Category: Market News

Wizz Air (LSE:WIZZ) plans to have its entire Airbus (EU:AIR) fleet back in service by the end of 2027, as the airline continues to grapple with ongoing engine-related groundings, according to Chief Financial Officer Ian Malin, who spoke on Tuesday.

During the International Society of Transport Aircraft Trading (ISTAT) conference in Prague, Malin said that 38 aircraft remain grounded due to lengthy inspection delays, down from a peak of nearly 60. This marks a modest improvement compared with the 41 aircraft grounded at midyear as a result of Pratt & Whitney (NYSE:RTX) GTF engine inspections.

“Overall, the plan right now is to get the entire fleet unparked by the end of calendar year 2027. That is the target that we’re working towards,” Malin stated at the conference.

The CFO cautioned, however, that achieving this goal will not be easy, saying: “That will be challenging, especially when we’re sitting here with 38 aircraft on the ground.”

Malin also noted that supply chain bottlenecks at Pratt & Whitney persist, with no visible improvement yet, continuing to hinder the airline’s efforts to return grounded jets to operation.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

France has lowered its 2025 wine production estimate to 36.0 million hectolitres, down from the 37.4 million hectolitres forecast a month earlier, the French Agriculture Ministry said on Tuesday.

The revised outlook marks a 1% decline compared to last year’s harvest and is 16% below the five-year average, reflecting the continued challenges facing the country’s vineyards.

Officials attributed the downgrade primarily to the severe heatwave that struck in August, which affected grape yields and quality in several key wine-producing regions. The new estimate is based on updated harvest data collected nationwide, incorporating the latest reports from growers and regional cooperatives.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Renault Group (EU:RNO) expects its third-quarter retail sales to rise by a high single-digit percentage year-on-year, with September performance matching July–August growth of 9%, according to Investor Relations head Florent Chaix, speaking during a preview call ahead of the company’s October 23 revenue announcement.

The Dacia brand continues to outperform, supported by robust demand for the Bigster, which has accumulated 50,000 orders and now ranks as the second-best-selling C-segment SUV in Europe. Over 80% of Bigster orders are for high-trim versions, and more than half are hybrid models. Meanwhile, the Renault 5 remains the leader in the B-segment EV market, while production of the Renault 4 is set to ramp up in the fourth quarter.

Geographically, Germany, Spain, and the UK are leading growth in passenger car sales, while Italy remains weaker. Dacia continues to outperform across the EU, with additional momentum in Turkey, Romania, and Argentina.

Despite these solid retail trends, a greater destocking of independent dealers compared with Q3 2024 (down 72,000 units) will temporarily weigh on volume figures. However, Renault still expects positive volume contributions in both Q3 and Q4, supported by healthy inventories and a year-over-year increase in orders.

The company projects a foreign exchange headwind of over 1% for Q3 — a greater impact than in the first half of the year. The product mix remains favorable but less pronounced, while the geographic mix is slightly positive. The European market remains competitive, resulting in modestly negative pricing.

Sales to partners continue to perform well, and the “Other” segment should remain slightly positive, albeit well below last year’s 5-point contribution. Financial services are maintaining strong double-digit growth, in line with the first half, and mobility services have more than doubled.

Looking ahead, Renault anticipates a robust fourth quarter, underpinned by its strong order book and new model launches, with no plans to pursue discount-driven sales. The company has moderated some Q3 production, while keeping high utilization rates. Renault reaffirmed its operating margin target of 6.5% and expects positive working capital in H2, although it remains negative for the full year.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

 Shares of Ocado Group Plc (LSE:OCDO) dropped on Tuesday after Morgan Stanley lowered its price target by 19% to 170p from 210p, while maintaining an “underweight” rating on the stock. The investment bank warned of “increased execution risk” in the company’s automated warehouse operations, citing rising uncertainty around its U.S. partnership with Kroger (NYSE:KR).

