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Rising energy needs in data centers are expected to drive significant growth in the global power equipment sector, with the segment tied to data centers projected to double over the next five years.

Tommy Leong, former senior vice president at Schneider Electric (EU:SU), shared insights during an expert call with Bank of America, highlighting artificial intelligence as a major growth driver. He also predicts that the broader power equipment market could see its size double within the next decade.

“The expert is positive on demand from AI, and he estimates the data center-related power equipment market size to double in the next 5 years,” BofA said, noting that rising AI demand is putting pressure on supply chains.

European multinational suppliers are currently facing lead times of 12 to 24 months, compared to 6 to 12 months for Chinese competitors. Meanwhile, transformer prices have surged 50% over the past five years, fueled by both demand growth and volatile commodity prices. This trend is opening doors for Chinese manufacturers to gain market share, a dynamic Leong expects to persist over the next five to ten years.

The evolution of the market is also influenced by higher standards in artificial intelligence data centers (AIDC). Tier-4 facilities, which dominate the premium segment, allow just 10 minutes of annual downtime and require complete redundancy. By comparison, tier-3 centers can tolerate up to 30 minutes of downtime with less stringent redundancy.

Such high standards are increasing demand for dry-type transformers, gas-insulated switchgear, and other power quality solutions. While North America remains the largest source of demand, Leong sees growing interest in the Middle East and anticipates eventual expansion across Asia.

“Currently, data centers in Southeast Asia still mainly focus on cloud computing instead of AI,” BofA notes.

In Southeast Asia, Leong identifies three market tiers: optimum, medium, and minimum. European and U.S. companies dominate the high-end optimum segment, while Japanese and Korean suppliers excel in the medium tier. Chinese firms, historically focused on the lowest tier, are now making inroads into the medium segment due to tight supply and rising demand.

Leong emphasizes that the top-tier segment remains difficult to enter because of strict regulations, certification requirements, and customization needs.

Beyond Southeast Asia, Chinese companies are also gaining ground in the Middle East and Belt and Road regions, often supported by engineering, procurement, and construction (EPC) projects.

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 first half of 2025 saw a modest rebound in U.K. corporate earnings, with financial firms leading the gains while energy companies continued to weigh on overall results, according to a recent note from Deutsche Bank Research.

FTSE 100 earnings fell 2% year-on-year in H1, an improvement compared with the 5% decline recorded in the latter half of 2024. Stripping out the energy sector, earnings actually rose 5%. Around 70% of companies surpassed analyst expectations, producing an aggregate earnings surprise of 5%.

Sequentially, earnings rose 7% compared with late 2024, benefiting from stronger GDP growth and more favorable comparisons. Financials and industrials contributed most to the gains, while energy and basic materials remained the weakest performers.

Overall sales dipped 1% year-on-year but still exceeded forecasts by 2%, supported by strong performance in financials and consumer discretionary sectors. Margins widened as earnings outpaced revenue growth.

Guidance from U.K. companies remained largely stable, though upgrades outnumbered downgrades. Approximately 27% of firms raised their outlooks, compared with just 8% issuing reductions, with most upgrades coming from financials, staples, and industrials.

For the full year, consensus forecasts still anticipate a 2% decline in FTSE 100 earnings, or a 2% increase if energy is excluded. Estimates remain below pre-2024 trade deal levels, despite the U.K. economy expanding 0.3% in Q2, making it the second fastest-growing G7 economy in H1. Deutsche Bank expects FTSE 100 earnings to rise close to 2% in 2025, noting that consensus may be conservative given stronger GDP growth and easing trade uncertainties.

In the FTSE 250, where roughly a third of companies had reported, earnings grew 5% year-on-year and beat expectations by the mid-teens collectively. Much of this strength was driven by Ocado (LSE:OCDO). Excluding Ocado, earnings fell 3% and missed estimates by mid-single digits. Staples and technology sectors provided the strongest support, while consumer discretionary and basic materials dragged on performance.

