ADVFN UK Market News

Author: Fiona Craig

  • Renault Reports Strong First-Half Revenue Growth as Earnings Fall Short of Forecasts

    Renault Reports Strong First-Half Revenue Growth as Earnings Fall Short of Forecasts

    Renault (EU:RNO) shares traded little changed in European markets on Thursday after the French automaker reported robust first-half revenue growth, although net profit came in below analysts’ expectations.

    The company continued to benefit from strong demand for its electric vehicle lineup, with EV sales climbing 47.6% compared with the same period last year. Sales of the Renault 5 played a key role in offsetting growing competition from Chinese manufacturers, and electric vehicles accounted for one in every five Renault models sold during the period.

    Electric Vehicle Demand Drives Revenue Growth

    Higher pricing for the new Clio 6 also supported the group’s performance, helping first-half revenue increase 9.4% year over year to €30.25 billion.

    Renault generated net income of €700 million during the first six months of the year, a sharp improvement from the €11.18 billion net loss reported in the first half of 2025, when results were heavily affected by a one-off charge linked to the company’s investment in Nissan.

    According to a Reuters consensus based on estimates from 21 analysts, the market had expected first-half revenue of €29.4 billion and group share net profit of €770 million.

    Margin Target Maintained Despite Industry Challenges

    Competitive pricing pressure across the European automotive market continued, particularly as low-cost Chinese manufacturers such as BYD and Chery expanded their presence.

    Despite those headwinds, Renault reaffirmed its 2026 operating margin target of 5.5%. The company reported an operating margin of 6.3% in 2025.

    Chief Executive François Provost nevertheless warned that rising raw material costs are likely to weigh on profitability across the automotive sector next year.

  • Gold Retreats as Stronger Dollar and Fed Commentary Weigh on Prices

    Gold Retreats as Stronger Dollar and Fed Commentary Weigh on Prices

    Gold prices slipped on Thursday after an initial rally faded, as investors reconsidered the Federal Reserve’s inflation outlook following the latest policy meeting. A firmer U.S. dollar and a rebound in Treasury yields also reduced demand for the safe-haven metal.

    At 00:44 ET (04:44 GMT), spot gold (XAU/USD) was down 0.4% at $4,049.99 an ounce after earlier touching a one-week high of $4,100.42. Gold Futures gained 0.3% to $4,047.20, while silver (XAG/USD) declined 0.6% to $57.32. Platinum (XPT/USD) fell 1.3% to $1,597.87.

    Fed Decision Sparks Brief Gold Rally

    Bullion initially strengthened after the Federal Reserve kept interest rates unchanged, as lower Treasury yields and a weaker U.S. dollar immediately following the announcement boosted demand for assets that do not generate interest income.

    The rally proved short-lived, however, as investors focused on comments from Federal Reserve Chair Kevin Warsh, who reaffirmed the central bank’s determination to return inflation to its long-term 2% target despite leaving monetary policy unchanged.

    The U.S. Dollar Index remained broadly steady near 100.9, while benchmark Treasury yields recovered from their post-meeting declines, limiting further upside for gold.

    According to CME FedWatch data, markets now assign roughly a 64% probability to a September interest rate increase, compared with around 81% before the Fed’s latest policy announcement.

    Geopolitical Risks Continue to Support Inflation Concerns

    Traders also monitored renewed tensions in the Middle East after the United States carried out additional strikes against Iran overnight. U.S. Central Command described the operation as “a powerful response” to what it said were attempted Iranian attacks on American forces a day earlier.

    President Donald Trump had previously pledged a strong response against Tehran, saying the United States would retaliate after the military intercepted what it described as a surprise Iranian attack targeting U.S. personnel.

    The renewed conflict helped keep oil prices elevated as markets assessed the potential for further disruption to global energy supplies.

    Shipping risks also increased after the Iran-backed Houthi movement warned it would target Saudi vessels travelling toward the Indian Ocean, prompting some tanker operators to consider alternative routes.

