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European shares rise as Micron's forecast is a success, reviving the AI rally
European shares opened higher on Thursday, led by gains in technology stocks. Micron and Qualcomm's strong forecasts assuaged fears about the sector's inflated valuations, while oil prices eased further. By 0711 GMT, the?pan European STOXX 600 was up by 0.27% to 636.88. The AI rally is back on the agenda - as U.S. chipmakers Micron & Qualcomm released strong forecasts. This temporarily calmed investor concerns that a rally of global AI-linked shares had gone too far. European?tech shares, which rose by 30% in the last quarter, led the gains on the benchmark. Infineon and STMicroelectronics chipmakers gained 5,2% and 3,7% respectively. Semiconductor equipment suppliers BE Semiconductor, and ASML, each climbed more than 3%. Siemens Energy, a maker of AI equipment, added 1%. Investor sentiment was also boosted by the continued decline in oil prices, as more oil?tankers left the Strait of Hormuz. H&M's shares fell 1.2% among individual stocks after the Swedish fashion retailer announced a second-quarter operating profit that was below expectations. Retail as a whole was up by 0.4%. easyJet's shares rose 5.5% after it rejected a fourth takeover bid from a U.S. investment firm Castlelake. Reporting by Utkarsh hathi and Johann M Cherian in Bangaluru, Editing by Sonia Cheema
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Gulf crisis affects Australian and New Zealand companies, from airlines to banks
The U.S. and Israel war against Iran is causing financial stress for companies in Australia and New Zealand. Higher fuel prices are stoking inflation, reducing consumer and business confidence and weighing on corporate earnings. Some of the companies in Australia and New Zealand have made an impact. Air New Zealand: New Zealand’s flag carrier predicted its largest annual pre-tax losses in four years. This was two months after withdrawing their earlier 2026 forecast, as the Iran War pushed up jet oil prices, increasing costs, and compounding the pressure of weak demand and fleet restrictions. Air New Zealand has forecast a loss of between NZ$340 and NZ$390 (between $201.8 million and $2231.5 million) for the year. This is a significant change from last year's NZ$189million profit. Air NZ announced in March that it had suspended its earnings forecast for the full year and raised fares because of volatility in jet fuel prices. It was one of first airlines to announce a price increase. Auckland International Airport, New Zealand: Auckland International Airport reported that flights to the Middle East from Auckland were affected. In March, the number of passengers on Middle Eastern routes dropped by 81% and seat capacity fell by 73% compared to a year earlier, according to airport operator. a2 milk: New Zealand-based a2 Milch cut its profit forecast for fiscal 2026 as increased freight costs due the conflict and temporary disruptions in the supply chain affected the availability of the China-label formula infant milk product on its largest market. Cleanaway Waste Management: The company has slashed the full-year forecast for operating earnings by approximately A$20,000,000 ($14.17million), due largely to higher costs, reduced activity, and differences in timing of cost recovery. Cochlear, an Australian manufacturer of hearing implants, has lowered its profit forecast for 2026 due to a?weaker trade in developed markets', citing lower surgical volumes, less hearing-aid referrals, and softer consumer confidence. The Middle East War has increased the risk of order cancellations and delivery delays, as well as a higher exposure to receivables. This will also worsen margin pressures and increase restructuring costs. Fletcher Building Fletcher Building in New Zealand said that it is 'indirectly exposed to the Middle East conflict through supply chains, freight lines, energy costs and the wider economic impact of construction demand throughout Australasia. Construction materials manufacturer expects to increase prices in all divisions as a result of passing on costs to its customers. Plastics, where the company claims immediate exposure is