Category: Market News

Unilever (LSE:ULVR) is moving forward with its plan to carve out its ice cream unit, confirming that Magnum will be listed as a separate company by mid-November.

The restructuring represents one of the most significant changes to Unilever’s portfolio in recent years. Still, analysts believe the broader financial impact on the group will be relatively modest.

Barclays estimates that the separation will remove about 13% of 2024 sales, 10.5% of EBITDA and 9% of EBIT from Unilever’s accounts. “This is unlikely to be a material,” the brokerage noted, adding that once ice cream is separated, Unilever’s EBIT margin could rise by nearly 100 basis points.

The leaner group will also experience fewer seasonal swings in performance, giving management greater scope to concentrate on higher-growth areas such as Beauty & Wellbeing.

Unilever intends to keep a minority holding of under 20% in Magnum for as long as five years, with plans to gradually sell that stake. Barclays said the proceeds “will be sold down in an orderly manner to maintain capital flexibility through a reduction in group net debt.” The bank expects most of the initial proceeds from Magnum’s debt to be returned to Unilever in the form of a special dividend, which would be directed primarily toward reducing borrowings.

Unilever’s leverage is expected to remain close to 2x after the split, leaving its credit profile intact. Magnum, meanwhile, will launch with net leverage around 2.4x on €1.3 billion of EBITDA, backed by €3.8 billion in gross debt. Moody’s assigned it a Baa2 rating, while S&P rated it BBB.

Barclays also highlighted that while Unilever has already refinanced €1.9 billion in bonds maturing in 2026, it faces a “maturity tower” in 2027 and 2028, when €3.4 billion comes due. Proceeds from the demerger could provide breathing room. “For Unilver Remainco to reach a 2.0x leverage ratio, we calculate it only needs to reduce debt by c.€1.5-2.0bn,” the bank said, suggesting that some proceeds might also be returned to shareholders.

Still, Barclays emphasized that the transaction will not significantly affect bond spreads. “The Magnum spin-off is unlikely to be a material spread driver, in our view, as Unilever’s rating and leverage target remain unchanged,” the brokerage said.

In its latest half-year update, Unilever reported €30.1 billion in sales, up 3.4% organically, with its Power Brands contributing more than 75% of revenue. EBIT slipped 4.8% to €5.8 billion, with margins narrowing to 19.3% on higher brand spending. Free cash flow fell to €1.1 billion, hit by separation-related expenses and working capital, while net debt climbed to €26.4 billion, pushing leverage to 2.1x.

The group reaffirmed its guidance for 2025, targeting 3–5% underlying sales growth, margin gains and leverage around 2x.

Magnum, on the other hand, is set to debut as the world’s largest publicly traded ice cream business, with €7.9 billion in 2024 sales and a roughly 21% global retail market share. Despite its scale, the brand’s margins remain below those of broader consumer staples peers due to industry-specific supply chain challenges. Agencies view its outlook as supported by strong branding and diversification, but tempered by seasonality and sensitivity to commodity costs.

For Unilever, the spin-off offers a more streamlined focus and a small boost to margins, without altering its overall financial footing. As Barclays concluded, “current spread valuations look fair, with EUR bonds trading well in line with rating peers like PEP and KO.”

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 European Central Bank left interest rates unchanged on Thursday, in line with expectations, choosing caution as inflation hovers near target but economic and political uncertainties cloud the outlook.

In June, the ECB cut its key deposit rate to 2%, down from a record 4% within just a year, marking the start of an easing cycle. Since then, however, the central bank has opted to pause, with consumer prices now only slightly above its 2% goal following the post-pandemic inflation spike and fallout from Russia’s war in Ukraine.

Markets are now looking closely at the ECB’s new economic projections. Analysts anticipate modest upward revisions to 2025 growth and inflation, though views on the 2026 outlook remain mixed.

