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  • U.S. futures decline as Netflix outlook disappoints and geopolitical risks mount: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. futures decline as Netflix outlook disappoints and geopolitical risks mount: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. equity futures traded lower on Friday as investors balanced weaker-than-expected guidance from Netflix (NASDAQ:NFLX), renewed concerns over artificial intelligence spending and escalating tensions between the United States and Iran.

    At 02:57 ET (06:57 GMT), Dow Jones futures were down 336 points, or 0.6%, while S&P 500 futures lost 66 points, or 0.9%. Nasdaq 100 futures led the declines, falling 488 points, or 1.7%.

    Wall Street ended Thursday’s session in negative territory, with the Dow Jones Industrial Average slipping 0.2%, the S&P 500 falling 0.5% and the Nasdaq Composite retreating 1.47%.

    Market attention remained firmly focused on the technology sector. Analysts at Vital Knowledge said investors continue to question the sustainability of heavy AI investment and the financial returns expected from the industry’s rapid expansion.

    Vital Knowledge analysts wrote: “[T]he list of things worrying people will sound familiar to anyone following the space: the absence of free cash flow for hyperscalers/neoclouds, costs that seem to scale higher with revenue, the reliance on capital markets […] to fund capex […], the huge pipeline of debt/equity supply that’s washing over markets, the increasingly poor financial/fundamental prospects for bleeding edge frontier labs […], and questions about data center overcapacity.”

    Netflix guidance disappoints investors

    Netflix (NASDAQ:NFLX) fell more than 8% in extended trading after issuing third-quarter guidance that failed to meet market expectations.

    The streaming company forecast earnings per share of $0.82, below analysts’ consensus of $0.84, while expected revenue of $12.86 billion also missed estimates of $13.0 billion.

    Despite the softer guidance, Netflix told investors that its business “remains solid” and said it is “on track to meet our objectives for the year.”

    The company also confirmed that, beginning in January 2027, viewing-hours data will be published annually instead of twice each year, continuing its strategy of placing greater emphasis on financial performance rather than engagement metrics.

    Earnings season continues

    Investors are also preparing for fresh quarterly updates from The Travelers Companies (NYSE:TRV), Truist Financial Corporation (NYSE:TFC), Fifth Third Bancorp (NASDAQ:FITB) and Regions Financial Corporation (NYSE:RF).

    According to Vital Knowledge, management commentary across corporate America has remained broadly constructive despite concerns surrounding AI spending, energy markets and geopolitical uncertainty.

    Recent U.S. economic data have also remained supportive, with resilient retail sales, lower jobless claims, stronger regional manufacturing activity and softer-than-expected inflation readings.

    Oil rises as conflict escalates

    Military exchanges between the United States and Iran continued for a sixth consecutive day, with both sides launching new strikes.

    U.S. Central Command said its latest operations were designed to weaken Iranian military capabilities while “holding Iran accountable” for attacks on commercial shipping.

    Iranian media reported damage to civilian infrastructure, including bridges and a railway station, while renewed uncertainty surrounding shipping through the Strait of Hormuz supported oil prices.

    Brent crude gained 0.7% to $84.81 per barrel, while West Texas Intermediate rose 1.0% to $79.76.

    SpaceX postpones Starship test

    SpaceX (NASDAQ:SPCX) delayed the launch of its Starship rocket after several engines failed to ignite properly during the countdown in Texas.

    Chief Executive Elon Musk suggested another launch attempt could take place next week. Shares fell more than 4% in after-hours trading following the announcement.

  • Market Open: Burberry Q1 Sales Growth, Wise Q1 FY27 Growth

    Market Open: Burberry Q1 Sales Growth, Wise Q1 FY27 Growth

    Markets opened cautiously as Middle East tensions weighed on sentiment. Burberry and Wise reported strong updates while Brent crude moved higher.

