Russia ready for talks but says against truce

(AWP Alliance News) - European equities are a mixed bag ahead of the weekend as it looks likely that Russia and Ukraine will meet with the US in trilateral talks next month.

Despite the planned talks, Russian President Vladimir Putin dismissed any possibility of a truce, while Ukrainian President Volodymyr Zelensky warned the US against giving more concessions to Russia.

"If you give something to Putin he will need everything," Zelensky said in a meeting with US envoy Steve Witkoff.

Here is what you need to know before the European market open on Friday:

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MARKETS

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CAC 40: called up 28.1 points, 0.4%, at 7,839.36

DAX 40: called down 73.0 points, 0.3%, at 25,298.75

FTSE 100: called up 1.2 points, broadly flat, at 10,726.23

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Hang Seng: up 0.6% at 23,066.79

Nikkei 225: down 1.0% at 62,298.78

S&P/ASX 200: down 0.1% at 8,782.00

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DJIA: closed up 11.89 points, 0.2%, at 52,867.98

S&P 500: closed down 93.74 points, 1.2%, at 7,663.43

Nasdaq Composite: closed down 694.00 points, 2.6%, at 26,008.86

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US 10-year Treasury yield: 4.97% (5.02%)

US 30-year Treasury yield: 5.29% (5.33%)

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EUR: higher at USD1.1212 (USD1.1201)

GBP: higher at USD1.3393(USD1.3365)

USD: lower at JPY156.86 (JPY157.20)

gold: lower at USD4,006.47 per ounce (USD4,054.71)

oil (Brent): higher at USD113.66 a barrel (USD111.18)

(changes since previous London equities close)

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ECONOMIC CALENDAR

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08:30 EDT Canada manufacturer sales

08:30 EDT Canada retail sales

10:00 CEST eurozone flash composite PMI

09:15 CEST France flash composite PMI

09:30 CEST Germany flash composite PMI

07:00 BST UK retail sales

09:30 BST UK flash composite PMI

09:45 EDT US flash composite PMI

10:00 EDT US Michigan consumer sentiment index

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TOP ECONOMIC NEWS

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Russia is ready to resume three-way talks with Ukraine and the US, but on the security parameters of a final peace deal and not a "short" ceasefire, President Putin said. "The goal of these discussions will be to address the issue of ensuring security for both Ukraine and Russia... within the framework of a final agreement, not after some kind of short pause in fighting," Putin told a reporter from state TV.

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Facing increased pressure from the US on his country, President Zelensky has warned US President Donald Trump against further concessions to Russia, saying in an interview with the US broadcaster CNN that lifting sanctions would make Moscow stronger. "My attitude to Putin is very clear. I think that if we lift sanctions, we will make him stronger," Zelensky said. He added: "It's not something personal between me and President Trump, and of course I'm against of any lifting of sanctions." Relations between the US and Ukraine have deteriorated sharply in recent weeks. Zelensky had said that Trump was "on the wrong side of history" after he struck a diesel deal with President Putin and lifted sanctions against Russia. There have also been reports that Elon Musk, founder of SpaceX, had ordered a throttling of Starlink satellite internet, which is very important for the Ukrainian army. Zelensky now said that the tensions between his country and the US had nothing to do with individuals. He also warned that Putin had no intention of ending the war. Zelensky said his meeting with US negotiator Steve Witkoff in Oslo had been productive, but that he was not convinced of Putin's willingness for peace. "If you give something to Putin he will need everything. He will want everything," Zelensky said, adding that this is why he expects Ukraine's partners to not give Putin a chance to become stronger.

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The Starshield military communications system is "back" in Ukraine, President Trump said, after the Wall Street Journal reported that Trump asked tech billionaire Elon Musk to restore the service, which is vital to Kyiv's forces. "I don't want to comment on it, you know, whether I called or whether somebody else called - doesn't make any difference," Trump told journalists when asked about the report. "I guess the bottom line, he put it back," Trump said, referring to Musk. The Journal reported earlier this week that Musk had capped the speed at which Ukrainian equipment could connect to the system, making some of Kyiv's drones useless. Musk had previously said that "any limits on speed or usage" of Starshield systems - which are operated by his SpaceX company - were "decided by the US military and ultimately POTUS," referring to Trump. But Defense Secretary Pete Hegseth said Tuesday that the Pentagon had not directed any changes to Starshield, and Trump said last week he did not do so either. Ukraine uses Starshield, Starlink's military-grade satellite service, for its battlefield communications, mid-range strikes on Russia-occupied territory, and its interceptor drones. It also uses SpaceX's parallel Starlink civilian satellite system.

