2025-11-10 12:31
Nov 10 (Reuters) - Wall Street's artificial intelligence-driven rally will extend into 2026, UBS Global Research said on Monday, as the brokerage set the S&P 500 index's (.SPX) , opens new tab year-end target for next year at 7,500, betting on strong corporate earnings and gains in a concentrated but resilient technology sector. The benchmark index is nearing the 7,000-point mark, having closed at 6,728.80 on Friday, spurred by investor optimism around AI, robust corporate profits and expectations of falling interest rates. Sign up here. Big Tech giants like Nvidia (NVDA.O) , opens new tab, Microsoft (MSFT.O) , opens new tab and Alphabet (GOOGL.O) , opens new tab remain key drivers of the rally, with AI-linked spending fueling record capex. "We see S&P 500 earnings growing at 14.4% through 2026. After a couple of slow quarters, growth should begin to accelerate from (the second quarter of next year)," the European brokerage said. It said that although worries about a market bubble and the valuation of AI stocks persist, the effect is likely to be small. GLOBAL OUTLOOK In its note titled 'Global Economics and Markets Outlook 2026-2027,' UBS said it expects the global economy to accelerate in 2026, with business and consumer confidence improving, and major economies to roll out fresh fiscal stimulus. "In the next 4-5 months though, we first need to navigate a soft patch, with tariffs still feeding through to prices (the U.S.) and exports (globally)," UBS cautioned. Among emerging markets, UBS prefers Chinese equities and the yuan. The brokerage said that improving confidence, falling real interest rates and a pickup in credit growth are creating room for emerging market central banks to ease policy further. UBS also said the U.S. dollar and Treasury's safe-haven status loss to German bonds, gold and European axis currencies could change as inflation in the world's largest economy drops sharply in the second half of 2026. https://www.reuters.com/business/finance/ubs-sets-sp-500s-2026-year-end-target-7500-ai-driven-rally-2025-11-10/
2025-11-10 12:24
FTSE 100 and FTSE 250 up above 1% Diageo names new CEO, shares jump Miners rise as copper, gold prices gain IAG rebounds after Friday's slump Nov 10 (Reuters) - UK stocks jumped 1% on Monday, echoing an upbeat mood across global markets on signs that a historic U.S. government shutdown could be nearing its end, while Diageo surged after it appointed a former Tesco (TSCO.L) , opens new tab boss as its CEO. Diageo's shares (DGE.L) , opens new tab gained 7.2%, set for its biggest percentage gain in five years, after the world's largest spirits maker appointed Dave Lewis as CEO. Sign up here. "The stock is unloved after several years of disappointment and the appointment of a highly respected CEO could be enough to win over many investors," said Dan Coatsworth, head of markets, AJ Bell. "However, Lewis knows he will ultimately be judged on results, not hope." Diageo's shares were still hovering near decade-lows, having lost about 27% of their value this year. The blue-chip FTSE 100 (.FTSE) , opens new tab added 1% by 1158 GMT, while the mid-cap FTSE 250 index (.FTMC) , opens new tab climbed 1.1%. Global shares rallied after the U.S. Senate moved forward on a measure to reopen the federal government and end the shutdown. UK stocks recorded a weekly loss on Friday after a selloff in high-flying U.S. tech stocks rippled through global markets and the Bank of England held interest rates as expected. However, a narrow vote and signs that Governor Andrew Bailey might soon join those seeking a rate cut boosted prospect of a move in December once the government's budget was unveiled. Investors will keep an eye on third-quarter GDP data and more corporate earnings this week. UK's precious metal miners (.FTNMX551030) , opens new tab and industrial metal miners (.FTNMX551020) , opens new tab climbed 4.5% and 1.9%, respectively, as gold hit two-week high and copper prices climbed. British Airways parent IAG (ICAG.L) , opens new tab gained 3.4%, having tumbled 11.6% on Friday after reporting weak U.S. demand. London-listed shares of RHI Magnesita jumped 20% after the refractory products supplier reported robust profit margins and reaffirmed its full-year forecast. https://www.reuters.com/business/finance/uk-stocks-jump-us-government-reopening-optimism-diageo-surges-2025-11-10/
2025-11-10 12:15