In a bearish note, the brokerage said that recent developments suggest Kroger “is pivoting toward the use of food delivery aggregators, namely Instacart, to service demand in a more asset-light fashion, focusing on sub-one-hour delivery.” The shift could reduce Kroger’s reliance on Ocado’s large-scale customer fulfilment centres (CFCs).

Morgan Stanley now expects two CFC closures in fiscal 2026, potentially in Florida and Maryland, and forecasts that the remaining facilities will have shorter operating lives of about 15 years, compared with 30 years in previous assumptions. As a result, the bank cut the number of CFCs in Ocado’s valuation model from 36 to 30, assigning each a net present value of £54 million.

The report estimates that Ocado could receive £17 million in exit fees per closed CFC, or roughly £34 million in additional revenue in 2026. However, it projects a 5% decline in total group revenue in 2027, along with an 8% year-on-year fall in adjusted EBITDA.

Morgan Stanley forecasts group revenue to reach £1.34 billion in 2025, rising to £1.45 billion in 2026, and £1.51 billion in 2027. Adjusted EBITDA is expected to grow from £177 million in 2025 to £253 million in 2026, before easing to £280 million the following year. Meanwhile, net debt is projected to widen from £1.43 billion in 2024 to £1.63 billion in 2025.

The bank also anticipates that Ocado will remain free cash flow negative until 2029, lagging behind the company’s own projection of breaking even in the second half of 2026.

Morgan Stanley added that “the value and payback period of each CFC for Ocado and its customers remains unclear,” and that “we see increased execution risk on the CFC pipeline over the long term.”

In its risk-reward analysis, the bank set a bull case of 610p per share, assuming faster contract wins and stronger profitability, and a bear case of 100p, reflecting the absence of new deals and possible client exits. The base case valuation of 170p implies an enterprise value of £2.47 billion, including £1.62 billion attributed to Ocado’s Solutions division, £370 million to logistics, and £391 million to its retail joint venture with Marks & Spencer.

Ocado shares closed at 232p on October 3, within a 52-week range of 411p to 217p, giving the company a market capitalization of £1.9 billion.

The downgrade follows previous Morgan Stanley assessments that described Ocado’s business model as “still unproven”, citing limited visibility into long-term profitability.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The euro edged lower against the U.S. dollar on Tuesday as markets digested the escalating political crisis in France, while the yen dropped to a two-month low amid speculation over who will join Sanae Takaichi’s cabinet following her recent election as leader of Japan’s ruling party.

In France, two days of urgent negotiations between outgoing Prime Minister Sébastien Lecornu and representatives of various political factions were set to begin Tuesday. However, it remained unclear what role Lecornu—who unexpectedly resigned on Monday—will play in the discussions.

The political upheaval has left France, one of Europe’s biggest economies, facing renewed instability. Lecornu’s government, which was formed only in September under President Emmanuel Macron, collapsed after both allies and opponents rejected his cabinet picks on Sunday evening, making it the shortest-lived administration in modern French history.

By 04:49 ET (08:49 GMT), the euro was down 0.4% at $1.1668, as traders also looked to comments from European Central Bank officials keeping open the door to possible future rate cuts.

Attention is also turning to Federal Reserve policymakers, though analysts say the extended U.S. government shutdown has delayed key data releases, leaving little room for a change in interest rate expectations. The Fed is widely expected to cut rates by 25 basis points later this month after already lowering them in September, according to the CME FedWatch Tool.

The U.S. Dollar Index, which tracks the greenback against a basket of major currencies, rose 0.3% after modest gains on Monday. Analysts at ING said the release of the Fed’s September meeting minutes, due on Wednesday, could have “the greatest market impact potential” this week.

Yen weakens further as Takaichi victory shifts outlook

The Japanese yen extended losses against the dollar, with USD/JPY climbing 0.3% to 150.81. The pair had already surged nearly 2% on Monday, following Takaichi’s victory in the Liberal Democratic Party leadership race, which clears the way for her to become Japan’s next prime minister.

