Global markets were shaped this week by a mix of tech earnings, central bank decisions, and geopolitical developments. US equities saw sharp declines midweek, led by a sell-off in major tech stocks like Meta and Microsoft following disappointing earnings, while Alphabet bucked the trend with record revenues. Is AI a financial bubble?
The Federal Reserve signalled caution on further rate cuts, dampening investor optimism. Meanwhile, the European Central Bank held interest rates steady for a third consecutive time, citing stable inflation and modest GDP growth across the eurozone. In Asia, markets were mixed, with Hong Kong underperforming amid subdued sentiment. A temporary truce between the US and China – featuring reduced tariffs and resumed commodity trade – helped ease global trade tensions.
Commodities rallied, led by grains and metals, while gold surged to more than $4,000 an ounce, reflecting investor appetite for safe-haven assets. Bond markets saw volatility, with US Treasury yields rising after the Fed’s cautious stance.
The FTSE 100 was up 0.8% over the week by mid-session on Friday, with the more UK-focused FTSE 250 trading down 1.3%.
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Donald Trump
Donald Trump’s high-profile Asia tour saw the US president engage in a flurry of diplomatic meetings across Malaysia, Japan, and South Korea, culminating in a closely watched meeting with Chinese President Xi Jinping. In Malaysia, Trump brokered a peace deal between Cambodia and Thailand and signed trade and critical minerals agreements aimed at boosting US exports and supply chain resilience. In Japan, he praised Prime Minister Sanae Takaichi’s pledge to raise defence spending and met with business leaders and US troops. The tour’s centrepiece was his summit with President Xi in South Korea, where both leaders discussed tariffs, fentanyl, rare earths, and Chinese purchases of US soybeans, with Trump teasing a “12 out of 10” meeting and hinting at a major energy deal. The two leaders struck a one-year trade truce aimed at easing tensions between the world’s two largest economies. The agreement includes China resuming large-scale purchases of US soybeans and delaying its controversial export restrictions on rare earth minerals – critical for tech and defence industries. In return, President Trump pledged to reduce tariffs on Chinese goods from 57% to 47%, including halving duties related to fentanyl, after President Xi committed to intensifying efforts to curb the flow of precursor chemicals used in the deadly opioid. While both leaders hailed the meeting as a breakthrough, no formal treaty was signed, and key issues like Taiwan, semiconductors, and human rights were notably absent from the agenda.
The US government shutdown is now the second-longest in history and is edging toward a new record as partisan gridlock over healthcare policy and budget priorities continues to paralyse Washington. The impasse began on 1 October after Democrats blocked a Republican funding bill that excluded extensions to Affordable Care Act subsidies, triggering widespread disruption across federal agencies. Roughly 900,000 federal workers have been furloughed, and essential staff – including military personnel and air traffic controllers – are working without pay. While Senate talks have shown flickers of progress, no breakthrough is imminent, and the House remains out of session. With President Trump abroad on a diplomatic tour, pressure is mounting for lawmakers to resolve the deadlock before critical services collapse and public frustration boils over.
Autumn Budget
Prime Minister Keir Starmer refused to reaffirm Labour’s manifesto pledge not to raise income tax, National Insurance, or VAT ahead of the upcoming Budget, fuelling speculation that tax hikes may be imminent. During a heated Prime Minister’s Questions session, Mr Starmer was repeatedly pressed by Conservative leader Kemi Badenoch to confirm whether the Government would honour its previous commitments. Starmer declined to give a direct answer, citing the economic damage left by the previous Tory administration and insisting that no prime minister or chancellor would reveal fiscal plans before a Budget. He pointed to improved growth figures and falling inflation as signs of Labour’s economic progress, but his evasiveness has led to mounting expectations that Chancellor Rachel Reeves will introduce tax increases to address a significant shortfall in public finances on 26 November.
Economics
The US Federal Reserve cut its benchmark interest rate by 0.25 percentage points to a range of 3.75–4%, marking its second consecutive rate reduction in 2025. The move reflects growing concern over a weakening US labour market, with private-sector payrolls shrinking and unemployment edging up, despite inflation holding at 3% - still above the Fed’s 2% target. Fed Chair Jerome Powell emphasised the need to support employment amid economic uncertainty, especially as the ongoing government shutdown has delayed key data releases. The decision drew dissent from two Fed officials – one favouring a larger cut, the other preferring no change – highlighting internal divisions over the pace of easing. Markets now anticipate a third rate cut in December, with implications for lower borrowing costs, softer mortgage rates, and a more accommodative stance that could boost consumer spending and business investment.
