ADVFN UK Market News

Category: Top Story

  • Alphabet Cloud Forecast Raised as Piper Sandler Models $104 Billion in 2028 TPU Sales

    Alphabet Cloud Forecast Raised as Piper Sandler Models $104 Billion in 2028 TPU Sales

    Piper Sandler has increased its revenue estimates for Alphabet (NASDAQ:GOOG) after incorporating projected external sales of Google’s tensor processing unit hardware into its forecasts.

    Analyst Thomas Champion estimates TPU hardware sales could reach approximately $8 billion in 2026, $51 billion in 2027 and $104 billion in 2028. The projections follow Google’s first disclosure of external TPU hardware sales in its second-quarter 2026 earnings report.

    Piper Sandler based its forecasts on expected facilities development and power capacity. Its model assumes Google reaches 3 gigawatts of TPU run-rate capacity by the end of 2027, increasing to 6GW by the end of 2028.

    The firm estimates that each gigawatt of capacity represents approximately $30 billion of compute capital expenditure and around 1 million TPU chips. Its 2026 revenue estimate corresponds to roughly 240,000 chips, while the 2027 forecast assumes approximately 2.4 million chips.

    Piper Sandler estimates that TPU hardware could generate an operating margin of around 30%.

    The inclusion of the projected hardware sales has also resulted in higher forecasts for Google Cloud. Piper Sandler now expects the segment to generate $204 billion of revenue in 2027, an increase of $92 billion from the prior year. The forecast consists of $153 billion in Core Cloud revenue and approximately $51 billion from TPU hardware.

    Its revised Cloud revenue forecasts for 2027 and 2028 are 15% and 17% above consensus estimates, respectively, while its Cloud EBIT estimates are 18% to 19% above consensus.

    Piper Sandler raised its Alphabet price target to $400 from $395 while maintaining an Overweight rating. According to the firm, its discounted cash flow valuation reflects a 2% increase in estimated 2027 revenue and an 8% increase in projected 2027 operating income.

    The analyst also referenced Broadcom management’s comments regarding potential Anthropic demand of 5GW in 2027 and 10GW in 2028. Piper Sandler estimates those capacity levels would correspond to approximately $105 billion and $210 billion of revenue, respectively, if achieved.

    Alphabet shares were trading 0.7% lower at $341.60 in premarket trading at the time referenced in the source, amid broader weakness in technology stocks.

  • Market Open: Wetherspoon Revenue Rises, Capita Responds to NAO Review

    Market Open: Wetherspoon Revenue Rises, Capita Responds to NAO Review

    FTSE 100 opens flat as gilts steady, Wetherspoon revenue rises while higher costs hit profit, Capita responds to NAO review and Brent edges up.

    Market Overview

    London opened almost unchanged, with the FTSE 100 slipping 0.0003 per cent to 10,428.23 as gilts steadied after Thursday’s sell-off. On the Continent, the Euronext 100 rose 0.0231 per cent to 1,857.93 and the DAX gained 0.2243 per cent to 24,995.29. That leaves European shares heading for their worst week since April, after France’s 2027 draft budget pushed its 10-year bond yield to the highest level since 2002. In the US, the Nasdaq closed up 0.04 per cent at 26,871.60 and the S&P 500 added 0.19 per cent to 7,666.45, as investors waited for September non-farm payrolls. Markets see that data as key to whether the Federal Reserve raises rates in October.

    Brent crude moved slightly higher, holding on to gains. Reports that Washington is weighing another aircraft carrier group and more troops for the Middle East kept attention on the Strait of Hormuz. The restart of Saudi Arabia’s East-West Pipeline and worries about global demand limited further gains. Copper and natural gas edged up, while gold eased a little despite steady demand for safe-haven assets. Bitcoin rose firmly against sterling. The pound was marginally firmer against all its major peers as investors reassessed risk after the gilt sell-off. Eurozone flash inflation figures, where energy costs are expected to lift the headline rate, are also due today.

    Market Numbers

    FTSE 100: Down (-0.00%), 10,428.23
    Euronext 100: Up (+0.023%), 1,857.93
    DAX: Up (+0.224%), 24,995.29
    NASDAQ: Up (+0.04%), 26,871.60
    S&P 500: Up (+0.19%), 7,666.45

    In the Headlines

    Annual results – J D Wetherspoon (LSE:JDW)
    The pub operator’s revenue rose 5.2 per cent to £2.24 billion in the year to 26 July 2026. Profit before tax and separately disclosed items fell 28 per cent to £58.6 million, because wage, energy and repair costs rose faster than sales. Like-for-like sales rose 8.6 per cent in the first nine weeks of the new financial year, and the group expects this year’s profit before tax to be in line with market consensus.

