fell last month at their fastest rate in six months, official data showed Wednesday, a sign of persistent deflationary pressure in the world's second-largest economy.

Beijing has in recent years been battling sluggish domestic spending, dragged down by a prolonged slump in the country's vast property market as pressure on exports mounts.

The consumer price index – a key measure of inflation – dropped 0.4% year-on-year in August, compared to a flat reading in July, according to data released by China's National Bureau of Statistics.

The reading was lower than the 0.2% fall Bloomberg forecast based on a survey of economists.

It also marked the steepest decline since February's drop of 0.7%.

In Tokyo on Wednesday, the Nikkei 225 rose 0.9%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng Index in Hong Kong was 1.1% higher. In Sydney, the S&P/ASX 200 added 0.3%.

Gold rose to USD3,645.06 an ounce early Wednesday from USD3,640.80 late Tuesday. A barrel of Brent eased slightly to USD66.81 from USD66.91.

In London, shares in AB Foods slumped 9.4%, the worst FTSE 100 performer. It said it expects the consumer environment to remain "uncertain", as it reported sluggish sales at Primark, and further struggles at its Sugar business.

Primark sales growth is expected to be around 1% in the second half of the financial year to September 13 compared to the year prior, below Visible Alpha consensus of 3.4%, with growth of 1% in the third quarter and projected growth of 1% in the fourth quarter.

Primark like-for-like sales in the second half are expected to be around 2% below last year, versus VA consensus for a drop of 1%, with a decline of 2.4% in the third quarter and a projected decline of around 2% in the fourth quarter.

Haleon shares rose 2.8%, as Goldman Sachs raised the consumer healthcare firm to 'buy'.

Elsewhere, Gym Group surged 9.5%. It said its half-year profit jumped as a "growth plan continues to deliver progress". The low-cost gym operator said pretax profit in the half-year to June 30 surged to GBP3.3 million from GBP200,000 a year earlier, while revenue increased 7.9% to GBP121.0 million from GBP112.1 million. Adjusted earnings before interest, tax, depreciation, and amortisation, less normalised rent, climbed 24% to GBP27.4 million from GBP22.1 million.

"This strong set of half year results reflects continued progress against the strategic objectives set out in our next chapter growth plan 18 months ago. Our high value, low cost proposition continues to resonate, with members visiting the gym more often than ever," Chief Executive Officer Will Orr said.

"Encouragingly, the sites opened this year, which reflect new design features, are performing ahead of expectations, and we are on track to deliver our target of opening 14-16 new gyms this year, all funded from free cash flow, taking us beyond 250 sites. In a growing sector, we have once again increased membership, revenue and profit and are well set to deliver full year results at the top end of market expectations."

Gym Group said consensus expects an adjusted Ebitda, less normalised rent, between GBP50.6 million and GBP52.8 million.

It added that "trading momentum continued in July and August", cementing its confidence that it can deliver around 3% like-for-like revenue growth for the full year.

Total member numbers at the half-year end rose to 949,000, up 7% from the end of December.

Serica Energy shares plunged 11%. The North Sea-focused oil and gas producer lowered its annual outlook as "vibration issues" mean production at the Triton asset is currently at a "significantly reduced rate".

Serica now expects output for 2025 between 29,000 to 32,000 barrels of oil equivalent per day. Its output forecast was previously a 33,000 to 35,000 range.

"Following a successful ramp up which helped wider portfolio production reach over 55,000 boepd in mid-August, the operator of the Triton FPSO, Dana Petroleum, has notified Serica of a temporary reduction in production while further maintenance takes place. In addition, Dana has also notified the company that subsea intervention work on the Bittern field has been scheduled for November 2025," Serica explains.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

AB Foods shares slump on softer than hoped Primark sales, Sugar woes

2025-09-10T07:51:47Z

Associated British Foods PLC on Wednesday said it expects the consumer environment to remain "uncertain", as it reported sluggish sales at Primark, and further struggles at its Sugar business.

In response, shares in the London-based company, which owns the fast fashion retailer Primark plus a range of food manufacturing businesses, fell 9.6% to 2,027.00 pence each in London on Wednesday morning. It was the worst performing stock on the FTSE 100 which was up 0.2%.

For the full year in 2025, AB Foods expects Primark's sales growth to be around 1%, with its store rollout programme continuing to drive sales growth of around 4%.

AB Foods said trading at Primark in the UK and Ireland improved sequentially on the first half of the financial year, but it saw a more subdued consumer environment in Europe and trading was weaker, while performance in the US was strong.

"Looking ahead, we currently expect the consumer environment to remain uncertain," the firm added.

AB Foods continues to expect retail adjusted operating profit margin for the full year to be broadly in line with 11.7% in the last financial year. But, as expected, adjusted operating margin in the second half will be below the first, mainly due to the phasing of one-off items.

AB Foods continues to expect the full year adjusted operating loss for the Sugar business, including its Vivergo bioethanol plant, to be close to GBP40 million.

The company notes the UK government has decided not to provide the solution required for Vivergo to operate on a consistently profitable basis and therefore announced its closure.

AB Foods said the operating loss of this business will now be within 'disposed and closed' operations, not in the Sugar segment.

The adjusted operating profit of the Sugar segment is therefore expected to be close to breakeven, and sales are expected to decline by around 10%, worse than the 6% drop forecast by consensus.

As expected, sales and profitability in the Sugar businesses in the UK and Spain declined significantly in the second half as a result of persistent low European sugar prices and a high cost of beet.

In Spain, restructuring actions to reduce beet manufacturing footprint are underway.

AB Foods expects the closure of Vivergo and the actions taken in Spain to result in restructuring costs and impairment charges of around GBP200 million, of which around GBP50 million are cash costs which will be incurred in the current financial year and into next year.

Grocery sales in the second half are expected to be in line with the prior year, reflecting "good growth in our international brands, offset by lower sales in Allied Bakeries and US oils, as expected."

But AB Foods expects grocery adjusted operating profit in the second half to be slightly below previous expectations, mostly due to one-off restructuring costs. The firm is combining its Allied Bakeries business with Hovis Group Ltd.

There was better news in the Ingredients division where sales are expected to be broadly in line with last year with adjusted operating profit slightly ahead of previous expectations.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Vistry backs outlook as profit falls amid affordability challenges

2025-09-10T07:48:44Z

Vistry Group PLC on Wednesday left its annual outlook unchanged as it reported a decline in half-year profit and revenue.

The company noted positive momentum in the first quarter, but tied a softening of market conditions in the second quarter to increased macroeconomic concerns and ongoing affordability challenges. Vistry said this was particularly with first time buyers, with expected interest rate cuts being pushed further out.

The company said it delivered 6,889 completions during the first half of the year, down 12% from 7,792 a year earlier. Of these, Vistry said Partner Funded units represented 73% of total completions, compared to 76% a year earlier, with Open Market at 27%, up from 24%.

Partner Funded unites fell 14% to 5,055 from 5,884. Open Market units fell 3.9% to 1,834 from 1,908, "reflecting a reduction in average sales outlets" to 186 from 210.

Vistry also reported "good progress" in debt reduction, as net debt fell 9.0% to GBP293.1 million from GBP332.0 million.

Shares in Vistry were 5.6% lower at 570.20 pence on Wednesday morning in London.

Looking ahead, Vistry said its total order book totals GBP4.3 billion, down from GBP5.1 billion at September 4 last year, with the company 88% forward sold for the full-year.

Vistry backed its annual guidance, with it continuing to expect a year-on-year increase in profit for 2025.

"The group's first half performance was in line with expectations and we are well positioned to deliver for the full year. Working with our partners, we have a strong pipeline of development opportunities which will drive our second half performance, with an expected significant step-up in completions and profits," said Chief Executive Greg Fitzgerald.

By Christopher Ward, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Wickes maintains interim dividend as profit improves; outlook positive

2025-09-10T07:48:43Z

Wickes Group PLC on Wednesday said trading in its third quarter has been in line with expectations so far, and it hailed a "strong first half".

The Watford, England-based home improvement retailer said pretax profit in the half-year to June 28 increased 5.7% to GBP24.2 million from GBP22.9 million.

Revenue improved 5.6% to GBP847.9 million from GBP803.2 million. Adjusted pretax profit climbed 17% to GBP27.3 million from GBP23.4 million.

The company maintained its interim dividend at 3.6 pence per share.

"Wickes has delivered a strong first half, with volume growth across the group. I would like to thank all of my colleagues for their continued hard work and dedication, providing outstanding customer service and helping the nation feel house proud," Chief Executive Officer David Wood said.

"In Retail, we have achieved record market share growth and have prioritised convenience, choice and speed, helping grow TradePro sales by a further 10%. With DIY, our focus on broadening appeal and innovating in strategic categories has seen more customers choose Wickes to bring their home improvement projects to life. In Design & Installation, the actions we undertook to enhance the customer experience have seen us return to like-for like sales growth, ahead of the wider market for big ticket items."

Wickes remains "comfortable with market expectations for the full year", the CEO added.

The firm puts consensus for annual adjusted pretax profit at GBP48.2 million, which would represent a rise from GBP43.6 million in financial 2024.

Wickes said: "Trading in Q3 so far has been in line with expectations. The phasing of increased people costs and new stores will impact more fully in H2."

The company will release a third quarter trading update in late October.

CEO Wood said: "Our proven strategy is working. Whilst we remain mindful of the cost headwinds facing the sector as a whole, continued investment in our growth levers and digital initiatives means we are well positioned for the future and remain comfortable with market expectations for the full year."

Wickes shares rose 0.9% to 196.90 pence each on Wednesday morning in London.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Novo Nordisk plans 9,000 job cuts in overhaul to manage competition

2025-09-10T07:24:31Z

Novo Nordisk AS on Wednesday said it will reduce its workforce as part of a "company-wide transformation" to focus on its diabetes and weight-loss offering.

The Copenhagen-based pharmaceutical firm and maker of Ozempic and Wegovy expects to dismiss 9,000 of its 78,400 employees, including 5,000 redundancies in Denmark.

Novo estimated that the move will generate around DKK8 billion, or USD1.25 billion, in annualised savings by the end of 2026, against DKK8 billion in net one-off restructuring costs. Novo expects around DKK9 billion in costs in the third quarter of 2025, offset by savings of DKK1 billion in the fourth quarter.

In 2025, the overhaul is anticipated to reduce growth in full-year adjusted operating profit at a constant exchange rate by 6 percentage points compared to guidance issued in August. The firm has lowered the growth outlook for earnings before interest and tax to a range of 4% to 10%, down from 10% to 16% previously, which was already revised down from a prior range of 16% to 24%. Novo now expects full-year depreciation, amortisation and impairment losses of DKK21 billion, up from the previous DKK17 billion.

The plan is effective immediately, with Novo noting it will "communicate with affected employees over the next few months, pending negotiations as per local legal labour market requirements."

The overhaul is meant to quicken decision-making and allow the firm to "reallocate resources" towards Wegovy, a diabetes management drug which has gained popularity as a weight-loss method.

"The transformation reflects the company’s commitment to meet rising global demand while also competing in a more dynamic and consumer-driven obesity market, as evidenced by the recent slowdown in growth," Novo said on Wednesday.

The company went on to say the overhaul would addressed "increased organisational complexity and costs" which had resulted from upscaling in the past few years.

Chief Executive Mike Doustdar added that Novo will need to adopt a more "performance-based culture" to adapt to a "more competitive and consumer-driven" weight-loss drug market.

In the six months that ended June 30, Novo's operating profit was up 29% at CER. Net profit rose 22% to DKK55.54 billion, around USD8.64 billion, from DKK45.46 billion a year prior.

Still, US firm Eli Lilly & Co, maker of orforglipron, another drug targeting diabetes and weight-loss, posted a 91% jump in net income in the second quarter of 2025 to USD5.66 billion from USD2.97 billion a year earlier.

Novo Nordisk shares rose 2.6% to DKK347.35 each on Wednesday morning in Copenhagen, while Eli Lilly was down 0.4% at USD748.01 per share in pre-market trading in New York.

By Holly Munks, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON BRIEFING: AB Foods says mixed Primark trade; Vistry backs guide

2025-09-10T06:51:15Z

AB Foods reports its Primark unit has grappled with "consumer caution", housebuilder Vistry maintains its profit growth forecast for the full-year and Gym Group expects an annual outturn at the "top end of market expectations".

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

----------

MARKETS

----------

FTSE 100: called up 0.2% at 9,258.13

GBP: flat at USD1.3530 (USD1.3531 at previous London equities close)

----------

BROKER RATINGS

----------

Berenberg raises Anglo American to 'hold' (sell) - price target 2,300 (1,900) pence

----------

COMPANIES - FTSE 100

----------

Associated British Foods says it has performed well in the second half of its financial year, amid "consumer caution, geopolitical uncertainty and inflation". The firm's Primark retail arm sees "improved trading in the UK and strong sales growth in the US" though it notes a weaker consumer environment in Europe. It still expects a retail arm adjusted operating profit margin for the full year to be broadly in line with last year. In the Food businesses, second half trading is in line with expectations. The firm's financial year concludes on Saturday. For the second half, it expects to report 1% sales growth at Primark, though like-for-like sales in the period are to be down 2% on-year. "For the full year in 2025, we expect Primark's sales growth to be around 1%, with our store rollout programme continuing to drive sales growth of around 4%," AB Foods adds. Second half Grocery sales are to be in line with the prior year, but adjusted operating profit is to be "slightly below our previous expectations". AB Foods says this is due to one-off restructuring costs. Second half adjusted operating profit in Ingredients is to be "slightly ahead of our previous expectations", meanwhile. "Ingredients sales are expected to be broadly in line with last year. Our yeast and bakery ingredients business, AB Mauri, continued to have good underlying growth in most markets and benefited from consolidating the speciality yeast and technology business we acquired last year," it adds. At Sugar, it still expects an adjusted operating loss for the full year. "As expected in H2, sales and profitability in our Sugar businesses in the UK and Spain declined significantly as a result of persistent low European sugar prices and a high cost of beet," AB Foods says. Agriculture sales are expected to have increased around 1% in the second half. AB Foods reports annual results on November 4.

----------

COMPANIES - FTSE 250

----------

Housebuilder Vistry says it has left its annual outlook unchanged as it reported a decline in half-year profit. Pretax profit in the first half of 2025 decreases 55% to GBP40.9 million from GBP91.2 million. Revenue falls 6.5% to GBP1.85 billion from GBP1.97 billion. "The group's first half performance was in line with expectations and we are well positioned to deliver for the full year. Working with our partners, we have a strong pipeline of development opportunities which will drive our second half performance, with an expected significant step-up in completions and profits," Chief Executive Greg Fitzgerald says. "The new social affordable homes programme provides an unprecedented level of funding for affordable housing over the next 10 years. Through our Partnership model and commitment to mixed tenure development, Vistry is uniquely placed to maximise this opportunity and play a key role in delivering high-quality affordable homes across the country." Total completions in the half-year fall 12% to 6,889 units, Vistry says. Looking ahead, the firm says: "Guidance for the full year remains unchanged with the group expecting to deliver a year-on-year increase in profits in FY 25."

----------

Wickes says trading in its third quarter has been in line with expectations so far, and it hailed a "strong first half". Pretax profit in the half-year to June 28 increases 5.7% to GBP24.2 million from GBP22.9 million. Revenue improves 5.6% to GBP847.9 million from GBP803.2 million. Adjusted pretax profit improves 17% to GBP27.3 million from GBP23.4 million. "Wickes has delivered a strong first half, with volume growth across the group. I would like to thank all of my colleagues for their continued hard work and dedication, providing outstanding customer service and helping the nation feel house proud," CEO David Wood says. "In Retail, we have achieved record market share growth and have prioritised convenience, choice and speed, helping grow TradePro sales by a further 10%. With DIY, our focus on broadening appeal and innovating in strategic categories has seen more customers choose Wickes to bring their home improvement projects to life. In Design & Installation, the actions we undertook to enhance the customer experience have seen us return to like-for like sales growth, ahead of the wider market for big ticket items." Wickes remains "comfortable with market expectations for the full year", the CEO adds. It puts consensus for annual adjusted pretax profit at GBP48.2 million, which would represent a rise from GBP43.6 million in financial 2024. Wickes adds: "Trading in Q3 so far has been in line with expectations. The phasing of increased people costs and new stores will impact more fully in H2."

----------

OTHER COMPANIES

----------

Gym Group says its half-year profit jumped as a "growth plan continues to deliver progress". The low-cost gym operator says pretax profit in the half-year to June 30 surges to GBP3.3 million from GBP200,000 a year earlier, while revenue increases 7.9% to GBP121.0 million from GBP112.1 million. Adjusted earnings before interest, tax, depreciation, and amortisation, less normalised rent, climbs 24% to GBP27.4 million from GBP22.1 million. The number of members as at June 30 rose on-year to 949,000 from 905,000. "This strong set of half year results reflects continued progress against the strategic objectives set out in our next chapter growth plan 18 months ago. Our high value, low cost proposition continues to resonate, with members visiting the gym more often than ever," CEO Will Orr says. "Encouragingly, the sites opened this year, which reflect new design features, are performing ahead of expectations, and we are on track to deliver our target of opening 14-16 new gyms this year, all funded from free cash flow, taking us beyond 250 sites. In a growing sector, we have once again increased membership, revenue and profit and are well set to deliver full year results at the top end of market expectations." Gym Group says consensus expects an adjusted Ebitda, excluding normalised rent, between GBP50.6 million and GBP52.8 million. It adds that "trading momentum continued in July and August", cementing its confidence that it can deliver around 3% like-for-like revenue growth for the full year.

----------

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Zara-owner Inditex reports steady first half profit as sales tick up

2025-09-10T06:30:04Z

Industria de Diseno Textil SA on Wednesday reported flat profit for the first half of the year as sales increased and picked up further at the start of the second half.

The Galicia, Spain-based owner of various clothing brands including Zara, Massimo Dutti, Pull&Bear and Bershka, said net income increased 0.5% to EUR2.79 billion in the six months to the end of July, from EUR3.78 billion a year ago.

Pretax income was flat at EUR3.60 billion.

Net sales climbed 1.6% to EUR18.36 billion from EUR18.07 billion while cost of sales ticked up 1.7% to EUR7.65 billion from EUR7.52 billion.

"We have again achieved a solid performance in this first half of 2025, with satisfactory sales in a complex market environment and maintaining strong levels of profitability. The efficient execution accomplished by our teams demonstrates the strength of Inditex's business model," said Chief Executive Officer Oscar Garcia Maceiras.

Inditex said the spring/summer collections were "well received by customers", as sales increased 5.1% in constant currency.

It said expense lines "have shown a favourable evolution" as operating expenses grew 2.1% to EUR5.58 billion from EUR5.47 billion.

The firm said the autumn/winter collections have been "very well received by customers". Store and online sales in constant currency at the start of the second half of the year, from August 1 to September 8, were up 9% from a year ago.

It expects growth of annual gross space between 2025 and 2026 of around 5%, with positive net space accompanied by "strong online sales".

The firm said it sees a 4% currency impact on sales in 2025, with a stable gross margin.

It estimates ordinary capital expenditure for the year of around EUR1.8 billion. The logistics expansion plan is on track, Inditex added. It allocated EUR900 million per year to increase logistics capacity in each of the 2024 and 2025 financial years.

"The objective of this logistics plan is to strengthen Inditex's capabilities to capture global growth opportunities in the medium and long term," the company said.

Shares in Inditex closed down 0.5% at EUR42.65 in Madrid on Tuesday.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 to rise; Oracle surges in New York

2025-09-10T05:55:46Z

Stocks in London are set to open higher on Wednesday, shaking off tepid Chinese and geopolitical worries.

IG says futures indicate the FTSE 100 to open 14.9 points higher, 0.2%, at 9,257.43 on Wednesday. The index of London large-caps closed up 21.09 points, 0.2%, at 9,242.53 on Tuesday.

In the US on Tuesday, the Dow Jones Industrial Average added 0.4%, the S&P 500 rose 0.3% and the Nasdaq Composite climbed 0.4%.

Consumer prices in China fell last month at their fastest rate in six months, official data showed Wednesday, a sign of persistent deflationary pressure in the world's second-largest economy.

Beijing has in recent years been battling sluggish domestic spending, dragged down by a prolonged slump in the country's vast property market as pressure on exports mounts.

The reading was lower than the 0.2% fall Bloomberg forecast based on a survey of economists.

It also marked the steepest decline since February's drop of 0.7%.

Nonetheless, equities in Asia rose.

In Tokyo on Wednesday, the Nikkei 225 rose 0.7%. In China, the Shanghai Composite was up 0.2%, while the Hang Seng Index in Hong Kong was 1.2% higher. In Sydney, the S&P/ASX 200 added 0.3%.

"Asia stocks continue to dance to the same tune Wall Street's been humming, letting the Fed's dovish backbeat set the tempo as tech names keep strumming the lead. Oracle's thunderclap in US after-hours — record bookings, cloud euphoria — set the riff that carried across the Pacific," SPI Asset Management analyst Stephen Innes commented.

Shares in Oracle leapt as it predicted buoyant cloud infrastructure sales, reflecting strong demand, after what it called an "astonishing" quarter.

Shares shot up 28% in after hours trading.

Revenue increased 12% to USD14.93 billion from USD13.31 billion a year prior, shy of USD15.03 billion consensus.

Total remaining performance obligations were up 359% year-over-year to USD455 billion, Cloud revenues rose 28% to USD7.2 billion but software revenue was down 1% at USD5.7 billion.

Innes added: "The Fed put remains the chorus. Cooling labour prints, messy and endlessly revised, are being heard as softer notes that justify three cuts before year-end."

The US Bureau of Labor Statistics on Tuesday said it had overestimated total nonfarm employment by 911,000 jobs, or 0.6%, in the 12 months through March 2025, according to its preliminary benchmark revision.

The pound traded at USD1.3536 early Wednesday, up slightly from USD1.3531 at the time of the London equities on Tuesday. The euro faded to USD1.1708 from USD1.1724. Against the yen, the dollar bought JPY147.40, up from JPY147.20.

The yield on the US 10-year Treasury widened slightly to 4.09% from 4.08%. The yield on the 30-year stayed at 4.73%.

Geopolitics remained in focus. The White House distanced itself Tuesday from Israel's strikes against Hamas in Doha, reiterating President Donald Trump's support for ally Qatar, while declining to confirm if Israel had pre-notified Washington of its attack.

"The president views Qatar as a strong ally and friend of the US, and feels very badly about the location of this attack," she said.

Poland said Wednesday that "hostile objects" had been downed by Polish or allied aircraft scrambled in response to multiple violations of its airspace during a Russian attack on Ukraine.

"Aircraft have used weapons against hostile objects," Defence Minister Wladyslaw Kosiniak-Kamysz said on social media, adding: "We are in constant contact with Nato command."

Gold rose to USD3,642.10 an ounce early Wednesday from USD3,640.80 late Tuesday. A barrel of Brent rose to USD67.03 from USD66.91.

Wednesday's local corporate calendar has a trading statement from Primark owner Associated British Foods, and half year results from housebuilder Vistry.

The global economic calendar on Wednesday has US producer price inflation figures at 1330 BST.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

EU chief Ursula von der Leyen to defend Trump trade deal in parliament

2025-09-10T05:36:30Z

EU chief Ursula von der Leyen will seek to defend her trade deal with Donald Trump in an address to the bloc's lawmakers Wednesday – with many seething over an outcome they see as a surrender to Washington.

Entering year two of her second mandate, von der Leyen's "State of the Union" speech will aim to rally parliament behind her agenda on the bloc's twin priorities of defence and competitiveness.

But she can expect a cool welcome from an assembly that found little to celebrate in the accord with Trump – despite a broad admission that Europe's security dependence on America left its hands tied for the tariffs fight.

"Everyone agrees it's a bad deal that reflects Europe's weakness," said Valerie Hayer, leader of parliament's centrist bloc Renew.

The July accord locks in a 15% tariff on most EU exports to the US, with exemptions for some areas – including aircraft – but not for key others, such as wine and spirits.

In exchange, Europe said it would make massive purchases of US energy, scrap tariffs on US industrial goods, and grant preferential access for a range of seafood and farm goods.

"Von der Leyen will try to sell her deal to lawmakers, to get us to swallow the bitter pill," predicted Marina Mesure, an EU lawmaker with The Left group who called the deal "a surrender to a predatory US."

More than half of Europeans – 52% – view the deal as a "humiliation", according to a five-nation poll conducted by Cluster17, for European affairs publication Le Grand Continent.

"It's a difficult time," conceded an official inside von der Leyen's European Commission, granted anonymity to discuss sensitive matters. "Europe appears weak."

"But on Trump, what matters at the end of the day is not so much the deal – it's what comes after," the official added. "If he does not uphold the deal, we will have to be very tough."

With the ink barely dry on the accord, Trump has fired off a new volley of threats targeting the EU's tech regulations – and most lately the massive antitrust fine against Alphabet Inc's Google last week.

For von der Leyen, selling the deal in parliament is about more than just public relations: in the coming weeks lawmakers will vote on a text lowering EU tariffs, key to rolling out the full agreement with Washington.

So far, von der Leyen's main allies are split: the centrists won't yet commit to backing the text, while the socialist bloc threatens to vote against.

"To argue that having a bad deal is better than no deal is just totally unacceptable," Iratxe Garcia Perez, leader of the Socialists & Democrats, said Tuesday.

Renew's Hayer concedes, however, that von der Leyen had a mandate to negotiate for EU states – including powerhouses France and Germany – and that many businesses wanted the predictability of a deal, even a lopsided one.

Von der Leyen's own party, the European People's Party, EPP, will back the accord – without sugar-coating it.

"Obviously, 15% export tariffs to the US doesn't make us happy," said EPP head Manfred Weber.

But with an American president "who loves tariffs", he said, "that is the best that we can get – and what we need for our economy and our stability".

The hard-right ECR group – which includes the party of Italian leader Giorgia Meloni – strikes a similar tone.

Trade aside, the EU chief is expected to vaunt the bloc's mobilisation in support of Ukraine's war effort – with France and Germany among countries pledging to join a "reassurance force" to deploy there after any peace deal with Russia.

She may also preview the 19th package of EU sanctions being drawn up against Russia – and its oil revenue in particular – an area where cooperation with Washington has rekindled in the wake of July's trade accord.

But the EU chief can expect a fraught reception over the bloc's failure to weigh in on the Gaza conflict, due to longstanding divisions between countries backing Israel and those more sympathetic to the Palestinians.

Those divisions have been on show inside von der Leyen's top team as well – with Spanish commissioner Teresa Ribera calling the Gaza war a "genocide" and slamming the bloc's inaction.

By Adrien De Calan

source: AFP

Poland says "hostile objects" downed in its airspace

2025-09-10T05:33:26Z

Poland said Wednesday it had scrambled aircraft alongside allies to shoot down "hostile objects" violating its airspace during a Russian attack on neighbouring Ukraine, a first for a NATO country during the war.

"Aircraft have used weapons against hostile objects," Defence Minister Wladyslaw Kosiniak-Kamysz said on social media, adding: "We are in constant contact with NATO command."

The incursion came as Russia unleashed a barrage of strikes across Ukraine, including in the western city of Lviv, around 50 miles, 80 kilometres, from the Polish border.

Russian drones and missiles have entered the airspace of NATO members – including Poland – several times during Russia's three-and-a-half-year war, but a NATO country has never attempted to shoot them down.

A cornerstone of the Western military alliance is the principle that an attack on any member is deemed an attack on all.

The operational command of Poland's military slammed the "unprecedented" airspace violations, saying it had spotted around a dozen drone-type objects and downed some of them.

"This is an act of aggression that has created a real threat to the safety of our citizens," it said.

Prime Minister Donald Tusk confirmed that weapons had been used against the invading objects, saying on social media that an "operation related to multiple violations of Polish airspace is underway".

The Polish government announced it will hold an "extraordinary" cabinet meeting at 0800 CEST, 0600 GMT.

The operation came as authorities closed the airspace over part of the country, according to a statement from Warsaw's main Chopin Airport, where flights were halted.

It comes a day after Poland's newly elected nationalist President Karol Nawrocki warned that Russian leader Vladimir Putin was ready to invade more countries after launching his war in Ukraine.

"We do not trust Vladimir Putin's good intentions," Nawrocki told reporters Tuesday at a press conference in Helsinki.

"We believe that Vladimir Putin is ready to also invade other countries."

NATO-member Poland, a major supporter of Ukraine, hosts over a million Ukrainian refugees and is a key transit point for Western humanitarian and military aid to the war-torn country.

Last month, Warsaw said a Russian military drone flew into its airspace and exploded in farmland in eastern Poland, calling the incident a "provocation".

Poland in 2023 said a Russian missile had crossed into its airspace to strike Ukraine.

And in November 2022, two civilians were killed when a Ukrainian anti-aircraft missile fell on a village near the border.

source: AFP

China consumer prices fell in August at fastest rate since February

2025-09-10T02:30:15Z

Consumer prices in China fell last month at their fastest rate in six months, official data showed Wednesday, a sign of persistent deflationary pressure in the world's second-largest economy.

Beijing has in recent years been battling sluggish domestic spending, dragged down by a prolonged slump in the country's vast property market as pressure on exports mounts.

The reading was lower than the 0.2% fall Bloomberg forecast based on a survey of economists.

It also marked the steepest decline since February's drop of 0.7%.

Factory gate prices also dropped in August, the NBS said Wednesday, but at a slower rate than recent months.

The producer price index, which measures the prices of goods before they enter wholesale or distribution, fell 2.9% last month.

The latest PPI reading improved from the 3.6% fall recorded in July, in line with a Bloomberg forecast.

source: AFP

Oracle shares leap on bumper growth forecast after astonishing quarter

2025-09-09T20:36:07Z

Shares in Oracle Corp on Tuesday leapt as it predicted buoyant cloud infrastructure sales, reflecting strong demand, after what it called an "astonishing" quarter.

Shares shot up 21% to USD293.25 in after hours trading. They had earlier closed up 1.3% at USD241.56 in New York on Tuesday.

Revenue increased 12% to USD14.93 billion from USD13.31 billion a year prior, shy of USD15.03 billion consensus.

Total remaining performance obligations were up 359% year-over-year to USD455 billion, Cloud revenues rose 28% to USD7.2 billion but software revenue was down 1% at USD5.7 billion.

"We signed four multi-billion-dollar contracts with three different customers in Q1," said Oracle Chief Executive Safra Catz.

"The scale of our recent RPO growth enables us to make a large upward revision to the Cloud Infrastructure portion of Oracle's overall financial plan which we will be presenting in detail next month at the financial analyst meeting. As a bit of a preview, we expect Oracle Cloud Infrastructure revenue to grow 77% to USD18 billion this fiscal year - and then increase to USD32 billion, USD73 billion, USD114 billion, and USD144 billion over the subsequent four years."

"Oracle is off to a brilliant start to FY26," Catz added.

"MultiCloud database revenue from Amazon, Google and Microsoft grew at the incredible rate of 1,529% in Q1," said Oracle Chair Chief Technology Officer, Larry Ellison. "We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscaler partners, for a total of 71."

In addition, Oracle declared a quarterly cash dividend of USD0.50 per share.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

NEW YORK MARKET CLOSE: Shares shake off jobs revisions, Apple rollout

2025-09-09T20:33:04Z

Shares ended higher in New York on Tuesday despite hefty revisions to 12-month nonfarm employment figures, while Apple's iPhone 17 rollout failed to impress.

The Dow Jones Industrial Average closed up 114.09 points, 0.3%, at 45,514.95. The S&P 500 rose 13.65 points, 0.2%, to 6,495.15. The Nasdaq Composite ended up 98.31 points, 0.5%, at a record high of 21,798.70.

"Four straight monthly wins, supportive breadth, and easing yields keep the tape biased higher into Q4," said Piper Sandler managing director and chief market technician Craig Johnson.

"History shows streaks like this rarely fade quietly, with seasonality adding fuel. Rotation remains uneven, but selective leadership is broadening beyond mega-cap tech."

"The trend remains up and to the right - and history suggests year-end strength is more likely to be confirmed than denied," he added.

Shares climbed on Tuesday even as the US Bureau of Labor Statistics said it had overestimated total nonfarm employment by 911,000 jobs, or 0.6%, in the 12 months through March 2025.

The agency's preliminary benchmark revision is part of the its routine reconciliation between survey-based employment estimates and more complete counts derived from state unemployment insurance records.

The latest adjustment indicates the job market was weaker than previously thought. The downward revision far exceeds the 10-year average revision of 0.2%.

Private sector jobs were overcounted by 880,000, or 0.7%. The leisure and hospitality sector saw the largest absolute revision, down by 176,000 jobs or 1.1%, followed by trade, transportation and utilities, revised down by 226,000 or 0.8%. The information sector saw the largest relative drop, down 2.3%.

The benchmark process does not revise previously published estimates yet, as final revisions will be incorporated into the January 2026 employment situation report due in February 2026.

In an interview with CNBC following the report, JPMorgan Chief Executive Jaime Dimon said: "I think the economy is weakening. Whether it's on the way to recession or just weakening, I don't know."

"There's a lot of different factors in the economy right now," he added, citing the weakening consumer and still-robust corporate profit. "We just have to wait and see."

Dimon said the Federal Reserve will "probably" reduce its benchmark interest rate at its next meeting later this month, but it might not "be consequential to the economy."

Along with worse than expected August nonfarm data, the weaker jobs picture has brought the chances of a 25 basis points cut to 91.8%, according to the CME FedWatch tool.

Such a move would bring the target range to a range of 4.00-4.25% .

The White House distanced itself Tuesday from Israeli strikes against Hamas in Doha, Qatar.

While eliminating Hamas was a "worthy goal," a strike in the Qatari capital Doha "does not advance Israel or America's goals," said White House Press Secretary Karoline Leavitt.

"The president views Qatar as a strong ally and friend of the US, and feels very badly about the location of this attack," she said.

Upon learning of the forthcoming strikes, "Trump immediately directed Special Envoy (Steve) Witkoff to inform the Qataris of the impending attack, which he did," Leavitt added.

In a call with the Qatari Emir Sheikh Tamim bin Hamad Al Thani, Trump "assured them that such a thing will not happen again on their soil."

Apple shares closed down 1.5% on Tuesday as the company was largely mute on AI at its annual showcase in Cupertino.

The company unveiled its slimmest iPhone to date, the 17 Air, which features a larger 6.3-inch display and is powered by a new A19 chip for AI features.

Apple called a new camera system "the best" it's ever made.

The price of upgraded AirPods and new Apple Watch models was unchanged, though the price of new generation iPhone will rise by USD100.

Walmart shares closed flat on Tuesday after it said it will open its first stores in South Africa later this year. Official opening dates will be announced in October

Ben & Jerry's founders Ben Cohen and Jerry Greenfield have written an open letter on Tuesday calling for the business to be made independent as parent group The Magnum Ice Cream Co spoke to investors and analysts in London.

Magnum, which includes the Ben & Jerry's, Cornetto and Walls brands, is to be formally split off from consumer group owner Unilever and floated in November.

However, Magnum stressed that Ben & Jerry's is "not for sale" and will remain part of the group.

Unilever acquired the business in 2000 but has been at odds with its founders in recent years, particularly in relation to political and social issues.

Unilever closed down 1.5% in New York.

Eli Lilly announced the launch of Lilly TuneLab, an artificial intelligence and machine learning platform that provides biotechnology companies access to drug discovery models trained on years of Lilly's research data.

Specifically, the platform draws on Eli Lilly's full drug disposition, safety and preclinical datasets. In return for access, selected biotechnology partners will contribute training data, which "fuels continuous improvement for the benefit of others in this ecosystem and ultimately patients".

Lilly closed up 1.6%.

Late Tuesday, the pound traded at USD1.3523, down from USD1.3550 at the New York close on Monday. The euro eased to USD1.1707 from USD1.1762. Against the yen, the dollar was at JPY147.45, little changed from JPY147.43 on Monday.

The US 10-year Treasury was at 4.08% late Tuesday, up from 4.05% on Monday. The yield on the US 30-year Treasury was at 4.73%, widened from 4.70%.

Gold was quoted at USD3,632.25 an ounce late on Tuesday, down slightly from USD3,635.56 on Monday.

Brent was quoted at USD66.44 a barrel on Tuesday, up from USD66.17 on Monday. West Texas Intermediate rose to USD62.09 from USD61.75.

In Europe, the FTSE 100 closed up 0.2% in London, as did the CAC 40 in Paris. The DAX 40 in Frankfurt dropped 0.4% in Frankfurt.

In Asia, the Nikkei 225 in Tokyo fell 0.4%. In China, the Shanghai Composite lost 0.5%, while the Hang Seng Index rose 1.2% in Hong Kong. The S&P/ASX 200 closed down 0.6% in Sydney.

Wednesday's global economic calendar has US PPI data, wholesale inventories and the monthly budget statement.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Trump does not support Israel's attack on Qatar: White House

2025-09-09T19:49:41Z

"The president views Qatar as a strong ally and friend of the US, and feels very badly about the location of this attack," she said.

Qatar, which is home to a large US military base, has played a key role in mediating negotiations between Israel and Hamas since the outbreak of the Gaza war in October 2023.

"The Trump administration was notified by the US military that Israel was attacking Hamas," Leavitt said, pointedly declining to add further details when asked multiple times to clarify how the military obtained that information.

Earlier, a White House official speaking on condition of anonymity had said simply that "we were notified."

Upon learning of the forthcoming strikes, "Trump immediately directed Special Envoy (Steve) Witkoff to inform the Qataris of the impending attack, which he did," Leavitt said.

Following the strikes, Trump spoke separately with Israeli Prime Minister Benjamin Netanyahu and Qatari Emir Sheikh Tamim bin Hamad Al Thani.

Netanyahu "told President Trump that he wants to make peace and quickly," Leavitt said, adding that Trump "believes this unfortunate incident could serve as an opportunity for peace."

In his call with the Qatari leader, Trump "assured them that such a thing will not happen again on their soil."

Asked if he had made that clear to Netanyahu, Leavitt replied that Trump had "overstressed the importance of peace in the region" in his call with the Israeli premier.

source: AFP

Macron names close ally Sebastien Lecornu new Prime Minister

2025-09-09T19:48:39Z

In response, Lecornu thanked Macron for his trust, and hailed Bayrou "for the courage he showed in defending his convictions to the very end".

"The President of the Republic has entrusted me with the task of building a government with a clear direction: the defence of our independence and power, the service of the French people, and political and institutional stability for the unity of the country," the incoming premier said.

Bayrou, who survived just nine months in office, submitted his resignation to Macron earlier on Tuesday after France's parliament ousted the government in a confidence vote.

The formal handover of power between Bayrou and Lecornu is due to take place on Wednesday at midday.

The French president has in the past been notoriously slow in casting a new prime minister. But this time he has taken less than a day given the risk of financial and political instability.

"Emmanuel Macron is now in the front line to find a solution to the political crisis," said the newspaper Liberation.

France's borrowing costs, a measure of investor confidence, on Tuesday surged slightly higher than those for Italy, long one of Europe's debt laggards.

"The president is convinced that (under Lecornu) an agreement between the political forces is possible, while respecting the convictions of each," said the Elysee.

Bayrou had blindsided even his allies by calling a confidence vote to end a lengthy standoff over his austerity budget, which foresaw almost 44 billion euros (USD52 billion) of cost savings to reduce France's debt pile.

In the end, 364 deputies in the National Assembly voted that they had no confidence in the government, while just 194 gave it their confidence.

Bayrou was the sixth prime minister under Macron since his 2017 election, and the fifth since 2022.

His predecessor, Michel Barnier, was brought down by a no-confidence vote in December.

The crisis dates back to summer 2024 legislative elections that resulted in a hung parliament.

"Emmanuel Macron, a vulnerable president," said the daily Le Monde.

Macron, who has been leading diplomatic efforts internationally to end Russia's war on Ukraine, had faced one of the most critical domestic decisions of his presidency over who to appoint as premier.

Lecornu has been in his post more than three years, for most of Russia's invasion of Ukraine, and is a staunch supporter of Kyiv.

He is seen as a discreet but highly skilled operator who, crucially for Macron, himself harbours no ambition of becoming president.

Lecornu had been tipped to take the premier job in December but in the end Bayrou reportedly strong-armed the president into giving him a chance.

Alongside political upheaval, France is also facing social tensions.

A left-wing collective named "Block Everything" is calling for a day of action on Wednesday and trade unions have urged workers to strike on September 18.

"I hope we can find agreements. I believe there is a possibility of building a project that satisfies what I call the national majority," said Interior Minister Bruno Retailleau, who is also leader of the main right-wing party, The Republicans.

The 2027 presidential election meanwhile remains wide open, with analysts predicting the French far right will have its best-ever chance of winning. Macron is constitutionally barred from standing for a third term in 2027.

The hopes of the three-time presidential candidate for the far-right National Rally (RN), Marine Le Pen, depend on the outcome of an appeal hearing early next year over her conviction for a European Parliament fake jobs scam that disqualified her from standing for office.

She described Lecornu's appointment as the "final shot of Macronism".

The Socialist Party, which had been eyeing the prime minister's position for itself, denounced Macron's decision not to include them and said the president risked provoking "legitimate social anger and institutional stalemate".

But former prime minister Edouard Philippe, who is on the centre-right, was more optimistic. Lecornu "has the qualities" to "discuss" and "find an agreement" with the other parties, he told TF1 television.

source: AFP

Apple unveils iPhone 17, Apple Watch and AirPods upgrades

2025-09-09T18:55:12Z

Apple Inc on Thursday unveiled its thinnest phone to date, the iPhone 17 Air, alongside AirPods and Apple Watch upgrades.

Apple shares traded 1.7% lower at USD233.86 in New York on Tuesday afternoon following the showcase at its Cupertino, California headquarters.

The iPhone 17 Air has a larger 6.3-inch display and is powered by a new A19 chip to help power Apple AI features. The front camera has been upgraded, with a wider field of view and new sensor allowing landscape photos to be taken without having to rotate the phone.

Apple called it "the best camera system we've ever made".

As the company navigates US tariffs, it raised the price on the iPhone 17 Pro to USD1,099 from the 16 Pro starting price of USD999. The USD899 iPhone 16 Plus is replaced by the USD999 iPhone Air.

The Apple Watch Ultra 3 has an improved display, satellite connectivity and added 5G coverage. The starting price remains at USD799, as does the price of Apple's other Apple Watch lines.

The AirPods Pro will retail at USD249, the same as the current generation. The upgraded model includes live translation and improved noise-cancelling and battery life.

The company said its latest iPhone operating system update, which features a visual redesign called "liquid glass", will be released Monday.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: FTSE 100 up as Anglo American strikes Teck deal

2025-09-09T16:08:54Z

The FTSE 100 closed higher on Tuesday, on a mixed day in London, supported by strength in mining stocks after Anglo American announced a deal to merge with Canada's Teck Resources.

The FTSE 100 index closed up 21.09 points, 0.2%, at 9,242.53. The FTSE 250 ended 87.74 points lower, 0.4%, at 21,596.71 and the AIM All-Share finished down 1.43 points, 0.2%, at 768.30.

The Cboe UK 100 ended up 0.1% at 926.58, the Cboe UK 250 closed 0.3% lower at 18,926.89 and the Cboe Small Companies finished down 0.5% at 17,109.68.

Anglo American rose 9.1%.

The miner has agreed a deal to combine with Teck Resources, creating a "critical minerals champion and top five global copper producer". The "merger of equals" will see Anglo issue 1.3301 ordinary shares to Teck shareholders, in exchange for each outstanding Teck class A common share and class B subordinate voting share.

The enlarged firm is expected to have stock market listings in London, Johannesburg, Toronto and New York, the latter through American depositary receipts.

"We see the merger proposition as compelling for Anglo, enhancing its copper exposure, while further strengthening the growth proposition over the next decade," said Citi analyst Ephrem Ravi.

The M&A impetus in the mining sector also lifted shares in Glencore and Antofagasta, which were up 5.3% and 2.0% respectively. Teck was up 14% in New York.

Elsewhere, the oil price spiked in afternoon trade as Israel confirmed it had carried out air strikes on Doha in an operation targeting senior leaders of Palestinian militant group Hamas.

A barrel of Brent traded at USD66.91 late Tuesday afternoon, up from USD66.31 on Monday, on fears the strike will reignite tensions within the region.

Saudi Arabia's Crown Prince Mohammed bin Salman slammed the attack, calling it a "criminal act".

Israel notified the US before it carried out the strikes, a White House official said.

In Europe, the CAC 40 in Paris ended up 0.2%, while the DAX 40 in Frankfurt closed 0.4% lower.

French Prime Minister Francois Bayrou was set to submit his resignation to President Emmanuel Macron after parliament ousted the government on Monday, with the French leader rushing to find a successor in a deepening political crisis.

On Monday, Bayrou suffered a crushing loss in the confidence vote he had himself called, plunging France into fresh uncertainty and leaving Macron with the task of finding the seventh premier of his mandate.

In a parting shot before the vote, Bayrou told lawmakers: "You have the power to topple the government, but you don't have the power to erase reality," referring to France's debt mountain.

The French president's office said in a statement that Macron "took note" of the outcome and would name a new premier "in the next days", ending any remaining speculation that the president could instead call snap elections.

The political uncertainty comes days before the next European Central Bank decision, at which it is widely expected to lave interest rates unchanged.

In New York, at the time of the London equities market close, the Dow Jones Industrial Average was up 0.3%, the S&P 500 rose 0.1%, while the Nasdaq Composite fell 0.1%.

Figures from the US Bureau of Labor Statistics showed it had overestimated total nonfarm employment by 911,000 jobs, or 0.6%, in the 12 months through March 2025, according to its preliminary benchmark revision.

The annual revision is part of the agency's routine reconciliation between survey-based employment estimates and more complete counts derived from state unemployment insurance records.

The downward revision far exceeds the 10-year average revision of 0.2%.