Global markets were shaped this week by a mix of tech earnings, central bank decisions, and geopolitical developments. US equities saw sharp declines midweek, led by a sell-off in major tech stocks like Meta and Microsoft following disappointing earnings, while Alphabet bucked the trend with record revenues. Is AI a financial bubble?
The Federal Reserve signalled caution on further rate cuts, dampening investor optimism. Meanwhile, the European Central Bank held interest rates steady for a third consecutive time, citing stable inflation and modest GDP growth across the eurozone. In Asia, markets were mixed, with Hong Kong underperforming amid subdued sentiment. A temporary truce between the US and China – featuring reduced tariffs and resumed commodity trade – helped ease global trade tensions.
Commodities rallied, led by grains and metals, while gold surged to more than $4,000 an ounce, reflecting investor appetite for safe-haven assets. Bond markets saw volatility, with US Treasury yields rising after the Fed’s cautious stance.
The FTSE 100 was up 0.8% over the week by mid-session on Friday, with the more UK-focused FTSE 250 trading down 1.3%.
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Donald Trump
Donald Trump’s high-profile Asia tour saw the US president engage in a flurry of diplomatic meetings across Malaysia, Japan, and South Korea, culminating in a closely watched meeting with Chinese President Xi Jinping. In Malaysia, Trump brokered a peace deal between Cambodia and Thailand and signed trade and critical minerals agreements aimed at boosting US exports and supply chain resilience. In Japan, he praised Prime Minister Sanae Takaichi’s pledge to raise defence spending and met with business leaders and US troops. The tour’s centrepiece was his summit with President Xi in South Korea, where both leaders discussed tariffs, fentanyl, rare earths, and Chinese purchases of US soybeans, with Trump teasing a “12 out of 10” meeting and hinting at a major energy deal. The two leaders struck a one-year trade truce aimed at easing tensions between the world’s two largest economies. The agreement includes China resuming large-scale purchases of US soybeans and delaying its controversial export restrictions on rare earth minerals – critical for tech and defence industries. In return, President Trump pledged to reduce tariffs on Chinese goods from 57% to 47%, including halving duties related to fentanyl, after President Xi committed to intensifying efforts to curb the flow of precursor chemicals used in the deadly opioid. While both leaders hailed the meeting as a breakthrough, no formal treaty was signed, and key issues like Taiwan, semiconductors, and human rights were notably absent from the agenda.
The US government shutdown is now the second-longest in history and is edging toward a new record as partisan gridlock over healthcare policy and budget priorities continues to paralyse Washington. The impasse began on 1 October after Democrats blocked a Republican funding bill that excluded extensions to Affordable Care Act subsidies, triggering widespread disruption across federal agencies. Roughly 900,000 federal workers have been furloughed, and essential staff – including military personnel and air traffic controllers – are working without pay. While Senate talks have shown flickers of progress, no breakthrough is imminent, and the House remains out of session. With President Trump abroad on a diplomatic tour, pressure is mounting for lawmakers to resolve the deadlock before critical services collapse and public frustration boils over.
Autumn Budget
Prime Minister Keir Starmer refused to reaffirm Labour’s manifesto pledge not to raise income tax, National Insurance, or VAT ahead of the upcoming Budget, fuelling speculation that tax hikes may be imminent. During a heated Prime Minister’s Questions session, Mr Starmer was repeatedly pressed by Conservative leader Kemi Badenoch to confirm whether the Government would honour its previous commitments. Starmer declined to give a direct answer, citing the economic damage left by the previous Tory administration and insisting that no prime minister or chancellor would reveal fiscal plans before a Budget. He pointed to improved growth figures and falling inflation as signs of Labour’s economic progress, but his evasiveness has led to mounting expectations that Chancellor Rachel Reeves will introduce tax increases to address a significant shortfall in public finances on 26 November.