Known for advocating aggressive fiscal stimulus, Takaichi has previously criticized the Bank of Japan’s rate hikes as “stupid” and expressed support for looser monetary policy.

Following her win, investors quickly scaled back expectations for additional tightening from the central bank.

“Her election was somewhat of a surprise, and the yen’s 2% drop versus USD is a testament to that,” analysts at ING wrote in a note.

However, they added that they see limited upside for USD/JPY, arguing that a weaker yen could exacerbate inflationary pressures and strain relations with Washington. The analysts expect a break above 150 to be temporary, rather than the beginning of a sustained rally.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Once again, Democrats and Republicans failed to reach a funding agreement, and on October 1, the U.S. entered its fourth government shutdown under Donald Trump. Six days have passed, and negotiations are still at a standstill. Even so, the markets continue to behave as if nothing had happened. Why?

First, although federal spending equals to nearly a quarter of gross domestic product, at 23% in 2024, only discretionary spending, such as national parks and museums run by the federal government, stops during a shutdown. Mandatory spending, such as Medicare, continues automatically under existing legislation.

The direct impact is also relatively small in economic terms. Goldman Sachs estimated in 2023 that federal employee salaries, typically most affected during shutdowns, account for only about 2% of GDP. Also, about 65% of federal employees continue to report to work because their positions are considered essential.

As of now, it is estimated that the economy could lose around $15 billion per week as a result. However, that is pocket change compared to a GDP of over $30 trillion. Hence, the stock market’s muted reaction: the initial drop in S&P 500 futures quickly recovered, as is usually the case during previous shutdowns.

On the other hand, if the shutdown continues, it could begin to affect the labor market, but it could also push the Federal Reserve toward a more dovish stance. In fact, according to the CME FedWatch tool, the odds of another 25 basis point rate cut at the October meeting have already risen to 95%.

Gold could also benefit from the partial shutdown of the US government. Historically, the dollar tends to weaken slightly after the start of a shutdown, and interruptions in the release of key economic data only increase uncertainty, an environment in which defensive assets such as gold tend to thrive.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

PRS REIT (LSE:PRSR) announced a solid performance for the financial year ended June 30, 2025, with net rental income rising 13% to £53.3 million and net tangible asset value (NTA) increasing 7% to 143p per share.

The company successfully completed its construction program, delivering the final 82 homes and bringing its total portfolio to 5,478 completed properties. The portfolio’s estimated annual rental value now stands at £72 million, marking the full transition from development to income generation.

Adjusted EPRA earnings per share climbed 19% to 4.4p, narrowly exceeding the dividend payout of 4.3p, which equates to a 3.8% yield. PRS REIT also guided for a 2026 dividend of 4.5p per share, reflecting confidence in sustained income growth.

Operational performance remained robust, with rent collection near 100%, occupancy at 96%, and like-for-like rental growth of around 9%. The gross-to-net ratio held steady at 20%, underscoring efficient property management.

Financially, the group strengthened its balance sheet, reducing its loan-to-value ratio to 35%. The average borrowing cost stood at 3.8% over a 14-year term, comfortably below the average net investment yield of 4.66%, supporting a healthy interest coverage profile.

As announced on September 17, 2025, PRS REIT has entered into non-binding heads of terms for the proposed sale of its portfolio to Waypoint Asset Management Limited. The expected net proceeds, after expenses and taxes, are estimated at £633.2 million.

At the current share price of 112p, the stock trades at a 19% discount to its net tangible asset value, which totaled £785 million at the end of the fiscal year.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European equities were little changed on Tuesday, as gains in energy and luxury shares balanced losses in healthcare and industrial sectors, while French markets steadied following a politically turbulent start to the week.

By 07:13 GMT, the pan-European STOXX 600 hovered near 570.2 points, showing minimal movement. French stocks also traded flat after Monday’s sharp selloff triggered by Prime Minister Sébastien Lecornu’s sudden resignation.

The outgoing premier began two days of urgent talks on Tuesday with lawmakers from different parties in a bid to form a new governing majority.