The pound eased to USD1.3531 late on Tuesday afternoon in London, compared to USD1.3545 at the equities close on Monday. The euro dipped to USD1.1724, against USD1.1749. Against the yen, the dollar was trading lower at JPY147.20 compared to JPY147.60.

The yield on the US 10-year Treasury was quoted at 4.08%, stretched from 4.05% on Monday. The yield on the US 30-year Treasury was quoted at 4.73%, widened from 4.71%.

On London's FTSE 250, Diversified Energy rose 5.5% as it announced a move to acquire Canvas Energy for USD550 million.

"The acquisition adds complementary operated producing properties and acreage positions in Oklahoma, concentrated in Major, Kingfisher, and Canadian Counties," it explained. "Included in the acquisition are approximately 23 high quality wells that have been turned to sales in the last 12 months."

But homeware provider Dunelm was out of favour, tumbling 10%, as it highlighted lacklustre consumer confidence alongside in line results.

Russ Mould, analyst at AJ Bell commented: "Dunelm is holding its head above water in a tricky retail environment, yet investors clearly want more judging by the negative market response to its latest results."

The Leicestershire, England-based company said pretax profit rose 2.7% to GBP211.0 million in the 52 weeks to June 28 from GBP205.4 million the year prior. Diluted earnings per share increased 3.2% to 76.8 pence from 74.4p.

Revenue climbed 3.8% to GBP1.77 billion from GBP1.71 billion, as its market share of the combined homewares and furniture market rose to 7.9% from 7.7%.

"A solid enough update from Dunelm, albeit with no obvious new news," commented Grace Gilberg, an analyst at Jefferies.

"After a good recovery in the shares since April, and no definite signal of an improving consumer, this update could temper near-term enthusiasm. The shares trade on [around] 15x PE, and we retain our neutral stance," she continued.

Gold ebbed to USD3,640.80 an ounce on Tuesday against USD3,644.14 on Monday.

The biggest risers on the FTSE 100 were Anglo American, up 207.00 pence at 2,490.00p, Glencore, up 15.15p at 301.65p, Airtel Africa, up 8.00p at 223.60p, Coca-Cola Europacific Partners, up 150.00p at 6,730.00p and NatWest, up 10.20p at 522.20p.

The biggest fallers on the FTSE 100 were London Stock Exchange, down 434.00p at 8,826.00p, Howden Joinery, down 25.00p at 830.50p, JD Sports, down 2.08p at 93.40p, Ashtead Group, down 118.00p at 5,474.00p and Fresnillo, down 42.00p at 2,136.00p.

Wednesday's local corporate calendar has a trading statement from Primark owner Associated British Foods, and half year results from housebuilder Vistry.

The global economic calendar on Wednesday has a Chinese inflation print overnight, plus US producer price inflation figures.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UPDATE: Israel launches strikes targeting Hamas leaders in Qatar

2025-09-09T15:39:39Z

Israel launched a strike targeting Hamas' leadership in Qatar on Tuesday, officials said, further widening its campaign against the militant group.

Black smoke rose over the skyline of the Qatari capital, Doha, with authorities there acknowledging the strike.

It was not immediately clear if anyone was hurt in the attack.

The assault marks the second time the energy-rich nation has been directly attacked in the nearly two years of war that have gripped the wider Middle East since Hamas' attack on southern Israel on October 7, 2023 - even as it has served as a key negotiator in efforts to end the conflict.

It also calls into question whether any negotiations will immediately continue.

It was not immediately clear how the attack was carried out, though Israeli military spokesman Avichay Adraee referred to Israel's air force carrying out the strike.

Qatar Airways planes continued landing in Doha amid the strike, even as at least one Qatari air force aircraft took off on patrol over the country.

Israeli officials have sent mixed messages throughout the war, relying on Qatari mediation while also questioning its willingness to put pressure on Hamas.

In a statement after the attack, which didn't specifically name Qatar, Israel's military said Hamas' leaders were "directly responsible for the brutal October 7th massacre, and have been orchestrating and managing the war against the State of Israel".

The Israelis said it used "precise munitions and additional intelligence" in the strike, without elaborating.

An Israeli official, speaking to The Associated Press on condition of anonymity to discuss details beyond the statement, confirmed that the Israelis targeted Hamas in Qatar.

Qatar condemned what it referred to as a "cowardly Israeli attack" on Hamas' political headquarters in Doha.

Foreign Ministry spokesman Majed al-Ansari called it a "flagrant violation of all international laws and norms".

Qatar "confirms that it will not tolerate this reckless Israeli behaviour and the ongoing disruption of regional security, nor any act that targets its security and sovereignty," Mr al-Ansari added.

Qatar's vast Al-Udeid Air Base, home to the US military's forward headquarters for its Middle East-based Central Command, came under Iranian attack during the 12-day Iran-Israel war that saw American bombers attack Iranian nuclear sites.

The US Embassy in Qatar said that it had "instituted a shelter-in-place order for their facilities".

"US citizens are advised to shelter-in-place," it added.

Earlier this week, President Donald Trump said that he was giving his "last warning" to Hamas regarding a possible ceasefire, as Arab officials described a new US proposal.

A senior Hamas official called it a "humiliating surrender document," but the militant group said that it would discuss the proposal and respond within days.

The proposal, presented by Trump's Middle East envoy Steve Witkoff, calls for a negotiated end of the war and the withdrawal of Israeli forces from Gaza once the hostages are released and a ceasefire is established, according to Egyptian and Hamas officials familiar with the talks, who spoke to the AP on condition of anonymity to discuss the closed-door discussions.

Mediators had previously focused on brokering a temporary ceasefire and the release of some hostages, with the two sides then holding talks on a more permanent truce.

Witkoff walked away from those talks in July, after which Hamas accepted a proposal that the mediators said was almost identical to an earlier one that Israel had approved.

An official in Egypt, which also has been meditating a potential ceasefire, told the AP that the strike came when a meeting by Hamas officials over the talks had been scheduled for the site.

By Joseph Federman, Associated Press

source: PA

US revises jobs data lower by 911,000 in annual benchmark

2025-09-09T14:38:11Z

The annual revision is part of the agency's routine reconciliation between survey-based employment estimates and more complete counts derived from state unemployment insurance records.

The latest adjustment indicates the job market was weaker than previously thought. The downward revision far exceeds the 10-year average revision of 0.2%.

The benchmark process does not revise previously published estimates yet, as final revisions will be incorporated into the January 2026 employment situation report due in February 2026.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Israel military says targeted Hamas leaders, after blasts rock Doha

2025-09-09T13:32:40Z

The Israeli military said it targeted senior Hamas leaders on Tuesday, after AFP journalists in Doha reported explosions and smoke rising above the Qatari capital, where the Palestinian group's political bureau is based.

"The IDF [Israeli military] and ISA [security agency] conducted a precise strike targeting the senior leadership of the Hamas terrorist organisation," the military said, without specifying where the strike took place.

source: AFP

FOREX: Dollar mixed before US jobs data revisions release

2025-09-09T13:30:00Z

The dollar was mixed on Tuesday before the US labour market moves back into focus later in the afternoon, while the euro surrendered some ground amid turmoil in France.

Before US producer and consumer price index readings on Wednesday and Thursday, Tuesday afternoon has the benchmark revision announcement for US jobs data or the year to March.

Fed Governor Christopher Waller last month predicted that "monthly job creation will be reduced by an average of about 60,000 a month". That would mean that "private-sector employment actually shrank, on average, in the past three months and that job creation earlier in the year was weaker than currently reported", he added.

SPI Asset Management analyst Stephen Innes commented: "That leaves consensus braced for a downward revision of roughly 700,000 jobs through March. That's no rounding error — it's a direct hit to the Fed's 'solid labour market' premise. If the revision mirrors last year's shock of –818,000 or worse, the dollar is primed for another leg lower as traders push front-end pricing more aggressively toward jumbo 50bp cut assumptions. And with CPI looming just ahead, that print could become the real 'truthsayer' for whether those jumbo bets stick or fade."

Against the dollar, sterling advanced to USD1.3559 on Tuesday, from USD1.3553 on Monday.

Versus the euro, sterling climbed to EUR1.1541 on Tuesday from EUR1.1526 on Monday. The single currency faded against the dollar to USD1.1744 from USD1.1754.

French Prime Minister Francois Bayrou was on Tuesday to submit his resignation to President Emmanuel Macron after parliament ousted the government, with the French leader rushing to find a successor and stave off a new political crisis.

On Monday, Bayrou suffered a crushing loss in a confidence vote he had himself called, plunging France into fresh uncertainty and leaving Macron with the task of finding the seventh premier of his mandate.

The French presidency said in a statement that Macron "took note" of the outcome and said he would name a new premier "in the next days", ending any remaining speculation that the president could instead call snap elections.

Macron will meet Bayrou on Tuesday "to accept the resignation of his government", it added. The formal submission of his resignation was expected in the middle of the day.

Bayrou had staked his survival on a confidence vote he had called after months of deadlock over the budget, which includes plans to cut spending.

Rostro analyst Joshua Mahony commented: "Bayrou's efforts to reduce spending in a bid to bring down the French debt burden means his successor is likely to take a less conservative approach which means higher spending and continued debt concerns. For now, that means good news for stocks, but the weakness in the euro highlights ongoing question marks around the stability of the region."

Versus the yen, the dollar fell to JPY146.81 from JPY147.55. Against the Swiss franc, it rose to CHF0.7946 from CHF0.7933.

"Having underperformed yesterday following the resignation of PM Ishiba over the weekend, the JPY spiked higher this morning on newswire reports that the Bank of Japan is said to see a chance of a rate hike this year despite the political uncertainties. There has never been much expectation that the BoJ could hike rates at the September 19 policy meeting," Rabobank analysts commented.

"While it will have come as a relief to Swiss National Bank policymakers that the inflation rate was not below zero in last month, deflationary pressure is a clear threat."

Rabobank continued: "Although the market favours a steady policy outcome from the SNB this month, Swiss rate setters have previously used the element of surprise to their advantage. This indicates that a rate cut this month or in December remains a firm risk."

Against the Australian dollar, the buck faded to AUD1.5124 from AUD1.5154. Versus its Canadian counterpart, the US currency edged up to CAD1.3805 from CAD1.3795.

The Dollar Index stood at 97.52 points, where it sat a day earlier.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

German minister urges need for swift trade deals after US tariffs

2025-09-09T12:53:43Z

German Foreign Minister Johann Wadephul hopes free trade agreements with Latin American countries and India will be concluded by the end of the year.

"That would be a crucial prerequisite, not only for the exchange of goods and services with these countries. It would also show that the EU is capable of acting as a geopolitical factor," Wadephul said at a meeting of German ambassadors in Berlin on Tuesday.

"Demonstrating this capacity to act has never been more urgent than it is now."

His comments came as the EU looks for new partnerships following the barrage of tariffs unleashed by US President Donald Trump.

Last week, the European Commission asked the 27 EU member states to sign off on two major, yet controversial, free trade deals with Latin American countries.

The EU's negotiations with the Mercosur trade zone of Argentina, Brazil, Paraguay and Uruguay were concluded in December after more than 25 years of talks, creating one of the world's biggest free trade zones with 700 million inhabitants.

The agreement with Mercosur is aimed at increasing the EU's annual export volume by up to EUR49 billion through cutting tariffs on products like cars, machinery and pharmaceuticals. In return, the four South American countries are to be allowed to sell more agricultural goods to the EU.

A separate deal with Mexico extends an existing agreement aimed at removing Mexican import barriers for EU agricultural products and allowing the bloc to import more critical raw materials from Mexico.

source: dpa

Up to 30 million UK car finance deals eligible for compensation — FCA

2025-09-09T11:35:17Z

Up to 30 million car finance deals made between 2007 and 2020 could be eligible for compensation, the head of the UK's financial watchdog has said.

Nikhil Rathi, chief executive of the Financial Conduct Authority, FCA, said he hopes that most payouts to drivers will be made during 2026.

The FCA is currently consulting on an industry-wide redress scheme for consumers who experienced harm.

It said some motor finance firms broke the law or its rules by not properly informing customers about commission paid by lenders to the car dealers that sold them the loan.

Rathi told a group of MPs on the Treasury Committee: "During the period that we're looking at – from 2007 through to approximately 2020 – there are around 30 million agreements… and all of those will be eligible for compensation.

"One of the things that we are looking at very closely is what the scope of the scheme will be."

He said that the FCA was looking into so-called discretionary commission arrangements, DCAs, of which there were about 14.6 million over the same period.

This refers to arrangements whereby brokers, including car dealers, were able to increase interest rates on car loans so they could get more commission.

"A very significant proportion of those agreements… we do think probably breached the law when it came to disclosure and, by extension, unfair relationships," Rathi said.

The regulatory chief said it was consulting on the scheme because there was "evidence that there have been unfair relationships between lenders and their consumers and commissions paid that were not adequately disclosed".

He said that a "large number of consumers were not properly informed and perhaps did not get the fairest interest rate that they should have done" for a motor finance agreement.

The consultation is due to be launched by early October, Rathi said, adding: "We hope that compensation, where it is due, can start to be paid next year."

"The practices that we're dealing with in this scheme are practices of the past, and we do want to put this behind us as soon as possible," he stressed.

Meanwhile, the FCA boss suggested that customers do not need to use lawyers or claims management companies, CMCs, to make a complaint, and warned people about potential fraudsters exploiting the situation.

He said: "Some of the CMCs and law firms are putting out high-pressured advertising suggesting to consumers they may get more than GBP4,500, and numbers like that.

"We have intervened in around 400 promotions by claims management companies, asking for them to be removed or amended, since 2024.

"One hundred and seventy-one we have asked to change since the Supreme Court judgment itself.

"So we don't agree with some of those very large estimates … we do think the average is likely to be hundreds, not thousands, of redress."

The FCA previously estimated that most individuals would probably receive less than GBP950 in compensation.

It also said that the final total cost of any compensation scheme is estimated to be between GBP9 billion and GBP18 billion.

Rathi told MPs that there were at least 38 motor finance firms in the UK that were likely to have to be involved in running a scheme.

The industry-wide action was announced after the Supreme Court ruled in August that lenders were not liable for hidden commission payments on car finance agreements.

But the FCA released a statement shortly after the judgment, saying it was "clear that some firms have broken the law and our rules" and that it was "fair for their customers to be compensated".

Lloyds Banking Group PLC shares were 0.8% higher at 80.76 pence each on Tuesday afternoon in London.

Close Brothers Group PLC fell 1.1% to 465.40p each, S&U PLC was down 0.8% at 1,800.00p, and Vanquis Banking Group PLC was 0.8% lower at 109.15p.

By Anna Wise, PA Business Reporter

Press Association: Finance

source: PA

COMMODITIES: Gold hits another record as oil slides on demand worries

2025-09-09T11:22:40Z

Gold surged to a fresh high record on Tuesday as investors remained hopeful that US interest rate might be cut next week, before the upcoming inflation report in the world's largest economy.

Spot gold was quoted at USD3,652.89 an ounce on Tuesday afternoon in London, up from USD3,617.77 at the same time on Monday. Silver edged up to USD41.28 an ounce from USD41.23.

The yellow metal on Tuesday touched USD3,659 an ounce, an all-time high mark following a series of records since last week. It soared above USD3,600 for the first time in history on Friday last week after poor US nonfarm payroll data.

Gold has risen 39% year to date, and is up 46% over the past 12 months.

The rally in bullion is supported by increased bets on a "wave of Federal Reserve rate cuts" this year, ING analysts Warren Patterson and Ewa Manthey said.

"Swap traders continue to boost their bets on interest rate cuts and price in three rate cuts this year, including a quarter-point cut at the Fed's meeting next week," Patterson and Manthey said.

The US Federal Reserve will decide on interest rates on Wednesday next week. For now, investors are awaiting the US consumer price inflation data, due out on Wednesday.

"Lower borrowing costs usually benefit precious metals, which do not pay interest," ING analysts said, adding: "Monetary policy expectations are now likely to become the primary driver for gold's direction."

US Treasury bond yields have fallen sharply since Friday last week.

Continued concerns over the Fed's independence, they said, will also remain the focus for the gold market looking ahead.

In other commodities, Brent crude oil was priced at USD66.43 a barrel on Tuesday, down from USD66.82 on Monday. West Texas Intermediate eased to USD62.70 a barrel, compared to USD63.16.

Expectations of price cuts from Saudi Arabia raised some concerns of softening demand amid increasing supply, ING's Patterson and Manthey said.

"Recent estimates suggest that Saudi Arabia could cut prices on most of its crude grades for buyers in Asia and other regions for next month," Patterson and Manthey said.

"As per the recent estimates from Bloomberg, the state producer Saudi Aramco could lower the price of its flagship Arab light crude to its biggest market by USD1/bbl for shipments in October, reversing the price hike for September deliveries," they added.

The oil marker retreated Tuesday after rising the previous session due to a "mix of geopolitical risks in light of both US-Venezuela tensions and Opec+ supply dynamics", XS.com analyst Samer Hasn said.

"According to the Pentagon, two Venezuelan military aircraft flew dangerously close to a US Navy vessel operating in international waters," Hasn said.

"This incident occurred just days after President Trump ordered a strike in the region that killed suspected narcoterrorists, marking an escalation in Washington's naval deployment aimed at stopping drug flows and increasing pressure on Nicolas Maduro's regime," he said.

The Opec+ alliance said Sunday it has decided to increase production by 137,000 barrels per day from next month.

In other metals, platinum was priced at USD1,398.85 an ounce on Tuesday, up from USD1,397.53 on Monday. Palladium was quoted at USD1,143.48 an ounce, up from USD1,135.46.

In base metals, the copper price dropped to USD9,895.00 per tonne from USD9,948.00. Aluminium softened to USD2,612.00 from USD2,613.00.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: Miners lift FTSE 100 before US jobs revisions

2025-09-09T11:07:31Z

European equities traded mixed on Tuesday afternoon, with the blue-chip benchmark in Paris outperforming despite French political turmoil, while M&A activity in London added some impetus before this week's US data.

Before US producer and consumer price index readings on Wednesday and Thursday, Tuesday afternoon has a benchmark revision announcement for US jobs data or the year to March.

The FTSE 100 index rose 20.05 points, 0.2%, at 9,241.49. The FTSE 250 was down just 5.44 points at 21,679.01, and the AIM All-Share was up 1.68 points, 0.2%, at 771.41.

The Cboe UK 100 was up 0.1% at 926.16, the Cboe UK 250 was flat at 18,989.91, but the Cboe Small Companies was 0.4% lower at 17,118.12.

In Paris, the CAC 40 was up 0.4%. In Frankfurt, the DAX 40 was down 0.3%.

In New York, the Dow Jones Industrial Average is called to open slightly lower, the S&P 500 up 0.1% and the Nasdaq Composite 0.2% higher.

"The highlight of the North American session is the benchmark revisions to the establishment survey, where a sharp downward revision is expected," Bannockburn analyst Marc Chandler commented.

Sterling advanced to USD1.3578 on Tuesday afternoon, from USD1.3545 at the time of the London equities close on Monday. The euro climbed to USD1.1757 from USD1.1749. Against the yen, the dollar declined to JPY146.50 from JPY147.60.

The yield on the 10-year US Treasury sat at 4.06%, widening from 4.05% at the time of the London equities close on Monday. The yield on the 30-year was at 4.72%, stretching from 4.71%.

Gold rose to USD3,650.93 an ounce from USD3,644.14 at the time of the London equities close on Monday. A barrel of Brent edged up slightly to USD66.35 from USD66.31.

In London, Anglo American rose 9.3%. It agreed a deal to combine with Teck Resources, creating a "critical minerals champion and top five global copper producer". The "merger of equals" will see Anglo issue 1.3301 ordinary shares to Teck shareholders, in exchange for each outstanding Teck class A common share and class B subordinate voting share.

"Subject to satisfaction of certain conditions, the Anglo American board also intends to declare a special dividend of USD4.5 billion (expected to be approximately USD4.19 per ordinary share) to be paid by Anglo American to its shareholders," it added. "Immediately following completion of the merger, Anglo American and Teck shareholders will own approximately 62.4% and 37.6% respectively, of Anglo Teck PLC."

The enlarged firm is expected to have stock market listings in London, Johannesburg, Toronto and New York, the latter through American depositary receipts.

Anglo Teck is expected to "offer more than 70% copper exposure".

AJ Bell analyst Russ Mould commented: "One minute Anglo was fighting off bid interest from BHP, leading to a radical restructuring to show investors it was fit for the future; the next it is swooping on a business that arch-rival Glencore tried and failed to buy.

"Anglo doesn't have a perfect history of deal-making. For example, the purchase of UK mining group Sirius Minerals has yet to yield any benefits. It also failed to spot the threat of lab-made diamonds and hung on to a majority stake in De Beers for too long. It should have offloaded the business while the diamond industry was sparkling, not on its knees as it is now. Diamonds have been non-core to Anglo for a very long time, and it is now paying the price for not jettisoning them at the right time as it might only get peanuts for De Beers, if a buyer can be found at all."

The M&A impetus in the mining sector lifted shares in Glencore and Antofagasta also. The duo were up 4.6% and 1.9%. Teck was up 14% in pre-market trade in New York.

Also striking a deal, Diversified Energy rose 3.5%. It announced a move to acquire Canvas Energy for USD550 million.

Dunelm slumped 9.1%.

Mobico plunged 17%. The Birmingham, England-based public transport operator and National Express owner said its pretax loss for the six months to June 30 narrowed to GBP7.1 million from GBP29.3 million the year before.

Adjusted operating profit for the six-month period, excluding the North America School Bus business, sank 13% to GBP59.9 million from GBP68.6 million a year prior. Mobico agreed the sale of its NA School Bus business to I Squared Capital in late April, which carried an up to USD608 million enterprise value.

Revenue increased 7.0% to GBP1.32 billion from GBP1.24 billion a year earlier.

It remains confident of achieving full year adjusted operating profit guidance of between GBP180 million and GBP195 million. But German bank Berenberg believes this could be a challenge.

"While Mobico has reaffirmed its full-year guidance for both profitability and leverage, it does imply that Mobico will need to deliver [around 9-23% adjusted operating profit] growth in H2 following the declines in H1. While this is not unachievable, in our view, particularly given the seasonality in the company's H2 profit in the last few years, Mobico will need to execute well in H2 to hit this target," Berenberg said.

Elsewhere, eyes remained on Paris. French Prime Minister Francois Bayrou was on Tuesday to submit his resignation to President Emmanuel Macron after parliament ousted the government, with the French leader rushing to find a successor in a deepening political crisis.

Macron will meet Bayrou on Tuesday "to accept the resignation of his government", it added.

The political uncertainty comes days before the next European Central Bank decision.

Berenberg analyst Holger Schmieding commented: "ECB president Lagarde will have to mince her words carefully this Thursday, neither suggesting that the ECB may eventually bail out an unrepentant fiscal sinner nor taking such a harsh line as to unsettle markets that still give France the benefit of the doubt.

"The ECB has no mandate to bail out a fiscal sinner. But it could act to prevent contagion to other countries – and support any country that returns to sustainable fiscal policies."

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Diversified Energy to acquire Canvas Energy in USD550 million deal

2025-09-09T11:06:29Z

Diversified Energy Co PLC on Tuesday said it has entered into an agreement to purchase oil and natural gas exploration and production company, Canvas Energy Inc, expanding its footprint in Oklahoma.

The Birmingham, Alabama-based gas and oil production company said the total consideration for the acquisition of Oklahoma-based Canvas Energy is around USD550 million.

Under the terms of the deal, Canvas unit holders are set to receive USD495 million in cash at completion. Diversified said the initial transaction will be funded through its strategic partnership with global investment firm Carlyle Group Inc. The company will also utilise existing liquidity and the issue of around 3.4 million shares to Canvas Energy to fund the purchase, it said.

Diversified noted that Canvas's gross assets as of June 30 stood at USD689 million, with revenue and other income items of Canvas for the 12-months to June 30 being USD304 million and net income being USD107 million.

Diversified expects the transaction to close in the fourth quarter of this year.

Shares in Diversified Energy rose 3.5% to 1,144.00 pence on Tuesday morning in London, giving the company a market capitalisation of GBP882.1 million.

Diversified said the deal complements its existing Oklahoma asset portfolio, and is underpinned by high earnings before interest, tax, depreciation and amortisation margins of around 70%. It added that it expects "meaningful annual run rate synergies" from the deal.

Diversified Energy Chief Executive Rusty Hutson commented: "This purchase strengthens Diversified by further expanding our footprint in our Oklahoma operating area with targeted assets that are a perfect fit for increasing our scale, allowing for synergy capture and providing meaningful opportunities for margin enhancement, that ultimately will grow and bolster our cash flow.

"We are excited to leverage our strategic partnership with Carlyle for funding accretive acquisitions and are pleased with the collective team's collaboration. This initial transaction serves as an important milestone in our relationship and we look forward to growing our combined portfolio of high quality assets."

By Christopher Ward, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Japan ruling party to pick new leader on October 4, replacing Ishiba

2025-09-09T08:59:27Z

Japan's ruling Liberal Democratic Party, LDP, will pick its new leader on October 4, the party's election committee said Tuesday, replacing Prime Minister Shigeru Ishiba who resigned after huge election setbacks.

The party president could become the next prime minister as the LDP is the largest force in parliament while the opposition remains fragmented.

The party has governed Japan for all but four years since it was launched in 1955.

The head of the election committee, Ichiro Aisawa, said Tuesday a notice would be issued on September 22 and counting of votes would take place following a 12-day campaign period.

The schedule will be formally approved on Wednesday, he said.

Toshimitsu Motegi, a former top diplomat dubbed the "Trump Whisperer" was the first candidate Monday to join the race to be Japan's next leader.

Veteran female nationalist and former economic security minister Sanae Takaichi, and current agriculture minister Shinjiro Koizumi – the telegenic son of a former prime minister – are seen among other potential candidates in the race.

Whoever wins will face a host of complex issues including a rapidly ageing population, colossal national debt and a faltering economy plagued by rising inflation.

The election will be open to ordinary members of the LDP.

Shunichi Suzuki, the LDP general affairs chief, said the party must be careful to reflect their voices, given intense public outrage over recent corruption scandals involving lawmakers.

"In this election, whether the LDP can rise or fall is at stake," Suzuki told a press conference.

The leadership election will be an opportunity for the party to reform itself, said Hiroshi Moriyama, the LDP secretary general who served under Ishiba.

"I think this presidential election is an important opportunity for our party to make a fresh start... and move forward as a national party for a new era," he said.

The LDP's leaders usually become prime minister because of the party's long-held legislative majority with coalition partner Komeito.

But the party over the past year lost its majority in the both houses of parliament after two major election losses under Ishiba.

The soft-spoken defence policy wonk on Sunday abruptly announced that he would step down, despite earlier suggestions that he would stay on, as rifts within the party deepened over his leadership.

source: AFP

ASML invests EUR1.3 billion in French AI firm Mistral for 11% stake

2025-09-09T08:11:05Z

ASML Holding NV on Tuesday said it has agreed to invest EUR1.3 billion in French artificial intelligence firm Mistral AI SAS and has struck a long-term collaboration agreement.

The Veldhoven, Netherlands-based semiconductor manufacturer said the strategic partnership will also involve AI research, development and operations "to benefit ASML customers with faster time to market and higher performance holistic lithography systems".

ASML said it is investing EUR1.3 billion in Mistral AI's Series C funding round as lead investor. As a result, ASML will hold an 11% share in Mistral AI on a fully diluted basis.

Mistral is raising a total of EUR1.7 billion in the funding round, which will value the company at almost EUR12 billion.

The semiconductor company will gain a seat on Mistral AI's strategic committee as part of the investment, giving it an advisory role in future strategy and technology decisions.

ASML Chief Financial Officer Roger Dassen will take on this role, in addition to his existing responsibilities.

"The collaboration between Mistral AI and ASML aims to generate clear benefits for ASML customers through innovative products and solutions enabled by AI, and will offer potential for joint research to address future opportunities," said ASML Chief Executive Officer Christophe Fouquet.

"We believe that this strategic partnership with Mistral AI, which goes beyond a traditional vendor-client relationship, is the best way to capture this significant opportunity. We also believe that this collaboration is value enhancing to Mistral AI."

Arthur Mensch, Mistral AI's co-founder and CEO added: "We are proud to engage in this long-term partnership with ASML, combining our frontier AI expertise with ASML's unmatched industrial leadership and most sophisticated engineering capabilities. We believe this partnership will strengthen Mistral AI's proposition, position, and value in the AI market."

Shares in ASML were up 0.6% at EUR680.50 in Amsterdam on Tuesday morning.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET OPEN: Stocks rise despite France chaos before US data

2025-09-09T08:02:58Z

Stock prices in Europe opened higher on Tuesday, shaking off political turmoil in France, with another reading of the US labour market to come in the afternoon, before eyes turn to this week's inflation data.

The FTSE 100 index rose 15.38 points, 0.2%, at 9,236.82. The FTSE 250 was up 62.91 points, 0.3%, at 21,747.36, and the AIM All-Share was up 1.79 points, 0.2%, at 771.52.

The Cboe UK 100 was up 0.1% at 925.99, the Cboe UK 250 was up 0.2% at 19,025.07, but the Cboe Small Companies was 0.4% lower at 17,130.33.

In Paris, the CAC 40 was up 0.7%. In Frankfurt, the DAX 40 was flat.

In New York on Monday, the Dow Jones Industrial Average added 0.3%, the S&P 500 rose 0.2% and the Nasdaq Composite climbed 0.5%.

"There was no shortage of drama at the start of September. Firstly, the weak US payrolls number, then a double whammy of political turmoil on Monday with both France and Japan losing their Prime Ministers. However, none of this has spooked financial markets. Usually concerns about a US economic slowdown and mounting political risks trigger big moves out of risky assets and into safe havens. However, not this time. US stocks are close to record highs; the Nasdaq composite index reached a fresh record high on Monday," XTB analyst Kathleen Brooks commented.

Following the collapse of France's centre-right government, President Emmanuel Macron is set to swiftly appoint a new prime minister, his office said.

The Elysee Palace said on Monday evening that Macron will meet with outgoing Prime Minister Francois Bayrou on Tuesday to accept his government's resignation.

"The president will appoint a new prime minister in the coming days," the statement added, noting that Macron has taken the outcome of the confidence vote into account.

Bayrou had tied a confidence vote in the National Assembly to his proposed austerity measures but failed. A total of 364 deputies voted against him, while only 194 supported him. As head of state, Macron is responsible for appointing the prime minister.

In focus in the US this week is consumer price index data on Thursday. Before that, there is a producer price reading on Wednesday and at 1500 BST on Tuesday, there will be nonfarm payrolls benchmark revision data for the 12 months to March, published by the Bureau of Labor Statistics at 1500 BST.

Analysts at ING commented: "Today's US data can shed a little more light on that reassessment of the US jobs market with the release of annual benchmark revisions in the year to March. In a recent speech, the Fed's Christopher Waller said the downward revision could be worth as much as 60k per month. And perhaps that's why the consensus for today's revision is around 700k for the annual figure. This time last year, the preliminary revision was -818k and it looks like we would need to see a bigger number than that to trigger a fresh leg lower in short-term US interest rates and the dollar."

Sterling advanced at to USD1.3573 on Tuesday morning, from USD1.3545 at the time of the London equities close on Monday. The euro climbed to USD1.1763 from USD1.1749, shaking off the French turmoil. Against the yen, the dollar declined to JPY147.14 from JPY147.60.

The yield on the 10-year US Treasury sat at 4.07%, widening from 4.05% at the time of the London equities close on Monday. The yield on the 30-year was unmoved at 4.71%.

Gold rose to USD3,649.13 an ounce from USD3,644.14 at the time of the London equities close on Monday. A barrel of Brent rose to USD66.73 from USD66.31.

In Tokyo, the Nikkei 225 ended down 0.4% but hit a record high in morning trade. The Shanghai Composite fell 0.5%, while the Hang Seng Index in Hong Kong added 1.1%. In Sydney, the S&P/ASX 200 fell 0.6%.

In London, Anglo American shares rose 7.9%, the best FTSE 100 performer, as it agreed a deal to combine with Teck Resources, creating a "critical minerals champion and top five global copper producer". The "merger of equals" will see Anglo issue 1.3301 ordinary shares to Teck shareholders, in exchange for each outstanding Teck class A common share and class B subordinate voting share.

The enlarged firm is expected to have stock market listings in London, Johannesburg, Toronto and New York, the latter through American depositary receipts.

Anglo Teck is expected to "offer more than 70% copper exposure".

Gamma Communications surged 11%. The provider of business-to-business communication services upped its outlook.

It said pretax profit for the first half of 2025 fell 10% to GBP43.5 million from GBP48.5 million. Revenue, however, improved 12% to GBP316.6 million from GBP282.5 million.

Gamma lifted its dividend by 14% to 7.4 pence per share from 6.5p.

For the full-year, it expects adjusted earnings before interest, tax, depreciation and amortisation in line with current market expectations, but adjusted earnings per share "slightly ahead".

Dunelm fell 4.7%. The homewares seller said annual revenue and profit edged up, and while trading in its new financial year has been pleasing, it is "yet to see signs of a sustained consumer recovery".

It reported pretax profit of GBP211.0 million for the year to June 28, rising 2.7% from GBP205.4 million. Revenue rose 3.8% to GBP1.77 billion from GBP1.71 billion.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Novartis to purchase Tourmaline Bio for USD1.4 billion

2025-09-09T07:37:46Z

New York-based biotech firm Tourmaline Bio Inc announced on Tuesday that it has agreed to be acquired by Basel, Switzerland-based pharmaceutical company Novartis AG.

The deal was valued at USD48.00 per share in cash at closing on Monday, representing a total equity value of about USD1.4 billion, the companies said.

The deal price represents a premium of 59% on Tourmaline's closing stock price on Monday, the last trading day before the announcement of the transaction.

The transaction has been unanimously approved by the boards of directors of both companies.

Tourmaline closed Monday's regular trading at USD30.18, up USD3.44 or 13%, giving it a market capitalisation of USD775.4 million.

Novartis shares were 0.3% lower at CHF101.98 each on Tuesday morning in Zurich.

As per the terms of the merger agreement, a subsidiary of Novartis will commence a tender offer to acquire all of Tourmaline's outstanding shares for a price of USD48.00 per share in cash at closing.

Completion of the transaction is expected in the fourth quarter of 2025, subject to the satisfaction or waiver of customary closing conditions.

source: dpa

Anglo American strikes deal to merge with Canada's Teck Resources

2025-09-09T07:03:28Z

Anglo American PLC and Teck Resources Ltd on Tuesday announced they have signed an agreement to combine their respective businesses in what they bill as a "merger of equals".

The two companies said in a statement on Tuesday the merger entity called Anglo Teck PLC, to be headquartered in Canada, will likely offer investors more than 70% exposure to copper. Diversified assets will also include iron ore and zinc.

Anglo American shareholders will own 62.4% and Teck shareholders to hold 37.6% of Anglo Teck PLC, immediately after completion of the merger.

As part of the deal, Anglo American will declare a special dividend of USD4.5 billion or USD4.19 per share to be paid to its shareholders before completion of the deal.

The deal is subject to regulatory approvals and is expected to complete in 12-18 months.

Boards of Anglo American and Teck unanimously support and recommend the transaction, the group said.

As part of its simplification plan, Anglo American focuses on iron ore and copper, while getting rid of platinum, coal, nickel and diamond assets. In July last year, Teck sold its steelmaking coal business to Glencore PLC.

Anglo Teck will have a primary listing on the London Stock Exchange. It will also be listed on the Johannesburg Stock Exchange, the Toronto Stock Exchange and the New York Stock Exchange.

Anglo Teck will have its global headquarters in Vancouver, Canada, where the chief executive officer, deputy CEO, and chief financial officer and a significant majority of the senior executive team will be based. Anglo Teck will retain corporate offices in London and Johannesburg.

Anglo American and Teck expect USD800 million in pre-tax recurring annual synergies from the combination of both companies.

Additional USD1.4 billion annual average underlying earnings before interest, taxes, depreciation and amortisation uplift expected from synergies between the adjacent Collahuasi and Quebrada Blanca operations from 2030-2049, which is expected to result in an increase of 175,000 tonnes of potential additional annual copper production.

"We are unlocking outstanding value both in the near and longer term – forming a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long," Anglo American Chief Executive Officer Duncan Wanblad said.

"This merger of two highly complementary portfolios will create a leading global critical minerals champion headquartered in Canada – a top five global copper producer with exceptional mining and processing assets located across Canada, the US, Latin America, and Southern Africa," Teck CEO Jonathan Price said.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

Taiwan vows to secure semiconductor supply chain amid global tensions

2025-09-09T06:50:19Z

Taiwan President Lai Ching-te on Tuesday pledged to strengthen cooperation with other democracies to build a resilient semiconductor supply chain amid rising geopolitical tensions.

"Taiwan is a trusted global partner and will, with our strong technological foundation and open spirit of cooperation, work hand-in-hand with international democratic partners," Lai told the Semicon Network Summit on Tuesday.

The summit is an international semiconductor forum linked to the 30th SEMICON Taiwan annual trade exhibition and conference, which is due to open on Wednesday.

Lai said that rapid advances in artificial intelligence, AI, have intensified global competition. "No single country can tackle these challenges alone," he stressed.

Lai highlighted Taiwan's growing overseas footprint in high-tech industries, including investments in the US, Europe, Japan and South-East Asia.

Over the past year, Taiwan has also opened trade and investment centres in Prague, Fukuoka and Texas to support businesses and strengthen supply chain ties.

Lai said Taiwan will invest over TWD100 billion, USD3.29 billion, to enhance AI infrastructure, advance key technologies, and expand smart applications.

Taiwan is also prioritizing research in quantum computing, silicon photonics and robotics, while developing materials and equipment to attract international firms to set up research & development centres in Taiwan.

SEMICON Taiwan showcases semiconductor technology, innovation and global collaboration. This year, organizers expect 1,200 companies from 56 countries.

source: dpa

LONDON BRIEFING: Anglo American strikes merger deal with Canada's Teck

2025-09-09T06:48:17Z

Anglo American announces a "merger of equals" with Teck Resources, Unite's buy of Empiric is moving closer, while Dunelm posts improved annual earnings.

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

----------

MARKETS

----------

FTSE 100: called down 0.1% at 9,215.94

GBP: higher at USD1.3570 (USD1.3545 at previous London equities close)

----------

ECONOMICS

----------

UK Prime Minister Keir Starmer will hold the first meeting of his new-look Cabinet on Tuesday as the race to replace Angela Rayner as deputy Labour leader gets under way. Starmer's official spokesman said his message to the "refreshed, reshaped" Cabinet would be to put delivery and growth "front and centre" in the second phase of government. The prime minister completed a major government reshuffle triggered by Rayner's resignation after she was found to have breached the ministerial code over her underpayment of stamp duty on a seaside flat earlier this year. But he now faces the prospect of weeks of manoeuvring for the deputy Labour leadership role she has vacated as the race to replace her is set to stretch past the Labour Party conference and into October.

----------

BROKER RATINGS

----------

Goldman Sachs raises Segro to 'buy' (neutral) - price target 730 (690) pence

----------

COMPANIES - FTSE 100

----------

Miner Anglo American reports it has agreed a deal to combine with Teck Resources, creating a "critical minerals champion and top five global copper producer". The "merger of equals" will see Anglo issue 1.3301 ordinary shares to Teck shareholders, in exchange for each outstanding Teck class A common share and class B subordinate voting share. "Subject to satisfaction of certain conditions, the Anglo American board also intends to declare a special dividend of USD4.5 billion (expected to be approximately USD4.19 per ordinary share) to be paid by Anglo American to its shareholders," it adds. "Immediately following completion of the merger, Anglo American and Teck shareholders will own approximately 62.4% and 37.6% respectively, of Anglo Teck PLC." The enlarged firm is expected to have stock market listings in London, Johannesburg, Toronto and New York, the latter through American depositary receipts. Anglo Teck is expected to "offer more than 70% copper exposure", the firms say. The deal is expected to be completed in the next 12-18 months. Anglo Teck will be headquartered in Canada and will be "committed to the heritage of both companies and their significant business leadership roles in Canada, South Africa and the UK". Anglo American Chief Executive Officer Duncan Wanblad says: "We are unlocking outstanding value both in the near and longer term - forming a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long. Having made such significant progress with Anglo American's portfolio transformation, which has already added substantial value for our shareholders over the past year, now is the optimal time to take this next strategic step to accelerate our growth." Anglo American last year was the object of takeover interest from miner BHP Group. BHP's was unsuccessful in its pursuit of a takeover. Teck Resources last year completed the sale of its remaining 77% interest in a steelmaking coal business to Glencore. Last month, Anglo American said it intended to seek damages after Peabody Energy's "wrongful termination" of its bid to acquire Anglo American's steelmaking coal assets in Australia. Peabody announced it dropped its plan to buy the steelmaking coal portfolio from Anglo American nearly five months after an "ignition event" at the Moranbah North mine on March 31. The enlarged Anglo Teck will "will remain committed to Anglo American's announced portfolio simplification". This includes work to separate De Beers and sealing "steelmaking coal and nickel disposals".

----------

Student accommodation developer Unite Group says its performance so far is in line with financial guidance, as its takeover of peer Empiric Student Property nears. Unite reports that 94% of rooms in its portfolio have been sold for the 2025/26 academic year. "This reflects a strong sales performance in the period since A-level results in mid-August (90% sold as at 12 August 2025) with sales to international and postgraduate students expected to continue through September. Our sales to date support rental growth of 4-5% and we continue to target occupancy of at least 97%," Unite adds. Unite says its financial performance in the year to date, and the outlook for the current academic year, supports its aim of achieving adjusted earnings per share between 47.5 pence and 48.25p for 2025. Unite last month agreed to a takeover of Empiric. Empiric shareholders will receive 0.085 of a new Unite share, plus 32 pence in cash, valuing each share in Empiric at roughly 94.2p for GBP634 million. Including dividends, this rises to a 107.5p per share valuation, or GBP723 million in total. Empiric shareholders will vote on the deal on October 6. FTSE 250-listed Empiric reports on Tuesday that occupancy for the 2025/26 academic year is 84%, a rise of 7 percentage points from 77% in mid-August. "With student application data remaining strong, the Empiric Group's sales pattern continuing to be ahead of the wider market and a reservation period that typically extends through the autumn until the start of the January term, Empiric continues to target an occupancy rate of 97% for the academic year," it adds.

----------

COMPANIES - FTSE 250

----------

Homewares retailer Dunelm Group says annual revenue and profit edged up, and while trading in its new financial year has been pleasing, it is "yet to see signs of a sustained consumer recovery". Dunelm reports pretax profit of GBP211.0 million for the year to June 28, rising 2.7% from GBP205.4 million. Revenue rises 3.8% to GBP1.77 billion from GBP1.71 billion. "In my final set of results at Dunelm, I'm pleased to report another successful year, marked by growth in sales and profits, increased market share and meaningful strategic progress. Having had the privilege of being a part of this awesome business, I want to thank our incredible colleagues, whose commitment and adaptability has driven our performance this year and throughout our history," Chief Executive Officer Nick Wilkinson says. "We've learned to navigate a volatile consumer environment, raising the bar on what really matters to our customers - delivering amazing value and helping them to create stylish, joyful and hard-working homes." Dunelm in July named Clodagh Moriarty as its new chief executive officer, with effect from October 1. Dunelm's final dividend has been raised 1.8% to 28.0p per share from 27.5p, bringing its total ordinary payout to 44.5p, up 2.3% from 43.5p. Total dividends, including 35p special payouts paid in each of the two financial years, are 1.3% higher at 79.5p from 78.5p. Looking ahead, Dunelm says it is "pleased with early trading in the new financial year, although yet to see signs of a sustained consumer recovery".

----------

OTHER COMPANIES

----------

National Express owner Mobico maintains its annual guidance after a "solid performance" in the first half of 2025. Mobico's pretax loss for the six months to June 30 narrows to GBP7.1 million from GBP29.3 million. Revenue increases 7.0% to GBP1.32 billion from GBP1.24 billion a year earlier. "Mobico has delivered a solid performance in the first half of 2025, with revenue growth supported by continuing positive passenger demand," Non-Executive Chair Phil White says. "Although our operating profit performance in the first half was mainly impacted by the under-performance of two contracts in WeDriveU, due to operational issues and a competitive trading environment in the UK, we remain confident of achieving our full year adjusted operating profit guidance of between GBP180 million and GBP195 million."

----------

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 to fall before payrolls revisions

2025-09-09T05:58:29Z

Stocks in Europe are set to open lower on Tuesday, with the Paris market on the decline amid French political chaos, though Tokyo's Nikkei 225 hit a record high.

In focus on Tuesday will be nonfarm payrolls benchmark revision data for the 12 months to March, publishing by the Bureau of Labor Statistics at 1500 BST.

"Expectations of a Fed interest rate cut may be fuelled today by the revision of the benchmark payroll figures. The Bloomberg consensus assumes that 700,000 fewer jobs were created in the labour market than originally thought. This is despite the figures already having been revised downwards recently, which led to the dismissal of the head of the statistics authority," Commerzbank analyst Michael Pfister commented.

IG says futures indicate the FTSE 100 to open 15.5 points lower, 0.2%, at 9,205.94 on Tuesday. The index of London large-caps closed up 13.23 points, 0.1%, at 9,221.44 at the start of the week.

The CAC 40 in Paris is called down 0.3% and Frankfurt's DAX 40 0.4% lower.

Following the collapse of France's centre-right government, President Emmanuel Macron is set to swiftly appoint a new prime minister, his office said.

The Elysee Palace said on Monday evening that Macron will meet with outgoing Prime Minister Francois Bayrou on Tuesday to accept his government's resignation.

"The president will appoint a new prime minister in the coming days," the statement added, noting that Macron has taken the outcome of the confidence vote into account.