Economics
The US Federal Reserve cut its benchmark interest rate by 0.25 percentage points to a range of 3.75–4%, marking its second consecutive rate reduction in 2025. The move reflects growing concern over a weakening US labour market, with private-sector payrolls shrinking and unemployment edging up, despite inflation holding at 3% - still above the Fed’s 2% target. Fed Chair Jerome Powell emphasised the need to support employment amid economic uncertainty, especially as the ongoing government shutdown has delayed key data releases. The decision drew dissent from two Fed officials – one favouring a larger cut, the other preferring no change – highlighting internal divisions over the pace of easing. Markets now anticipate a third rate cut in December, with implications for lower borrowing costs, softer mortgage rates, and a more accommodative stance that could boost consumer spending and business investment.
London’s latest stock exchange debut from tinned tuna group Princes had a lukewarm reception.
London’s latest stock exchange debut from tinned tuna group Princes had a lukewarm reception.
Policymakers at the European Central Bank (ECB) opted to hold interest rates steady for the second consecutive time, maintaining the deposit facility rate at 2.0%. The decision reflects the ECB’s confidence that inflation is broadly aligned with its 2% medium-term target, with headline inflation at 2.2% and core inflation at 2.4% in September. ECB President Christine Lagarde emphasised a data-dependent, meeting-by-meeting approach, citing easing inflationary pressures and rising productivity as reasons to avoid further tightening. While other major central banks like the US Federal Reserve and Bank of Canada are moving toward rate cuts, the ECB’s cautious stance signals a divergence in global monetary policy paths. The implications for markets include continued euro stability, restrained borrowing costs, and a wait-and-see posture on future rate moves, especially amid persistent global trade uncertainties and geopolitical risks.
Initial public offerings (IPOs)
London’s latest stock exchange debut from tinned tuna group Princes had a lukewarm reception. Princes, a manufacturer of tinned fish, chopped tomatoes and cooking oil, priced its shares at 475p, at the bottom of the range, giving it a market capitalisation of £1.16bn compared to early hopes of a £1.5bn valuation. Shares rose 0.2% on Friday morning. The start of trading was being closely watched in the City following reports of a “soft” level of interest from some funds.
Princes’ listing comes just a day after shares in Shawbrook jumped following London's biggest initial public offering by a UK-based company in two years. The company priced its shares at £3.70 apiece, in the middle of a previously announced range of £3.50 to £3.90, valuing it at about £1.92 billion pounds.
Companies
Apple delivered a robust set of third-quarter results, reporting revenue of $94.04bn – up 10% year-on-year and marking its strongest quarterly growth since 2021. The surge was driven by a 13% rise in iPhone sales, bolstered by strong demand for the iPhone 17 lineup, and a record $27.42bn in services revenue, reflecting the continued expansion of its subscription ecosystem. Earnings per share climbed to $1.57, beating Wall Street expectations. Chief executive Tim Cook highlighted growth across all geographic segments and product categories, while chief financial officer Kevan Parekh noted a new all-time high in Apple’s active device base. Despite tariff-related costs of $800m, Apple maintained a healthy gross margin of 46.5%, underscoring its resilience amid global headwinds.
Amazon posted strong third-quarter results, with revenue rising 12% year-on-year to $180.2bn, beating analyst expectations. The company’s earnings per share surged to $1.95, well above the forecasted $1.57, driven by robust performance in its cloud division, Amazon Web Services (AWS), which grew 20.2% to $33bn – its fastest pace in nearly three years. Advertising revenue also impressed, climbing 22% to $17.7bn. However, operating income was dented by $4.3bn in special charges, including a $2.5bn Federal Trade Commission settlement and $1.8bn in severance costs tied to widespread layoffs. Chief executive Andy Jassy highlighted Amazon’s aggressive investments in AI and infrastructure, including the launch of an $11bn data centre for Anthropic’s Claude models. Despite the earnings beat, shares dipped slightly in after-hours trading, reflecting investor caution amid high capital expenditure forecasts and competitive pressures in cloud and e-commerce.