present, will experience price increases of up to 36%. Other divisions will only see a 1%-5% increase. Flight Centre Travel: Flight Centre Travel, an Australian corporate travel manager, has lowered its profit forecasts for 2026. They cited a drop in international leisure travel due to the Gulf Conflict. The company now expects to earn a profit before taxes of A$275 to A$295 millions for the fiscal year ending June 30. This is down from the previous target?of A$310 to A$345million. The company revised its estimate for the leisure segment from A$10 to A$50, up from the original estimate made in April. Fonterra: New Zealand dairy manufacturer Fonterra stated that the conflict is impacting their supply chain and could increase their inventory levels and costs during the second half of the year. National Australia Bank: National Australia Bank expects to incur credit loss charges of A$706 ($504.44 millions) in the first fiscal half of 2026. NAB stated that the volatility of interest rates in the second quarter, the weaker New Zealand Dollar and the increase in provisioning would result in a reduction of the common equity tier one capital ratio for the group by approximately 20 basis points on March 31. The company also plans to apply a discount of 1.5% to its dividend reinvestment program for the first half to raise A$1.8 billion and help strengthen its balance sheet. Orora Packaging Company: Orora has lowered its earnings forecasts for its French division Saverglass, and cancelled the share buyback program. The company cited the impact of war. Due to the closures of shipping routes, the company also stopped bottle production in its glass production plant at Ras al-Khaimah (United Arab Emirates). Qantas Airways: Qantas Airways is Australia's national carrier. It has raised its fuel costs outlook for the second half of the year up to A$800m. However, it still hasn't started the planned A$150m share buyback, citing the volatile and sharply increased jet fuel prices. Qantas has raised fares to offset the rising cost of its flights and shifted them towards stronger routes, such as Paris or Rome, where demand is still strong. They have also reduced their domestic capacity in the second quarter by approximately 5 percentage points. Qube Holdings: Qube anticipates that the Middle East conflict will have an impact on its?EBITA earnings of between A$10 and A$20 million in fiscal 2026. The logistics firm stated that recent events could encourage an increase in investment in alternative energy projects. This could be beneficial for the company. Virgin Australia: Virgin Australia said that it expected fuel costs to increase by around A$30 to A$40 Million ($21.39 to $28.52 millions) in the second half fiscal 2026. In mid-March, the airline announced that it would be adjusting its fares due to rising costs in the aviation industry. Westpac: Westpac is Australia's second-largest bank in terms of assets. The lender said that the energy market shocks caused by the conflict led to profit pressures during the first half the financial year ending March 31. This prompted the lender to increase its credit provisions. Westpac's net interest margin for its Treasury and Markets division has been weakened amid the interest rate volatility related to the conflict. A weaker outlook is already leading to higher credit provisioning. Westpac has increased its provision for bad debts since the COVID-19 pandemic. Woolworths Woolworths is the largest Australian supermarket. It said that the Middle East conflict had created uncertainty for both customers and suppliers, adding to the already high cost of living. Fuel price pressures and investments in customer retention will also affect the firm's forecast for fiscal 2026. Woolworths has also announced that it will freeze the prices of 300 household staples from May 1 for three months, as cost pressures imposed by conflict on Australian suppliers have pushed up prices across all supermarkets. Worley: Worley, an engineering firm, said that it had nearly doubled the projected underlying operating income for its full-year due to project delays. The Sydney-based firm expects to take a A$60 million hit, up from a previous estimate of A$30-40 million.
