Author: Fiona Craig

U.S. stock futures edged lower on Thursday as investors assessed a mix of corporate updates and policy developments, including skepticism from the Supreme Court over presidential tariff powers and an upcoming shareholder vote on Tesla (NASDAQ:TSLA) CEO Elon Musk’s massive pay package.

Futures Dip Slightly

After a rebound in the previous session, U.S. stock futures traded slightly weaker early Thursday, with investors cautious amid concerns about high valuations. By 02:27 ET, Dow futures slipped 42 points (0.1%), S&P 500 futures were down 7 points (0.1%), and Nasdaq 100 futures lost 47 points (0.2%).

Major U.S. indices rose on Wednesday, led by gains in large-cap technology stocks, which helped calm fears that valuations—especially in the AI-driven tech sector—had become excessive. Optimism was also supported by alternative data pointing to resilient U.S. economic conditions in October, even as the ongoing government shutdown has delayed official reports.

Media reports indicated that lawmakers in Washington could reach an agreement to end the shutdown by the weekend. Should it persist, Transportation Secretary Sean Duffy warned that air travel capacity across 40 major U.S. airports would be cut by 10% starting Friday.

Supreme Court Voices Doubt Over IEEPA Tariffs

Markets also reacted to signs of skepticism from the Supreme Court’s conservative supermajority regarding former President Donald Trump’s use of emergency economic powers to impose broad tariffs.

The justices began hearing arguments on the 1977 International Emergency Economic Powers Act (IEEPA), which Trump had invoked as the legal basis for the duties. Lower courts previously ruled that the president had exceeded his authority.

Debate has centered on whether the court’s 6–3 conservative majority—including three Trump appointees—will uphold or strike down the tariffs. Historically, the court has often sided with expanding executive authority during Trump’s second term.

Chief Justice John Roberts, however, questioned the IEEPA’s application to tariffs, noting that “the tariffs represented a tax on Americans” and adding that “that has always been the core power of Congress.”

Prediction markets saw reduced bets on the tariffs surviving the fall, though analysts at Vital Knowledge warned that overturning the levies could introduce new economic uncertainty. Meanwhile, Trump officials hinted they may use alternative legal tools to sustain the trade war if the measures are struck down.

Qualcomm Warns of Potential Samsung Business Loss

Qualcomm (NASDAQ:QCOM) shares fell more than 3% in after-hours trading after the company warned it may lose part of its business from key customer Samsung Electronics next year.

The disclosure overshadowed quarterly results that beat Wall Street expectations, boosted by demand for premium smartphones. Qualcomm supplies modem chips that power mobile data connectivity in many of these devices.

Samsung, a major buyer of Qualcomm’s chips for its Galaxy S25 models, may reduce its reliance on the company for future phones. Reuters reported that CEO Cristiano Amon said Qualcomm is preparing for a smaller role in Samsung’s next-generation devices.

Elsewhere, chip designer Arm Holdings (NASDAQ:ARM) delivered a stronger-than-expected fiscal third-quarter outlook, supported by rising AI-related spending across the tech sector. Shares of the U.K.-based firm rose in after-hours trading.

Tesla Shareholders to Vote on Musk’s $1 Trillion Pay Package

Tesla shareholders are set to vote Thursday on a record compensation plan for CEO Elon Musk, though not all investors are supportive.

Earlier this week, Norway’s sovereign wealth fund—the world’s largest—announced it would reject the proposed $1 trillion package, citing concerns over its size and structure. Norges Bank Investment Management, which manages $1.9 trillion in assets, said that while it “appreciate[s] the significant value created under Mr. Musk’s visionary role,” it remains “concerned about the total size of the award, dilution, and lack of mitigation of key person risk.”

Tesla’s board warned that a rejection could risk Musk leaving the company, which might put pressure on the stock.

Bank of England Decision Looms

Attention also turns to the Bank of England’s policy announcement later today, where expectations remain divided. Most analysts forecast the central bank will keep its benchmark rate unchanged at 4.0%, although markets still see roughly a one-in-three chance of a 25-basis-point rate cut.

Holding rates steady would mark a pause in the easing cycle that began last year, yet some economists believe a modest reduction could be on the table following weaker-than-expected—but still high—inflation and wage figures.

The BoE has lowered rates every three months since August 2024, though it’s unclear whether this pace will continue. Governor Andrew Bailey cautioned in September that the outlook ahead is “more uncertain.”

