ADVFN UK Market News

Category: Market News

  • AstraZeneca rebounds as report dismisses Bristol Myers Squibb takeover speculation

    AstraZeneca rebounds as report dismisses Bristol Myers Squibb takeover speculation

    AstraZeneca (LSE:AZN) shares recovered strongly on Wednesday after a Reuters report said there are “no discussions” with Bristol Myers Squibb (NYSE:BMY) over a possible merger, easing fears that had triggered one of the FTSE 100’s sharpest declines earlier this week.

    The rebound came after investors reacted negatively to reports suggesting the two pharmaceutical companies were exploring a deal that could have created one of the world’s largest drugmakers.

    Reuters source rejects merger claims

    According to Reuters, a senior source familiar with the situation said there are no negotiations taking place between AstraZeneca and Bristol Myers Squibb.

    “There is no deal between AstraZeneca and BMS. There never was a deal to be done, and there are no discussions between the companies,” the source told Reuters on Wednesday, speaking on condition of anonymity.

    The comments directly challenged market speculation that emerged after weekend reports suggesting the companies had explored a possible combination. Reuters had previously reported that preliminary discussions had taken place but said it was unclear whether they had continued.

    The clarification helped AstraZeneca recover part of Monday’s near-9% decline, its steepest one-day fall since 2020.

    Investors questioned the benefits of a deal

    Many analysts had struggled to identify a compelling strategic case for combining the two pharmaceutical groups.

    AstraZeneca, with a market value of roughly $264 billion, and Bristol Myers Squibb, valued at around $133 billion, would have created a company worth almost $400 billion. However, many in the market argued that AstraZeneca had little to gain from such a transaction.

    Jefferies described the reported proposal as “more than a head scratcher,” adding: “if there is one company that doesn’t need financial engineering, it’s AZ.”

    Markus Manns, portfolio manager at Union Investment, told Reuters that the proposed merger “does not make strategic or financial sense” and compared it to “the pharmaceutical industry’s equivalent of the FIFA privatisation moment.”

    UK shareholders remain focused on AstraZeneca’s standalone growth

    For many UK investors, AstraZeneca’s existing growth strategy already offers a clear long-term investment case without the risks associated with a mega-merger.

    Lucy Coutts, investment director at JM Finn, told Reuters that “the only advantage for AstraZeneca in this rumoured combination with BMS seems to be to accelerate its U.S. footprint and sales” and added that “BMS shareholders would be the winners of any combination with AZN.”

    That sentiment was reflected in Monday’s trading, when AstraZeneca was among the FTSE 100’s biggest fallers while Bristol Myers Squibb shares moved sharply higher in the United States.

    Regulatory obstacles would have been significant

    Even if discussions had progressed, analysts believe a transaction of this size would have faced substantial regulatory scrutiny.

    Both companies compete directly in key oncology markets through AstraZeneca’s Imfinzi and Bristol Myers Squibb’s Opdivo, while also marketing the only two approved anti-CTLA-4 cancer therapies.

    Competition experts have suggested that significant asset disposals would probably have been required before regulators would approve any merger.

    Strong fundamentals remain the key investment story

    The merger speculation has also overshadowed AstraZeneca’s recent operational performance.

    The company recently reported second-quarter earnings per share of $2.63, comfortably ahead of the $2.48 consensus estimate, while maintaining its ambition of generating $80 billion in annual revenue by 2030.

    Alongside its recent New York Stock Exchange listing and plans to invest $50 billion in U.S. research, manufacturing and development by 2030, AstraZeneca continues to pursue expansion through organic growth rather than transformational acquisitions.

    For UK investors, Wednesday’s recovery suggests the market is once again refocusing on the company’s long-term fundamentals rather than an acquisition that, according to Reuters’ latest report, was never under active discussion.

  • U.S. futures point higher as lower oil prices and earnings lift sentiment: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. futures point higher as lower oil prices and earnings lift sentiment: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. equity futures traded in positive territory on Wednesday, indicating another higher open as investors looked to build on the recent rally that has carried the Dow Jones Industrial Average and the S&P 500 to fresh all-time closing highs.

    Confidence remained supported by easing energy prices and expectations that diplomatic negotiations could soon lead to the reopening of the Strait of Hormuz.