    NAO review – Capita (LSE:CPI)
    Capita has responded to the National Audit Office’s decision to review how it runs the Civil Service Pension Scheme. The company acknowledged that its performance is still below what scheme members and the Government expect. It said it has made operational progress, including more automation and stronger governance, but did not put a figure on any possible financial impact from the review.

    Currencies (vs GBP)

    USD: Up (+0.0053%), $1.3198
    CHF: Up (+0.0027%), Fr.1.0962
    EUR: Up (+0.0085%), €1.1733
    JPY: Up (+0.0083%), ¥208.44
    AUD: Up (+0.0005%), $1.9049
    Bitcoin (BTC/GBP): Up (+3.15%), £65,023.8

    Commodities

    Copper: Up
    Gold: Down
    Brent Crude: Up
    Natural Gas: Up

  • Wall Street Futures Advance as Investors Await September Jobs Report: Dow Jones, S&P, Nasdaq

    Wall Street Futures Advance as Investors Await September Jobs Report: Dow Jones, S&P, Nasdaq

    U.S. stock futures rose on Friday as markets prepared for September employment figures and assessed recent movements in global government bond yields.

    At 07:16 GMT, Dow futures gained 137 points, or 0.3%, while S&P 500 futures were up 20 points, or 0.3%. Nasdaq 100 futures increased 129 points, or 0.4%.

    Wall Street’s major indices finished slightly higher on Thursday after an earlier decline in government bond prices moderated and Treasury yields subsequently moved lower.

    Micron’s quarterly update also supported equities. The semiconductor company issued guidance and said it expects memory-chip supply and demand to be considerably tighter over the next two fiscal years than in fiscal 2026.

    September Payroll Growth Forecast at 89,000

    Markets are awaiting September’s U.S. nonfarm payrolls report for further evidence about labour-market conditions and the potential implications for Federal Reserve policy.

    Economists expect the U.S. economy to have added 89,000 jobs during September, down from 162,000 in August. The unemployment rate is forecast to remain at 4.1%.

    “Clearly, the monthly jobs reports are always a macro highlight, but this is an important one, as the continued data resilience has been a huge factor supporting U.S. risk assets,” Deutsche Bank analysts said.

    The analysts also said resilient economic data have provided the Federal Reserve with greater scope to increase borrowing costs.

    The central bank raised its benchmark interest rate by 25 basis points last month amid inflation pressures and continued resilience in employment data.

    Fed Rate Expectations Shift as Treasury Yields Retreat

    Market expectations for another Federal Reserve rate increase in October have declined following comments from policymakers.

    The implied probability of an October rate increase stood at approximately 30%, compared with around 70% on Monday, according to the supplied information.

    The shift coincided with a reversal in Treasury yields on Thursday. The benchmark U.S. 10-year Treasury yield had earlier reached its highest intraday level since 2002 before ending the session more than four basis points lower.

    The two-year Treasury yield, which is particularly sensitive to monetary policy expectations, recorded its largest one-day decline since July.

    Bond markets remain sensitive to inflation data, the outlook for monetary policy and developments in the Middle East. Spending on artificial intelligence infrastructure was also cited in the supplied information as affecting demand and inflation.

    Nike Drops After Fiscal 2027 Revenue Outlook

    Nike (NYSE:NKE) shares declined more than 8% in after-hours trading after the company issued a fiscal 2027 revenue forecast and outlined further changes to its operations.

    The athletic apparel company expects revenue to decline by a high-single-digit percentage in fiscal 2027. Analysts had forecast a decline of approximately 2%, according to LSEG data cited by Reuters.

    Nike also plans further job reductions and changes to its global divisions as Chief Executive Elliott Hill continues the company’s restructuring.

    The company has not yet specified how many positions will be affected and said it expects to begin notifying affected employees in 2027.

    Amazon Reportedly Considers $8 Billion Nvidia Chip Financing Structure

    Amazon (NASDAQ:AMZN) is considering a financing structure involving approximately $8 billion of Nvidia (NASDAQ:NVDA) artificial intelligence chips, according to a Financial Times report citing people familiar with the matter.