Sterling advanced at to USD1.3577 on Tuesday morning, from USD1.3545 at the time of the London equities close on Monday. The euro climbed to USD1.1778 from USD1.1749, shaking off the French turmoil. Against the yen, the dollar declined to JPY146.93 from JPY147.60.

The pound was trading around a one-month-high, while the euro was at its best level since late-July.

The yield on the 10-year US Treasury sat at 4.06%, widening slightly from 4.05% at the time of the London equities close on Monday. The yield of the 30-year narrowed to 4.70% from 4.71%.

In Tokyo, the Nikkei 225 was down 0.2% but hit a record high in morning trade. The Shanghai Composite was down 0.9%, while the Hang Seng Index in Hong Kong fell 0.5%. In Sydney, the S&P/ASX 200 fell 0.6%.

In New York on Monday, the Dow Jones Industrial Average added 0.3%, the S&P 500 rose 0.2% and the Nasdaq Composite climbed 0.5%.

Gold faded to USD3,658.13 an ounce from USD3,644.14 at the time of the London equities close on Monday. A barrel of Brent edged up to USD66.38 from USD66.31.

Tuesday's local corporate calendar has full-year results from homewares retailer Dunelm and half-year results from transport operator Mobico and technology group Computacenter.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UK retail sales rise 3.1% in August as summer ends on a strong note

2025-09-08T23:03:44Z

UK retail sales rose in August, capping off a solid summer for the high street, according to data released Tuesday by the British Retail Consortium and KPMG.

Total retail sales increased 3.1% year-on-year in the four weeks to August 30, ahead of the 1.0% growth recorded a year before and above the 12-month average rise of 2.0%. Food sales rose 4.7%, while non-food sales climbed 1.8%, both outperforming their respective annual trends.

Online non-food sales rose 2.7% in August, compared with growth of 1.5% in August 2024, while in-store non-food sales increased 1.3%, rebounding from a 2.8% decline a year earlier.

BRC Chief Executive Helen Dickinson said hot weather and an interest rate cut supported trading, with computing and gaming categories performing well. Furniture sales rose for a second month, but school uniform and footwear purchases lagged amid rising uptake of second-hand goods.

"Despite a better summer, retailers approach the 'golden quarter' with caution," Dickinson said, citing uncertainty around the timing of the autumn Budget and speculation over possible tax rises.

KPMG's UK Head of Consumer, Retail & Leisure Linda Ellett said the housing market recovery had helped drive demand for home appliances, accessories, and garden goods. Mobile phone and computing purchases also benefited from back-to-school spending.

IGD Chief Executive Sarah Bradbury warned that food price inflation hit 4.9% in July, pushing shopper confidence to negative territory. Still, interest rate cuts and easing mortgage costs may help offset some of the financial strain as winter approaches.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

NEW YORK MARKET CLOSE: Shares higher ahead of inflation data this week

2025-09-08T20:31:35Z

Shares ended green in New York on Monday, the Nasdaq closing at a record high, as investors look toward key US inflation prints out later this week.

This week sees US producer price inflation on Wednesday and consumer price inflation and initial jobless claims on Thursday. The prints follow a weaker than expected jobs report on Friday and comes ahead of the Federal Open Market Committee rate decision on September 17.

US President Donald Trump's FOMC nominee, Council of Economic Advisers head Stephen Miran, will face the Senate banking committee on Wednesday.

Miran is seeking to fill the seat vacated by former Governor Adriana Kugler.

If approved by the committee, Miran could be confirmed by the wider Senate in time to have a vote at next week's meeting.

Japan's Prime Minister Shigeru Ishiba said on Sunday he would step down after less than a year in power, during which he lost his majority in both houses of parliament.

The announcement means fresh uncertainty for the world's fourth-largest economy as it battles rising food prices and deals with the fallout of US tariffs on its vital auto sector.

"Now that negotiations on US tariff measures have reached a conclusion, I believe this is the appropriate moment," Ishiba told a news conference.

In France on Monday, parliament ousted the government of Prime Minister Francois Bayrou after just nine months in office.

In a vote in the National Assembly, 364 deputies voted that they had no confidence in the government while just 194 gave it their confidence.

Bayrou will submit his resignation to President Emmanuel Macron on Tuesday.

Late Monday, the pound traded at USD1.3550, up from USD1.3503 at the New York close on Friday. The euro rose to USD1.1762 from USD1.1714. Against the yen, the dollar was at JPY147.43, down from JPY147.46 on Friday.

US households grew slightly more concerned about short-term inflation in August, while confidence in the job market deteriorated significantly, the Federal Reserve Bank of New York said Monday.

The August 2025 survey of consumer expectations showed that one-year-ahead inflation expectations edged up to 3.2%, from 3.1% in July. However, three- and five-year-ahead expectations held steady at 3.0% and 2.9%, respectively, indicating longer-term views remain anchored.

The outlook for employment darkened notably, with the mean perceived probability of finding a job after a job loss plunging to around 45%, the lowest since the data series began in 2013. The decline was broad-based, but sharpest among respondents with no more than a high school education.

Expectations around job loss and unemployment also worsened. The probability of losing one's job rose slightly to 15%, while expectations that the unemployment rate will rise over the next year increased to 39%, up from 37% in July.

Earnings expectations softened, with median one-year-ahead wage growth slipping to 2.5%, from 2.6% the previous month.

Household financial outlooks remained mixed, while credit access perceptions improved modestly.

On the corporate front, Eli Lilly said it received positive topline results from its clinical trial of a therapy for patients with chronic lymphocytic leukemia or small lymphocytic lymphoma.

The Bruin CLL-313 clinical trial evaluated Jaypirca, or pirtobrutinib, against chemoimmunotherapy in certain treatment-naive CLL/SLL patients.

The study met its primary endpoint in demonstrating a highly statistically significant and clinically meaningful improvement in progression-free survival when compared to chemoimmunotherapy.

Eli Lilly called the results "one of the most compelling effect sizes ever observed for a single agent BTK inhibitor in a front-line CLL study."

Eli Lilly ended up 1.6%.

Regeneron reported positive results from two phase 3 trials evaluating investigational antibody-based treatments for cat and birch allergies.

In the cat allergy trial, participants receiving REGN1908 and REGN1909, antibodies targeting the dominant cat allergen FelD1, showed a 52% reduction in ocular itch, 39% less conjunctival redness, and a 44% improvement in skin prick testing compared to a placebo.

A separate trial of REGN5713 and REGN5715 for birch allergy, targeting the BetV1 allergen, demonstrated similar results. Itch fell by 51%, redness by 46%, and skin reactivity by 44%.

Additional confirmatory phase 3 studies are expected to begin later this year and into the first half of 2026.

Regeneron fell 2.6%.

Pfizer and BioNTech announced positive topline results from its ongoing phase 3 trial evaluating their Covid-19 vaccine, Comirnaty.

The trial was evaluating the LP.8.1-adapted monovalent Covid-19 vaccine formula for use in adults aged 65 and over, as well as in individuals aged between 5 and 64 with at least one underlying condition which leaves them at high risk for severe outcomes from Covid-19.

Preliminary data showed a "robust increase" in neutralising antibodies targeting the LP.8.1 sublineage of SARS-CoV-2 after vaccination. This reinforced pre-clinical data that supported the firms' recent receipt of approval from the US Food & Drug Administration for the vaccine.

Pfizer closed down 1.4%. BioNTech fell 8.7%.

The US 10-year Treasury was at 4.05% late Monday, down from 4.09% on Friday. The yield on the US 30-year Treasury was at 4.70%, narrowed from 4.77%.

Gold was quoted at USD3,635.56 an ounce late on Monday, up from USD3,595.38 on Friday.

Brent was quoted at USD66.17 a barrel on Monday, up from USD65.65 on Friday. West Texas Intermediate fell to USD61.75 from USD62.03.

In Europe, the FTSE 100 firmed 0.1% in London. The CAC 40 rose 0.8% in Paris. The DAX 40 in Frankfurt gained 0.9% in Frankfurt.

In Asia, the Nikkei 225 in Tokyo gained 1.5%. In China, the Shanghai Composite rose 0.4%, while the Hang Seng Index closed up 0.9% in Hong Kong. The S&P/ASX 200 fell 0.2% in Sydney.

Tuesday's corporate calendar sees third quarter results from Synopsys.

The global economic diary has the US Redbook index. The National People's Congress Standing Committee meets in China.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

French government ousted in parliament confidence vote: speaker

2025-09-08T17:14:06Z

The French parliament ousted the government of Prime Minister Francois Bayrou on Monday after just nine months in office, with his administration losing the confidence vote he called by a large margin.

In a vote in the National Assembly, 364 deputies voted that they had no confidence in the government while just 194 gave it their confidence. "In line with article 50 of the constitution, the prime minister must submit the resignation of his government," said speaker Yael Braun-Pivet.

A person close to Bayrou, who asked not to be identified, told AFP that the premier would submit his resignation to President Emmanuel Macron on Tuesday morning.

source: AFP

LONDON MARKET CLOSE: FTSE 100 closes higher as gold and oil climb

2025-09-08T16:01:33Z

The FTSE 100 made steady progress on Monday, despite underperforming European peers, supported by gains in the price of gold and oil.

The FTSE 100 index closed up 13.23 points, 0.1%, at 9,221.14. The FTSE 250 ended 108.91 points higher, 0.5%, at 21,684.45 and the AIM All-Share finished up 4.10 points, 0.5%, at 769.73.

The Cboe UK 100 ended up 0.2% at 925.55, the Cboe UK 250 closed 0.7% higher at 18,988.66 and the Cboe Small Companies finished up 0.8% at 17,191.40.

In Europe, the CAC 40 in Paris ended up 0.9%, before a no-confidence vote which could see France's Prime Minister Francois Bayrou step down, while the DAX 40 in Frankfurt closed 0.9% higher.

In France, opposition parties across the board have made it clear they will vote against Bayrou's minority government, making it highly improbable that he will get enough backing to survive: he needs a majority of the 577 MPs in the National Assembly.

Bayrou himself, who according to officials has invited his ministers for farewell drinks Monday evening, appears to acknowledge that his time has run out.

In a bitter remark on Sunday, he criticised political parties that he said "hate each other" and yet were joining forces "to bring down the government".

In New York, at the time of the London equities market close, the Dow Jones Industrial Average was up 0.1%, the S&P 500 rose 0.3%, while the Nasdaq Composite climbed 0.7%.

Gold jumped to USD3,644.14 an ounce against USD3,589.49 on Friday.

Stephen Innes of SPI Asset Management said gold's gains are the "logical crescendo of a market where rate-cut wagers, political meddling, and creeping stagflation fears are converging into a perfect tailwind for bullion."

Innes pointed out that the yellow metal has gained 9% in the past three weeks and nearly 40% in the year to date.

"The real rate profile is heading negative again, and gold thrives when bonds can't keep pace with inflation," Innes added.

But he noted there was more to gold's gains than just "monetary arithmetic".

"The political backdrop has turned gold into the ultimate protest asset. Trump's tariff salvos have already juiced stagflation chatter, and his courtroom push to fire Fed Governor Lisa Cook is cutting straight to the heart of central bank independence.

"Traders know this script - when faith in the Fed wobbles, gold becomes the one institution that doesn't default, dilute, or lie," Innes said.

The pound rose to USD1.3545 late on Monday afternoon in London, compared to USD1.3527 at the equities close on Friday. The euro edged up to USD1.1749, against USD1.1743. Against the yen, the dollar was trading higher at JPY147.60 compared to JPY146.94.

The yield on the US 10-year Treasury was quoted at 4.05%, narrowed from 4.07% on Friday. The yield on the US 30-year Treasury was quoted at 4.71%, trimmed from 4.79%.

On the FTSE 100, Marks & Spencer rose 2.9% as Citi upgraded it to 'buy' from 'neutral'.

With the shares 18% below "pre-cyber levels, we see an attractive entry point for a business with good underlying momentum," Citi said in a research note, noting April's cyber attack.

The broker thinks the retailer is gaining share with younger customers in Fashion, and seeing a larger mix of 'bigger baskets' in Food.

Entain rose 1.2%, amid reports that it is looking to sell its Australian venues business, comprising market-leading pub poker provider Australian Poker League and a booming trivia arm.

The Australian Financial Review said the gambling operator, which owns Ladbrokes and Coral, has issued preliminary sales documents to private equity firms with the goal of offloading a business it views as non-core.

Babcock International Group climbed 1.7%, after a well-received investor presentation on Friday.

The "Marine Investor Day gave us confidence that there is upside risk to the mid-single-digit growth guidance for the division and a clear pathway to the 9% [plus] margin," said Jefferies analyst Chloe Lemarie.

But Phoenix Group fell 7.6%, after mixed first-half results.

The London-based retirement savings firm reported better-than-expected operating profit, but this was offset by a larger-than-forecast drop in IFRS shareholders' equity - an area of investor focus for Phoenix.

Meanwhile, ingredients maker Treatt Group leapt 18%, after accepting a GBP156.6 million offer from Natara Global Ltd.

Natara makes "aroma ingredients" for the flavour and fragrance sectors. It is based in Hartlepool, England and is majority-owned by the UK and European private equity firm Exponent.

FTSE 100 index heavyweights BP rose 0.7% and Shell firmed 0.4% as the oil price climbed.

A barrel of Brent traded at USD66.31 late Monday afternoon, up from USD65.14 on Friday.

The oil price rose after eight key members of the Opec+ alliance said on Sunday that they have decided to increase production by 137,000 barrels per day from next month. Those countries had already increased production by 2.2 million bpd in recent months.

The energy alliance raised output by around 550,000 per day in both August and September this year.

The biggest risers on the FTSE 100 were Marks & Spencer, up 9.90 pence at 352.10p, Fresnillo, up 60.00p at 2,178.00p, Croda International, up 60.00p at 2,525.00p, Howden Joinery, up 19.00p at 855.50p and ICG, up 42.00p at 2,192.00p.

The biggest fallers on the FTSE 100 were Phoenix Group, down 51.00p at 619.00p, Diageo, down 74.50p at 1,959.50p, Airtel Africa, down 5.60p at 215.60p, Haleon, down 6.70p at 359.00p and Unilever, down 73.00p at 4,696.00p.

Tuesday's local corporate calendar has full-year results from homewares retailer Dunelm and half-year results from transport operator Mobico and technology group Computacenter.

The global economic calendar on Tuesday has French industrial production data and the British Retail Consortium retail sales monitor.

Later in the week, US inflation figures and the ECB interest rate decision, both on Thursday, will be closely watched.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

US job market fears rise as inflation expectations inch higher

2025-09-08T15:30:17Z

US households grew slightly more concerned about short-term inflation in August, while confidence in the job market deteriorated significantly, according to a Federal Reserve Bank of New York survey published Monday.

Meanwhile, the outlook for employment darkened notably. The mean perceived probability of finding a job after a job loss plunged to around 45%, the lowest since the data series began in 2013. The decline was broad-based, but sharpest among respondents with no more than a high school education.

Earnings expectations softened, with median one-year-ahead wage growth slipping to 2.5%, from 2.6% the previous month.

Household financial outlooks remained mixed. Median household income growth expectations were unchanged at 2.9%, while spending growth expectations ticked up to 5.0%, near the upper end of the recent range. However, a growing share of respondents said their financial situation had worsened over the past year, and expectations for the future became more polarised.

Credit access perceptions improved modestly, though fewer households expect borrowing to become easier in the year ahead. The perceived chance of missing a debt payment rose to 13%, from 12% in July, still below the 12-month average.

Elsewhere, expected growth in government debt declined, while more households anticipated interest rates on savings accounts to rise, and the outlook for stock prices improved slightly.

The monthly survey, conducted from August 1 to August 31, reflects responses from a rotating panel of approximately 1,300 US household heads.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

FOREX: Dollar slides after jobs data while yen weakens as PM to leave

2025-09-08T13:49:09Z

The dollar was weaker in the wake of Friday's softer US labour market reading, though the yen struggled on Monday amid political uncertainty in Japan.

"The dollar is not quite the weakest performing G10 currency on a one-day view. The JPY has taken that accolade on the back of speculation that the next leader of the LDP party could be less welcoming of the BoJ’s rate hiking cycle," analysts at Rabobank commented.

"That said, the greenback has softened on the back of Friday’s soft US payrolls data and the related rise in speculation that the Fed could be minded to cut interest rates up to 50 bps at the Sept 16-17 policy meeting."

Against the dollar, the euro rose to USD1.1754 on Monday from USD1.1724 on Friday. Sterling traded at USD1.3553, rising from USD1.3506.

According to the US Bureau of Labor Statistics, nonfarm payroll employment increased by 22,000 in August, easing from 79,000 in July. The July reading was upwardly revised from 73,000; however, June's reading was knocked to 14,000 from 27,000.

The latest data fell short of the FXStreet-cited consensus of 75,000.

Analysts at Barclays commented: "Following disappointing job data, we now expect the Fed to deliver back-to-back 25bp cuts in September, October and December this year, even if CPI accelerates next week. Further cuts are forecast for March and June 2026, lowering the terminal rate to 3.00-3.25%."

Versus the Australian dollar, the buck fell to AUD1.5154 on Monday from AUD1.5234 on Friday. Versus its Canadian counterpart, it faded to CAD1.3795 from CAD1.3814.

Versus the Swiss franc, the greenback declined to CHF0.7933 from CHF0.8008.

Against the yen, however, the dollar was largely unmoved at JPY147.55 against JPY147.53.

Japan's Prime Minister Shigeru Ishiba said on Sunday he would step down after less than a year in power, during which he lost his majority in both houses of parliament.

The announcement means fresh uncertainty for the world's fourth-largest economy as it battles rising food prices and deals with the fallout of US tariffs on its vital auto sector.

"Now that negotiations on US tariff measures have reached a conclusion, I believe this is the appropriate moment," Ishiba told a news conference.

"I have decided to step aside and make way for the next generation," he said.

Versus the euro, sterling rose to EUR1.1526 from EUR1.1516 amid political uncertainty in France.

"The Japanese yen is the only G10 currency that is weaker on heels of the resignation of Prime Minister Ishida who saw the surveys that showed a majority of his party wanted a leadership contest this year as a vote of no-confidence," Bannockburn analyst Marc Chandler commented.

"The market continues to be overshadowed by French political machinations. The government does not appear to have the support to win the confidence vote. President Macron will likely choose another prime minister, but he may lose conservative Republican ministers if he appoints a Socialist. Fitch reviews France's AA-credit rating with a negative outlook at the end of the week. Without fiscal progress, the risks are of a downgrade."

The Dollar Index faded to 97.52 points from 97.64.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

SpaceX acquires spectrum licenses from EchoStar for USD17 billion

2025-09-08T12:53:43Z

Elon Musk's SpaceX has bought USD17 billion worth of spectrum licenses from US operator EchoStar, as part of its plan to strengthen Starlink network operations, the two companies announced in a statement Monday.

The deal will enable EchoStar's Boost Mobile subscribers to access SpaceX's Starlink Direct to Cell service, the statement said, without the need for an additional dedicated terminal.

source: AFP

COMMODITIES: Gold breaks record on Fed hopes; oil up after Opec+ move

2025-09-08T11:53:18Z

Gold smashed a new record on Monday as investors continued to digest a US jobs report that essentially cemented the case for a potential interest rate cut in the US next week.

Spot gold was quoted at USD3,617.77 an ounce on Monday afternoon in London, up from USD3,550.07 at the same time on Friday. Silver rose to USD41.23 an ounce from USD40.75.

The yellow metal rallied to USD3,600 an ounce for the first time in history on Friday last week, before on Monday hitting USD3,622, an all-time high record. The catalyst for this remarkable run is the dismal US hiring report.

Nonfarm payroll employment increased by 22,000 in August, easing from 79,000 in July, the Bureau of Labor Statistics showed on Friday. The July reading was upwardly revised from 73,000, however, June's reading was knocked to 14,000 from 27,000. The latest data fell short of the FXStreet-cited consensus of 75,000.

The jobless rate edged up to 4.3% in August, as expected, from 4.2% in July.

"Gold has once again stormed higher, smashing through USD3,600 an ounce, leaving traders squinting at their screens as if the tape were glitching," Stephen Innes of SPI Asset Management said.

"But this is no bad tick - it's the logical crescendo of a market where rate-cut wagers, political meddling, and creeping stagflation fears are converging into a perfect tailwind for bullion," Innes noted.

Bullion, he added, has gained 9% in the past three weeks and nearly 40% year-to-date.

The weaker dollar and the fall in US Treasury bond yields, which both tend to have an inverse correlation with gold, gave the precious metal further upward momentum.

"Friday's soggy labour print was the accelerant - weak enough to cement the view that Powell's hand is forced into action," SPI Asset Management's Innes said.

Markets, he said, now expect the US Federal Reserve to cut interest rates by 25 basis points on Wednesday next week.

In other commodities, Brent crude oil was priced at USD66.82 a barrel on Monday, slightly up from USD66.48 on Friday. West Texas Intermediate firmed to USD63.16 a barrel, compared to USD62.97.

The oil market rose after eight key members of the Opec+ alliance said Sunday they have decided to increase production by 137,000 barrels per day from next month. Those countries had already increased production by 2.2 million bpd in recent months.

The energy alliance raised output by around 550,000 per day in both August and September this year.

A restrained output hike from Opec+ for October has further helped oil prices, ING analysts Warren Patterson and Ewa Manthey said.

In addition, oil climbed after reports that the EU is exploring new sanctions on Russian banks and energy companies as part of its latest measures to end the war in Ukraine, Patterson and Manthey said.

In other metals, platinum was priced at USD1,397.53 an ounce on Monday, up from USD1,384.96 on Friday. Palladium was quoted at USD1,135.46 an ounce, up from USD1,125.51.

In base metals, the copper price rose to USD9,948.00 per tonne from USD9,890.00. Aluminium climbed to USD2,613.00 from USD2,602.00.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: Stocks shake off political uncertainty

2025-09-08T11:11:58Z

European equities traded higher on Monday, with Federal Reserve rate cut bets supporting stocks, but lingering political uncertainty kept a lid on major currencies against the dollar.

The FTSE 100 index climbed 14.32 points, 0.2%, at 9,222.53. The FTSE 250 was up 141.48 points, 0.7%, at 21,717.02, and the AIM All-Share added 6.79 points, 0.9%, at 772.42.

The Cboe UK 100 was up 0.1% at 924.72, the Cboe UK 250 was up 0.9% at 19,029.51, and the Cboe Small Companies was 0.4% higher at 17,120.97.

In Paris, the CAC 40 was up 0.5%, before a no-confidence vote which could see France's Prime Minister Francois Bayrou step down. In Frankfurt, the DAX 40 was up 0.6%.

Opposition parties across the board have made it clear they will vote against his minority government, making it highly improbable he will get enough backing to survive – he needs a majority of the 577 MPs in the National Assembly.

Bayrou himself, who according to officials has invited his ministers for farewell drinks Monday evening, appears to acknowledge that his time has run out.

In a bitter remark on Sunday, he criticised political parties that he said "hate each other" but yet were joining forces "to bring down the government".

The pound traded at USD1.3530 early Monday afternoon, up slightly from USD1.3527 late Friday. The euro bought USD1.1726, falling from USD1.1743. Against the yen, the buck rose to JPY147.80 from JPY146.94 at the time of the London equities close on Friday. Japan's PM Shigeru Ishiba said on Sunday he would step down.

In the UK, eyes remain on Westminster after UK PM Keir Starmer last week completed a reshuffle of his senior ministers after Angela Rayner resigned from the government for breaching the ministerial code.

Analysts at NatWest commented: "This season's most hotly anticipated date – the autumn budget – has been set for Wednesday 26th of November. And with a week being a long time in politics, the eleven-week run-in could feel like an eternity for a chancellor trying to assemble a package of measures capable of addressing Britain's economic and fiscal challenges. The Office for Budget Responsibility's forecasts will help quantify one of those challenges – the gap to the fiscal rules. And analysts currently believe the headroom has worsened to the tune of roughly GBP20 billion.

"So expect plenty of speculation over likely tax rises. Alongside the government's first major front bench reshuffle, there's plenty for Rachel Reeves to reflect on as she lays the budget groundwork – with modest consumer spending growth and relative housing market stability contrasting with stubborn price pressures and questions over the employment outlook."

The yield on the 10-year US Treasury widened to 4.09% midday Monday, from 4.07% at the time of the London equities close Friday. The yield on the 30-year eased to 4.78% from 4.79%.

SPI Asset Management analyst Stephen Innes commented: "Markets opened Friday brimming with optimism, clinking glasses to the prospect of Fed rate cuts, but the celebration turned quickly into a hangover by day's end. What began as a textbook 'bad news is good news' rally—where weak jobs data implies easier policy—soon soured into a selloff, reminding traders that rate cuts are not a free lunch but often a byproduct of economic pain. This is the uncomfortable paradox: cuts may soothe the fever, but they rarely arrive without confirming the patient is already sick.

"The Fed now sits in a vice. With its September 17th decision looming, it must weigh whether to deliver the soft landing balm of a 25bp trim or reach for the heavier 50bp cut—medicine that would soothe markets in the short run but all but admit the economy is deteriorating faster than policymakers expected."

In New York, the Dow Jones Industrial Average is called to open 0.2% higher, the S&P 500 up 0.3% and the Nasdaq Composite up 0.4%.

A barrel of Brent rose to USD66.80 from USD65.14. Gold fetched at USD3,609.71 an ounce, up from USD3,616.10. Gold topped USD3,622 an ounce, another record high.

In London, Phoenix Group slumped 7.0%. It said it plans to change its name to Standard Life PLC next year after reporting better than expected operating profit but total cash generation below market hopes.

The London-based retirement savings firm swung to a pretax profit of GBP8 million in the first half of 2025, from a loss of GBP669 million a year prior.

Total income declined 30% to GBP8.60 billion from GBP12.33 billion. Adjusted operating profit shot up 25% to GBP451 million from GBP360 million, while operating cash generation improved 9% to GBP705 million from GBP647 million. Total cash generation declined 17% to GBP784 million from GBP950 million.

Panmure Liberum analyst Abid Hussain said adjusted operating profit was 3% ahead of expectations, but total cash generation was 3% below consensus.

PRS REIT rose 8.0%. It confirmed the offer from Long Harbour is still live as it said Kohlberg Kravis Roberts & Co is participating in its strategic review and formal sale process.

The real estate investment trust said KKR has not made an offer for the company, adding that there cannot be any certainty it will, nor of any terms.

PRS REIT also confirmed that London-based real estate investment management firm Long Harbour has not withdrawn its possible offer.

Back in June, the trust said it has been sent a non-binding proposal regarding a potential offer.

Also getting an M&A boost, Treatt jumped 17%. The extracts and ingredients manufacturer has agreed to a GBP156.6 million takeover from Natara. Natara is a maker of "aroma ingredients products" and serves the flavour and fragrance industry and its majority owner is Exponent, a UK and European private equity firm.

Natara will pay 260p cash per Treatt share, a 16% premium to its closing price of 224p on Friday.

Elsewhere in the M&A space, IQE fell 8.4%. The supplier of advanced wafer products for the semiconductor industry, says it is widening its strategic review to "incorporate the potential sale of the company". IQE said it is now "seeking buyers".

The firm started a strategic review in November.

"While the strategic review process remains ongoing, IQE is progressing negotiations with multiple parties for the sale of the group's Taiwan operations. Should the sale of Taiwan be concluded, it is expected that the proceeds from such sale will be used to fully repay the group's revolving credit facility with HSBC Bank and convertible loan notes issued in March 2025, as well as providing IQE with cash to invest in its core operations," IQE added.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON MARKET OPEN: Shares rise despite political nerves, gold shines

2025-09-08T08:07:40Z

Stock prices in Europe opened higher on Monday, shaking off weak US jobs data and political uncertainty.

Japan's prime minister announced he will step down and the future of his French counterpart hangs in the balance also. In the UK, eyes remain on Westminster after UK PM Keir Starmer last week completed a reshuffle of his senior ministers after Angela Rayner resigned from the government for breaching the ministerial code.

The FTSE 100 index edged up 7.21 points, 0.1%, at 9,215.42. The FTSE 250 was up 68.90 points, 0.3%, at 21,644.44, and the AIM All-Share was up 4.89 points, 0.6%, at 770.52.

The Cboe UK 100 was up 0.1% at 924.12, the Cboe UK 250 was up 0.5% at 18,956.42, and the Cboe Small Companies was 0.2% higher at 17,087.85.

In Paris, the CAC 40 was up 0.3%, before a no-confidence vote which could see France's Prime Minister Francois Bayrou step down. In Frankfurt, the DAX 40 was up 0.8%.

The pound traded at USD1.3523 early Monday, down from USD1.3527 late Friday. The euro bought USD1.1731, falling from USD1.1743.

Against the yen, the buck rose to JPY147.57 early Monday from JPY146.94 at the time of the London equities close on Friday. The yen faded after Japan's PM Shigeru Ishiba said on Sunday he would step down.

ING believes the political nerves in France and Japan are "limiting the euro's and yen's chance to rally against the softer dollar".

In Tokyo, the Nikkei 225 ended up 1.5% on Monday. Sydney's S&P/ASX 200 was down 0.2%. The Shanghai Composite was up 0.4%, while the Hang Seng Index in Hong Kong added 0.9%.

In New York on Friday, the Dow Jones Industrial Average ended down 0.5%, the S&P 500 lost 0.3% and the Nasdaq Composite ended slightly lower.

The yield on the 10-year US Treasury widened to 4.08% early Monday, from 4.07% at the time of the London equities close Friday. The yield on the 30-year eased to 4.77% from 4.79%.

According to the Bureau of Labor Statistics, US nonfarm payroll employment increased by 22,000 in August, easing from 79,000 in July.

The July reading was upwardly revised from 73,000, however, June's reading was knocked to 14,000 from 27,000.

The latest data fell short of the FXStreet cited consensus of 75,000.

"In short, we've gone from a jobs market that was last year going gangbusters, to one that is now undeniably stalling. Market participants reacted to the data in the dovish manner that one would expect, as front-end Treasuries rallied hard, the dollar rolled over against all peers, and gold rallied to fresh record highs. Initially, equities also advanced, benefitting from that rally at the front-end, though gains fizzled out as trade progressed in a realisation that, perhaps, bad news actually is bad news," Pepperstone analyst Michael Brown commented.

"The jobs report, to be clear, shan't change the calculus for the September FOMC meeting, where a 25bp cut remains the base case, though it could result in a handful more policymakers dissenting in favour of a larger 50bp move. The data does, however, raise the potential for consecutive, as opposed to gradual, cuts from the Fed through year-end."

Elsewhere on the central banking front, the European Central Bank announces a rate decision on Thursday. It is expected to hold.

Analysts at Lloyds Bank commented: "The confidence vote in the French government (Monday) means the start of the week is set to be busier than usual for markets. Fitch's scheduled review of the French sovereign rating is due at the end of the week too (Friday). EU President Von der Leyen's State of the Union address (Wednesday) may make reference to the fallout, and it could be a topic for the press conference following the September ECB Governing Council meeting (Thursday), depending on the political and market ripples."

A barrel of Brent rose to USD66.42 from USD65.14. Gold fetched at USD3,609.71 an ounce, down slightly from USD3,589.49. Gold topped USD3,613 an ounce, another record high.

XTB analyst Kathleen Brooks commented: "The gold price was a clear winner last week, and it rose by 4%.

"One of the reasons why the bond market may not be worried about inflation is due to the oil price. Over the weekend, Opec+ confirmed that they would add to their scheduled production increase next month. This move was expected by the market and the price of WTI oil fell 4% last week, while the price of Brent dipped by 3.8%. The Brent crude price is struggling to gain traction above USD65 per barrel, and momentum is to the downside. A break below USD65 per barrel would open the door to a deeper decline, back to the lows of May around USD60 per barrel."

In London, Phoenix Group fell 4.6%. It said it plans to change its name to Standard Life PLC next year after reporting better than expected operating profit but total cash generation below market hopes.

The London-based retirement savings firm swung to a pretax profit of GBP8 million in the first half of 2025, from a loss of GBP669 million a year prior.

Panmure Liberum analyst Abid Hussain said adjusted operating profit was 3% ahead of expectations, but total cash generation was 3% below consensus.

Marks & Spencer added 1.9%. Citi lifted the retailer to 'buy'.

Treatt jumped 17%. The extracts and ingredients manufacturer has agreed to a GBP156.6 million takeover from Natara. Natara is a maker of "aroma ingredients products" and serves the flavour and fragrance industry and its majority owner is Exponent, a UK and European private equity firm. Both Natara and Exponent "have been following Treatt for some time and have long admired the business and its strong heritage", a statement said.

Natara will pay 260p cash per Treatt share, a 16% premium to its closing price of 224p on Friday. The sum values the entire issued and to be issued ordinary share capital of Treatt at approximately GBP156.6 million.

"While the Treatt directors recognise that improvements in market dynamics and Treatt's execution of its evolving strategy should support a recovery in Treatt's operating and financial performance, they also acknowledge that this could take some time and remains subject to significant uncertainty as to the external factors affecting Treatt's business and the delivery of internal systems and organisational improvements," a statement said.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Phoenix Group to rebrand as Standard Life after mixed first half

2025-09-08T07:51:31Z

Phoenix Group Holdings PLC on Monday said it plans to change its name to Standard Life PLC next year after reporting better than expected operating profit but total cash generation below market hopes.

The London-based retirement savings firm swung to a pretax profit of GBP8 million in the first half of 2025, from a loss of GBP669 million a year prior.

Panmure Liberum analyst Abid Hussain said adjusted operating profit was 3% ahead of expectations, but total cash generation was 3% below consensus.

In response, shares in Phoenix Group fell 5.0% to 636.35 pence each in London on Monday morning. It was the biggest faller in the FTSE 100, which was up 0.1%.

"This is a strong first half performance with progress against all key financial metrics we use to drive the business, demonstrating continued momentum towards our 2026 targets," said Chief Executive Officer Andy Briggs commented.

The shareholder capital coverage ratio improved to 175% from 172%, the solvency II surplus climbed 2.9% to GBP3.6 billion from GBP3.5 billion.

Phoenix lifted its interim dividend by 2.6% to 27.35 pence per share from 26.65p.

In addition, the firm announced it plans to change its name to Standard Life PLC in March 2026.

This brings "our most trusted brand to the forefront and demonstrates our commitment to helping customers secure a better retirement," CEO Briggs said.

Phoenix bought the Standard Life brand from what is now Aberdeen Group PLC - and which previously had been called Standard Life Aberdeen - back in 2021. The brand traces its history back to 1825 in Edinburgh.

Looking ahead, Phoenix expects mid-single digit growth in operating cash generation for the full-year. Further afield, it predicts GBP1.1 billion in adjusted operating profit in 2026.

The company is targeting GBP160 million of cost savings in full year 2025, up from GBP125 million previously indicated.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

German industrial output beats forecast in July; trade surplus fades

2025-09-08T07:02:09Z

German industrial production was stronger than expected in July, numbers on Monday showed, though its trade surplus was lower than forecast.

According to Destatis, industrial output rose 1.3% in July from June, topping the FactSet cited consensus of 1.1%. In June, output fell 0.1% from May.

On-year industrial production was 1.5% higher in July, improving from a 1.8% fall in June.

"The less volatile three-month on three-month comparison showed that production was 0.1% lower in the period from May 2025 to July 2025 than in the previous three months," Destatis added.

"The positive development of production in July 2025 was mainly attributable to the increase seen in the manufacture of machinery and equipment."

Separate figures from Destatis showed the German trade surplus faded to EUR14.7 billion in July, from EUR15.4 billion in June. According to consensus cited by FactSet, the trade surplus had been expected to remain around June's level.

Exports amounted to EUR130.2 billion, down 0.6% on-month but up 1.4% on-year. Imports totalled EUR115.4 billion, fading 0.1% monthly but up 4.3% annually.

"Most German exports in July 2025 went to the United States. After seasonal and calendar adjustment, exports of goods to the US were down 7.9% compared with June 2025, with the value of exports to the US falling to EUR11.1 billion. This was the fourth month-on-month decrease in succession and the lowest value since December 2021 (EUR11.0 billion)," Destatis added.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON BRIEFING: Phoenix Group to change name to Standard Life

2025-09-08T06:48:01Z

Phoenix Group unveils a name change, bringing the Standard Life brand back in the forefront, Domino's Pizza announces a new brand and Vistry reports a government tie-up.

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

----------

MARKETS

----------

FTSE 100: called up 0.3% at 9,237.71

GBP: lower at USD1.3509 (USD1.3527 at previous London equities close)

----------

ECONOMICS

----------

London Underground lines were suspended on Monday as workers went on strike, causing travel disruption for commuters. Members of the Rail, Maritime & Transport union including drivers, signallers and maintenance workers launched a series of strikes over pay and conditions. The action started on Sunday but the biggest impact will be between Monday and Friday. Transport for London warned there will be few or no services between Monday and Thursday. Picket lines were mounted outside Tube stations on Monday. There will also be no Docklands Light Railway services on Tuesday and Thursday because of a strike by RMT members in a separate pay dispute. TfL has offered a 3.4% pay rise which it described as "fair" and said it cannot afford to meet the RMT's demand for a cut in the working week.

----------

The Irish presidential race is expected to gather pace this week as local authorities hear pitches from candidate hopefuls and big parties set out their election stalls. Polling day has been confirmed as Friday October 24 and nominations for candidates will close a month before that. With seven weeks to go before votes are cast, there are just two confirmed candidates in the race. Fianna Fail is expected to confirmed the third on Tuesday when it hosts a head-to-head between a popular Cork parliamentarian and a Dublin sporting hero. Former Dublin football manager and retired army officer Jim Gavin has the public backing of senior party figures, while MEP and former junior minister Billy Kelleher appears to have more of a battle ahead of him. The parliamentary party will vote for its preferred candidate by secret ballot, possibly offering an element of drama. To run as a presidential candidate, a person must be an Irish citizen over the age of 35 and nominated by either 20 Irish parliamentarians or by four local authorities.

----------

BROKER RATINGS

----------

Citigroup raises Marks & Spencer to 'buy' - price target 440 pence

----------

COMPANIES - FTSE 100

----------

Retirement savings firm Phoenix Group lifts its payout, hails a "strong first half performance" and announces a name change. It swung to a pretax profit of GBP8 million in the first half of 2025, from a loss of GBP669 million a year prior, Phoenix says. Total income declines 30% to GBP8.60 billion from GBP12.33 billion. Adjusted operating profit shot up 25% to GBP451 million from GBP360 million, while operating cash generation improved 9% to GBP705 million from GBP647 million, the company adds. Phoenix lifts its interim dividend by 2.6% to 27.35 pence per share from 26.65p. "This is a strong first half performance with progress against all key financial metrics we use to drive the business, demonstrating continued momentum towards our 2026 targets. We are increasingly well placed to serve our customers' retirement needs and create further customer and shareholder value as we fulfil our vision to become the UK's leading retirement savings and income business," Chief Executive Officer Andy Briggs comments. In addition, the firm announces it plans to change its name to Standard Life PLC in March. "Changing our name from Phoenix Group Holdings PLC to Standard Life PLC in March 2026 brings our most trusted brand to the forefront and demonstrates our commitment to helping customers secure a better retirement," the CEO says. Looking ahead, it expects mid-single digit growth in operating cash generation for the full-year. Further afield, it predicts GBP1.1 billion in adjusted operating profit in 2026.

----------

COMPANIES - FTSE 250

----------

Domino's Pizza Group reports it has launched a new "chicken sub-brand", hailing this a "bold new chapter". The Milton Keynes, England-based master franchise holder in the UK and Ireland for pizza delivery firm Domino's Pizza Inc reports that Chick 'N' Dip will be trialled in 187 Domino's stores in the northwest of England and Northern Ireland. The brand is "designed to capture a share of one of the fastest growing markets in casual dining".

----------

Housebuilder Vistry has formed a long-term investment joint venture with Homes England, the UK government's housing and regeneration agency. The tie-up aims to "accelerate the development of large-scale residential sites across England". "The joint venture, named Hestia, is backed by GBP150 million of capital investment by Homes England and Vistry and is designed to deliver high-quality, mixed-tenure communities at pace and scale," Vistry says. "Hestia will focus on the acquisition and development of strategic sites, each ranging from 400 to 3,000 homes, and will incorporate vital new infrastructure to support thriving communities. In addition, the joint venture will seek to sell parcels of land on our larger sites to SME developers, reflecting both organisations' commitment to supporting the wider housing sector and enabling greater market participation."

----------

OTHER COMPANIES

----------

Extracts and ingredients manufacturer Treatt reports it has agreed to a GBP156.6 million takeover from Natara. Natara is a maker of "aroma ingredients products" and serves the flavour and fragrance industry and its majority owner is Exponent, a UK and European private equity firm. Both Natara and Exponent "have been following Treatt for some time and have long admired the business and its strong heritage", a statement says. Natara will pay 260p cash per Treatt share, a 16% premium to its closing price of 224p on Friday. The sum values the entire issued and to be issued ordinary share capital of Treatt at approximately GBP156.6 million. "While the Treatt directors recognise that improvements in market dynamics and Treatt's execution of its evolving strategy should support a recovery in Treatt's operating and financial performance, they also acknowledge that this could take some time and remains subject to significant uncertainty as to the external factors affecting Treatt's business and the delivery of internal systems and organisational improvements," a statement says.

----------

IQE, a supplier of advanced wafer products for the semiconductor industry, says it is widening its strategic review to "incorporate the potential sale of the company". IQE says it is now "seeking buyers". The firm started a strategic review in November. "While the strategic review process remains ongoing, IQE is progressing negotiations with multiple parties for the sale of the group's Taiwan operations. Should the sale of Taiwan be concluded, it is expected that the proceeds from such sale will be used to fully repay the group's revolving credit facility with HSBC Bank and convertible loan notes issued in March 2025, as well as providing IQE with cash to invest in its core operations," IQE adds. IQE reports that it is still seeing "weakness in wireless markets". "In addition, delays to federal funding cycles in US military and defence sectors are resulting in the deferral of orders into 2026," it reports. As a result, it sees 2025 revenue between GBP90.0 million and GBP100.0 million. This will result in an adjusted earnings before interest, tax, depreciation and amortisation outcome ranging from a GBP5.0 million loss and GBP2.0 million profit. In 2024, revenue totalled GBP118.0 million and its adjusted Ebitda amounted to GBP8.1 million. For the first half alone, it predicts revenue of GBP44.0 million and an adjusted Ebitda loss of GBP400,000, weakening from revenue of GBP66.0 million an adjusted Ebitda of GBP6.6 million reported a year earlier. IQE releases half-year results on September 23.

----------

The owner of at-home beauty technology operator Beauty Tech Group is mulling an initial public offering on London's Main Market. Project Glow Topco says an IPO will "enable us to raise awareness and incentivise staff to take the business to the next level". Independent Non-Executive Chair Elaine O'Donnell adds: "I have every confidence that a London-listing, coupled with a solid go-to market strategy, will support The Beauty Tech Group's ambition to grow its distribution while continuing to deliver the next generation of beauty technology products through ongoing research and development." The firm operates the CurrentBody Skin, ZIIP Beauty and Tria Laser brands. These brands offer at-home beauty devices "using aesthetic technologies which have been used in professional clinics for decades". "The group operates in the global AHBD market, which has an estimated value of approximately GBP9 billion - GBP12 billion and is growing rapidly within the GBP464 billion global beauty and personal care market," it adds.

----------

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 to rise after weaker US nonfarms

2025-09-08T05:55:37Z

Stocks in London are set to open higher on Monday, after US labour market numbers at the end of last week put a chunkier Federal Reserve cut on the table for this month.

IG says futures indicate the FTSE 100 to open 23.9 points higher, 0.3%, at 9,232.11 on Monday. The index of London large-caps closed down 8.66 points, 0.1%, at 9,208.21 on Friday.

The pound traded at USD1.3499 early Monday, down from USD1.3527 late Friday. The euro bought USD1.1716, falling from USD1.1743.

"Friday's US labor market report finally dispelled any remaining doubts about whether the Fed would cut interest rates soon, briefly pushing EUR-USD above the 1.1750 mark. Only one of the 80 analysts surveyed by Bloomberg had expected an even worse figure. A 25 basis point cut on September 17 is now fully priced into the market. Some now even see a chance that the Fed could deliver a 50 basis point cut," Commerzbank analyst Thu Lan Nguyen commented.

"However, there is a residual risk: new US inflation data is also due to be released this week. In recent months, this data has shown only a moderate effect of US tariffs. The probability therefore seems high that this will remain the case. However, the surprisingly abrupt deterioration in the US labour market has just shown that the effects of US policy do not necessarily have to be gradual."

According to the Bureau of Labor Statistics, nonfarm payroll employment increased by 22,000 in August, easing from 79,000 in July.

The July reading was upwardly revised from 73,000, however, June's reading was knocked to 14,000 from 27,000.

The latest data fell short of the FXStreet cited consensus of 75,000.

In Tokyo, the Nikkei 225 was up 1.5% late Monday. Sydney's S&P/ASX 200 was down 0.3%. The Shanghai Composite was up 0.1%, while the Hang Seng Index in Hong Kong added 0.4%.

China's exports expanded 4.4% year-on-year in August, General Administration of Customs data showed Monday, as the world's second-largest economy navigated an uneasy trade war truce with the US.

The increase in China's overseas shipments last month fell below a Bloomberg forecast of 5.5%.

Imports similarly did not meet expectations, growing 1.3% year-on-year in August, compared with a forecast of 3.4%.

Japan's economy grew at a stronger rate than was previously thought, revised data showed Monday.

According to the second release of preliminary estimates from Japan's Cabinet Office, the country's gross domestic product is now estimated to have grown 0.5% quarter-on-quarter, accelerating from 0.1% in the prior quarter and beating the prior estimate of 0.3%.