    Persistently high energy prices have reinforced expectations that inflation could remain elevated for longer, potentially delaying any move by the Federal Reserve to ease monetary policy.

    Focus Turns to Inflation Data

    Investors are now awaiting Thursday’s release of the U.S. Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation measure, for fresh signals about inflation and the future direction of interest rates.

    Attention will also shift to upcoming monetary policy announcements from the Bank of England and the Bank of Japan, both of which are widely expected to leave borrowing costs unchanged.

  • Oil Advances Again as Middle East Tensions Raise Supply Risks

    Oil Advances Again as Middle East Tensions Raise Supply Risks

    Oil prices moved higher for a second consecutive day on Thursday as renewed military action between the United States and Iran heightened concerns over crude exports moving through critical global shipping routes.

    Brent crude futures rose $1.06, or 1.17%, to $91.80 a barrel by 0812 GMT after earlier falling to an intraday low of $89.02.

    U.S. West Texas Intermediate (WTI) crude climbed 39 cents, or 0.46%, to $84.85 a barrel after touching a session low of $83.21.

    Renewed Military Action Supports Oil Prices

    Energy markets remained focused on developments in the Middle East after the U.S. military confirmed strikes on dozens of Islamic Revolutionary Guard Corps facilities across Iran, including command centres and drone sites. The operation followed ballistic missile attacks launched by Tehran against U.S. forces stationed in the region.

    U.S. Central Command (CENTCOM) said the operation began at 0000 GMT and concluded at 0200 GMT on Thursday.

    “Until safe passage through the Strait of Hormuz is no longer a gamble, the risk premium in oil is not going anywhere — hope for diplomacy is welcome, but the market is pricing the reality of ongoing strikes,” said Tim Waterer, chief market analyst at KCM Trade.

    Markets Monitor Key Shipping Routes

    The Strait of Hormuz, through which around 20% of the world’s oil and natural gas supplies typically pass, has remained a major focus for traders since fighting erupted on February 28.

    On Wednesday, the United States and Saudi Arabia carried out strikes against Iran-backed paramilitary groups in Iraq. The action marked the first publicly acknowledged Saudi participation in U.S. air operations and followed drone attacks on Saudi energy facilities launched from Iraq.

    Despite the military escalation, analysts said investors remain focused on whether oil shipments continue to move through the region and whether diplomatic efforts could reduce tensions.

    Iran’s Fars news agency reported that a Qatari LNG tanker successfully sailed through the Iranian-designated route in the Strait of Hormuz after receiving approval from Iranian authorities.

    According to shipping data from Kpler and LSEG, the Al Areesh tanker, which loaded cargo at Qatar’s Ras Laffan terminal between July 4 and July 6, exited the strait overnight on July 29.

    Supply Concerns Extend Beyond Hormuz

    The conflict has also disrupted shipping through the Bab el-Mandeb Strait, adding another area of concern for global energy markets.

    Regional sources told Reuters that Yemen’s Houthi movement is considering charging commercial vessels using the southern Red Sea, one week after announcing a naval blockade targeting Saudi Arabia.

    “For Brent to break convincingly above recent highs and sustain a move higher, we would need clearer evidence of prolonged physical disruption — either a sustained reduction in flows through Hormuz or confirmed damage to key energy infrastructure,” Waterer added.

    Adding to supply concerns, the Caspian Pipeline Consortium said, according to Russia’s Interfax news agency, that it had suspended oil loading operations after a drone attack involving a tanker.

  • Markets Watch Fed Outlook as Tech Giants Kick Off Key Earnings Wave: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Markets Watch Fed Outlook as Tech Giants Kick Off Key Earnings Wave: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures traded modestly higher on Thursday as investors digested the Federal Reserve’s latest policy announcement and a fresh round of earnings from some of the world’s largest technology companies. Although the central bank left interest rates unchanged, a split vote among policymakers and ongoing inflation concerns kept markets on edge. Meanwhile, Microsoft (NASDAQ:MSFT) rallied after its results, while Meta Platforms (NASDAQ:META) moved sharply lower as investors scrutinised each company’s artificial intelligence spending strategy.