STOCKHOLM, Nov 10 (Reuters) - Sweden is closer to building new nuclear reactors than it has been for 40 years, utility Vattenfall's CEO said on Monday, after a group of large industrial firms agreed to invest 400 million Swedish crowns ($42.5 million) into small modular nuclear reactors. Industrikraft, a group of 17 industrial companies, including SKF (SKFb.ST) , opens new tab, Volvo Group (VOLVb.ST) , opens new tab and Volvo Cars (VOLCARb.ST) , opens new tab, has agreed to make the investment into Videberg Kraft, a company set up to facilitate the building of several small modular reactors. Sign up here. The group plans to later take a 20% stake in Videberg Kraft, it said in a joint statement on Monday. Vattenfall is planning to build between three and five small modular reactors at its existing Ringhals plant in Varo, southwest Sweden, to provide a total output of around 1,500 MW. Vattenfall CEO Anna Borg said the announcement was an important vote of confidence in new nuclear power in Sweden. "We are closer now than we have been in 40 years and if it is up to us, it will happen," she told reporters, adding that the final decision on the investment was still years ahead. Vattenfall has shortlisted Britain's Rolls-Royce SMR (RR.L) , opens new tab, and U.S. group GE Vernova (GEV.N) , opens new tab, as the two possible suppliers of the nuclear reactors, and Borg said a decision on which one would come in 2026. In total, Sweden is planning up to 12 new nuclear reactors by 2045, which could cost around 400 billion Swedish crowns ($39 billion), with the government offering to share some of the investment risks. ($1 = 9.4155 Swedish crowns) https://www.reuters.com/sustainability/boards-policy-regulation/swedish-industrial-heavyweights-make-400-mln-sek-investment-new-nuclear-power-2025-11-10/
2025-11-10 12:15
Midwest premium up 155% since January US aluminium imports from Canada 70% of total US consumers face intense competition for aluminium LONDON, Nov 10 (Reuters) - Premiums for consumers buying aluminium on the physical market in the U.S. have hit record highs, driven by steep import tariffs and tight supplies globally. President Donald Trump doubled tariffs on aluminium imports to 50% on June 4 with the aim of supporting investment in U.S. production of the metal, which is used in construction as well as power and packaging. Sign up here. Buyers on the U.S. physical market typically pay the benchmark price on the London Metal Exchange plus a premium that covers costs such as freight and taxes. The duty-paid Midwest premium has surged since June, hitting a record 88.10 cents a lb or $1,942 a metric ton on Friday. Added to the aluminium price of $2,850 a ton, a U.S. buyer in the spot market would pay $4,792 a ton. At $2,850 a ton, the duty on U.S. aluminium imports would be $1,425, up from around $560 a ton at the start of the year. Consultancy Harbor Aluminum said the surge was also due to falling aluminium stocks in the U.S. and a "strong conviction" that the tariffs would be permanent, without any exemptions for Canada after Trump called off trade negotiations with its neighbour in October. U.S. aluminium imports from Canada were more than 2.7 million tons or 70% of the total last year, according to Trade Data Monitor. "Trump basically said no deal until the end of his term. So even the optimists around a potential deal have retreated from their position for now," said Dmitri Ceres at U.S.-based aluminium trader PerenniAL. U.S. consumers also face intense competition sourcing aluminium, partly due to China's 45 million ton production cap. Panmure Liberum analyst Tom Price expects an aluminium market deficit of 1.8 million tons this year. "Over the last 2-3 years, China's net exports of refined metal and semi fabricated products have fallen by 900,000 tons a year to 1.9 million tons a year," Price said. "Over the same period, aluminium metal production outside China has fallen 1.1 million tons a year. Together, that’s a two million ton decline in aluminium availability outside China." https://www.reuters.com/world/china/aluminium-premium-hits-record-us-tariffs-global-squeeze-2025-11-10/
2025-11-10 12:09
Nov 10 - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Just as U.S. households were fretting , opens new tab about the effect on travel , opens new tab and the wider economy of the longest-ever government shutdown, the U.S. Senate on Sundayfinally began the process of re-opening Washington , opens new tab, spurring a rally in U.S. stock futures and worldmarkets , opens new tab after a bumpy week. While the process of re-opening government could yet take several days and the proposed Senate bill would only fund government through January, U.S. stock futures jumped about 1% ahead of Monday's bell and Treasury long bond yields briefly touched their highest in over a month. The dollar edged lower as risk appetite appeared to be rekindled, although gold, crude oil prices and bitcoin climbed. The prospect of a deluge of delayed U.S. economic data over the coming weeks is likely to make for noisy and potentially volatile trading, even though there's a chance some reports may never be released in full, due to data-collection issues. Wall Street's VIX volatility gauge, however, slipped back lower from last week's