    Oil retreat continues to underpin markets

    The recent advance in U.S. equities has coincided with a sharp fall in crude oil prices, which have dropped by more than 10% over the past two sessions.

    Although oil prices edged higher during Wednesday’s trading, market participants continued to focus on reports suggesting the United States and Iran are moving closer to an agreement that would restore shipping through the strategically important Strait of Hormuz.

    Disney boosts pre-market sentiment

    Corporate earnings remained another source of support for the market.

    Disney (NYSE:DIS) gained more than 3% in pre-market trading after reporting fiscal third-quarter results that surpassed analyst expectations, adding to the positive tone created by the latest earnings season.

    Record highs extend across Wall Street

    Stocks posted another powerful advance on Tuesday, with all three major U.S. indices finishing comfortably higher.

    The Dow Jones Industrial Average climbed 907.47 points, or 1.7%, to a record close of 54,085.88.

    The Nasdaq Composite advanced 671.10 points, or 2.6%, ending at 26,584.99, while the S&P 500 rose 136.02 points, or 1.8%, to a new record of 7,736.52.

    Although the major averages gave back part of their intraday gains before the close, investor appetite remained strong.

    Palantir and lower oil prices drive momentum

    Wall Street also benefited from another steep decline in oil prices. U.S. crude futures dropped 5.7% on Tuesday after losing more than 5% in the previous session.

    Prices reversed lower after U.S. Treasury Secretary Scott Bessent said an agreement between Washington and Tehran to reopen the Strait of Hormuz could be reached within days.

    Technology stocks also outperformed after Palantir (NASDAQ:PLTR) reported quarterly results that exceeded expectations and lifted its full-year guidance, sending the shares almost 30% higher.

  • European shares edge higher after reaching record levels: DAX, CAC, FTSE100

    European shares edge higher after reaching record levels: DAX, CAC, FTSE100

    European equity markets traded modestly higher on Wednesday after closing at fresh record highs in the previous session, supported by another round of encouraging corporate earnings and continued optimism surrounding negotiations between the United States and Iran over reopening the Strait of Hormuz.

    Britain’s FTSE 100 gained 0.5%, Germany’s DAX added 0.2%, while France’s CAC 40 advanced 0.1%.

    Corporate earnings remain the main market driver

    Among individual stocks, Ibstock (LSE:IBST) declined 2.4% after the building materials group reported lower first-half revenue and indicated that full-year 2026 profit is likely to come in at the lower end of its guidance range.

    Glencore (LSE:GLEN) climbed 3.3% after stronger commodity prices helped the mining and trading group deliver a sharp increase in first-half earnings.

    Next (LSE:NXT) rallied 6.5% after upgrading its earnings outlook for the third time during the current financial year.

    Coca-Cola HBC (LSE:CCH) gained 4% after improving its full-year profit forecast following another solid set of results.

    Sandoz (LSE:0SAN) jumped almost 8% after reporting second-quarter net sales growth of 9%, comfortably ahead of market expectations.

    Mixed performance across healthcare and industrials

    Novo Nordisk (NYSE:NVO) fell 3.7% after announcing that one of its experimental medicines failed to reduce the risk of heart attack or stroke in a late-stage clinical study.

    Schaeffler (TG:SHA0) advanced 1.3%. The German automotive and industrial supplier reported second-quarter profit broadly in line with expectations and unveiled plans to reduce its domestic workforce through an expanded phased-retirement programme.

    Infineon Technologies (TG:IFX) dropped nearly 6%, despite reporting record quarterly revenue and raising both its full-year revenue forecast and adjusted free cash flow guidance.

    Siemens Energy (TG:SIE) added 1.2% after announcing record third-quarter sales, margins and order intake.

    Heineken extends gains after strong results

    Heineken (EU:HEIA) rose 2.5% after the Dutch brewer posted stronger-than-expected first-half profit and reaffirmed its earnings outlook for the full year.

  • Gold advances as easing Middle East tensions weaken dollar and rate expectations

    Gold advances as easing Middle East tensions weaken dollar and rate expectations

    Gold prices rose sharply on Wednesday, with futures moving above $4,200 an ounce after improving prospects for an agreement to reopen the Strait of Hormuz reduced inflation concerns and prompted investors to reassess the outlook for US interest rates.