    Futures Recover Following Wall Street Decline

    By 01:55 ET (05:55 GMT), futures linked to the Dow Jones Industrial Average were up 27 points, or 0.1%. S&P 500 futures gained 15 points, or 0.2%, while Nasdaq 100 futures rose 133 points, or 0.5%.

    The modest gains followed a weaker session on Wall Street, where investors focused on comments from Federal Reserve Chair Kevin Warsh after the conclusion of the central bank’s latest policy meeting.

    Semiconductor stocks remained under heavy selling pressure. The Philadelphia Semiconductor Index dropped 5.33%, extending its losses over the past five trading sessions to more than 14%. The Nasdaq 100 also slipped into correction territory after falling over 10% from its recent high.

    Market sentiment has been weighed down by concerns that the enormous investment flowing into AI infrastructure—including advanced chips and data centres—may take longer than expected to generate meaningful returns. Increased competition from Chinese technology companies has added to investor caution.

    Those concerns came into sharper focus after Microsoft and Meta became the first major AI-focused technology companies to publish quarterly earnings.

    Geopolitical developments also remained in focus after renewed U.S. military action involving Iran. Brent crude futures rose 1.4% to $92.01 per barrel after surging roughly 7% during Wednesday’s session.

    Fed Signals Readiness Despite Holding Rates

    The Federal Reserve kept its benchmark interest rate unchanged within a target range of 3.5% to 3.75%, although three members of the policy committee voted in favour of a rate increase.

    Officials continue to face elevated inflation, which remains well above the central bank’s 2% objective, largely due to higher energy prices linked to the conflict involving Iran.

    While June inflation figures were softer than expected, persistent volatility in oil markets has complicated the inflation outlook.

    Although raising interest rates could help contain price pressures, policymakers must also consider the potential impact on a labour market that has shown limited hiring and subdued layoffs.

    Kevin Warsh, who was overseeing only his second policy decision as Federal Reserve Chair, stressed that leaving rates unchanged should not be interpreted as a lack of willingness to act.

    “There was nothing inertial about our discussions,” Warsh said.

    Asked whether additional rate increases could help reduce inflation, Warsh responded that they remained an available policy tool but added, “I wouldn’t say it’s in isolation.” He also suggested that higher long-term Treasury yields since the June meeting were already helping tighten financial conditions.

    U.S. Treasury yields rose following his remarks as investors searched for signals about the Fed’s next policy move.

    “[T]he vague and arguably counterproductive communications from […] Warsh during the press conference make forecasting the Fed’s next move even trickier than it already was,” said Thomas Ryan, Senior North America Economist at Capital Economics.

    Microsoft Delivers Another Strong Quarter

    Microsoft exceeded market expectations after reporting continued strength across its cloud computing operations and growing adoption of its AI services.

    Revenue for the quarter ended in June climbed 18% to $90 billion, while net income surged 31% to $35.8 billion.

    Chief Executive Satya Nadella also disclosed that annual revenue generated by Microsoft’s AI-powered Azure cloud platform exceeded $100 billion for the first time.

    Because Microsoft rarely reports Azure’s revenue separately, the announcement attracted considerable attention from investors comparing its performance with Google’s cloud business.

    The software company also reaffirmed its commitment to AI investment. Capital expenditure reached $41 billion during the quarter, up nearly 70% year over year, lifting annual capital spending to $145.3 billion.

    The strong Azure performance reassured investors that the company’s aggressive AI investment strategy continues to deliver results, sending Microsoft’s shares more than 7% higher in after-hours trading.

    Meta Falls as Spending Plans Concern Investors

    Meta Platforms posted record second-quarter revenue of $60.8 billion, but its shares fell more than 7% after the results were released.

    The decline reflected investor concern over higher spending expectations. Meta increased its minimum capital expenditure forecast for the year to $130 billion from $125 billion previously, while maintaining the upper end of its guidance at $145 billion.

