Author: Fiona Craig

European natural gas prices climbed to their highest levels since 2022 on Wednesday as renewed attacks on Saudi Arabian energy infrastructure increased concerns about global fuel supplies. The latest developments in the Middle East added pressure to European energy markets ahead of the winter heating season, while disruptions to liquefied natural gas shipments continued to affect supply availability.

The benchmark Dutch TTF front-month natural gas contract rose 1.2% to €97.35 per megawatt-hour (MWh), its highest level in approximately four years.

In the United Kingdom, NBP natural gas futures advanced 1.5% to 241.00 pence per therm, extending their gains for a sixth consecutive trading session.

The price increases followed reports of further missile and drone attacks by Yemen’s Iran-aligned Houthi movement against Saudi Arabian energy facilities and transport infrastructure.

Dutch TTF and UK Natural Gas Prices Continue Rising

European wholesale gas markets recorded further gains as traders assessed the potential consequences of escalating tensions in the Middle East.

The Dutch TTF contract, widely used as the reference price for continental European natural gas, increased 1.2% to €97.35/MWh.

The British NBP benchmark rose 1.5% to 241.00 pence per therm, marking its sixth successive session of gains.

Both benchmarks reached levels last recorded in 2022, when European energy markets experienced substantial price volatility.

The latest increases reflect concerns about the availability of imported fuel, particularly liquefied natural gas, as Europe approaches a period of higher seasonal demand.

Houthi Attacks Target Saudi Energy Infrastructure

The latest rise in natural gas prices followed renewed attacks on Saudi Arabian energy facilities attributed to Yemen’s Houthi movement.

On Tuesday, the group announced that it had targeted the Ras Tanura oil refinery with a ballistic missile.

Ras Tanura is one of Saudi Arabia’s principal refining and crude oil export facilities, making it an important component of the country’s energy infrastructure.

The reported attack followed earlier strikes during the week against pumping stations along Saudi Arabia’s East-West Crude Oil Pipeline.

Riyadh’s King Khalid International Airport was also identified among the targets.

The developments increased concerns about the security of energy infrastructure and transport networks across the region.

The reported attacks came amid continuing military tensions involving Iran and other countries in the Middle East.

Diplomatic Talks Face Renewed Challenges

The escalation followed diplomatic discussions in Tehran earlier in the week.

On Monday, delegations from Saudi Arabia, Turkey and Pakistan met senior Iranian officials to discuss efforts aimed at reducing regional tensions.

Joint statements following the discussions confirmed an agreement to continue dialogue focused on restoring peace and security.

The meetings had raised expectations that diplomatic engagement could help reduce the risks affecting regional energy production and transportation.

However, the subsequent announcement of attacks on Saudi infrastructure renewed concerns about the prospects for a sustained reduction in hostilities.

Energy markets responded by reassessing the risks associated with continued disruptions to production facilities, pipelines and shipping routes.

Saudi East-West Pipeline Remains Important Alternative Route

Saudi Arabia’s East-West Crude Oil Pipeline has become particularly important amid disruption to commercial shipping through the Strait of Hormuz.

The pipeline extends approximately 1,200 kilometres across Saudi Arabia, transporting crude oil from eastern production areas towards export facilities on the Red Sea.

This infrastructure allows some Saudi oil exports to avoid the Strait of Hormuz, a major shipping route connecting the Persian Gulf with international markets.

Disruption to maritime traffic through the strait has increased the importance of alternative transportation corridors.

Attacks on pumping stations serving the East-West Pipeline therefore raise concerns about the reliability of routes intended to reduce dependence on the waterway.

Although the pipeline primarily transports crude oil rather than natural gas, disruptions to regional energy infrastructure can influence wider fuel markets by increasing uncertainty over supply and transportation.

Strait of Hormuz Disruption Affects LNG Shipments

The continuing conflict involving Iran has severely disrupted commercial navigation through the Strait of Hormuz.

The waterway is an important route for international energy shipments, including liquefied natural gas exports from the Persian Gulf.

Restrictions and security concerns affecting maritime traffic have complicated the movement of LNG cargoes towards international markets.

Some LNG carriers have been forced to use longer alternative shipping routes around Africa via the Cape of Good Hope.

According to the reported market conditions, these diversions have extended transit times by approximately 10 to 14 days.

Longer journeys increase shipping requirements and freight costs, while delaying the arrival of cargoes at their destinations.

For European energy buyers, the disruption has created additional difficulties in securing replacement supplies ahead of winter.

European LNG Deliveries Reportedly Fall Sharply

The disruption to established shipping routes has contributed to a substantial reduction in LNG deliveries to European import terminals.

According to the figures cited in the market report, spot LNG deliveries to European regasification facilities were nearly 80% below their levels a year earlier.

The decline reflects the combined effects of shipping disruptions, longer transportation routes and constraints on available cargoes.

European utilities rely on LNG imports as an important source of natural gas, particularly when pipeline supplies are insufficient to meet demand.

Reduced deliveries can increase competition for available shipments and place upward pressure on wholesale gas prices.

The reported reduction in spot cargoes is particularly relevant as European energy demand begins to increase during the colder months.