Google-owner Alphabet posted a record-breaking third quarter, surpassing $100bn in revenue for the first time, driven by robust growth across its core businesses – Search, Cloud, and YouTube. Earnings per share soared to $2.87, beating analyst expectations, while Google Cloud revenue jumped 34% year-on-year to $15.16bn, fuelled by surging demand for AI infrastructure and a $155bn backlog. YouTube advertising revenue rose 15% to $10.26bn, and Alphabet now boasts more than 300 million paid subscriptions. Chief executive Sundar Pichai credited the company’s “full stack” AI strategy – including its Gemini models and TPU-powered infrastructure – for the momentum and raised 2025 capital expenditure guidance to up to $93bn.
Meta posted a record $51.2bn in revenue for the third quarter – up 26% year-on-year – driven by strong advertising demand and user growth across its family of apps, which reached 3.54 billion daily active users. However, earnings were sharply impacted by a one-time, non-cash $15.93bn tax charge stemming from the U.S. Corporate Alternative Minimum Tax under the “One Big Beautiful Bill Act”, slashing net income to $2.71 billion and EPS to $1.05, far below analyst expectations. Excluding the charge, adjusted EPS would have been $7.25. Chief executive Mark Zuckerberg highlighted momentum in AI initiatives, including Meta Superintelligence Labs and AI glasses, while Reality Labs posted a $4.43bn operating loss despite a 74% revenue jump. Meta raised its capital expenditure outlook to $70bn–$72bn for the year, with further increases expected in 2026. The shares fell after the results, triggered by a massive $15.9bn one-time tax charge linked to new US corporate tax legislation, and Meta’s aggressive spending plans.
Microsoft kicked-off its new financial year with a blockbuster first-quarter performance, reporting an 18% year-on-year increase in revenue to $77.7bn and net income of $27.7bn, beating Wall Street expectations despite a global Azure outage and a $3.1bn hit from its deepening investment in OpenAI. Cloud and AI remained the company’s growth engines, with Azure revenue soaring 40% and overall Microsoft Cloud revenue reaching $49.1bn. Chief executive Satya Nadella described Microsoft as a “planet-scale cloud and AI factory,” underscoring continued heavy investment in infrastructure and talent to meet surging demand. The shares fell after the results driven by investor concerns over the company’s escalating capital expenditure plans.
Anglo American delivered a mixed but strategically significant third-quarter performance, with copper output rising 1% to 183,500 tonnes and iron ore production falling 9% to 14.3 million tonnes. The company raised its full-year guidance for Minas-Rio iron ore to 23–25 million tonnes following strong operational results and a successful pipeline inspection. Manganese and diamond production surged – up 140% and 38% respectively – while steelmaking coal output dropped 54% amid ongoing recovery efforts at Moranbah North and Grosvenor. Chief executive Duncan Wanblad highlighted progress in portfolio simplification, including a $2.5bn divestment from Valterra Platinum, and reaffirmed Anglo’s strategic pivot toward copper through a planned merger with Teck Resources and a joint mine plan with Codelco in Chile.
Glencore delivered a robust third-quarter production performance, driven by strong output in copper and coal, prompting the company to reaffirm its full-year guidance across key commodities. Copper production surged 36% quarter-on-quarter, led by significant gains at KCC (+66%), Mutanda (+60%), Antamina (+52%), and Antapaccay (+66%) – although year-to-date copper output was down 17% compared to 2024 due to lower grades and planned mine sequencing. Cobalt and zinc production rose 8% and 10% respectively, while steelmaking coal output more than doubled, up 123% year-on-year.
HSBC reported a resilient third-quarter performance, with revenue rising 3% year-on-year to $17.9bn and profit before tax (excluding notable items) reaching $9.1bn, despite a 14% drop in reported profit due to $1.4bn in legal provisions. The bank saw strong momentum in its wealth division, which posted a 29% increase in fees and other income, and net interest income surged 15% to $8.8 billion. HSBC also announced strategic moves including the proposed privatisation of Hang Seng Bank and exits from 11 non-core markets, reinforcing its focus on simplification and growth.
GSK delivered a strong third-quarter performance, reporting £8.5bn in sales – up 8% at constant exchange rates – driven by double-digit growth in Specialty Medicines (+16%), HIV treatments (+12%), and Oncology (+39%). Core operating profit rose 11%, and core earnings per share climbed 14% to 55p, prompting the company to upgrade its full-year guidance. The quarter also saw four major product approvals, including Blenrep for multiple myeloma and Blujepa for urinary tract infections, while GSK’s pipeline expanded with 15 high-potential assets expected to launch by 2031. Chief executive Emma Walmsley highlighted continued R&D momentum and sustainability progress, notably with the low-carbon Ventolin inhaler, expected to cut emissions by 45%.