    Although executives were expected to provide greater clarity around AI monetisation during the earnings call, investors remained cautious.

    Meta also reported free cash flow of less than $1 billion, while quarterly net income declined 14% to $18.3 billion.

    Its revenue outlook for the current quarter also disappointed expectations, and the company warned that ongoing legal proceedings related to the impact of social media on younger users could result in material financial losses.

    Attention now shifts to Apple and Amazon, which are both scheduled to report quarterly earnings later on Thursday.

    Qualcomm, Starbucks and Chipotle Also Update Investors

    Elsewhere, Qualcomm (NASDAQ:QCOM) shares moved lower in extended trading after the semiconductor company issued weaker-than-expected guidance.

    Chief Executive Cristiano Amon said the business intends to raise product prices to offset rising manufacturing and memory costs, adding that the wider semiconductor industry continues to experience supply chain challenges driven by strong demand for AI-related data centres.

    Qualcomm posted adjusted third-quarter earnings per share of $2.21, narrowly missing FactSet estimates. Revenue declined 4% to $9.95 billion but still came in ahead of analyst forecasts.

    Starbucks (NASDAQ:SBUX) delivered quarterly earnings above expectations, supported by improving customer traffic across North America and continued progress in its turnaround strategy. Its shares rose approximately 4% in after-hours trading.

    Chipotle Mexican Grill (NYSE:CMG) also reported stronger-than-expected revenue and earnings, helped by continued restaurant expansion and branding initiatives. The company raised its full-year comparable sales outlook, sending its shares higher after the market closed.

  • L’Oréal Shares Rise After Strong Second-Quarter Results and Record Operating Margin

    L’Oréal Shares Rise After Strong Second-Quarter Results and Record Operating Margin

    L’Oréal SA (EU:OR) shares climbed more than 4% on Thursday after the world’s largest beauty company reported second-quarter results that exceeded market expectations, supported by broad-based organic sales growth and a record operating margin for the first half of the year.

    The group generated second-quarter revenue of €11.6 billion, an increase of 8.2% on a reported basis. Like-for-like sales growth, excluding IT phasing effects, reached 6.3%, outperforming the consensus estimate of 5.7% by 60 basis points and exceeding BofA Securities’ forecast by 30 basis points.

    Broad-Based Growth Supports Performance

    L’Oréal delivered growth across nearly all of its businesses, outperforming listed beauty sector peers by roughly three times during the quarter.

    First-half EBIT increased 6.8% year over year to €5.063 billion, resulting in a record operating margin of 21.3%. The margin improved by 20 basis points from the same period last year and exceeded market expectations by 0.9%.

    The expansion came despite a 70-basis-point increase in advertising and promotional spending, which reached 32.6% of sales. The higher investment was offset by improved leverage in selling, general and administrative expenses, together with a 10-basis-point improvement in gross margin to 74.8%.

    Earnings Per Share Misses Estimates

    Adjusted first-half earnings per share came in at €7.40, slightly below the consensus estimate of €7.52 and BofA Securities’ forecast of €7.48.

    The shortfall was primarily attributed to a weaker-than-expected contribution from Galderma, in which L’Oréal owns a 20% stake that is now accounted for using the equity method.

    Dermatological Beauty Delivers Standout Growth

    Among the group’s business segments, Dermatological Beauty recorded the strongest organic growth at 11.1%, followed by Professional Products with growth of 10.1%.

    Consumer Products posted organic growth of 4.6%, while L’Oréal Luxe, the only division to fall short of consensus expectations, grew 4.7%.

    By region, SAPMENA led with organic growth of 12.2%, ahead of Europe at 6.7%, North America at 5.9%, Latin America at 5.3% and North Asia at 4.5%.

    “L’Oréal delivered a strong first half,” said Chief Executive Nicolas Hieronimus. “At +6.5% adjusted like-for-like growth, L’Oréal maintained its strong momentum and expanded its outperformance of the global beauty market.”