EU Gas Storage Falls Below Seasonal Average

European underground natural gas inventories are also below their typical levels for late October.

Data attributed to Gas Infrastructure Europe indicates that storage facilities across the European Union were approximately 74.6% full.

This compares with a five-year seasonal average of around 86%.

During the comparable period in the previous year, storage levels exceeded 95%.

The reported October 2026 inventory level represents the lowest regional storage position for that point in the year in records dating back to 2009.

The difference between current inventories and historical levels indicates that Europe is entering the winter heating period with a smaller stored gas reserve than usual.

Lower storage levels can increase sensitivity to supply interruptions, particularly when imported LNG volumes are constrained.

Colder Weather Could Increase Early Winter Demand

Weather forecasts have added to concerns about European gas availability.

Meteorological services have indicated the possibility of below-seasonal-average temperatures across parts of Northern and Central Europe in early November.

Colder conditions would increase demand for natural gas used in residential and commercial heating.

Utilities could therefore begin withdrawing gas from underground storage facilities earlier or at a faster rate than under milder weather conditions.

With EU storage already below its five-year seasonal average, stronger heating demand could place additional pressure on inventories.

The extent of that pressure will depend on actual temperatures, industrial gas consumption and the availability of additional imports.

Energy Security Remains a Focus for European Markets

The combination of geopolitical tensions, shipping disruptions and lower storage inventories has increased uncertainty in European natural gas markets.

Continued attacks on Middle Eastern energy infrastructure could complicate efforts to restore confidence in regional supply routes.

At the same time, longer LNG shipping journeys may affect the timing and cost of deliveries to European import terminals.

The situation highlights Europe’s continuing exposure to developments in international energy markets, particularly during periods of elevated winter demand.

Wholesale gas prices will remain sensitive to changes in Middle Eastern security conditions, LNG availability and European weather forecasts.

Outlook for European Natural Gas Prices

European gas benchmarks reached their highest levels since 2022 as traders assessed renewed threats to Saudi Arabian energy infrastructure and continued disruption to LNG shipments.

The Dutch TTF contract advanced to €97.35/MWh, while UK NBP futures rose to 241.00 pence per therm.

Supply concerns have been compounded by EU underground gas storage levels of approximately 74.6%, substantially below the five-year seasonal average of 86%.

Forecasts of colder weather in early November could further increase demand for heating fuel and accelerate withdrawals from storage.

The direction of European gas prices will depend on developments in Middle Eastern hostilities, the restoration of shipping routes, LNG import availability and the severity of winter weather.

Eurozone government bond yields moved higher on Wednesday as French sovereign debt resumed its decline in price following a brief recovery prompted by Moody’s credit rating decision. German bond yields also increased modestly after consumer confidence data pointed to continued pressure on household finances, while investors awaited monetary policy announcements from the Federal Reserve and European Central Bank.

France’s benchmark 10-year government bond yield rose to 4.965%, reversing part of the improvement recorded on Monday after Moody’s affirmed the country’s Aa3 sovereign credit rating. The two-year French yield also increased, reaching 3.768%.

German government bonds weakened slightly, with the two-year Bund yield advancing to 3.082% and the 10-year yield reaching 3.382%.

The movements came amid continuing concerns about government borrowing requirements, inflation and the outlook for interest rates in major economies.

French Bond Yields Rise Despite Moody’s Rating Confirmation

French government bonds came under renewed pressure after a short-lived recovery earlier in the week.

The yield on France’s benchmark 10-year OAT rose to 4.965%, while the two-year yield climbed to 3.768%.

Bond yields move inversely to prices, meaning the increases reflected renewed selling pressure on French sovereign debt.

The movement followed Moody’s decision to maintain France’s sovereign credit rating at Aa3, which had initially supported demand for the country’s bonds.

However, investors continued to assess the fiscal challenges facing the French government.

France’s budget deficit stands at approximately 5.4% of gross domestic product, while President Emmanuel Macron’s administration faces parliamentary difficulties in securing support for fiscal consolidation measures.

Continuing public demonstrations have added to the political challenges surrounding proposed budget adjustments.

These developments have contributed to investor scrutiny of France’s borrowing requirements and longer-term debt sustainability.

Investors Focus on Government Debt Sustainability

The renewed increase in French bond yields reflects broader concerns about fiscal conditions across sovereign debt markets.

Investors are assessing whether governments can maintain access to financing at manageable costs while addressing budget deficits and existing debt obligations.

Louis Gargour, Chief Investment Officer at Market Securities Wealth, highlighted the growing importance of fiscal considerations.

“Long-term fiscal sustainability is becoming an increasingly important consideration for investors,” Gargour said.

He added: “High debt burdens, budgetary pressures, and growing social tensions raise legitimate questions about the long-term trajectory of government finances. Markets are increasingly focused on fiscal discipline and governments’ ability to refinance large debt stocks without materially higher borrowing costs.”

Higher government bond yields can increase the cost of issuing new debt and refinancing existing obligations as they mature.

For France, the combination of a substantial fiscal deficit and political disagreements over budget measures remains an important consideration for bond investors.

German Bund Yields Increase as Consumer Confidence Weakens

German government bond yields also moved higher during Wednesday’s trading session.