    Market Overview

    The FTSE 100 opened broadly unchanged at 10,572.39, while the Euronext 100 slipped 0.14 per cent and Germany’s DAX fell 0.53 per cent at the open. Overnight, the Nasdaq closed lower at 25,881.95 and the S&P 500 finished at 7,533.77, with both US benchmarks declining as investors reacted to renewed US-Iran tensions. Market sentiment remained cautious amid geopolitical uncertainty, although stronger corporate earnings helped limit losses across European markets.

    Macro sentiment was shaped by firmer energy prices as Brent crude advanced on escalating Middle East tensions and concerns over potential disruption to Red Sea shipping. Gold edged higher on safe-haven demand, copper weakened, and natural gas eased slightly. Against sterling, the US dollar, Swiss franc and euro strengthened marginally, while the Japanese yen and Australian dollar were little changed. Bitcoin was down.

    Market Numbers

    FTSE 100: Up (0.001%), 10,572.39

    Euronext 100: Down (-0.14%), 1,917.90

    DAX: Down (-0.53%), 24,783.56

    NASDAQ: Down, 25,881.95

    S&P 500: Down, 7,533.77

    In the Headlines

    Luxury Retail – Burberry Group (LSE:BRBY)

    Burberry reported a 5 per cent rise in first-quarter comparable sales as strong demand in the Americas and China offset weaker trading across Europe. The update suggests the group’s turnaround efforts are gaining traction despite uneven regional consumer spending.

    Fintech Growth – Wise plc (LSE:WSE)

    Wise delivered strong first-quarter FY27 growth as customer numbers and cross-border payment volumes continued to increase. The performance highlights ongoing demand for low-cost international money transfers and supports confidence in the company’s long-term growth strategy.

    Currencies (vs GBP)

    USD: Up (0.03%), $1.3478

    CHF: Up (0.02%), Fr.1.0897

    EUR: Up (0.02%), €1.1776

    JPY: Up (0.01%), ¥218.8535

    AUD: Unchanged (0.00%), $1.9253

    Bitcoin (BTC/GBP): Down, £46,662.10

    Commodities

    Copper: Down

    Gold: Up

    Brent Crude: Up

    Natural Gas: Down

  • European shares retreat as Middle East tensions offset strong earnings momentum: DAX, CAC, FTSE100

    European shares retreat as Middle East tensions offset strong earnings momentum: DAX, CAC, FTSE100

    European equity markets moved lower on Friday as renewed military escalation in the Middle East lifted oil prices and revived inflation concerns. Even so, a solid start to the second-quarter earnings season helped limit losses, leaving major indexes on course to finish the week in positive territory.

    The pan-European STOXX 600 slipped 0.6% during early trading but was still on track for a weekly advance of around 0.4%. Strong corporate results, particularly from leading banking groups, have supported investor sentiment throughout the week and helped cushion the broader market.

    Investor confidence was challenged after the United States and Iran exchanged military strikes for a sixth consecutive day. The latest escalation pushed crude oil prices sharply higher, fuelling concerns that sustained energy inflation could slow the global disinflation process and complicate future monetary policy decisions by major central banks.

    Despite the geopolitical backdrop, European markets proved more resilient than their Asian counterparts, where technology stocks led a much steeper sell-off overnight. Europe’s comparatively smaller exposure to mega-cap technology companies helped limit the downside.

    Within the semiconductor sector, STMicroelectronics (BIT:STMMI) declined 5%, while ASML (EU:ASML) fell 3.5%.

    Investors continued to focus on encouraging corporate earnings and signs of easing inflation in the United States earlier this week, both of which helped reduce immediate concerns over higher global interest rates despite the worsening geopolitical environment.

    Attention is now turning to next week’s European Central Bank policy meeting.

    Most economists expect the ECB to leave its benchmark deposit rate unchanged. However, the recent jump in oil prices has led money markets to increase expectations that interest rates could move higher later if inflationary pressures persist.

    The central bank is expected to balance weakening economic growth across the eurozone against the risk that higher energy costs could generate fresh inflationary pressures.