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Trump asks Congress to increase pensions for former GM Parts Company workers by $1 billion
The White House asked Congress for $1 billion on Wednesday to increase the pensions of former General Motors Auto Parts Unit Delphi workers that were reduced during a bankruptcy restructuring in 2009. As part of a supplemental request, the?White?House also wants to raise $1 billion for reconstruction work at New York's Penn Station. It is also requesting $500 million to continue construction on Washington's World War II Memorial and Tidal Basin. The White House wants Congress to allow the Federal Aviation Administration to reallocate funds from the $12.5 billion modernization of air traffic control effort approved last year, to any priority other than the spending plans for air traffic set by Congress last year. Delphi cut pensions for over 20,000 retirees on a salary, including 5,000 in Ohio. Some suffered?pension cuts of up to 70 percent, and legislators have been pushing to restore these cuts for years. The Pension Benefit Guaranty Corporation received the pensions for salaried employees as part of the $50 billion bailout that GM received in 2009 under the Obama administration. GM has declined to comment. The Transportation Department announced last month that it would provide another $200 million for construction to begin by the end next year of an $8 billion plan to redevelop Penn Station. Amtrak, the U.S. passenger rail company, said that it plans to replace aging walkways and open modern concourses with newer ones. Penn Station is America's busiest transit hub, serving 10 million Amtrak riders annually and 100 millions total passengers including regional train systems. New York has decided not to move Madison Square Garden. The Garden is located on top of Penn Station, and hosts the New York Knicks Basketball team, New York Rangers Hockey team, and various sporting events, concerts, and shows. (Reporting and editing by Sonali Paul; David Shepardson)
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No tsunami warning following M6.9 earthquake in Japan's northeast
The Japan Meteorological Agency announced on Thursday that no tsunami warning had been issued following an earthquake of magnitude?6.9 which struck the east coast of Japan's northeastern Tohoku area. The agency stated that the epicentre was located off the coast of Iwate Prefecture at a depth of 50km. No tsunami damage is expected except for "slight changes in sea level". It said that the earthquake in Aomori had an intensity of 6+, which is a situation where "it's impossible to stand or move without crawling" on a Japanese scale from 0-7. Tohoku Electric Power has said that no irregularities have been found in the nuclear power plants?Onagawa & Higashidori, which were idled following the earthquake. East Japan Railway said it had halted certain trains, including the high-speed Shinkansen services in?Tohoku?. Japan is one of the most seismically active areas in the world. Japan is home to one-fifth the world's earthquakes of magnitude 6 or greater. (Reporting from?Kantaro Kommiya in Tokyo, and Natalia Bueno Rebolledo at Mexico City. Editing by Chris Reese, Christopher Cushing and Christopher Reese)
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Nasdaq and S&P finish lower as tech stock fall
Falling crude prices boosted airline and travel stocks, and the Dow closed higher. As more tankers are expected to leave the Strait of Hormuz, oil prices have?fallen?to the lowest level since the beginning of the Iran War. Donald Trump, the U.S. president, said that Iran told Washington there were no tolls being collected. S&P 500 passenger airline index rose 5.2%, while Expedia Group and Booking Holdings also saw gains. The tech stocks fell, causing the focus to shift towards Micron Technology's earnings after the bell. The stock is up more than 200% since?2026, but it closed Wednesday's trading down 0.3%. The stock soared in extended trading when quarterly revenue and forecasts for the fourth quarter exceeded Wall Street expectations. Cerebras Systems fell?19.6% when the chip designer predicted that full-year profits would fall below first-quarter figures. This was in its first report following going public. OpenAI's announcement of its "own inference chip" called Jalapeno also weighed on the stock. The Nasdaq 100 has lost more than $1 trillion in value this week due to fears about debt-backed hyperscaler spending and a Federal Reserve that is more hawkish. Michael Monaghan is Founder ETFs' portfolio manager and partner. He said that the Middle East discussion was wrapping up. Energy prices were dropping. "But, you continue to have the AI CapEx Buildout where, for whatever reason, people prefer the recipients of spending and punish those who are doing it." Six out of 11 major S&P sectors rose, with industrials rising by the most (1.2%). Consumer discretionary stocks rose by 0.8% to help offset the largest losses in energy and tech stocks. The Dow Jones Industrial Average gained 182.06 points or 0.35% to 51,848.90. The S&P 500 dropped 7.24 points or 0.10% to 7,358.22. And the Nasdaq Composite fell?110.40, or 0.4%, to 25,476.64. Homebuilders surged after Trump cancelled a scheduled signing of bipartisan legislation designed to speed up the availability of affordable housing. Hovnanian Enterprises jumped 11.3%. PulteGroup soared 7.2%, and Toll Brothers rose by 6.7%. Hertz, among other movers in the market, fell 40.7%. The car rental firm announced that it expected second-quarter adjusted core earning near the lower end its forecast range and proposed an offering of $100 million common stock. According to CME Group’s FedWatch, traders are increasing their bets on a second rate increase by the Fed before the end of the month. The market had previously?expected' a 25-basis point rise. The Personal Consumption Expenditures Index, which is the Fed's preferred measure of inflation, may provide a hint on Thursday as to the direction the monetary policies will take. On the NYSE, declining issues outnumbered advancing ones by a ratio of 1.03 to 1, with 205 new highs compared to 226 new lows. On the Nasdaq 2,323 stocks rose, while 2,499 fell. Declining issues outnumbered advancers by 1.08 to 1 ratio. S&P 500 recorded 25 new 52-week lows, while Nasdaq Composite registered 206 new highs. The volume on U.S. stock exchanges was 25,84 billion shares compared to the average of 22.92 billion shares for the entire session in the past 20 trading days. Abigail Summerville reported from New York and Twesha Dhikshit and Joel Jose were in Bengaluru. David Gregorio edited the story.