Japan's Prime Minister Shigeru Ishiba said on Sunday he would step down after less than a year in power, during which he lost his majority in both houses of parliament.

The announcement means fresh uncertainty for the world's fourth-largest economy as it battles rising food prices and deals with the fallout of US tariffs on its vital auto sector.

"Now that negotiations on US tariff measures have reached a conclusion, I believe this is the appropriate moment," Ishiba told a news conference.

"I have decided to step aside and make way for the next generation," he said.

Against the yen, the buck rose to JPY148.08 early Monday from JPY146.94 at the time of the London equities close on Friday.

In New York on Friday, the Dow Jones Industrial Average ended down 0.5%, the S&P 500 lost 0.3% and the Nasdaq Composite ended slightly lower.

The yield on the 10-year US Treasury widened to 4.09% early Monday, from 4.07% at the time of the London equities close Friday. The yield on the 30-year eased to 4.78% from 4.79%.

A barrel of Brent rose to USD66.38 from USD65.14. Gold fetched at USD3,588.11 an ounce, down slightly from USD3,589.49.

Monday's local corporate calendar has half year results from insurer Phoenix Group.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

China says trade grew in August, but below forecasts

2025-09-08T05:16:19Z

China's exports expanded 4.4% year-on-year in August, General Administration of Customs data showed Monday, as the world's second-largest economy navigated an uneasy trade war truce with the US.

The increase in China's overseas shipments last month fell below a Bloomberg forecast of 5.5%.

Imports similarly did not meet expectations, growing 1.3% year-on-year in August, compared with a forecast of 3.4%.

China's trade surplus grew to USD102.33 billion in August, up from USD98.24 billion in the prior month.

Data also showed that China's exports to the US, its largest trading partner, continued to fall, sinking 12% from the previous month, and down 33% on-year.

Trade tensions between the world's two largest economies have been on a rollercoaster ride in 2025, with both countries slapping escalating tariffs on each other's exports this year.

At one point, the tit-for-tat duties reached triple digits on both sides, snarling supply chains as many importers halted shipments to try and wait for the governments to settle matters.

Since then, Washington and Beijing have reached an agreement to de-escalate tensions, temporarily lowering tariffs to 30% on the US' side and 10% on China's part.

In August, they delayed the threatened reimposition of higher tariffs on each other's exports for another 90 days – meaning the pause on steeper duties will be in place until November 10.

That same month, Li Chenggang, China's international trade representative and vice minister of commerce, led a delegation to Washington for trade talks.

He urged "equal dialogue and consultation" between the two nations during the visit, according to a statement from China's commerce ministry.

source: AFP

Japan GDP growth upwardly revised for second quarter of 2025

2025-09-08T03:03:21Z

Japan's economy grew at a stronger rate than was previously thought, revised data showed Monday.

According to the second release of preliminary estimates from Japan's Cabinet Office, the country's seasonally adjusted gross domestic product increased 2.2% on an annualised basis in the second quarter of 2025, exceeding the initial estimate of a 1.0% increase.

GDP is now estimated to have grown 0.5% quarter-on-quarter, accelerating from 0.3% previously.

Based on the FXStreet-cited consensus forecast, no change was expected from the initial estimates.

As stated in the second preliminary estimates issued in June, the Cabinet Office concluded that GDP contracted 0.2% on an annualised basis in the first quarter, and was flat quarter-on-quarter.

Min Joo Kang, senior economist, South Korea and Japan, ING, commented: "Japan's upward GDP revision suggests wage growth and household spending will continue to drive the economy forward. However, Prime Minister Ishiba's resignation increases macro policy risk. We maintain our October rate hike forecast for now, though uncertainty is increasing."

By Elijah Dale, Alliance News senior reporter Asia-Pacific

Comments and questions to newsroom@alliancenews.com

Japan Prime Minister Shigeru Ishiba says he will resign

2025-09-07T11:08:07Z

Japan's Prime Minister Shigeru Ishiba said on Sunday he would step down after less than a year in power, during which he lost his majority in both houses of parliament.

The announcement means fresh uncertainty for the world's fourth-largest economy as it battles rising food prices and deals with the fallout of US tariffs on its vital auto sector.

"Now that negotiations on US tariff measures have reached a conclusion, I believe this is the appropriate moment," Ishiba told a news conference.

"I have decided to step aside and make way for the next generation," he said.

US President Donald Trump signed an order on Thursday to lower tariffs on Japanese autos, with Washington finally moving to implement a trade pact negotiated with Tokyo in July.

However, although Japanese autos will now face a 15% tariff instead of the current 27.5%, the levy will still cause significant pain in the crucial industry.

The decision comes less than a year after the 68-year-old, seen as a safe pair of hands, took the helm of the long-dominant Liberal Democratic Party (LDP).

He won the party leadership in September 2024 to become the LDP's 10th separate prime minister since 2000, all of them men.

Media reports said earlier that Ishiba wanted to avoid a split in the party and that he was unable to withstand the mounting calls for his resignation.

The farm minister and a former prime minister reportedly met with Ishiba on Saturday night to urge him to resign voluntarily.

Four senior LDP officials, including the party's number two Hiroshi Moriyama, offered to resign last week.

Opponents of Ishiba had been calling for him to step down to take responsibility for the election results, following the upper chamber vote in July.

Those backing the move included Taro Aso, the influential 84-year-old former prime minister, according to Japanese media.

Ishiba's term as party leader was supposed to end in September 2027.

His most prominent rival Sanae Takaichi, who is seen as a hardline nationalist, all but said on Tuesday that she would seek a contest.

Voters are less than keen on the hawkish Takaichi, runner-up in the last leadership election in 2024.

A Nikkei survey held at the end of August put Takaichi as the most "fitting" successor to Ishiba, followed by farm minister Shinjiro Koizumi, but 52% of respondents said a leadership contest was unnecessary.

After the election, social media users called for the moderate Ishiba to remain in power under the hashtag "#Ishiba Don't quit".

The LDP has governed almost continuously since 1955, but voters have been deserting the party, including towards fringe groups such as the populist Sanseito.

Factors include rising prices, notably for rice, falling living standards, and anger at corruption scandals within the LDP.

Ishiba, a diligent career politician, was elected LDP leader last year on his fifth attempt, promising a "new Japan".

source: AFP

Zelensky to Putin: 'He can come to Kiev'

2025-09-06T11:18:37Z

Ukrainian President Volodymyr Zelensky, responding to Russian President Vladimir Putin's insistence that if the two were to meet it had to be in Moscow, suggested Kiev as an alternative venue.

"He can come to Kiev," Zelensky told the US broadcaster ABC News in an interview released on Saturday.

The Ukrainian leader said he cannot come to Moscow while his country is under attack from Russia and said Putin is only suggesting Moscow as a delaying tactic.

"I can't go to Moscow ... when my country's under missiles, under attacks each day. I can't go to this capital of this terrorist. It's understandable and he understands it."

Speaking in English, Zelensky said that you can't trust Putin and that he was "playing games" with the US.

The Ukrainian president has repeatedly called for a meeting with Putin to negotiate a ceasefire in the Russia's war against his country, which Putin started in February 2022.

According to Ukrainian sources, at least seven countries have offered to host such a summit. These include Turkey as well as three Gulf states, which are considered neutral in the conflict.

On Wednesday, Putin said Zelensky could come to Moscow if there was a prospect of a positive outcome.

Speaking at an economic forum in Vladivostok on Friday, Putin also once again however questioned the usefulness of such talks, reiterating his denial of Zelensky's legitimacy.

Zelensky had already rejected Moscow as a venue for negotiations on Thursday. "If you want no meeting to take place, then you invite me to Moscow," he said.

source: dpa

UPDATE: Starmer makes major Cabinet reshuffle after Rayner quits

2025-09-06T11:14:34Z

Keir Starmer has completed a reshuffle of his senior ministers after Angela Rayner resigned from the Government for breaching the ministerial code.

Rayner quit as deputy prime minister, housing secretary and deputy leader of the Labour Party following an official probe into her admission she did not pay enough stamp duty on a seaside home she bought earlier this year.

The Prime Minister instigated a major shake-up of his top team in order to reclaim the political narrative following Rayner's exit.

David Lammy was appointed Deputy Prime Minister and moved into a new role as justice secretary, after serving as Britain's top diplomat – the foreign secretary – over the last year.

Shabana Mahmood, formerly the justice secretary, is the new home secretary, while Yvette Cooper has moved from her brief at the Home Office to take over Lammy's former job as foreign secretary.

With Rachel Reeves remaining in post as chancellor, the appointment of Mahmood and Cooper to their new roles mean that for the first time in history the three so-called "great offices of state" are all filled by women.

Elsewhere, Pat McFadden, formerly a senior Cabinet Office minister, is set to take over a new "super ministry" comprised of the Department for Work and Pensions and the skills remit of the Department for Education.

Steve Reed has taken over Rayner's brief as housing secretary, leaving behind his role as environment secretary.

Darren Jones, a Labour rising star who was only days ago appointed to the new position of the chief secretary to the prime minister, also takes over McFadden's old Cabinet Office job: the chancellor of the duchy of Lancaster.

Elsewhere, Peter Kyle has been appointed business secretary, while Jonathan Reynolds has been moved from that post to become the government chief whip, replacing Alan Campbell, who is the new leader of the House of Commons.

Lucy Powell, the former commons leader was sacked, as was former Scotland secretary Ian Murray, now replaced by Douglas Alexander, who was until now a trade minister.

Liz Kendall, formerly the work and pensions secretary, takes over Peter Kyle's old job as science secretary.

The Cabinet reshuffle was rounded off with Emma Reynolds' appointment as environment secretary.

Junior ministerial roles within the Government remain to be filled, including Reynolds' now vacant former role as a minister within the Treasury team.

Lisa Nandy, who has faced months of briefing against her, remains as the culture secretary, and Ed Miliband also stays on as energy secretary.

Sources within Downing Street suggested the government had been refreshed and reinvigorated by the reshuffle, and would focus on making people feel better off, protecting the UK's borders, and reforming and renewing public services.

The government has been given a new "sense of purpose" by the shake-up, a source said.

Labour also faces an internal election to replace Rayner as its deputy party leader, arrangements for which will be announced in due course.

The contest could see the divide between different factions of Labour – and their positions on Sir Keir's track record in No 10 – brought into the public eye.

Left wing Labour MP Richard Burgon has already cautioned against the race to replace the deputy leader – a figure intended to be a bridge with the party grassroots – becoming a "stitch up".

Rayner resigned as deputy PM, housing secretary and deputy Labour leader after Starmer's ethics adviser said she failed to "heed the caution" contained within legal advice she received when buying an GBP800,000 property in Hove.

The outgoing deputy prime minister admitted she had underpaid stamp duty on the flat, and referred herself to Sir Laurie Magnus, the independent ethics adviser.

In a letter published on Friday, Sir Laurie said he believed Ms Rayner had acted in "good faith", but that "the responsibility of any taxpayer for reporting their tax returns and settling their liabilities rests ultimately with themselves".

Rayner told the prime minister in a letter on Friday that "I deeply regret my decision to not seek additional specialist tax advice" and said she took "full responsibility for this error".

In his response, Starmer said Rayner would "remain a major figure in our party" and "continue to fight for the causes you care so passionately about".

The major upset to the government comes just days after Starmer instigated a smaller reshuffle, and made new back office appointments with a view to begin what he billed as "phase two" of his administration, focused on delivery.

Conservative leader Kemi Badenoch said: "Phase Two of Starmer's Government didn't even last three days. He was too weak to fire the deputy prime minister, even after he was told she broke the ministerial code, and now he's shuffling deckchairs around on his sinking government.

"The Labour Party is now engaged in a civil war for its deputy leadership. All of which will be an enormous distraction from the problems facing Britain, with the cost of borrowing reaching its highest point in decades, and inflation and unemployment rising."

Liberal Democrat leader Ed Davey meanwhile cautioned Labour, warning that the reshuffle showed it was "learning the wrong lessons from the calamity Conservatives before them".

"Until Keir Starmer is ready to grab the bull by the horns and confront the problems our country really faces, it makes little difference who sits where around the Cabinet table," he added.

Reform UK leader Nigel Farage brought forward a keynote speech at his party's conference in Birmingham, and claimed the government is "deep in crisis" and "not fit to govern".

source: PA

EU massive fine against Google draws Trump threat

2025-09-06T11:10:30Z

The EU on Friday slapped Google with a massive EUR2.95 billion antitrust fine for favouring its own advertising services, drawing a furious rebuke from President Donald Trump and a threat of fresh tariffs against Europe.

Google vowed to appeal the decision by the European Commission, which accused the US firm of distorting competition in the 27-nation bloc.

"Google abused its dominant position in adtech, harming publishers, advertisers, and consumers. This behavior is illegal under EU antitrust rules," EU competition chief Teresa Ribera said.

Trump, who has threatened to go after Europe for its rules on the digital market and content policing, lashed out at the decision, which brings Google's total EU liabilities to nearly EUR10 billion.

"Very unfair, and the American taxpayer will not stand for it!" Trump said on his Truth Social network, a day after hosting top tech leaders including Google Chief Executive Officer Sundar Pichai at the White House.

"As I have said before, my Administration will NOT allow these discriminatory actions to stand," he added, warning that if the fine is confirmed, he will launch proceedings to impose tariffs as retaliation.

The dustup came as the EU is still waiting for the US to make good on a promise to lower tariffs on cars under a trade deal agreed in July.

In its decision, Brussels ordered Google to end its "self-preferencing practices" and take steps to cease its inherent conflicts of interest.

"Google has 60 days to inform the Commission on how it plans to do so," Ribera said.

"If it fails to propose a viable plan, the Commission will not hesitate to impose an appropriate remedy."

She said that "at this stage, it appears that the only way for Google to end its conflict of interest effectively is with a structural remedy, such as selling some part of its adtech business."

Google said the commission's decision was wrong and it would appeal.

"It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money," said the firm's global head of regulatory affairs, Lee-Anne Mulholland.

Advertising is Google's financial bedrock. The firm's parent company Alphabet in July reported quarterly profits of USD28.2 billion, largely from ads.

In its decision, the commission noted that Google not only sells advertising on its own websites and apps, but also acts as an intermediary for firms wanting to place ads elsewhere to appear on mobile and computer screens.

The European Publishers Council, a media industry group that had filed a complaint over the practices probed by the EU, said a fine was not enough.

"Without strong and decisive enforcement, Google will simply write this off as a cost of business while consolidating its dominance in the AI era," said its director Angela Mills Wade.

In a similar case, a US federal judge earlier this year decided against Google over its adtech practices. A trial to decide the remedies opens in Virginia on September 22.

Friday's announcement marked the third fine announced in a week against the Alphabet-owned Google.

A US federal jury on Wednesday ordered Google to pay about USD425 million for gathering information from smartphone app users even when people opted for privacy settings.

The same day, France's data protection authority fined the search giant EUR325 million for failing to respect the law on internet cookies.

The group notched a major win, however, on Tuesday when a US judge rejected the American government's demand that Google sell its Chrome web browser.

The landmark antitrust ruling, coming after Google was found to have illegally maintained monopolies in online search through exclusive distribution agreements, did, however, impose sweeping data sharing requirements to restore competition.

As the EU's competition watchdog, the commission has hit Google with multiple fines in recent years.

It fined the online giant EUR4.1 billion in 2018 for abusing the market dominance of its Android operating system, and in 2017 slapped a EUR2.4 billion fine for anti-competitive practices in the price comparison market.

source: AFP

NEW YORK MARKET CLOSE: Shares red as nonfarm print points to rate cut

2025-09-05T20:19:57Z

Shares ended lower in New York on Friday after gains early in the session as a worse than hoped nonfarm print solidified expectations for a September rate cut.

The Dow Jones Industrial Average closed down 220.43 points, 0.5%, at 45,400.86. The S&P 500 fell 20.58 points, 0.3%, to 6,481.50. The Nasdaq Composite ended down 7.30 points, marginally lower, at 21,700.39.

For the week, the DJIA slipped 0.3%, The S&P gained 0.3%. The Nasdaq rose 1.1%.

"Slower job gains, combined with an uptick in the unemployment rate and moderating wage growth, support the view that the rate of positive change in the labor market has slowed significantly," said Harris Financial Group managing partner Jamie Cox on Friday's weaker than expected August nonfarm payrolls report.

"These employment data give the Fed all the reasons it needs to shift its balance of risks and lower rates in two weeks," Cox added.

The US Bureau of Labor Statistics on Friday said nonfarm payroll employment in August increased by just 22,000, well below the FXStreet-cited consensus of 75,000 and down from a revised 79,000 in July. June's gain was cut to 14,000 from 27,000.

The unemployment rate edged higher to 4.3% from 4.2%. Wage growth also softened, with average hourly earnings rising 3.7% on-year compared with 3.9% in July.

"Strip those three sectors [government, private health & education and leisure & hospitality] out and payrolls have fallen four consecutive months, showing the problems that the sectors typically associated as being growth engines of the US economy are facing," said ING Chief International Economist James Knightley.

Knightley added: "The consumer is already anxious about tariffs hiking prices, leading to squeezed spending power. If we then overlay that with worries about jobs then this suggests downside risks for economic activity are growing.

ING now expects three consecutive 25 basis point cuts through December, with more easing of up to 50 basis points in early 2026.

According to the CME FedWatch tool, markets have priced in a 90.0% chance for a 25bps move from the Fed later this month, while chances of a 50bps cut to a target range of 3.75-4.00% stand at 10.0%.

The dollar fell in response. Late Friday, the pound traded at USD1.3503, up from USD1.3436 at the New York close on Thursday. The euro rose to USD1.1714 from USD1.1653. Against the yen, the dollar was at JPY147.46, down from JPY148.49 on Thursday.

The US 10-year Treasury was at 4.09% late Friday, down from 4.16% on Thursday. The yield on the US 30-year Treasury was at 4.77%, narrowed from 4.85%.

Despite the sell-off, Broadcom shares climbed 9.4% following better than expected earnings.

In the three months to August 3, Broadcom said net income swung to USD4.14 billion from a loss of USD1.88 billion the year prior. Diluted earnings per share of USD0.85 compared to a loss per share of USD0.40.

Adjusted earnings per share of USD1.69 beat the USD1.65 LSEG consensus.

Revenue was USD15.95 billion, up 22% and ahead of USD15.83 billion consensus AI revenue growth surged 63% on-year to USD5.2 billion.

Peer Nvidia fell 2.7%. AMD closed down 6.6%.

Tesla shares rose 3.6% on Friday after it proposed a compensation package for Chief Executive Elon Musk that could top USD1 trillion.

The plan could provide Musk with an up to 12% additional stake in Tesla pending milestones which include a market cap of at least USD8.5 trillion by 2035.

Shareholders will vote on the package in November. Earlier this month Tesla awarded Musk an interim package of about USD29 billion as Tesla challenges a Delaware court ruling that struck down its 2018 package.

Tesla Chair Robyn Denholm and board member Kathleen Wilson-Thompson called the new offer a "super ambitious incentive package for a pioneering, ambitious and unique CEO".

But they also noted the potential for market backlash, in light of controversy surrounding Musk.

lululemon shares tumbled on Friday as US sales disappointed in its second quarter ended August 3.

Net income in the period fell 5.4% on-year to USD370.9 million. Revenue rose 6.8% to USD2.53 billion but missed FactSet consensus of USD2.54 billion.

Comparable sales increased 1% overall with a 4% decrease in the Americas and 15% growth in International.

Chief Executive Calvin McDonald said lounge and social product offerings have become "stale" and "we have become too predictable" within "our casual offerings and missed opportunities to create new trends."

"I now believe we have let our product life cycles run too long within many of our core categories, particularly in lounge and social," he added.

"My view now is that we have relied on the same product playbook across certain categories for too long," he continued.

In particular, while customers liked new styles, they were not reacting as "anticipated" to the updated seasonal colours brought into the core assortment.

lululemon closed down 19%.

Gold was quoted at USD3,595.38 an ounce late on Friday, up from USD3,549.44 on Thursday.

Brent was quoted at USD65.65 a barrel on Friday, down from USD66.82 on Thursday. West Texas Intermediate fell to USD62.03 from USD63.31.

In Europe, the FTSE 100 eased 0.1% in London. The CAC 40 fell 0.3% in Paris. The DAX 40 in Frankfurt dropped 0.7% in Frankfurt.

In Asia, the Nikkei 225 in Tokyo gained 1.0%. In China, the Shanghai Composite rose 1.2%, while the Hang Seng Index closed up 1.4% in Hong Kong. The S&P/ASX 200 gained 0.5% in Sydney.

Monday's global economic calendar has US consumer inflation expectations, Japanese GDP and foreign exchange reserves and China trade balance and foreign exchange reserves.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: FTSE 100 down as US jobs market stalls in August

2025-09-05T16:01:02Z

The FTSE 100 gave back early gains to close lower on Friday as a weak US jobs report boosted hopes of rate cuts but also raised fears the world's biggest economy was slowing.

"The [US] labour market is in a precarious position," said analysts at Wells Fargo, putting the Federal Open Market Committee in a position "where it will imminently start cutting the federal funds rate."

The FTSE 100 index closed down 8.66 points, 0.1%, at 9,208.21. It had earlier traded as high as 9,253.53.

The FTSE 250 ended 100.86 points higher, 0.5%, at 21,575.54 and the AIM All-Share finished up 3.63 points, 0.5%, at 765.63.

For the week, the FTSE 100 rose 0.2%, the FTSE 250 fell 0.1% and the AIM All-Share firmed 0.2%.

The Cboe UK 100 ended down 0.1% at 923.42, the Cboe UK 250 closed 0.4% higher at 18,855.21 and the Cboe Small Companies slightly higher at 17,052.42.

In New York, at the time of the London equities market close, the Dow Jones Industrial Average was down 0.7%, as was the S&P 500, while the Nasdaq Composite dropped 0.5%.

Friday saw another weak jobs report in the US with growth in nonfarm payrolls well below market expectations, while the unemployment rate moved higher.

According to the Bureau of Labor Statistics, nonfarm payroll employment increased by 22,000 in August, easing from 79,000 in July. The July reading was upwardly revised from 73,000, however, June's reading was knocked down to a net loss of 13,000 jobs from a gain of 14,000 previously reported.

The latest data fell short of the FXStreet cited consensus of 75,000.

The jobless rate edged up to 4.3% in August, as expected, from 4.2% in July.

Thomas Feltmate, senior economist at TD Economics, said: "There's no escaping that the labour market is softening, and quickly."

"Fed officials have become increasingly concerned about the downside risks to the labour market, and this morning's report will not assuage those fears. We maintained an out-of-consensus view since April that the Federal Reserve would need to deliver 75 basis points in rate-relief this year, and our conviction remains high that it will occur."

Bank of America agreed.

"The August jobs report is likely to amplify the Fed's concerns about labour market weakness. Job growth was anaemic on the month, the unemployment-rate ticked up to 4.3% and weaker-than-expected hours worked led to a slowdown in income growth. There is now clearer evidence of deterioration in labour demand, not just supply."

BofA now expects the Fed to make two quarter point rate cuts this year, in September and December. It had previously forecast that the US central bank would leave rates on hold for the rest of 2025.

Wells Fargo said the jobs engine, that has been integral to US economic growth defying expectations for the past four years, is "stalling."

"With elevated risk of further downward revisions, the recent pace of hiring is dangerously close to crossing into negative territory, where job market weakness quickly becomes self-reinforcing," the broker warned.

The report put pressure on the dollar and saw bond yields ease further.

The pound jumped to USD1.3527 late on Friday afternoon in London, compared to USD1.3432 at the equities close on Thursday. The euro firmed to USD1.1743, against USD1.1641. Against the yen, the dollar was trading lower at JPY146.94 compared to JPY148.74.

The yield on the US 10-year Treasury was quoted at 4.07%, narrowed from 4.20% on Thursday. The yield on the US 30-year Treasury was quoted at 4.79%, eased from 4.90%.

In Europe, the CAC 40 in Paris ended down 0.6%, while the DAX 40 in Frankfurt closed 0.9% lower.

In London, political developments saw Keir Starmer shake-up his front bench after Angela Raynor quit the government after she was found to have breached the ministerial code over her underpayment of stamp duty on a seaside flat.

Raynor has resigned as UK deputy prime minister, housing secretary and deputy leader of the Labour Party.

With speculation rife as to the future of some ministers, reports said Rachel Reeves will be staying put as chancellor.

Reports suggested Home Secretary Yvette Cooper would replace David Lammy as Foreign Secretary. Lammy is understood to have been appointed as deputy prime minister.

In an ironic twist, housebuilder Berkeley Group welcomed the UK government's "positive" stance on planning reform, amid stable trading.

Shares in the Cobham-based housebuilder rose 3.0% as it said it is on track to report pretax earnings in line with its GBP450 million forecast for the financial year ending April 30, 2026, and down 15% from GBP528.9 million in financial 2025.

Berkeley said it has already secured 85% of its guided pretax earnings through exchange sales contracts, and that the firm remains on target to achieve a similar level of profit in financial 2027.

Berkeley's update came as the Halifax house price index found that the average UK house price increased by 0.3% to a new record high of GBP299,331 in August.

"Affordability remains a challenge, but there are signs of improvement," said Amanda Bryden, head of mortgages at Halifax.

Other housebuilders took heart from the news. Persimmon rose 2.8%, Barratt Redrow by 2.1% and Taylor Wimpey by 2.2%.

Aviva climbed 1.6% as Goldman Sachs restarted coverage of the insurer with a 'buy' rating and 736 pence price target.

But Admiral fell 3.0% as Peel Hunt downgraded to 'sell' from 'reduce' believing the outlook for underwriting margins in the UK motor space is "starting to deteriorate".

A sharp drop in the oil price saw BP and Shell drop 2.6% and 2.3% respectively. A barrel of Brent traded at USD65.14 late Friday afternoon, down from USD67.02 on Thursday.

Next rose 0.8% after UK retail sales accelerated ahead of expectations in July following continued good weather.

Total retail sales volumes are estimated to have risen by 0.6% in July, accelerating from an increase of 0.3% in June and comfortably beating an FXStreet-cited consensus for 0.2% growth in July.

Food store sales rose 2.5% in July to their highest level since February 2022, boosted by good weather and events such as the Union of European Football Associations Women's Euro 2025 tournament. Food store sales had increased 0.7% in June.

The ONS noted that the UK had its fifth-warmest July on record this year, according to the Met Office climate summaries.

Gold advanced to USD3,589.49 an ounce on Friday against USD3,543.56 on Thursday.

The biggest risers on the FTSE 100 were Entain, up 28.00p at 864.40p, Berkeley Group, up 108.00p at 3,690.00p, Ashtead, up 152.00p at 5,538.00p, Persimmon, up 30.00p at 1,100.00p and Melrose, up 16.00p at 616.00p.

The biggest fallers on the FTSE 100 were Admiral, down 102.00p at 3,342.00p, BP, down 11.25p at 415.65p, Barclays, down 9.20p at 361.05p, NatWest, down 12.00p at 506.00p and Shell, down 60.50p at 2,627.50p.

Monday's local corporate calendar has half year results from insurer Phoenix Group.

The global economic calendar on Monday has China trade data.

Later in the week, US inflation figures and the ECB interest rate decision, both on Thursday, will be closely watched.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UPDATE: Starmer begins reshuffle after Angela Rayner leaves government

2025-09-05T15:31:48Z

Keir Starmer has begun a major reshuffle of his senior team, after Angela Rayner resigned from the government for breaching the ministerial code when she did not pay enough stamp duty on a seaside home.

David Lammy will replace Rayner as the deputy prime minister according to reports, and also becomes the justice secretary, moving from his role as Britain's top diplomat, the foreign secretary.

Shabana Mahmood, formerly the justice secretary, is the new home secretary, the PA news agency understands.

Meanwhile, Yvette Cooper has moved from her brief at the Home Office to take over Lammy's former job as foreign secretary, several media reports have suggested.

Lucy Powell and Ian Murray have been sacked as leader of the House of Commons and Scotland secretary respectively.

The outgoing deputy prime minister admitted she had underpaid stamp duty on the flat, and called for the ethics probe earlier this week.

By David Lynch, Christopher McKeon, Nina Lloyd, David Hughes, and Sophie Wingate, PA

source: PA

FOREX: Dollar sinks as US jobs report strengthens case for Fed cut

2025-09-05T13:01:59Z

The dollar suffered on Friday after numbers showed the US labour market suffered a deeper than expected slowdown, boosting the conviction that the Federal Reserve will cut this month.

The latest data fell short of the FXStreet cited consensus of 75,000.

The jobless rate edged up to 4.3% in August, as expected, from 4.2% in July.

Versus the dollar, the euro traded at USD1.1724 on Friday, up from USD1.1644 a day prior and USD1.1700 before the US data was released. Sterling climbed to USD1.3506 from USD1.3483 moments before the US data and USD1.3434 from a day prior.

"Markets have been pricing in a 0.25% rate cut at the Federal Reserve's upcoming monetary policy meeting, and today's softer than expected jobs number may well grant that wish," Quilter Cheviot analyst Richard Carter commented.

"Earlier this week, jobless benefit claims ticked higher, and today's worse than expected payrolls figure cements the fact that the jobs market is weakening significantly. Following the Fed's decision to hold rates in July, markets had already largely priced in a cut, regardless of today's numbers. Still, one major obstacle remains. Inflation continues to complicate the Fed's path, and next week's CPI print will be critical, especially as several FOMC members remain cautious about easing policy under political pressure. With the full impact of Trump's tariffs still unfolding, a hotter than expected inflation reading could lead to a split decision later this month."

Inflation in the US is forecast to accelerate in August amid more signs of the impact of Donald Trump's tariffs.

Barclays expects the August consumer price index report to show another modest uptick in core inflation, but with more evidence of tariff pass-through. It thinks while a widespread boost to core goods prices has not been borne out in the data as of yet, there are clear signs of upward price pressures across categories.

Barclays expect headline consumer price inflation to have risen 0.4% month-on-month in August versus 0.2% in July, for an annual rate of 2.9%, compared to 2.7% in July.

Against the yen, the dollar fell to JPY147.53 from JPY148.34. Versus the Swiss franc, it declined to CHF0.8008 from CHF0.8054.

Against the euro, the pound declined to EUR1.1516 from EUR1.1531. The European Central Bank takes centre stage next week.

Analysts at Deutsche Bank commented: "The ECB is expected to keep policy rates unchanged at 2% again at the Governing Council meeting on 11 September. Having signalled at the last meeting that the ECB is in a 'good place to hold and watch', there has been nothing in the incoming data to challenge the assumption of a further pause in September.

"The focus will be on the signals for the path that lies ahead for monetary policy. Several elements of the ECB's communications would determine the market reaction: what Lagarde says, what the staff forecasts show, changes to the risk assessment, how the ECB interprets the appreciation of the euro exchange rate and what, if anything, is said about France."

In the UK, it has been a dramatic week on the bond market, which has hurt sterling. The yield on the UK 30-year bond spiked towards 5.75% this week, the loftiest level since 1998, amid nerves over the nation's public finances.

UK retail sales accelerated ahead of expectations in July following continued good weather, but fell short of consensus on an annual basis, the Office for National Statistics reported on Friday.

Total retail sales volumes are estimated to have risen by 0.6% in July, accelerating from an increase of 0.3% in June and comfortably beating an FXStreet-cited consensus for 0.2% growth in July.

The retail sales data also comes in the wake of UK Chancellor Rachel Reeves announcing that she will present her autumn budget on Wednesday, November 26.

Ebury analyst Matthew Ryan commented: "Chancellor Reeves has given herself plenty of time to get her ducks in a row, opting for the latest possible date to call her autumn budget. But, markets are fickle, quick to judge and slow to trust, and will punish the government if they fail to deliver a plan that guarantees fiscal sustainability.

"Further tax hikes are almost certain in order to plug the black hole in the public coffers, but that alone won't wash, with investors baying for spending cuts, wary of a perpetual tax trap that could choke the life out of the UK economy."

Angela Rayner has resigned from the UK government after Prime Minister Keir Starmer's ethics adviser found she had breached the ministerial code over her underpayment of stamp duty on a seaside flat.

Laurie Magnus said the outgoing deputy prime minister had "acted with integrity", but failed to "heed the caution" contained within legal advice she received when buying the GBP800,000 property in Hove.

The resignation marks a major blow for the prime minister and it is understood a wider reshuffle will now take place later on Friday.

Ebury's Ryan said that "while not a good look for the government" it "will not likely have any impact on markets".

Elsewhere, the dollar fell to AUD1.5234 against its Australian counterpart from AUD1.5341 a day prior. Versus the Canadian dollar, the buck faded to CAD1.3814 from CAD1.3823.

Canada's unemployment rate came in higher than anticipated in August, data published by Statistics Canada showed Friday.

The country's unemployment rate increased to 7.1% in August from 6.9% in July, higher than the FXStreet-cited consensus which had expected an increase to 7.0% in August.

The Dollar Index fell to 97.64 points on Friday, from 98.34 at the same time on Thursday.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UPDATE: UK deputy PM quits government after probe into tax affairs

2025-09-05T12:53:52Z

Angela Rayner has resigned from the UK government after Prime Minister Keir Starmer's ethics adviser found she had breached the ministerial code over her underpayment of stamp duty on a seaside flat.

The resignation marks a major blow for the prime minister and it is understood a wider reshuffle will now take place later on Friday.

Rayner had referred herself to the standards watchdog for investigation after she admitted she had paid GBP40,000 less surcharge than she should have done on the purchase in May.

She said she made a mistake based on legal advice she received at the time, before consulting a leading counsel, who found she was liable to pay a higher stamp duty rate, following headlines about her tax affairs.

In a letter published on Friday, Magnus said: "She believed that she relied on the legal advice she had received, but unfortunately did not heed the caution contained within it, which acknowledged that it did not constitute expert tax advice and which suggested that expert advice be sought."

Rayner told the prime minister in a letter that "I deeply regret my decision to not seek additional specialist tax advice" and took "full responsibility for this error".

Magnus said he believed she had acted in "good faith", but that "the responsibility of any taxpayer for reporting their tax returns and settling their liabilities rests ultimately with themselves".

In a resignation letter on Friday, Rayner said: "I have long believed that people who serve the British public in government must always observe the highest standards, and while the Independent Adviser has concluded that I acted in good faith and with honesty and integrity throughout, I accept that I did not meet the highest standards in relation to my recent property purchase.

"I would like to take this opportunity to repeat that it was never my intention to do anything other than pay the right amount."

Starmer said Rayner would "remain a major figure in our party" and "continue to fight for the causes you care so passionately about" despite her resignation as his deputy, housing secretary and deputy Labour leader.

Losing the deputy prime minister will cause a headache for Starmer as he seeks to reset government following a difficult summer dominated by criticism of the small boats crisis and speculation about tax rises in the autumn budget.

Rayner is popular among the Labour grassroots and is said to have played an important role in defusing the backbench revolt over proposed welfare cuts earlier this year.

She has been key to his political project, overseeing the manifesto pledge to build 1.5 million new homes as well as the government's flagship workers' rights expansion, and is seen as a bridge between No 10 and the wider party.

Tory leader Kemi Badenoch criticised the prime minister for having waited for Rayner's resignation, saying her position had been "untenable for days".

"Angela Rayner is finally gone. It says everything about Keir Starmer's weak leadership that he had to wait for a report before acting," she said.

Meanwhile, Reform UK leader Nigel Farage has brought forward his leader's speech at the party conference in the wake of the scandal.

He will speak at 1pm, three hours earlier than previously expected.

Farage has said there will be "splits" within Labour when it begins the process to elect a new deputy leader.

By Nina Lloyd, David Hughes, David Lynch and Sophie Wingate, PA

source: PA

US hiring slows more than expected in August and jobless rate rises

2025-09-05T12:44:44Z

The US labour market suffered a deeper than expected slowdown in August, numbers on Friday showed, hurting the dollar and boosting the conviction that the Federal Reserve will cut rates this month.

The latest data fell short of the FXStreet cited consensus of 75,000.

The jobless rate edged up to 4.3% in August, as expected, from 4.2% in July.

"Over the month, a job gain in health care was partially offset by losses in federal government and in mining, quarrying, and oil and gas extraction," the BLS said.

Average hourly earnings rose 3.7% on-year in August, as expected, easing from 3.9% in July.

The data comes in the wake of expectations of US rate cuts picking up, following a speech from Federal Reserve Chair Jerome Powell that traders interpreted as dovish.

In a keenly awaited speech at the Jackson Hole economic symposium last month, Powell left the door open to a rate cut at the Fed's September meeting stating a "shifting" balance of economic risks "may warrant adjusting our policy stance."

The euro rose to USD1.1728 following the data, from USD1.1700 beforehand.

The next Fed decision is on September 17.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Canadian unemployment rate rises more than expected to 7.1% in August

2025-09-05T12:43:41Z

Canada's unemployment rate came in higher than anticipated in August, data published by Statistics Canada showed Friday.

The country's unemployment rate increased to 7.1% in August from 6.9% in July, higher than the FXStreet-cited consensus which had expected an increase to 7.0% in August.

It was the highest level since May 2016, when excluding pandemic years 2020 and 2021.

Employment fell across several industries in August, led by professional, scientific and technical services, down 1.3%, transportation and warehousing, down 2.1% and manufacturing which was down 1.0%. However, there was a 1.1% increase in construction employment.

Notably, for the summer of 2025 overall, meaning between May and August 2025, the unemployment rate for returning students aged 15 to 24 was 17.9%, up from 16.5% a year ago and the highest since summer of 2009 when it stood at 18%, when excluding pandemic year 2020's 31.1%.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

COMMODITIES: Gold calm before US jobs data; oil awaits Opec+ meeting

2025-09-05T11:30:28Z

Gold rose on Friday as the yellow metal consolidated around an all-time high record ahead of the release of US labour report this afternoon.

Spot gold was quoted at USD3,550.07 an ounce on Friday afternoon in London, up from USD3,540.22 at the same time on Thursday. But silver eased to USD40.75 an ounce from USD40.87.

Bullion hit USD3,578 an ounce on Wednesday, for the first time in history, after notching a series of records this week. For now, investors awaited the US nonfarm payroll data, due this afternoon, for possible clarity on US interest rate outlook.

"After a sharp rally in recent days, the metal is now consolidating as investors weigh economic risks and political uncertainties that continue to shape the macro backdrop," XS.com analyst Samer Hasn said.

"The recent strength in gold has stemmed more from concerns over economic stability than from outright expectations of rate cuts, while long-term bond selloffs support this narrative," Hasn said.

The US Federal Reserve will decide on interest rates on September 17.

"While the probability of the Federal Reserve lowering rates by more than 50 basis points by year end remains below 50%, according to CME FedWatch, the bond market tells a different story," the XS.com analyst said.

The global selloff in long-dated bonds, Hasn explained, has highlighted deeper concerns about sticky inflation, widening government deficits, and rising political risks.

"This global bond rout underscores that gold's rise has less to do with Fed policy hopes and more with a broader deterioration in the economic outlook," he said.

The dollar index was at 97.98 points on Friday, down from 98.29 at around the same time on Thursday. Gold and the dollar generally have an inverse correlation.

In other commodities, Brent crude oil was priced at USD66.48 a barrel on Friday, slightly down from USD66.57 on Thursday. West Texas Intermediate was virtually flat at USD62.97 a barrel, compared to USD62.96.

The oil market was this week poised to record a weekly decline after rebounding for the previous two weeks, Exness analyst Li Xing said.

"Prices were retreating for a third consecutive day under the weight of mounting concerns about rising supply," Xing said.

Bearish signals from both the US and the Opec+ policy outlook could continue to overshadow geopolitical risks.

Official US crude oil inventories rose by 2.4 million barrels for the week that ended August 29 to 420.7 million barrels, the Energy Information Administration reported on Thursday.

"This directly contradicted analyst forecasts for a 1.8-million-barrel draw and bolstered the case for weakening domestic demand," Exness's Xing said.

Opec+ will hold a meeting to decide on production policy on Sunday.

"The organisation could decide to increase its oil production further," Xing said, noting: "Additional volumes could fuel a global supply surplus and weigh on prices."

In other metals, platinum was priced at USD1,384.96 an ounce on Friday, down from USD1,391.81 on Thursday. Palladium was quoted at USD1,125.51 an ounce, down from USD1,137.95.

In base metals, the copper price fell to USD9,890.00 per tonne from USD9,953.00. Aluminium slid to USD2,602.00 from USD2,614.50.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

Rayner to leave UK government after standards probe into tax affairs

2025-09-05T11:20:21Z

UK Deputy Prime Minister Angela Rayner is expected to leave government following an investigation into her tax affairs by Keir Starmer's independent standards adviser, it is understood.

The prime minister received the report by ethics watchdog Laurie Magnus on Wednesday morning.

The deputy prime minister has faced mounting pressure to stand down over recent days after admitting she underpaid stamp duty on a flat she bought in Hove earlier this year.

Rayner, who is also the Housing secretary, paid GBP40,000 less of the surcharge on the property than she should have, as she claimed it was her main home rather than a second home.

By David Lynch, Nina Lloyd and Sophie Wingate

Press Association: News

source: PA

LONDON MARKET MIDDAY: London stocks up; UK Deputy PM Rayner quits

2025-09-05T11:12:16Z

London stocks remained in the green around midday on Friday as news came out that Angela Rayner will quit as UK deputy prime minister and leave government, while China hits out at potential economic pressure from the US and oil prices slide ahead of an anticipated OPEC production increase announcement this weekend.

The FTSE 100 index was up 21.94 points, 0.2%, at 9,238.81. The FTSE 250 was up 58.36 points, 0.3%, at 21,533.04, and the AIM All-Share was up 5.31 points, 0.7%, at 767.31.

The Cboe UK 100 was up 0.2% at 926.41, the Cboe UK 250 was up 0.4% at 18,840.94, and the Cboe Small Companies was up 0.1% at 17,071.29.

Angela Rayner will resign as UK deputy prime minister, leave the government and resign as deputy leader of the Labour Party, news broke around noon on Friday.

Further, UK Investment Minister Baroness Poppy Gustafsson is preparing to leave her role less than a year after being appointed, Sky News reported on Friday, citing City Editor Mark Kleinman. A formal announcement could come as soon as Friday, the report said.

Her departure comes as the government continues efforts to attract more overseas investment into the UK, Sky noted.

Rachel Reeves will remain in place as chancellor, Sky News reported.

In European equities on Friday, the CAC 40 in Paris was slightly higher, while the DAX 40 in Frankfurt advanced 0.2%.

"Equity markets were quiet at the end of the week, albeit there is still a chance for a last-minute wobble if US jobs data delivers a shock," said AJ Bell analyst Russ Mould.

"Non-farm payrolls are expected to have grown by 75,000 in August, slightly above July's 73,000 figure. Investors are looking to see if the jobs market is hot or cold, as that will play a key role in the Fed's decision making on interest rates. Hot gives the Fed less reason to cut, cold does the opposite.

"Constant movement regarding tariffs in recent months have been a nightmare for businesses trying to plan for their future. Ongoing uncertainty has the potential to put a freeze on hiring, thereby depressing the labour market."

The pound was quoted up at USD1.3484 at midday on Friday in London, compared to USD1.3432 at the equities close on Thursday. The euro stood higher at USD1.1694, against USD1.1641. Against the yen, the dollar was trading down at JPY148.09 compared to JPY148.74.

Adnams was down 27% around midday in London.

The Southwold, Suffolk-based brewer, hotelier and wine seller posted a 5.7% drop in revenue to GBP0.1 million in the six months that ended June 30, from GBP31.9 million the previous year. Pretax loss narrowed to GBP1.5 million from GBP2.6 million.

Adnams attributed this to a downward trend in both the on- and off-trade markets of the pub sector, and noted a GBP1.2 million exceptional cost resulting from regulations which require producers to cover recycling costs.

Still, the company said that on-trade business was "stable against a very challenging backdrop where many free-trade pubs are struggling to stay in business."

On the FTSE 250, PPHE Hotel rose 1.8%.

The Amsterdam-based operator of Park Plaza and Art'otel hotels, among other brands, completed the acquisition of a development site near the City of London for GBP17.5 million. It bought the site via a subsidiary of its European Hospitality Fund.

The development is due to open in 2029, and will feature a Radisson RED lifestyle hotel with at least 182 bedrooms, a restaurant, bar and gym, and 41,000 square feet of office space. PPHE said it expects an all-in investment of around GBP90 million for the project, including the site acquisition price.

Metals One gained 7.0%.

The metals exploration and development company acquired a strategic stake in Evolution Energy Minerals Ltd, which owns the Chilalo graphite project in Tanzania.

Metals One bought 37.9 million Evolution shares from Marvel Gold Ltd at 1.10 Australian cents each, for a total consideration of AUD416,900 and an initial 10.45% stake in Evolution. Metals One will underwrite a portion of Evolution's rights issue at 1 cent per share for up to AUD530,000 of the total AUD1.5 million rights issue. Following both the underwriting and the share purchase, Metals One will hold up to around a 17.4% interest in Evolution.

Stocks in New York were called mixed. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 index up 0.2%, and the Nasdaq Composite 0.5% higher.

The yield on the US 10-year Treasury was quoted at 4.16%, narrowing from 4.20%. The yield on the US 30-year Treasury was quoted at 4.86%, trimmed from 4.90%.

Beijing said Friday it "strongly opposes" calls to put economic pressure on China, after US President Donald Trump urged European countries to do so over the war in Ukraine.

China has never denounced Russia's war nor called for it to withdraw its troops, and many of Ukraine's allies believe that Beijing has provided support to Moscow.

China insists it is a neutral party, regularly calling for an end to the fighting while also accusing Western countries of prolonging the conflict by arming Ukraine.

Meanwhile, China's commerce ministry said Friday it would impose temporary duties on EU pork imports, after an investigation found evidence of dumping. Beijing launched the probe last year during scrutiny by Brussels of Chinese state subsidies for the electric vehicle industry.