    At 02:07 ET (06:07 GMT), spot gold (XAU/USD) gained 2.1% to $4,162.79 per ounce, while Gold Futures climbed 1.7% to $4,222.92. Silver (XAG/USD) rallied 3.2% to $61.45 per ounce and platinum (XPT/USD) advanced 1.8% to $1,768.95.

    Expectations of lower energy costs lift precious metals

    Bullion extended its recent recovery as diplomatic efforts surrounding the Strait of Hormuz continued to gain momentum, reducing fears that prolonged disruptions to global energy supplies would keep inflation elevated.

    Officials in Qatar confirmed that mediators had prepared a draft agreement aimed at restoring commercial shipping through the strategic waterway. Meanwhile, Axios reported that the United States, Iran and Oman were nearing an interim deal that US officials hoped to announce as early as Wednesday.

    US Treasury Secretary Scott Bessent added to the positive sentiment by saying an agreement could be reached as soon as Tuesday or Wednesday.

    The prospect of easing oil prices encouraged markets to reduce expectations for additional Federal Reserve tightening. Investors are now pricing in only one US rate increase before year-end, compared with expectations for two hikes just one week earlier.

    A softer US dollar also supported demand for bullion by making precious metals more affordable for buyers using other currencies.

    Federal Reserve outlook and Chinese buying remain key drivers

    Gold has declined by more than 20% since the US-Iran conflict intensified in late February, when higher oil prices fuelled inflation concerns and strengthened expectations that interest rates would remain elevated.

    Although the Federal Reserve left borrowing costs unchanged for a fifth straight meeting last week, three policymakers voted in favour of raising rates.

    Philadelphia Federal Reserve President Anna Paulson said she remains “open-minded” about the future direction of monetary policy as officials continue to evaluate incoming economic data.

    Kansas City Federal Reserve President Jeff Schmid also warned that higher interest rates could still be required to restore price stability, cautioning against assuming inflation generated by supply disruptions would fade quickly.

    At the same time, investment demand from China continued to support the market. Bloomberg data showed Chinese gold-backed exchange-traded funds recorded inflows for a fourteenth consecutive trading session through Monday, marking their longest run since March.

    The steady buying has helped gold remain comfortably above the important $4,000-an-ounce threshold, despite lingering uncertainty surrounding the Federal Reserve’s next policy moves.

  • Oil prices extend decline as traders monitor U.S.-Iran diplomatic progress

    Oil prices extend decline as traders monitor U.S.-Iran diplomatic progress

    Crude oil prices moved lower for a third consecutive session on Wednesday as growing expectations of a temporary agreement between the United States and Iran eased concerns over potential supply disruptions through the Strait of Hormuz.

    At 02:56 ET (06:56 GMT), October Brent crude futures were down 0.5% at $79.00 per barrel, while September West Texas Intermediate (WTI) futures fell 0.7% to $75.27 per barrel.

    The latest declines followed Tuesday’s sell-off, when both international benchmarks dropped by more than 5%.

    Hormuz negotiations remain the key market driver

    Reports from Axios indicated that the United States, Iran and Oman are close to finalising an interim arrangement aimed at restoring commercial shipping through the Strait of Hormuz, with Washington hoping to unveil the agreement on Wednesday.

    However, Iranian media said Tehran believes reopening the strategic waterway will be postponed while the United States continues to issue threats.

    Qatari officials also confirmed that mediators have prepared a draft proposal designed to bridge the remaining differences between the two countries.

    According to Qatar’s government, US President Donald Trump discussed regional de-escalation efforts during a telephone conversation with Emir Sheikh Tamim bin Hamad Al-Thani.

    If implemented, the proposal would reopen one of the world’s most important energy corridors, through which roughly 20% of global oil and liquefied natural gas shipments normally pass.

    The diplomatic push follows recent comments from Trump, who said negotiations with Iran had begun and that Tehran had a “last chance” to reach an agreement.

    Iran has continued to reject claims that formal talks are underway, leaving uncertainty over whether an agreement can ultimately be reached.

    Inventory build and security concerns keep traders cautious

    Despite improving diplomatic sentiment, supply risks have not disappeared.

    Another merchant vessel reportedly came under attack near the Strait of Hormuz on Tuesday, highlighting the ongoing security challenges facing the region.