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Nasdaq and S&P finish lower as tech stock fall
The Nasdaq, S&P 500 and Dow closed lower on Tuesday, with tech stocks being the main drag. As more tankers are expected to leave the Strait of Hormuz, oil prices have fallen to their lowest levels since the beginning of the Iran War. U.S. president Donald Trump claimed that Iran told Washington there were no tolls being collected. The S&P 500 index of passenger airlines rose. The tech?stocks fell, causing the focus to shift towards Micron Technology's results after the bell. The stock is up more than 200% in 2026, but it fell on Wednesday. Cerebras Systems fell after the chip designer predicted that full-year profits would fall below "first-quarter figures" in its first report following going public. OpenAI's own inference chip, Jalapeno, also weighed on the stock. The Nasdaq 100 has lost more than $1 trillion of market value this week due to fears about debt-backed spending by hyperscalers. Michael Monaghan is Founder ETFs' portfolio manager and partner. He said that the Middle East discussion was wrapping up. Energy prices were dropping. "But there is still the AI CapEx buildout, where people, for whatever reason, like the recipients and punish those who are spending." The preliminary data shows that the S&P 500 dropped 5.86 points or 0.08% to 7,358.72, and the Nasdaq Composite fell 104.58 or 0.41% to 25,482.46. The Dow Jones Industrial Average rose 187.97 or 0.36% to 51,854.81. Homebuilders surged after Trump cancelled a planned signature of 'bipartisan legislation to'speed up the availability of affordable housing. Hovnanian, PulteGroup, and Toll Brothers were all up. Hertz, among other car rental firms, tumbled after it announced that it expected second-quarter core earnings to be near the lower end its forecast range and proposed an offering of $100,000,000 of common stock. According to the CME Group's FedWatch, traders are increasing their bets on a second rate increase by the Fed before?the end?of December. Markets had previously expected a 25-basis point rise. The Personal Consumption Expenditures price index, the Fed’s preferred inflation measure, could provide insight into the monetary policies path on Thursday. Reporting by Abigail Summerville, Twesha Dhikshit and Joel Jose from Bengaluru. Editing by David Gregorio.
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Airbus inspects some A380 jets for cracks on wings
Airbus announced on Wednesday that it would support?inspections of a subset?of?A380 aircraft, after Europe's aviation regulator had ordered urgent 'checks' on the wing structures of these?jets. The European Aviation Safety Agency (EASA), the agency responsible for ensuring aviation safety in Europe, published an urgent airworthiness directive Monday. It required inspections of 16 A380s and warned about cracks discovered in wing spars which could have a negative impact on structural integrity. Five planes must be inspected prior to the next flight, and the rest within 25 flight cycles. Flightradar24, which tracks flights, says that 15 of the affected aircraft were operated by Emirates, and one was operated by Qantas in Australia, based upon the manufacturer serial numbers. Emirates has not responded to a comment request. Airbus has identified a small group of aircraft that have similar histories, and is'supporting' inspections for those jets. A spokesperson for the company said that, "Depending on the results of the inspection, Airbus will determine with EASA if?repairs? are required or if?the aircraft can return to commercial service?." EASA stated that cracks found in certain aircraft could reduce the structural integrity of the wing. The A380 is the largest passenger airliner in the world. Airbus ended production of its?jet, which was introduced in 2007, in 2021 due to a waning demand. Bill Berkrot, Gianluca Nostro and Tim Hepher; Reporting by Hugo Lhomedet.