European markets opened slightly weaker on Thursday as investors weighed another wave of corporate earnings and awaited a closely watched monetary policy decision from the Bank of England.

At 08:05 GMT, Germany’s DAX slipped 0.2%, France’s CAC 40 fell 0.3%, and the UK’s FTSE 100 was down 0.1%.

Earnings Remain in Focus

Confidence has cautiously returned to global equity markets following a subdued start to the week, helped by stronger-than-expected U.S. economic data that eased concerns about stretched valuations.

In Europe, sentiment has been supported by a perception that the corporate outlook is improving, with many companies delivering results that have defied investors’ worst fears. Still, with the region’s major indices hovering near record highs, traders continue to take profits amid a heavy earnings calendar.

Commerzbank (TG:CBK) announced a share buyback of up to €1 billion after reporting its highest-ever nine-month operating profit, reflecting strong momentum across its core businesses.

BT Group (LSE:BT.A) posted a 3% decline in second-quarter revenue, with its Openreach division—responsible for the UK’s fixed-line network—losing 242,000 broadband customers during the quarter, a sharper drop than the 205,000 expected. The company attributed the losses to “stiff competition and a weaker broadband market.”

AstraZeneca (LSE:AZN) reported stronger-than-anticipated third-quarter earnings, driven by solid growth in its oncology, cardiovascular, and renal treatments, while maintaining its full-year guidance unchanged.

Volvo Car (BIT:1VOLVB) said it aims for a long-term operating margin above 8% as part of a strategic overhaul, expanding cooperation with majority shareholder Geely to reduce costs and strengthen cash generation.

Skanska (TG:SKNB) posted higher third-quarter profits despite significant property impairments in the U.S., as its core construction operations delivered stronger-than-expected margins.

Bank of England Policy Decision Ahead

Attention now turns to the Bank of England, which is set to announce its latest interest rate decision later in the session. Economists broadly expect the central bank to keep rates unchanged at 4.0%, as the UK continues to post the highest inflation rate among G7 economies.

However, the decision is not seen as guaranteed. Recent signs of easing inflation and expectations that Chancellor Rachel Reeves will raise taxes in the upcoming budget have created additional uncertainty. Earlier this week, Reeves acknowledged that she would have to make “hard choices” to safeguard public services while reducing national debt—comments seen as paving the way for fiscal tightening.

Elsewhere, German industrial production rose 1.3% in September, missing forecasts for a 3% increase and highlighting continued weakness in Europe’s largest economy.

Oil Prices Steady After Recent Declines

Crude oil prices stabilized Thursday following steep losses, as fears of oversupply and softer demand continued to weigh on sentiment. Brent futures were up 0.3% at $63.68 per barrel, while U.S. West Texas Intermediate gained 0.3% to $59.80.

Both benchmarks fell about 1% on Wednesday and posted their third consecutive monthly decline in October. Market concerns persist over weaker U.S. fuel demand amid a prolonged government shutdown and expectations of a supply glut next year. According to the U.S. Energy Information Administration, U.S. crude inventories rose by 5.2 million barrels last week to 421.2 million, far exceeding expectations for an increase of just 603,000 barrels.

National Grid plc (LSE:NG.) reported a 6% increase in underlying earnings per share to 29.8p for the six months ended 30 September 2025, beating analyst forecasts as the company continues to execute its record energy infrastructure investment program across the UK and the US. Underlying operating profit rose 13% at constant currency to £2.29 billion, supported by robust performance in its regulated businesses.

The power network operator invested a record £5.1 billion during the half-year, up 12% at constant currency, as part of its ongoing efforts to expand and modernize its electricity grids. “Our financial performance reflects another period of strong operational delivery in line with our five-year financial frame,” said Chief Executive John Pettigrew. “We continue to deliver for our customers, investing a record £5 billion this half, and we are on track to invest over £11 billion this year.”

In the UK, Electricity Transmission profits rose 17% to £846 million, while the company’s U.S. businesses delivered significant growth—New York up 61% to £443 million and New England up 29% to £292 million. These gains were partly offset by a 4% decline in UK Electricity Distribution profit to £551 million.

Management indicated that full-year underlying EPS remains on track to grow within its 6–8% target range from the 2024/25 baseline of 73.3p, suggesting upside potential to the current consensus estimate of 77.1p, even amid currency headwinds. The board declared an interim dividend of 16.35p per share, representing a 3% year-on-year increase.