"Investigating authorities have preliminarily determined that imports of relevant pork and pig by-products originating in the EU are being dumped," a statement from China's commerce ministry said.

Authorities have decided to implement "provisional anti-dumping measures in the form of deposits", it added. The import duties range from 15.6% to 62.4% and will enter into force on September 10, the statement continued. The provisional measures are still subject to the commerce ministry investigation, which had already been extended until December.

Brent oil was quoted lower at USD66.74 a barrel at midday in London on Friday from USD67.02 late Thursday.

"Brent crude has been hit hard over the past two trading days, with fears over the US economy accompanied by expectations of another production increase from OPEC this Sunday," commented Rostro analyst Joshua Mahony.

"Notably, Putin's recent comments that he can see light at the end of the tunnel for the Russia-Ukraine war shouldn’t raise too many hopes as he has since said that any Western forces in the region would be deemed legitimate targets for his military. Whether that remains the case after a peace deal remains to be seen, but the Russian stance that Ukraine must be neutral after the war would stand in stark contrast to the European view that there should be a global Western coalition of military protecting Ukraine after the conflict ends."

Gold was quoted up at USD3,551.05 an ounce against USD3,543.56.

Still to come on Friday's economic calendar, US nonfarm payrolls figures at 1330 BST.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Eurozone economy stalls with just 0.1% rise in output and jobs

2025-09-05T09:23:28Z

Economic growth in the euro area slowed sharply in the second quarter of 2025, with both gross domestic product and employment rising by just 0.1% quarter-on-quarter, Eurostat said on Friday.

This marked a steep deceleration, despite being in line with the FXStreet-cited consensus, from the 0.6% GDP expansion in the first quarter, and came amid weaker household consumption, a drop in business investment, and declining exports.

Across the wider EU, GDP grew by 0.2% quarter-on-quarter, slowing from 0.5% in the previous three-month period.

Year-on-year, eurozone GDP rose by 1.5%, down from 1.6% in the first quarter but ahead of the 1.4% flash reading released on August 14. EU output increased by 1.6% annually, also slightly slower than the prior 1.7% gain.

Among individual member states, Denmark posted the strongest quarterly growth at 1.3%, followed by Croatia and Romania, both up 1.2%. Germany's economy shrank by 0.3%, while Finland and Italy also posted quarterly contractions.

Gross fixed capital formation fell by 1.8% in the eurozone, reversing strong gains from the prior quarter. Exports dropped by 0.5% and imports were flat. However, government spending increased by 0.5%, and household consumption edged up by 0.1%.

Employment in both the eurozone and the EU rose 0.1% quarter-on-quarter, after a 0.2% increase in the eurozone and flat growth in the EU in the previous quarter.

Year-on-year, employment was up 0.6% in the eurozone and 0.4% in the EU.

Eurostat estimated that 219.9 million people were employed in the EU in the second quarter, including 171.6 million in the eurozone.

Labour productivity per person improved by 0.8% in the euro area and 1.2% in the EU on a yearly basis. Based on hours worked, productivity rose 1.1% in the eurozone and 1.5% in the EU.

In the US, GDP rose by 0.8% quarter-on-quarter, rebounding from a 0.1% contraction in the first quarter. Year-on-year, the US economy expanded by 2.1%.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

China to impose temporary duties on EU pork over "dumping"

2025-09-05T09:18:24Z

China's commerce ministry said Friday it would impose temporary duties on EU pork imports, after an investigation found evidence of dumping.

Beijing launched the probe last year during scrutiny by Brussels of Chinese state subsidies for the electric vehicle industry.

"Investigating authorities have preliminarily determined that imports of relevant pork and pig by-products originating in the EU are being dumped," a statement from China's commerce ministry said.

Authorities have decided to implement "provisional anti-dumping measures in the form of deposits", it added.

The import duties range from 15.6% to 62.4% and will enter into force on September 10, the statement continued.

The provisional measures are still subject to the commerce ministry investigation, which had already been extended until December.

China and the EU have navigated a challenging relationship in recent years, complicated greatly by Russia's 2022 invasion of Ukraine.

Beijing has never denounced Russia's war nor called for it to withdraw its troops, and many of Ukraine's allies believe that China has provided support to Moscow.

China insists it is a neutral party, regularly calling for an end to the fighting while also accusing Western countries of prolonging the conflict by arming Ukraine.

Earlier on Friday, Beijing's foreign ministry said it "strongly opposes" calls by US President Donald Trump for European leaders to put economic pressure on China over the war in Ukraine.

source: AFP

Beijing rejects Trump call to pressure China on Ukraine

2025-09-05T08:23:59Z

Beijing said Friday it "strongly opposes" calls to put economic pressure on China, after US President Donald Trump urged European countries to do so over the war in Ukraine.

China has never denounced Russia's war nor called for it to withdraw its troops, and many of Ukraine's allies believe that Beijing has provided support to Moscow.

China insists it is a neutral party, regularly calling for an end to the fighting while also accusing Western countries of prolonging the conflict by arming Ukraine.

Speaking by video conference with European leaders gathered in Paris on Thursday, Trump urged them to put pressure on China, and also said "Europe must stop purchasing Russian oil that is funding the war", a senior White House official told AFP on condition of anonymity.

Asked Friday about Trump's comments, China's foreign ministry said Beijing was "neither creator of this (Ukraine) crisis nor a party to it".

"We firmly oppose the practice of constantly dragging China into the matter, and we strongly oppose the imposition of so-called economic pressure on China," spokesman Guo Jiakun told a press briefing.

Moscow and Beijing declared a "no limits partnership" shortly before Vladimir Putin ordered Russia's Ukraine offensive in February 2022, and economic and political ties have only deepened since.

China's President Xi Jinping stood next to Putin and North Korean leader Kim Jong Un at a huge military parade on Wednesday marking 80 years since the end of World War II, a move criticised by the EU's top diplomat, among others.

Beijing has said its invitation of "foreign guests" was in order to "work together with peace-loving countries and peoples to remember history".

Asked twice by a journalist on Friday to answer "yes" or "no" as to whether China considered Putin's Russia a "peace-loving country", spokesman Guo declined to directly answer.

source: AFP

LONDON MARKET OPEN: European stocks rise as UK retail sales speed up

2025-09-05T08:02:48Z

European stocks opened higher on Friday, as average UK house prices reach a record high and UK retail sales improved despite the looming autumn budget causing consumer uncertainty.

The FTSE 100 index opened up 22.84 points, 0.3%, at 9,239.71. The FTSE 250 was up 67.35 points, 0.3%, at 21,542.03, and the AIM All-Share was up 3.47 points, 0.5%, at 765.47.

The Cboe UK 100 was up 0.2% at 926.48, the Cboe UK 250 was up 0.3% at 18,834.57, and the Cboe Small Companies was flat at 17,047.78.

UK retail sales accelerated ahead of expectations in July following continued good weather, but fell short of consensus on an annual basis, the Office for National Statistics reported on Friday.

Total retail sales volumes are estimated to have risen by 0.6% in July, accelerating from an increase of 0.3% in June and comfortably beating an FXStreet-cited consensus for 0.2% growth in July.

Sales volumes improved 1.1% over the year to July, accelerated from 0.9% growth in the year to June, but falling short of an FXStreet-cited consensus for 1.3% growth.

"The sun came out, but shoppers stayed cautious. Retail sales fell for the first time in four months, by 0.6%, with early gains from the Euros, warm weather and popular cultural moments like the Oasis tour, fading by mid-month," commented Alice Crowley, managing director in Accenture's Retail Practice.

The main drivers of this fall was a dip in spending at food and toy stores, on sports equipment, and at household goods stores. However, clothing in particular, was bright spot- rising by 2.5% over the month and 5.5% over the year...But spending on essentials and food slowed overall- a sign that many households are still keeping a close eye on their budgets.

"Many retailers will be feeling the pinch as the Autumn season kicks off. The continued squeeze from rising wage bills and business rates are putting pressure on margins, and the upcoming Autumn budget could mean further uncertainty in their cost base."

In European equities on Friday, the CAC 40 in Paris gained 0.2%, while the DAX 40 in Frankfurt was slightly higher.

The pound was quoted up at USD1.3457 early on Friday in London, compared to USD1.3432 at the equities close on Thursday. The euro stood higher at USD1.1672, against USD1.1641. Against the yen, the dollar was trading down at JPY148.23 compared to JPY148.74.

The average UK house price rose for the third consecutive month in August to a record high, though the rate of growth slowed slightly from the month prior, Halifax reported on Friday.

The Halifax house price index found that the average UK house price increased by 0.3% to a new record high of GBP299,331, slowed slightly from a 0.4% growth in July to GBP298,237 and slowed against the 0.6% rise reported for August 2024. It was a sharper growth in August than the FXStreet-cited consensus of 0.1%.

The average house price is now 2.2% higher over the past year, easing from a 2.5% annual growth rate in July, but above the market consensus of 2.0%.

Ashmore Group fell 7.3% at London's market open.

The emerging markets-focused asset manager said net outflows totalled USD5.8 billion in the year to June 30, abating from USD8.5 billion reported a year ago. Ashmore put this down to a fall in redemptions. Gross redemptions totalled USD12.3 billion, reduced from USD15.7 billion the prior year. Subscriptions edged slightly lower to USD6.5 billion from USD7.2 billion.

Assets under management declined 3% to USD47.6 billion at June 30 from USD49.3 billion 12 months earlier. The net outflow was slightly offset by a USD4.1 billion boost from a "positive investment performance". Ashmore's pretax profit declined 15% on-year to GBP108.6 million from GBP128.1 million. Revenue fell 24% to GBP144.4 million from GBP189.0 million.

At the other end, Gear4music jumped 11%.

The York, England-based online retailer of musical instruments and equipment said revenue for the first quarter that ended June 30 was 27% higher than the year before with traction continuing in the second quarter to date. As a result, Gear4music has "sufficient confidence to once again increase its expectations for the group's financial performance" for the year ended March 31, 2026.

The firm did not on Friday provide its upgraded guidance figures, but noted a current company-compiled consensus for financial 2026 put revenue at GBP155.8 million, pretax profit at GBP3.0 million, and earnings before interest, tax, depreciation and amortisation at GBP11.3 million. This compared to GBP146.7 million in revenue, GBP1.6 million in pretax profit, and GBP10.0 million in Ebitda in financial 2025.

Peel Hunt gained 11%.

The London-based investment bank and stock broker said it has made a "strong start" to the current financial year, which runs to the end of March. The firm said it has acted on "a number of substantial [mergers & acquisitions] transactions" in its Investment Banking division.

Peel Hunt said it has seen nascent equity capital markets activity in recent weeks, where it has supported clients on equity raises and block trades. It said revenue in the Execution Services business is "encouraging and materially ahead" of the prior year. As a result, it expects to deliver full-year results ahead of expectations.

In Asia on Friday, the Nikkei 225 index in Tokyo rose 1.0%. In China, the Shanghai Composite improved 1.2%, while the Hang Seng index in Hong Kong advanced 1.4%. The S&P/ASX 200 in Sydney closed up 0.5%.

In the US on Thursday, Wall Street ended in the green, with the Dow Jones Industrial Average rising 0.8%, the S&P 500 also improving 0.8% and the Nasdaq Composite gaining 1.0%.

The yield on the US 10-year Treasury was quoted at 4.17%, narrowing from 4.20%. The yield on the US 30-year Treasury was quoted at 4.86%, trimmed from 4.90%.

Brent oil was quoted lower at USD66.70 a barrel early in London on Friday from USD67.02 late Thursday. Gold was quoted slightly higher at USD3,548.66 an ounce against USD3,543.56.

Still to come on Friday's economic calendar, Irish unemployment data at 1100 BST, followed by US nonfarm payrolls figures at 1330 BST.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

German factory orders decline in July after high volume orders in June

2025-09-05T07:23:29Z

New orders in German manufacturing were down from both a month and a year ago in July, data published by the Federal Statistical Office showed Friday.

New orders in manufacturing fell 2.9% monthly in July after a decline of just 0.2% in June, the latter upwardly revised from a 1.0% contraction. The consensus was for growth of 0.5% in July.

On-year, new orders in manufacturing were down 3.4% in July, compared to growth of 1.7% in June which was revised up from 0.8%.

The statistical office noted a 39% monthly fall in July in new orders in the manufacture of other transport equipment, which includes aircraft, ships, trains and military vehicles, following a high volume of large-scale orders in June.

Further, there was a 17% drop in new orders in the manufacture of electrical equipment sector.

Meanwhile, new orders in the automotive industry were up 6.5% monthly in July.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

LONDON BRIEFING: Ashmore profit declines; Tullow Oil names new CEO

2025-09-05T07:05:20Z

London's FTSE 100 opened slightly higher on Friday, as a UK retail sales reading outperformed market expectations and UK average house prices reached a new record high.

In early corporate news, Ashmore reports a decline in profit during its most recent financial year, and Tullow Oil taps Ian Perks as its new chief executive officer.

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

----------

MARKETS

----------

FTSE 100: opened 0.1% higher at 9,224.09

GBP: up at USD1.3458 (USD1.3432 at previous London equities close)

----------

ECONOMICS

----------

UK retail sales accelerated ahead of expectations in July following continued good weather, but fell short of consensus on an annual basis, the Office for National Statistics reported on Friday. Total retail sales volumes are estimated to have risen by 0.6% in July, accelerating from an increase of 0.3% in June and comfortably beating an FXStreet-cited consensus for 0.2% growth in July. Sales volumes improved 1.1% over the year to July, accelerated from 0.9% growth in the year to June, but falling short of an FXStreet-cited consensus for 1.3% growth. Sales volumes fell 0.6% in the three months to July against the three months to April. This followed four months of consecutive quarterly growth, largely due to declines in food stores, sports equipment, games and toys stores, and household goods stores. These were partly offset, however, by an increase in non-store retailing, which are predominantly online retailers, the ONS explained. Food store sales rose 2.5% in July to their highest level since February 2022, boosted by good weather and events such as the Union of European Football Associations Women's Euro 2025 tournament. Food store sales had increased 0.7% in June. The ONS noted that the UK had its fifth warmest July on record this year, according to the Met Office climate summaries. Non-food store sales volumes grew 0.6% during July, speeding up from 0.2% growth in June, in the largest annual rise since January 2023. The ONS said the rise was partly driven by the launch of new products.

----------

The average UK house price rose for the third consecutive month in August to a record high, though the rate of growth slowed slightly from the month prior, Halifax reported on Friday. The Halifax house price index found that the average UK house price increased by 0.3% to a new record high of GBP299,331, slowed slightly from a 0.4% growth in July to GBP298,237 and slowed against the 0.6% rise reported for August 2024. It was a sharper growth in August than the FXStreet-cited consensus of 0.1%. The average house price is now 2.2% higher over the past year, easing from a 2.5% annual growth rate in July, but above the market consensus of 2.0%. Northern Ireland saw the UK's strongest annual price growth again, with the average house price increasing 8.1% to GBP217,082. Scotland recorded 4.9% annual growth in August to an average of GBP215,594, while property prices in Wales rose 1.6% to GBP227,786. The North East and North West of England, alongside Yorkshire & the Humber, all reported annual growth above 4%. The South West of England, on the other hand, saw prices fall 0.8% over the past year, making it the first UK nation or region to record an annual decline since Eastern England in July 2024. London property prices edged up 0.8% on-year, with an average property value of GBP541,615.

----------

BROKER RATINGS

----------

Peel Hunt cuts Admiral to 'sell' (reduce) - price target 2,350 (2,270) pence

----------

Barclays cuts Apax Global Alpha to 'equal weight' - price target 165 (181) pence

----------

Goldman Sachs reinitiates Aviva with 'buy' - price target 736 pence

----------

COMPANIES - FTSE 100

----------

Berkeley Group says trading in the first four months of its financial year has been "stable", and confirms it is on track to report pretax earnings in line with its GBP450 million forecast for the year ending April 30, 2026. The housebuilder says 85% of its guided pretax earnings is already secured through exchange sales contracts, and the firm remains on target to achieve a similar level of profit in financial 2027. Berkeley anticipates pretax profit to be weighted "broadly evenly" between the first and second half of the year, subject to timing of completions. The company returned GBP121 million to shareholders during the four months to August 31 via the acquisition of 3.3 million shares at an average price of GBP37.20 each. Berkeley has now completed its first target of GBP260 million returned to shareholder under the Berkeley 2035 strategy, which was launched in December. It now targets a further GBP640 million by September 2030, to be made via both share buybacks and dividends. Berkeley targets net cash of around GBP300 million at April 30, 2026. "The government is now increasingly focused on addressing the regulatory and viability challenges facing London's housing industry, which we are confident it can resolve through collaboration with the sector and applying the same single-minded determination to deliver the necessary change that has been so successful in driving its wider planning reforms," says Berkeley.

----------

COMPANIES - FTSE 250

----------

Ashmore Group reports pretax profit of GBP108.6 million for the year that ended June 30, falling 15% from GBP128.1 million the year before, as total revenue declines 24% to GBP144.4 million from GBP189.0 million. Assets under management as of July 14 total USD47.6 billion, down 3.4% on-year from USD49.3 billion. Net outflows for the year are USD5.8 billion, 32% lower than USD8.5 billion a year prior. The firm maintains its final dividend at 12.1 pence per share, leaving its total dividend for the year unchanged on-year at 16.9p. "Ashmore's active investment processes are delivering outperformance for clients against a positive backdrop for emerging markets, and its distribution team is active around the world with both existing clients and potential investors, emphasising the need to deploy more capital to capture the favourable trends evident across emerging markets," says Chief Executive Officer Mark Coombs. "Ashmore is therefore well-positioned to capture flows as investors shift allocations away from the US, including to the emerging markets that offer superior growth and higher risk-adjusted returns over the medium term."

----------

OTHER COMPANIES

----------

Peel Hunt expects to deliver full-year results ahead of market expectations, despite "challenging market conditions". Within its Investment Banking segment, the company has acted on "a number of substantial [mergers and acquisitions] transactions. Peel Hunt notes its corporate franchise now includes five FTSE 100 companies and 53 FTSE 250 companies, and "in recent weeks we have seen nascent ECM activity where we have supported our clients on a number of equity raises and block trades", it adds. Revenue in its Execution Services business are "also encouraging" and "materially ahead" of the year before, the company says. Peel Hunt will provide a further update for the first six months of its financial year on October 1.

----------

Tullow Oil names Ian Perks as its new chief executive officer, to join the board on September 15. Current Chief Financial Officer & interim CEO Richard Miller will return to his role as CFO. Perks has 30 years of experience in the upstream oil and gas sector. He was formerly the senior vice president for Mozambique liquified natural gas at Anadarko, led divisions of BG Group, and was the president of BG Tunisia. "My near term priority will be to work with Richard, the Tullow team and our stakeholders to put the company on a long-term sustainable financial footing," says incoming CEO Perks. "We will then have an opportunity to grow the company across Africa, leveraging our current assets and reputation on the continent of Africa to add value for our stakeholders."

----------

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Ashmore assets under management decline but outflows abate

2025-09-05T06:58:15Z

Ashmore Group PLC on Friday reported a decline in assets under management, though the emerging markets-focused firm said net outflows eased in the financial year just ended.

Gross redemptions totalled USD12.3 billion, reduced from USD15.7 billion the prior year. Subscriptions edged slightly lower to USD6.5 billion from USD7.2 billion.

"Ashmore's strategy is aligned with the opportunities in emerging markets and the consistent business model mitigates the impact of market cycles over the longer term. This year, the Group has delivered net inflows into equities, local offices and IG strategies, and continued to invest in initiatives to diversify and to deliver future growth, including using the strength of its balance sheet to increase seed capital investments and expanding the local office network in Latin America and the Middle East," Chief Executive Officer Mark Coombs said.

"Ashmore's active investment processes are delivering outperformance for clients against a positive backdrop for emerging markets, and its distribution team is active around the world with both existing clients and potential investors, emphasising the need to deploy more capital to capture the favourable trends evident across emerging markets. Ashmore is therefore well-positioned to capture flows as investors shift allocations away from the US, including to the emerging markets that offer superior growth and higher risk-adjusted returns over the medium term."

Ashmore's pretax profit declined 15% on-year to GBP108.6 million from GBP128.1 million. Revenue fell 24% to GBP144.4 million from GBP189.0 million.

Hitting its earnings, performance fees earned more than halved to GBP10.2 million from GBP22.7 million while management fees declined 19% to GBP131.7 million from GBP162.6 million.

Ashmore maintained its final dividend at 12.1 pence per share, meaning an unchanged total annual dividend at 16.9p.

Looking ahead, it said: "In the context of geopolitical uncertainty and heightened asset price volatility, active management remains critical to identify and act upon attractive valuations in order to deliver longer-term outperformance. Ashmore is well-positioned to navigate the current environment for its clients and to facilitate the investment of capital flows as portfolios are rebalanced."

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UK monthly house price rise slows to 0.3%, hits record average value

2025-09-05T06:18:55Z

The average UK house price rose for the third consecutive month in August to a record high, though the rate of growth slowed slightly from the month prior, Halifax reported on Friday.

The average house price is now 2.2% higher over the past year, easing from a 2.5% annual growth rate in July, but above the market consensus of 2.0%.

"Affordability remains a challenge, but there are signs of improvement. Interest rates have been on a gradual downward path for nearly two years, and many of the most competitive fixed-rate mortgage deals now offer rates below 4%," said Amanda Bryden, head of mortgages at Halifax.

"Combined with strong wage growth – which has outpaced house price inflation for nearly three years – this is giving more prospective buyers the confidence to take the next step. Summer is typically a quieter period for the market, so the recent rise in mortgage approvals to a six-month high is an encouraging sign of underlying demand.

"While the wider economic picture remains uncertain, the housing market has shown over recent years that it can take these challenges in its stride. Supported by improving affordability and resilient demand, we expect to see a slow but steady climb in property prices through the rest of this year."

Northern Ireland saw the UK's strongest annual price growth again, with the average house price increasing 8.1% to GBP217,082.

Scotland recorded 4.9% annual growth in August to an average of GBP215,594, while property prices in Wales rose 1.6% to GBP227,786.

The North East and North West of England, alongside Yorkshire & the Humber, all reported annual growth above 4%.

The South West of England, on the other hand, saw prices fall 0.8% over the past year, making it the first UK nation or region to record an annual decline since Eastern England in July 2024.

London property prices edged up 0.8% on-year, with an average property value of GBP541,615.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 called up as retail footfall sinks

2025-09-05T05:54:42Z

London blue chips were set to round off the week with a higher open on Friday, as new data showed UK retail footfall declined during August and US President Donald Trump announced he has cut the tariff rate on Japanese cars.

IG says futures indicate the FTSE 100 to open up 21.1 points, 0.2%, at 9,237.97 on Friday. The index of London large-caps closed up 38.88 points, 0.4%, at 9,216.87 on Thursday.

UK retail footfall declined at the same on-year pace in August as in July, data published by BRC-Sensormatic showed Friday.

Total UK retail footfall was down 0.4% in August compared to a year ago, the same pace of decline as in the previous month. High Street footfall was up 1.1% on-year in August, recovering from a 1.7% contraction in July. Retail Park footfall, meanwhile, fell 1.1% in August after 1.7% growth in July.

"The last budget imposed GBP7 billion in new costs which has limited retailers' ability to invest in local communities," commented Helen Dickinson, chief executive of the British Retail Consortium. "The government's planned reduction of business rates for retail and hospitality premises is the golden opportunity to change this, and the chancellor must use the budget to ensure that no shop pays more as a result of reforms."

Sterling was quoted at USD1.3453 early Friday, higher than USD1.3432 at the London equities close on Thursday.

The euro traded at USD1.1671 early Friday, up from USD1.1641 late Thursday. Against the yen, the dollar was quoted down at JPY148.20 versus JPY148.74.

The average rent being advertised across the Britain hit a record high of GBP1,577 per month in August, according to a property website.

Average advertised rents were 3% higher than a year earlier, with a constrained supply of homes contributing to rising rents, Rightmove said.

While the number of available homes to rent across Britain is 8% higher than a year earlier, it is still 27% lower than in August 2019, the website added.

Meanwhile, UK businesses spent nearly GBP236,000 each on artificial intelligence in the past year as they look to get ahead in the race to embrace the new technology, according to a report.

The latest Barclays business prosperity index survey found that large corporates with more than 250 workers invested the most – at an average of GBP400,000 on AI and emerging technologies over the past 12 months – compared with GBP225,500 from medium firms and GBP125,250 from small companies.

More than two thirds – 68% – of all businesses are also looking to increase this spend in the coming year as the AI revolution shows no sign of slowing.

The poll of 1,000 decision makers at firms found that almost 9 in 10 companies are turning to AI to solve key business issues, such as energy costs and infrastructure – with 32% having already hired or currently hiring for AI-focused roles and 42% planning to do so.

In the US on Thursday, Wall Street ended in the green, with the Dow Jones Industrial Average rising 0.8%, the S&P 500 also improving 0.8% and the Nasdaq Composite gaining 1.0%.

In Asia on Friday, the Nikkei 225 index in Tokyo advanced 0.8%. In China, the Shanghai Composite edged up 0.4%, while the Hang Seng index in Hong Kong was 0.9% higher. The S&P/ASX 200 in Sydney was up 0.6%.

US President Donald Trump signed an order Thursday to lower tariffs on Japanese autos, as Washington moves to implement its trade pact negotiated with Tokyo.

Japanese autos will face a 15% tariff instead of the current 27.5%, while the level for many other goods will similarly be capped at 15%, according to the text of the executive order published by the White House.

Gold was quoted up at USD3,556.69 an ounce early Friday, against USD3,543.56 on Thursday. Brent oil was trading at USD66.82 a barrel early Friday, lower than USD67.02 late Thursday.

In Friday's corporate calendar, a trading statement from housebuilder Berkeley Group and full year results from investment management firm Ashmore.

In the economic calendar on Friday, the Halifax UK house price index will be out shortly, as will UK retail sales figures, with US nonfarm payrolls figures to follow later.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Pace of annual UK retail footfall decline unchanged in August — BRC

2025-09-04T23:06:58Z

UK retail footfall declined at the same on-year pace in August as in July, data published by BRC-Sensormatic showed Friday.

Total UK retail footfall was down 0.4% in August compared to a year ago, the same pace of decline as in the previous month.

High Street footfall was up 1.1% on-year in August, recovering from a 1.7% contraction in July.

Retail Park footfall, meanwhile, fell 1.1% in August after 1.7% growth in July.

Footfall in general saw the sharpest fall in Wales with a 2.6% drop, followed by declines of 1.7% in Northern Ireland, 0.4% in Scotland and 0.2% in England.

Notably in Birmingham, retail footfall was up 6.2% in August, after growth of 2.6% in July. Sheffield had the second-best growth of 5.7% in August, slowed from 7.3% in July. Manchester came third with an unchanged growth rate of 3.9% in August.

Helen Dickinson, chief executive of the British Retail Consortium, said: "Despite a modest improvement for high streets, overall retail footfall declined in August for a fourth consecutive month.

"Sunny weather encouraged shoppers back to town and city centres, with most cities reporting positive growth. Sheffield joined Birmingham and Manchester as the country's top performers. However, the same sunshine did not provide a boost to retail parks and shopping centres, with the former returning to negative territory after a successful July."

She added: "The last budget imposed GBP7 billion in new costs which has limited retailers' ability to invest in local communities. The government's planned reduction of business rates for retail and hospitality premises is the golden opportunity to change this, and the chancellor must use the budget to ensure that no shop pays more as a result of reforms.

"This would enable retailers to invest more in our local communities, support local jobs, and relieve pressure on prices."

Andy Sumpter, retail consultant EMEA for Sensormatic, said: "For many, winning business hinges on service, which requires labour — and labour is more expensive than ever. The sector is resilient, but resilience alone won't reignite momentum. To avoid flatlining becoming a new kind of normal, we need a spark.

"Whether that comes from innovation, creativity, or external support/investment, one thing's clear: a nation of shopkeepers still needs its shoppers."

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Broadcom shares up modestly on earnings beat, AI sales impress

2025-09-04T20:53:59Z

Broadcom Inc on Thursday said it swung to a third quarter net profit, as AI sales climbed.

Shares in the Palo Alto, California-based chipmaker were up 0.9% after hours in New York on Thursday. They earlier closed up 1.2% at USD306.10.

Adjusted earnings per share of USD1.69 beat the USD1.65 LSEG consensus.

Revenue was USD15.95 billion, up 22% from USD13.07 billion. The headline number came in ahead of consensus of USD15.83 billion. AI revenue growth surged 63% on-year to USD5.2 billion.

Consolidated revenue grew 22% year-over-year to a record USD16.0 billion. Adjusted earnings before interest, taxes depreciation and amortisation increased 30% year-over-year to USD10.7 billion, reflecting strong operating leverage.

Free cash flow was a record USD7.0 billion, up 47% year-over-year.

The company has declared a third quarter dividend of USD0.59, up from USD0.53 last year.

Looking ahead, Broadcom expects fourth quarter revenue at about USD17.4 billion and an adjusted Ebitda margin at 67%.

In the fourth quarter of 2024, Broadcom reported revenue of USD14.05 billion, up 51% on year. Adjusted Ebitda margin was 65%.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

lululemon shares slide as cuts guidance amid ongoing US sales struggle

2025-09-04T20:51:56Z

lululemon Athletica Inc on Thursday cut its annual sales and earnings guidance as weak US sales held back second quarter revenue.

The troubled Vancouver, Canada-based athletic apparel retailer said net income fell to USD370.9 million in the three months to August 3 from USD392.2 million the year prior.

Diluted earnings per share dropped to USD3.10 from USD3.15 beating FactSet guidance of USD2.96 but sales fell short of hopes.

Revenue rose to USD2.53 billion from USD2.37 billion, missing FactSet consensus of USD2.54 billion.

Comparable sales increased 1% overall with a 4% decrease in the Americas and 15% growth in International.

Chief Financial Officer Meghan Frank said: "In the second quarter, we exceeded expectations on EPS, but revenue fell short of our guidance driven predominantly by our US business. We are also navigating industry-wide challenges, including higher tariff rates. In light of these dynamics, we are revising our full year outlook."

For the third quarter of 2025, lululemon expects revenue of USD2.47 billion to USD2.50 billion, with diluted EPS of USD2.18 to USD2.23.

For 2025, the company expects revenue of USD10.85 billion to USD11.00 billion, down from a range of USD11.15 billion and USD11.30 billion, before, and would be annual growth of 3% to 4%.

Diluted EPS is now expected at USD12.77 to USD12.97 for the year compared to between USD14.58 and USD14.78 before.

In response, shares in lululemon slumped 13% to USD179.37 in after hours trading in New York on Thursday. They had earlier closed up 3.8%.

Chief Executive Calvin McDonald said: "We are disappointed with our US business results and aspects of our product execution. We have closely assessed the drivers of our underperformance and are continuing to take the necessary actions to strengthen our merchandise mix and accelerate our business. We feel confident in the opportunity ahead and plans we have in place to drive long-term growth."

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

NEW YORK MARKET CLOSE: Shares higher ahead of nonfarms report

2025-09-04T20:27:44Z

Shares ended higher in New York on Thursday, ahead of Friday's nonfarm payrolls report, as a slew of data prints pointed to a September rate cut from the Fed.

The Dow Jones Industrial Average closed up 350.06 points, 0.8%, at 45,621.29. The S&P 500 rose 53.82 points, 0.8%, to 6,502.08. The Nasdaq Composite ended up 209.97 points, 1.0%, at 21,707.69.

Payroll firm ADP on Thursday said businesses added just 54,000 jobs amid signs of labour market cooling and persistent economic uncertainty.

The figure came in well below July's upwardly revised total of 106,000 and marked the smallest gain in five months. It also missed FXStreet-cited expectations of 65,000.

Citi analyst Veronica Clark expects Friday's nonfarm payrolls to show continued gradual weakening in the jobs market with 45,000 payrolls added and the unemployment rate rising to 4.3% with upside risk.

"This should be soft enough to all but ensure a rate cut from the Fed in September," she thinks.

Separately, the US Department of Labor reported that the latest number of new unemployment insurance claims was 237,000 in the week to August 30, an increase of 8,000 from an unrevised 229,000 a week prior.

The latest reading topped the consensus of 230,000.

Continuing jobless claims fell to 1.940 million in the week to August 23, from 1.944 million a week prior, the latter which was revised down from 1.954 million.

Analysts at Oxford Economics said "the level of continue claims remains elevated, and signals that unemployed workers are finding it tough to find a job in a labor market where hiring is slow."

They added: "Sluggish hiring has been offset by low levels of layoffs, but the latest Beige Book and JOLTS reports showed that may be changing. With downside risks to the labor market mounting, we expect the Federal Reserve will cut interest rates in September. Although, with inflation still running above target, we expect them to move cautiously after the first rate cut."

Elsewhere, the Institute for Supply Management US services PMI rose to 52.0 in August from 50.1 in July, signalling the third straight month of expansion.

The business activity index increased to 55.0 from 52.6, while the new orders index surged to 56.0 from 50.3. However, the employment index remained in contraction at 46.5, the third month below the breakeven 50-point mark.

Pantheon Macro analysts commented: "The solid increase in the headline index was partly due to a 2.4-point gain in the business activity component to 55.0 - a five-month high - from 52.6 in July. Meanwhile, the new orders index leapt by 5.7 points to 56.0 - the strongest reading since October - from 50.3. Those jumps close some of the recent gaps with the comparable components of the S&P Global services PMI, which have painted a much stronger picture of the services sector in recent months."

But the economists take a dim view of the report as "the headline index has been an unreliable guide to actual growth in services spending over the past few years".

Their main takeaway is "that growth probably is stabilizing, following its abrupt slowdown in the first half of this year," though it casts doubt on a "sharp re-acceleration" in spending given the labor market, pressure on real incomes from tariffs and weaker consumer sentiment.

On Thursday, S&P said its Global US Services PMI business activity index slipped to 54.5 points in August from 55.7 in July, below the earlier flash estimate of 55.4 published last month.

While the rate of growth moderated, it remained the second-highest recorded so far in 2025, and well above the 50.0 point threshold separating expansion from contraction.

Finally, the US trade deficit ticked up 33% to USD78.3 billion in July, higher than the FXStreet-cited consensus of USD75.7 billion.

The US Census Bureau and the US Bureau of Economic Analysis report showed exports edged up 0.3% monthly in July to USD280.5 billion, however imports climbed 5.9% to USD358.8 billion.

On the corporate front, Salesforce shares sank on Thursday after weak guidance overshadowed strong second quarter earnings.

Late Wednesday, Salesforce said quarterly revenue increased by 9.8% to USD10.24 billion, ahead of FactSet consensus of USD10.14 billion Subscription and support sales climbed 11% to USD9.69 billion, beating USD9.60 billion consensus.

But shares ended 4.9% lower on Thursday as it guided third quarter of USD10.24 billion to USD10.29 billion, compared to market consensus of USD10.29 billion.

HPE shares ended up 1.5% on Thursday despite a decline in third quarter earnings, as revenue surged past consensus and guidance pleased investors.

After the bell on Wednesday, HPE said net earnings in the three months to July 31 fell to USD276 million from USD512 million a year prior. Total revenue climbed 19% to USD9.14 billion from USD7.71 billion in the prior year period, ahead Yahoo-cited consensus of USD8.35 billion.

Home Depot on Thursday said its subsidiary SRS Distribution had closed its USD5.5 billion takeover of GMS announced in June.

GMS is a distributor of specialty building products including drywall, ceilings, steel framing and other products related to remodeling and construction projects in residential and commercial end markets. US and Canadian regulatory approval was received in August.

Home Depot closed up 1.6%.

Atlassian on Friday announced a USD610 million deal to acquire The Browser Company, developer of the Arc and Dia browsers.

Atlassian said the acquisition will help integrate Dia as the "AI browser for work," optimised for SaaS applications and equipped with contextual AI tools and personal work memory.

The deal is expected to close in the second quarter of Atlassian's 2026 fiscal year.

Atlassian ended down 1.5%.

Late Thursday, the US 10-year Treasury was at 4.16%, down from 4.22% on Wednesday. The yield on the US 30-year Treasury was at 4.85%, narrowed from 4.90%.

The pound traded at USD1.3436 late Thursday, little changed from USD1.3439 at the New York close on Wednesday. The euro eased to USD1.1653 from USD1.1658. Against the yen, the dollar was at JPY148.49, up from JPY148.11 on Friday.

Gold was quoted at USD3,549.44 an ounce late on Thursday, down from USD3,564.17 on Wednesday.

Brent was quoted at USD66.82 a barrel on Thursday, down from USD67.55 on Wednesday. West Texas Intermediate fell to USD63.31 from USD63.95.

In Europe, the FTSE 100 closed up 0.4% in London. The CAC 40 fell 0.3% in Paris. The DAX 40 in Frankfurt rose 0.7% in Frankfurt.

In Asia, the Nikkei 225 in Tokyo gained 1.5%. In China, the Shanghai Composite declined 1.3%, while the Hang Seng Index closed down 1.1% in Hong Kong. The S&P/ASX 200 rose 1.0% in Sydney.

Friday's corporate calendar has a trading statement from Fastena.

The global economic diary has US nonfarm payrolls, Japan household spending and eurozone GDP.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: FTSE 100 gains while Currys provides retail tonic

2025-09-04T15:59:44Z

The FTSE 100 forged ahead on Thursday as the bond market calmed further and investors looked ahead to Friday's US nonfarm payrolls figures as hopes build for a rate cut across the pond.

The FTSE 100 index closed up 38.88 points, 0.4%, at 9,216.87. The FTSE 250 ended 161.61 points higher, 0.8%, at 21,474.68 but the AIM All-Share finished down 6.47 points, 0.8%, at 762.00.

The Cboe UK 100 ended up 0.4% at 924.50, the Cboe UK 250 closed 0.7% higher at 18,772.69 but the Cboe Small Companies fell 0.2% to 17,048.40.

In Europe, the CAC 40 in Paris ended down 0.2%, while the DAX 40 in Frankfurt closed 0.7% higher.

"The FTSE 100 pushed ahead as bond markets calmed down and the focus shifted to US jobs data," said AJ Bell investment director Russ Mould.

The yield on the US 10-year Treasury was quoted at 4.20%, narrowed from 4.22% on Wednesday. The yield on the US 30-year Treasury was quoted at 4.90%, trimmed from 4.91%.

In the UK, the yield on 10-year gilts eased to 4.73% compared to 4.76% at the same time on Wednesday.

Ahead of Friday's nonfarm payrolls report, figures showed US private sector job growth slowed sharply in August.

According to payroll firm ADP businesses added just 54,000 jobs amid signs of labour market cooling and persistent economic uncertainty.

The figure came in well below July's upwardly revised total of 106,000 and marked the smallest gain in five months. It also missed FXStreet-cited expectations of 65,000.

"This should be soft enough to all but ensure a rate cut from the Fed in September," she thinks.

Elsewhere, the Institute for Supply Management US services PMI rose to 52.0 in August from 50.1 in July, signalling the third straight month of expansion.

Analysts at TD Economics said the surge in new orders was "encouraging", although the report "wasn't without blemishes, with an employment index that remained in contractionary territory for the third month in a row being the main fly in the ointment."

But with the Fed now putting more emphasis on softening labour market conditions, the subdued performance of the employment subcomponent in the report lines up with a host of other data favouring a rate cut at next month's FOMC meeting, TD analysts added.

In New York, at the time of the London equities market close, the Dow Jones Industrial Average was up 0.3%, as was the Nasdaq Composite, while the S&P 500 firmed 0.4%.

The pound eased to USD1.3432 late on Thursday afternoon in London, compared to USD1.3448 at the equities close on Wednesday. The euro ebbed to USD1.1641, against USD1.1679. Against the yen, the dollar was trading higher at JPY148.74 compared to JPY147.95.

In the UK, figures showed the UK's construction sector remained in contraction in August, with activity falling for the eighth consecutive month, led by steep declines in the housing and civil engineering sectors.

The headline S&P Global UK construction purchasing managers' index rose to 45.5 points in August from 44.3 in July – which had marked a more than five-year low – but remained well below the neutral 50.0-point mark that separates growth from contraction.

On the FTSE 100, insurers and asset managers which had suffered from the spike in bond yields, rallied, with Aviva up 2.5%, M&G up 1.9% and Beazley up 2.1%. Admiral bucked the trend, down 2.2% as it traded ex dividend.

Retailers were a warm order, with Next up 2.3% and Tesco up 1.8%. On the FTSE 250, Asos gained 3.0%.

Also on the FTSE 250, another retailer led the way as Currys shot up 17% after a triple dose of good news.

The London-based electricals retailer won plaudits as it delivered strong trading, a positive pension review outcome and a larger than expected GBP50 million share buyback.

Currys said group like-for-like sales rose 3% in the 17 weeks to August 30.

UK & Ireland LFL revenue increased by 3% with "robust" sales driven by market share gains and double-digit growth in new categories and business-to-business. Nordics LFL revenue rose 2% with sales growth driven by AI computing and success in new categories such as robotic lawnmowers and vacuums.

Berenberg analyst Adam Tomlinson said the encouraging top-line momentum means the group sustained growth in both territories for the first time in four years.

In addition, Currys said the triennial pension review had been completed with the actuarial deficit as of March 31 reduced to GBP134 million from GBP403 million as of March 31 2022.

Panmure Liberum analyst Wayne Brown said the completion of the review is "not only earlier than expected, but it is on much better terms than we had been expecting."

Also in the green, Basingstoke-based animal biotechnology and genetics company Genus which leapt 10% as it hailed "good second half momentum" that boosted annual earnings.

Pretax profit in the year ended June 30 jumped to GBP28.5 million from GBP5.5 million. Revenue was 0.6% higher at GBP672.8 million from GBP668.8 million.

For the new financial year, Genus expects "significant growth" in adjusted pretax profit at constant currency, in line with current market expectations, which it puts at GBP79.0 million.

Peel Hunt lifted its price target for Genus to 3,200 pence from 3,100p, with a 'buy' rating.

The broker noted there was "lots to like" about the stock, as it lifted its forecasts to match the company's forecast.

On AIM, Jet2 nosedived 13% as analysts slashed forecasts after the firm warned earnings will be at the lower end of consensus expectations, and it cut seats on sale for the coming Winter season.

The Leeds-based tour operator and airline said the limited earnings visibility came as consumers leave it later to book holidays.

Gold eased from recent record highs to USD3,543.56 an ounce on Thursday against USD3,565.82 on Wednesday.

A barrel of Brent traded at USD67.02 late Thursday afternoon, down from USD67.62 on Wednesday.

The biggest risers on the FTSE 100 were Rightmove, up 20.60p at 737.00p, Airtel Africa, up 5.40p at 220.60p, Aviva, up 15.80p at 645.80p, Relx, up 83.00p at 3,495.00p and Auto Trader, up 18.60p at 794.60p.

The biggest fallers on the FTSE 100 were easyJet, down 20.50p at 466.30p, Antofagasta, down 50.00p at 2,147.00p, Admiral Group, down 80.00p at 3,444.00p, Entain, down 16.00p at 836.40p and Endeavour Mining, down 48.00p at 2,712.00p.

Friday's local corporate calendar has a trading statement from housebuilder Berkeley Group and full year results from investment management firm Ashmore.

The global economic calendar on Friday has UK retail sales figures and US nonfarm payrolls figures.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

US services growth holds in August but outlook hit by tariff concerns

2025-09-04T14:27:03Z

US service sector activity continued to expand in August, according to surveys from S&P Global and the Institute for Supply Management, though momentum softened amid persistent inflation pressures, weak hiring and growing concerns over tariffs and policy uncertainty.

The S&P Global US Services PMI business activity index slipped to 54.5 points in August from 55.7 in July, below the earlier flash estimate of 55.4 published last month.

While the rate of growth moderated, it remained the second-highest recorded so far in 2025, and well above the 50.0 point threshold separating expansion from contraction.

New business increased at the second-fastest rate this year, with firms reporting stronger client demand, especially in financial services. However, consumer-facing sectors saw more subdued growth amid persistent worries about tariffs and an uncertain economic backdrop. Export orders fell marginally for a fifth month running.

Hiring remained resilient. The data showed payroll numbers rising solidly, with backlogs of work also increasing, indicating ongoing capacity pressures.

Despite the solid demand environment, business sentiment weakened, falling to a four-month low and ranking among the lowest in the past three years. Surveyed companies cited concerns over tariffs, policy uncertainty and cost inflation as weighing on their confidence.

Price pressures stayed elevated. Input cost inflation was driven by rising wage bills and tariffs, with many suppliers reportedly raising prices. Output prices also rose markedly as companies passed on higher expenses to clients, though the pace of increase eased slightly from July.

"The expansion of the service sector in August was still the second strongest recorded so far this year," said Chris Williamson, chief business economist at S&P Global Market Intelligence. "However, the brighter news on current economic growth and hiring is marred by concerns over future growth prospects and inflation. Tariff-related uncertainty and elevated input prices present downside risks for the months ahead."

The US composite PMI output index, which includes both services and manufacturing, edged down to 54.6 points in August from 55.1 in July. It missed the 55.4-point flash reading. While service activity slowed, manufacturing output rose at the fastest rate since May 2022.

Separate data from the Institute for Supply Management painted a similar picture, showing the ISM services PMI rising to 52.0 in August from 50.1 in July, signalling the third straight month of expansion.

ISM Chair Steve Miller said: "August's services PMI level showed greater strength, driven by faster expansion rates for the business activity and new orders indexes. Offsetting these positive indicators, however, are continued contraction in the employment index, a 16-year low for the backlog of orders index, and the prices index remaining near 70 percent.

"Commentary once again was led by respondents' increasing citations of tariff impacts, with some indication that business activity and imports are being driven by an attempt to get ahead of additional price increases while preparing for the holiday peak season."