Looking ahead, consensus anticipates low-teens earnings growth in H2 for the FTSE 250, with small- and mid-cap firms expected to grow around 8%, while large-cap companies may see a 2% decline.

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

Shares of Morgan Advanced Materials (LSE:MGAMM) jumped more than 4% on Friday following the company’s announcement that it has sold its Molten Metal Systems division to Vesuvius (LSE:VSVS) for £75.8 million.

The deal includes Morgan’s 75% holding in Morganite Crucible (India) Ltd. and is expected to finalize by early October 2025, pending shareholder approvals, the company said in a regulatory filing.

Under the agreement, Morgan will receive roughly £55.8 million in shares of Vesuvius-listed Foseco India Ltd. through a share swap, along with £20 million in cash for the remaining operations. The Indian shares will be subject to a six-month lock-up period under applicable regulations.

Molten Metal Systems, part of Morgan’s Thermal Products segment, produces crucibles used in processing non-ferrous metals such as zinc, aluminum, copper, brass, and bronze. The unit operates facilities in China, Germany, and India. In 2024, it generated £42.5 million in revenue, representing 4% of the group’s total, with an adjusted operating profit of £5.2 million.

Morgan stated that the transaction values the business at 13.2 times its 2024 adjusted operating profit, after accounting for approximately £7.3 million in capital gains tax.

The Thermal Products segment posted £418.2 million in revenue and £40 million in adjusted operating profit last year. The transaction structure combines a share exchange for the Indian operations with a cash purchase for the remainder of the business.

On an enterprise value basis, the deal includes the £75.8 million consideration plus the 25% minority stake in Morganite Crucible (India) Ltd. Approval from Foseco India shareholders, in which Morgan holds 75%, is required; no separate vote from Morgan or Vesuvius shareholders is needed.

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) extended its recent declines on Friday, hitting $112,943.4 by 05:29 GMT, as investor caution intensified ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech. The world’s largest cryptocurrency is down nearly 4% this week, pressured by profit-taking after reaching all-time highs earlier in August. Other major digital assets also retreated, pointing to broader weekly losses across the crypto market.

Attempts to support crypto sentiment fell flat, despite reports that China may explore state-backed, yuan-denominated stablecoins to encourage yuan trading—a market the country effectively shut down in 2021.

Rate cut bets fade as Powell speech approaches

Bitcoin’s slide reflects waning expectations for U.S. interest rate cuts in September. CME FedWatch data showed the probability of a 25-basis-point cut now stands at 73.1%, down sharply from more than 90% last week. The minutes from the Federal Reserve’s late-July meeting indicated that most policymakers favor holding rates steady in the near term.

Powell, speaking later at the Jackson Hole Symposium, has remained cautious about signaling future rate cuts, noting uncertainties surrounding the inflationary effects of President Donald Trump’s trade tariffs. Positive U.S. economic data, including stronger-than-expected August purchasing managers index readings, further dampened rate-cut expectations.

Extended periods of higher interest rates generally weigh on speculative assets such as cryptocurrencies, as tighter monetary conditions reduce liquidity and make riskier investments less attractive. Bitcoin previously faced steep declines during the Fed’s rate hikes in 2022 and 2023, but rallied sharply when easing began in 2024.

Altcoins follow Bitcoin lower amid profit-taking

Other cryptocurrencies mirrored Bitcoin’s slide. Ether (ETH) fell 0.9% to $4,277.18, down 3.2% on the week, while XRP declined 2.2%, tracking a 7.6% weekly drop. Cardano (ADA) and Solana (SOL) each shed 2.5%, posting weekly losses above 7%. Meme coins were hit as well, with Dogecoin (DOGE) down 2.8% and $TRUMP tumbling 4.6%.

Market participants now await Powell’s address for fresh guidance on U.S. monetary policy, which could set the tone for crypto and broader risk assets in the near term.

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 edged lower in Asian trading on Friday as investors remained cautious ahead of signals on U.S. monetary policy from Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium.

Despite the minor pullback, crude was on track for a weekly gain, supported by mounting signs that peace negotiations between Russia and Ukraine are stalling, heightening concerns over potential supply disruptions.