National Grid has continued to streamline its operations, completing the sale of National Grid Renewables and agreeing to divest Grain LNG. The company also secured supply chain partnerships covering more than three-quarters of its £60 billion five-year investment plan, including an £8 billion Electricity Transmission Partnership for substation construction and a £12 billion HVDC framework for UK civil works.

“This investment in our networks is critical to ensuring resilience, enabling economic growth, supporting cleaner energy, and meeting rising power demand,” Pettigrew added.

More about National Grid plc

National Grid plc is one of the world’s largest publicly listed utility companies, operating electricity and gas transmission and distribution networks in the UK and the northeastern United States. The company plays a key role in advancing the energy transition through large-scale investments in renewable integration, grid modernization, and decarbonization infrastructure. Its strategy focuses on delivering sustainable, long-term value while supporting reliable, affordable energy for millions of customers.

Smith & Nephew PLC (LSE:SN.) saw its shares drop 7.6% on Thursday after posting third-quarter results that came in below analyst forecasts, despite reaffirming its full-year guidance. The medical technology group reported underlying revenue growth of 5.0%—missing the consensus estimate of 6.3%—as weakness in U.S. knee implant sales and a slower-than-expected recovery in Sports Medicine offset gains in its wound care division.

Revenue for the three months ended 27 September 2025 totaled $1.50 billion, up 5.0% on an underlying basis and 6.3% on a reported basis, including a 1.3% positive currency impact. The results marked a slowdown from the 6.7% growth recorded in the prior quarter, even as year-over-year comparisons eased.

Chief Executive Officer Deepak Nath said, “Our third-quarter results again demonstrate how the 12-Point Plan has improved Smith+Nephew’s revenue growth profile, keeping us on track to meet our full-year outlook for revenue growth and a step-up in trading profit margin. As we approach the end of the 12-Point Plan, our business is undoubtedly in a better place.”

By segment, Orthopaedics revenue rose 4.1%, missing expectations of 6.2%, with U.S. Knee Implants down 2.3% amid ongoing portfolio rationalization. This was partly offset by a 6.3% rise in U.S. Hip Implants, supported by the successful rollout of the CATALYSTEM Primary Hip System. Sports Medicine & ENT grew 5.1%, below the 7.2% forecast, as recovery from China’s Volume-Based Procurement (VBP) program lagged. Advanced Wound Management was the strongest performer, climbing 6.0%—ahead of expectations—driven by a 12.2% increase in Advanced Wound Bioactives.

Despite the top-line miss, Smith+Nephew reaffirmed its guidance for around 5% underlying revenue growth and a trading profit margin between 19% and 20%. The company also raised its free cash flow forecast to approximately $750 million, up from the previous target of more than $600 million, citing improved working capital management and operational efficiencies. In addition, Smith+Nephew confirmed the completion of its $500 million share buyback program on 7 October.

More about Smith & Nephew PLC

Smith & Nephew PLC is a global medical technology company specializing in advanced wound management, orthopaedics, and sports medicine solutions. Headquartered in London, the company operates in more than 100 countries, providing innovative surgical and medical products that improve patient outcomes and enhance recovery times. Its growth strategy focuses on expanding in high-demand markets and improving profitability through operational discipline and portfolio optimization.

Watches of Switzerland Group PLC (LSE:WOSG) saw its shares rise 4.9% on Thursday after reporting a strong first-half performance for fiscal 2026, fueled by exceptional growth in the U.S. market. Group revenue reached £845 million for the six months, representing a 10% increase at constant currency and topping analyst expectations of £825 million. U.S. sales were the standout contributor, surging 20% in constant currency—double market forecasts—while UK revenue rose 2% amid a “challenging retail environment.”

Adjusted EBIT is expected to come in between £66 million and £68 million, slightly below consensus of £68.3 million, with operating margins approximately 50 basis points lower year-on-year. Chief Executive Officer Brian Duffy said, “We have delivered a strong first half, with group revenue up 10% in constant currency, showing continued momentum across the business, disciplined execution, and improved market trends.”

Despite the introduction of a 39% tariff on Swiss watch imports to the U.S. since August 7, Watches of Switzerland reaffirmed its full-year guidance for constant currency sales growth between 6% and 10%, noting no significant shift in consumer behavior. Luxury watch sales grew 10% at constant currency, while luxury jewelry rose by the same percentage and now accounts for 12% of total revenue. E-commerce sales were also strong, up 16% year-on-year.