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President Trump must give an interview under oath before the end of the year as part of his USD10 billion defamation case against the BBC, a US court has ruled. The order by Magistrate Judge Enjolique Lett followed complaints by the broadcaster's legal team that the US president had delayed his pre-trial deposition. Lawyer Charles Tobin said that with two months left on the timetable to disclose evidence "we still haven't been able to depose the plaintiff". He pointed out a date had been agreed upon of October 16, but that Trump cancelled it due to a "matter of national importance". Tobin said the president had actually been campaigning in Georgia, adding: "He was participating in party politics and prioritised that over sitting for the deposition." Judge Lett said Trump must sit for a deposition by December 11 or face having his legal action thrown out - unless the discovery period was extended past December 18. Trump is seeking substantial damages in a Florida court over the editing of a Panorama documentary from 2024 about the US Capitol riots.

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Headline Japanese consumer price inflation increased in September, official data showed. According to the Statistics Bureau of Japan, the national consumer price index grew 2.1% year-on-year in September, ahead of the 1.9% increase recorded in August. The CPI excluding fresh food rose 2.1% in September, accelerating from a 1.8% increase in the previous month. Excluding both fresh food and energy, the index climbed to 2.5%, up from August's reading of 2.0%.

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Growth in Japan's manufacturing sector slowed in October, but the service sector grew more quickly, preliminary survey data from S&P Global showed. The flash Japan composite purchasing managers' index was 52.3 points in October, unchanged from September. A reading above the 50.0-point neutral mark indicates an overall increase in business activity from the previous month, while a reading below signals a contraction. The services PMI rose to 52.0 points in October from 51.3 points in the prior month. The manufacturing PMI declined to 53.3 points from 54.1 points, while the manufacturing PMI output index dropped to 53.1 points from 54.9 points. Usamah Bhatti, economist at S&P Global Market Intelligence, said: "The October flash PMI data indicated that overall business activity growth across Japan was unchanged from a month prior to remain weaker than the average for the year-to-date. The expansion was led by manufacturers, but the rate of growth here slowed to a seven-month low.

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UK consumer confidence plummeted in October, falling back behind levels seen earlier this year. GfK's long-running consumer confidence index fell 11 points in October, reversing a slow recovery in recent months. It now sits firmly deeper in negative territory at minus 24 points. The index had previously seen three consecutive monthly increases. All measures decreased compared to September's figures, but the largest declines were seen in the major purchase index - an indicator of confidence in buying big ticket items - and expectations for the general economy over the next 12 months. Both fell 14 points against September. The savings index, which is not used in the overall index score, rose one point against September.

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UK Prime Minister Andy Burnham has pledged the UK will meet its net zero target despite approving the Jackdaw gas field, saying the decision will strengthen energy security. On Wednesday, ministers announced the Jackdaw gas field, 150 miles east of Aberdeen in Scotland, had been approved after years of uncertainty and a court case. The decision drew criticism from some Labour backbenchers and environmentalists, while Conservatives called on the Government to also approve the Rosebank oil field, west of Shetland in Scotland's north. Writing in The Guardian, Burnham said: "There has been much speculation about what this announcement means for Britain's commitment to addressing the climate crisis. I want to be clear that our determination is unwavering. The simple truth is that even as we pursue our ambitious target of net zero by 2050, we will need oil and gas for years to come as a bridge to that clean-energy future." He said the decision would "significantly strengthen our energy security by increasing domestic gas production by about 6% and support the UK's energy supply for more than a decade".

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Australia's private sector activity contracted in October, as services fell into contraction over the period, preliminary figures from S&P Global showed. The flash Australia composite purchasing managers' index fell to 47.7 points in October from 51.3 points in September, below the 50.0-point mark. A reading above the 50.0-point neutral mark indicates an overall increase in month-on-month business activity, while a reading below signals a contraction. The flash services PMI fell to 47.8 points in October from 51.9 points in the previous month. This was the first fall in service sector activity since May. The flash manufacturing PMI increased to 49.7 points from 49.6 points, while the flash manufacturing PMI output index rose to 46.5 points from 46.2 points.

