2025-11-21 12:53
LONDON, Nov 21 (Reuters) - Asian and European shares extended a global rout on Friday and U.S. stock futures also pointed to a weak opening on Wall Street as investors continued to offload richly valued technology stocks. A highly anticipated U.S. jobs report on Thursday failed to provide clarity on the near-term path for interest rates, while artificial intelligence darling Nvidia's earnings couldn't staunch the selling. Sign up here. Bitcoin fell to a 7-month low. The MSCI World Equity Index was down 0.5% and on track for a 3.2% weekly drop, its biggest since March (.MIWD00000PUS) , opens new tab. QUOTES: GERRY FOWLER, HEAD OF EUROPEAN EQUITY STRATEGY, UBS, LONDON: "It does seem like yesterday’s sell-off was probably futures-led and not to do with any portfolio rebalancing from a single stock perspective. I think...there is a pretty rapid tightening in the liquidity environment that every now and then we get, this has happened pretty frequently in the past, not least of all last August 2024 and late 2018. "I think towards the end of the day yesterday - because a lot of this is end-of-day related activity - you get selling on the futures from CTA funds and risk control funds, and in a market that is getting less liquid to year-end, and liquidity is a lot lower anyway, a lot of this was just pulling on a string." RORY MCPHERSON, CHIEF INVESTMENT OFFICER, WREN STERLING, LONDON: "I think it's a healthy selloff. If you look at the U.S. tech sector, it's still up 55% from the lows in April, so a digestion period is normal. "The obvious catalyst for this selloff? Clearly the price of the bitcoin coming down pulls away some of the buyers of leveraged tech stocks. We've also had a sense from markets that the Fed is backing away from a December rate cut. "If rate cuts still come, in December or January, that is still there as a support. We've seen a rotation in the markets, so defensive sectors such as healthcare are holding up. The numbers from Nvidia were wonderful but they didn't answer questions about whether other tech companies can monetize AI. "Looking at the U.S. stock market, it's still not oversold so there's not enough of a pull back to drag people that sold in April." RORY DOWIE, PORTFOLIO MANAGER, MARLBOROUGH, LONDON: “The market hasn’t been particularly forgiving this earnings season. On average companies are being rewarded by less than usual if they beat earnings and similarly getting penalized more if they miss earnings. This comes amidst a backdrop of circa 85% of companies beating estimates in the U.S. – a very strong number. "The rotation this month feels like a cash flow rotation – higher quality, unloved parts of the market have performed well (healthcare/consumer staples) whilst those more speculative parts of the market have sold off. Other sectors that have sold off have been pockets of industrials exposed to data centre build out.” JOHANNA HANDTE, CHIEF INVESTMENT OFFICER, BETHMANN BANK, FRANKFURT: "I would like to draw a comparison with the year 2000, when we experienced the dot-com bubble. The central argument in the current discussion is often the high valuation. At that time, the focus was on big names such as Cisco and Oracle, which had a price-earnings ratio (P/E) of 90. In comparison, Nvidia currently has a P/E ratio of 30. "I don't find this valuation worrying as long as profits keep pace and companies are able to increase their profits sustainably. There will certainly be setbacks in this megatrend theme from time to time, but I don't think we are already at the end of this structural and disruptive megatrend. "In the reality of the capital market, a 15% price correction is not relevant; this is not reflected in the long-term chart of stock market performance. In the long term, stock markets rise, and these seemingly severe crises are more like minor fluctuations. In this respect, these short-term corrections can occur again and again...I do not see any structural problems at the moment." https://www.reuters.com/business/global-markets-selloff-quotes-instant-view-2025-11-21/
2025-11-21 12:50
FTSE 100 down 0.4%, FTSE 250 falls 0.6% UK retail sales contract in October, business growth stalls in November Nov 21 (Reuters) - London's main stock indexes plunged on Friday, headed for weekly losses, as concerns over tech valuations and Federal Reserve's hawkish stance rattled global markets, while defence shares slid amid signs of potential progress toward peace in Ukraine. As of 1222 GMT, the blue-chip FTSE 100 index (.FTSE) , opens new tab fell 0.4%, erasing Thursday's brief recovery, while the mid-cap FTSE 250 index (.FTMC) , opens new tab dropped 0.6%, on pace to extend its losing streak to an eighth consecutive session. Sign up here. Thursday's global rally following chip bellwether Nvidia's (NVDA.O) , opens new tab upbeat forecast proved short-lived as worries of a potential AI bubble resurfaced and a mixed U.S. jobs report left Fed rate-cut prospects unclear. Both UK stock indexes poised to register even steeper weekly losses than those seen in April, when markets were roiled by U.S. President Donald Trump's sweeping tariff announcements. Aerospace and defence stocks (.FTNMX502010) , opens new tab fell 3.2% on the day to their lowest in three months, as investors monitored developments around a new U.S.