    Across Europe’s major markets, London’s FTSE 100 fell 0.3% but remained on course for a weekly gain, supported by banking shares. France’s CAC 40 declined 0.6%, Germany’s DAX eased 0.5%, while Italy’s FTSE MIB lost 1% and Spain’s IBEX 35 slipped 0.3% as investors reduced exposure to risk assets.

    Among individual companies, Danske Bank (TG:DSN) declined 2.5% following the release of its latest quarterly results.

  • FTSE 100 slips as renewed U.S.-Iran conflict dampens market sentiment

    FTSE 100 slips as renewed U.S.-Iran conflict dampens market sentiment

    London equities came under pressure on Friday after giving up early gains, as a sixth consecutive night of U.S. military strikes on Iran weighed on global risk appetite. The cautious mood followed broad declines across Asian markets, prompting investors to move away from risk assets.

    At 03:17 ET (07:17 GMT), the FTSE 100 was 0.05% higher, although gains proved fragile. Germany’s DAX declined 0.42%, while France’s CAC 40 fell 0.53%. Sterling eased 0.03% against the U.S. dollar to $1.3472.

    Asian markets endured a sharp sell-off led by Japan, where the Nikkei 225 dropped 3.96% and the TOPIX lost 2.72%. Semiconductor shares came under pressure despite a positive long-term outlook from TSMC.

    In Taiwan, TSMC recovered from earlier losses to close 1.23% higher as investors assessed the company’s increased capital expenditure guidance alongside broader concerns over artificial intelligence spending.

    Chinese equities also weakened. The Shanghai Composite declined 3.05%, the CSI 300 fell 3.60%, and Hong Kong’s Hang Seng Index closed 2.1% lower.

    Geopolitical tensions intensified after U.S. Central Command confirmed it had completed a sixth straight night of strikes against Iran. CENTCOM said fighter aircraft, drones and warships targeted “dozens” of military sites, adding that more than 50,000 U.S. personnel are now deployed across the region.

    The latest military action follows the collapse of a 14-point memorandum of understanding agreed in June.

    Iranian state media reported that overnight strikes hit an airport, railway station and bridges in Hormozgan province near Bandar Abbas. Casualty reports varied, with state television initially reporting three deaths and nine injuries before other state outlets later revised the death toll to “at least seven” while maintaining that nine people were wounded.

    Iran responded by targeting U.S. military infrastructure in Kuwait, Bahrain and Qatar. Kuwait’s military said it was “confronting attacks by hostile drones” from Iran, although no confirmed damage to U.S. facilities was reported.

    Speaking on Thursday, U.S. President Donald Trump said the United States was “winning big” in Iran and that Americans would see “the fruits” of the campaign “very, very shortly,” although he did not provide further details during his televised address on election security.

    Earlier in the day, White House press secretary Karoline Leavitt said Iran “very much continues to talk” with Washington despite the ongoing strikes, which she said were carried out in response to Iran attacking commercial vessels in breach of the June agreement.

    Commodity markets reflected the heightened geopolitical uncertainty. Brent crude rose 0.33% to $84.50 a barrel, while U.S. West Texas Intermediate crude gained 0.73% to $79.52. Spot gold advanced 0.56% to $3,998.72 an ounce, with gold futures adding 0.26% to $4,002.32.

    UK market round-up

    Wise (LSE:WSE) reported a 25% increase in first-quarter net revenue, supported by continued growth in cross-border payment volumes and customer balances. The fintech group also reaffirmed its guidance for the full financial year.

    Burberry (LSE:BRBY) posted 5% growth in first-quarter comparable store sales, matching market expectations as robust demand in the United States offset weaker consumer spending across Europe and the Middle East amid ongoing regional tensions.

  • Burberry releases Q1 FY27 trading update and holds investor webcast (BRBY)

    Burberry releases Q1 FY27 trading update and holds investor webcast (BRBY)

    Burberry Group PLC (LSE:BRBY) has published its trading update for the first quarter of the 2027 financial year, providing investors with the latest overview of trading performance at the British luxury fashion group.