Stronger-than-expected U.S. demand also provided support. Data showed a draw of 6 million barrels from U.S. inventories in the week to August 15, exceeding forecasts and signaling robust domestic fuel consumption.

By 21:20 ET (01:20 GMT), Brent crude futures declined 0.2% to $67.51 a barrel, while West Texas Intermediate (WTI) crude futures fell 0.3% to $62.95 a barrel.

Weekly Gains Driven by Stalled Peace Talks

Brent and WTI have climbed between 1.5% and 3% so far this week, largely recovering losses from the early part of the week. Oil initially fell as U.S. diplomatic efforts to broker a Russia-Ukraine peace appeared to advance, but markets are increasingly skeptical that a deal will materialize soon.

President Donald Trump recently met with Russian President Vladimir Putin, Ukrainian President Volodymyr Zelensky, and several European leaders. However, no definitive outcomes emerged, leaving questions around the timing of talks and the scope of security guarantees for Ukraine unresolved.

Both Russia and Ukraine blamed each other for delays in the peace process, while continuing military operations. On Thursday, Russia launched a major air strike on Ukraine after Kyiv reported striking an oil refinery. The ongoing conflict also raises the prospect of tighter U.S. sanctions on Russian crude, with Trump having proposed 50% tariffs on Indian imports of Russian oil.

U.S. Demand Strengthens, Markets Eye Jackson Hole

U.S. demand signals have further buoyed oil prices this week. Alongside the notable inventory draw, August purchasing managers index (PMI) data showed improvements in manufacturing and services, indicating sustained economic activity.

Market attention now turns to Powell’s address at the Jackson Hole Symposium for guidance on interest rates and the broader economic outlook. Expectations for a September Fed rate cut have eased, providing some pressure on crude this week as the dollar strengthened.

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 eased in Asian trading on Friday, pressured by a firmer U.S. dollar as investors scaled back expectations for additional interest rate cuts ahead of a key speech by Federal Reserve Chair Jerome Powell. Broader precious metals also retreated, reflecting the dollar’s strength, which is poised for notable weekly gains.

Spot gold fell 0.3% to $3,328.37 an ounce, while gold futures dropped 0.3% to $3,371.15/oz by 00:54 ET (04:54 GMT). Some safe-haven demand limited further losses, as geopolitical uncertainty persists amid signs that a Russia-Ukraine peace agreement remains distant despite U.S. negotiation efforts.

Gold Faces Second Week of Declines

This week, gold has traded down between 0.2% and 0.5%, on track for a second consecutive week of declines. The pullback reflects reduced expectations for a Fed rate cut in September. Minutes from the Fed’s late-July meeting, released Wednesday, showed most policymakers favoring a near-term hold.

Fed funds futures indicate a 73.1% chance of a 25-basis-point rate cut in September, down sharply from last week’s 92.2% probability, according to CME FedWatch. Elevated rates over a prolonged period continue to pressure gold and other non-yielding assets, as higher yields increase the opportunity cost of holding them compared with Treasuries.

Dollar Strength and Market Focus on Powell

Attention now turns to Powell’s address at the Jackson Hole Symposium later Friday, with investors looking for guidance on the future path of interest rates. Markets will watch to see whether Powell references recent data showing modestly lower inflation and a cooling labor market.

The Fed Chair has previously highlighted uncertainty over the inflationary impact of President Donald Trump’s trade tariffs as a key factor influencing the Fed’s rate decisions. This uncertainty has led traders to scale back bets on a September cut, boosting the dollar and applying downward pressure on metals. The greenback is set for a weekly gain of around 0.9%.

Spot platinum slipped 0.7% to $1,347.85/oz, while spot silver fell 0.2% to $38.0735/oz, both poised for slight weekly gains. Among industrial metals, London Metal Exchange copper futures declined 0.2% to $9,724.10 a ton, with COMEX copper futures down 0.3% to $4.4420 a 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.