Next reported a stronger-than-expected third-quarter performance, with full price sales rising 10.5% year-on-year – £76m ahead of guidance – driven by solid growth both in the UK (+5.4%) and overseas (+38.8%). Online sales of third-party brands led UK growth at 13%, while international online sales surged thanks to increased digital marketing investment. The retailer raised its fourth-quarter sales guidance from 4.5% to 7% and upgraded its full-year profit before tax forecast by £30m to £1.135bn. Chief executive Lord Wolfson credited improved stock availability and operational resilience for the outperformance, noting that last year’s supply chain issues had constrained growth.
Starbucks reported mixed third-quarter results, with consolidated net revenues rising 4% year-on-year to $9.5bn, beating Wall Street expectations, but global same-store sales fell 2%—marking the sixth consecutive quarterly decline. Earnings per share dropped sharply, down nearly 47% from the prior year, impacted by strategic investments in its “Back to Starbucks” turnaround plan and a one-time tax item. The company opened 308 net new stores, bringing its global footprint to more than 41,000 locations, with China showing signs of recovery as comparable store sales rose 2%. Chief executive Brian Niccol said the turnaround is “ahead of schedule”, citing improved US transaction comps and rising partner engagement.
Comcast reported a mixed third-quarter performance, with total revenue slipping 0.6% year-on-year to $29.9bn and net income falling 12.7% to $3.3bn, as higher interest and amortisation expenses weighed on results. Diluted earnings per share dropped 7.7% to $0.89, missing analyst expectations of $1.10. The company saw modest growth in domestic broadband revenue (+1.7%) and international connectivity (+9.5%), despite losing 199,000 US broadband customers. Wireless lines grew by 323,000, and Comcast continued investing in theme parks, with Epic Universe in Orlando set to open in May 2025. Chief executive Mike Cavanagh emphasised strategic shifts in pricing and bundling to counter broadband stagnation, while investors await updates on potential M&A activity, including interest in Warner Bros. Discovery.
Mastercard delivered a strong third-quarter performance, with net revenue rising 13% year-on-year to $7.37bn and adjusted earnings per share climbing 15% to $3.89, beating analyst expectations. Growth was fuelled by a 17% surge in cross-border transaction volumes and “strategic pricing discipline”, while value-added services – such as consulting and marketing – grew 18% on a currency-neutral basis. The company continued its AI-driven expansion with acquisitions such as Recorded Future and Minna Technologies, enhancing its threat intelligence and subscription management capabilities. Operating margin remained stable at 59.3%, and Mastercard returned $2.9bn to shareholders through buybacks.
Shell delivered a solid third-quarter performance, posting adjusted earnings of $5.4bn – beating analyst expectations – and generating $12.2bn in cash flow from operations, driven by record production in Brazil, 20-year highs in the Gulf of America, and strong trading margins. The Marketing division recorded its second-highest quarterly earnings in over a decade, while net debt fell to $41.2bn, reinforcing Shell’s balance sheet strength. Despite a softer energy price environment, Shell announced a new $3.5bn share buyback programme – its 16th consecutive quarter of at least $3bn in repurchases – underscoring its commitment to shareholder returns.
Standard Chartered delivered a strong third-quarter performance, with underlying profit before tax rising 9% year-on-year to $1.99bn and operating income up 5% to $5.15bn. The bank’s strategic focus on cross-border and affluent banking paid off, as Wealth Solutions income surged 27% and Global Banking rose 23%, offsetting a 1% dip in net interest income due to lower global rates. Credit impairments rose 10% to $195m, but cost discipline and targeted investments kept operating expenses growth to 4%. Chief executive Bill Winters said the bank now expects to hit its 13% return on tangible equity target a year ahead of schedule, and upgraded full-year income growth guidance to the upper end of the 5%–7% range.