    Meanwhile, fresh inventory figures from the American Petroleum Institute (API) showed US crude stockpiles increased by 2.69 million barrels during the week ended 31 July, surprising analysts who had forecast a decline of around 2 million barrels.

    Attention now turns to the official US Energy Information Administration (EIA) report, which investors will watch closely for confirmation of the inventory data.

  • European gas prices remain near three-week lows as supply concerns persist

    European gas prices remain near three-week lows as supply concerns persist

    European natural gas prices held close to their lowest levels in three weeks on Wednesday as traders assessed improving diplomatic developments in the Middle East while remaining mindful of Europe’s tight storage levels and continuing disruptions to shipping through the Strait of Hormuz.

    Dutch front-month gas futures, the European benchmark, and equivalent UK natural gas contracts traded little changed after falling to multi-week lows in the previous session. The market has stabilised following two volatile trading days during which investors weighed conflicting signals over future energy supplies.

    Diplomatic progress eases geopolitical risk

    Market sentiment has improved after reports from regional mediators suggested negotiations between the United States and Iran are moving closer to a draft agreement designed to safeguard commercial shipping through the Persian Gulf.

    The prospect of lower geopolitical tensions has helped reverse part of the sharp increase in European gas prices seen late last month.

    Even so, traders believe the market remains supported by broader supply issues that continue to limit downside potential.

    Shipping disruptions continue to pressure supply

    Although diplomatic negotiations appear to be advancing, liquefied natural gas (LNG) shipments through the Strait of Hormuz remain well below normal levels, slowing deliveries from major exporters such as Qatar.

    The disruption to shipping has added to the challenge facing Europe as it seeks to rebuild gas inventories before winter.

    Gas storage facilities across the European Union are currently around 55% to 57% full, representing the weakest seasonal position for this time of year in almost 20 years and remaining well below the five-year average.

    At the same time, unusually high summer temperatures across central and southern Europe have increased electricity demand for air conditioning, placing additional pressure on gas supplies.

    LNG competition expected to keep prices supported

    European utilities continue to compete with Asian buyers for available spot LNG cargoes, limiting the availability of additional supplies.

    As a result, analysts expect European gas prices to remain relatively well supported, with the market likely to remain highly responsive to any setbacks or delays in negotiations affecting Middle East energy exports.

  • Wall Street futures edge higher as investors assess Middle East developments and major earnings: Dow Jones, S&P, Nasdaq

    Wall Street futures edge higher as investors assess Middle East developments and major earnings: Dow Jones, S&P, Nasdaq

    US equity futures traded modestly higher on Wednesday as investors balanced signs of diplomatic progress in the Middle East against a fresh round of high-profile corporate earnings. Reports from SpaceX (NASDAQ:SPCX), Advanced Micro Devices (NASDAQ:AMD) and Novo Nordisk (NYSE:NVO) dominated pre-market trading.

    While hopes of easing geopolitical tensions supported broader sentiment, several individual stocks experienced sharp moves following earnings announcements and executive commentary.

    Markets gain on hopes of a breakthrough over the Strait of Hormuz

    At 03:09 ET (07:09 GMT), futures on the Dow Jones Industrial Average rose 156 points, or 0.3%. S&P 500 futures added 0.4%, while Nasdaq 100 futures advanced 0.3%.

    Wall Street ended the previous session in positive territory after US Treasury Secretary Scott Bessent indicated that negotiations with Iran over reopening the Strait of Hormuz could soon produce an agreement. Officials in Qatar also pointed to encouraging progress in regional talks.

    Lower crude prices added further support by reducing concerns that energy costs could reignite inflationary pressures or force central banks to maintain higher interest rates for longer. Treasury yields also moved lower before comments from Kansas City Federal Reserve President Jeffrey Schmid, who said inflation would require “tighter policy” before returning to the Fed’s 2% target.

    Corporate earnings continued to underpin investor confidence. Palantir (NASDAQ:PLTR) surged almost 30% after lifting its annual revenue forecast, with Chief Executive Alex Karp describing quarterly sales growth as “otherworldly.” Snap (NYSE:SNAP) also rallied after narrowing its quarterly loss, while Caterpillar (NYSE:CAT) climbed more than 5% after raising its sales outlook for 2026.