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Houthi attacks on Saudi Arabia are having only a "limited" economic impact on the kingdom so far, owing to robust domestic demand, the IMF's regional director told AFP, though geopolitical uncertainty remains a threat. The Iranian-backed Yemeni group has ramped up its attacks on Saudi Arabia in recent weeks, hitting oil facilities and airports among other targets, as Yemen's dormant civil war has roared back into life. The world's largest oil exporter, Saudi Arabia has had its crude shipments squeezed by Iran's blockade of the Strait of Hormuz and the Houthis' declaration of a maritime blockade. But shipments continue to move despite the conflicts, Jihad Azour told AFP. The Gulf kingdom also has "strong internal demand and a robust public sector, so the impact is limited", he said of the Houthi attacks. Nevertheless, the economy is expected to contract by 3.3% this year, owing to the impacts of the US-Israeli war with Iran that began in February.

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Canada, which is in the midst of a trade war with the US, opened talks with Turkey on a free trade agreement during a landmark visit by Prime Minister Mark Carney. Carney, a former central banker, has made reducing dependence on Washington and diversifying Canada's partnerships one of the cornerstones of his term, which began in March 2025. "We decided to begin negotiations for a free trade agreement, which includes increasing trade and investment, before the end of the year," Turkish President Recep Tayyip Erdogan said in a joint address to reporters. Carney is the first Canadian prime minister to pay an official visit to Turkey. "We hope to increase our trade volume, which is currently around USD3 billion, to USD5 billion and then USD10 billion. We will approximately double direct flights between our countries," Erdogan said. Carney said Canadian negotiators would come to Ankara next month for the first round of free trade talks.

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COMPANY CALENDAR

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American Express Co - Q3 results

ATOSS Software SE - Q3 results

Computacenter PLC - dividend payment date

Eni Spa - Q3 results

Holcim AG - trading statement

Kainos Group PLC - dividend payment date

Mineral Resources Ltd - Q1 results

Rightmove PLC - dividend payment date

Safran SA - trading statement

Volvo AB - Q3 results

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TOP COMPANY NEWS

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L'Oreal reported third quarter revenue of EUR11.56 billion, up 12% from a year ago, or 7.2% on a like-for-like basis. For the nine months to September 30, the Paris-based personal care company said that revenue totalled EUR35.34 billion, up 7.7% from a year prior, or 6.9% LFL. It hailed growth across all regions and segments, driven predominantly by mix and volume. "Our performance in the first nine months gives me confidence that L'Oreal will deliver another year of growth in sales and profit, whilst strengthening our global leadership," said Chief Executive Nicolas Hieronimus.

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Kering said revenue for the third quarter was flat at EUR3.35 billion compared with EUR3.33 billion the year prior, and down 1% on a comparable basis. The Paris-based luxury goods company and owner of the Gucci fashion house said the result reflects "the phasing we anticipated, in a softer macroeconomic environment." Sales from directly operated retail networks, including e-commmerce, fell 3%, while Wholesale and Other revenues rose 3%. Gucci revenue fell 6% on a comparable basis to EUR1.29 billion from EUR1.34 billion the year prior, reflecting "a more demanding comparison base and a less pronounced newness effect than in the second quarter."

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Vinci said nine-month revenue to September 30 was EUR55.96 billion, up 3.1% from EUR54.25 billion a year ago. Of this total, the Paris-based concessions, construction and energy company said Concessions revenue was EUR9.55 billion, up 1.8% from EUR9.38 billion a year ago; Energies revenues rose 7.4% to EUR22.26 billion from EUR20.73 billion; and Construction revenue rose 0.4% to EUR24.58 from EUR24.48 billion.

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Unibail-Rodamco-Westfield published results for the nine months to September 30. The Paris-based real estate company said tenant sales climbed 5.2% compared to a year ago. Turnover edged 2.4% higher on a like-for-like basis. During the period, URW rebranded two of its key Westfield destinations: Westfield Wroclavia (Poland) and Westfield St James Quarter (Scotland). This month it signed a consulting agreement with Thailand's Asset World Corp, "representing a first step towards a future potential franchising partnership". Chief Executive Officer Vincent Rouget said the "solid" results "are underpinned by strong growth in tenant sales and footfall, robust leasing activity and continued reduction in vacancy to record-low levels. Positive momentum in rental uplifts was sustained during the quarter, and we are on track to achieve our 2026 Areps guidance and pay a cash distribution of EUR5.50 per share."

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Sika said it is on track to meet its full-year guidance as earnings and sales edge higher in the first nine months of 2026. The Baar, Switzerland-based specialty chemicals company said net profit increased 1.9% to CHF887.8 million in the nine months ended September 30, around USD1.08 billion, up from CHF870.9 million in the corresponding period a year earlier. Earnings before interest, tax, depreciation and amortisation rose 1.9% to CHF1.68 billion from CHF1.64 billion. Net sales grew 1.6% to CHF8.71 billion from CHF8.58 billion. Europe, Middle East and Africa sales rose 5.8% to CHF4.05 billion, while sales increased 0.8% to CHF3.02 billion in the Americas and declined 6.3% to CHF1.64 billion in the Asia Pacific region.