The yield on the two-year Bund increased to 3.082%, while the benchmark 10-year yield edged up to 3.382%.

The movements followed consumer confidence figures indicating that German households remain cautious about their financial outlook.

The forward-looking consumer climate index, compiled by the Nuremberg Institute for Market Decisions and GfK, declined to -30.8 points for November from -30.6 in October.

The reading was slightly stronger than the -30.9 forecast in a Reuters survey, but still indicated weak consumer sentiment.

The survey pointed to continued concerns about household purchasing power and elevated energy costs ahead of the winter period.

These pressures remain relevant to expectations for German consumer spending and economic growth.

Energy Costs Continue to Affect German Households

The German consumer confidence figures highlighted the continuing impact of elevated prices on household finances.

Energy expenses remain a particular concern as the winter period approaches and demand for heating increases.

Persistent price pressures have limited expectations for improvements in real household income.

The decline in the consumer climate index suggests that consumers remain reluctant to adopt a more positive assessment of their financial circumstances.

Weak consumer confidence can affect household expenditure and, consequently, broader economic activity.

The latest survey therefore adds to the economic information being considered by investors ahead of the European Central Bank’s monetary policy decision.

Federal Reserve Expected to Maintain Interest Rates

The Federal Open Market Committee is expected to leave its benchmark interest rate range unchanged at 3.75% to 4.00% when it announces its decision later on Wednesday.

Despite expectations for no immediate change, short-term interest rate markets are pricing an implied probability of approximately 80% for a 25-basis-point increase at the December meeting.

Investors will focus on Federal Reserve Chair Kevin Warsh’s press conference for indications of how policymakers are assessing inflation and the economic effects of higher energy prices.

Particular attention will be paid to the potential for energy costs to influence prices across other sectors of the economy.

The central bank’s assessment of these secondary inflation effects could influence expectations for future monetary policy.

The decision will also provide an important reference point for global bond markets ahead of the ECB’s announcement.

ECB Expected to Hold Deposit Rate at 2.50%

The European Central Bank is expected to maintain its deposit facility rate at 2.50% when its Governing Council meets on Thursday.

The anticipated decision follows interest rate increases in June and September.

Eurozone headline inflation remains at 3.8%, presenting a challenge for policymakers seeking to contain price pressures without placing additional strain on economic activity.

Government borrowing costs have also remained elevated in several eurozone countries.

These conditions require the ECB to consider the effects of monetary tightening on inflation, economic growth and financial markets.

Investors will examine President Christine Lagarde’s comments for indications of whether the central bank believes current financial conditions are restrictive enough to delay another interest rate increase.

Market attention is particularly focused on the possibility of a further 25-basis-point rise in December.

Monetary Policy Outlook Influences European Bond Markets

The Federal Reserve and ECB decisions are taking place against a backdrop of persistent inflation concerns and elevated sovereign borrowing costs.

In the United States, investors are assessing whether energy-related price pressures could lead to additional monetary tightening.

In the eurozone, the ECB faces similar questions while also considering the financial conditions of member states with substantial government borrowing requirements.

Higher interest rates generally increase the cost of financing for governments, businesses and households.

They can also affect the market value of existing fixed-income securities.

The outlook for monetary policy therefore remains an important factor influencing bond yields across European markets.

Israeli Government Bond Yield Rises Following Election

Outside the eurozone, Israeli government bond yields increased sharply following Tuesday’s parliamentary election.

Exit polls indicated that neither Prime Minister Benjamin Netanyahu’s coalition nor the opposition bloc associated with former military chief Gadi Eisenkot had secured a clear majority in the 120-member Knesset.

The results pointed to the possibility of extended negotiations over the formation of a governing coalition.

The political uncertainty comes amid an ongoing regional military conflict.

Israel’s benchmark 10-year government bond yield rose to 4.067%, recording its largest single-session increase in nearly a month.

The yield had previously reached a one-month low earlier in the week.

The increase reflected renewed pressure on Israeli sovereign bonds as investors assessed the implications of the election outcome and the wider security environment.

Outlook for Sovereign Bond Markets

Eurozone government bond yields moved higher as investors reassessed fiscal risks and awaited monetary policy decisions from the Federal Reserve and ECB.

French bonds remained under pressure despite Moody’s decision to maintain the country’s Aa3 rating, with the 10-year yield reaching 4.965%.

German yields also increased as consumer confidence data indicated continuing pressure from energy costs and weak household income expectations.

The Federal Reserve is expected to maintain rates at 3.75% to 4.00%, while the ECB is anticipated to hold its deposit rate at 2.50%.

Investors will monitor central bank communications for indications of whether further tightening may be required to address persistent inflation.

Fiscal developments in France, economic data from Germany and political uncertainty affecting Israeli debt will also remain relevant to sovereign bond markets.

TotalEnergies (LSE:TTE) has acquired a 25% working interest in 26 offshore exploration leases operated by Chevron in the US Gulf of Mexico, expanding its exploration portfolio through an agreement that also involves the exchange of interests in two additional leases.

Under the transaction, Chevron will receive a 75% operated interest in two exploration leases previously held by TotalEnergies. These leases are located adjacent to areas where the two energy companies already hold joint exploration interests.