The group continues to invest in its retail network, completing several flagship refurbishments and opening new boutiques during the first half, with additional high-profile store launches planned for the second half of the fiscal year. “While we remain mindful of ongoing economic and geopolitical uncertainties, including the impact of U.S. tariffs, we are confident in delivering another year of strong growth and in consolidating our leadership in luxury watch and jewelry retailing,” Duffy added.

More about Watches of Switzerland Group PLC

Watches of Switzerland Group PLC is a leading luxury watch and jewelry retailer with operations in the UK, U.S., and Europe. The company represents major Swiss brands including Rolex, Patek Philippe, and Omega, offering both in-store and online experiences. Through continued investment in digital innovation and high-end retail spaces, the group aims to strengthen its position as a global leader in the luxury timepiece and jewelry sector.

IMI plc (LSE:IMI), the global engineering group specializing in fluid and motion control technologies, reported a 12% year-on-year increase in organic revenue for the third quarter of 2025, surpassing analyst expectations and sending its shares up 4.3% in early trading. The FTSE 100 company remains on track to deliver a fourth consecutive year of mid-single-digit organic revenue growth, with year-to-date organic revenue up 5%.

The Process Automation segment was the key growth driver, posting a 26% organic revenue rise during the quarter, supported by heightened global energy demand and robust aftermarket sales, which are up 7% year-to-date. Chief Executive Roy Twite commented, “IMI has delivered an excellent performance in the third quarter, demonstrating the continued success of our growth strategy and the strength of our One IMI operating model.”

IMI’s Automation division, accounting for 64% of 2024 sales, reported 17% organic growth, while the Life Technology division, representing 36% of sales, saw a 4% increase. Climate Control revenue grew 5%, reflecting sustained demand for energy-efficient building systems and advanced cooling technologies for data centers. Meanwhile, Life Science and Fluid Control sales climbed 13%, partially offset by a 9% decline in Transport revenue amid weakness in the global heavy-duty truck market.

The company reaffirmed its full-year guidance, projecting adjusted basic earnings per share between 129p and 136p. IMI also noted that prevailing exchange rates could trim approximately 1% from revenue and 1.5% from adjusted operating profit for the year compared to 2024. Despite earlier challenges—including a first-quarter cyber incident that disrupted shipments—the company continues to strengthen its portfolio, with a strategic review of its Transport sector underway to prioritize higher-margin, higher-growth areas.

More about IMI plc

IMI plc is a UK-based global engineering company specializing in motion and fluid control technologies that enable safe and efficient energy, industrial, and life science applications. Operating across more than 50 countries, IMI serves sectors including process automation, climate control, and life sciences. The company’s “One IMI” strategy focuses on driving sustainable growth through innovation, operational excellence, and selective investment in high-margin, high-demand markets.

Workspace Group plc (LSE:WKP) has signed a 20-year lease agreement with Qube, a fast-growing members’ club for music and content creators, securing 32,000 square feet at The Old Dairy in Shoreditch, London EC2. The site will serve as Qube’s new flagship creator hub, featuring state-of-the-art recording studios, co-working spaces, and premium amenities designed for creative professionals.

As part of the partnership, Workspace has invested £3 million for a minority equity stake in Qube, gaining board observer rights. The investment will primarily fund customized fit-out works, complemented by a £3.45 million landlord contribution. Together, the two companies plan to expand a scalable, specialist workspace offering for London’s creative industries, combining Workspace’s flexible property portfolio with Qube’s community-driven, Soho House-style concept.

Chief Executive Lawrence Hutchings said the collaboration reflects Workspace’s strategy of disciplined capital allocation and market-led partnerships, positioning the group as “the destination of choice for London’s creators and innovators.”

More about Workspace Group plc

Workspace Group plc is a leading provider of flexible office space in London, catering primarily to small and medium-sized enterprises, entrepreneurs, and creative professionals. The company owns and manages a portfolio of freehold properties in high-demand locations, offering adaptable spaces designed to foster innovation and collaboration across industries.

Wood Group plc (LSE:WG.) saw its shares surge as much as 38% to 25 pence on Thursday after trading resumed in London, ending a five-month suspension triggered by delays in publishing its financial accounts. The rally reflects investor reaction to the company’s long-awaited readmission and the pending £216 million takeover offer from UAE-based engineering group Sidara, valuing the stock at 30 pence per share.