    The update has been released through the London Stock Exchange’s regulatory disclosure service and is also available in the Results, Reports and Presentations section of Burberry’s corporate website.

    To accompany the announcement, the company is hosting a virtual presentation for investors and analysts at 9:00 a.m. UK time. The webcast is being streamed live through Burberry’s website, with presentation slides available during the event and an indexed replay scheduled to be published afterwards.

    The presentation forms part of Burberry’s ongoing investor relations programme, providing shareholders and analysts with an opportunity to review the company’s latest financial and operational performance while maintaining transparency around its strategic progress.

    Burberry’s broader outlook remains mixed. While recent profitability has come under pressure and leverage has increased, the business continues to benefit from resilient cash generation, and management has expressed greater confidence in performance during FY27. Technical indicators remain weak, with the shares trading below key moving averages, while the company’s valuation continues to appear demanding based on its elevated price-to-earnings ratio.

    More about Burberry

    Burberry Group PLC is a British luxury fashion house headquartered in London and is internationally recognised for its premium clothing, accessories and signature Burberry Check pattern. The company is listed on the London Stock Exchange as a constituent of the FTSE 100 and also has American depositary receipts (ADRs) trading in the United States.

    Its portfolio includes globally recognised trademarks such as the Burberry Check, the Equestrian Knight Device and the Thomas Burberry Monogram. Serving customers worldwide through a combination of retail stores, digital platforms and wholesale partnerships, Burberry remains one of the UK’s best-known luxury brands.

  • Wise reports strong Q1 FY27 growth as customer numbers and cross-border payments continue to expand (WSE)

    Wise reports strong Q1 FY27 growth as customer numbers and cross-border payments continue to expand (WSE)

    Wise Group plc (LSE:WSE) delivered a strong start to the 2027 financial year, with double-digit growth across customers, payment volumes and revenue as the company continued to expand its global cross-border payments platform while lowering prices for users.

    During the first quarter, active customers increased 21% year-on-year to 11.9 million. Cross-border payment volumes rose 26% to $69.3 billion, while customer balances grew 31% to $41.2 billion, reflecting increasing adoption of the platform for both international transfers and everyday money management.

    Net revenue climbed 25% to $714 million, supported by a 27% increase in transaction revenue. Despite the strong growth, Wise reduced its average cross-border take rate by two basis points to 0.50%, as the company continued to reinvest operating efficiencies into lower fees to strengthen its competitive position and attract additional customers.

    The speed of transactions also continued to improve, with 77% of cross-border transfers now completed instantly. Alongside operational improvements, Wise expanded its presence in Latin America by introducing new services for customers in Chile, further broadening its international footprint.

    Management reaffirmed its outlook for the full financial year, maintaining guidance for mid-teens net revenue growth and a pre-tax profit margin towards the upper end of its long-term target range of 20% to 25%.

    More about Wise PLC

    Wise Group plc is a global financial technology company focused on providing fast, low-cost international money transfers and multi-currency financial services. Listed on both the London Stock Exchange and Nasdaq, the company enables individuals and businesses to hold, send, receive and spend money in more than 40 currencies through its Wise Account and Wise Business platforms.

    In addition to serving retail and business customers, Wise also provides cross-border payment infrastructure to banks and large enterprises. During fiscal 2026, the company processed more than $240 billion in international payment volumes for approximately 19 million customers, making it one of the world’s largest digital cross-border payments providers.

    Wise’s strategy centres on reducing the cost and speed of international money transfers through technology while expanding geographically and increasing the range of everyday financial services available on its platform.

  • Alumasc reports resilient FY26 performance as order book jumps 49% (ALU)

    Alumasc reports resilient FY26 performance as order book jumps 49% (ALU)

    Alumasc (LSE:ALU) delivered a resilient financial performance for the year ended 30 June 2026 despite challenging conditions across its commercial construction markets, with a sharp increase in its order book providing encouragement for future trading.

    The group expects to report revenue of approximately £107 million and underlying profit before tax of around £10 million. Although both figures are slightly lower than the previous financial year, they are broadly in line with revised market expectations amid a more difficult economic and geopolitical backdrop.