The agreement covers offshore acreage located between 150 and 250 kilometres from the US coastline, with most of the leases situated in the Green Canyon area.

The transaction follows an earlier agreement in June 2025, when TotalEnergies acquired interests in 40 Chevron-operated exploration blocks in the region.

TotalEnergies Expands Gulf of Mexico Exploration Portfolio

The agreement gives TotalEnergies a 25% working interest in 26 exploration leases operated by Chevron.

A working interest represents a company’s ownership share in an oil and gas licence, including its entitlement to future production and its responsibility for a corresponding proportion of exploration and development costs.

Chevron will remain the operator of the 26 leases, retaining responsibility for managing exploration activities.

The agreement expands TotalEnergies’ participation in offshore exploration opportunities in the United States while maintaining Chevron’s operational role.

Financial terms of the transaction, including any cash consideration, were not disclosed in the information provided.

Exploration Acreage Concentrated in Green Canyon and Walker Ridge

The 26 exploration leases are situated approximately 150 to 250 kilometres offshore in the Gulf of Mexico.

Twenty-four leases are located in the Green Canyon area, while the remaining two are in Walker Ridge.

Both areas are established offshore exploration regions containing geological formations associated with oil and gas resources.

TotalEnergies stated that the leases target proven geological plays, providing access to exploration opportunities within established petroleum systems.

However, the agreement relates to exploration acreage rather than confirmed producing assets.

No resource estimates, drilling commitments or exploration schedules were disclosed as part of the announcement.

Chevron Receives 75% Interest in Two TotalEnergies Leases

As part of the agreement, Chevron will acquire a 75% operated interest in two exploration leases held by TotalEnergies.

These leases are located next to exploration acreage already held jointly by the companies.

The arrangement involves an exchange of exploration interests, allowing both companies to adjust their positions within neighbouring offshore areas.

Chevron will assume the operating role in the two additional leases under the terms of the transaction.

The companies did not disclose the valuation assigned to the exchanged interests or any associated financial payments.

Agreement Builds on June 2025 Exploration Transaction

The latest transaction follows TotalEnergies’ entry into 40 Chevron-operated exploration blocks in June 2025.

That earlier agreement expanded the French energy company’s participation in US offshore exploration.

The addition of interests in another 26 leases further extends the relationship between TotalEnergies and Chevron in the Gulf of Mexico.

The transactions provide TotalEnergies with access to additional exploration acreage while allowing Chevron to continue managing operations.

The companies have not announced drilling dates or production targets for the newly acquired interests.

TotalEnergies Targets Additional Exploration Opportunities

Nicola Mavilla, Senior Vice President for Exploration at TotalEnergies, said the agreement provides access to further exploration prospects.

Mavilla described the transaction as giving the company access to “a new set of high-impact opportunities.”

The statement reflects TotalEnergies’ objective of expanding its exploration portfolio in offshore areas with established oil and gas activity.

Exploration leases provide the right to assess potential hydrocarbon resources, but commercial production depends on successful discoveries, technical evaluations and subsequent investment decisions.

The company did not provide an estimate of the potential resources associated with the 26 leases.

Existing Gulf of Mexico Production Interests

TotalEnergies already holds interests in several producing offshore oil and gas assets in the Gulf of Mexico.

These include Ballymore, Anchor, Jack and Tahiti.

The producing assets form part of the company’s existing upstream operations in the United States.

The newly acquired exploration interests will complement this established presence, although they are at a different stage of development.

Unlike producing fields, exploration leases do not generate production revenue unless commercially viable discoveries are made and developed.

The announcement did not indicate whether the new acreage would be developed in connection with any of the company’s existing producing assets.

US Investment Reaches Nearly $12 Billion Since 2022

TotalEnergies has operated in the United States since 1957 and maintains activities across oil, natural gas and electricity.

The company reported that it has invested nearly $12 billion in the country since 2022.

These investments cover oil operations, liquefied natural gas and electricity generation.

The latest offshore exploration agreement adds to the company’s existing US energy portfolio.

TotalEnergies did not disclose the investment value associated specifically with the newly acquired exploration interests.

LNG Exports Total 19 Million Tonnes in 2025

TotalEnergies reported exports of 19 million tonnes of liquefied natural gas from the United States in 2025.

The company described itself as the largest exporter of US LNG during that year.

LNG forms an important part of TotalEnergies’ US operations alongside offshore oil and gas exploration and production.

The company’s activities include participation in the supply and international marketing of natural gas.

The offshore exploration transaction does not directly change the company’s reported LNG export volumes.

US Electricity Capacity Reaches 10 Gigawatts

In addition to its oil and gas operations, TotalEnergies reported installed electricity generation capacity of 10 gigawatts in the United States.

The electricity business forms part of the company’s broader activities in the American energy market.

Together with its LNG operations and offshore assets, this capacity illustrates the range of energy activities maintained by TotalEnergies in the country.

The announcement did not provide a breakdown of the electricity capacity by generation technology.

Outlook for US Offshore Exploration

The acquisition of a 25% interest in 26 Chevron-operated exploration leases expands TotalEnergies’ offshore exploration position in the Gulf of Mexico.