    According to Deutsche Bank, investors also continued rotating back into semiconductor and AI infrastructure stocks, becoming “increasingly willing to lean back into the capex theme that looked under pressure” during July’s market volatility.

    Trump says negotiations with Iran are progressing

    US President Donald Trump said talks between Washington and Tehran had been “very good,” fuelling speculation that a resolution to months of tensions in the Gulf may be approaching.

    Speaking with Fox News, Trump said the Strait of Hormuz would be “open very soon” and warned that Iran would “get hit really hard” if it abandoned a potential agreement.

    Despite the encouraging rhetoric, analysts cautioned that investors remain wary after several previous rounds of negotiations failed to deliver lasting results.

    “Markets have seen plenty of false dawns throughout this conflict, so plenty of attention will be on whether a deal is announced imminently and its details,” Deutsche Bank analysts said.

    Brent crude later recovered to trade around 0.8% higher at $80.01 per barrel after falling below the $80 mark in the previous session.

    Heavy investment overshadows strong SpaceX revenue growth

    SpaceX shares fell more than 7% in extended trading despite reporting a sharp increase in quarterly revenue.

    The aerospace and satellite communications company generated second-quarter revenue of $7.8 billion, up 92% year-on-year, while narrowing its net loss. However, investors focused on the company’s heavy investment programme, which pushed free cash flow further into negative territory.

    Capital expenditure reached $18.36 billion during the quarter, including $15.8 billion invested in the company’s artificial intelligence operations. Meanwhile, revenue from Starlink increased 66% to $4.3 billion as subscriber numbers doubled.

    Chief Executive Elon Musk reiterated his long-term ambitions, saying the company ultimately aims to generate $1 trillion in annual revenue and suggesting orbital data centres could become a reality next year.

    “[T]he revenue and EBITDA results are great, but the cash flow numbers are pretty ugly,” analysts at Vital Knowledge said.

    Musk comments weigh on AMD despite record performance

    Advanced Micro Devices shares also moved lower after Musk announced that SpaceX would rely exclusively on Nvidia’s Blackwell AI platform rather than purchasing AMD processors.

    He described Nvidia as offering the “best architecture” and confirmed that SpaceX would “build exclusively” using its technology.

    The announcement overshadowed another record quarter for AMD.

    The semiconductor manufacturer reported revenue of $11.5 billion for the quarter ended 27 June, slightly exceeding analyst expectations and marking its fifth consecutive quarter of record sales.

    Revenue from AMD’s data centre division climbed to a record $6.7 billion, accounting for 58% of total company revenue compared with 42% a year earlier, underscoring continued growth in AI infrastructure demand.

    Novo Nordisk disappoints despite improving guidance

    Novo Nordisk (NYSE:NVO) raised its full-year outlook, forecasting a smaller decline in sales and operating profit than previously expected as demand for its obesity treatments remained resilient.

    However, the company’s shares declined after sales of the oral version of Wegovy came in below market forecasts and an experimental next-generation weight-loss treatment delivered disappointing clinical trial data.

    Novo Nordisk now expects adjusted sales and operating profit to decline by up to 6% at constant exchange rates, improving on its earlier guidance for declines of between 4% and 12%.

    Second-quarter sales of oral Wegovy totalled 3.2 billion Danish kroner, missing analyst estimates of 3.3 billion kroner, while injectable Wegovy generated revenue of 19.48 billion kroner.

  • European shares remain close to record highs as earnings support investor confidence: DAX, CAC, FTSE100

    European shares remain close to record highs as earnings support investor confidence: DAX, CAC, FTSE100

    European stock markets traded near historic highs as another round of encouraging corporate earnings helped offset geopolitical uncertainty and mixed economic data. Lower oil prices also provided additional support, improving overall market sentiment.

    The STOXX 600 advanced 0.4%, remaining close to record territory as upbeat quarterly results from companies across the healthcare, industrial and logistics sectors reinforced confidence among investors.

    Germany’s DAX gained 0.5%, France’s CAC 40 edged 0.1% higher and London’s FTSE 100 added 0.4%.

    Falling oil prices and diplomatic progress improve market mood

    Energy markets also contributed to the positive tone, with Brent crude declining 1.4%, easing concerns over inflation and helping to reduce pressure on government bond yields.