    Amazon has reportedly held discussions with investors about placing thousands of Nvidia Grace Blackwell chips into a special purpose vehicle.

    Under the reported proposal, Amazon would lease the chips back for use in its U.S. data centres, while the special purpose vehicle would raise financing from external investors through debt issuance.

    The Financial Times reported that the structure would transfer some of the costs associated with the chips to external investors. The supplied information does not indicate that an agreement has been reached or a transaction completed.

  • European Shares Edge Higher but Remain on Course for Worst Week Since April: DAX, CAC, FTSE100

    European Shares Edge Higher but Remain on Course for Worst Week Since April: DAX, CAC, FTSE100

    European shares moved modestly higher on Friday after falling to three-month lows in the previous session, while investors continued to monitor government bond yields and France’s fiscal outlook.

    The pan-European STOXX 600 gained 0.2% in early trading, following its largest one-day decline in three weeks. Despite Friday’s increase, the index remained down nearly 2% for the week and was on course for its weakest weekly performance since mid-April.

    Germany’s DAX, France’s CAC 40 and the UK’s FTSE 100 each advanced 0.2% in early trading.

    French Bond Spread Reaches Widest Level Since 2012

    European government bond markets remained in focus following increases in sovereign borrowing costs and the release of the French government’s draft 2027 budget.

    France’s 10-year OAT yield reached its highest level since 2002, while the spread between French 10-year government bonds and benchmark German Bunds widened beyond 140 basis points, according to Reuters.

    That represented the widest spread between the two benchmarks since the eurozone sovereign debt crisis in 2012.

    The euro also declined against the U.S. dollar, reaching its lowest level since 2025, according to the supplied information.

    Eurozone Inflation and U.S. Employment Data Awaited

    Investors were also awaiting preliminary September inflation figures for the eurozone.

    Economists surveyed by Reuters expect headline inflation to increase to 3.6% from 3.2% in August, with higher energy costs linked to the Middle East conflict among the factors affecting the forecast.

    Attention is also focused on the September U.S. employment report.

    The data could influence expectations for Federal Reserve monetary policy and government bond yields in the United States and other major markets.

  • FTSE 100 Edges Higher After Bond Sell-Off as U.S. Jobs Data Awaited

    FTSE 100 Edges Higher After Bond Sell-Off as U.S. Jobs Data Awaited

    The FTSE 100 moved modestly higher on Friday following the previous session’s bond-driven decline, while investors monitored developments involving Iran and awaited U.S. employment data.

    The UK benchmark was up 0.10% as of 07:20 GMT. Elsewhere in Europe, Germany’s DAX gained 0.30% and France’s CAC 40 advanced 0.29%.

    Sterling was 0.09% higher against the U.S. dollar at $1.3213.

    Geopolitical developments remained in focus amid reports of an increased U.S. military presence around Iran. A U.S. official told Al Jazeera that three aircraft carriers and two amphibious groups were being deployed, with the full buildup expected by November.

    UK Maritime Trade Operations also reported that a supertanker carrying 2.5 million barrels was struck by an unknown projectile and caught fire in the Strait of Hormuz. The supplied information did not specify when the incident occurred.

    Separately, U.S. envoy Mike Waltz told the United Nations Security Council that Iran was enriching uranium to 60%, which he said has “no credible civilian purpose.”

    U.S. President Donald Trump on Thursday called for Iran to reach what he described as a “very fair deal, or they won’t exist any longer,” according to Reuters. In a separate speech, Trump said Iran needed to “do something very proper and smart” or it would not “be around very long.”

    Reuters also reported that Trump was considering renewed strikes against Iran after the November 3 U.S. midterm elections. Iranian President Masoud Pezeshkian, meanwhile, said Tehran has “never avoided” dialogue, according to Tasnim news agency.

    U.S. Payrolls in Focus

    Attention was also turning to September’s U.S. employment report.

    The consensus forecast is for nonfarm payrolls to increase by 89,000, compared with 162,000 previously. The unemployment rate is expected at 4.1%, while average hourly earnings are forecast to increase 0.3% month-on-month.

    According to ING, markets are pricing an October Federal Reserve interest-rate increase as more likely than not.

    Eurozone flash inflation data are also due, with ING forecasting headline inflation of 3.3% and core inflation of 2.5%.

    Oil Falls While Gold Advances

    Oil prices moved lower during the session. Brent December futures declined 1.11% to $101.20 per barrel, while WTI November futures fell 1.76% to $91.25.