The transaction follows the company’s June 2025 entry into 40 Chevron-operated blocks and adds acreage in the Green Canyon and Walker Ridge areas.

Chevron will also acquire a 75% operated interest in two neighbouring TotalEnergies leases under the agreement.

The additional exploration interests provide opportunities for future resource evaluation, although no drilling programme or development timetable has been announced.

Exploration results and subsequent investment decisions will determine whether the acreage contributes to TotalEnergies’ future oil and gas production.

More About TotalEnergies

TotalEnergies is a French integrated energy company operating internationally across oil, natural gas, liquefied natural gas and electricity.

Its activities include hydrocarbon exploration and production, energy trading, refining, distribution and power generation.

The company has maintained operations in the United States since 1957, with investments across offshore oil and gas, LNG and electricity.

Rémy Cointreau (EU:RCO) reported stronger-than-expected sales for the second quarter of its 2026-27 financial year, supported by growth in its cognac business across Asia-Pacific, particularly China, while its liqueurs and spirits division continued to face pressure from distribution changes in the United States.

The French spirits producer recorded organic sales growth of 4.2% for the quarter ended September 2026, exceeding analysts’ expectations of 3.6%. Revenue reached €287.7 million, compared with the consensus forecast of €280.8 million.

The cognac division recorded organic growth of 12.4%, exceeding market expectations, while liqueurs and spirits revenue declined 7.4% on an organic basis.

Rémy Cointreau maintained its full-year outlook for a return to sustainable organic sales growth and reaffirmed its objective of achieving a slight improvement in current operating margin.

Second-Quarter Revenue Exceeds Analyst Forecasts

Rémy Cointreau generated revenue of €287.7 million during the second quarter, approximately €6.9 million above the analyst consensus.

Organic revenue growth reached 4.2%, compared with the 3.6% increase anticipated by the market.

For the first six months of the financial year, revenue totalled €510.9 million, compared with €489.6 million in the corresponding period a year earlier.

This represented reported revenue growth of 4.4%, while organic growth reached 2.9%.

The difference between reported and organic growth reflects factors such as currency movements and changes in the reporting perimeter.

The first-half performance was supported by higher cognac sales, although trading conditions remained uneven across the company’s product categories and geographic markets.

Cognac Sales Rise 12.4% on Asian Demand

Rémy Cointreau’s cognac division reported organic revenue growth of 12.4% in the second quarter, ahead of analysts’ expectations of 8.9%.

The performance was primarily supported by increased shipments to China ahead of the Mid-Autumn Festival.

The company also reported continued sales momentum across other Asia-Pacific markets.

The acceleration in shipments contributed to the division’s quarterly performance and helped offset weaker results elsewhere in the business.

However, the timing of shipments ahead of a major seasonal event is relevant when assessing the sustainability of quarterly growth.

Rémy Cointreau continues to monitor demand conditions across its principal cognac markets as it progresses through the second half of the financial year.

Liqueurs and Spirits Revenue Declines 7.4%

The liqueurs and spirits division reported a 7.4% organic revenue decline during the second quarter.

The result was weaker than the analyst consensus, which had anticipated a contraction of 4.7%.

Rémy Cointreau attributed the decline partly to inventory reductions by US distributors following changes to its distribution arrangements.

These destocking activities affected shipments during the quarter and contributed to the difference between the division’s performance and market expectations.

The company did not specify when the inventory adjustment process is expected to conclude.

The contrasting results between cognac and liqueurs and spirits highlight differences in trading conditions across the group’s businesses.

Tariff Impact Forecast Reduced to €5 Million

Rémy Cointreau revised its estimate of the impact of tariffs on current operating profit for the 2026-27 financial year.

The company now expects a negative impact of approximately €5 million, compared with its previous estimate of €20 million.

The €15 million reduction reflects changes in US import tariffs on European products and refunds relating to the previous financial year.

US tariffs on European imports declined from 15% to 10%, reducing the expected cost of importing the company’s products into the American market.

Rémy Cointreau also recognised €6.4 million in tariff refunds relating to the 2025-26 financial year during the first half.

The company intends to reinvest the approximately €15 million in tariff-related savings into initiatives designed to support future growth.

As a result, the lower estimated tariff burden does not translate directly into an equivalent improvement in the company’s operating profit outlook.

Currency Forecast Revised to Positive Contribution

Rémy Cointreau also updated its expectations for the financial impact of currency movements.

The company now anticipates a positive currency effect of approximately €15 million on full-year revenue.

This compares with its previous forecast of a negative impact of €15 million.

The revised estimate therefore represents a €30 million change in the expected revenue effect of foreign exchange movements.

For current operating profit, Rémy Cointreau now expects a positive currency contribution of between €3 million and €5 million.

Previously, the company had anticipated a negative impact of between €5 million and €8 million.

The revisions reflect updated exchange rate assumptions and their expected effects on the translation of international revenue and earnings.

Operating Margin Objective Maintained

Despite changes to its tariff and currency assumptions, Rémy Cointreau maintained its objective of achieving a slight organic improvement in current operating margin during the 2026-27 financial year.

The company stated:

“The Group’s objective of achieving a slight organic improvement in Current Operating Margin is thus unchanged.”