    Analysts See Further Upside

    BofA Securities, which maintains a “buy” rating and a €440 price target on the shares, described the quarter as “a good hair day,” adding that the earnings beat could support a re-rating of the stock, which currently trades at around 26 times forward 12-month earnings compared with a mid-cycle valuation closer to 30 times.

    The brokerage raised its 2026-2028 EBIT forecasts by between 0.7% and 1.5%, while lowering its earnings per share estimates by 0.6% to 1.9% to reflect purchase price amortisation associated with the Galderma investment.

    BofA also identified the third quarter as an important catalyst, as L’Oréal will be compared against a stronger performance from the same period last year.

    The company also confirmed a 50-year licensing agreement with Kering for Gucci fragrances and beauty products, effective from July 2027, one year earlier than previously planned. BofA expects the agreement to become modestly accretive to earnings once it makes a full contribution from 2028.

  • Airbus Posts Strong Second-Quarter Profit Growth as Aircraft Deliveries Accelerate

    Airbus Posts Strong Second-Quarter Profit Growth as Aircraft Deliveries Accelerate

    Airbus (EU:AIR) delivered significantly stronger second-quarter results, with earnings rising sharply on the back of higher commercial aircraft deliveries and improved performances across its major business units. The aerospace group also reaffirmed its financial and operational targets for 2026.

    Despite the strong earnings report, Airbus shares were down 2.5% in early trading in Paris.

    Revenue and Profit Surge

    Second-quarter revenue increased 28% year over year to €20.5 billion as aircraft deliveries gathered pace during the period.

    Adjusted EBIT rose 54% to €2.43 billion, while reported EBIT climbed to €2.52 billion, more than double the level recorded a year earlier. Net income reached €1.66 billion, representing a 126% increase, with earnings per share of €2.10.

    “The results further support Airbus’ €12-13bn 2029 EBIT ambition,” Barclays analysts said in a note.

    Commercial Aircraft Business Leads Performance

    The Commercial Aircraft division remained the group’s primary growth engine, generating revenue of €15.4 billion, up 37% compared with the second quarter of 2025.

    Reported EBIT for the division jumped 150% to €1.95 billion.

    Airbus Defence and Space also delivered a solid performance, with revenue rising 10% to €3.48 billion and reported EBIT more than doubling to €408 million.

    The Helicopters business recorded revenue of €2.08 billion, broadly unchanged from the previous year, while reported EBIT edged 2% higher to €175 million.

    Guidance Reaffirmed Despite Earlier Production Challenges

    Chief Executive Guillaume Faury said the company’s strong second-quarter deliveries reflected steady execution as Airbus ramps up production to meet growing demand for civil and military aircraft. He added that the performance supports confidence in the group’s medium-term outlook.

    Airbus left its full-year guidance unchanged, continuing to target approximately 870 commercial aircraft deliveries during 2026 while maintaining its existing earnings outlook.

    Earlier this year, the manufacturer lowered its monthly A320 production plan and adopted more cautious delivery assumptions because of ongoing engine supply constraints.

    Second-Quarter Recovery Offsets Weak Start to the Year

    Airbus delivered 351 commercial aircraft during the first half of 2026, with the majority handed over during the second quarter.

    The company’s commercial aircraft business had been affected earlier in the year by delays in deliveries to China, which weighed on first-quarter earnings.

    Airbus also continued to navigate supply chain challenges, including engine availability issues and component shortages, particularly involving RTX’s Pratt & Whitney business.

  • European Stocks Hold Steady as Strong Earnings Counter Middle East Tensions: DAX, CAC, FTSE100

    European Stocks Hold Steady as Strong Earnings Counter Middle East Tensions: DAX, CAC, FTSE100

    European equity markets traded with little overall direction on Thursday as another wave of stronger-than-expected corporate earnings, led by a standout performance from Shell (LSE:SHEL), helped offset uncertainty surrounding U.S. monetary policy and renewed military tensions between the United States and Iran.