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Binance vows that it will remain in Europe despite a license setback
Binance, the crypto platform, plans to remain in 'the European Union, and will seek permission to operate there again, according to a senior executive. This is after Binance's application under a reformed?licence regime was rejected, which threatened access to millions of users. Gillian Lynch told? that Binance was not going to leave Europe after the failed attempt to obtain a license in Greece for the purpose of offering services like crypto trading within the EU. She said, "We might just need to take a different route in order to be approved." "If Greece is not an option, I am looking at alternatives." Binance is now on a collision course with European regulators. The company only has a week to obtain a license before the current permit to operate in Europe expires. This would force it to shut down its EU operations. Binance, according to two people familiar with the process, has met with regulators from Ireland and Greece. However they have not been able to reach an agreement. Officials expressed concern about the past money-laundering penalties of the company, its international structure, and what they perceived as a culture of risk taking. The regulators in all three countries refused to comment or didn't respond. The letters sent to regulators show how one of the largest crypto companies in the world has struggled with regulatory resistance and obtaining an EU license. Lynch stated that Binance didn't know the reason for its rejection and had previously believed that the Greek regulator intended to grant a license. She stated that Binance contacted at least four regulators, but had only submitted one application to Greece. Binance's spokesperson said that the company has not been in contact with Ireland's central banks for several years. Lynch, when asked about Binance's previous problems, said that Binance had invested heavily in compliance and internal control, had employed 1,500 compliance personnel, and did not have any outstanding issues relating to its application. Regulatory Concerns Binance's failure to obtain an EU license before the deadline of June 30 raises doubts about its future within the EU. The EU's new crypto regulations will be tested to see if authorities can enforce what amounts to a prohibition. The European Securities and Markets Authority (ESMA) said on Tuesday that crypto firms without a license must "take immediate measures to wind up their EU activities in a timely manner". MiCA (the EU's groundbreaking crypto regime) came into effect last year. Firms have until the end of June to get an authorisation to serve customers in all 27 member states. Binance claims to have more than 300 millions customers worldwide, but has declined to disclose how many of those are in the EU. Sensor Tower estimates that the app was downloaded over 4 million times last year in the EU, with France, Germany, and Spain being the most popular downloads. Sources who spoke on condition of anonymity said that regulators evaluating Binance's offer were also concerned with the backgrounds of senior executives, and the exchange’s track record in money laundering controls. They viewed these as being inadequate. One source pointed to the influence and complexity of Binance's global structure, which was attributed to founder Changpeng Zhao. Zhao said in a podcast in February that he remained Binance’s ultimate beneficial owner. Lynch told Zhao that Zhao was "100% removed from the company." Binance struggled in the past to gain regulatory approvals elsewhere. Binance is not authorised in the UK, and it was asked to leave Japan for operating without a license. Its primary licence is in the United Arab Emirates. Zhao, also known as CZ, pleaded guilty in 2023 to violating U.S. laws against money laundering as part of an $4.3 billion settlement after a year-long investigation. He spent nearly four months behind bars before being pardoned by U.S. president Donald Trump last year. Binance, according to U.S. authorities, has violated anti-money laundering laws and sanctions laws by failing to report over 100,000 suspicious transactions that were linked to groups designated as terrorist organizations in Washington. COORDINATION OF REGULATORS MiCA allows crypto firms to?apply via a single regulator national and use this as a "passport". This will allow them to sell services throughout the bloc. One source said that regulators in Latvia, Ireland, and Greece worked closely together to ensure "a consistent approach" to Binance’s application. Some regulators are concerned that inconsistent enforcement may undermine efforts to supervise a multi-billion dollar industry. They warn it could destabilise the markets, facilitate illegal finance, and harm investors if properly supervised. Eleanor Hughes, Binance's general counsel, said that Binance believed it met MiCA requirements. While national regulators issue licences, ESMA can discuss applications. Reporting by John O'Donnell and Elizabeth Howcroft. Francesco Canepa, Lefteris papadimas. (Editing by Tommy Reggiori Wilkes. ElisaMartinuzzi, Mark Potter and Mark Potter.
South Korea's labour minister urges tech companies to share AI profits with their suppliers and staff
South Korea's Labour Minister called on major tech companies to share their windfall profits. He warned that the AI boom, which has brought unprecedented gains in the chip sector, could widen the gap between rich and poor.