Input price pressures also remained high. The ISM prices index registered 69.2, marking the ninth consecutive month above 60, a threshold often associated with elevated inflation.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Siemens Energy secures EUR1 billion deal for Baltic Sea project

2025-09-04T13:27:35Z

Munich-based Siemens Energy AG has secured a contract to build four converters for Bornholm Energy Island, BEI, in the Baltic Sea valued at more than EUR1 billion, grid operators 50Hertz Transmission and Energinet announced on Thursday.

An electricity hub is to be created on the Danish island for transmitting electricity to Denmark and Germany. 50Hertz is one of four German grid operators, while Energinet is Denmark's national grid operator.

"The contract just concluded between Energinet, 50Hertz and Siemens Energy is made up of the manufacture, transport, installation, testing and commissioning by the mid-2030s, as well as the plant design," 50Hertz said.

The BEI project valued at EUR7 billion had run into difficulties over apportioning the costs.

An undersea cable under the Bay of Greifswald with a capacity of 2 gigawatts is to run to a new transformer substation in northern Germany, while a cable of 1.2 gigawatts is to run to the main Danish island of Zealand on which Copenhagen is located.

Despite the capacity difference, the costs were apportioned equally, and for that reason had to be renegotiated.

Energinet is to receive a subsidy from the EU of around ?645 million. "This financing will serve primarily to reduce the Danish investment share, as most of the electricity produced in the windfarms off Bornholm will be transmitted to Germany," the joint statement said.

The German government is taking on liability in the event that no current is transmitted through the international connection to Germany as a result of a fault or during maintenance.

"A guarantee of this kind is the precondition for a successful tendering process for the windfarms off Bornholm and basically for an efficient offshore link between the countries along the North and Baltic Sea littorals," 50Hertz Chief Executive Stefan Kapferer said.

Siemens Energy shares rose 3.2% to EUR88.68 each on Thursday afternoon in Frankfurt.

source: dpa

Canadian trade deficit narrows in July as trade surplus with US up 80%

2025-09-04T12:57:19Z

Canada's trade deficit narrowed albeit less than anticipated in July, data published by Statistics Canada showed Thursday.

The country's trade deficit decreased 17% to CAD4.94 billion, around USD3.57 billion, from CAD5.98 billion in June. The FXStreet-cited consensus had expected a deficit of CAD4.75 billion in July.

Exports rose 0.9% to CAD61.86 billion in July from CAD61.30 billion in June, while imports fell 0.7% to CAD66.80 billion from CAD67.28 billion.

Pertinently, Canadian exports to the US rose 5.0% to CAD45.14 billion in July from CAD43.00 billion in June, while imports from the US fell 2.2% to CAD38.41 billion in July from CAD39.26 billion in June.

Canada's trade surplus with the US surged 80% to CAD6.73 billion in July from CAD3.74 billion in June.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

FOREX: Dollar mixed before nonfarms; sterling recovers slightly

2025-09-04T12:48:51Z

The dollar was mixed on Thursday on the eve of the next nonfarm payrolls reading, and after separate jobs data showed a slowdown in hiring last month.

US private sector job growth slowed sharply in August, according to payroll firm ADP on Thursday, with businesses adding just 54,000 jobs amid signs of labour market cooling and persistent economic uncertainty.

The figure came in well below July's upwardly revised total of 106,000 and marked the smallest gain in five months. It also missed FXStreet-cited expectations of 65,000.

Against the dollar, sterling rose to USD1.3434 on Thursday afternoon UK time, from USD1.3403 a day prior. The euro traded at USD1.1644, barely budging from USD1.1643.

The ADP data comes on the eve of Friday's nonfarm payrolls.

"For many market participants, it will be the release of the US labour data at the end of the week which will cement their expectations regarding the chances a Fed rate cut later this month. Although the data calendar will also bring the usual smattering of additional labour market news this week, it is the jobs report that is widely expected to set the tone for markets over the coming weeks," Rabobank analysts commented.

"While a knee jerk reaction in the greenback to Friday's release is extremely likely, we see a strong risk that significant additional downside pressure for the USD in the weeks ahead could be tough given that a lot of Fed rate cuts are already in the price and since the market is already positioned short of dollars."

Versus the euro, sterling rose to EUR1.1531 from EUR1.1506. The recovery comes after sterling being what SPI Asset Management analyst Stephen Innes deems as "the G10 punching bag alongside the yen".

"Long gilts have cracked through 5.75%—levels not seen since 1998—and fiscal credibility questions are resurfacing at the worst possible time. Bailey's testimony in Parliament was equal parts hawk and hedge: signalling inflation risk is sticky enough to slow cuts, yet acknowledging the bond market's structural demand problem. The message landed—the pound's August bounce has fully unwound," Innes added.

Andrew Bailey told the Treasury Select Committee: "We've seen a steepening of yield curves across the developed world – the underlying driver of this is global.

"When you look at UK yields regarding the steepening, we are broadly in the middle of the pack. Germany and Japan have gone up significantly more than us, the US less than us.

"It's important not to focus too much on the 30-year-bond rate.

"It's a number that gets quoted a lot. It is quite a high number but it is not what is being used for funding at all at the moment actually.

"There is a lot of dramatic commentary on this but I wouldn't exaggerate the 30-year bond rate."

XTB Kathleen Brooks said bond markets are calmer, "but risks remain".

"There is also talk that the UK's neutral rate could be closer to 4%, which is historically high. This is not helping the pound, as the main driver of sterling is the UK's fiscal outlook," Brooks added.

Versus the yen, the dollar faded to JPY148.34 from JPY148.65 a day prior. Against the Swiss franc, however, it rose to CHF0.8054 from CHF0.8049.

Switzerland's annual consumer price inflation rate remained unchanged in August, although prices fell monthly, data published by the Federal Statistics Office showed Thursday.

The yearly pace of consumer price inflation was 0.2% in August, the same as in July, and in line with the FXStreet-cited market consensus.

Monthly, consumer prices fell by 0.1% in August, after having stayed put in July. The consensus was for another month of no-change for August.

Versus the Australian dollar, the US currency rose to AUD1.5341 on Thursday from AUD1.5299 on Wednesday. Against its Canadian counterpart, it rose to CAD1.3823 from CAD1.3799.

The Dollar Index was largely unchanged on Thursday, sitting at 98.34, up fractionally from 98.33 a day earlier.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

US trade deficit widens more than expected in July as imports higher

2025-09-04T12:40:44Z

The trade deficit in the US increased more than anticipated in July while the number of new unemployment insurance claims was higher than expected in the most recent week, official data showed Thursday.

The US Census Bureau and the US Bureau of Economic Analysis reported a trade deficit of USD78.3 billion for July, up 33% from June and higher than the FXStreet-cited consensus of USD75.7 billion.

Exports edged up 0.3% monthly in July to USD280.5 billion, however imports climbed 5.9% to USD358.8 billion.

The latest reading topped the consensus of 230,000.

Continuing jobless claims fell to 1.940 million in the week to August 23, from 1.944 million a week prior, the latter which was revised down from 1.954 million.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

US private hiring slows as jobs market "whipsawed by uncertainty"

2025-09-04T12:30:31Z

The figure came in well below July's upwardly revised total of 106,000 and marked the smallest gain in five months. It also missed FXStreet-cited expectations of 65,000.

Leisure and hospitality led hiring with 50,000 jobs added, while construction also performed strongly with a gain of 16,000. However, job losses in manufacturing, trade and financial activities weighed on the overall total.

"The year started with strong job growth, but that momentum has been whipsawed by uncertainty," said ADP Chief Economist Nela Richardson. "A variety of things could explain the hiring slowdown, including labour shortages, skittish consumers, and AI disruptions."

Broken down by sector, service-providing industries added 42,000 jobs, while goods-producing sectors contributed 13,000. Manufacturing shed 7,000 roles, and trade, transportation and utilities lost 17,000.

By region, the Northeast added 15,000 jobs, the Midwest 14,000, the South just 4,000, and the West 8,000.

Hiring was strongest among medium-sized businesses with 25,000 new roles, followed by large firms with 18,000 and small firms with 12,000.

Meanwhile, pay growth remained stable, with annual wages for job-stayers rising 4.4% and job-changers seeing a 7.1% increase. Pay increases were strongest among workers at large firms and in financial activities.

The ADP report is based on anonymised payroll data covering more than 26 million workers and is seen as a precursor to Friday's official nonfarm payrolls report from the US Labor Department.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

COMMODITIES: Gold slides amid profit-taking after new record; oil down

2025-09-04T11:49:15Z

Gold retreated on Thursday after clocking a new high record in the previous session, before succumbing to profit-taking ahead of the key US labour report.

Spot gold was quoted at USD3,540.22 an ounce on Thursday afternoon in London, down from USD3,545.96 at the same time on Wednesday. Silver inched down to USD40.87 an ounce from USD40.90.

Bullion has hit a series of records this week, ultimately reaching USD3,578 an ounce on Wednesday. This marked an all-time high record.

But the yellow metal took a breather as investors locked up profits.

"Despite the pullback, the metal remains well supported by expectations of Federal Reserve easing, persistent concerns over central bank independence, and heightened geopolitical risks," Exness analyst Eric Chia said.

Investors are particularly keen to get their hands on the US nonfarm payroll report, due on Friday.

"Signs of a softer US labour market continued to reinforce the case for policy loosening," Chia said. "Job openings in July were lower than expected, while Fed Governor Christopher Waller joined other officials in signalling that rate cuts should begin this month."

Swissquote analyst Ipek Ozkardeskaya also said gold was supported by a weaker dollar and growing concerns over sovereign debt sustainability in developed markets.

"Many EM central banks are expected to continue diversifying away from US Treasuries into gold - an asset not subject to government creditworthiness or sanctions risk, as highlighted by the freezing of Russia's reserves in 2022," Ozkardeskaya said.

In other commodities, Brent crude oil was priced at USD66.57 a barrel on Thursday, down from USD67.85 on Wednesday. West Texas Intermediate eased to USD62.96 a barrel from USD64.18.

The oil market suffered more losses on Thursday amid mounting speculation that Opec+ will increase production, Ramy Zeytouni analyst Ramy Zeytouni said.

The energy alliance will hold a meeting to decide on production policy on September 7. Early last month, the oil cartel raised production by 547,000 barrels per day from September.

"Reports suggest that the group may continue to reverse its voluntary cuts in an effort to reclaim market share," Zeytouni said, adding: "This uncertainty has prompted traders to de-risk their positions pending the meeting's outcome, as the prospect of increased supply weighs on the market."

"Concerns over the demand outlook were further intensified by signs of a cooling US economy, exemplified by a recent JOLTS report that revealed a slowdown in job openings," he said.

In other metals, platinum was priced at USD1,391.81 an ounce on Thursday, down from USD1,408.06 on Wednesday. Palladium was quoted at USD1,137.95 an ounce, down from USD1,151.12.

But the copper price rose to USD9,953.00 per tonne from USD9,862.00. Aluminium firmed to USD2,614.50 from USD2,612.00.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

UK firms axe jobs at fastest pace for almost four years, survey finds

2025-09-04T11:25:04Z

UK businesses cut jobs at the fastest pace for almost four years in August amid pressure from higher taxes and labour costs, figures show.

The Bank of England's regulator survey of company finance chiefs shows UK firms cut employment by 0.5% over the three months to August.

It represents the biggest drop in employment levels since September 2021.

Companies are also increasingly pessimistic about future employment amid concerns over the wider economic outlook.

The survey data shows they expect to reduce employment levels by 0.5% over the coming year, representing the weakest projection since October 2020.

UK firms cut employment by 0.5% over the three months to August.

It comes as firms continue to digest higher operating costs after a raft of policies from last year's autumn budget came into force in April.

These included increases to the national minimum wage, national insurance contributions and business rates for many businesses.

Firms have also had to deal with heightened global trade tensions after US President Donald Trump launched his overhaul of US tariffs earlier this year.

Around two-thirds of businesses, 66%, said they have seen lower profits since April.

The data shows 34% said they have increased prices and 46% have reduced their employment levels since the costs increases.

It comes amid continued speculation that Chancellor Rachel Reeves may increase taxes further at the next budget, due on November 26.

By Henry Saker-Clark, PA Deputy Business Editor

Press Association: Finance

source: PA

UniCredit CEO targets 30% stake in Germany's Commerzbank by year end

2025-09-04T11:20:00Z

UniCredit Spa is set to increase its stake in Frankfurt-based Commerzbank AG to 30% by the end of the year, chief executive Andrea Orcel said on Thursday.

"We will be at around 30 [%] by the end of the year," Orcel said at the Handelsblatt Banking Summit in Frankfurt.

The comments come as the Milan-based institution is seeking to acquire Commerzbank, Germany's second-largest private bank, having taken advantage of the German government's partial exit to acquire a large stake last September, which it recently increased to just over 26%.

If the 30% threshold is exceeded, UniCredit would be legally required to make an official purchase offer to the remaining shareholders of the DAX-listed company.

The chief executive left open the question of when his bank would make such an offer. Ultimately, a merger is a question for shareholders and the board, he argued.

Employees, management and unions at the German bank - as well as the government - have strongly opposed what they see as a "hostile" takeover.

But Orcel has been advocating the benefits of a cross-border merger since late last year, undeterred by resistance from Berlin.

He insisted that he "would not touch" the bank's branch network following a takeover. Job cuts will be focused on the head office in Frankfurt.

Orcel also said that even without a Unicredit takeover of the bank, job reductions would be necessary at Commerzbank within five to seven years due to economic realities.

UniCredit, which already has a foothold in the German market through Hypovereinsbank, HVB, sees opportunities in business with private and medium-sized corporate clients.

UniCredit shares rose 0.4% to EUR66.12 each on Thursday afternoon in Milan, giving it a market capitalisation of EUR103.02 billion. Commerzbank shares were 1.4% higher at EUR32.40 each, for a market cap of EUR36.49 billion.

source: dpa

CORRECT: UK construction optimism hits lowest in two-and-a-half years

2025-09-04T11:06:53Z

(Correcting day of the week survey was published)

The UK's construction sector remained mired in contraction in August, with activity falling for the eighth consecutive month, led by steep declines in the housing and civil engineering sectors, survey data from S&P Global showed Thursday.

August's reading signalled another solid drop in total construction output, although the rate of decline moderated slightly from July.

Residential work was among the hardest-hit segments, with its activity index falling to 44.2 points, the sharpest drop since February. Civil engineering fared even worse, slipping to 38.1 points, its lowest level since October 2020. Commercial building was more resilient, with output easing to 47.8 points, the softest pace of decline in three months.

"Construction activity has decreased throughout the yearto-date, which is the longest continuous downturn since early-2020," said Tim Moore, economics director at S&P Global Market Intelligence. "August data signalled only a partial easing in the speed of decline after output fell at the fastest pace

for over five years in July."

Total new work also fell for the eighth month in a row, though the rate of contraction eased to its weakest since January. Survey respondents pointed to ongoing market headwinds, intense pricing competition, and subdued UK economic momentum as key drags on demand.

The downturn in activity and orders weighed on employment, with staffing levels falling at the fastest pace since May. Many firms reported hiring freezes and were not replacing departing staff, in an effort to mitigate rising wage costs. Subcontractor usage also dropped sharply, with one of the steepest falls in five years.

Purchasing activity saw a solid drop, the sharpest in three months, as firms held back on input buying amid a lack of new project starts.

On the price front, input cost inflation slowed to a ten-month low in August, with suppliers increasingly willing to offer discounts amid soft demand. Subcontractor charges also rose at the weakest rate in six months. Meanwhile, delivery times improved and vendor performance strengthened as supply chains eased further.

However, business confidence deteriorated. Just 34% of construction firms surveyed expected activity to rise over the next year, down from 37% in July and the weakest level of optimism since December 2022. Companies cited elevated economic uncertainty and client risk aversion, though some were hopeful about potential boosts from lower borrowing costs and infrastructure projects.

"The proportion of panel members expecting a rise in output over the year ahead was 34%, down from 37% in July and lower than at any time since December 2022," Moore added.

The survey, compiled from responses collected between August 12 and 26, reflects ongoing caution in the sector as the broader UK economy faces a sluggish outlook.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: Europe mixed as UK construction optimism sinks

2025-09-04T11:03:51Z

London stocks remained mostly higher at midday on Thursday, as UK construction optimism sank to its lowest level in two and a half years.

The FTSE 100 index was up 18.07 points, 0.2%, at 9,196.06. The FTSE 250 was up 166.04 points, 0.8%, at 21,479.11, and the AIM All-Share was down 7.40 points, 1.0%, at 761.07.

The Cboe UK 100 was up 0.2% at 922.29, the Cboe UK 250 was up 0.7% at 18,760.96, and the Cboe Small Companies was up 0.1% at 17,090.77.

In European equities on Thursday, the CAC 40 in Paris fell 0.2%, while the DAX 40 in Frankfurt gained 0.7%.

"Gold eased on Thursday, retreating from record highs as investors secured their profits following the asset’s long winning streak. Despite the pullback, the metal remains well supported by expectations of Federal Reserve easing, persistent concerns over central bank independence, and heightened geopolitical risks," commented Exness analyst Eric Chia.

Gold was quoted at USD3,540.07 an ounce around midday in London on Thursday, down against USD3,565.82 late on Wednesday. It reached a new record of USD3,580 earlier on Wednesday.

Chia continued: "Signs of a softer US labour market continued to reinforce the case for policy loosening. Job openings in July were lower than expected, while Fed Governor Christopher Waller joined other officials in signalling that rate cuts should begin this month. Markets are now focused on jobless claims and Friday’s nonfarm payrolls for confirmation of weakness."

Stocks in New York were called mostly higher. The Dow Jones Industrial Average was called flat, the S&P 500 index up 0.2%, and the Nasdaq Composite also 0.2% higher.

The yield on the US 10-year Treasury was quoted at 4.19%, narrowing from 4.22%. The yield on the US 30-year Treasury was quoted at 4.87%, trimmed from 4.91%.

Meanwhile, the UK's construction sector remained mired in contraction in August, with activity falling for the eighth consecutive month, led by steep declines in the housing and civil engineering sectors, survey data from S&P Global showed Thursday.

August's reading signalled another solid drop in total construction output, although the rate of decline moderated slightly from July.

Just 34% of construction firms surveyed expected activity to rise over the next year, down from 37% in July and the weakest level of optimism since December 2022. Companies cited elevated economic uncertainty and client risk aversion, though some were hopeful about potential boosts from lower borrowing costs and infrastructure projects.

Currys held the top spot on the FTSE 250 around midday, up 17%.

The London-based electronics retailer launched a new GBP50 million share buyback, and said group like-for-like sales rose 3% in the 17 weeks to August 30.

In addition, the company announced the completion of the pension triennial review which will see contributions fall in future years. The actuarial deficit as of March 31 reduced to GBP134 million from GBP403 million as of March 31 2022. Currys will pay GBP82 million of contributions this year as planned with future contributions of GBP13 million per annum over five years to March 2031, reduced from GBP78 million per annum to December 2028.

Currys said it remains "comfortable" with market consensus for full-year group adjusted pretax profit of GBP170 million, which would be up 3.1% from GBP162 million in financial 2025. Longer-term, Currys continues to target at least 3% adjusted earnings before interest and tax margin in both the UK&I and the Nordics.

Shield Therapeutics rose 37%.

The Newcastle, England-based commercial-stage pharmaceutical company said Accrufer/Feraccru, its oral treatment for those with iron deficiency with or without anaemia, has been accepted by the US Food & Drug Administration as a clinical supplement.

Further, it has assigned priority review to extend the drug's indication to include patients aged below 10. The company noted that approval is expected next year, subject to successful review.

At the other end, essensys fell 9.3%.

The London-based provider of software and cloud services for flexible workspace industry expects to report revenue of GBP19.2 million for the year that ended July 31, falling 20% from GBP24.1 million the year before due to "customer churn in the platform and network business".

The firm anticipates a return to growth however, with adjusted earnings before interest, tax, depreciation and amortisation of at least GBP1.3 million expected for the year, compared to a loss of GBP900,000 a year earlier. "We are confident that essensys is well positioned to be the trusted software and technology partner for the industry's long-term growth," said Chief Executive Officer James Lowery.

The pound was quoted up at USD1.3455 at midday on Thursday in London, compared to USD1.3448 at the equities close on Wednesday. The euro stood lower at USD1.1658, against USD1.1679. Against the yen, the dollar was trading higher at JPY148.23 compared to JPY147.95.

Brent oil was quoted lower at USD66.56 a barrel at midday in London on Thursday from USD67.62 late Wednesday.

Still to come on Thursday's economic calendar, US ADP private payrolls data at 1315 BST and weekly jobless claims figures 1330. There is also a US services sector PMI at 1445.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

No respite for limping German economy as top institute drops forecast

2025-09-04T10:20:31Z

A leading German economic institute on Thursday lowered its 2025 forecast for the country's struggling economy, in a further warning sign for Chancellor Friedrich Merz as he seeks to restore growth.

The ifo Institute said gross domestic product, GDP, is likely to grow only 0.2% this year, a drop of 0.1 percentage point from its previous estimate.

For 2026, the Munich-based institution expects economic output to rise by 1.3%, down 0.2 percentage points from the last estimate.

Europe's largest economy has been mired in two consecutive years of recession as it struggles to recover from the combined shocks of the coronavirus pandemic and high inflation following the Russian invasion of Ukraine.

Since taking office in May, Merz's conservative-led administration has made boosting economic growth its priority, but signs are mounting that the recovery could yet take several years.

Ifo researcher Timo Wollmershauser said the question of whether Germany can find a lasting way out of its economic difficulties ultimately depends on the government's decisions.

"The economic policy measures of the federal government are likely to take effect, especially from next year," he said, arguing that a consistent fiscal platform could help to steer the country out of the crisis.

"However, if economic policy remains at a standstill, there is a risk of further years of economic paralysis," he added.

One consequence could be rising unemployment, with the institute warning that the jobless rate could rise to 6.3% this year.

source: dpa

UK construction optimism hits lowest in two-and-a-half years – PMI

2025-09-04T09:17:58Z

August's reading signalled another solid drop in total construction output, although the rate of decline moderated slightly from July.

for over five years in July."

Purchasing activity saw a solid drop, the sharpest in three months, as firms held back on input buying amid a lack of new project starts.

"The proportion of panel members expecting a rise in output over the year ahead was 34%, down from 37% in July and lower than at any time since December 2022," Moore added.

The survey, compiled from responses collected between August 12 and 26, reflects ongoing caution in the sector as the broader UK economy faces a sluggish outlook.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Retail sales eurozone decline sharper than expected on-month in July

2025-09-04T09:11:52Z

Annual retail sales growth in the eurozone slowed more than anticipated in July, while the monthly fall in retail sales was sharper than anticipated, data published by Eurostat showed Thursday.

Annual retail sales growth was 2.2% in July, below 3.5% in June, the latter upwardly revised from 3.1%. It was below the FXStreet-cited consensus of a milder slowdown to 2.4% in July.

The best annual growth was in Cyprus with 8.5%, followed by Portugal with 6.1%. Only one country had an on-year decline in July, Slovenia with 0.7%.

Monthly, retail sales in the eurozone fell by 0.5% in July, after growth of 0.6% in June which was upwardly revised from 0.3%. The consensus was for a softer decline of 0.2% in July.

The biggest monthly retail sales growth was in Lithuania with 1.5%, followed by Latvia with 1.4%. The worst falls were in Croatia with 4.0% and Estonia with 2.0%.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

LONDON MARKET OPEN: FTSE 100 rises as gold prices begin retreat

2025-09-04T08:17:27Z

London blue chips opened in the green on Thursday, as investors look to this afternoon's US private payrolls data, and gold prices begin to retreat following their record-high rally earlier in the week.

The FTSE 100 index opened up 17.91 points, 0.2%, at 9,195.90. The FTSE 250 was up 115.05 points, 0.5%, at 21,428.12, and the AIM All-Share was down 6.13 points, 0.8%, at 762.34.

The Cboe UK 100 was up 0.2% at 922.28, the Cboe UK 250 was up 0.5% at 18,730.92, and the Cboe Small Companies was up 0.1% at 17,094.76.

In European equities on Thursday, the CAC 40 in Paris faded 0.1%, while the DAX 40 in Frankfurt edged up 0.3%.

The pound was quoted lower at USD1.3428 early on Thursday in London, compared to USD1.3448 at the equities close on Wednesday. The euro stood lower at USD1.1652, against USD1.1679. Against the yen, the dollar was trading up at JPY148.33 compared to JPY147.95.

The Society of Motor Manufacturers & Traders said new car registrations in August were at 82,908 units, down 2.0% on-year, a milder decline than that of 5.0% in July.

Notably, battery electric vehicle registrations were up 15% on-year, reaching a market share of 26.5% in August, up from 22.6% a year ago, and compared to 21.3% in July.

August's share of BEV registrations was the highest in 2025 so far, and the fourth-highest on record.

However, it was still below 2025's nominal zero emission vehicle mandate target of 28%.

Genus soared 25% at London's market open, with that gain softening to 10% a bit later.

The Basingstoke, England-based animal biotechnology and genetics company reported pretax profit of GBP28.5 million for the year that ended June 30, jumping from GBP5.5 million the year before.

Revenue grew 0.6% to GBP672.8 million from GBP668.8 million, while net exceptional items reduced to GBP27.3 million from GBP36.0 million a year earlier. Genus declared a total dividend of 32.0 pence per share, unchanged on-year.

Looking ahead, Genus expects adjusted pretax profit for financial 2026 in line with a company-compiled consensus between GBP76.1 million to GBP86.0 million. This would be up 16% at best from GBP74.3 million in financial 2025.

Genus also announced the accelerated formation of a Chinese porcine joint venture with Beijing Capital Agribusiness Co, under which Genus will receive an accelerated milestone payment of USD7.5 million plus a USD160 million gross cash payment. In return, BCA will acquire 51% of Genus subsidiary PIC China, which is expected to complete in financial 2026. PIC China will then acquire 100% of BCA's Future Bio-Tech business, which is also expected to complete in 2026.

Eco Buildings rose 27%.

The London-based manufacturer of prefabricated modular housing products said it has been awarded a new contract to build a luxury 18-unit apartment block in Tirana, Albania, which is expected to generate EUR2.2 million in revenue. Anticipated gross margins are consistent with the 40% previously reported by the firm.

The company has a letter of intent in place to build two further identical apartment blocks in the first and second quarter next year, with talks ongoing to then build an additional three blocks when the first three have been built.

Eco Buildings also raised GBP300,000 via the issue of a two-year loan note, convertible at 4 pence per share, to provide additional working capital for the construction of the first apartment block.

At other end, Jet2 fell 14%.

The Leeds-based tour operator and airline said it was reducing seats on sale for winter 2025/26 to 5.6 million from 5.8 million, due to a "less certain consumer environment", though this still marks a 9% on-year increase from capacity during winter 2024/25. On sale seat capacity for summer 2025 was 8.0% higher than the summer of 2024, at 18.5 million seats.

Jet2 currently expects earnings before interest and tax at the lower end of a company-compiled GBP449 million to GBP496 million consensus range, for the year ending March 31, 2026. This would be up at least 0.6% from GBP446.5 million the year before.

In Asia on Thursday, the Nikkei 225 index in Tokyo improved 1.5%. In China, the Shanghai Composite lost 1.2%, while the Hang Seng index in Hong Kong shed 1.1%. The S&P/ASX 200 in Sydney closed up 1.0%.

In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average fading 0.1%, the S&P 500 gaining 0.5% and the Nasdaq Composite advancing 1.0%.

The yield on the US 10-year Treasury was quoted at 4.21%, narrowing from 4.22%. The yield on the US 30-year Treasury was quoted at 4.89%, trimmed from 4.91%.

"Sovereign bonds in developed economies are under pressure, with long-maturity yields near multi-decade highs on the back of ballooning debt, political obstacles to fiscal tightening and structurally higher inflation. To finance higher debt servicing costs, governments are issuing more bonds — further pushing yields higher," said Swissquote analyst Ipek Ozkardeskaya.

"The US 30-year yield briefly tested the 5% psychological level before retreating, while a softer-than-expected JOLTS report — with job openings falling to a one-year low — reinforced expectations of a slowing labour market. The US 2-year yield fell to its lowest this summer, with futures pricing a 95% probability of a September 25bp Fed cut. Markets now await ADP data today and nonfarm payrolls Friday to confirm the trend.

"A soft ADP read today and weak official jobs data on Friday could further support this trend and pull yields lower. We’re yet to see whether the steepening of the yield curve will slow, now that the 30-year bond offers around 5%. Upcoming rate cuts could boost medium- to long-term inflation expectations and keep the long end under pressure. Indeed, the 2-year yield is pushing lower, while the 30-year yield shows a modest rebound this morning."

Brent oil was quoted lower at USD66.90 a barrel early in London on Thursday from USD67.62 late Wednesday. Gold was quoted down at USD3,539.83 an ounce against USD3,565.82.

Still to come on Thursday's economic calendar, there are eurozone retail sales figures at 1000 BST, US ADP private payrolls data at 1315 and weekly jobless claims figures 1330. There is also a US services sector PMI at 1445.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Genus shares jump on annual profit hike and China joint-venture

2025-09-04T08:15:24Z

Genus PLC on Thursday reported an increase in annual earnings and said it is forming a porcine joint venture in China alongside existing partner Beijing Capital Agribusiness Co Ltd.

Genus shares jumped 10% to 2,745.00 pence each in London on Thursday morning.

The JV will be 51%-owned by BCA and 49%-owned by Genus. Animal biotechnology and genetics company Genus said it will receive USD160 million cash as part of the deal and there is a USD7.5 million milestone also, upon Chinese regulatory backing of the joint-venture's formation.

The deal's structure will see BCA acquire 51% of PIC China, a Genus business. PIC China will acquire 100% of BCA's Future Bio-Tech business.

"Following completion of the transaction, PIC China will be deconsolidated from Genus's financial results and Genus's 49% interest in the joint venture will be equity accounted. Proceeds from the transaction are currently expected to be used for balance sheet deleveraging and potential additional shareholder returns, in line with the Genus's capital allocation framework," Genus said.

The company has an existing collaboration with BCA. The original pact between the duo was for the research and development of porcine reproductive and respiratory syndrome virus-resistant pig in China.

"Given the positive progress made to date, the parties have entered into updated agreements to accelerate the formation of this Chinese joint venture. This cements Genus's and BCA's commitment to strengthening PIC China's local business and achieving PRP commercialisation in China, as a domestic partner collaboration," Genus explained. "The updated agreements accelerate value crystallisation for Genus whilst retaining future economic rights that are consistent with the original agreements."

Genus hailed "good second half momentum" that boosted annual earnings.

Pretax profit in the year ended June 30 jumped to GBP28.5 million from GBP5.5 million. Revenue was 0.6% higher at GBP672.8 million from GBP668.8 million.

"Genus achieved a strong performance in FY25 as we executed our strategic priorities. PIC's growth was broad-based and the business won significant new royalty customers in China," Chief Executive Officer Jorgen Kokke said. "We look forward to FY26 with increasing confidence and will continue to focus on executing our strategic priorities."

Adjusted pretax profit for the year rose 24% to GBP74.3 million from GBP59.8 million. It rose 38% at constant currency. For the new year, it expects "significant growth" in adjusted pretax profit at constant currency, in line with current market expectations, which it puts at GBP79.0 million.

Genus left its final dividend unchanged at 21.7 pence per share, leaving its total dividend unmoved at 32.0p.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Currys launches new buyback as strong sales offset cost pressures

2025-09-04T08:04:18Z

Currys PLC on Thursday launched a new GBP50 million share buyback as it reported an encouraging start to the financial year.

In addition, the company announced the completion of the pension triennial review which will see contributions fall in future years.

In response, shares in the London-based electricals retailer leapt 19% to 130.08 pence each in London on Thursday morning.

Currys said group like-for-like sales rose 3% in the 17 weeks to August 30.

UK & Ireland LFL revenue increased by 3% with "robust" sales driven by market share gains and double-digit growth in new categories and business-to-business.

Recurring services revenue grew strongly with credit adoption up 190 basis points to 23.3% and iD Mobile reaching over 2.3 million subscribers, up 22% year-on-year.

Currys said gross margin was stable and expected cost increases offset by operating leverage from higher sales.

Nordics LFL revenue rose 2% with sales growth driven by AI computing and success in new categories such as robotic lawnmowers and vacuums.

Gross profit growth was seen in every country in the region, driven by a strategy of focusing on more profitable sales.

Operating costs were tightly controlled, offsetting inflation and driving improved profitability.

Currys said it remains "comfortable" with market consensus for full-year group adjusted pretax profit of GBP170 million, which would be up 3.1% from GBP162 million in financial 2025.

Year-end net cash is expected to total at least GBP100 million post pension contributions and capital returns.

Longer-term, Currys continues to target at least 3% adjusted earnings before interest and tax margin in both the UK&I and the Nordics.

Alongside this, the group will remain focused on free cash flow generation. Currys expects to keep annual capital expenditure below GBP100 million.

Currys said it is targeting continued growth in higher margin, recurring revenue Services, including reaching at least 2.5 million iD Mobile subscribers before year end.

"It's been a good start to the year, with encouraging performance across the group," said Chief Executive Alex Baldock.

Baldock said: "Our Nordics recovery continues to pick up pace. We continue to grow, improve margins and control costs well. We're confident that profit margins will step forward again this year."

In addition, Currys said the triennial pension review had been completed with the actuarial deficit as of March 31 reduced to GBP134 million from GBP403 million as of March 31 2022.

Currys will pay GBP82 million of contributions this year as planned with future contributions of GBP13 million per annum over five years to March 2031, reduced from GBP78 million per annum to December 2028.

Panmure Liberum analyst Wayne Brown said the completion of the review is "not only earlier than expected, but it is on much better terms than we had been expecting."

Announcing a new GBP50 million buyback, Currys said it was an "appropriate and a value-enhancing use of cash."

The programme, to be run by Panmure Liberum, will commence immediately, and is anticipated to end no later than April 30, 2026.

Currys also announced the appointment of Rune Bjerke as an independent non-executive director with effect from September 8.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Fall in French construction ebbs in August on civil engineering growth

2025-09-04T08:00:14Z

France's decline in construction activity softened in August and fell at the slowest pace since January 2023, survey results from S&P Global showed on Thursday.

The France construction purchasing managers' total activity index was up sharply at 46.7 points from July's ten-month low of 39.7, indicating an easing of the downturn. The reading remains below the neutral 50-point mark separating growth from contraction.

S&P Global said the latest data showed "further considerable weakness" in the residential segment. The decline in house building was the softest since April 2023, but was still sharp and acted as a drag on the wider sector.

There was a slower reduction in commercial construction activity, after a steep fall in July. Civil engineering activity rose for the second time in the past three months.

However, growth was only moderate and was more than offset by weakness in the other two categories.

Demand for construction projects worsened in August, extending the period of falling new orders to close to three-and-a-half years. However, the rate of decline slowed and was the softest since April.

Surveyed companies said they expect work levels to be lower in a year's time, with 29% giving a pessimistic response, while 15% were optimistic.

S&P Global said the survey data indicated that operating expenses for French builders were higher than in July. Average costs have risen on a monthly basis since April. However, the rate of inflation eased to a four-month low.

"The French construction sector moved towards stabilisation in August, with the overall activity index rising by seven points to its highest level since January 2023. Although activity continued to contract, the pace of decline eased notably, driven in part by slower reductions in both housing and commercial construction. Civil engineering stood out, registering growth and marked its third expansion this year following January and June," said Norman Liebke, economist at Hamburg Commercial Bank.

"A softer fall in new orders supported the improvement in the total activity index, which signalled a significantly slower rate of decline compared to July. This suggests a potential shift in demand dynamics, though it remains to be seen whether the trend is sustainable or merely temporary. The moderation in the order book contraction could provide some relief to constructors, but underlying uncertainty persists."

The PMI features a panel of 150 construction companies in France, with responses collected between August 12 and 29.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Contraction in eurozone construction activity softens in August

2025-09-04T07:50:08Z

The decline in the eurozone's construction activity continued in August, but had the softest decline since February 2023, data published by S&P Global showed on Thursday.

The eurozone construction purchasing managers' total activity index rose to 46.7 points in August from 44.7 in July. This indicates a softer reduction in total construction activity, though the index remained firmly below the neutral 50-point mark separating growth from contraction.

Activity has now fallen consistently for 40 months, S&P Global noted.

New orders fell at a weaker, but still sharp, rate, which contributed to continued reductions in employment and purchasing.

Price pressures were at their softest since April, and were "broadly in line" with the average seen in 2025 so far.

Firms were more pessimistic about the outlook for activity in the year-ahead, with the highest degree of negative sentiment for seven months.

"Eurozone construction activity may be on the uprise. Construction activity declined in a rapid manner, although the pace slowed down modestly, the lowest in two-and-a-half-years...Interestingly, the index rose especially in France and Italy, whereas Germany's construction sector saw a sharper downturn. Civil engineering grew at a modest pace thanks to France and Italy, while housing and commercial activity remained subdued, in accordance with the three European countries," said Norman Liebke, economist at Hamburg Commercial Bank.

"Housing activity is slowly but steadily recovering. Although housing drags on overall activity the strongest, its index reached its second-highest point for two-and-a-half years. Commercial activity is closer to the expansion threshold, but it seems more likely that the commercial subsector is turning down again and the housing sector increasing, following current dynamics. Civil engineering remained volatile in recent months, hopping above and below the expansion threshold."

The construction PMI features a panel of 650 construction firms in the eurozone, with responses collected between August 12 and 29.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Anglo American nets ZAR44 billion after selling entire Valterra stake

2025-09-04T06:56:42Z

Anglo American PLC said on Thursday it has raised ZAR44.1 billion, about USD2.5 billion, after disposing of its entire interest in Valterra Platinum Ltd, formerly called Anglo American Platinum Ltd.

The London-based diversified miner offered 52.2 million shares of Valterra at ZAR845 each through accelerated bookbuild.

Shares in Valterra finished 8.8% higher at ZAR924.28 in Johannesburg on Wednesday. They closed up 9.3% at 3,890.00 pence in London.

Anglo retained a 19.9% shareholding in Valterra after it demerged the platinum producer late in May as part of its portfolio simplification. Anglo had held 79% stake in Valterra before the demerger.

As part of its simplification plan, Anglo wants to focus on iron ore and copper, while getting rid of platinum, coal, nickel and diamond assets. Last month, Anglo suffered a setback after Peabody Energy Corp termination" its bid to acquire Anglo's steelmaking coal assets in Australia.

Valterra listed on the London Stock Exchange early in June this year, and it kept its primary listing on the Johannesburg Stock Exchange.

Anglo expects settlement of the placing shares to occur on or about Tuesday next week.

Late on Wednesday, Anglo said the placing would raise further cash for the group, strengthening its balance sheet.

"Valterra Platinum has made a strong start as a standalone company and we continue to have every confidence in its future as the world's leading integrated value chain producer of PGMs," Anglo Chief Executive Officer Duncan Wanblad said then.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON BRIEFING: Currys starts buyback; Metals Exploration profit down

2025-09-04T06:54:40Z

London's FTSE 100 is set to open higher on Thursday, as gold continues to extend its rally and ahead of US labour market data in the afternoon.

In early corporate news, Currys launches a new share buyback programme for up to GBP50 million and Metals Exploration reports a more than 70% decline in first-half profit.

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

----------

MARKETS

----------

FTSE 100: called up 0.1% at 9,184.59

GBP: down at USD1.3431 (USD1.3448 at previous London equities close)

----------

BROKER RATINGS

----------

HSBC cuts Entain to 'hold' - price target 917 pence

----------

Morgan Stanley starts Tate & Lyle with 'equal-weight'

----------

RBC raises everplay price target to 455 (405) pence - 'outperform'

----------

COMPANIES - FTSE 250

----------

Currys says like-for-like revenue in the UK & Ireland is up 3% on-year for the 17 weeks that ended August 30, boosted by strong sales in gaming, AI computing, large appliances, coffee machines and cooling products. Like-for-like Nordics revenue rises 2% amid "success" in new categories such as robotic lawnmowers and vacuums. The electronics retailer says trading in the first four months of the financial year is in line with expectations, and it remains "comfortable" with a company-compiled market consensus for adjusted pretax profit of GBP170 million for financial 2026. This would be up 4.9% from GBP162 million the year before. Currys also launches a new share buyback for up to GBP50 million, beginning immediately and expected to run no later than April 30, 2026. Cash returns to shareholders this year will total around GBP75 million, Currys says.

----------

Genus reports pretax profit of GBP28.5 million for the year that ended June 30, jumping from GBP5.5 million the year before. Revenue grows 0.6% to GBP672.8 million from GBP668.8 million, while net exceptional items reduce to GBP27.3 million from GBP36.0 million a year earlier. Genus declares a total dividend of 32.0 pence per share, unchanged on-year. "Genus achieved a strong performance in FY25 as we executed our strategic priorities. PIC's growth was broad-based and the business won significant new royalty customers in China. ABS profitability was substantially improved, primarily through VAP initiatives," says Chief Executive Officer Jorgen Kokke. "In addition, we secured the landmark US FDA approval for our PRP gene edit and this tremendous achievement is testament to our teams and partners who have been working on the PRP programme for over a decade. We look forward to FY26 with increasing confidence and will continue to focus on executing our strategic priorities." Looking ahead, Genus expects adjusted pretax profit for financial 2026 in line with a company-compiled consensus between GBP76.1 million to GBP86.0 million. This would be up 16% at best from GBP74.3 million in financial 2025. Genus also announces the accelerated formation of a Chinese porcine joint venture with Beijing Capital Agribusiness Co, under which Genus will receive an accelerated milestone payment of USD7.5 million plus a USD160 million gross cash payment. In return, BCA will acquire 51% of Genus subsidiary PIC China, which is expected to complete in financial 2026. PIC China will then acquire 100% of BCA's Future Bio-Tech business, which is also expected to complete in 2026.

----------

OTHER COMPANIES

----------

Metals Exploration posts USD16.8 million in pretax profit for the six months that ended June 30, falling 71% from USD58.4 million a year earlier. This is driven largely by impairment gains reducing to USD4.9 million from USD49.7 million the year before, and by USD18.8 million in other expenses during six-month period, against USD701,849 the year before. Revenue, on the other hand, rises 31% to USD118.9 million from USD91.1 million. Total mined slips 1.7% to 5.9 million tonnes from 6.0 million tonnes the year prior. Gold sold totals 41,240 ounces, down from 41,589 on-year, while the gold price soars to USD2,884 an ounce from USD2,190 an ounce. "The first half of 2025 was a hugely successful period in which we achieved record free cashflow and strong revenues from our operations at Runruno and continued to execute our strategy of becoming a multi-project company following the completion of the acquisition of Condor Gold targeting first production at the La India gold project by Q4 2026," says Chief Executive Officer Darren Bowden. The firm reaches record positive free cash flow of USD70.7 million in the first half, against USD46.4 million on-year.

----------

Partners Group Private Equity will become a constituent of the FTSE 250 index from the market close on September 19. The firm says it intends to carry out a competitive audit tender process during 2026, aiming to announce its results within the 2026 annual report. "Inclusion in the FTSE 250 will mark an important milestone for PGPE," says Chair Peter McKellar. "We anticipate it leading to enhanced liquidity and marketability of the shares, complementing the board's initiatives, working alongside the investment manager and our advisers, focused on delivering enhanced shareholder value through delivering strong [net asset value] performance and narrowing the discount to NAV."

----------

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

GEA and Scout24 win place on leading DAX 40 index in Frankfurt

2025-09-04T06:02:16Z

GEA Group AG and Scout24 SE will be promoted to Germany's leading stock market index, the DAX 40, from September 22.

Their inclusion means they belong to the 40 largest publicly listed companies on the Frankfurt Stock Exchange.

Shares in Dusseldorf, Germany-based food and beverages company GEA closed up 1.1% at EUR62.50 in Frankfurt on Wednesday with a market capitalisation of EUR10.14 billion. The stock is up 49% over the last twelve months.

Scout24, the Munich, Germany-based operator of the ImmoScout24 residential and commercial real estate platform, will also join the index.

Shares in Scout24 closed down 0.2% at EUR107.70 on Wednesday with a market capitalisation of EUR8.04 billion, with the stock 52% higher over the past year.

Leaving the index are Gottingen, Germany-based life sciences company Sartorius AG and Stuttgart, Germany-based carmaker Porsche AG.

Sartorius shares closed up 1.0% at EUR161.80 with a market capitalisation of EUR13.35 billion. The stock is down 12% over the last 12 months.

Shares in Porsche closed flat at EUR44.53 with a market capitalisation of EUR20.29 billion. They are down 33% over the last year.

They will be added to the MDAX index, alongside Hamburg, Germany-based vision and hearing care provider Fielmann AG, which is promoted from the small and medium-sized company index, the SDAX.

Fielmann shares finished down 0.2% at EUR54.00 with a market capitalisation of EUR4.54 billion. The shares have jumped 23% over the last year.

Hamburg-based drugmaker Evotec SE has been demoted to the SDAX index, which it will join alongside Montabaur, Germany-based telecommunications provider 1&1 Drillisch AG.

Evotec shares were down 1.2% at EUR5.86 with a market capitalisation of EUR1.04 billion. The shares have fallen 0.7% in the last year. 1&1 shares fell 1.3% to EUR19.94 with a market capitalisation of EUR3.52 billion. The shares have jumped 40% in a year.

GEA Chief Executive Officer Stefan Klebert said: "Entering the DAX is a major milestone in the history of GEA. We are particularly proud to have achieved this solely based on our own strengths, without any tailwinds – this is a first-class ascent. For years, we have been improving our performance, growing organically, delivering on our guidance, and creating value for employees and shareholders alike.

"As DAX member, GEA will gain even more visibility, particularly among investors and future talent. The recent progress shows we're on the right path. We have a clear strategic compass, robust markets, and committed teams. This winning formula earned us a place in the DAX – and we'll keep building on it to drive profitable growth."