Uncertainty looms on several fronts. The European Union’s recent agreement with Washington on 15% tariffs is broadly aligned with the ECB’s base case of 10%, but the real effect on growth will only become clear in the coming months. Meanwhile, the possibility of U.S. regulators tightening scrutiny on European pharmaceutical companies adds another layer of risk.

Political tensions in France also complicate the picture. The eurozone’s second-largest economy saw a new prime minister appointed this week after unpopular austerity measures triggered public backlash, raising concerns about stability.

Should financial markets come under renewed stress, investors may question whether the ECB could step in with its Transmission Protection Instrument, designed to shield vulnerable sovereign debt.

For now, traders assign roughly a 70% chance that one more rate cut could come by next summer, suggesting the door remains open.

“While we still have some sympathy for another, rather preemptive, rate cut to avoid unwarranted euro strengthening and inflation undershooting, we also see a majority at the ECB not sharing this view and instead stressing signs of resilience and recent hard data,” analysts at ING wrote in a note.

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.

Kering (EU:KER), the French luxury conglomerate, saw its stock climb 2% after it and Qatari investor group Mayhoola revised their shareholders’ agreement for Valentino, the Italian fashion label renowned for luxury apparel and accessories.

The update postpones the full acquisition of Valentino, ensuring the brand’s current ownership remains unchanged at least through 2028.

Under the amended terms, Mayhoola’s put options to sell its remaining 70% stake in Valentino—originally scheduled for 2026 and 2027—are now deferred to 2028 and 2029. Meanwhile, Kering’s call option to acquire Mayhoola’s stake, initially set for 2028, has also been pushed back to 2029. Other terms of the agreement remain unchanged.

Kering first took a 30% stake in Valentino in 2023, aiming to reinforce its footprint in the high-end fashion market. The companies noted that the agreement revision aligns with a new phase for Valentino, marked by the appointment of Riccardo Bellini as CEO.

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 moved higher Thursday as investors prepared for the release of key inflation data, which could influence the Federal Reserve’s upcoming policy decisions. Meanwhile, the European Central Bank is expected to keep interest rates steady in its policy announcement later today. Adobe (NASDAQ:ADBE), the company behind Photoshop and Acrobat Pro, will also attract attention when it reports quarterly earnings after the closing bell.

Futures Show Modest Gains

By 03:10 ET, Dow futures were up 35 points, or 0.1%, S&P 500 futures rose 8 points, or 0.1%, and Nasdaq 100 futures increased by 39 points, or 0.2%. On Wednesday, Wall Street’s main indices ended mixed, reflecting a strong earnings report from AI-powered cloud software firm Oracle and a softer-than-expected rise in U.S. producer prices, which fueled expectations for a near-term Fed rate cut.

Oracle shares surged 36% in a single session—their largest one-day gain since 1992—pushing its market capitalization close to the $1 trillion mark. In contrast, the Dow Jones Industrial Average fell 0.48%, while the S&P 500 and Nasdaq Composite closed at record highs.

Consumer Price Index in Focus

Attention now turns to August’s consumer price index, a crucial measure of inflation. Economists expect a 2.9% year-on-year rise, up slightly from 2.7% in July. If confirmed, the Fed could face the challenge of balancing its dual mandate: supporting a cooling labor market while managing persistent inflation around its 2% target.

However, recent data showed a surprise decline in U.S. factory-gate prices in August, particularly for goods exposed to tariffs, suggesting inflation pressures may be contained. Fed officials, including Chair Jerome Powell, have signaled a willingness to prioritize labor market support, meaning a rate cut could encourage investment and hiring, albeit with potential inflationary risks.

ECB Rate Announcement

Before the Fed’s September 16–17 meeting, the European Central Bank will release its own decision Thursday. The ECB is widely expected to leave borrowing costs unchanged at 2%, though debate between rate-hike skeptics and supporters of easing is expected to be lively.

Analysts note that prior hawkish remarks by ECB President Christine Lagarde and stronger-than-expected inflation and growth since the last meeting have tempered expectations for major moves. The central bank is likely to maintain its policy while offering limited guidance on future rates.