-drafted plan to end the Russian war in Ukraine. Defence and engineering contractor Babcock (BAB.L) , opens new tab dropped 0.7% even after it reported a 19% jump in first-half profit and forecast further growth this year. Banking stocks (.FTNMX301010) , opens new tab drifted lower by 0.7%, with heavyweights HSBC Holdings (HSBA.L) , opens new tab and Barclays (BARC.L) , opens new tab dropping about 1%. Precious metal miners (.FTNMX551030) , opens new tab lost 3.6% as gold prices retreated more than 1%, while industrial metal miners (.FTNMX551020) , opens new tab declined 1.7% after copper prices sank to their lowest level in over two weeks. Domestic economic data also added to the gloom. Retail sales contracted in October alongside weakening household sentiment, while business growth stalled as November's PMI dropped. Companies are now awaiting next week's budget announcement, where finance minister Rachel Reeves is expected to implement additional tax increases. Among individual movers, fast-fashion retailer ASOS (ASOS.L) , opens new tab plunged 8.7% after the company forecast lower annual profit than analysts' expectations. https://www.reuters.com/business/finance/uk-stocks-set-sharp-weekly-losses-tech-fed-concerns-hit-markets-2025-11-21/
2025-11-21 12:48
PARIS, Nov 21 (Reuters) - U.S. investment firm American Industrial Partners plans to sell or list on the stock market Aluminium Dunkerque, France's largest aluminium plant, a union official said on Friday. The local management informed workers representatives of AIP's plan, Johan Vlietinck, a representative of the CGT union at the site, told Reuters. Sign up here. Bloomberg News had reported earlier that AIP was considering a sale or listing for Aluminium Dunkerque, which it acquired four years ago following a debt default by GFG Alliance, owned by commodities tycoon Sanjeev Gupta. A spokesperson for AIP in France said the investment fund was not denying the press reports but would not comment further. Aluminium Dunkerque could not be immediately reached for comment. Unions had anticipated a possible sale after Aluminium Dunkerque signed a 10-year power contract with utility EDF in May, providing long-term cost visibility for the energy-intensive business, Vlietinck said. Aluminium Dunkerque, which produces around 300,000 metric tons of raw aluminium per year, has an annual power consumption roughly equivalent to that of Marseille, France's second-largest city. It generates annual turnover of more than 800 million euros ($921.4 million), according to its website. No offers for the business have been communicated to worker representatives, Vlietinck said, adding that the CGT union would like the French state to invest as part of a consortium. France's economy ministry did not immediately respond to a request for comment. ($1 = 0.8682 euros) https://www.reuters.com/business/finance/aip-plans-sale-or-listing-french-aluminium-plant-union-says-2025-11-21/
2025-11-21 12:36
Board was dismissed amid investigation into alleged corruption Minister says recruitment process being strengthened Kyiv trying to reassure donors that it can tackle graft KYIV, Nov 21 (Reuters) - Ukraine's government plans to appoint a new supervisory board at Energoatom, the state nuclear company at the heart of a corruption scandal, by the end of this year, Economy Minister Oleksiy Sobolev said on Friday. Ukraine has been rocked by a scandal over an alleged $100 million kickback scheme involving senior energy officials and a former business associate of President Volodymyr Zelenskiy. Sign up here. It is the country's biggest corruption scandal since Zelenskiy became president in 2019 on a mandate to eliminate graft. "We need to restore management and proper functioning of all bodies at Energoatom to restore trust," Sobolev told reporters. Anti-corruption authorities have stepped up their fight against graft since Russia's full-scale invasion in 2022, aiming to reassure donors and prove that Kyiv is ready for membership in the European Union. But that has meant painful public revelations of high-level sleaze that has long plagued Ukraine. The government dismissed Energoatom's supervisory board earlier this month after an investigation was launched into alleged corrupt activity. All company officials involved in the investigation were suspended. Energoatom has said it is cooperating with authorities and committed to transparency. The scandal is unfolding amid escalating Russian attacks on Ukrainian energy facilities, including substations that supply electricity to nuclear power plants. As the war with Russia approaches its four-year mark, millions of Ukrainians face long power cuts. Energoatom runs three nuclear power plants, which supply Ukraine with more than half of its electricity. It has said the investigation has no impact on production or safety. Sobolev said the new supervisory board would comprise seven members, three representing the government and four independent. He said the government was strengthening the recruitment process, including demanding more qualifications, and that a large pool of candidates had been identified. https://www.reuters.com/world/ukraine-appoint-new-board-nuclear-firm-amid-100-million-scandal-2025-11-21/
