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European equities edged higher on Monday, starting the week positively as investors awaited several key central bank meetings, including the U.S. Federal Reserve and the Bank of England.

By 07:05 GMT, Germany’s DAX was up 0.5%, France’s CAC 40 gained 0.5%, and the U.K.’s FTSE 100 rose 0.1%.

Focus on the Fed

Market participants are bracing for a critical Federal Reserve meeting later this week. Recent economic indicators suggest a softening labor market alongside subdued inflation, raising expectations of a potential rate cut when the Fed concludes its session on Wednesday. Optimism around this scenario helped push U.S. stock indices to record levels last week, with the tech-heavy Nasdaq Composite closing Friday at a new high.

The Fed is not the only central bank in the spotlight this week. The Bank of England, which cut rates five times in just over a year, is expected to hold rates steady on Thursday, even with inflation at 3.8% in July—the highest among G7 nations and nearly double the Bank of England’s medium-term target. Other central banks set to announce policy include those in Japan, Canada, and South Africa.

China Growth Slows

In Europe, there was little domestic economic data on Monday, but sentiment was affected by China’s August economic figures. Factory output and retail sales showed their slowest growth since last year, with industrial production up 5.2% year-on-year (down from 5.7% in July) and retail sales rising 3.4%, the slowest pace since November 2024.

Corporate Developments

In corporate news, German defence firm Rheinmetall (TG:RHM) announced an agreement to acquire the military shipbuilding division of the Luerssen Group, Naval Vessels Luerssen, marking its expansion into naval construction. Transaction terms were not disclosed, and the deal is expected to close early next year, subject to antitrust approval.

Meanwhile, AO World (LSE:AO.) boosted its profit forecast and announced its first-ever £10 million share buyback after reporting double-digit revenue growth for H1 2025.

Oil Markets

Oil prices rose Monday, continuing recent gains amid concerns over Russian supply disruptions following Ukrainian drone strikes on Moscow’s energy infrastructure. At 03:05 ET, Brent futures climbed 0.3% to $67.22 per barrel, while U.S. West Texas Intermediate crude rose 0.1% to $62.75 per barrel. Both benchmarks gained more than 1% last week as attacks targeted Russia’s Primorsk export terminal and the Kirishinefteorgsintez refinery, potentially reducing crude output and affecting key markets such as India and China.

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.

Greencoat Renewables Plc (LSE:GRP) reported a post-tax loss of €68 million for H1 2025, compared with a €34.6 million profit in the same period last year, as weaker wind conditions and lower power prices negatively affected output and valuations.

The Dublin-listed renewable investor generated €68.7 million in gross cash and €64.8 million in net cash after project-level debt repayments, providing dividend cover of 1.8x gross and 1.7x net. Revenue totaled €160.2 million, with implied EBITDA of €89.8 million. Electricity production reached 1,830 GWh, 15% below budget, which the company described as “one of the weakest Northern European wind resource periods on record.” Solar output met expectations.

Dividends for the period were 3.41 cents per share (€37.9 million), keeping Greencoat on track for its 2025 target of 6.81 cents. Net asset value stood at €1.12 billion (101.0 cents per share) as of 30 June, down from €1.23 billion (110.5 cents) at the end of 2024. Gross asset value was €2.48 billion.

The company completed the sale of a 116 MW portfolio of six Irish assets, including a 50% stake in Knockacummer, for €156.2 million, a 4% premium to book value. Proceeds of €139 million were applied to debt repayment, reducing pro forma gearing to approximately 52%. Total group debt was €1.35 billion (55% of gross asset value) before the disposal-linked repayment, and cash stood at €140.8 million, including €89.1 million of unrestricted cash.

Chairman Rónán Murphy said the portfolio, “delivered gross dividend cover of 1.8x whilst decisive action resulted in material progress on a range of strategic initiatives.”

He highlighted the asset disposal, new power purchase agreements, and an additional Johannesburg Stock Exchange listing as key steps to strengthen the balance sheet.

Greencoat extended its €350 million revolving credit facility to 2028 and entered swaps to lock in a 3.9% cost of debt through 2030. From October, the weighted average cost of debt is expected to be around 3.4%, compared with 2.9% at midyear.

The company plans to continue asset recycling, having raised more than €200 million through disposals since late 2024. Murphy noted: “Our strategy continues to adapt to evolving sector and capital market dynamics,”

adding that the EU’s binding 2030 target of 42.5% renewable generation is supporting demand for clean energy.

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.