The margin objective remains in place even though the company plans to reinvest approximately €15 million in tariff savings to support growth.

The decision indicates that management is prioritising expenditure on commercial development while maintaining its underlying profitability target.

Actual margin performance will depend on sales volumes, product mix, operating expenditure and market conditions during the remainder of the financial year.

Full-Year Organic Sales Growth Guidance Reaffirmed

Rémy Cointreau confirmed its guidance for a return to sustainable organic revenue growth during the financial year ending 31 March 2027.

The company expects sales momentum to improve progressively as the year advances.

Its outlook reflects the contribution from cognac sales, alongside continuing challenges in liqueurs and spirits.

The group has not provided a specific numerical organic sales growth target in the reported update.

Management’s expectations remain dependent on demand across major markets, distribution activity and the timing of customer orders.

The company also maintained its objective of achieving a slight organic improvement in current operating margin.

€250 Million Hybrid Bond Issue Completed

On 30 September 2026, Rémy Cointreau completed its inaugural hybrid bond issuance, raising €250 million.

The securities carry a fixed coupon of 6.75%.

The company stated that the entire amount will be recognised as equity for accounting purposes.

Hybrid bonds combine characteristics of debt and equity financing, with their accounting treatment depending on the contractual terms.

The transaction forms part of the company’s financing arrangements as it manages its capital structure and financial commitments.

Rémy Cointreau did not specify the intended allocation of the proceeds in the information provided.

Leverage Target Remains Below 3.5 Times EBITDA

Rémy Cointreau reaffirmed its objective of maintaining leverage below 3.5 times net debt to EBITDA at 31 March 2027.

The ratio measures net borrowing relative to earnings before interest, tax, depreciation and amortisation.

The target provides a measure of the company’s intended financial position at the end of the current financial year.

The €250 million hybrid bond issuance is also relevant to the group’s capital structure, given its planned classification as equity.

The company did not provide an updated net debt figure or current leverage ratio in the reported trading update.

Outlook for the Remainder of 2026-27

Rémy Cointreau enters the second half of its financial year with organic sales growth ahead of expectations in the September quarter.

Cognac demand in Asia-Pacific, particularly China, supported the performance, while inventory adjustments in the United States continued to affect the liqueurs and spirits division.

The company has reduced its expected tariff-related profit impact and revised its currency assumptions to reflect a positive contribution to revenue and operating profit.

It continues to target sustainable organic sales growth, a slight improvement in current operating margin and leverage below 3.5 times net debt to EBITDA by the end of March 2027.

The pace of sales growth, developments in US distribution and demand in Asian markets will remain important factors in the company’s performance during the second half.

More About Rémy Cointreau

Rémy Cointreau is a French spirits group specialising in premium alcoholic beverages, including cognac, liqueurs and other spirits.

Its portfolio includes internationally distributed brands such as Rémy Martin, Cointreau and Mount Gay.

The company operates across Europe, the Americas and Asia-Pacific, supplying products through distribution networks serving retail, hospitality and other markets.

Intertek Group plc (LSE:ITRK) reported organic revenue growth of 6.4% in the third quarter of 2026, accelerating from 4.4% in the preceding quarter, supported by stronger performances in Consumer Products, Health & Safety, and Industry and Infrastructure.

The testing, inspection and certification group recorded reported revenue growth of 7.0%, compared with 8.0% in the second quarter.

Intertek maintained its full-year guidance for mid-single-digit organic revenue growth, margin progression and strong free cash flow generation.

The company also confirmed that its acquisition by private equity group EQT is progressing, with completion expected during the fourth quarter of 2026 or the first quarter of 2027.

Organic Revenue Growth Accelerates in Third Quarter

Intertek reported third-quarter organic revenue growth of 6.4%, representing an improvement of two percentage points from the 4.4% recorded in the second quarter.

Organic revenue growth measures changes in underlying business activity, excluding the effects of acquisitions, disposals and currency movements.

Reported revenue growth was 7.0%, compared with 8.0% in the previous quarter.

The results reflected differing performances across Intertek’s five operating divisions, with four recording positive organic revenue growth and one reporting a modest decline.

Consumer Products and Industry and Infrastructure recorded the highest organic growth rates, while Health & Safety also improved compared with the second quarter.

Corporate Assurance remained in positive territory but experienced slower growth, and World of Energy reported a small contraction.

Consumer Products Revenue Growth Reaches 9.8%

Intertek’s Consumer Products division recorded organic revenue growth of 9.8% during the third quarter, compared with 4.3% in the preceding three months.

The increase of 5.5 percentage points made Consumer Products the company’s fastest-growing division during the period.

The division provides testing, inspection and assurance services for consumer goods, helping manufacturers and retailers assess products against applicable quality, safety and regulatory requirements.

Despite the acceleration in quarterly growth, Intertek maintained its full-year outlook for mid-single-digit organic revenue growth in Consumer Products.

The unchanged guidance indicates that the company has not revised its annual expectations following the third-quarter performance.

Corporate Assurance Growth Moderates to 4.3%

Corporate Assurance reported organic revenue growth of 4.3% in the third quarter, compared with 9.3% in the second quarter.

The five-percentage-point reduction represented the largest sequential slowdown among Intertek’s divisions.