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Lockheed Martin announced a 10-year agreement with the Pentagon for the production of 850 F-35 warplanes, underscoring Washington's long-term commitment to the high-tech stealth aircraft. Lockheed Martin is a Bethesda, Maryland-based security and aerospace company. The two sides did not specify a value for the agreement, which comes as the Pentagon seeks to strike multi-year deals to expand American weapons production and boost the US defense industrial base. The announcement "cements (the plane's) role as the free world's key frontline fighter for years ahead," Lockheed Chairman, President and CEO Jim Taiclet said on a call with investors. F-35s - which Washington's forces have used in combat during the US-Israeli war against Iran - come in three versions that can cost more than USD100 million per plane. The "framework agreement," which the Pentagon said would "modernize and expand" the F-35 program, still requires congressional approval and funding. "We have fundamentally changed how we stabilize the American defense industrial base to produce at speed and scale," top acquisition official Michael Duffey said in the Pentagon's announcement.

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Newmont said production declined in its third quarter but net income was significantly higher. The Denver, Colorado-based gold miner said attributable gold production in the third quarter ended September 30 was 1.3 million ounces, down 13% from 1.5 million ounces a year ago. The average realised gold price increased 2.4% to USD4,317 as at the end of the quarter, compared to USD4,216 a year ago. The firm said sales rose 15% to USD6.36 billion, from USD5.52 billion the year prior. Attributable net income was USD2.48 billion in the third quarter, increasing 91% from USD1.30 billion a year ago. The firm saw higher expenses in the third quarter of 2026. Newmont declared a quarterly dividend of USD0.26 per share, up 4.0% from USD0.25 per share a year ago. It said this will equate to a full-year dividend of USD1.04 per share. The firm said it is on track for its 2026 guidance of 5.3 million attributable gold ounces. Year-to-date production is 3.9 million ounces.

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Ora Banda Mining said gold production during the first quarter of financial year 2027 ended September 30 was 33,305 ounces, up 8.9% from 30,595 ounces a year ago. The Perth, Australia-based gold producer said total equivalent gold sold rose 8.3% to 33,939 ounces from 31,336 ounces a year ago, but on-quarter, sales fell 14% from 39,421 ounces. It said gold revenue was AUD200.8 million during the quarter, or USD141.0 million, this was down 18% from AUD246.1 million on-quarter. Adds that the all-in sustaining cost per ounce rose 8.9% to AUD4,214 from AUD3,870 a year ago. It noted that it began construction of its new 3.0 million tonne per year processing plant during the quarter.

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Zip said it is on track to meet full-year guidance as revenue and transaction volumes improve year-on-year in the first quarter of financial year 2027. The Sydney-based digital financial services company said group total transaction volume increased 18% to AUD4.60 billion in the three months ended September 30, around USD3.23 billion, from AUD3.90 billion in the same quarter a year earlier. Transactions rose 22% to 31.6 million from 26.0 million. Cash earnings before tax, depreciation and amortisation reached AUD65.0 million, up 3.4% from AUD62.8 million. This included AUD10.1 million of operating expenses relating to "an external fraud event in the US". Total revenue climbed 17% to AUD373.4 million from AUD318.5 million, while total income rose 17% to AUD376.1 million from AUD321.5 million.

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Mineral Resources said production in the first quarter of financial year 2027 surged from a year ago, but was down from the fourth quarter of financial year 2026. The Osborne Park, Australia-based diversified resources company said mining services production in the first quarter ended September 30 was 103 million tonnes, up 27% from 81 million tonnes a year ago, and an increase of 9.6% on 94 million tonnes on-quarter. The production increase was down to ramp-ups at Bald Hill and Pilbara Hub, it said. Full year guidance is still 370 to 390 million tonnes.

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Whitehaven Coal maintained its full-year guidance and posted stronger coal production figures for the first quarter of its 2027 financial year, although total coal sales declined over the same period. The Sydney-based coal producer said managed run-of-mine coal production increased 22% to 11.0 million tonnes in the three months ended September 30 from 9.0 million tonnes in the same quarter a year earlier. Managed saleable coal production grew 15% to 8.5 million tonnes from 7.3 million tonnes.

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By Harvey Dorset, Alliance News reporter

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