AO World (LSE:AO.) increased its profit outlook and announced its first-ever share buyback on Monday, following a period of double-digit revenue growth in the first half of the year.

The online electricals retailer reported that B2C revenues grew 11% during the period, while group revenues, including contributions from MusicMagpie, rose 13%. The company reaffirmed its guidance for continued double-digit B2C growth in fiscal 2026. Adjusted profit-before-tax guidance was raised from £40–50 million to £45–50 million, reflecting a 6% increase at the midpoint.

AO also confirmed a £10 million share repurchase program. The company reported a net cash position of approximately £70 million for H1, exceeding prior estimates.

Following the update, Jefferies increased its forecast for AO’s fiscal 2026 net cash position from £35 million to £45 million. The investment firm noted that this trading update represents the 10th guidance upgrade since summer 2022.

Analysts highlighted AO World’s strong performance across service, membership programs, and cost management, though no category-specific revenue breakdowns were provided.

Shares of AO closed at 83.40p prior to the announcement. Jefferies maintained its “buy” rating and a 150p price target, implying an 80% increase from the most recent closing price.

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.

JPMorgan has reaffirmed its “overweight” rating on J Sainsbury Plc (LSE:SBRY) and added the grocer to its Positive Catalyst Watch, citing better execution and supportive industry trends. The announcement pushed Sainsbury’s shares up 5% on Monday.

The brokerage also lifted its price target from 330p to 363p, suggesting an 18% upside from the September 12 close of 307p.

The move comes ahead of Sainsbury’s first-half results, due on 6 November, with JPMorgan anticipating earnings above guidance. The firm raised its fiscal 2026 EBIT estimate by around 5.5%, forecasting £1.13 billion versus company guidance of roughly £1 billion. It also projected adjusted earnings per share of 26.9p for fiscal 2026 and 33.5p for fiscal 2027, both exceeding consensus expectations.

Analysts noted steady momentum in Sainsbury’s grocery operations and improvements at Argos, which has returned to positive sales growth after several quarters of decline.

“We now sit c10% above the company guidance for retail Adj. operating profit of c£1bn (c10% above consensus as well),” JPMorgan said in its report.

Sector data supported the brokerage’s view. In the four weeks to 10 August, Sainsbury’s sales rose 4.8% year-on-year, outpacing total market growth of 4%, according to Worldpanel by Numerator. The grocer also gained 12 basis points of market share, while competitors Asda and Morrisons continued to lose ground.

JPMorgan highlighted upcoming catalysts, including easier September comparisons, the Christmas trading season, and continued strength in Sainsbury’s “Taste the Difference” premium range, which expanded 15% in fiscal 2025. The line has grown from £1.2 billion in 2019/20 sales to £1.6 billion in 2023/24, averaging roughly 7% annual growth.

The analysts valued Sainsbury using a discounted cash flow model, assuming a weighted average cost of capital of 10.2% and a terminal growth rate of 1%, arriving at a fair value of 363p per share by February 2027.

JPMorgan stated that the Positive Catalyst Watch reflects short-term confidence ahead of upcoming results, noting that its broader “overweight” rating continues to rely on the stability of the U.K. grocery market and ongoing capital return prospects.

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.

Shield Therapeutics (LSE:STX) has successfully secured £1.5 million through the placement of new ordinary shares, driven by strong institutional investor demand, to support the growth of its flagship product, ACCRUFeR®, in the U.S. market. The share issuance, completed at a premium, will strengthen the company’s working capital, expand its shareholder base, and position Shield to accelerate sales with the goal of achieving positive cash flow by the end of 2025.

The company’s outlook is shaped by strong technical performance, reflecting positive market momentum. However, financial challenges—including negative profitability and cash flow constraints—remain significant. Valuation metrics, such as a negative P/E ratio and the absence of a dividend yield, also weigh on the stock’s attractiveness.

About Shield Therapeutics

Shield Therapeutics plc is a commercial-stage specialty pharmaceutical company focused on treating iron deficiency with its innovative therapy, ACCRUFeR®/FeRACCRU® (ferric maltol). In the U.S., the company operates through a collaboration with Viatris and has licensed its product to pharmaceutical partners in Europe, China, and Japan. ACCRUFeR® is the first FDA-approved oral iron therapy for iron deficiency and anemia, addressing a significant unmet medical need.

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.

S4 Capital Plc (LSE:SFOR) reported a 12.7% decrease in net revenue for H1 2025, with operational EBITDA down nearly 31%. Despite these setbacks, the company improved its net debt position by £37 million, demonstrating effective cash flow management. The firm remains focused on its strategy of AI-driven solutions aimed at enhancing productivity and client engagement. Key new business wins, including partnerships with General Motors and Amazon, are expected to contribute to stronger performance in H2 2025. The board is also considering an enhanced final dividend for the year, contingent on improved second-half results and liquidity targets.