    A renewed commercial strategy helped drive a 49% year-on-year increase in the order book, supported by strong performances from the Housebuilding Products and Building Envelope divisions. The significant improvement in contracted work provides greater visibility over future revenue and points to improving momentum heading into the new financial year.

    The Water Management division experienced a notable decline in reported revenue, largely reflecting a challenging comparison with the previous year’s major Hong Kong airport project. However, management said commercial initiatives and operational efficiency programmes are beginning to deliver positive results as the business works to improve performance.

    Housebuilding Products achieved revenue growth of around 16%, outperforming the wider housing market and gaining market share despite subdued activity among UK housebuilders. Meanwhile, the Building Envelope division maintained broadly stable revenue despite ongoing volatility in the construction sector.

    Alumasc also retained a strong financial position, with net bank debt equivalent to around 0.5 times earnings, supported by disciplined working capital management. The company has continued to hold additional inventory to help mitigate potential supply chain disruption linked to geopolitical tensions in the Middle East.

    Management remains cautious about the wider economic outlook, citing affordability pressures, planning delays and political uncertainty in the UK construction market. However, the stronger order book, ongoing improvements in the Water Management business and the group’s focus on regulated, specification-led markets are expected to support medium-term growth and margin recovery during FY27.

    Although recent technical indicators remain relatively weak, Alumasc continues to benefit from solid financial performance, a strong balance sheet and an attractive dividend yield, providing support for its longer-term investment case.

    More about Alumasc

    Alumasc Group is a UK-based manufacturer and supplier of sustainable building products, systems and technical solutions for regulated construction markets. The business operates through three principal divisions: Water Management, Building Envelope and Housebuilding Products, with the majority of revenue generated from specification-led projects governed by building regulations.

    Its specialist product portfolio includes drainage systems, roofing solutions and housebuilding components designed for commercial and residential developments. By focusing on technically differentiated products specified by architects, engineers and contractors, Alumasc has established strong positions in several niche areas of the construction supply chain.

  • Saga selects PwC as external auditor from 2028 following competitive tender process (SAGA)

    Saga selects PwC as external auditor from 2028 following competitive tender process (SAGA)

    Saga plc (LSE:SAGA) has appointed PricewaterhouseCoopers LLP (PwC) as its new independent external auditor, with the change due to take effect for the financial year ending 31 January 2028 following a formal audit tender process.

    The appointment was approved by the board after a review led by the company’s Audit and Risk Committee and remains subject to shareholder approval at Saga’s 2027 Annual General Meeting. Until then, KPMG LLP will continue to serve as the group’s external auditor for the financial year ending 31 January 2027.

    The board thanked KPMG for its service since its appointment in 2017 and said the transition to PwC forms part of the company’s regular governance and audit rotation process.

    The appointment of a new Big Four audit firm represents an important governance milestone, reinforcing Saga’s commitment to strong financial oversight, effective risk management and high standards of corporate reporting. A periodic change in external auditor is widely regarded as good governance practice, providing an independent perspective on financial reporting and internal controls.

    Saga’s broader outlook continues to benefit from improving financial performance and stronger recent cash generation. However, investors remain mindful of the company’s relatively high leverage and limited equity base. While technical indicators present a mixed picture, valuation remains constrained by negative earnings and the absence of a dividend yield.

    More about Saga plc

    Saga plc is a UK-based specialist provider of products and services for people aged over 50. The company operates across insurance, travel and financial services, offering tailored products designed to meet the needs of the UK’s growing older population.

    Through its well-established consumer brand, Saga focuses on delivering age-specific services while building long-term customer relationships. Its strategy centres on combining trusted products with strong customer service to support sustainable growth across its core markets.

  • Itaconix raises 2026 revenue guidance after delivering record first-half sales growth (ITX)

    Itaconix raises 2026 revenue guidance after delivering record first-half sales growth (ITX)

    Itaconix (LSE:ITX) has increased its revenue outlook for 2026 after reporting record first-half sales, driven by strong demand across its portfolio of plant-based specialty ingredients and continued growth in key international markets.