Healthcare shares were among the weakest performers, slipping 0.6%, as Germany’s Bayer (TG:BAYN) and Denmark’s Novo Nordisk (NYSE:NVO) both lost about 2%.

Defence contractors also weighed on sentiment, with Rheinmetall (TG:RHM) and BAE Systems (LSE:BA.) each down roughly 1%, pulling the broader index slightly lower.

In contrast, oil and gas stocks advanced, buoyed by a 1.9% rise in Shell (LSE:SHEL) after the energy giant projected stronger liquefied natural gas output and improved gas trading results for the third quarter.

Luxury names outperformed as Morgan Stanley upgraded its stance on LVMH (EU:MC) and Kering (EU:KER) to “overweight” from “equal weight”, lifting their shares by 1.8% and 2.2%, respectively.

Among notable movers, B&M (LSE:BME) plunged around 15% after the discount retailer forecast a 28% drop in first-half core earnings and signaled a weaker annual profit outlook.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock futures edged lower on Tuesday, with sentiment weighed down by the ongoing federal government shutdown, which has dulled enthusiasm generated by recent dealmaking in the artificial intelligence sector. Attention is turning to Tesla’s potential unveiling of a lower-priced Model Y, Dell’s closely watched analyst day, and Constellation Brands’ better-than-expected earnings.

Futures drift lower

By 02:57 ET, Dow futures were down 101 points (0.2%), while S&P 500 futures slipped 9 points (0.1%) and Nasdaq 100 futures eased 28 points (0.1%).

Both the S&P 500 and the Nasdaq Composite closed at fresh record highs in the previous session, fueled largely by news of a deal between Advanced Micro Devices (NASDAQ:AMD) and OpenAI. Under the agreement, AMD will supply AI chips to OpenAI in exchange for a 10% stake in the ChatGPT developer — a partnership that could generate tens of billions in annual revenue. The news sent AMD shares surging 23.7%, while the Philadelphia Semiconductor Index climbed 2.9%.

Still, the broader economic outlook remains clouded. The week-long government shutdown has delayed key U.S. economic reports, making it harder for markets and Federal Reserve policymakers to gauge the path of interest rates. In the absence of official data, investors and officials are relying on private indicators to assess economic trends.

Some Fed-related releases will still appear despite the shutdown, including a New York Fed survey on consumer expectations due later today. Several Fed officials are also set to speak, though analysts say their comments may have limited impact without new data to reference.

Tesla may unveil a more affordable Model Y

Tesla (NASDAQ:TSLA) is widely expected to unveil a cheaper version of its Model Y SUV on Tuesday, according to multiple media reports.

Over the weekend, the company stirred anticipation among fans by posting two teaser videos on X, hinting at a major reveal on October 7. However, it remains unclear whether the company will host a live event or make a virtual announcement.

CEO Elon Musk had previously canceled plans for a $25,000 entry-level EV, Reuters reported, but sources now suggest the new vehicle will be a more “affordable” version of Tesla’s current lineup.

Tesla recently posted record quarterly sales, boosted by the expiration of U.S. EV tax credits, which effectively raised prices by $7,500. Analysts expect deliveries to slow later in 2025 as those incentives fade.

Dell’s analyst day in spotlight

Investors are also watching Dell Technologies (NYSE:DELL), which hosts an analyst day expected to shed more light on the ongoing AI hardware boom.

Back in August, Dell raised its full-year sales and profit forecasts, driven by surging demand for AI-optimized servers that rely on Nvidia chips.

While demand for such high-performance systems has soared, production costs remain a concern, with some analysts warning of margin pressure. Still, Dell has upgraded its forecast for AI server revenue in fiscal 2026 to $20 billion, up from $15 billion previously.

Constellation Brands reports smaller sales drop

Shares of Constellation Brands (NYSE:STZ) rose in after-hours trading after the beverage maker reported a smaller-than-expected decline in quarterly sales.