S4 Capital’s outlook reflects ongoing financial challenges and valuation concerns, with a negative P/E ratio and declining revenues. Technical indicators present mixed signals, while the earnings call highlighted both achievements and hurdles. Although the dividend yield provides some support, high leverage and profitability issues continue to pose risks.

About S4 Capital Plc

S4 Capital Plc is a digital advertising and marketing company specializing in digital transformation through first-party data. The firm creates, produces, and distributes digital advertising content and is organized into two main divisions: Marketing Services and Technology Services. Its unified structure aims to provide clients with seamless solutions, particularly in volatile economic conditions.

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.

Fiinu Plc (LSE:BANK) has successfully raised up to £900,000 through the issuance of 4,500,000 new ordinary shares at 20 pence each. The fundraise, representing a 33% premium over a previous subscription, will bolster the company’s working capital, supporting enhanced operational capacity and reinforcing its market position.

About Fiinu Plc

Fiinu Plc is an AIM-listed financial services company (ticker: BANK) focused on delivering innovative banking solutions and financial products. The firm specializes in leveraging technology to enhance customer experience and operational efficiency in the financial sector.

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.

Bango PLC (LSE:BGO) posted a 5% increase in total revenue to $25.2 million for H1 2025, alongside a 66% rise in adjusted EBITDA. The company’s Digital Vending Machine® (DVM) platform doubled active subscriptions to 19.2 million, driven by both new customer acquisitions and greater adoption among existing clients. Strategic partnerships and the launch of a fully integrated Super Bundling platform have reinforced Bango’s presence in the subscription bundling market, positioning the company for future growth and stronger cash generation.

Bango’s outlook is supported by robust financial performance, particularly in revenue growth and cash flow stability. However, mixed technical signals and the absence of profitability and dividend yield temper expectations, resulting in a moderate overall outlook.

About Bango PLC

Bango PLC helps content providers expand their paying customer base through global partnerships. It revolutionizes digital content monetization by enabling online payments for mobile users worldwide. The Digital Vending Machine® is central to the growth of the subscriptions economy, supporting major clients such as Amazon, Google, and Microsoft in scaling their subscriber networks.

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.

Itaconix plc (LSE:ITX) announced record half-year revenues of $4.8 million for the period ending 30 June 2025, marking a milestone in establishing its products as essential ingredients in sustainable consumer goods. The company launched BIO*Asterix® and expanded its SPARX™ collaborations, creating three distinct revenue streams. Itaconix also strengthened its partnership with Croda, mitigated international trade risks, and invested in marketing and supply chain resilience. With a solid balance sheet and a growing pipeline of opportunities, the company is well-positioned for long-term growth and shareholder value.

Despite revenue growth and a strong equity base, Itaconix faces challenges in profitability and cash flow. Technical indicators suggest bearish trends, and valuation metrics remain weak. Nevertheless, the company’s strategic initiatives and product innovations provide a positive outlook and support future growth potential.

About Itaconix

Itaconix plc is a leading developer of sustainable plant-based polymers, focused on enhancing the safety, performance, and environmental profile of consumer and industrial products. Using itaconic acid, the company produces high-performance materials for multiple applications, including detergents, paints, and coatings, with the goal of replacing fossil-based chemicals.

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.

Steppe Cement Ltd (LSE:STCM) reported a 19% increase in revenue to USD 40.9 million for H1 2025, driven by an 18% rise in sales volumes. While the company recorded a net loss of USD 0.5 million, its financial position improved compared with the prior year. The Kazakh cement market expanded by 19% during the same period, although Steppe Cement expects slower growth in H2 2025. The company is prioritizing ecological compliance and exploring ways to enhance clinker production, while navigating challenges such as rising electricity costs and general inflation.

Steppe Cement’s outlook reflects solid financial fundamentals, supported by strong cash flow and low leverage. Nevertheless, technical indicators point to weak market momentum, and the high P/E ratio raises valuation concerns. Positive corporate developments and a robust dividend yield provide some balance, but further improvements in revenue growth and asset management are needed to enhance the company’s prospects.

About Steppe Cement

Steppe Cement Ltd operates in the cement industry, focusing on the production and sale of cement products. Listed on the AIM market, the company holds a significant market share in Kazakhstan, targeting around 14% of the domestic market.

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.