Corporate Assurance provides services that support businesses in assessing operational standards, management systems, supply chains and compliance requirements.

Although quarterly growth moderated, Intertek retained its full-year guidance for high-single-digit organic revenue growth in the division.

The company did not provide additional details in the reported update explaining the difference between second- and third-quarter growth rates.

Health & Safety Outlook Raised Following 7.5% Growth

Intertek’s Health & Safety division recorded organic revenue growth of 7.5% during the third quarter, compared with 6.7% in the preceding quarter.

The improvement prompted the company to raise its full-year outlook for the division.

Intertek now expects mid-single-digit organic revenue growth in Health & Safety for 2026, compared with its previous forecast of low-single-digit growth.

The revised guidance reflects the division’s performance during the year and management’s expectations for the remaining months.

Health & Safety provides testing and assurance services associated with product safety, regulatory compliance and related technical requirements.

The division was one of two business areas for which Intertek changed its annual outlook in the third-quarter update.

Industry and Infrastructure Growth Accelerates to 9.2%

Industry and Infrastructure reported organic revenue growth of 9.2% in the third quarter, compared with 3.6% in the second quarter.

The increase of 5.6 percentage points represented the largest sequential improvement across Intertek’s operating divisions.

The business provides inspection, testing and assurance services associated with industrial operations, construction and infrastructure assets.

Despite the stronger quarterly performance, Intertek maintained its full-year outlook for mid-single-digit organic revenue growth.

The division’s third-quarter performance contributed to the acceleration in organic growth across the group.

World of Energy Revenue Declines 0.6%

Intertek’s World of Energy division recorded a 0.6% decline in organic revenue during the third quarter, compared with growth of 0.4% in the second quarter.

The division was the only one of Intertek’s five operating segments to report negative organic growth during the period.

Following the result, Intertek lowered its full-year outlook for World of Energy.

The company now expects stable like-for-like revenue for 2026, compared with its previous expectation of low-single-digit growth.

World of Energy provides testing, inspection and assurance services to businesses operating across energy markets.

The revised forecast reflects a more cautious revenue expectation for the division over the full financial year.

Full-Year 2026 Guidance Remains Unchanged

Intertek reaffirmed its group-level financial guidance for 2026 despite adjustments to the outlook for individual divisions.

The company continues to expect mid-single-digit organic revenue growth for the full year.

It also anticipates margin progression and strong free cash flow generation.

The guidance follows third-quarter organic revenue growth of 6.4%, with improved performances in several business areas offsetting slower growth in Corporate Assurance and the decline in World of Energy.

The company did not announce revised numerical targets for operating margins or free cash flow in the information provided.

Intertek’s performance during the final quarter will determine the extent to which the group achieves its annual financial objectives.

EQT Acquisition Expected to Complete by Early 2027

Intertek also provided an update on its proposed acquisition by private equity group EQT.

The company said the transaction is progressing and remains expected to complete during the fourth quarter of 2026 or the first quarter of 2027.

The update did not provide additional information on the transaction’s outstanding conditions, regulatory approvals or other completion requirements.

The proposed acquisition represents a separate corporate development alongside Intertek’s ongoing trading activities.

Until the transaction is completed, Intertek continues to report its operating performance and financial outlook as a listed company.

Outlook for the Remainder of 2026

Intertek enters the final quarter of 2026 with its overall financial guidance unchanged.

The group expects mid-single-digit organic revenue growth, margin progression and strong free cash flow.

Consumer Products and Industry and Infrastructure recorded substantial sequential improvements in third-quarter growth, while Health & Safety also reported an increase.

Corporate Assurance growth moderated, and World of Energy experienced a slight decline, resulting in a reduction to the latter division’s annual outlook.

Alongside trading performance, the expected completion of the EQT acquisition remains a significant corporate development for the company.

More About Intertek

Intertek Group plc is an international provider of assurance, testing, inspection and certification services.

The company works with businesses across consumer products, corporate assurance, health and safety, industry and infrastructure, and energy markets.

Its services help customers assess product quality, regulatory compliance, operational performance and safety standards.

Banco Santander (LSE:BNC) reported a 19% increase in third-quarter underlying profit to €3.85 billion ($4.28 billion), supported by higher customer activity and revenue growth, while reaffirming its financial targets for 2026.

Spain’s largest bank reported attributable profit of €3.43 billion for the July-to-September period, representing a 2% decline from the previous year. The decrease reflected integration costs associated with its acquisition of US lender Webster.

Net loan-loss provisions increased 22% to €3.49 billion, partly offsetting the contribution from higher revenues.

For the first nine months of 2026, Santander reported underlying profit of €11.18 billion, an increase of 16%, while revenue rose 8% to €46.81 billion.

The bank maintained its expectations for full-year revenue growth, operating costs and profitability, alongside its longer-term financial objectives for 2028.

Third-Quarter Underlying Profit Increases 19%

Santander recorded underlying profit of €3.85 billion during the third quarter, compared with the corresponding period in 2025.

The 19% year-on-year increase reflected higher customer activity and revenue growth across the banking group.

Underlying profit excludes certain items to provide a measure of operating performance separate from their accounting impact.