Beer demand remained firm despite worries that President Donald Trump’s immigration crackdown could hurt spending among Hispanic consumers, a key demographic for Corona and Modelo beers.

The company maintained its full-year outlook for sales and profits, which had been sharply cut in September due to the economic impact of Trump’s policies.

CEO Bill Newlands acknowledged that while the company’s beer segment outperformed rivals, the “socioeconomic environment” has been “challenging” and has “dampened consumer demand.”

Like competitors Molson Coors and Brown-Forman, Constellation continues to face pressure from higher U.S. aluminum tariffs, which have squeezed profit margins.

Gold hits record before easing

Gold prices briefly touched a new record near $4,000 per ounce, supported by strong safe-haven demand amid U.S. political gridlock and growing bets that the Federal Reserve will cut rates later this month.

Traders widely expect the Fed to reduce borrowing costs by 25 basis points at its October 28–29 meeting, according to the CME FedWatch Tool. The central bank resumed its easing cycle in September and has signaled that more rate cuts may follow before year-end.

This environment has favored non-yielding bullion, which typically performs well when interest rates are falling.

Additional support came from People’s Bank of China data showing continued gold purchases.

Spot gold dipped 0.3% to $3,950.58/oz after reaching $3,977.45/oz earlier in the session, while December gold futures eased 0.1% to $3,973.80/oz by 03:43 ET.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Gold prices climbed in Asian trading on Tuesday, hovering near record highs around $4,000 an ounce, as investors flocked to the precious metal amid escalating political uncertainty across the U.S., Japan, and France.

Expectations for further U.S. interest rate cuts continued to support the metals market, with traders closely watching a series of upcoming Federal Reserve speeches for policy clues. Additional momentum came from People’s Bank of China (PBOC) data showing another month of increased gold purchases.

Spot gold rose 0.4% to $3,974.57 per ounce, after touching an intraday peak of $3,977.45, while December gold futures gained 0.6% to $3,998.12, having briefly hit $4,000.05 earlier in the session.

Political instability drives demand for gold

The global wave of political tensions has spurred renewed interest in safe-haven assets. In the U.S., a prolonged government shutdown and ongoing congressional gridlock have deepened concerns about fiscal governance.

In France, political turmoil intensified following the resignation of Prime Minister Sébastien Lecornu, who was immediately reappointed by President Emmanuel Macron to help negotiate a path forward. Calls for a snap parliamentary election are growing, with both far-right and far-left parties pushing for a leadership change.

Meanwhile, Japan made history as Sanae Takaichi, a noted fiscal dove, was elected leader of the Liberal Democratic Party, setting her on course to become the country’s first female prime minister. Although Japanese equities initially rallied on the news, the yen weakened sharply and bond prices fell, as investors questioned how Takaichi plans to fund her stimulus-heavy and tax-cutting agenda.

The combination of these developments kept investors anchored to gold, reinforcing its position as a hedge against geopolitical and financial instability.

Precious and industrial metals extend gains

Other precious metals also strengthened after recent rallies to multi-year highs. Spot platinum added 0.5% to $1,632.51 per ounce, while spot silver edged 0.1% higher to $48.56 per ounce.

Among industrial metals, benchmark copper futures on the London Metal Exchange advanced 0.7% to $10,724.65 a ton, and COMEX copper futures climbed 0.8% to $5.0820 per pound. Copper prices were buoyed by continued uncertainty over production at Freeport-McMoRan’s Grasberg mine in Indonesia, one of the world’s largest copper operations, which remains idle following a fatal accident in early September.

China extends gold buying streak

According to official data released Tuesday, the People’s Bank of China expanded its gold reserves in September for the 11th consecutive month. The central bank’s holdings reached 74.06 million fine troy ounces, up from 74.02 million the previous month. The total value of its reserves also rose sharply amid surging bullion prices.

China’s sustained gold accumulation reflects its effort to diversify foreign exchange reserves away from the U.S. dollar and Treasury securities, particularly as tensions with Washington continue to strain bilateral relations.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.