    Investors also welcomed reports of gradual diplomatic progress in the Middle East. Officials in Qatar said mediators continued to move forward in discussions aimed at easing tensions between the United States and Iran, although no detailed agreement has yet been made public.

    Despite continued geopolitical uncertainty, solid corporate earnings and improved business outlooks remain the main drivers of European equity markets. Strong performances from sectors such as pharmaceuticals and energy infrastructure have encouraged investors to maintain exposure to equities.

    Company earnings dominate trading

    Corporate earnings remained the principal catalyst across European markets.

    Novo Nordisk A/S (TG:NOV) raised its full-year sales and profit forecasts as demand for its GLP-1 diabetes and weight-loss treatments remained strong worldwide. Despite the improved guidance, the company’s shares fell 3.4%.

    Siemens Energy AG (TG:SIE) jumped 5% after reporting third-quarter profit ahead of expectations, benefiting from robust demand for power grid equipment driven by the expansion of artificial intelligence data centres.

    DHL Group (TG:DHL) declined 1.7%, even after delivering second-quarter earnings above market forecasts and expanding its share buyback programme.

    Heineken NV (EU:HEIA) gained 2.5% after first-half operating profit increased, supported by cost-saving measures, including approximately 3,000 job reductions, which helped offset weaker sales volumes in some markets.

    Semiconductor sector remains in focus

    Technology stocks also attracted attention after Reuters reported that South Korean memory chip manufacturers SK Hynix Inc. (NASDAQ:SKHY) and Samsung Electronics Co. (USOTC:SSNHZ) are assessing semiconductor manufacturing equipment produced by China’s Advanced Micro Fabrication Equipment Inc., highlighting continued changes across global semiconductor supply chains.

    Infineon Technologies (TG:IFX) fell 2.5% following the release of its third-quarter results.

    Investors are now looking ahead to the release of the US ADP private payrolls report for July, which is expected to provide further insight into labour market conditions ahead of Friday’s closely watched nonfarm payrolls data.

  • Europe’s established technology leaders are finding new momentum from AI

    Europe’s established technology leaders are finding new momentum from AI

    Artificial intelligence was widely expected to create the biggest opportunities for the companies developing the underlying models. However, recent corporate results indicate that some of Europe’s long-established technology businesses are becoming major beneficiaries as enterprises accelerate AI adoption.

    Companies including SAP (TG:SAP), Capgemini (EU:CAP), Sopra Steria (EU:SOP) and OVHcloud (EU:OVH) have all reported improving demand, stronger financial performance or more optimistic guidance as businesses shift from AI experimentation to large-scale implementation.

    Integration is becoming the real AI challenge

    As organisations expand their use of artificial intelligence, they are discovering that integrating AI into existing systems is proving far more difficult than simply accessing the technology itself.

    Rather than depending on a single AI platform, many companies are expected to combine multiple models, selecting different solutions according to performance, security and regulatory requirements. As a result, the key challenge is no longer choosing the best model, but ensuring AI works seamlessly alongside existing software, corporate data and established business processes.

    “AI applications are the battleground, and that is where most value will be created,” UBS said in a recent note.

    This trend favours Europe’s established software providers, consulting firms and cloud infrastructure companies, whose expertise has long centred on integrating complex enterprise technologies.

    Legacy systems create opportunities for technology specialists

    Most large organisations operate with decades-old software, fragmented databases and heavily customised applications. Introducing AI into these environments requires systems that can securely access live company data, comply with governance rules, maintain audit trails and integrate into existing employee workflows.

    Managing this complexity is becoming one of the biggest barriers to wider AI deployment. According to Boston Consulting Group, AI implementation is advancing faster than companies’ ability to manage it effectively, with more than 70% of investors expressing concern over whether businesses possess the technical and operational capabilities needed to succeed.

    As deployment accelerates, spending is increasingly shifting towards implementation, systems integration and governance rather than simply purchasing AI models.

    Enterprise software groups benefit from growing investment

    SAP reported a 26% increase in its cloud backlog at constant currencies to €22.9 billion as customers continued migrating finance, procurement, supply chain and human resources systems onto cloud platforms that increasingly support AI applications.