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: FTSE 100 to edge up before US jobs data

2025-09-04T05:59:12Z

London's FTSE 100 is set to open higher on Thursday ahead of the afternoon's ADP US labour market data.

IG says futures indicate the FTSE 100 to open up 10.9 points, 0.1%, at 9,188.89 on Thursday. The index of London large-caps closed up 61.30 points, 0.7%, at 9,177.99 on Wednesday.

Sterling was quoted at USD1.3429 early Thursday, lower than USD1.3448 at the London equities close on Wednesday.

The euro traded at USD1.1654 early Thursday, down from USD1.1679 late Wednesday. Against the yen, the dollar was quoted at JPY148.17 versus JPY147.95.

UK Chancellor Rachel Reeves on Wednesday set the date for her autumn budget at November 26.

The chancellor acknowledged the economy is "not working well enough" and promised a "tight grip" on spending in her budget, amid speculation about tax rises to plug a hole in the government's finances.

Reeves said she had asked the fiscal watchdog the Office for Budget Responsibility to prepare an independent forecast on the late November date to accompany the budget.

"The practical implication of now having a firm date is that we now have 12 weeks of Treasury trial balloons, government sources stories, jittery UK markets, and generally elevated uncertainty ahead of us. That does nobody any favours whatsoever, and is also likely to cripple both business and consumer decision-making for the next three months," commented Pepperstone analyst Michael Brown.

In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average fading 0.1%, the S&P 500 gaining 0.5% and the Nasdaq Composite advancing 1.0%.

President Donald Trump's administration asked the US Supreme Court on Wednesday for an expedited ruling preserving the tariffs that have roiled global markets, saying a lower court ruling against it has already damaged trade negotiations.

Solicitor General John Sauer urged the court in a filing to "expedite resolution of this case to the maximum extent feasible, given the enormous importance of quickly confirming the full legal standing of the President's tariffs."

The petition comes after a 7-4 ruling by the US Court of Appeals for the Federal Circuit, which found that Trump exceeded his authority in tapping emergency economic powers to impose wide-ranging duties.

The judges, however, allowed the levies to stay in place through mid-October, giving Trump time to take the fight to the Supreme Court.

In Asia on Thursday, the Nikkei 225 index in Tokyo improved 1.5%. In China, the Shanghai Composite shed 1.6%, while the Hang Seng Index in Hong Kong lost 1.1%. The S&P/ASX 200 in Sydney was up 1.0%.

Gold was quoted at USD3,533.02 an ounce early Thursday, retreating from USD3,565.82 on Wednesday.

"The yellow metal surged to a fresh record near USD3,580/oz before easing on light profit-taking. Its rally is underpinned by multiple forces, conviction in a September Fed cut, tariffs raising costs and a sense that the pain point for growth is drawing nearer," said Pepperstone's Ahmad Assiri.

"Gold has become more than a tactical tool; it is a barometer of decreasing confidence in the economic and financial outlook. Notably, flows have broadened beyond ETFs into macro funds and perhaps central banks adding depth to the move."

Brent oil was trading lower at USD67.03 a barrel early Thursday, against USD67.62 late Wednesday.

In Thursday's corporate calendar, a trading statement from electricals retailer Currys.

In the economic calendar on Thursday, there are eurozone retail sales figures at 1000 BST, US ADP private payrolls data at 1315 and weekly jobless claims figures 1330. There is also a US services sector PMI at 1445.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

EXTRA: Salesforce looks to Agentforce to drive next wave of growth

2025-09-03T22:14:27Z

Salesforce.com Inc on Wednesday said it will be unveiling a new version of its AI tool Agentforce at its Dreamforce conference as it reported strong second quarter results although shares were pegged back by soft guidance.

Chief Executive Mark Benioff said agentic enterprise will be the next wave of business and Salesforce is going to lead the way.

Speaking to analysts and investors, the CEO of the San Francisco, California-based cloud-software company said agentic enterprise is going to "fundamentally reshape and rebuild" all of our companies as humans and agents work side-by-side.

He said it has been the emergence of large language models that "really are giving us a new platform that we can build-on and extend our applications with".

Benioff said the firm will be unveiling new products at Dreamforce, Salesforce's annual conference in October, including Agentforce Version 4.

Benioff said in the three quarters since it launched Agentforce, Salesforce has won more than 6,000 paid deals and more than 12,500 overall.

He noted 40% of Agentforce new bookings this quarter came from existing customers.

Benioff said this is "just the beginning of the most transformative time in our industry ever."

"For our customers, the agentic enterprise is a complete reinvention in many cases of who they are and what their potential is," he added.

Benioff thinks the data business is probably the most strategic and most important business for Salesforce going-forward.

It is already a USD7 billion business and Data Cloud is has having a great year, he said, noting it had 140% year-over-year growth in customers.

"The usage numbers are really just off the charts, but over half of the Fortune 500 are already on Data Cloud, but it's really just the very, very beginning," he stressed.

He said the public sector opportunity remains "absolutely enormous" with the government already the firm's largest and most important customer.

"It's a multi-billion dollar customer for Salesforce and we've been driving efficiency and performance and taxpayer savings for more than a decade," Benioff added.

Benioff was speaking after Salesforce reported better-than-expected second quarter results.

Net income rose 32% to USD1.89 billion in the three months to July 31 from USD1.43 billion a year earlier, while diluted net income per share improved to USD1.96 from USD1.47.

Revenue increased by 9.8% to USD10.24 billion from USD9.33 billion, with subscription and support revenue of USD9.69 billion up 11% from USD8.76 billion.

According to FactSet consensus, revenue was expected to rise to USD10.14 billion with subscription and support sales of USD9.60 billion.

Salesforce said this was driven primarily by one-time license revenue and professional services recognition as well as strong execution.

Chief Operating and Financial Officer Robin Washington said: "We exceeded all our financial targets while achieving our tenth consecutive quarter of operating margin expansion, delivering strong returns and maximizing value for our customers and shareholders."

Non-GAAP operating margin was up 60 basis-points and GAAP operating margin up 370 basis-points, marking a 10th consecutive quarter of operating margin expansion, Washington said.

From a geographic perspective, Washington said Salesforce saw strong new business growth in the US and pockets of EMEA, particularly the Netherlands and Switzerland, while the UK and Japan were constrained.

"From a segment perspective, we continued to see strong performance in our small and mid-market business this past quarter," he added.

While from an industry perspective, technology and comms and media performed well, while retail and consumer goods and public sector remain measured, he said.

Salesforce reported data cloud and AI annual recurring revenue over USD1.2 billion, more than doubled year-on-year. The firm said it has closed over 12,500 deals since launching Agentforce, of which over 6,000 are paid.

Washington said last month, Salesforce announced new flexible payment options for Agentforce, including pay-as-you-go to lower the barrier to adoption and encourage experimentation. Following the launch, flex credits now account for 80% of Agentforce second quarter new bookings, he added.

"We delivered an outstanding quarter to close out the first half of the year," said Benioff, adding, "we remain on track for fiscal 2026 to be a record year with nearly USD15 billion in operating cash flow."

Looking ahead, Salesforce forecast third quarter revenue of USD10.24 billion to USD10.29 billion, up 8% to 9% year-on-year. The firm forecast full year revenue of USD41.1 billion to USD41.3 billion, up 8.5% to 9% year-on-year, lifting the bottom end of guidance from USD41.0 billion.

The forecast compares to FactSet consensus for third quarter revenue of USD10.29 billion.

Washington said annual guidance includes a USD300 million foreign exchange tailwind, up USD50 million since the last print.

Salesforce continues to expect subscription and support revenue growth of around 9% year-over-year in constant-currency, driven by the momentum in Data Cloud and Agentforce this year.

This is partially offset by weakness in marketing and commerce.

Washington added that Salesforce has approved a USD20 billion expansion of its share repurchase authorisation.

Shares in Salesforce were down 3.6% in after-market dealings at USD247.15 in New York on Wednesday.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Salesforce second quarter beats forecast but guidance disappoints

2025-09-03T20:48:47Z

Salesforce.com Inc on Wednesday reported better-than-expected second quarter sales but shares were pegged back by tepid guidance.

The San Francisco, California-based cloud-software company said net income rose 32% to USD1.89 billion in the three months to July 31 from USD1.43 billion a year earlier, while diluted net income per share improved to USD1.96 from USD1.47.

Revenue increased by 9.8% to USD10.24 billion from USD9.33 billion, with subscription and support revenue of USD9.69 billion up 11% from USD8.76 billion.

According to FactSet consensus, revenue was expected to rise to USD10.14 billion with subscription and support sales of USD9.60 billion.

"We delivered an outstanding quarter to close out the first half of the year," said Marc Benioff, Chair & Chief Executive, adding, "we remain on track for fiscal 2026 to be a record year with nearly USD15 billion in operating cash flow."

The forecast compares to FactSet consensus for third quarter revenue of USD10.29 billion.

Salesforce forecast full year GAAP operating margin of 21.2%, and non-GAAP operating margin of 34.1%.

Shares in Salesforce were down 3.6% in after-market dealings at USD247.15 in New York on Wednesday.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

NEW YORK MARKET CLOSE: Shares mixed as Beige Book shows economy steady

2025-09-03T20:38:40Z

Shares ended mixed in New York on Wednesday as the Federal Reserve's Beige Book showed economic growth held steady in August, though it pointed to a weaker labour market ahead, while Alphabet shares climbed following a positive ruling in its antitrust case.

The Dow Jones Industrial Average closed down 24.58 points, 0.1%, at 45,271.23. The S&P 500 rose 32.72 points, 0.5%, to 6,448.26. The Nasdaq Composite ended up 218.10 points, 1.0%, at 21,497.73.

"The latest Beige Book showed enough softness in activity and the labor market to warrant a rate cut at the Federal Reserve's upcoming policy meeting," analysts at Oxford Economics said Wednesday.

The Federal Reserve's Beige Book showed economic activity was little changed in August from July, although prices are seen rising further from the impact of tariffs.

Among the twelve Districts surveyed, most reported little or no change in economic activity since the prior Beige Book period, with the four Districts that differed reporting modest growth.

Overall, sentiment was mixed among, with most firms either reporting little to no change in optimism or expressing differing expectations about the direction of change from their contacts.

According to the report, contacts reported flat to declining consumer spending as wages were failing to keep up with rising prices. Contacts frequently cited economic uncertainty and tariffs as negative factors.

Most Districts reported that their firms were expecting price increases to continue in the months ahead, with three of those Districts noting that the pace of price increases was expected to rise further.

While eleven Districts described little or no net change in overall employment levels, seven Districts noted that firms were hesitant to hire workers because of weaker demand or uncertainty.

"Businesses continue to be reluctant to hire in an uncertain environment, but that isn't really news," Oxford Economics added. "What was different in this Beige Book was more reports of layoffs and firms cutting headcount through attrition."

Bond yields and the dollar fell after the report.

Late Wednesday, the US 10-year Treasury was at 4.22%, down from 4.27% on Tuesday. The yield on the US 30-year Treasury was at 4.90%, narrowed from 4.97%.

The pound traded at USD1.3439 late Wednesday, up from USD1.3392 at the New York close on Tuesday. The euro fell to USD1.1658 from USD1.1641. Against the yen, the dollar was at JPY148.11, down from JPY148.35 on Tuesday.

Separate data from the Census Bureau showed new orders for manufactured goods declined by 1.3% in July from June. They had shrunk 4.8% in June from May.

The latest reading topped consensus cited by FXStreet. A slightly steeper decline of 1.4% had been expected.

New orders of durable goods fell 2.8% in July, following a 9.4% slump in June.

Alphabet shares climbed 9.0% on Wednesday after a federal judge late Tuesday said the company would not have to sell its Google Chrome search browser to comply with US antitrust law.

Instead, Google will be barred from certain exclusive deals with device makers and must share data from its search engine with competitors.

Zscaler shares declined on Wednesday despite fourth quarter sales coming in ahead of forecast.

Late Tuesday, Zscaler said revenue in the three months to July increased 21% to USD719.2 million, ahead of the USD705 million to USD707 million guided by in April.

However, fourth quarter net loss widened to USD17.6 million or to USD0.11 per diluted share from USD0.10 a year ago.

Zscaler ended down 1.5%.

Dollar Tree reported stronger than expected second quarter sales and profit, and the retailer lifted its annual guidance despite "an increasingly challenging economic backdrop".

Total revenue in the 13 weeks to August 2 surged 12% to USD4.57 billion, as net sales alone rose at the same pace to USD4.57 billion, beating the FactSet cited consensus of USD4.48 billion.

Net income grew 42% to USD188.4 million. Adjusted diluted EPS rose 13% on-year to USD0.77, beating the FactSet cited consensus of USD0.42. This included a USD0.22 positive impact "related to tariff timing".

But shares sank 8.4% as Chief Executive Mike Creedon said it third-quarter adjusted earnings to be roughly flat on-year, as "the timing of the impacts of tariffs and our mitigation activities played out differently than we originally anticipated."

Gold was quoted at USD3,564.17 an ounce late on Wednesday, up from USD3,536.29 on Tuesday.

Brent was quoted at USD67.55 a barrel on Wednesday, down from USD69.17 on Tuesday. West Texas Intermediate fell to USD63.95 from USD65.64.

In Europe, the FTSE 100 closed up 0.7% in London. The CAC 40 gained 0.8% in Paris. The DAX 40 in Frankfurt rose 0.5% in Frankfurt.

In Asia, the Nikkei 225 in Tokyo lost 0.9%. In China, the Shanghai Composite declined 1.2%, while the Hang Seng Index closed down 0.6% in Hong Kong. The S&P/ASX 200 dropped 1.8% in Sydney.

Thursday's corporate calendar has third quarter earnings from Broadcom alongside Costco's August sales result.

The global economic diary has US trade balance data, ADP unemployment, initial jobless claims, PMI data and oil and natural gas stocks.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Beige Book shows economic activity steady amid tariff uncertainty

2025-09-03T19:03:58Z

Economic activity was little changed in August from July, although prices are seen rising further from the impact of tariffs, a closely watched report on Wednesday showed.

According to the Federal Reserve's Beige Book, most of the twelve Districts reported little or no change in economic activity since the prior Beige Book period with the four Districts that differed reporting modest growth.

Overall, sentiment was mixed among the Districts, with most firms either reporting little to no change in optimism or expressing differing expectations about the direction of change from their contacts.

The Beige Book is a Federal Reserve System publication about current economic conditions across the 12 Federal Reserve Districts. Reports are published eight times per year.

Retail and hospitality sectors offered deals and promotions to help price-sensitive consumers, supporting steady demand from domestic leisure tourists but not offsetting falling demand from international visitors. The auto sector noted flat to slightly higher sales, while consumer demand increased for parts and services to repair older vehicles. Manufacturing firms reported shifting to local supply chains where feasible and often using automation to cut costs.

Eleven Districts described little or no net change in overall employment levels, while one District described a modest decline. Seven Districts noted that firms were hesitant to hire workers because of weaker demand or uncertainty.

Contacts in two Districts reported an increase in layoffs, while contacts in multiple Districts reported reducing headcounts through attrition.

Half of the Districts described modest growth in wages, while most of the others reported moderate growth. Two Districts noted little or no change in wages.

Ten Districts characterized price growth as moderate or modest. The other two Districts described strong input price growth that outpaced moderate or modest selling price growth. Nearly all Districts noted tariff-related price increases, with contacts from many Districts reporting that tariffs were especially impactful on the prices of inputs.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Burberry, recently debuted Metlen Energy & Metals to join FTSE 100

2025-09-03T18:41:44Z

Burberry Group PLC and Metlen Energy & Metals PLC have been promoted to the FTSE 100 in its latest quarterly shuffle, with Taylor Wimpey PLC and Unite Group PLC relegated from the benchmark index.

London-based fashion house Burberry has seen its share price nearly double in the last 12 months. Shares in Athens-based renewables and aluminium producer Metlen have risen 9.5% since its London-debut in early August.

Metlen began trading on the London Main Market last month. It had initially expected to join the FTSE UK index series in September.

Relegated from the FTSE 250 is Housebuilder Taylor Wimpey, alongside owner and operator of student accommodation Unite Group.

Additions to the FTSE 250 include closed-ended investment company Biopharma Credit PLC, textile services provider Johnson Service Group PLC and Oakley Capital Investments Ltd which provides access to private equity funds managed by investment adviser Oakley Capital Ltd.

Also joining the FTSE 250 are gene and cell therapy developer Oxford BioMedica PLC and Partners Group Private Equity Ltd.

Firms to exit the FTSE 250 are online retailer Asos PLC, auction market operator Auction Technology Group PLC, Bloomsbury Publishing PLC and housebuilder Crest Nicholson Holdings PLC.

Solar investor NextEnergy Solar Fund Ltd and financial sector investor Polar Capital Global Financials Trust PLC will also leave the index.

All changes will take effect from the start of trading on September 22.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Anglo American intends to sell entire stake in Valterra via bookbuild

2025-09-03T16:23:44Z

Anglo American PLC said on Wednesday it plans to sell its entire interest in Valterra Platinum Ltd, formerly called Anglo American Platinum Ltd, through accelerated bookbuild.

The London-based diversified miner is offering 52.2 million shares of Valterra. At the closing price in Johannesburg on Wednesday, the value of Anglo's shares in Valterra is ZAR48.25 billion.

Anglo retained a 19.9% shareholding in Valterra after it demerged the platinum producer as part of its portfolio simplification. Anglo held 79% stake in Valterra before the demerger that was concluded in May this year.

Valterra listed on the London Stock Exchange, and it kept its primary listing on the Johannesburg Stock Exchange.

"Given the performance of the Valterra Platinum share price since the demerger, Anglo American is now proposing to sell 100% of its remaining holding," Anglo said in a statement.

Anglo said the placing will also raise further cash for the group, strengthening its balance sheet.

The placing is being made to qualifying institutional investors only.

The bookbuilding period for the placing will start immediately and the selling entities reserve the right to close the bookbuilding process at any time, Anglo said.

Shares in Anglo American ended up 1.9% at 2,278.32 pence on Wednesday in London. In Johannesburg, they closed up 2.5% at ZAR541.74.

Valterra shares closed up 9.0% at 3,880.00 pence in London. They ended 8.8% higher at ZAR924.28 in Johannesburg.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON MARKET CLOSE: Stocks climb and pound firms as bond yields ease

2025-09-03T16:04:34Z

Stocks in London rallied on Wednesday, amid a calmer day on bond markets, supported by figures showing the UK services sector grew at its fastest rate since April 2024.

The FTSE 100 index closed up 61.30 points, 0.7%, at 9,177.99. The FTSE 250 ended 150.18 points higher, 0.7%, at 21,313.07 and the AIM All-Share finished up 2.90 points, 0.4%, at 768.47.

The Cboe UK 100 ended up 0.5% at 920.63, the Cboe UK 250 closed 0.5% higher at 18,636.55 and the Cboe Small Companies rose 0.2% to 17,076.19.

In Europe, the CAC 40 in Paris ended up 0.9%, while the DAX 40 in Frankfurt closed 0.5% higher.

The yield on UK 30-year government bonds fell to 5.61% on Wednesday from 5.71% at the time of the London equities close on Tuesday, while the yield on the shorter-dated 10-year bond narrowed to 4.75% from 4.81%.

The moves help ease some of the immediate pressure on Chancellor Rachel Reeves who set the date for her autumn budget at November 26.

Reeves said she had asked the fiscal watchdog the Office for Budget Responsibility, OBR, to prepare an independent forecast on the late November date to accompany the budget.

Speaking to the House of Commons Treasury Committee Bank of England Governor Andrew Bailey said: "I do think it's important not to focus on the 30-year bond rate," because "it is actually not a number that is being used for funding."

He said that despite the "dramatic commentary" he wouldn't "exaggerate" the cost of government borrowing.

Bailey said his main concern regarding the economy were the downside risks for the labour market.

In addition, he said there is "considerably more doubt" about how quickly and deeply the BoE can cut rates.

The pound rose to USD1.3448 late on Wednesday afternoon in London, compared to USD1.3389 at the equities close on Tuesday. The euro firmed to USD1.1679, against USD1.1659. Against the yen, the dollar was trading lower at JPY147.95 compared to JPY148.20.

In better news for the chancellor, the UK service sector grew at the fastest rate since April 2024 in August, as output and new work climbed, a report from S&P Global showed.

The S&P Global UK services purchasing managers' business activity index rose to 54.2 points in August from 51.8 in July, topping the flash reading of 53.6 released late last month.

"August data highlights a welcome acceleration of output growth and a swift rebound in order books after July's dip, leaving the UK service economy on a much stronger footing as the end of summer comes into view," said Tim Moore, economics director at S&P Global Market Intelligence.

Rob Wood, chief UK economist at Pantheon Macroeconomics said the PMI signals growth close to potential, putting the Monetary Policy Committee in a tricky position, given that inflation is heading to double the 2% target shortly.

"The PMI suggests that rate setters will have to keep policy on hold for the rest of this year at least, as growth running around potential will fail to create the spare capacity needed to bring persistent wage and price inflation down," he added.

In New York, markets were mixed after Tuesday's hefty falls. The Dow Jones Industrial Average was down 0.4%, the S&P 500 rose 0.3% and the Nasdaq Composite was 0.8% higher.

Alphabet rose 9.5% and Apple 2.3% after a US antitrust ruling on Tuesday which rejected the US government's demand that Alphabet sell its Chrome web browser was seen as a big win for the Google parent and the iPhone maker.

The yield on the US 10-year Treasury was quoted at 4.22%, narrowed from 4.28% on Tuesday. The yield on the US 30-year Treasury was quoted at 4.91%, lowered from 4.98%.

Ahead of Friday's nonfarm payrolls figures, data showed the number of job openings in the US surprisingly fell in July.

The number of job openings amounted to 7.181 million in July, falling from 7.357 million in June and 7.504 million 12 months earlier. The reading fell short of the FactSet cited consensus of a rise to 7.373 million.

On London's FTSE 100, Ashtead rose 0.8% as it raised cash flow guidance and stuck with its 4% rental revenue growth view for the current financial year.

The London-based industrial equipment hire company reported a pretax profit of USD511.6 million for the first quarter that ended July 31, falling 6.0% from USD544.4 million the year before.

Ashtead now expects free cash flow between USD2.2 billion and USD2.5 billion for the current financial year, compared to its prior guidance for USD2.0 billion to USD2.3 billion.

Chief Executive Officer Brendan Horgan said results were "solid" with revenues, profits and free cash flow "in line with our expectations as we continue to take advantage of secular tailwinds and the structural progression of our industry."

On the FTSE 250, Hilton Food plunged 17% after it said a shortage of white fish prompted "significant" raw material inflation and softer UK demand, contributing to a drop in half-year profitability.

The Huntingdon, England-based food packaging company reported pretax profit of GBP24.3 million for the 26 weeks that ended June 29, falling 4.7% from GBP25.5 million the year prior.

Weaker UK seafood demand has been driven by quota cuts leading to "significant" raw material inflation, the firm explained.

Fresnillo and Endeavour Mining rose 8.1% and 3.6% respectively reflecting the latest gains in the gold price.

JPMorgan thinks the gold price could reach USD4,000 per ounce by the second quarter of 2026 and USD4,250 by the end of next year.

Gold climbed to USD3,565.82 an ounce on Wednesday against USD3,511.91 on Tuesday.

A barrel of Brent traded at USD67.62 late Wednesday afternoon, down from USD68.81 on Tuesday, after a Reuters report that the OPEC+ group will consider a fresh increase to production when it meets over the weekend.

The biggest risers on the FTSE 100 were Fresnillo, up 155.00 pence at 2,074.00p, Endeavour Mining, up 96.00p at 2,760.00p, Babcock International, up 34.00p at 1,066.00p, Antofagasta, up 66.00p at 2,197.00p, and IAG, up 10.20p at 391.00p.

The biggest fallers on the FTSE 100 were Pearson, down 38.50p at 1,047.00p, BT Group, down 3.60p at 206.10p, BP, down 6.85p at 427.35p, Airtel Africa, down 3.40p at 215.20p and Shell, down 36.50p at 2,694.00p.

Thursday's local corporate calendar has a trading statement from electricals retailer Currys.

The global economic calendar on Thursday has eurozone retail sales figures, US ADP private payrolls data and weekly jobless claims figures and a US services sector PMI.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Fed official says "critical" to stay independent of politics

2025-09-03T14:58:04Z

A top Federal Reserve official said Wednesday the US central bank has stayed independent of political interference and insisted it would remain so.

"The independence of the Fed is critical for everything we do, and you know there are things that are going on that make people worried, but I still believe that we have an independent Fed," Fed Governor Christopher Waller told CNBC.

Appointees to the Fed will "act in an unpolitical fashion," Waller said. "So I think no matter what, the Fed will maintain its independence."

Waller was nominated by Donald Trump in the president's first term and has been mentioned as a possible successor when Chair Jerome Powell's term ends next spring.

Since returning to the White House in January, Trump has relentlessly pushed for interest rate cuts, regularly lambasting Powell on social media.

Waller was one of two Fed officials to dissent from the Fed's July decision to keep interest rates unchanged. The other dissenter, Michelle Bowman, was also appointed by Trump.

Waller declined to comment on Trump's attempt to fire fellow Fed Governor Lisa Cook, who was appointed by Joe Biden. Trump has alleged Cook committed mortgage fraud, assertions Cook's attorney has dismissed as a smear campaign.

The matter is now being litigated in a US court.

Waller said Wednesday he backed an interest rate cut later this month, reiterating that he views the weakening job market as the prime concern right now and that inflation from Trump's tariffs would be short-lived.

Waller predicted the economy would weaken, but he does not expect a recession.

"I do see slower growth through the year, mainly because of the tariff impacts," Waller said. "I mean, tariffs are a tax and taxes are never typically good for growth."

source: AFP

BoE chief warns attacks on central bank independence "dangerous"

2025-09-03T14:39:54Z

The Bank of England's governor has warned that threats to the independence of central banks was a "dangerous road to go down" amid Donald Trump's attempt to sack the governor of the US Federal Reserve.

Andrew Bailey voiced his concerns to a group of MPs on the Treasury Committee on Wednesday.

He said: "This is a very serious situation and I am very concerned because the Federal Reserve is the central bank for the world's strongest economy … it has built up a very strong reputation for its independence and for its decision-making."

He was responding to the mounting independence issues facing the US's central bank, amid the US president's move to sack Governor Lisa Cook over allegations that she committed mortgage fraud when purchasing a home in 2021.

Trump has also repeatedly demanded that the Fed, led by Chair Jerome Powell, reduce its key interest rate, which has been kept unchanged for the last five meetings.

The Fed, like the Bank of England, operates independently of the government – meaning it sets interest rate policy without political interference.

Bailey told MPs that "monetary stability and financial stability underpin the foundations of policy" that enables governments to make appropriate political decisions.

"I think what we're now seeing is people saying we should be able to trade off the foundations for those other decisions, and I'm afraid I just think that is a very dangerous road to go down," he said.

He told the committee: "The job of an independent central bank is to provide those foundations, to take independent decisions to do it, within the remit that we're given … that's how it works, that's how it should work.

"And so the threats to that I take very seriously."

Asked by Labour MP John Grady whether losing the independence of central banks could result in "higher prices, higher mortgages and higher cost of borrowing for social housing and businesses", Bailey said that was "correct".

By Anna Wise, PA Business Reporter

source: PA

US factory order decline eases to 1.3% monthly in July

2025-09-03T14:17:43Z

New US factory orders declined at a slightly slower pace than forecast, numbers on Wednesday showed.

According to the Census Bureau, new orders for manufactured goods declined by 1.3% in July from June. They had shrunk 4.8% in June from May.

The latest reading topped consensus cited by FXStreet. A slightly steeper decline of 1.4% had been expected.

New orders of durable goods fell 2.8% in July, following a 9.4% slump in June.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

US job openings ease in July, undershooting consensus - survey

2025-09-03T14:13:39Z

The number of job openings defied expectations and fell in July, a report on Wednesday showed.

The number of job openings decreased in health & and social assistance by 181,000, in arts, entertainment & recreation by 62,000 in and mining & logging by 13,000.

The report comes ahead of Thursday's ADP jobs data, which according to FactSet cited consensus, is expected to show a decrease in labour market growth to 85,000 in August, from 104,000 in July.

Friday's official nonfarm payrolls is expected to show the pace of hiring picked up to 80,000 from 73,000.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

EU starts ratification process for major Latin American trade deals

2025-09-03T12:25:47Z

EU countries are being asked to sign off on two major, yet controversial, free trade deals with Latin American countries after having received the legal texts from the European Commission on Wednesday.

The commission argues that the deals are essential to boost the EU's economy as commercial relations with major trading partners the US and China remain strained.

"Our agreements with Mercosur and Mexico are important milestones for the EU's economic future," said European Commission President Ursula von der Leyen.

"We are continuing to diversify our trade, foster new partnerships and create new business opportunities," she said.

Opposition to the Mercosur agreement in EU capitals has waned in recent years under pressure from gloomy economic prospects.

France, Poland and Italy are however still critical of the major free trade deal, mainly citing concerns about the potential economic implications for their farming sector.

Aimed at avoiding a major controversy or even a veto against the deal, both agreements are split into two parts.

Interim agreements focusing on the new tariffs only require backing from a majority of EU countries, rather than unanimity, and are expected to be approved in the coming months.

The full trade partnership agreements needs to be ratified by all 27 member states and will replace the interim deals once approved.

By Doris Pundy

source: dpa

Germany's Merz aims to thrash out budget row with coalition partners

2025-09-03T12:03:35Z

German Chancellor Friedrich Merz will have a crunch meeting with his centre-left coalition partners Wednesday to try to settle increasingly public rows over how to balance the budget.

Just four months after taking office, Merz's conservative Christian Democrats, CDU, and the centre-left Social Democrats, or SPD, have been openly clashing over Merz's plans for cuts in what he says is an "unaffordable" welfare system.

SPD Vice Chancellor and Finance Minister Lars Klingbeil has instead been pushing for tax increases on top earners, an idea Merz has rejected.

Merz is expected to meet with Klingbeil and SPD co-leader and Labour Minister Baerbel Bas in the late afternoon. Markus Soeder, head of the CSU, the CDU's Bavarian sister party, will also attend.

The meeting comes days after Bas raised eyebrows by describing claims that Germany's welfare system is unaffordable as "bullshit".

Merz hit back at this in an interview with Sat1 television on Tuesday, saying he had spoken to Bas and told her "this is not the sort of language I want used within the coalition".

He added that EUR5 billion could be saved by making cuts to benefits for the unemployed and low earners.

Over the next few weeks the coalition will have to finalise the budget for this year and sign off the one for 2026, while deciding how to plug a budget gap projected to reach EUR30 billion in 2027.

The friction between the two parties has sparked memories of the fractious three-way coalition under previous SPD chancellor Olaf Scholz, which fell apart last year after constant internal bickering over fiscal policy.

The CDU/CSU won the resulting early general election in February but was left with only the SPD as a viable coalition partner.

Merz has characterised his government as "not a love marriage but a coalition with a job to do".

The two parties have agreed on some major changes, such as amending Germany's constitution to allow massive borrowing to rebuild the armed forces and upgrade national infrastructure.

But tensions within the coalition have also caused public spats.

The most notable was in July over what should have been the routine nomination of a new judge to Germany's highest court.

The CDU/CSU withdrew support for the SPD's nominee Frauke Brosius-Gersdorf after a right-wing media campaign accused her of being a left-wing activist on issues such as abortion.

That sparked fury in the SPD ranks, where many have also chafed against Merz's hard line on immigration and his limited enthusiasm for climate protection.

source: AFP

FOREX: Pound up as gilt yields ease but bond market nerves remain

2025-09-03T12:01:15Z

Sterling recovered some ground on Wednesday in a calmer day for gilts, after the chancellor announced a date for the next major fiscal announcement, but eyes remained on bond markets across the globe before focus turns to US employment data.

SPI Asset Management analyst Stephen Innes warned that the "global bond market has been singing a warning song".

"US 30s are pressing toward 5%, curves across Europe and Japan are steepening—not from healthy reflation, but from inflation risk outlasting policy discipline," Innes added.

The yield on the 30-year US Treasury topped 5%, a "key psychological" level, according XTB analyst Kathleen Brooks.

"This is considered a line in the sand: the US has a budget deficit of 6.33% of GDP, at 5%+ levels for long term debt, this could trigger concerns about US fiscal sustainability, and it may also lead to further risk aversion," Brooks added.

The yield on the UK 10-year government bond faded to 4.78% on Wednesday afternoon UK time, from 4.80% late Tuesday.

UK Chancellor Rachel Reeves has announced that she will present her autumn budget on Wednesday November 26.

The Office for Budget Responsibility, OBR, will be given the required 10 weeks' notice to provide an independent forecast.

Worries are mounting over the UK's finances before the budget, with concerns that Reeves will be forced to hike taxes and slash spending to balance the books.

The scale of the challenge facing the chancellor was illustrated by the NIESR economic think tank saying last month that Reeves was set for a GBP41 billion shortfall on her self-imposed rule of balancing day-to-day spending with tax receipts in 2029-30.

Against the dollar, sterling rose to USD1.3403 on Wednesday, from USD1.3371 on Tuesday. Versus the euro, it climbed to EUR1.1506 from EUR1.1483.

Ebury analyst Matthew Ryan commented: "The problem facing the UK is that the further bonds continue to climb, the larger the government's costs are to finance the public debt, and the greater the tax hikes will need to be in order to plug the gap, risking a deadly 'doom loop' that could completely derail Britain's economy."

Dutch bank ING believes the market reaction to the "gilts selloff looks a bit overblown".

"The pound had a rough Tuesday as back-end gilt yields rose, with the 30-year hitting its highest level since 1998. It's important to note, though, that the long-dated bond selloff was happening across Europe yesterday, and gilts didn't underperform their peers. Yesterday's 0.7% rise in EUR/GBP highlights just how sensitive the pound is to yield increases, but we take a conservative view and don't expect the pound to fall much further on gilt moves alone," ING added.

Versus the dollar, the euro advanced slightly to USD1.1643 from USD1.1640.

Swissquote analyst Ipek Ozkardeskaya commented: "Eurozone CPI came in slightly hotter than expected, with core inflation holding at 2.3% instead of easing further. While this hasn't shifted ECB expectations much, the euro remains under pressure from widening yield spreads and France's political drama."

Versus the yen, the dollar rose to JPY148.65 from JPY148.56. Against the Swiss franc, it climbed to CHF0.8049 from CHF0.8040.

Against the Australian dollar, the buck faded to AUD1.5299 from AUD1.5383. Versus its Canadian counterpart, it was flat at CAD1.3799 against CAD1.3800.

Australia's economic growth picked up pace and outperformed expectations in the second quarter of 2025, official data showed on Wednesday.

According to the Australian Bureau of Statistics, the country's gross domestic product rose 0.6% quarter-on-quarter in the three months ended June, accelerating from a revised 0.3% increase in the March quarter.

The latest reading beat the FXStreet-cited consensus forecast of 0.5% growth.

Wednesday has the latest US job openings and labour turnover survey at 1500 BST, before the ADP jobs report on Thursday and the official nonfarm payrolls reading Friday.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

COMMODITIES: Gold hits another all-time high record; oil pulls back

2025-09-03T11:30:55Z

Gold hit another historic record high on Wednesday, extending an "impressive rally" amid high hopes of interest rate cut in the US this month.

Spot gold was quoted at USD3,545.96 an ounce on Wednesday afternoon in London, up 1.9% from USD3,480.58 at the same time on Tuesday. Silver rose to USD40.90 an ounce from USD40.52.

Gold surged to an all-time high record of USD3,546 an ounce on Wednesday, as it underwent an "impressive rally", fuelled by a combination of macroeconomic factors and capital flows, XS.com analyst Linh Tran said.

It had advanced to USD3,540 on Tuesday for the first time in history.

After setting new record highs, bullion has continued to attract investors, thanks to expectations that the US Federal Reserve will soon shift toward monetary policy easing, Tran said.

Investors will be keen to dissect the US non-farm payroll data, due out on Friday. Fed Chair Jerome Powell late last month left the door open for an interest rate cut, citing weak labour market. The Fed will decide on rates in exactly two week's time.

"Each time US economic data signals a slowdown, expectations for imminent Fed rate cuts rise, pushing bond yields lower and providing direct support for gold," XS.com analyst Linh Tran said, adding: "This is the clearest transmission channel explaining why gold reacts strongly to labour market data, inflation releases, and Fed communications."

XS.com's Tran expects gold to maintain its upward trajectory in the short term. "Over the medium term, as long as real yields remain in a downward trend and the Fed gradually shifts toward easing, the bullish outlook for gold will stay intact," the XS.com analyst said.

In other commodities, Brent Crude oil was priced at USD67.85 a barrel on Wednesday, down from USD69.23 on Tuesday. West Texas Intermediate fell to USD64.18 a barrel from USD65.76.

Oil prices retreated in volatile trade on Wednesday, following a sanctions-driven surge on Tuesday, Kudotrade analyst Konstantinos Chrysikos said.

Traders worry that the latest escalation between Russia and Ukraine may prompt tougher US sanctions, disrupting oil supply.

"The market could remain sensitive to the possibility of fresh US sanctions and is assessing the measures targeting vessels involved in Iran's oil shipping network," Chrysikos said.

Traders are unlikely to take huge bets before the Opec+ meeting on September 7.

"The consensus anticipates that the eight members participating in voluntary cuts to maintain current levels, putting a pause to their production increases and potentially anchoring prices within the established range," the Kudotrade analyst said.

On the demand side, traders forecast a US crude oil inventory draw of about 3.4 million barrels for the week that ended August 29, Chrysikos said, noting: "A draw of this magnitude, to be confirmed in the official EIA report, could reinforce the view of a tightening near-term market balance and could support prices."

In other metals, platinum was priced at USD1,408.06 an ounce on Wednesday, up from USD1,389.15 on Monday. Palladium was quoted at USD1,151.12 an ounce, up from USD1,125.73.

The copper price eased to USD9,862.00 per tonne from USD9,897.00. Aluminium rose to USD2,612.00 from USD2,610.00.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

LONDON MARKET MIDDAY: Stocks advance despite bond market jitters

2025-09-03T11:05:41Z

Stock prices in London were higher at Wednesday midday in London, after mixed early trading, as global bonds remained under pressure.

The FTSE 100 index was up 51.75 points, 0.6%, at 9,168.44. The FTSE 250 was 118.24 points higher, 0.6%, at 21,281.13, and the AIM All-Share was up 4.00 points, 0.5%, at 769.57.

The Cboe UK 100 was 0.5% higher at 920.31, the Cboe UK 250 was up 0.4% at 18,615.87, and the Cboe Small Companies climbed 0.4% to 17,105.39.

In European equities on Wednesday, the CAC 40 in Paris was 1.0% higher, while the DAX 40 in Frankfurt was up 0.9%.

"Having been troubled by a jump in long-dated government bond yields yesterday, equities got off to a wobbly start again as investors woke up to leaders of China, Russia and North Korea coming together in public for the first time," said AJ Bell Investment Director Russ Mould.

North Korean leader Kim Jong Un and Russia's Vladimir Putin flanked Xi Jinping at a massive parade of military might in Beijing on Wednesday.

Kicking off the parade, President Xi warned the world was still "faced with a choice of peace or war", but said China was "unstoppable".

Mould added: "The FTSE 100 acted like a yo-yo in early trading. Having enjoyed a small bump at the market open amid further weakness in the pound, the UK currency began to stage a recovery and that created a headwind for the blue-chip equity index. It then quickly bounced back as investors loaded up on healthcare stocks, with AstraZeneca leading the charge."

Gilt yields continued to rise in the UK on Wednesday as bond investors worried about the state of the public finances.

Chancellor Rachel Reeves faces pressure to provide solutions at the upcoming budget.

On Wednesday, the date was set for the centre-piece policy event to take place on November 26.

The UK chancellor set the date for her highly-anticipated budget amid rampant speculation about tax rises and market jitters over the UK's public finances.

"The rise in the gilt yield sends a clear message – that investors believe the UK is now a riskier proposition and they want a higher return for lending money to the government," Mould said.

Reeves has acknowledged the economy is "not working well enough" and promised a "tight grip" on spending in her autumn budget.

In a video on X, the chancellor said: "Britain's economy isn't broken. But I know it's not working well enough for working people. Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change."

She said "fixing the foundations" has been her mission for the past year, and touted government action including trade deals with the US, India and the EU and making a start on tearing up planning rules to reach the target to build 1.5 million homes.

"But I'm not satisfied," she said. "There's more to do. Cost-of-living pressures are still real. We must bring inflation and borrowing costs down by keeping a tight grip on day-to-day spending through our non-negotiable fiscal rules. It's only by doing this can we afford to do the things we want to do."

The pound was up at USD1.3396 at midday on Wednesday in London, compared to USD1.3389 at the equities close on Tuesday. The euro stood lower at USD1.1640, against USD1.1659. Against the yen, the dollar was trading up at JPY148.72 compared to JPY148.20.

Stocks in New York were called higher. The Dow Jones Industrial Average was called to open flat, the S&P 500 index up 0.4%, and the Nasdaq Composite 0.7% higher.

The yield on the US 10-year Treasury was quoted at 4.29%, stretching from 4.28%. The yield on the US 30-year Treasury was flat at 4.98%.

Earlier in the day, the 30-year Treasury hit 5.00% for the first time since July.

Overnight, Alphabet escaped a forced divestiture of Google's Chrome browser after a judge rejected the US government's demand as part of a major antitrust case.

However, the court imposed sweeping remedies aimed at restoring competition in online search.

The landmark ruling came after Judge Amit Mehta found in August 2024 that Google illegally maintained monopolies in online search through exclusive distribution agreements worth billions of dollars annually.

Class A shares in the Mountain View, California-based company jumped 6.5% during pre-market trading in New York on Wednesday morning.

Back in London, Babcock International rose 2.9%.

An agreement would see Babcock International build Type-31 frigates in Rosyth, Scotland. A deal for Denmark to buy three of the Type-31 'Arrowhead 140' frigates is expected to be announced this month, the newspaper said, while Sweden is looking to place orders for four of the ships, with a decision due by the end of the year.

The talks with Denmark and Sweden follow the GBP10 billion agreement, announced at the weekend, for Norway to buy five Type-26 frigates to be built in Glasgow by BAE Systems.

M&G fell 1.0% on the FTSE 100 index.

The London-based asset manager said its profit increased in the first half of the year, amid "strong" net flows from open business and a larger investment return.

Pretax profit more than doubled to GBP559 million in the six months to the end of June from GBP209 million a year ago.

The investment return climbed 18% to GBP5.30 billion from GBP4.47 billion.

However, the insurance service result fell 4.5% to GBP514 million from GBP538 million, as insurance revenue increased 0.4% to GBP1.99 billion from GBP1.98 billion, but insurance service expenses ticked up 1.8% to GBP1.45 billion from GBP1.43 billion.

Overall, M&G's net insurance and investment result for the first half more than doubled to GBP1.60 billion from GBP766 million.

Watches of Switzerland led the FTSE 250 index and jumped 7.2%.

The Leicester, England-based watch and jewellery retailer told its annual general meeting that it continues to see strong demand from the US despite the steep tariffs imposed on imports from Switzerland.

It said it is "pleased" with its business performance in the 18 weeks that ended on Sunday and is on track for a good first half of financial year 2026 in line with its expectations.

Watches of Switzerland said it saw consistently strong trading throughout the period, particularly in the US, despite the Trump administration's imposition of 39% tariffs on imports from Switzerland, starting on August 1.

"While the trading update is light on detail, the lack of any major alarms and the fact the company is sticking with existing guidance is enough for investors to give it a warm welcome," said AJ Bell's Russ Mould.

Hilton Food Group led the laggers on the index and sank 16%.

The food packaging company said aid a shortage of white fish prompted "significant" raw material inflation and softer UK demand, contributing to a drop in half-year profitability.

Hilton Food reported pretax profit of GBP24.3 million for the 26 weeks that ended June 29, falling 4.7% from GBP25.5 million the year prior.

Adjusted operating profit edged down 0.4% to GBP46.6 million from GBP46.8 million, but rose 1.9% on a constant currency basis.

Revenue increased 7.6% to GBP2.09 billion from GBP1.94 billion, reflecting higher volumes and higher raw material prices, while administrative expenses rose 5.0% to GBP157.8 million from GBP150.3 million.

On the AIM market, Jangada Mines rose 30%.

The natural resources development company with interests in Brazil said exploration work has now begun at its Paranaita gold project, following its recent capital raise. The firm aims to validate the existing gold resource of around 210,000 ounces of gold a year at the project.

Maintel sank 22%.

The provider of communications services for the UK public and private sectors reported "delays in pipeline closures and the loss of a significant key deal for the year".

As a result, it expects annual revenue of GBP95.0 million, with a "slightly unfavourable" gross margin due to the remaining revenue mix.

The company now expects adjusted earnings before interest, tax, depreciation and amortisation of around GBP7.0 million.

Revenue in 2024 amounted to GBP97.9 million, while adjusted Ebitda totalled GBP10.5 million.

Brent oil fell to USD67.66 a barrel at midday in London on Wednesday from USD68.81 late Tuesday.

Gold continued to climb, quoted up at USD3,540.40 an ounce against USD3,511.91. The yellow metal hit a new record of USD3,546.96 early on Wednesday morning.

Still to come on Wednesday's economic calendar is US factory goods orders data and the release of the Federal Reserve's Beige Book.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Dollar Tree lifts outlook as profit boosted by "tariff timing"

2025-09-03T10:59:36Z

Dollar Tree Inc on Wednesday reported stronger than expected second quarter sales and profit, and the retailer lifted its annual guidance despite "an increasingly challenging economic backdrop".