Gold exploration company Ariana Resources (LSE:AAU) has successfully raised A$11 million (around £5.3 million) in gross proceeds via its Australian Securities Exchange (ASX) dual listing offer, which concluded on August 14, the company confirmed Friday.

The offer was priced at A$0.28 per CHESS Depositary Interest (CDI) and initially aimed to attract between A$10 million and A$15 million from eligible investors in Australia and selected other jurisdictions. Each CDI corresponds to 10 underlying ordinary shares of Ariana Resources.

Through this placement, the company will issue 39,285,714 CDIs, alongside an additional 157,062 CDIs under a separate “Director Offer.” Collectively, these CDIs translate into 394,427,760 new ordinary shares at an effective price of 1.34 pence per share, representing roughly 16.87% of Ariana’s expanded share capital.

The new ordinary shares are expected to begin trading on AIM around September 15, 2025. Once admitted, the company’s total issued ordinary share capital will reach 2,338,378,041 shares, each carrying one voting right.

Ariana Resources is now focused on completing remaining ASX requirements to meet its indicative listing date of September 15 under the ticker AA2.

Ariana Resources operates as a mineral exploration and development group with gold-focused projects across multiple countries. Its portfolio includes the Dokwe Gold Project in Zimbabwe, gold-silver production interests in Türkiye via a joint venture, and copper-gold-silver exploration assets in Cyprus and Kosovo.

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

U.S. stock futures edged slightly lower Friday as investors exercised caution ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium later in the session. Meanwhile, Meta announced a major deal with Google, and uncertainty surrounds production of Nvidia’s key chips.

Powell to Address Markets

Federal Reserve Chair Jerome Powell is scheduled to speak later at Jackson Hole, the central bank’s annual economic symposium and the week’s focal point for investors seeking guidance on the future path of interest rates.

Expectations for a September rate cut surged earlier in the month following surprisingly soft payrolls data, but these bets have moderated significantly over the past week, setting the stage for market volatility during Powell’s remarks.

The pullback comes after hotter-than-expected producer inflation figures, alongside hawkish comments from Fed officials. Kansas City Fed President Jeffrey Schmid, a voting member, noted that the central bank isn’t rushing to cut rates, citing inflation that remains above the 2% target and a resilient labor market.

Separately, Cleveland Fed President Beth Hammack, a non-voting member, voiced concern Thursday that persistent inflation could rule out a September rate cut. Powell’s address also occurs amid stagflation fears, a mix of sluggish growth and sticky inflation that could constrain the Fed’s ability to ease monetary policy.

The Fed chair may also use the platform to emphasize the central bank’s independence, given criticism from former President Trump. Earlier this week, Trump urged Fed Governor Lisa Cook to resign over mortgage allegations raised by a political ally, intensifying his effort to influence the central bank.

U.S. Futures Drift Lower Ahead of Powell

U.S. futures fell Friday as investors awaited Powell’s speech for clues on monetary policy. At 03:00 ET, S&P 500 futures were down 7 points, or 0.1%, Nasdaq 100 futures fell 60 points, or 0.3%, and Dow futures dropped 20 points, or 0.1%.

Major indices closed lower Thursday, with the S&P 500 marking a fifth consecutive day of declines. All three averages are set for a losing week, with the S&P 500 down 1.2%, the Nasdaq Composite down 2.4%, and the Dow Jones Industrial Average on pace for a 0.4% slide. Investors remain cautious, seeking clarity on the interest rate outlook.

On the corporate side, Intuit (NASDAQ:INTU) and Zoom (NASDAQ:ZM) will be in focus after reporting results Thursday after market close.

Nvidia H20 Chip Production Faces Hurdles

Nvidia (NASDAQ:NVDA) has reportedly asked some suppliers to halt production of its H20 general processing units for China, as regulatory scrutiny in Beijing complicates operations.

Reuters reported that Nvidia asked Foxconn to suspend work on the H20 AI chip, the company’s most advanced product currently allowed in China. Additionally, The Information noted that Arizona-based Amkor Technology, handling advanced packaging, and South Korea’s Samsung Electronics, supplying memory, were asked to pause production.