Adobe Earnings

Adobe headlines the earnings calendar as it reports after the bell. Analysts expect the software giant to post fiscal Q3 earnings per share of $5.18 on revenue of $5.91 billion. Despite raising its annual guidance in June, Adobe faces potential headwinds from cyclical market conditions and questions about when AI-driven initiatives will begin generating significant returns.

Oil Prices Slip

Crude prices eased Thursday, retracing earlier gains driven by geopolitical tensions in Russia and the Middle East. At 03:36 ET, Brent futures fell 0.1% to $67.40 per barrel, and West Texas Intermediate dropped 0.2% to $63.56 per barrel.

U.S. crude inventories rose by 3.9 million barrels in the week ending September 5, versus expectations of a 1 million barrel draw, while gasoline stocks increased by 1.5 million barrels, exceeding forecasts. Rising inventories and evidence of slowing U.S. demand have added pressure to crude prices, despite earlier supply concerns.

Gold Remains Near Record Levels

Gold prices edged lower as investors awaited the U.S. CPI report, though the metal remained near record highs amid expectations for a Fed rate cut next week. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, keeping bullion supported in the current environment.

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 shares inched higher on Thursday, though gains were modest, as investors awaited the European Central Bank’s latest policy announcement and upcoming U.S. inflation figures.

At 07:05 GMT, Germany’s DAX rose 0.1%, France’s CAC 40 added 0.3%, and the U.K.’s FTSE 100 advanced 0.3%.

ECB Meeting Takes Center Stage

All eyes were on Frankfurt as the ECB wrapped up its policy meeting. Analysts widely expect the central bank to keep interest rates on hold. Following a key rate reduction to 2% by June, the ECB has maintained a steady stance, with inflation near target levels and growth stabilizing across the eurozone.

Despite this, lingering uncertainties—including U.S. President Donald Trump’s 15% tariffs on EU imports, subdued regional growth, and political unrest in France—suggest that the ECB may leave the door open for potential future easing. ECB President Christine Lagarde is expected to provide limited guidance, though the possibility of further rate cuts remains if inflation drops below the 2% target next year.

U.S. CPI in Focus

Investors are also focused on the U.S. consumer price index report ahead of next week’s Federal Reserve meeting. Headline CPI is forecast to have increased 2.9% year-on-year in August, the fastest pace since January, while core CPI is expected to remain steady at 3.1%. Markets have already priced in a 25-basis-point Fed rate cut, but lower-than-expected inflation readings could fuel speculation of a larger 50-basis-point adjustment.

Corporate Highlights: Energean Secures New Contracts

Corporate news was light Thursday, though Energean Oil & Gas (LSE:ENOG) made headlines with over $4 billion in new long-term gas deals in the first half of 2025, bringing total contracted revenues to roughly $20 billion over the next 20 years.

Oil Prices Ease Amid U.S. Demand Concerns

Oil markets softened on Thursday after earlier gains driven by geopolitical tensions in Russia and the Middle East. Brent crude futures fell 0.1% to $67.41 per barrel, while U.S. West Texas Intermediate futures dropped 0.2% to $63.57 per barrel as of 03:05 ET.

U.S. crude inventories rose by 3.9 million barrels in the week to September 5, exceeding expectations of a 1 million barrel draw, according to the Energy Information Administration. Gasoline stocks also increased by 1.5 million barrels, against forecasts of a 200,000-barrel decrease. These figures highlight concerns that slowing demand in the world’s largest oil consumer could weigh on prices later in the year.

Oil had previously surged over $1 per barrel on Wednesday, reflecting market worries over supply disruptions in Russia and the Middle East. This continued a broader upward trend for crude prices throughout September, following a three-month low on September 5.

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 dipped slightly in Asian trading on Thursday as investors exercised caution ahead of key U.S. inflation data, yet the metal remained close to all-time highs on strong expectations of a Federal Reserve rate cut next week.