The Chesapeake, Virginia-based discount store owner said total revenue in the 13 weeks to August 2 surged 12% to USD4.57 billion from USD4.07 billion a year prior. Net sales alone rose at the same pace to USD4.57 billion, beating the FactSet cited consensus of USD4.48 billion.

Dollar Tree's net income grew 42% to USD188.4 million from USD132.4 million a year earlier. Adjusted diluted earnings per share rose 13% on-year to USD0.77, beating the FactSet cited consensus of USD0.42. This included a USD0.22 positive impact "related to tariff timing".

"The strong sales growth, margin outperformance, and market share gains that Dollar Tree delivered in the second quarter against an increasingly challenging economic backdrop reinforces the unique position that Dollar Tree occupies in today's retail landscape," Chief Executive Officer Mike Creedon said.

"With the Family Dollar sale complete, Dollar Tree is now a fully focused business and every ounce of our leadership attention, capital investment, and operating resources is now directed toward strengthening the Dollar Tree brand."

Looking ahead, it now expects annual net sales from continuing operations between USD19.3 billion and USD19.5 billion, its outlook raised from USD18.5 billion to USD19.1 billion. The guidance is based on comparable store net sales growth of 4% to 6%, with that expectation lifted from 3% to 5%.

The adjusted diluted EPS from continuing operations outlook range is now at USD5.32 to USD5.72, raised from USD5.15 to USD5.65.

"We believe that the positive timing impact of approximately USD0.20 on adjusted diluted EPS from

continuing operations will reverse in the third quarter 2025. As such, we expect that our third

quarter 2025 adjusted diluted EPS will be similar third quarter 2024." it added.

Adjusted diluted EPS in the third quarter of the prior year was USD1.12.

Shares in the company were down 3.9% in pre-market dealings in New York on Wednesday. They had risen 2.0% to USD111.35 on Tuesday.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

UPDATE: Economy "not working well enough" — UK Chancellor Reeves

2025-09-03T10:38:19Z

Rachel Reeves has acknowledged the economy is "not working well enough" and promised a "tight grip" on spending in her autumn budget, which she will deliver on November 26.

The UK chancellor set the date for her highly-anticipated budget amid rampant speculation about tax rises and market jitters over the UK's public finances.

Reeves on Wednesday said she had asked the fiscal watchdog the Office for Budget Responsibility, OBR, to prepare an independent forecast on the late November date to accompany the Budget.

The chancellor said she will prioritise curbing inflation and borrowing costs, keeping public spending under control by meeting her fiscal rules, and kick-starting economic growth.

She is widely expected to have to hike taxes to balance the books, with the relatively late budget date giving her time to lay the groundwork for potential changes.

Concerns over the public finances helped push UK long-term borrowing costs to 27-year highs ahead of the budget date announcement.

Reeves is expected to have to plug a black hole in the nation's finances estimated by some to be as much as GBP51 billion.

But the yield on 30-year UK government bonds – also known as gilts – eased back after the Treasury revealed the date of the major fiscal event.

"But I'm not satisfied," she said. "There's more to do. Cost-of-living pressures are still real.

"We must bring inflation and borrowing costs down by keeping a tight grip on day-to-day spending through our non-negotiable fiscal rules. It's only by doing this can we afford to do the things we want to do.

"If renewal is our mission and growth is our challenge, investment and reform are our tools. The tools to building an economy that works for you – and rewards you. More pounds in your pocket. An NHS there when you need it. Opportunity for all.

"Those are my priorities. The priorities of the British people. And it is what I am determined to deliver."

Reeves is expected to make a series of public announcements on productivity before the Budget.

The scale of the challenge facing the chancellor was illustrated by the NIESR economic think tank saying last month that Reeves is set for a GBP41 billion shortfall on her self-imposed rule of balancing day-to-day spending with tax receipts in 2029-30.

Although recent pressure on gilts came amid a bond sell-off globally, some analysts believe the weakness in the UK bond market was compounded by concerns over the prime minister's reshuffle of his Downing Street team on Monday.

Keir Starmer moved the chancellor's deputy, Darren Jones, into a new role as chief secretary to the prime minister, a change some interpreted as a blow to Reeves's authority.

But No 10 on Tuesday insisted the chancellor's role had not been diminished, saying Starmer and Reeves spoke "at length over the summer about how these changes would bolster their joint approach to the growth agenda".

By Sophie Wingate and Helen Corbett, PA Political Staff

Press Association: Finance

source: PA

UK government bond sell-off eases after budget date confirmed

2025-09-03T09:47:55Z

UK long-term borrowing costs have eased back from fresh 27-year highs after the Treasury revealed the keenly-awaited autumn budget will take place on November 26 – also helping to take the pressure off the pound.

The yield on 30-year UK government bonds – also known as gilts – edged lower to 5.691% at one stage, having earlier hit a new high not seen since 1998.

Gilt yields move counter to the value of the bonds, meaning their prices fall when yields rise.

The pound, which suffered hefty losses on Tuesday, also reversed early session falls to stand 0.1% higher at USD1.341 and was flat at EUR1.15.

Financial markets have been heavily focused on the upcoming budget, with the sell-off in gilts largely down to worries over Britain's public finances and as investors look for reassurances on how Reeves will plug a black hole in the nation's public finances – estimated by some to be as much as GBP51 billion.

But recent pressure on gilts have also come amid a bond sell-off globally, with European and US government bonds likewise seeing yields jump due to political uncertainty and public finance concerns.

Japan was the latest to see its 30-year yield sent soaring as it hit an all-time high on worries over rising debts.

Rising yields on these bonds mean it costs more for governments to borrow from financial markets.

But experts believe a driver of weakness in the UK bond market this week could have been compounded by concerns over the prime minister's government reshuffle on Monday and Chancellor Rachel Reeves's position.

No 10 insisted on Tuesday that the chancellor's authority was not being dealt a blow by Keir Starmer's shake-up in a bid to calm market jitters.

This week's reshuffle saw the chancellor's deputy, Darren Jones, move into a new role as chief secretary to the prime minister.

Health Secretary Wes Streeting told Sky News: "The chancellor, since she came in last year, has been determined to restore stability to our economy, to get growth back into our economy, and to create the conditions where we can get the nation's finances back to health."

He said while there are "encouraging signs", there is "much more to do".

Streeting added: "Britain is not out of the woods, and that is why the discipline and the focus that she [the chancellor] has brought on cost of living, on economic growth and creating the conditions for businesses to be successful is really important, and the discipline we show as a Cabinet in terms of public spending is really important."

Kathleen Brooks, research director at XTB, said the "focus is likely to remain on the budget for some time" and cautioned that bond markets will continue to see volatility.

She said: "UK bond yields have been on an upward trajectory for most of this year and have risen significantly since Labour took office.

"The bond market will need some hefty persuading that Labour will rein in public sector spending and bring the UK's finances under control.

"This is why we expect to see bouts of UK bond market volatility in the coming months."

By Holly Williams, PA Business Editor

Press Association: Finance

source: PA

Eurozone producer prices rise in July as energy costs surge - Eurostat

2025-09-03T09:21:42Z

Industrial producer prices in the eurozone rose in July, driven by a renewed surge in energy prices, official figures showed on Wednesday.

According to first estimates from Eurostat, producer prices in the euro area increased by 0.4% month-on-month in July, following a 0.8% rise in June. Across the EU, prices rose 0.6%, decelerating from 0.7% the prior month.

The latest data pointed to a sharp monthly rise in energy prices, up 1.5% in the eurozone and 2.3% in the EU. Meanwhile, prices for intermediate goods edged down 0.2%, and those for capital goods, durable consumer goods and non-durable goods saw either modest increases or remained flat.

Excluding energy, eurozone industrial producer prices were unchanged from June.

Among member states, Romania posted the largest monthly increase in producer prices at 6.7%, followed by Bulgaria at 5.7% and Slovakia at 2.8%. The steepest declines were seen in Estonia, down 1.0%, Latvia, down 0.7%, and Luxembourg, down 0.4%.

On an annual basis, producer prices in the eurozone rose 0.2% compared with July 2024, down from 0.6% in June. The EU registered a 0.4% annual increase, also a slowdown from 0.6% previously.

Energy prices were 1.2% lower year-on-year in the euro area, while prices for capital goods, durable, and non-durable consumer goods all saw annual increases. Prices for intermediate goods declined 0.3%.

Excluding energy, eurozone producer prices were up 1.0% annually.

The sharpest annual increases were again recorded in Bulgaria, up 10.7%, Denmark, up 4.5%, and Romania, up 2.5%. Estonia, down 6.1%, Luxembourg, down 4.5%, and Portugal, down 3.6%, registered the biggest year-on-year declines.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UK service sector grows at fastest pace since April 2024 in August

2025-09-03T09:12:37Z

The UK service sector grew at the fastest rate since April 2024 in August, as output and new work climbed, survey results from S&P Global showed on Wednesday.

The S&P Global UK services purchasing managers' business activity index rose to 54.2 points in August from 51.8 in July, topping the flash reading of 53.6 released late last month.

The reading moved further above the neutral 50-point mark separating growth from contraction to the highest reading for 16 months. This indicates a "solid rate" of output growth at UK service sector firms, compared to the "relatively subdued" expansion in the second quarter.

S&P Global said UK service providers commented on a general improvement in trading conditions, the release of pent-up demand, and support from lower borrowing costs.

New orders returned to expansion, after a moderate decline in July. The increase in total new work received by service sector firms in the UK was the strongest since September 2024.

Data in August also indicated a rise in new export orders for the first time since March.

Despite the increase in workloads, S&P Global said the survey showed service providers retained capacity to complete both new and existing orders. As a result, backlogs of work fell for the twenty-seventh month running.

Staffing numbers in the UK service economy fell again amid spare capacity and margin pressure linked to rising payroll costs.

S&P Global noted that the current 11-month period of falling employment is the longest seen since the period between 2008 and 2010.

Overall input costs increased sharply in August at the fastest pace for three months, after input price inflation eased to a seven-month low in July.

Looking ahead, nearly half of the survey panel said they expect a rise in business activity during the year ahead, up to 49% from 44% in July, while 14% predict a decline.

This was the strongest degree of business optimism since October 2024.

The UK composite PMI also increased to 53.5 points in August from 51.5 in July. The index was above the neutral threshold for the fourth consecutive month, and beat a flash reading of 53.0 from last month.

On Monday, S&P Global reported that the PMI for manufacturing fell to 47.0 points in August from 48.0 in July, remaining below the 50-point neutral mark.

It also slightly underperformed the flash reading of 47.3 points.

"The seasonally adjusted new orders index rose by over six points in August, which was the largest one-month gain since March 2021 and indicative of a decisive improvement in customer demand. This was helped by greater domestic business and consumer spending, alongside the first increase in export sales since March."

Moore added: "Improved sales pipelines, lower borrowing costs and receding fears about US tariffs all helped to boost business optimism. However, many service providers still commented on elevated government policy uncertainty and worries about forthcoming tax-raising measures expected in the autumn budget."

The services PMI is compiled by S&P Global from responses to a questionnaire from a panel of around 650 service sector companies in the UK. The responses were collected between August 12 and 27.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

UK autumn budget date set for November 26 — Chancellor Rachel Reeves

2025-09-03T08:46:24Z

Rachel Reeves has announced that she will present her autumn budget on Wednesday November 26.

The Office for Budget Responsibility, OBR, will be given the required 10 weeks' notice to provide an independent forecast.

The UK chancellor is under increasing pressure as Britain's long-term borrowing costs continued to surge higher on Wednesday, hitting fresh 27-year highs, while the pound also remained under pressure.

Worries are mounting over the UK's finances before the budget, with concerns that Reeves will be forced to hike taxes and slash spending to balance the books.

By Sophie Wingate, PA Deputy Political Editor

Press Association: Finance

source: PA

Germany service business activity unexpectedly declines in August

2025-09-03T08:46:23Z

Germany's business activity in the service sector unexpectedly declined amid weakness in demand and uncertainty, data published by S&P Global showed Wednesday.

The HCOB Germany services purchasing managers' business activity index fell to 49.3 points in August, underperforming against the flash reading of 50.1 published on August 21, from 50.6 in July.

Unexpectedly falling below the neutral 50-point mark separating growth from contraction, it indicates business activity in Germany declined.

The Germany composite PMI output index dipped to 50.5 in August from 50.6 in July, weaker than the flash reading which had estimated an improvement to 50.9 in August.

It was the third consecutive month of business activity growth for the German production index.

S&P Global said: "The relatively consistent picture for overall output growth did however mask a divergence at the sector level, with a stronger increase in manufacturing production contrasting with a renewed decline in the service sector. This dichotomy also extended to new orders, which were down slightly on the month thanks to the drag from services.

"Employment meanwhile fell at the quickest rate for six months, but in this case the decline was centred on manufacturing. The goods-producing sector also led a slight drop in business expectations, which slipped to a three-month low."

Cyrus de la Rubia, chief economist at Hamburg Commercial Bank noted a "sluggish" economic momentum in Germany, amid weakness in demand within the service sector, with companies citing ongoing uncertainty among their clients. Further, there was a decline in incoming orders, including from abroad.

He added: "The rise in costs faced by service firms is, according to some survey participants, linked to wages, which appear to be climbing sharply despite the weak economic backdrop. In fact, official statistics show that collectively bargained hourly wages rose by an average of 5% year-on-year in July.

"The shortage of skilled labour, driven by demographic trends, remains a persistent challenge, despite the economic slowdown and despite advances in artificial intelligence. Against this backdrop, the weak economic environment hasn't yet led to significant layoffs in the service sector. Employment has instead remained flat recently."

On Monday, S&P Global had reported that Germany's manufacturing production growth was better than expected in August, but goods producers shed jobs at an even quicker rate than in July, according to survey results from S&P Global on Monday.

The Germany manufacturing PMI improved to a 38-month high of 49.8 points in August from 49.1 in July, but underperformed against the flash estimate of 49.9 points. Getting closer to the neutral 50-point mark separating growth from contraction, it indicates the pace of decline decelerated in August.

The Germany manufacturing output index improved to 52.9 points in August, a 41-month high, from 50.6 in July, beating the flash estimate of 52.6 points.

The composite PMI is compiled by S&P Global from responses to a questionnaire sent to a panel of around 400 service sector companies in Germany. The responses were collected between August 12 and 26.

The German construction PMI will be published on Thursday.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Eurozone services growth slows in August amid rising prices - PMI

2025-09-03T08:23:12Z

Growth in the eurozone's services sector slowed in August, as inflationary pressures built and external demand continued to weaken, survey results from S&P Global showed on Wednesday.

The Hamburg Commercial Bank eurozone composite purchasing managers' output index edged up to 51.0 points in August from 50.9 in July, hitting a 12-month high and just below the 51.1 points flash estimate published late last month.

It remained above the 50-point threshold that separates expansion from contraction, suggesting the single currency zone's recovery "remains fragile".

The services PMI business activity index slipped to 50.5 points from 51.0 in July, a two-month low and below the flash score of 50.7 points.

"Right now, the services sector feels more like stagflation than recovery," said HCOB Chief Economist Cyrus de la Rubia. "The rate of expansion has slipped even further from an already slow pace, while cost pressures have increased and selling price inflation nudged slightly higher."

The survey data showed new orders rose across the private sector for the first time since May 2024, though the improvement was largely driven by factory sales. New business in services edged up only slightly.

External demand remained weak. New export orders declined at the fastest rate since March, extending a three-and-a-half-year trend of falling overseas sales.

Employment in the eurozone rose for the sixth consecutive month, with the rate of job creation hitting a 14-month high. The uptick came entirely from the services sector, as manufacturers shed jobs again. Backlogs of work continued to fall, but the pace of depletion was the slowest since early 2023.

Business sentiment remained positive but subdued, ticking down slightly from July and staying below the long-run average.

Meanwhile, inflationary pressures re-emerged. Input costs rose at the fastest pace since March, driven mostly by the services sector. Selling prices increased at the sharpest rate in four months, though firms were only partially able to pass higher costs on to clients.

Among the largest eurozone economies, Spain remained the fastest-growing despite slowing momentum, followed by Italy and Ireland. France posted its best performance in a year but remained marginally in contraction territory at 49.8 points.

"The European Central Bank is likely viewing the PMI prices data for services with mixed emotions," HCOB's de la Rubia said.

"On the one hand, rising input costs point to mounting inflationary pressures. On the other, selling price inflation has barely moved, suggesting that service providers are struggling to pass those higher costs on to consumers in full. Increasing costs mean that inflationary pressures are building beneath the surface, however."

The survey, which includes around 5,000 private sector firms across the eurozone, collected responses during the second half of the month.

On Monday, manufacturing PMI figures showed the index rose to 50.7 points in August from 49.8 in July.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Shell abandons huge biofuel project in Netherlands

2025-09-03T08:22:10Z

London-based oil firm Shell PLC announced Wednesday it has abandoned construction of one of Europe's largest biofuel plants in the Netherlands, as it focuses on its fossil fuels business.

Faced with weak market conditions, the company last year suspended construction of the renewables biofuel factory in Rotterdam that was intended to produce sustainable aviation fuel, SAF, and diesel from waste.

"As we evaluated market dynamics and the cost of completion, it became clear that the project would be insufficiently competitive," Machteld de Haan, Shell's downstream, renewables & energy solutions president, said in a statement.

The project was first announced in 2021 as part of plans to help Europe meet internationally binding emissions reduction targets.

Shell and rival London-based energy firm BP PLC have been walking back various climate objectives and focusing more on oil and gas to raise their profits, which has drawn criticism from environmental activists.

More than half of the facility's capacity was intended to produce SAF – a biofuel made from plant and animal materials like cooking oil and fat which produces lower carbon emissions than traditional jet fuel.

Under plans to tackle climate change, the EU requires airlines to gradually increase the amount of SAF they use to power planes.

Airlines, however, complain that SAF is not widely available and too expensive.

Shell warned investors last year that its second-quarter had suffered a significant write-down owing to the shelved project.

Shell shares rose 0.9% to 2,754.00 pence each on Wednesday morning in London.

source: AFP

LONDON MARKET OPEN: London stocks mixed as bond sell-offs accelerate

2025-09-03T07:56:56Z

London stocks were mixed at Wednesday's market open, as bond sell-offs accelerate and safe-haven metals like gold continue to climb.

The FTSE 100 index opened up 12.66 points, 0.1%, at 9,129.35. The FTSE 250 was down 21.42 points, 0.1%, at 21,141.47, and the AIM All-Share was up 1.04 points, 0.1%, at 766.61.

The Cboe UK 100 was up 0.4% at 916.23, the Cboe UK 250 was down 0.3% at 18,481.96, and the Cboe Small Companies was up 0.1% at 17,058.45.

In European equities on Wednesday, the CAC 40 in Paris and the DAX 40 in Frankfurt both gained 0.3%.

"September didn't start on a positive note for global markets. Market sentiment was less than cheery as the US returned from its long weekend, and the selloff in long-maturity bonds in developed markets accelerated," commented Swissquote analyst Ipek Ozkardeskaya.

"The US 30-year yield flirted with the 5% psychological mark, Japan's 30-year yield pushed toward multi-decade highs, while the UK's 30-year gilt yield climbed to levels not seen since 1998. In France, the 30-year yield spiked to 4.5% for the first time since 2009, and the spread between German and French 10-year yields widened beyond 80bp — highlighting mounting concerns around France's budget standoff, where Bayrou's budget plans face stiff political resistance."

Japanese government bond yields hit a record high on Wednesday, following rises in the US and Europe on the back of concerns about political uncertainty and public finances.

The yield on 30-year bonds reached 3.290%, the highest on record. The yield also rose on Japanese debt of other maturities. Japan has one of the highest ratios of debt to gross domestic product, GDP, of advanced economies.

Japan's sale of 30-year debt on Thursday will be closely watched by investors around the world given the recent history of ructions in Tokyo spilling over into other markets, Bloomberg News reported.

Meanwhile, opponents of Prime Minister Shigeru Ishiba in Japan's ruling party sought on Wednesday to rally support for a new leadership election, with several party heavyweights reportedly turning on the embattled premier.

The yield on the US 10-year Treasury was quoted at 4.30%, stretching from 4.28%. The yield on the US 30-year Treasury was quoted at 4.99%, widening from 4.98%.

In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average slipping 0.6%, the S&P 500 fading 0.7% and the Nasdaq Composite losing 0.8%.

In Asia on Wednesday, the Nikkei 225 index in Tokyo lost 0.9%. In China, the Shanghai Composite shed 1.2%, while the Hang Seng index in Hong Kong was 0.7% lower. The S&P/ASX 200 in Sydney closed down 1.8%.

Swissquote's Ozkardeskaya continued: "The selloff in long-duration bonds is fueled by several factors: concerns over ballooning sovereign debt, political hurdles to fiscal tightening (France is a case in point), and structurally higher inflation pressures following the Covid disruptions and the ongoing trade war.

"Investors are demanding higher returns to hold bonds exposed to both inflation risk and elevated debt levels. Higher yields, in turn, push up borrowing costs for companies and weigh on valuations. As a result, equities and corporate bonds also kicked off the week on a weak note."

The pound was quoted down at USD1.3353 early on Wednesday in London, compared to USD1.3389 at the equities close on Tuesday. The euro stood lower at USD1.1624, against USD1.1659. Against the yen, the dollar was trading up at JPY148.81 compared to JPY148.20.

Hilton Food tumbled 15% at London's market open.

The Huntingdon, England-based food packaging company reported pretax profit of GBP24.3 million for the 26 weeks that ended June 29, falling 4.7% from GBP25.5 million in the 26 weeks to June 30, 2024.

Revenue grew 7.6% to GBP2.09 billion from GBP1.94 billion, while administrative expenses increased 5.0% to GBP157.8 million from GBP150.3 million. Hilton Foods declared an interim dividend of 10.1 pence, up 5.2% on-year from 9.6p.

Looking ahead, Hilton Foods expects full-year results in line with a company-compiled consensus for GBP76.8 million to GBP81 million in adjusted pretax profit. This would be up from GBP76.1 million in 2024 and GBP66.0 million in 2023.

At the other end, Watches of Switzerland gained 6.6%.

The Leicester, England-based watch and jewellery retailer said it was on track to deliver a "good" first half in line with its expectations, for the 18 weeks that ended August 31.

"We have seen consistently strong trading throughout the period, particularly in the US despite the announcement of increased tariffs on Swiss imports," the company said. "The stability we saw in the UK luxury watch and jewellery markets during [the first half of financial 2025] has continued, and we have delivered good year on year growth."

Watches of Switzerland in July said it expected constant currency revenue growth of 6% to 10% for financial 2026. The firm predicted It predicts an adjusted earnings before interest and tax margin percentage of flat to down 100 basis points versus 11.6% in the financial year to April 30, 2024.

Jangada Mines jumped 39%.

Brent oil was quoted down at USD68.74 a barrel early in London on Wednesday from USD68.81 late Tuesday.

Gold continued to climb, quoted up at USD3,535.41 an ounce against USD3,511.91. The yellow metal hit a new record of USD3,546.96 early on Wednesday morning.

Still to come on Wednesday's economic calendar, a slew of composite PMI readings, US factory goods orders data and the release of the Federal Reserve's Beige Book.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

M&G raises interim dividend as profit climbs and net flows increase

2025-09-03T07:48:51Z

M&G PLC on Wednesday said its profit increased in the first half of the year, amid "strong" net flows from open business and a larger investment return.

The London-based asset manager said pretax profit more than doubled to GBP559 million in the six months to the end of June from GBP209 million a year ago.

The investment return climbed 18% to GBP5.30 billion from GBP4.47 billion.

Overall, M&G's net insurance and investment result for the first half more than doubled to GBP1.60 billion from GBP766 million.

M&G declared an interim dividend of 6.7 pence per share, up 1.5% from 6.6p a year ago.

"I am pleased with our progress over the first six months of the year. A key highlight is the positive GBP2.1 billion net flows from open business, a GBP3.2 billion improvement from the same period last year. This is a strong result underpinned by GBP2.6 billion net inflows from external clients in Asset Management," said Chief Executive Officer Andrea Rossi.

The firm said it has continued to progress its transformation programme, as it has achieved GBP213 million of cost savings since launch of the total upgraded cost saving target of GBP230 million.

M&G noted that 58% of Asset Management third party assets under management and administration now come from international clients, up from 37% five years ago.

"This cements our position as a leading international active asset manager, with an established footprint in Europe and growing access to attractive Asian markets, CEO Rossi said.

Looking ahead, M&G said it is "well positioned to navigate the current uncertain economic and geopolitical environment due to its diversified business model, international footprint, compelling products and services, investment capabilities and expertise".

"The balanced and diversified nature of our business model, as well as the momentum across our Asset Management and Life businesses, gives me confidence for the future. We continue to build on our strong foundations to deliver long-term growth for our customers, clients and shareholders, which is high-quality and diversified across products, segments, and markets," said CEO Rossi.

Shares in M&G were down 1.7% at 252.52 pence in London on Wednesday morning.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Japan 30-year bond yields hit record high amid political uncertainty

2025-09-03T07:37:44Z

Japanese government bond yields hit a record high on Wednesday, following rises in the US and Europe on the back of concerns about political uncertainty and public finances.

The yield on 30-year bonds reached 3.290%, the highest on record. The yield also rose on Japanese debt of other maturities.

Japan has one of the highest ratios of debt to gross domestic product, GDP, of advanced economies.

Prime Minister Shigeru Ishiba's future has been shaky since elections in July robbed his government of a majority in the upper house.

Opponents of Ishiba within the ruling Liberal Democratic Party, LDP, are seeking to garner enough support for a leadership contest by a Monday deadline.

Japan's sale of 30-year debt on Thursday will be closely watched by investors around the world given the recent history of ructions in Tokyo spilling over into other markets, Bloomberg News reported.

source: AFP

Sony to spin off its financial arm and distribute shares to investors

2025-09-03T07:25:36Z

Sony Group Corp on Wednesday said it will proceed with the spin-off of its financial services unit, Sony Financial Group Inc, in a move that will see shareholders receive shares in the business as dividends in kind.

The Tokyo-based electronics and entertainment conglomerate said the separation will take effect on October 1, 2025, following approval from Japan's Ministry of Economy, Trade & Industry and subject to the listing of Sony Financial shares on the Tokyo Stock Exchange.

Under the plan, Sony shareholders on record as of September 30 will receive one Sony Financial share for every Sony share they hold.

Shares in Sony ended 0.6% lower at JPY3,990.00 in Tokyo on Wednesday, for a total market capitalisation of JPY24.92 trillion, around USD171.95 billion.

The spin-off will reduce Sony's retained earnings by around JPY465.2 billion though the company emphasised this is an accounting value and not a trading price.

After the transaction, Sony will retain slightly less than 20% of the financial services unit, which will cease to be a consolidated subsidiary and instead be accounted for as an equity affiliate.

Sony Financial, which operates life and non-life insurance, banking and related businesses, reported net profit of JPY78.79 billion in the year ended March 2025, up from JPY41.18 billion the year before.

Sony said the impact of the spin-off on consolidated results is still being evaluated, though the business has already been classified as a discontinued operation in its IFRS accounts.

The listing of Sony Financial on the TSE is expected to begin on September 29, ahead of the share distribution on October 1.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON BRIEFING: Ashtead profit declines; Vulcan Two begins trading

2025-09-03T06:55:21Z

London's FTSE 100 is set to open broadly flat on Wednesday, after gold prices hit a new record high in the early morning as investors flock to the safe haven metal amid economic uncertainty in the US.

In early corporate news, Ashtead Group reports a decline in first-quarter profit as it moves its primary listing to New York, and Vulcan Two begins trading on London's AIM.

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

----------

MARKETS

----------

FTSE 100: called marginally down at 9,112.99

GBP: up slightly at USD1.3390 (USD1.3389 at previous London equities close)

----------

BROKER RATINGS

----------

Morgan Stanley raises BP to 'equal-weight' - price target 400 pence

----------

Deutsche Bank Research raises Watches of Switzerland to 'buy' - price target 450 pence

----------

Morgan Stanley raises Kingspan to 'overweight' (underweight) - price target 83 (76) EUR

----------

COMPANIES - FTSE 100

----------

Ashtead Group reports pretax profit of USD511.6 million for the first quarter that ended July 31, falling 6.0% from USD544.4 million the year before. Revenue grows 1.8% to USD2.80 billion from USD2.75 billion, while operating costs increase 4.8% to USD1.54 billion from USD1.47 billion. This includes a one-off USD13 million cost associated with Ashtead's move of its primary listing to the US. Earnings before interest, tax, depreciation and amortisation sink 2.3% to USD1.26 billion from USD1.29 billion. "The group delivered solid first quarter results with revenues, profits and free cash flow in line with our expectations as we continue to take advantage of secular tailwinds and the structural progression of our industry. Rental revenue increased 2.4% as mega project activity gained momentum, and we are seeing positive leading indicators for local non-residential construction activity," says Chief Executive Officer Brendan Horgan, adding: "We are reaffirming our revenue and capex guidance for the year, while raising it for free cash flow. Lastly, we continue to progress our relisting on the NYSE that is currently scheduled for March 2026." Ashtead guides for up to 4% rental revenue growth for the year, and between USD1.8 billion and USD2.2 billion in capital expenditure. The firm now expects free cash flow between USD2.2 billion and USD2.5 billion, compared to its prior guidance for USD2.0 billion to USD2.3 billion. Its capital allocation framework remains committed to a progressive dividend.

----------

The UK government is in advanced discussions with Denmark and Sweden to build warships for the two Scandinavian countries, the Financial Times reported on Tuesday, citing "people familiar with the talks". An agreement would see defence contractor Babcock International build Type-31 frigates in Rosyth, Scotland. A deal for Denmark to buy three of the Type-31 'Arrowhead 140' frigates is expected to be announced this month, the newspaper said, while Sweden is looking to place orders for four of the ships, with a decision due by the end of the year. The talks with Denmark and Sweden follow the GBP10 billion agreement, announced at the weekend, for Norway to buy five Type-26 frigates to be built in Glasgow by BAE Systems, the FT notes.

----------

COMPANIES - FTSE 250

----------

Hilton Food posts pretax profit of GBP24.3 million for the 26 weeks that ended June 29, falling 4.7% from GBP25.5 million in the 26 weeks to June 30, 2024. Revenue grows 7.6% to GBP2.09 billion from GBP1.94 billion, while administrative expenses increase 5.0% to GBP157.8 million from GBP150.3 million. Hilton Foods declares an interim dividend of 10.1 pence, up 5.2% on-year from 9.6p. "The first half of 2025 has been shaped by a strong performance in our retail meat and convenience businesses. We remain committed on delivering our full-year results within the range of expectations," says Chief Executive Officer Steve Murrells. "Whilst we have faced market-driven pressures and some specific operational challenges in seafood, we have responded with agility and continue to have a strong platform in place for future growth." Looking ahead, Hilton Foods expects full-year results in line with a company-compiled consensus for GBP76.8 million to GBP81 million in adjusted pretax profit. This would be up from GBP76.1 million in 2024 and GBP66.0 million in 2023.

----------

The UK Competition & Markets Authority is considering an investigation into the completed acquisition of Assura by Primary Health Properties. It will investigate whether the deal "may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services". The CMA has until October 29 to make a phase 1 decision.

----------

OTHER COMPANIES

----------

Vulcan Two begins trading on London's AIM under the ticker VUL. Vulcan Two is an investment company that has been formed to acquire businesses in the e-pharmacy market, initially in the UK. The company wants to "lead the consolidation of the private prescription sector - one of the fastest growing and most profitable sectors of the UK pharmacy market". Vulcan Two raises GBP12.0 million via issuing shares at GBP2.00 each through a placing and subscription, giving it a market capitalisation of around GBP13.6 million. About 6.0 million shares have been admitted to trading. "With a clear strategy and a strong pipeline, we believe we are well positioned for the future, and we look forward with great excitement to the opportunities ahead," says Chief Executive Officer Michael Kraftman.

----------

Cairn Homes reports pretax profit of EUR37.0 million for the six months that ended June 30, slipping 32% from EUR54.4 million the year before. Revenue falls 22% to EUR284.5 million from EUR366.1 million, and administrative expenses are up 7.9% to EUR20.5 million from EUR19.0 million. The firm declares an interim dividend of 4.1 pence per share, up 7.9% on-year from 3.8p. "Our strategy is working, and we have doubled down on investment in our construction activities. As this unwinds, it will lead to a strong second half which is why we are raising our guidance today for 2025 and also introducing new guidance as a result of increased housing output for 2026," says Chief Executive Officer Michael Stanley. Cairn Homes sets its full-year revenue guidance at around EUR945 million, up 9.9% from EUR859.9 million in 2024, and compared to its prior forecast for growth in excess of 10%. Operating profit is estimated between around EUR160 million and EUR165 million, upgraded from its initial EUR160 million guidance. Return on equity for 2025 is expected around 15.5%. For 2026, revenue is estimated between around EUR1.02 billion and EUR1.05 billion, operating profit is put between roughly EUR175 million and EUR180 million, while return on equity is estimated at around 16.0%.

----------

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Trump says 11 dead in US strike on drug-carrying boat from Venezuela

2025-09-03T06:41:07Z

President Donald Trump said that US forces had attacked a boat carrying drugs to the US Tuesday, killing 11 "narcoterrorists" from a gang he alleged was controlled by leftist Venezuelan leader Nicolas Maduro.

Trump posted a video online of an open-topped speedboat carrying a number of people traveling on a body of water before it exploded in a ball of flames.

The move is a potentially significant escalation in the standoff between Caracas and Washington, after the US deployed eight warships to Latin America in what it bills as a war on drug trafficking.

Trump initially announced at the White House that US forces had "shot out a boat... a drug carrying boat, lots of drugs in that boat" without giving details.

The Republican later posted a statement about the strike on his Truth Social network, along with the black and white video of the exploding boat.

"Earlier this morning, on my Orders, US Military Forces conducted a kinetic strike against positively identified Tren de Aragua Narcoterrorists," Trump said, without specifying the weapon used.

"The strike occurred while the terrorists were at sea in International waters transporting illegal narcotics, heading to the US. The strike resulted in 11 terrorists killed in action."

No US forces were harmed, Trump added.

He went on to allege that Tren de Aragua – a Venezuelan group he has frequently referred to as part of his crackdown on undocumented migration – was "operating under the control of Nicolas Maduro."

The US designated the gang a terrorist organization earlier this year.

"Please let this serve as notice to anybody even thinking about bringing drugs into the US of America. BEWARE!" Trump added in his post.

US Secretary of State Marco Rubio, a vociferous critic of Maduro, vowed separately to keep using the "full might" of the US to "eradicate" drug cartels.

Trump has "been very clear that he's going to use the full power of America, the full might of the US, to take on and eradicate these drug cartels, no matter where they're operating from," Rubio told reporters as he left Miami for a visit to Mexico.

Rubio earlier said on X that the vessel had "departed from Venezuela."

Venezuela's Maduro has cast the recent US deployment as a threat to the country.

There are currently eight US Navy ships involved in counter-narcotics efforts in Latin America: three amphibious assault ships, two destroyers, a cruiser and a littoral combat ship in the Caribbean and a destroyer in the eastern Pacific, a US defense official said Tuesday on condition of anonymity.

The announcement of the strike followed days of mounting tension between Washington and Caracas, with Maduro declaring a state of "maximum readiness" to defend against what he says are US military threats.

Maduro has been in Trump's crosshairs since the Republican's first term from 2017 to 2021.

But the US president's policy of maximum pressure, including an oil embargo, has failed to dislodge the Venezuelan leader from power.

Washington has doubled to USD50 million a bounty for the capture of Maduro, whose re-election in 2024 and 2018 were not recognized by the US or much of the international community amid allegations of fraud and voter oppression.

Analysts have told AFP that the deployment of the US warships was likely aimed at ramping up pressure on Maduro, who has repeatedly accused Trump of attempting to bring about regime change.

Last week, Caracas petitioned the United Nations to intervene in the dispute by demanding "the immediate cessation of the US military deployment in the Caribbean."

And on Monday, Maduro said Venezuela was prepared for "a period of armed struggle in defense of the national territory" in case of an attack.

By Danny Kemp and W.G. Dunlop with Shaun Tandon in Miami

source: AFP

Swiss Life interim profit hurt by tax but premiums and assets grow

2025-09-03T06:21:50Z

Swiss Life Holding AG on Wednesday reported a decline in first-half net profit despite growth in premiums and fee income, as the insurer highlighted a "successful start" to its new strategic programme.

The Zurich-based life insurance, pensions and asset management provider said net profit for the six months to June 30 fell 4.7% to CHF602 million, around USD674.2 million, from CHF632 million a year earlier, mainly due to higher tax expenses.

Profit from operations, however, rose 2.3% to CHF903 million from CHF883 million.

Gross written premiums increased 3.8% year-on-year to CHF12.11 billion, with all insurance segments contributing. Fee income grew 0.8% in to CHF1.27 billion, supporting a stable fee result of CHF392 million.

Assets under management in third-party asset management surged to CHF138 billion from CHF125 billion at year-end 2024, with net new assets of CHF13.2 billion, compared with just CHF1.2 billion in the prior year period.

Swiss Life's return on equity was 18%, broadly unchanged from last year, while its Swiss solvency test ratio strengthened to around 205% from 201% at December 2024. Cash remittance to the holding company fell to CHF1.17 billion from CHF1.26 billion.

Chief Executive Officer Matthias Aellig said: "We continued to grow both our insurance and our fee business and achieved a higher profit from operations. Moreover, we significantly increased the net new assets in our third-party asset management business and our solvency remains strong."

By region, premiums rose 4% in Switzerland, 7% in France and 3% in Germany, while the international unit reported a 7% increase. Segment results improved across all markets, led by a 9% rise in France.

Swiss Life said the results marked a strong start to its 'Swiss Life 2027' strategy, which targets a fee result of more than CHF1 billion, a return on equity of 17% to 19% and cumulative cash remittance of CHF3.6 billion to CHF3.8 billion over the next three years.

The insurer confirmed its ongoing CHF750 million share buyback programme, set to run until May 2026.

Shares in Swiss Life closed 1.2% lower at CHF845.60 in Zurich on Tuesday. The stock is up 22% over the past 12 months and 19% so far in 2025.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

LONDON MARKET EARLY CALL: Stocks broadly flat ahead of composite PMI

2025-09-03T05:59:29Z

London blue chips are set to open slightly higher on Wednesday, as gold continues to climb and investors look to UK and eurozone composite PMI readings later in the day.

IG says futures indicate the FTSE 100 to open up 2.6 points at 9,119.29 on Wednesday. The index of London large-caps closed down 79.65 points, 0.9%, at 9,116.69 on Tuesday.

Sterling was quoted at USD1.3366 early Wednesday, lower than USD1.3389 at the London equities close on Tuesday.

The euro traded at USD1.1631 early Wednesday, down from USD1.1659 late Tuesday. Against the yen, the dollar was quoted up at JPY148.59 versus JPY148.20.

The UK could have to import 70% of its oil and gas demand by the end of this decade if there is not "sustained investment" in the sector, industry leaders have warned.

It comes after a report said production from the North Sea fell to a "historic low" in 2024, leaving the UK needing imports of oil and gas to meet more than 40% of its energy needs.

That is despite Offshore Energies UK insisting there are still "significant oil and gas reserves" in the North Sea, with the industry body saying these could be realised if there was "continued support for the sector".

Meanwhile, a group of Thames Water lenders have set out plans on how they would deliver GBP20.5 billion of investment to turn around the troubled supplier's performance as they look to secure a rescue of the firm.

The supplier's main creditors – led by a team of 15 investors called the London & Valley Water consortium – have pledged to "fix the foundations" of Thames Water with the mammoth spending proposal put forward to regulator Ofwat.

They are promising an increased focus on improving Thames Water's poor pollution performance and record on leaks, with targets to cut sewage spills by at least 135 a year.

Thames Water – the UK's biggest water supplier with around 16 million customers – is on the brink of nationalisation as it struggles under a mountain of debts.

Brent oil was trading at USD68.92 a barrel early Wednesday, up from USD68.81 late Tuesday.

Gold was quoted at USD3,533.45 an ounce early Wednesday, higher than USD3,511.91 on Tuesday. The yellow metal hit a fresh record as Asia markets opened, climbing to USD3,546.96 an ounce.

"Gold is undergoing an impressive rally, supported by a combination of macroeconomic factors and capital flows. After setting new record highs, the precious metal has continued to attract investors thanks to expectations that the US Federal Reserve will soon shift toward monetary easing, declining real yields, and rising demand for safe-haven assets amid global economic uncertainties," commented XS.com analyst Linh Tran.

"Within the policy landscape, real yields remain the key variable for gold. Each time US economic data signals a slowdown, expectations for imminent Fed rate cuts rise, pushing bond yields lower and providing direct support for gold. This is the clearest transmission channel explaining why gold reacts strongly to labor market data, inflation releases, and Fed communications."

In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average slipping 0.6%, the S&P 500 fading 0.7% and the Nasdaq Composite losing 0.8%.

In Asia on Wednesday, the Nikkei 225 index in Tokyo shed 1.0%. In China, the Shanghai Composite fell 1.3%, while the Hang Seng index in Hong Kong was 0.6% lower. The S&P/ASX 200 in Sydney was down 1.8%.

China and Russia have signed some 20 new deals as bilateral relations between the two countries strengthen, according to reporting by Chinese news agency Xinhua.

Among them was a legally binding memorandum for the construction of a new gas pipeline through Mongolia to China, announced by Gazprom chief Alexei Miller in Beijing and reported by Russian news agencies. Beijing and Moscow also agreed to a trial of visa-free travel for Russians with valid passports to China.

In Wednesday's corporate calendar, half year results from wealth management firm M&G, first quarter results from equipment hire company Ashtead and a trading update from luxury goods retailer Watches of Switzerland.

In the economic calendar on Wednesday, a slew of composite PMI readings, US factory goods orders data and the release of the Federal Reserve's Beige Book.

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Opponents of Japan PM Shigeru Ishiba seek leadership contest

2025-09-03T05:57:23Z

Opponents of Prime Minister Shigeru Ishiba in Japan's ruling party sought on Wednesday to rally support for a new leadership election, with several party heavyweights reportedly turning on the embattled premier.

Ishiba, 68, took the helm of the long-dominant Liberal Democratic Party, LDP, last year and has since lost his majority in both houses of parliament, most recently in upper chamber elections in July.

On Tuesday, four senior LDP figures including secretary general Hiroshi Moriyama offered to resign, but Ishiba said he still had work to do as leader.

"I will make appropriate decisions at an appropriate time. But first and foremost, I believe this means dedicating all my efforts to fulfilling what the people truly want me to accomplish," he said.

"I won't run away from taking responsibility," he said, adding he had "no intention at all to cling onto my position" if it became untenable.

The LDP is currently surveying its 295 lawmakers and 47 regional officials across Japan on whether to hold a new leadership contest, in a process due to conclude on September 8.

Those backing the idea include influential former prime minister Taro Aso, according to national broadcaster NHK and the top-selling Yomiuri Shimbun newspaper.

Ishiba's most prominent rival Sanae Takaichi, seen as a hardline nationalist, all but said on Tuesday that she would seek a contest.

"In any organisation, when things don't go well, I have my own thoughts about how leaders should take responsibility," she told reporters.

Recent opinion polls suggest rebounding support for Ishiba's cabinet, with voters less than keen on the hawkish Takaichi, runner-up in the last leadership election in 2024.

A Nikkei survey on Sunday put Takaichi as the most "fitting" successor to Ishiba but 52% of respondents said a leadership contest was unnecessary.

Many LDP lawmakers are still unsure and are asking themselves whether supporting Ishiba might translate into receiving senior government or party assignments, said Ken Takayasu, professor at Waseda University.

"LDP politicians might sound ideological and some are but they are more affected by the prospect of a ministerial position or a senior LDP position," he told AFP.

"Japanese politics often moves with mood, atmosphere, which is very much irrational," he said.

The focus for now is on whether Ishiba can persuade Moriyama, a powerful party veteran who has worked with opposition parties to push through legislation, to stay.

Moriyama's departure would be a serious blow to Ishiba, but in leaving the decision to the prime minister "he could stay if asked," said Koya Miyamae, senior economist at SMBC Nikko Securities.

"If Moriyama can stay in the leadership circle, that is a win for [Ishiba], but if Moriyama leaves totally, at this moment that sounds a real crisis," said Takayasu.

Miyamae added that a faction led by former prime minister Fumio Kishida seems to hold the "casting vote" on whether to hold the leadership election.

By Hiroshi Hiyama

source: AFP

China RatingDog composite PMI rises to 51.9 in August on services

2025-09-03T02:51:48Z

(Alliance News) – Chinese business activity expanded in August led by the services sector, S&P Global reported on Wednesday.

The RatingDog China composite purchasing managers’ index rose to 51.9 in August from 50.8 in July, the third straight month of increases and the quickest pace since November.

While growth was broad based it was led by the services sector.

Overall new business growth also accelerated, while total exports declined at the softest pace in five months.

Higher new orders contributed to a renewed rise in backlogs, while business confidence hit a five-month high.

Staffing levels fell slightly, however, following a fractional rise in July.

Meanwhile, the RatingDog China general services purchasing managers’ index rose to 53.0 in August from 52.6 in July, surpassing the FXStreet-cited consensus forecast of 52.5.

Central to the latest upturn in services activity was a stronger rise in new business.

The rate of new order growth accelerated for a second successive month and was likewise the steepest seen since May 2024.

This was partly supported by a stronger rise in new export business, which increased at the fastest rate since February.

Yao Yu, founder at RatingDog said: “Overall, the performance of the service sector in August was quite notable. However, the persistent pressure on output prices, and thereby profits, suggests that the service sector recovery may be imbalanced. While this short-term boost is positive for business activity, the ongoing pressure on corporate profits could create negative feedback in the long term.”

The RatingDog China general services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 650 service sector companies.

By Lachlan Colquhoun, Alliance News reporter

Comments and questions to newsroom@alliancenews.com