    Its acquisitions of data specialist Dremio and AI company Prior Labs further demonstrate the importance of preparing enterprise data for AI-driven workflows.

    Capgemini increased its annual growth guidance after bookings rose 9.2%, while Sopra Steria upgraded its outlook following organic growth of 5.3%.

    Both companies are benefiting from demand for AI implementation services, including workflow integration, data management and governance frameworks.

    These capabilities are particularly valuable in industries such as defence, aerospace, healthcare and critical infrastructure, where AI solutions must operate within highly specialised software environments and strict regulatory controls.

    European AI infrastructure gains strategic importance

    A second development is strengthening the position of Europe’s established technology providers: customers increasingly want greater control over how AI is deployed.

    Publicis Chief Executive Arthur Sadoun has said clients increasingly want advanced AI models operating within environments where they retain control over their technology and their data.

    This preference is particularly evident in defence, aerospace and critical infrastructure, where sovereignty, cybersecurity and regulatory compliance are major priorities.

    Airbus (EU:AIR) recently selected Scaleway, owned by French telecommunications group Iliad, alongside AI technology developed with Mistral for sensitive industrial and defence workloads. Around 70 critical Airbus applications are expected to operate on Scaleway by the end of 2028.

    Meanwhile, OVHcloud reported 20.2% growth in public cloud revenue during its third quarter, suggesting rising demand for European-based AI infrastructure that is not subject to extraterritorial legislation such as the U.S. Cloud Act.

    AI’s biggest winners may extend beyond model developers

    Europe’s established technology companies must still demonstrate that AI-related demand can remain durable and that profitability can withstand increasing automation of lower-value consulting and software services.

    Even so, recent earnings suggest the benefits of artificial intelligence are spreading well beyond companies building foundation models. Increasingly, the biggest opportunities may lie with businesses that enable AI to function effectively inside large, complex organisations.

  • FTSE 100 advances as progress on Iran-US Hormuz agreement boosts sentiment

    FTSE 100 advances as progress on Iran-US Hormuz agreement boosts sentiment

    UK equities moved higher on Tuesday after reports suggested the United States, Iran and Oman were close to reaching an interim agreement that would reopen the Strait of Hormuz, easing concerns over disruption to global energy supplies and reducing fears of a broader regional conflict.

    By 03:14 ET (07:14 GMT), the FTSE 100 had climbed 0.41%. Germany’s DAX gained 0.49%, while France’s CAC 40 added 0.12%. Sterling also strengthened, rising 0.08% against the US dollar to 1.3460.

    According to Axios, citing a US official and a regional source, Iran’s leadership has completed its internal approval process, bringing Washington, Tehran and Muscat closer to announcing a 60-day interim agreement.

    US President Donald Trump told Fox News that the strait would reopen “very soon,” adding that Iran would be “hit really hard” if it failed to honour the arrangement.

    The proposed framework, according to Axios citing two regional sources and a US official, would route inbound Gulf shipping through a northern corridor in Iranian waters and outbound traffic through a southern route in Omani waters. No transit fees would apply during the temporary agreement, while naval mines in the central shipping lane would be cleared within 30 days. Qatar, Pakistan and Saudi Arabia are also involved in the mediation efforts.

    Separately, US Central Command (CENTCOM) said the southern shipping lane through the Strait of Hormuz “remains free and open” and confirmed that US forces have escorted more than 1,000 vessels through the route over the past three months despite “unwarranted Iranian aggression.”

    In commodity markets, Brent crude rose 0.77% to $79.97 a barrel, while US West Texas Intermediate crude edged 0.07% higher to $75.83. Gold also advanced, with futures climbing 1.8% to $4,226.51 an ounce and spot gold gaining 2.2% to $4,166.96.

    UK corporate highlights

    • Hiscox (LSE:HSX) increased its retail growth guidance after reporting a 10.1% rise in first-half insurance premiums.
    • Beazley (LSE:BEZ) reported that first-half profit more than halved as elevated claims and softer market conditions weighed on earnings.
    • Glencore (LSE:GLEN) posted a strong increase in first-half earnings, supported by its trading division, and confirmed plans to pursue an Australian stock market listing.
    • Next (LSE:NXT) upgraded its full-year profit forecast after stronger-than-expected sales growth during the latest quarter.