    Gold moved higher, with December futures gaining 0.27% to $4,214.20 an ounce. Spot gold increased 0.17% to $4,184.41.

  • Wetherspoon Revenue Rises 5.2% as Higher Costs Reduce Annual Profit

    Wetherspoon Revenue Rises 5.2% as Higher Costs Reduce Annual Profit

    J D Wetherspoon (LSE:JDW) reported a 5.2% increase in annual revenue to £2.24 billion for the year ended 26 July 2026, while profit before tax and separately disclosed items declined 28% to £58.6 million.

    Like-for-like sales increased 4.2% during the financial year, although the company said increases in wage, energy and repair costs exceeded the rate of sales growth.

    Earnings per share declined during the period, while free cash inflow per share nearly doubled. Wetherspoon maintained its full-year dividend at 12 pence per share.

    Sales per pub were 36.6% above pre-pandemic levels, although profits remained below those reported in the 2019 financial year.

    Trading accelerated at the beginning of the new financial year, with like-for-like sales increasing 8.6% during the first nine weeks.

    Wetherspoon also said it has outperformed the NIQ RSM Hospitality Business Tracker for 48 consecutive months. The company cited its beer gardens and outdoor seating among factors affecting its trading performance.

    Chairman Tim Martin reiterated his criticism of taxation and regulatory costs affecting the hospitality industry. He argued that the VAT treatment of pubs and restaurants relative to supermarkets places hospitality businesses at a disadvantage.

    According to the company, pubs and restaurants pay approximately 40% of their receipts in taxes. Martin said continued cost and tax pressures could contribute to further closures and job losses across the sector. These comments represent the chairman’s assessment of the operating environment.

    For the current financial year, Wetherspoon expects profit before tax to be in line with market consensus.

    The group operated 792 pubs at the end of FY2026, compared with 794 a year earlier and 879 before the pandemic.

    About J D Wetherspoon

    J D Wetherspoon is a UK-listed pub operator founded in 1979, with an estate of nearly 800 pubs.

    The company operates pubs serving food and drinks and has invested in outdoor trading areas, including beer gardens and other seating.

    Wetherspoon has also campaigned for changes to the VAT treatment of pubs and restaurants compared with supermarkets.

  • Capita Responds to National Audit Office Review of Civil Service Pension Scheme Administration

    Capita Responds to National Audit Office Review of Civil Service Pension Scheme Administration

    Capita plc (LSE:CPI) has responded to the National Audit Office’s decision to review the administration of the Civil Service Pension Scheme, as the company continues work aimed at improving its performance under the contract.

    The review follows an earlier National Audit Office investigation into the administration of the scheme.

    Capita acknowledged that its current performance in administering the Civil Service Pension Scheme remains below the expectations of both scheme members and the UK Government.

    The company said it has made operational progress in recent months and continues to prioritise remediation work relating to the scheme.

    Measures being implemented include increased automation and changes intended to strengthen governance around the administration of the contract.

    Capita described the National Audit Office review as part of the accountability associated with major public-sector contracts.

    The company did not provide financial guidance or quantify any potential financial impact from the review in the supplied information.

    About Capita

    Capita is a London-listed business services company providing services to public and private-sector organisations, including central and local government bodies and regulated industries.

    The company combines technology, data and artificial intelligence with specialist services to support the operations of its clients.

    Its public-sector activities include the administration of the Civil Service Pension Scheme and other services provided to government organisations.

  • IG Group Expects Q3 Revenue of About £240 Million, Updates 2026 Outlook

    IG Group Expects Q3 Revenue of About £240 Million, Updates 2026 Outlook

    IG Group (LSE:IGG) expects to report total revenue of approximately £240 million for the third quarter of 2026, representing a year-on-year decline of around 14%.

    The company attributed the expected decline partly to market conditions during the period, with OTC revenue retention at approximately 70%. OTC customer income, however, increased by around 8% year-on-year.

    IG also reported growth in customer activity. Organic first trades increased by more than 25%, while the number of active customers rose approximately 17%.

    The company now expects total revenue for 2026 to increase by a mid-single-digit percentage compared with the previous year.

    IG forecasts an underlying EBITDA margin in the low-40% range for 2026, excluding non-recurring costs associated with its redomicile and restructuring activities.

    Underdog, the US fantasy sports and betting business that IG is acquiring, generated approximately $105 million of net revenue during the third quarter, more than double the level recorded in the comparable period.