    The pan-European STOXX 600 index was broadly unchanged in early trading. Germany’s DAX eased 0.2%, while France’s CAC 40 advanced 0.6%, with robust earnings from several major European companies helping to cushion the impact of geopolitical risks and macroeconomic uncertainty.

    Shell Leads Earnings Momentum

    Shell provided one of the strongest boosts to regional markets after more than doubling adjusted second-quarter profit to $9.8 billion, comfortably surpassing analyst expectations thanks to solid operational performance and stronger trading results.

    Despite the positive earnings season, investor sentiment remained cautious after the U.S. Federal Reserve kept interest rates unchanged on Wednesday while offering little clarity over the future path of monetary policy.

    Although Federal Reserve Chair Kevin Warsh reiterated the central bank’s commitment to tackling persistent inflation, his comments following the policy decision left investors uncertain about whether additional rate increases remain possible or whether interest rates will stay elevated for an extended period.

    Geopolitical Risks Remain in Focus

    Market sentiment was also affected by renewed U.S. military strikes inside Iran, marking another escalation in the conflict that has continued for five months and maintaining pressure on global energy markets.

    Attention in Europe was also turning toward the Bank of England’s upcoming interest rate decision, alongside several key economic releases including second-quarter Eurozone GDP, July economic sentiment indicators and preliminary German inflation figures.

    Technology Sector Mixed After Global Earnings

    Technology shares continued to trade cautiously following a mixed batch of earnings from major technology companies in the United States and Asia.

    Results from Samsung (USOTC:SSNHZ) and Microsoft (NASDAQ:MSFT) helped ease some investor concerns over artificial intelligence spending and elevated market valuations. However, Meta Platforms (NASDAQ:META) unsettled markets after reporting a 91% decline in quarterly free cash flow, highlighting the significant investment required to expand AI infrastructure.

    Financials and Industrials Support European Markets

    Outside the energy sector, a busy earnings calendar continued to support European indices.

    Societe Generale (EU:GLE) gained 2% after reporting record quarterly profit, while Spain’s BBVA (TG:BBVA) rose 2.6% following higher second-quarter earnings. French asset manager Amundi (EU:AMUN) also exceeded expectations for core earnings.

    Among industrial and technology companies, Airbus (EU:AIR) traded broadly unchanged after reaffirming its full-year aircraft delivery targets following a solid second quarter. Schneider Electric (EU:SU) surged 7.3% after raising its annual guidance on strong demand for energy infrastructure, while ArcelorMittal (EU:MT) reported earnings ahead of expectations as European trade protection measures continued to support the business.

    Capgemini (EU:CAP) slipped 0.6% despite increasing its revenue growth outlook, while Sanofi (EU:SAN) raised its full-year sales guidance.

    Automakers Deliver Mixed Performance

    The automotive sector produced mixed results.

    Renault (EU:RNO) fell 2.9% despite returning to profitability on the back of strong electric vehicle sales, while Germany’s BMW (TG:BMW) traded little changed after reporting a decline in second-quarter profit.

  • FTSE 100 Opens Higher Ahead of Bank of England Interest Rate Decision

    FTSE 100 Opens Higher Ahead of Bank of England Interest Rate Decision

    UK equities traded modestly higher on Thursday as investors looked ahead to the Bank of England’s latest monetary policy announcement, while digesting a hawkish pause from the U.S. Federal Reserve and weaker overnight performance on Wall Street.

    As of 07:31 GMT, the FTSE 100 was up 0.17%. Germany’s DAX declined 0.42%, while France’s CAC 40 rose 0.62%. Sterling slipped 0.05% against the U.S. dollar to 1.3340.

    Middle East Tensions Escalate

    Geopolitical concerns returned to the forefront after reports that the United States resumed air strikes against Iran, ending a brief pause in military operations. According to Axios, a senior U.S. official confirmed the renewed strikes.