Spot gold was trading down 0.4% at $3,627.59 per ounce by 02:04 ET (06:04 GMT), while December U.S. gold futures slipped 0.5% to $3,664.30. Earlier in the week, gold touched a record high of roughly $3,673.95 per ounce.

Fed Rate Cut Bets Boost Gold

Investor confidence in imminent monetary easing was bolstered by weaker-than-expected U.S. producer price data and significant upward revisions to official employment figures, suggesting a softening labor market. Market participants are now pricing in a nearly certain 25-basis-point cut at the upcoming Fed meeting, with some speculating on a larger reduction.

Attention is now turning to the U.S. consumer price index (CPI) report scheduled for later Thursday. Analysts expect a 0.3% month-on-month rise for August and a year-on-year increase of 2.9%. Any stronger-than-expected inflation reading could slow gold’s momentum by tempering expectations for aggressive rate cuts.

Political Uncertainty Adds Support

Gold also found support amid concerns about the Federal Reserve’s independence. A federal judge temporarily blocked President Donald Trump from removing Fed Governor Lisa Cook, following White House efforts that raised investor fears of political interference in monetary policy. The Trump administration has appealed the ruling, prolonging uncertainty.

As a non-yielding asset, gold benefits from lower interest rates, which reduce its opportunity cost, and typically gains when the dollar weakens. On Thursday, the dollar index inched up 0.1% but remained below recent peaks.

Other Precious Metals Mixed

Other metals saw mixed movements. Silver futures edged up 0.2% to $41.67 per ounce, while platinum futures fell 0.5% to $1,008.20 per ounce. Copper prices were mostly subdued, with London Metal Exchange copper futures down 0.2% at $9,987.30 per ton, and U.S. copper futures holding steady at $4.61 per pound.

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.

Bitcoin (COIN:BTCUSD) climbed on Thursday, building on overnight gains as softer-than-expected U.S. producer price data fueled optimism that the Federal Reserve could implement interest rate cuts soon. Traders’ attention is now turning to the upcoming consumer price index (CPI) report for further clues on inflation trends.

The cryptocurrency, the largest by market value, led gains across major digital assets as investor appetite for risk increased amid expectations that the Fed could reduce rates as early as next week. However, caution lingered ahead of the CPI figures for August, which are expected to reflect the effects of President Donald Trump’s trade tariffs on overall price levels.

By 01:19 ET, Bitcoin had risen 2.3% to $114,076.8, although it remains well below the record highs reached in mid-August.

Rate Cut Optimism Drives Bitcoin Momentum

Bitcoin’s recent gains were largely sparked by softer U.S. producer price index readings for August, which alleviated concerns that trade tariffs would sharply accelerate inflation. Markets are now pricing in a 93.7% likelihood of a 25-basis-point Fed rate cut at the September 16–17 meeting, with a smaller 6.3% probability of a 50-basis-point reduction, according to CME FedWatch data.

Lower interest rates are seen as favorable for cryptocurrencies, as they increase market liquidity for speculative assets. Bitcoin benefited from steady rate cuts throughout 2024, which contributed to its rapid rally last year. Investors are now looking to CPI data to gauge whether inflation pressures are easing, a factor that could further support risk appetite and crypto prices.

Crypto IPOs in the Spotlight

The broader cryptocurrency market is also tracking a wave of major U.S. IPOs in the sector. Figure Technology, a stablecoin operator, raised at least $787 million on Wednesday, selling 31.5 million shares at $25 each—above its previously guided range—and increased the size of the offering.

This followed news from Gemini, the Winklevoss twins-backed exchange, which raised its proposed IPO price range and aims for a valuation of up to $3.08 billion. Other industry names, including Circle Internet Group Inc (NYSE:CRCL), Bullish Inc (NYSE:BLSH), and eToro Group Ltd (NASDAQ:ETOR), have made successful public debuts this year, with regulatory clarity from the Trump administration spurring investor interest.