    Unaudited revenue for the first six months of 2026 increased 72% year-on-year to $8.3 million, while gross margins remained stable at 36%. The performance was supported by broad-based growth across the business, with Performance Ingredients for dishwashing and laundry detergents recording higher sales in both Europe, the Middle East and Africa (EMEA) and North America.

    The company also reported continued momentum for its SPARX formulated solutions, particularly in solid unit-dose cleaning products. At the same time, longer-term commercial opportunities continued to develop in the paints and agricultural sectors, where Itaconix is expanding applications for its plant-based polymer technology.

    Following the stronger-than-expected first-half performance, the board now expects full-year 2026 revenue of at least $14.8 million, ahead of previous market forecasts of $13.3 million. Management also reaffirmed guidance for a small positive EBITDA for the year, despite ongoing investment in product development and expanding its workforce.

    The updated outlook highlights Itaconix’s growing presence in the market for sustainable cleaning and specialty ingredients. The company is scheduled to publish its interim results in September, when investors will receive a more detailed update on operational and financial performance.

    Although revenue growth and margins continue to improve, the company’s broader financial profile remains affected by ongoing losses and negative cash flow. Technical indicators also remain weak, with the shares trading below key moving averages, while valuation metrics continue to reflect the company’s loss-making status and lack of a dividend.

    More about Itaconix

    Itaconix plc is a specialty chemicals company that develops high-performance, plant-based polymers for consumer and industrial applications. Its proprietary technology platform supplies ingredients used in home care, hygiene and cleaning products, with additional applications in paints, coatings and agriculture.

    The company’s product portfolio includes BIO*Asterix monomers and binders alongside BioVail plant nutrition products, supporting its strategy of expanding into higher-value specialty chemical markets through sustainable, bio-based alternatives to conventional materials.

  • Smiths News wins long-term magazine distribution contracts covering all of Great Britain (SNWS)

    Smiths News wins long-term magazine distribution contracts covering all of Great Britain (SNWS)

    Smiths News PLC (LSE:SNWS) has secured new long-term wholesale agreements with Frontline Limited and Seymour Distribution Limited, strengthening its position in the UK print distribution market and securing nationwide magazine distribution rights across Great Britain from April 2030.

    The new contracts extend Smiths News’ appointment until April 2037, providing long-term visibility over distribution volumes and increasing commercial certainty for the business. Once the agreements come into effect, the company will become the exclusive distributor for magazine titles across the whole of Great Britain.

    Frontline and Seymour together account for more than 60% of the UK magazine market, and the contracts are expected to contribute approximately £105 million in additional annual revenue when fully implemented. The agreements build on recently announced contract renewals with News UK and Associated Newspapers, further strengthening Smiths News’ long-term distribution portfolio across both newspapers and magazines.

    Management said the latest contract wins reinforce the resilience of the print magazine sector and underline the company’s role as a strategic distribution partner for publishers and retailers throughout the UK. The expanded agreements also provide a stable platform for future revenue generation and operational planning.

    The company’s broader investment outlook remains supported by an attractive valuation, including a relatively low price-to-earnings ratio and a strong dividend yield. Positive technical indicators also suggest favourable market momentum, although investors continue to monitor the group’s relatively high debt levels and negative equity position despite healthy cash generation and efficient operations.

    More about Smiths News PLC

    Smiths News PLC is the UK’s largest newspaper and magazine wholesaler, providing nationwide distribution services for publishers through an extensive logistics network. The company delivers newspapers, magazines, books and home entertainment products to more than 22,000 retail locations across England and Wales, while also offering recycling and supply chain services.

    Its high-density distribution network combines warehousing, reverse logistics and time-sensitive final-mile delivery to support one of the UK’s largest print media supply chains. Alongside its core newspaper and magazine operations, Smiths News continues to expand into complementary distribution and logistics services that build on its established infrastructure and operational expertise.