Last month, Nvidia met with the Cyberspace Administration of China, which expressed concerns that the chips might contain certain tracking technology. Nvidia resumed H20 sales in July after shipments were halted in April due to U.S. restrictions. “We constantly manage our supply chain to address market conditions,” Nvidia said in a statement, declining to provide further details.

Meta Signs $10 Billion Deal with Google

Meta Platforms (NASDAQ:META) has inked a $10 billion agreement with Alphabet’s Google (NASDAQ:GOOGL), according to The Information. The deal will see Meta use Google Cloud servers, storage, and services over the next six years.

Meta, alongside other Wall Street AI hyperscalers, is racing to build advanced AI systems while investors push for returns on massive AI investments. Last month, the company raised the lower end of its annual capital expenditure forecast by $2 billion to $66–72 billion.

To help fund the infrastructure for AI, Meta plans to offload $2 billion in data center assets, the company disclosed earlier this month.

Oil Prices Track Weekly Gains

Crude oil prices inched higher Friday, on course to end a two-week decline, amid stalled peace talks between Russia and Ukraine. At 03:00 ET, Brent futures rose 0.1% to $67.68 per barrel, and U.S. WTI futures gained 0.1% to $63.59 per barrel. Both contracts had increased over 1% in the previous session, with Brent up 3% for the week and WTI up roughly 1.4%.

The ongoing war in Ukraine continues to disrupt supply, while a larger-than-expected drawdown in U.S. crude inventories last week signaled strong demand, supporting prices.

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

European equities were mostly lower Friday, pressured by weaker-than-expected German economic data ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech at the Jackson Hole symposium.

As of 08:05 GMT, Germany’s DAX fell 0.1%, the U.K.’s FTSE 100 slipped 0.1%, while France’s CAC 40 gained 0.2%.

German Economy Contracts in Q2

Investor sentiment was weighed down by disappointing growth figures from Germany, the eurozone’s largest economy. GDP contracted 0.3% quarter-on-quarter in Q2, worse than the prior estimate of a 0.1% decline, following a 0.3% expansion in Q1. On an annual basis, GDP increased by only 0.2% after seasonal and calendar adjustments.

The statistics office also revised down GDP data for 2023 and 2024, leaving German output slightly below its 2019 level, highlighting a prolonged period of economic stagnation.

Focus on Powell and Central Bank Panels

Despite the weak data, losses were limited ahead of Powell’s keynote at Jackson Hole—his last as Fed chair—where investors are seeking signals on a potential September rate cut. European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey are also scheduled to speak on various panels.

Trade Deal Concerns

Market participants remain attentive to the EU-U.S. trade agreement signed late last month, which currently excludes the wine and spirits sector. European Union Trade Commissioner Maros Sefcovic emphasized that the door remains open for future negotiations, but warned, “I don’t want to say that it will be easy, regarding reaching agreement with U.S. on wines and spirits sector.”

Corporate Moves

In company news, Akzo Nobel (EU:AKZA) shares climbed after activist investor Cevian Capital disclosed a 3% stake, according to Dutch regulator AFM filings. French industrial gases firm Air Liquide (EU:AI) said it will acquire South Korea’s DIG Airgas from Macquarie Asia-Pacific Infrastructure Fund 2 for €2.85 billion. Meanwhile, Mediobanca (BIT:MB) shareholders rejected a plan to acquire Banca Generali (BIT:BGN), thwarting efforts to block a hostile takeover by Monte dei Paschi di Siena.

Oil Prices Eye Weekly Gains

Crude prices inched higher Friday, poised to end a two-week decline, as signs of stalled Russia-Ukraine peace talks added supply concerns. At 04:05 ET, Brent futures rose 0.2% to $67.77 a barrel, and WTI futures gained 0.2% to $63.66 a barrel. Both benchmarks had climbed more than 1% in the previous session, with Brent up 3% for the week and WTI up around 1.4%. The ongoing war in Ukraine continues to threaten Russian crude supply to global 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.