Kim Young-hoon said in an interview that companies such as Samsung Electronics who?outperform their profit targets, should consider sharing the excess gains after subtracting taxes with their suppliers, subcontractors, and their employees, given their contribution to corporate growth.
He said that the South Korean government, business, 'unions, and suppliers' should have a dialogue on how to share these "excess profit" and reduce the gap between larger conglomerates, and smaller suppliers.
Kim, an ex-labour activist appointed by the left-leaning South Korean president Lee Jae Myung helped broker a pay deal at the last minute between Samsung and its union. This prevented a major strike, and gave hefty bonuses for its memory-chip employees.
In his first foreign interview since the Samsung deal, Kim's proposal for distribution reveals some of the unconventional ideas being considered by top South Korean policymakers as they try to grapple with the huge windfall that the country has received due to the global boom in artificial intelligence. Kim said, "We should establish new rules for distribution by social dialogue." It is indisputable that Samsung's impressive achievements are the product of the hard work and dedication of both management and labour.
There are 1,700 suppliers as well as contributions by local communities including water and electricity.
The use of AI has fueled a surge in demand for memory chips, resulting in a huge increase for Samsung and SK Hynix.
Samsung has agreed that it will give employees special bonuses if the company achieves an annual operating profit of more than 200 trillion won (129,3 billion dollars) from 2026-2028.
Kim raised the issue of a public discussion on "what to do with excessive corporate profits" in late May. He has since announced that he will host a forum to discuss the topic. He discussed his thoughts on how to share excess profits, such as by adjusting suppliers' prices, for the first time.
Kim was criticized by South Korea's conservative People Power Party, which claimed that he raised "a dangerous notion of state intervention" and undermined the foundations of the?free market economy.
The South Korean presidential office has not responded to a request for comment about this story. The South Korean presidential office has said that Kim's remarks raised important questions and it welcomed the idea of debate. Last month, a high-ranking South Korean official suggested that citizens receive a "dividend", using the excess tax revenue generated by AI profits.
Samsung and SK Hynix refused to comment.
KIM: REINVESTMENT IS NOT COMMUNISM
Kim rejected PPP's claim his proposal was "communism," stating that it would be reinvesting in the supply chain and improving competitiveness, as well as helping South Korea overcome the challenges of low growth.
He said, "What I meant by distribution was sharing profits with the suppliers." This is clearly reinvestment.
Kim suggested that adjusting the contract prices of suppliers could be discussed.
He said that such profits could be used to invest in talent for small suppliers. South Korean job seekers prefer larger conglomerates such as Samsung over smaller companies due to wage differences, benefits and other reasons. He said that the divide will widen when workers at large companies get hefty bonuses for their performance, thanks to the AI boom.
He said, "This is worrying."
Government data shows that the income gap between South Korea's bottom 20% of households and the top?20% increased by the most since six years during the first quarter.
Kim stated that a worsening of inequality would slow down the growth of Asia's 4th largest economy.
SAMSUNG AVERTED STRIKE
It is rare for the South Korean labour minister to get involved in negotiations between unions and companies.
Kim claimed that he did so on the request of Samsung Management and the union, after talks had repeatedly broken down. He said a strike lasting 18 days could have severely hurt South Korea's stock market and economy. Kim said that both Samsung and the labour organizers were inexperienced at such negotiations, as Samsung has long had a "no-union" policy. They also had a difficult time figuring out the best way to distribute the unprecedented profits between different stakeholders within the company.
He said: "I told President Lee I would use my experience as a leader in the labour movement to establish a relationship with him."
Analysts say the Samsung deal may encourage?unions to demand better remuneration at other companies.
Kim stated that he didn't want to be involved with every negotiation. He believes there needs to be an underlying framework to help union-company discussions moving forward.
But challenges remain for Samsung. Kim stated that the management of Samsung must address discontent within its own ranks over the disparity in pay between its non-memory chip and memory-chip divisions. This could lead to a defection among foundry workers.
He said that rewards must be given for short-term results. "However the company must also invest in and motivate the strategic talent for the medium- to long-term."
(source: Reuters)