WPP issued a downbeat third-quarter trading update, revising its full-year organic growth guidance to a decline of 5.5% to 6.0% after reporting a 3.5% like-for-like drop in third-quarter revenue and a 5.9% fall in revenue less pass-through costs. Year-to-date figures also disappointed, with revenue down 8% and revenue less pass-through costs falling 10.5% on a reported basis. Chief executive Cindy Rose acknowledged the performance as “unacceptable” and announced a strategic review aimed at simplifying operations, boosting execution, and expanding into enterprise and tech solutions. She emphasised WPP’s strong client base, global scale, and AI capabilities as key assets for a turnaround, but warned that improvements will take time.
Policymakers at the European Central Bank (ECB) opted to hold interest rates steady for the second consecutive time, maintaining the deposit facility rate at 2.0%. The decision reflects the ECB’s confidence that inflation is broadly aligned with its 2% medium-term target, with headline inflation at 2.2% and core inflation at 2.4% in September. ECB President Christine Lagarde emphasised a data-dependent, meeting-by-meeting approach, citing easing inflationary pressures and rising productivity as reasons to avoid further tightening. While other major central banks like the US Federal Reserve and Bank of Canada are moving toward rate cuts, the ECB’s cautious stance signals a divergence in global monetary policy paths. The implications for markets include continued euro stability, restrained borrowing costs, and a wait-and-see posture on future rate moves, especially amid persistent global trade uncertainties and geopolitical risks.
Initial public offerings (IPOs)
London’s latest stock exchange debut from tinned tuna group Princes had a lukewarm reception. Princes, a manufacturer of tinned fish, chopped tomatoes and cooking oil, priced its shares at 475p, at the bottom of the range, giving it a market capitalisation of £1.16bn compared to early hopes of a £1.5bn valuation. Shares rose 0.2% on Friday morning. The start of trading was being closely watched in the City following reports of a “soft” level of interest from some funds.
Princes’ listing comes just a day after shares in Shawbrook jumped following London's biggest initial public offering by a UK-based company in two years. The company priced its shares at £3.70 apiece, in the middle of a previously announced range of £3.50 to £3.90, valuing it at about £1.92 billion pounds.
Companies
Apple delivered a robust set of third-quarter results, reporting revenue of $94.04bn – up 10% year-on-year and marking its strongest quarterly growth since 2021. The surge was driven by a 13% rise in iPhone sales, bolstered by strong demand for the iPhone 17 lineup, and a record $27.42bn in services revenue, reflecting the continued expansion of its subscription ecosystem. Earnings per share climbed to $1.57, beating Wall Street expectations. Chief executive Tim Cook highlighted growth across all geographic segments and product categories, while chief financial officer Kevan Parekh noted a new all-time high in Apple’s active device base. Despite tariff-related costs of $800m, Apple maintained a healthy gross margin of 46.5%, underscoring its resilience amid global headwinds.
Amazon posted strong third-quarter results, with revenue rising 12% year-on-year to $180.2bn, beating analyst expectations. The company’s earnings per share surged to $1.95, well above the forecasted $1.57, driven by robust performance in its cloud division, Amazon Web Services (AWS), which grew 20.2% to $33bn – its fastest pace in nearly three years. Advertising revenue also impressed, climbing 22% to $17.7bn. However, operating income was dented by $4.3bn in special charges, including a $2.5bn Federal Trade Commission settlement and $1.8bn in severance costs tied to widespread layoffs. Chief executive Andy Jassy highlighted Amazon’s aggressive investments in AI and infrastructure, including the launch of an $11bn data centre for Anthropic’s Claude models. Despite the earnings beat, shares dipped slightly in after-hours trading, reflecting investor caution amid high capital expenditure forecasts and competitive pressures in cloud and e-commerce.
Google-owner Alphabet posted a record-breaking third quarter, surpassing $100bn in revenue for the first time, driven by robust growth across its core businesses – Search, Cloud, and YouTube. Earnings per share soared to $2.87, beating analyst expectations, while Google Cloud revenue jumped 34% year-on-year to $15.16bn, fuelled by surging demand for AI infrastructure and a $155bn backlog. YouTube advertising revenue rose 15% to $10.26bn, and Alphabet now boasts more than 300 million paid subscriptions. Chief executive Sundar Pichai credited the company’s “full stack” AI strategy – including its Gemini models and TPU-powered infrastructure – for the momentum and raised 2025 capital expenditure guidance to up to $93bn.
