Public Markets 8-Hour Briefing
×European Market Performance
Erste Group raised its net interest income outlook after its €7 billion Poland deal, potentially exceeding analyst expectations for the year. Schneider Electric reported record revenue of €40.15 billion, up 8.9% organically, with CFO to step down. Munich Re saw fourth-quarter profit fall 11.5% due to currency headwinds. Drax Group profits slumped after booking impairments on Canadian biomass and UK carbon capture projects.
Automotive Sector Struggles
Stellantis reported heavy second-half losses after €22.2 billion in EV charges, while setting sights on return to profit after booking $26 billion in impairments as it scales back electric vehicle investments. Volkswagen is bidding to become Europe's self-driving vehicle champion, planning to launch driverless taxis next year after its Los Angeles launch with Uber. Toyota investors will sell $19 billion in stock as banks and insurers unwind strategic holdings.
Financial Markets & IPOs
London Stock Exchange Group posted 56% profit jump and launched £3 billion buyback amid activist pressure from Elliott. Hong Kong Exchange saw quarterly profit rise 15% on trading jump and Chinese listings boom. National Stock Exchange of India has invited banks to pitch for its $2.5 billion IPO. India's market regulator broadened rules for $385 billion stock funds to add gold and silver, giving greater flexibility to equity funds.
Insurance & Reinsurance
Axa CEO Thomas Buberl acknowledged widespread worries about private credit while seeking to reassure investors about the firm's exposure. French insurer Axa reported profit rise after selling AXA Investment Managers to BNP Paribas. Allianz posted record 2025 results but disappointed with profit guidance. AXA reported record earnings with growth at top of target range.
Tech & AI Developments
Nvidia received US license for small amount of H200 exports to China. OpenAI hired ex-Apple AI head from Meta. Amazon's $50 billion OpenAI investment is tied to IPO or AGI milestone. Tech groups are turning to more chip-backed loans to fund AI arms race, attracting investors with high yields.
Energy & Commodities
Lithium prices jumped after Zimbabwe banned concentrate exports, fueling fears of global supply tightening. Soy futures hit 20-month high as US biofuel decision nears. Shell is in talks with Adnoc and others over Australia LNG stake sale of its A$34 billion North West Shelf plant. China steel mills were asked to curb output during government meetings to reduce pollution.
Emerging Markets & Currency Moves
Chinese yuan hit 35-month high as dollar weakens. Yuan extended advance after PBOC set another stronger fixing. Indonesia raised $4.5 billion to defy fiscal health concerns, pulling off its biggest global bond sale since 2017. Emerging markets are shaping up to be one of this year's standout trades, favored by top money managers.
Corporate Restructuring & Cost Cuts
WPP plans to cut £500 million annually in sweeping overhaul under new CEO Cindy Rose. WPP is targeting £500 million in annual cost savings by 2028 as part of restructuring drive. Puma forecast another year of losses and scrapped dividend to clear unsold inventory and position for profitable growth in 2027.
Airline & Travel Sector
Qantas Airways shares fell most in almost a year after earnings from international unit unexpectedly fell and rising costs were flagged. Thai Airways expects 5% revenue growth as it adds jets and expands in Asia, including India and China. Trip.com shares fell as softer margins overshadowed strong Q4 print.
Construction & Real Estate
Data center exposure is saving grace for construction firms in Europe as they pivot from struggling housing market and weak industrial activity. Hong Kong residential prices are expected to rise around 5% in 2026 thanks to economic recovery. UK house prices are 'bunching' to avoid mansion tax as buyers and sellers price homes under new thresholds.