highs and settled at about 18.6 on Monday. The messy economic picture for the Federal Reserve is unlikely to clear up any time soon, with futures currently seeing about a two-thirds chance of another interest rate cut next month. Although the planned end of the Fed's balance sheet rundown from next month ostensibly cossets Treasury markets to some degree, they have to navigate another heavy week of government debt sales - starting with about $58 billion of 3-year notes on Monday. Overseas, Japan's yen weakened again after new Prime Minister Sanae Takaichi said she would work on a new fiscal target over several years to allow more flexible spending - essentially watering down the country's commitment to fiscal consolidation. Takaichi also called for the Bank of Japan to go slow on interest rate hikes, raising pressure on a central bank sizing up its next hike ahead of December's policy decision. Chinese stocks advanced after better-than-feared inflation news at the weekend, which saw annual consumer price growth return to positive territory and producer price deflation easing somewhat in October. While reduced deflation fears may be some relief, they may also cut across pumped-up stimulus hopes to some degree. But there was other worrying news there about the state of domestic demand. China's car sales fell unexpectedly in October from a year earlier, snapping an eight-month growth streak, as consumer sentiment weakened amid reduced tax exemptions and government subsidies. The U.S. earnings season starts to peter out this week meantime and Monday's diary is thin. In company news, drugmaker Pfizer clinched a $10 billion deal for obesity drug developer Metsera, capping a fierce biotech bidding war between the New York-based pharma giant and Danish rival Novo Nordisk. Pfizer stock was up 1% out of hours and Novo Nordisk rose 3% in Europe on Monday. In today's column, I ask whether the economy will be that much easier to make sense of once government data resumes, as the artificial intelligence boom makes accurate measurement of activity extremely difficult , opens new tab. Today's Market Minute Chart of the day Political movement to re-open the U.S. government comes as consumer surveys slumped to near 3-1/2-year lows and households across the political spectrum fretted about the fallout from the longest government shutdown in history. Today's events to watch * U.S. Treasury sells $58 billion of 3-year notes * U.S. corporate earnings: Occidental Petroleum, Paramount Skydance, Tyson Foods, Interpublic * Brazil hosts the United Nations climate summit, COP30 in Belem * German Finance Minister Lars Klingbeil interview with Die Zeit newspaper on government budget, plans for defence spending and compulsory military service Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-11-10/
2025-11-10 11:56
Shell sells MarramWind stake to ScottishPower Renewables Shell refocuses on oil and gas under CEO Wael Sawan ScottishPower to continue MarramWind development LONDON, Nov 10 (Reuters) - Shell (SHEL.L) , opens new tab has exited the MarramWind and CampionWind projects off the coast of Scotland following a strategic review, the company said on Monday, a move that aligns with its current pivot away from renewables. Shell sold its 50% interest in MarramWind to ScottishPower Renewables and returned the CampionWind lease to Crown Estate Scotland, it said. While ScottishPower Renewables said it would continue the development of MarramWind, it was not immediately clear whether CampionWind would move forward as proposed under Crown Estate Scotland. Sign up here. Under CEO Wael Sawan, Shell has pivoted away from renewables and doubled down on oil and gas to boost investor confidence. "After a comprehensive review and in line with Shell’s previously announced refocusing of its power strategy on leveraging Shell’s strengths in trading and retailing, the conclusion was to not take the CampionWind project forward," a Shell spokesperson said. As proposed, CampionWind, 100 km (60 miles) from the east coast of Scotland, could deliver up to 2 gigawatts of power. Crown Estate Scotland said in a statement it will assess options for the CampionWind site in line with market demand. MarramWind, located 75 km off the north-east coast of Aberdeenshire, has a potential capacity of up to 3 gigawatts. If successfully developed, it could power the equivalent of more than 3.5 million homes. "With sole responsibility for MarramWind – alongside our MachairWind project – we will now continue the development of these wind farms and maintain our positive engagement with local people and businesses," a ScottishPower Renewables spokesperson said. ScottishPower Renewables is owned by Spanish utility Iberdrola https://www.reuters.com/business/energy/shell-exits-two-wind-projects-off-uk-coast-after-strategic-review-2025-11-10/