2025-11-21 12:33
GENEVA, Nov 21 (Reuters) - More food supplies are getting into Gaza since the October ceasefire but are still falling short of huge humanitarian needs as winter rains risk spoiling delivered foodstuffs, the U.N. World Food Programme said on Friday. "Things are better than before the ceasefire, but we have a long way to go. Sustained support is an important endeavour to help families rebuild their health, their nutrition and their lives," WFP spokesperson Martin Penner told reporters in Geneva via video link from the Gaza Strip. Sign up here. Hundreds of thousands of people remain in urgent need of food assistance, according to the WFP. In August a global food monitor said at least half a million people were experiencing famine in parts of the coastal enclave. Earlier this week, Gaza was hit by heavy rain that spoiled and washed away some food supplies that residents had been storing, senior WFP spokeswoman Abeer Etefa said. It was a sign of the challenges for families as winter sets in, she added. Since a fragile Israel-Hamas ceasefire took effect on October 10 after two years of war that demolished much of the highly urbanised territory and caused a humanitarian disaster, the WFP has brought 40,000 tons of food aid into Gaza. But it has met only 30% of its target for food parcels - reaching around 530,000 out of 1.6 million people, due to logistical issues getting supplies into the enclave earlier this month. However, it said it is now starting to catch up. Though Gaza's markets are reviving, food prices remain high for Palestinians, many of whom lost their income during the war, with a chicken costing $25, meaning many are reliant on food aid, the WFP said. It said a woman had told the WFP in Khan Younis that she did not take her children to the market so they would not see all the food that's available, but unaffordable. "If they go near the market, she tells them to cover their eyes," Penner stated. https://www.reuters.com/world/middle-east/food-supply-improving-gaza-since-truce-long-way-go-says-un-2025-11-21/
2025-11-21 12:04
IHC joins list of potential suitors for Lukoil's foreign assets US sanctions disrupt Lukoil's foreign operations ABU DHABI, Nov 21 (Reuters) - Abu Dhabi conglomerate International Holding Company (IHC.AD) , opens new tab has told the U.S. Treasury it is interested in buying Russian oil group Lukoil's (LKOH.MM) , opens new tab foreign assets, the company said in response to a Reuters enquiry. IHC, an Abu Dhabi conglomerate led by a key member of the United Arab Emirates' ruling family, joins a growing list of potential bidders for Lukoil's global assets that includes oil majors ExxonMobil and Chevron, and U.S. private equity firm Carlyle. Sign up here. Lukoil's international assets are up for grabs after the U.S. imposed sanctions on the company. Washington rejected Swiss commodity trader Gunvor as a potential buyer, opening up the process to others. They have until December 13 to talk to Lukoil and U.S. approval will be needed for specific deals. Asked if IHC has notified the U.S. Treasury of its interest in Lukoil's foreign assets, IHC said: "Yes, we have expressed interest in Lukoil's foreign assets." IHC did not comment further. The U.S. last month imposed sanctions on Russia's two biggest oil companies, Rosneft and Lukoil, as Washington seeks to pressure Moscow into ending the war in Ukraine. Lukoil has faced growing disruptions to its foreign assets, which account for about 0.5% of global oil production, since the sanctions were imposed. Lukoil has three refineries in Europe, stakes in oilfields in Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, the UAE and Nigeria, and hundreds of retail fuel stations around the world, including in the United States. IHC has a wide range of activities, including healthcare, energy, real estate, agriculture and mining, with global investments in the U.S., India, Latin America and Africa. Its CEO told Reuters this week IHC could deploy $30 billion to $35 billion over an 18-month cycle, funding its investments through a mix of debt and equity. IHC, Abu Dhabi's largest listed company, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, brother of the UAE's president and national security adviser, who is also head of two of the emirate's sovereign wealth funds. IHC is 61.2% owned by Royal Group, a private investment firm owned by Sheikh Tahnoon. Sheikh Tahnoon is seen as key to the UAE's ambitions of becoming a global AI hub and regularly meets with top global business and political leaders. U.S. President Donald Trump hosted Sheikh Tahnoon at the White House in March. ($1 = 3.6723 UAE dirham) https://www.reuters.com/business/energy/abu-dhabis-ihc-interested-lukoils-foreign-assets-2025-11-21/