Meta posted a record $51.2bn in revenue for the third quarter – up 26% year-on-year – driven by strong advertising demand and user growth across its family of apps, which reached 3.54 billion daily active users. However, earnings were sharply impacted by a one-time, non-cash $15.93bn tax charge stemming from the U.S. Corporate Alternative Minimum Tax under the “One Big Beautiful Bill Act”, slashing net income to $2.71 billion and EPS to $1.05, far below analyst expectations. Excluding the charge, adjusted EPS would have been $7.25. Chief executive Mark Zuckerberg highlighted momentum in AI initiatives, including Meta Superintelligence Labs and AI glasses, while Reality Labs posted a $4.43bn operating loss despite a 74% revenue jump. Meta raised its capital expenditure outlook to $70bn–$72bn for the year, with further increases expected in 2026. The shares fell after the results, triggered by a massive $15.9bn one-time tax charge linked to new US corporate tax legislation, and Meta’s aggressive spending plans.
Microsoft kicked-off its new financial year with a blockbuster first-quarter performance, reporting an 18% year-on-year increase in revenue to $77.7bn and net income of $27.7bn, beating Wall Street expectations despite a global Azure outage and a $3.1bn hit from its deepening investment in OpenAI. Cloud and AI remained the company’s growth engines, with Azure revenue soaring 40% and overall Microsoft Cloud revenue reaching $49.1bn. Chief executive Satya Nadella described Microsoft as a “planet-scale cloud and AI factory,” underscoring continued heavy investment in infrastructure and talent to meet surging demand. The shares fell after the results driven by investor concerns over the company’s escalating capital expenditure plans.
Anglo American delivered a mixed but strategically significant third-quarter performance, with copper output rising 1% to 183,500 tonnes and iron ore production falling 9% to 14.3 million tonnes. The company raised its full-year guidance for Minas-Rio iron ore to 23–25 million tonnes following strong operational results and a successful pipeline inspection. Manganese and diamond production surged – up 140% and 38% respectively – while steelmaking coal output dropped 54% amid ongoing recovery efforts at Moranbah North and Grosvenor. Chief executive Duncan Wanblad highlighted progress in portfolio simplification, including a $2.5bn divestment from Valterra Platinum, and reaffirmed Anglo’s strategic pivot toward copper through a planned merger with Teck Resources and a joint mine plan with Codelco in Chile.
Glencore delivered a robust third-quarter production performance, driven by strong output in copper and coal, prompting the company to reaffirm its full-year guidance across key commodities. Copper production surged 36% quarter-on-quarter, led by significant gains at KCC (+66%), Mutanda (+60%), Antamina (+52%), and Antapaccay (+66%) – although year-to-date copper output was down 17% compared to 2024 due to lower grades and planned mine sequencing. Cobalt and zinc production rose 8% and 10% respectively, while steelmaking coal output more than doubled, up 123% year-on-year.
HSBC reported a resilient third-quarter performance, with revenue rising 3% year-on-year to $17.9bn and profit before tax (excluding notable items) reaching $9.1bn, despite a 14% drop in reported profit due to $1.4bn in legal provisions. The bank saw strong momentum in its wealth division, which posted a 29% increase in fees and other income, and net interest income surged 15% to $8.8 billion. HSBC also announced strategic moves including the proposed privatisation of Hang Seng Bank and exits from 11 non-core markets, reinforcing its focus on simplification and growth.
GSK delivered a strong third-quarter performance, reporting £8.5bn in sales – up 8% at constant exchange rates – driven by double-digit growth in Specialty Medicines (+16%), HIV treatments (+12%), and Oncology (+39%). Core operating profit rose 11%, and core earnings per share climbed 14% to 55p, prompting the company to upgrade its full-year guidance. The quarter also saw four major product approvals, including Blenrep for multiple myeloma and Blujepa for urinary tract infections, while GSK’s pipeline expanded with 15 high-potential assets expected to launch by 2031. Chief executive Emma Walmsley highlighted continued R&D momentum and sustainability progress, notably with the low-carbon Ventolin inhaler, expected to cut emissions by 45%.