Altcoins Follow Bitcoin Higher

Other major cryptocurrencies also saw gains alongside Bitcoin on Thursday. Ether, the second-largest crypto, rose 2.6% to $4,419.42, while XRP gained 1.5% to $3.0034. Solana increased 1.8% and Cardano added 1.6%. Among meme coins, Dogecoin jumped 4.4%, while $TRUMP saw a modest 0.2% rise.

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.

Oil prices stabilized in Asian trade on Thursday after recording strong gains earlier in the week, fueled by rising geopolitical tensions in Russia and the Middle East, which heightened concerns about potential supply disruptions.

Despite these gains, traders remained cautious due to fears of an oversupplied market, particularly after U.S. data revealed a larger-than-expected build in oil inventories. By 21:33 ET (01:33 GMT), Brent crude for November stood at $67.49 per barrel, while West Texas Intermediate fell slightly to $64.34 per barrel. A weaker U.S. dollar, following lower-than-anticipated producer price index inflation, provided some support to crude prices, with markets now awaiting key U.S. consumer price index data later in the day.

Geopolitical Risks Support Prices

Heightened concerns over supply in Russia and the Middle East helped underpin oil prices this week. In Europe, Poland shot down Russian drones over its airspace during a Russian attack in Western Ukraine, marking the first instance of NATO forces engaging directly in the conflict. While the move raised fears of wider escalation, Moscow stated the incursion was unintentional and expressed willingness to discuss the matter with Poland.

In the Middle East, Israel conducted airstrikes on Hamas targets in Doha, Qatar, a U.S. ally, potentially complicating ongoing peace talks. The attacks signaled likely continued hostilities in Gaza, which initially pushed oil prices up by 2% before trimming some of the gains. Additional support came from expectations of stricter U.S. sanctions on Russian oil, with President Donald Trump reportedly advocating trade tariffs against top Russian crude buyers India and China.

OPEC+ also contributed to price strength, announcing a smaller-than-expected production increase for October, signaling tighter oil markets than traders had anticipated.

U.S. Inventories and Oversupply Concerns Cap Gains

Nevertheless, persistent worries about a global oil surplus limited further gains. Russia and China have been expanding energy trade, and India has shown little intention to reduce purchases of Russian crude. U.S. fuel demand appeared to be cooling as the summer season ended. Data released Wednesday indicated U.S. oil inventories rose by 3.93 million barrels in the week to September 5, against expectations of a 1.9 million barrel draw. Distillate and gasoline stocks also increased sharply, suggesting weaker demand in the world’s largest fuel-consuming nation following the travel-heavy summer.

U.S. production remained robust in recent months, adding further pressure on global supply and contributing to a more cautious outlook for oil markets.

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.

ImmuPharma PLC (LSE:IMM) has confirmed the exercise of 2,500,000 warrants over New Ordinary Shares, raising £125,000 in capital. The newly issued shares, representing 0.50% of the company’s enlarged share capital, will be admitted to trading on the AIM market of the London Stock Exchange.

Following this transaction, ImmuPharma’s total issued share capital will consist of 502,223,932 Ordinary Shares.

About ImmuPharma

ImmuPharma PLC is a specialty biopharmaceutical company dedicated to the discovery and development of peptide-based therapeutics. Its portfolio includes innovative peptide treatments targeting autoimmune diseases and anti-infective applications.

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.

Defence Holdings PLC (LSE:ALRT) has unveiled Project Ixian, its first AI-driven solution designed for information operations, a key area in contemporary defence. Developed alongside a leading technology partner, Project Ixian delivers sovereign-grade resilience and scalability, supporting UK government initiatives to strengthen digital security.

This launch represents a significant commercial opportunity for Defence Holdings, with the first phase of value realisation scheduled for December. Project Ixian aims to counter pressing threats such as disinformation campaigns and digital sabotage.

About Defence Holdings

Defence Holdings PLC is the UK’s first publicly listed software-led defence company, specializing in sovereign AI-enabled solutions for modern defence challenges. The company focuses on information operations, national security, and private sector applications, targeting critical threat vectors identified in strategic defence assessments.

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.