    IG said its board continues to expect the group to deliver its existing medium-term guidance beyond 2026. The company cited customer growth, investment in its products and brands and its expectations for higher structural OTC revenue retention as factors underpinning that guidance.

    IG plans to provide further information on third-quarter trading and its strategy later in October. It also intends to hold a separate seminar covering Underdog for institutional investors and analysts.

    About IG Group

    IG Group is a FTSE 100 financial technology company providing retail trading and investment services.

    The group operates brands including IG, tastytrade, Freetrade, Independent Reserve and IG Prime and serves more than 1.4 million customers globally.

    Its services include leveraged trading, equities and investment products and cryptocurrency trading through its platforms.

  • Wizz Air September Passenger Numbers Rise 24.2% as Airline Updates Revenue and Capacity Guidance

    Wizz Air September Passenger Numbers Rise 24.2% as Airline Updates Revenue and Capacity Guidance

    Wizz Air (LSE:WIZZ) carried 7.78 million passengers in September 2026, an increase of 24.2% from the same month a year earlier.

    The airline’s capacity increased 25.3% year-on-year to 8.46 million seats, while its load factor was 92.0%, slightly lower than in the prior-year period.

    Wizz Air said the load factor partly reflected the pricing environment during the period, with revenue performance improving compared with earlier periods.

    The airline also updated its near-term guidance following better-than-expected summer pricing. Wizz Air now expects revenue per available seat for its second quarter to be broadly flat year-on-year.

    At the same time, the company has reduced its planned capacity for the second half of the financial year by 5%, citing geopolitical developments and volatility in fuel prices.

    At its recent Capital Markets Day, Wizz Air also outlined medium-term objectives covering its fleet, revenue and profitability. These include transitioning towards an all-neo aircraft fleet, increasing revenue and targeting a double-digit EBIT margin.

    The targets represent management’s medium-term objectives and are not forecasts of achieved financial performance.

    About Wizz Air

    Wizz Air Holdings is a London-listed low-cost airline focused primarily on Central and Eastern European markets.

    The company operates a fleet of 276 Airbus A320 and A321 aircraft and is transitioning its fleet towards newer-generation neo aircraft.

    Wizz Air’s operating model is based on low fares, high-density aircraft configurations and managing operating costs while expanding passenger volumes.

  • AstraZeneca, Daiichi Sankyo and Summit Therapeutics Plan Datroway–Ivonescimab Combination Trials

    AstraZeneca, Daiichi Sankyo and Summit Therapeutics Plan Datroway–Ivonescimab Combination Trials

    AstraZeneca (LSE:AZN) and Daiichi Sankyo (USOTC:DSKYF) have entered a clinical collaboration with Summit Therapeutics (NASDAQ:SMMT) to evaluate Datroway in combination with ivonescimab across multiple tumour types.

    The programme is expected to begin with a Phase III trial assessing the combination as a first-line treatment for triple-negative breast cancer.

    Datroway is a TROP2-directed antibody drug conjugate jointly developed by AstraZeneca and Daiichi Sankyo, while ivonescimab is Summit Therapeutics’ bispecific antibody targeting PD-1 and VEGF.

    Under the agreement, the companies will each supply their respective medicines and share the costs associated with the clinical trials. Each party will retain its existing development and commercial rights to its respective treatment.

    The agreement expands AstraZeneca’s existing clinical collaboration with Summit involving combinations of antibody drug conjugates and ivonescimab. That collaboration includes Datroway, sonesitatug vedotin and potential additional ADC-based combinations.

    AstraZeneca has also made an equity investment connected with its clinical collaboration with Summit.

    The companies intend to evaluate the Datroway and ivonescimab combination in several solid tumour settings. The trials will determine the safety and efficacy of using the two treatments together.

    About the Companies and Treatments

    AstraZeneca is a global biopharmaceutical company headquartered in Cambridge, UK, with operations across oncology, rare diseases and biopharmaceuticals, including cardiovascular, renal and metabolism, and respiratory and immunology medicines.

    Daiichi Sankyo works with AstraZeneca on several DXd antibody drug conjugates, including Datroway and Enhertu, under global collaboration agreements covering most markets outside Japan.

    Summit Therapeutics is developing ivonescimab as a bispecific PD-1/VEGF antibody across several solid tumour indications. The treatment is approved in China for certain patients with non-small cell lung cancer and, according to the source material, is under regulatory review in the US.