However, attributable profit declined 2% to €3.43 billion.

The difference between underlying and attributable profit reflected costs associated with the integration of Webster, the US banking business acquired by Santander.

The company did not specify the total integration expenses recognised during the quarter in the information provided.

The results indicate that growth in underlying earnings was accompanied by acquisition-related costs and higher provisions for potential credit losses.

Loan-Loss Provisions Rise 22% to €3.49 Billion

Santander reported net loan-loss provisions of €3.49 billion for the third quarter, an increase of 22% compared with the previous year.

Loan-loss provisions represent charges recognised by banks to account for expected losses on lending exposures.

The increase reduced the contribution of revenue growth to reported profitability.

Santander’s results reflected the impact of higher provisions alongside increased customer activity and income generation.

The bank did not provide a breakdown of the provision increase by geography or lending category in the reported figures.

Future credit costs will depend on borrower performance, economic conditions and developments across the bank’s lending portfolios.

Nine-Month Underlying Profit Reaches €11.18 Billion

For the nine months ended September 2026, Santander reported underlying profit of €11.18 billion.

The figure represented a 16% increase compared with the corresponding period in 2025.

Revenue increased 8% to €46.81 billion over the same period.

The bank attributed its performance to revenue growth and cost management under its ONE Transformation programme.

The programme is intended to improve operating efficiency and support the group’s financial performance.

Santander’s nine-month results provide the basis for its reaffirmed full-year targets, including its expectation that annual profit will exceed the €14.1 billion recorded in 2025.

Santander Reaffirms 2026 Revenue and Profit Guidance

Santander maintained its financial targets for the year ending December 2026.

The bank continues to expect mid-single-digit revenue growth for the full year.

It also anticipates a reduction in operating costs when measured in constant euros, excluding the effects of currency movements.

Santander expects annual profit to exceed the €14.1 billion reported in 2025.

The company did not announce a revised numerical profit target beyond that threshold.

The reaffirmed guidance follows the increase in underlying earnings during the first nine months, although higher loan-loss provisions and acquisition-related expenses remain relevant to the final reported results.

ONE Transformation Programme Supports Cost Targets

Santander identified cost discipline under its ONE Transformation programme as a contributor to its nine-month financial performance.

The initiative forms part of the bank’s operating strategy and is intended to support efficiency across its businesses.

The bank’s full-year target includes lower costs in constant euros, indicating an objective to reduce expenditure independently of foreign exchange movements.

Revenue growth and cost management contributed to the 16% increase in underlying profit during the first nine months.

The figures provided did not include a separate breakdown of savings attributable to the transformation programme.

Santander continues to incorporate the programme into its financial objectives for 2026 and beyond.

CET1 Capital Ratio Expected to Reach 12.8%–13%

Santander reported a Common Equity Tier 1 (CET1) capital ratio of 12.7% at the end of September 2026.

The bank expects the ratio to reach between 12.8% and 13% by the end of the year.

The CET1 ratio measures a bank’s core regulatory capital relative to its risk-weighted assets.

It is used to assess capital adequacy and the bank’s capacity to absorb losses.

Santander’s year-end target implies an increase of between 10 and 30 basis points from the September level.

The bank reaffirmed this objective alongside its income, cost and profitability guidance.

Webster Acquisition Affects Reported Earnings

Integration costs associated with Santander’s acquisition of US lender Webster contributed to the decline in third-quarter attributable profit.

While underlying profit increased 19%, attributable profit fell 2% to €3.43 billion.

The difference highlights the effect of acquisition-related expenses on the group’s reported earnings.

Santander did not provide a detailed timetable for completing the integration or quantify the expected future financial contribution from Webster in the information supplied.

The integration process remains a factor in the distinction between the bank’s underlying performance and attributable profit.

Santander Maintains 2028 Profitability Objectives

Beyond its 2026 financial targets, Santander reiterated its longer-term objectives for 2028.

The bank aims to achieve a return on tangible equity exceeding 20%.

It also targets annual profit of more than €20 billion by that year.

Return on tangible equity measures profitability relative to shareholders’ tangible equity and provides an indication of the returns generated from the bank’s capital base.

The 2028 objectives imply further earnings growth from the levels reported in 2025 and expected for 2026.

Achieving these targets will depend on revenue development, operating costs, credit performance, capital requirements and the contribution of the bank’s businesses.

The company did not announce changes to either target.

Outlook for the Remainder of 2026

Santander enters the final quarter of 2026 with its full-year financial guidance unchanged.

The bank continues to target mid-single-digit revenue growth, lower operating costs in constant euros and profit above the €14.1 billion recorded in 2025.

It also expects its CET1 capital ratio to finish the year between 12.8% and 13%.

The third-quarter results showed higher underlying earnings and revenue growth, alongside increased loan-loss provisions and costs associated with the Webster acquisition.

The group’s fourth-quarter performance will determine whether the annual targets are achieved.

More About Banco Santander

Banco Santander is a Spanish multinational banking group providing retail, commercial, corporate and investment banking services.

The company operates across Europe and the Americas, offering lending, deposit, payment, investment and other financial services to individuals and businesses.

Santander’s operations include consumer finance, wealth management and corporate banking activities.