    CENTCOM said it had carried out a “heavy wave of strikes” targeting Iranian Revolutionary Guard Corps (IRGC) facilities, including command centres, missile and drone installations, and coastal defence positions. The military said the operation followed an Iranian ballistic missile attack targeting a U.S. base in Jordan, adding that all incoming missiles were intercepted.

    Separately, Iran’s IRGC navy claimed it had “targeted and stopped” three oil tankers in the Strait of Hormuz, according to Tasnim. Meanwhile, a drone strike hit the U.S.-owned LNG storage vessel Energos Winter at Egypt’s Damietta port. Egypt’s petroleum ministry confirmed a fire but reported no casualties.

    U.S. President Donald Trump warned that Washington would strike Tehran “very hard,” telling reporters “they know it’s coming.” Trump also said he would be “quite disappointed” if China supplied weapons to Iran, adding that President Xi Jinping had assured him this would not happen.

    Markets Assess Fed Decision, Await BoE

    The Federal Reserve left interest rates unchanged at 3.50% to 3.75% on Wednesday, although three regional Fed presidents voted in favour of an immediate 25-basis-point increase, making it one of the closest policy decisions in recent years.

    ING analysts James Knightley and Chris Turner described it as “the closest Fed decision for a number of years,” while noting Chair Kevin Warsh’s comments that policymakers had the “good family fight” he wanted before deciding by a “large majority” to leave rates unchanged. Warsh also said the central bank “will not hesitate to act” if inflation remains elevated.

    ING continues to expect the Fed to leave rates unchanged through 2027 rather than deliver the September rate increase currently priced into markets, citing softer labour market conditions, easing housing inflation and tariff refunds supporting corporate profitability.

    Attention now turns to the Bank of England, where policymakers are widely expected to leave UK interest rates unchanged later today.

    Oil Prices Advance

    Oil prices moved higher amid renewed geopolitical uncertainty. Brent crude gained 0.86% to $88.85 per barrel, while West Texas Intermediate rose 1.02% to $85.31.

    Gold futures edged up 0.14% to $4,041.80 per ounce, although spot gold eased 0.54% to $4,044.41.

    UK Corporate Highlights

    Lloyds Banking Group (LSE:LLOY) reported first-half profit ahead of expectations and introduced its new Accelerate 2030 strategy, targeting a return on tangible equity of around 20% by the end of the decade through growth in retail banking and greater use of artificial intelligence.

    Shell (LSE:SHEL) posted second-quarter adjusted earnings that more than doubled compared with a year earlier, beating market forecasts as stronger oil and gas prices, robust LNG trading and improved chemicals margins offset lower sales volumes from Qatar.

    Rolls-Royce (LSE:RR.) increased its full-year profit guidance after first-half operating profit jumped 46%, supported by continued strength in civil aerospace aftermarket services, defence contracts and demand from data centre customers.

    BAE Systems (LSE:BA.) also upgraded its 2026 outlook after reporting stronger-than-expected first-half earnings, citing sustained global defence spending and healthy demand across its portfolio.

    Anglo American (LSE:AAL) more than halved its first-half loss, increased its dividend and said its proposed $53 billion merger with Teck Resources remains subject to regulatory approval in China.

    London Stock Exchange Group (LSE:LSEG) raised its margin outlook for 2026 and increased the lower end of its revenue guidance after first-half results exceeded expectations, helped by elevated market volatility and stronger trading activity.

  • BAE Systems Raises 2026 Guidance Following Strong First-Half Performance

    BAE Systems Raises 2026 Guidance Following Strong First-Half Performance

    BAE Systems Plc (LSE:BA.) upgraded its full-year guidance for sales, underlying EBIT and underlying earnings per share after reporting first-half 2026 results that exceeded analyst expectations. The defence group also increased its free cash flow outlook following strong operational performance across its business.

    The company delivered first-half sales of £15.77 billion on a constant-currency basis, up 9% from a year earlier and ahead of the analyst consensus estimate of £15.61 billion. The result was close to the upper end of the forecast range of £15.41 billion to £15.79 billion.