Next reported a stronger-than-expected third-quarter performance, with full price sales rising 10.5% year-on-year – £76m ahead of guidance – driven by solid growth both in the UK (+5.4%) and overseas (+38.8%). Online sales of third-party brands led UK growth at 13%, while international online sales surged thanks to increased digital marketing investment. The retailer raised its fourth-quarter sales guidance from 4.5% to 7% and upgraded its full-year profit before tax forecast by £30m to £1.135bn. Chief executive Lord Wolfson credited improved stock availability and operational resilience for the outperformance, noting that last year’s supply chain issues had constrained growth.
Starbucks reported mixed third-quarter results, with consolidated net revenues rising 4% year-on-year to $9.5bn, beating Wall Street expectations, but global same-store sales fell 2%—marking the sixth consecutive quarterly decline. Earnings per share dropped sharply, down nearly 47% from the prior year, impacted by strategic investments in its “Back to Starbucks” turnaround plan and a one-time tax item. The company opened 308 net new stores, bringing its global footprint to more than 41,000 locations, with China showing signs of recovery as comparable store sales rose 2%. Chief executive Brian Niccol said the turnaround is “ahead of schedule”, citing improved US transaction comps and rising partner engagement.
Comcast reported a mixed third-quarter performance, with total revenue slipping 0.6% year-on-year to $29.9bn and net income falling 12.7% to $3.3bn, as higher interest and amortisation expenses weighed on results. Diluted earnings per share dropped 7.7% to $0.89, missing analyst expectations of $1.10. The company saw modest growth in domestic broadband revenue (+1.7%) and international connectivity (+9.5%), despite losing 199,000 US broadband customers. Wireless lines grew by 323,000, and Comcast continued investing in theme parks, with Epic Universe in Orlando set to open in May 2025. Chief executive Mike Cavanagh emphasised strategic shifts in pricing and bundling to counter broadband stagnation, while investors await updates on potential M&A activity, including interest in Warner Bros. Discovery.
Mastercard delivered a strong third-quarter performance, with net revenue rising 13% year-on-year to $7.37bn and adjusted earnings per share climbing 15% to $3.89, beating analyst expectations. Growth was fuelled by a 17% surge in cross-border transaction volumes and “strategic pricing discipline”, while value-added services – such as consulting and marketing – grew 18% on a currency-neutral basis. The company continued its AI-driven expansion with acquisitions such as Recorded Future and Minna Technologies, enhancing its threat intelligence and subscription management capabilities. Operating margin remained stable at 59.3%, and Mastercard returned $2.9bn to shareholders through buybacks.
Shell delivered a solid third-quarter performance, posting adjusted earnings of $5.4bn – beating analyst expectations – and generating $12.2bn in cash flow from operations, driven by record production in Brazil, 20-year highs in the Gulf of America, and strong trading margins. The Marketing division recorded its second-highest quarterly earnings in over a decade, while net debt fell to $41.2bn, reinforcing Shell’s balance sheet strength. Despite a softer energy price environment, Shell announced a new $3.5bn share buyback programme – its 16th consecutive quarter of at least $3bn in repurchases – underscoring its commitment to shareholder returns.
Standard Chartered delivered a strong third-quarter performance, with underlying profit before tax rising 9% year-on-year to $1.99bn and operating income up 5% to $5.15bn. The bank’s strategic focus on cross-border and affluent banking paid off, as Wealth Solutions income surged 27% and Global Banking rose 23%, offsetting a 1% dip in net interest income due to lower global rates. Credit impairments rose 10% to $195m, but cost discipline and targeted investments kept operating expenses growth to 4%. Chief executive Bill Winters said the bank now expects to hit its 13% return on tangible equity target a year ahead of schedule, and upgraded full-year income growth guidance to the upper end of the 5%–7% range.
WPP issued a downbeat third-quarter trading update, revising its full-year organic growth guidance to a decline of 5.5% to 6.0% after reporting a 3.5% like-for-like drop in third-quarter revenue and a 5.9% fall in revenue less pass-through costs. Year-to-date figures also disappointed, with revenue down 8% and revenue less pass-through costs falling 10.5% on a reported basis. Chief executive Cindy Rose acknowledged the performance as “unacceptable” and announced a strategic review aimed at simplifying operations, boosting execution, and expanding into enterprise and tech solutions. She emphasised WPP’s strong client base, global scale, and AI capabilities as key assets for a turnaround, but warned that improvements will take time.
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