Trading was suspended earlier this year following an independent review that exposed “failures” in Wood Group’s financial culture, including instances where information was withheld from auditors. The company has since released its 2024 annual report and interim results for the first half of 2025, allowing the resumption of trading. The 2024 accounts revealed a pre-tax loss from continuing operations of $2.7 billion, compared with $152 million in 2023, largely due to a $2.2 billion goodwill and intangible asset impairment. For the first half of 2025, Wood Group reported a $67.1 million pre-tax loss and negative cash flow of $404 million.

Auditors KPMG issued a qualified opinion on the 2024 results, citing time constraints and an inability to obtain sufficient audit evidence. Analysts at Peel Hunt described the half-year results as “terrible,” noting weak financial performance aside from a rise in new orders.

Wood Group, which provides engineering and project management services across the global energy and mining sectors, employs about 35,000 people in more than 60 countries. Once valued at £5.3 billion in 2018, the company has struggled since its £2.2 billion acquisition of Amec Foster Wheeler, burdened by high debt and heavy cash outflows. Its market capitalization had fallen to just £126 million before the suspension.

Shareholders are scheduled to vote later this month on the Sidara takeover proposal, which the board has recommended, saying alternative options would “likely generate materially less, and potentially zero, value for shareholders.” The latest offer is more than 80% lower than Sidara’s previous bids rejected last year.

In a statement accompanying the 2024 results, Chair Roy Franklin described the past year as “an incredibly challenging period” and expressed disappointment at the company’s position. He has announced plans to step down once the company’s future becomes clearer, while Chief Executive Ken Gilmartin, who has led the group since July 2022, is expected to depart following the shareholder vote on the Sidara deal.

More about Wood Group plc

Wood Group plc is a global engineering and consulting company providing project management, operations, and technical services to clients in the energy, industrial, and mining sectors. Headquartered in Aberdeen, Scotland, the company operates in more than 60 countries and employs approximately 35,000 people worldwide.

ITV plc (LSE:ITV) delivered better-than-expected results for the first nine months of 2025, supported by strong performance in ITV Studios and continued momentum in digital advertising. Despite a challenging UK advertising environment, the company’s diversified business model helped mitigate headwinds. ITV expects a decline in total advertising revenue in the fourth quarter due to ongoing economic uncertainty but has implemented £35 million in temporary cost savings to offset the impact. Management reaffirmed confidence in achieving full-year revenue growth targets, backed by disciplined cost control and a robust programming pipeline for the months ahead.

The company’s outlook remains balanced, with solid operational execution offset by pressures on revenue growth and cash flow. Technical analysis indicates bearish momentum in the short term, though the current valuation suggests the stock may be undervalued, supported by an attractive dividend yield.

More about ITV plc

ITV plc is a leading UK-based media and entertainment company engaged in television broadcasting, content production, and digital media. Through its ITV Studios division, the company produces and distributes content globally, while its broadcasting operations reach millions of viewers across the UK. ITV is also expanding its presence in digital advertising and streaming, aligning its strategy with changing audience behaviors and the evolving media landscape.

BT Group plc (LSE:BT.A) announced solid half-year results, showcasing continued progress in its strategic transformation and infrastructure rollout. The company achieved record growth in full fibre broadband and 5G coverage, with Openreach now passing more than 20 million premises across the UK. Despite challenges in its international and legacy operations, BT remains on track to meet its full-year financial targets, supported by ongoing cost efficiencies and higher dividend payouts. Its intensified focus on the UK market, network modernization, and improved customer experience are helping offset revenue pressures in other business segments.

The company’s outlook remains stable, underpinned by strong operational execution and positive commentary from its recent earnings call. While short-term technical indicators suggest a bearish trend, BT’s strategic initiatives and attractive dividend yield provide a balanced longer-term view. Risks remain linked to high leverage and slower revenue growth.

More about BT Group plc

BT Group plc is one of the UK’s leading telecommunications providers, offering broadband, mobile, and digital TV services. Through its Openreach division, the company is spearheading the nationwide rollout of full fibre broadband, while its EE network continues to expand 5G coverage across the country. BT’s strategy focuses on strengthening the UK’s digital infrastructure, enhancing service quality, and driving sustainable long-term growth.