    Earnings and Cash Flow Beat Market Expectations

    Underlying EBIT increased 11% to £1.70 billion, exceeding the analyst average forecast of £1.66 billion and nearing the top end of the expected range. The improvement lifted the group’s return on sales to 10.8%, compared with 10.6% in the first half of 2025.

    Underlying earnings per share rose 13% to 38.9 pence, outperforming the analyst consensus estimate of 37.3 pence and finishing just below the highest forecast within the expected range.

    One of the strongest highlights of the period was free cash flow. BAE Systems generated a free cash inflow of £1.79 billion during the first half, significantly outperforming analyst expectations for a £38 million outflow. The result was driven by strong customer advance payments and marked a sharp improvement from the £368 million outflow recorded in the same period last year.

    Higher Guidance Reflects Strong Momentum

    Following the stronger-than-expected first-half performance, BAE Systems raised its guidance for full-year sales, underlying EBIT and underlying earnings per share.

    The company also increased its forecast for full-year free cash flow to more than £2 billion and lifted its cumulative free cash flow target for the 2024–2026 period to more than £6.7 billion.

    Management said the upgraded outlook reflects continued operational strength across the business and confidence in the group’s execution.

    Order Book Reaches Record Level

    Order intake totalled £16.4 billion during the first half, leaving BAE Systems with a record order backlog. The increase was supported by a £2.5 billion contract covering training, support equipment and services for Türkiye’s recently ordered Eurofighter Typhoon aircraft.

    “Across the business, our outstanding teams have delivered another strong period of operational and financial performance, which gives us the confidence to upgrade our full year guidance,” chief executive Charles Woodburn said in a stateent.

    The company ended June with cash of £4.20 billion and net debt, excluding lease liabilities, of £3.17 billion. During the first half, BAE Systems returned £933 million to shareholders through dividends, compared with £849 million in the corresponding period of 2025.

    The board declared an interim dividend of 15.0 pence per share, payable on December 2 to shareholders on the register as of October 23.

    Under IFRS reporting standards, revenue increased 8% to £14.62 billion, operating profit rose 13% to £1.50 billion and basic earnings per share climbed 6% to 34.1 pence.

  • Rolls-Royce Beats First-Half Forecasts and Upgrades Full-Year Profit Outlook

    Rolls-Royce Beats First-Half Forecasts and Upgrades Full-Year Profit Outlook

    Rolls-Royce (LSE:RR.) reported first-half 2026 results ahead of market expectations on Thursday and increased its full-year profit guidance after strong performances across its Civil Aerospace, Defence and Power Systems businesses.

    The engineering group generated underlying operating profit of £2.53 billion for the six months ended June 30, exceeding the S&P Global Visible Alpha consensus forecast of £2.37 billion. Underlying revenue also surpassed expectations, rising to £11.28 billion compared with analyst estimates of £11 billion.

    Broad-Based Growth Drives Higher Profitability

    The stronger performance was supported by continued demand for aftermarket services in the Civil Aerospace division, improved profitability in Defence and ongoing expansion within the Power Systems business, particularly in the fast-growing data centre market.

    As a result, Rolls-Royce increased its underlying operating margin to 22.5%, up from 19.1% in the same period last year, with all three operating divisions contributing to the improvement.

    Company Raises 2026 Guidance

    Following the better-than-expected first-half performance, Rolls-Royce lifted its full-year outlook. The company now expects underlying operating profit to be between £4.7 billion and £4.9 billion, compared with its previous guidance of £4.0 billion to £4.2 billion.

    Management said the improved outlook reflects stronger long-term service agreement margins in Civil Aerospace, continued earnings growth in the Power Systems division and better aftermarket performance within its Defence business.

    Transformation Strategy Continues to Deliver

    Chief Executive Tufan Erginbilgic said the company’s transformation programme continues to create “a very different company,” highlighting stronger operational execution across the group and new growth opportunities in defence, data centres and small modular reactors.

    Rolls-Royce also announced an interim dividend of 6 pence per share, an increase from the 4.5 pence per share paid during the same period last year.