Trump rules out attack on Iran before midterms

10 hours ago

(AWP Alliance News) - European equities are called higher as the EU says it is targeting "tangible outcomes" in China talks.

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 57.8 points, 0.8%, at 7,787.49

DAX 40: called up 203.6 points, 0.8%, at 25,010.57

FTSE 100: called up 92.5 points, 0.9%, at 10,534.10

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Hang Seng: up 1.0% at 24,031.80

Nikkei 225: down 0.8% at 68,512.30

S&P/ASX 200: up 0.6% at 8,711.00

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DJIA: closed up 51.77 points, 0.1%, at 51,231.64

S&P 500: closed down 36.41 points, 0.5%, at 7,765.36

Nasdaq Composite: closed down 345.35 points, 1.3%, at 27,193.34

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US 10-year Treasury yield: 5.24% (5.34%)

US 30-year Treasury yield: 5.61% (5.66%)

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EUR: higher at USD1.1226 (USD1.1198)

GBP: higher at USD1.3241 (USD1.3214)

USD: lower at JPY158.04 (JPY158.26)

gold: higher at USD4,178.94 per ounce (USD4,116.87)

oil (Brent): lower at USD102.77 a barrel (USD105.57)

(changes since previous London equities close)

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ECONOMIC CALENDAR

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08:30 EDT Canada average hourly wages

08:30 EDT Canada employment change

08:30 EDT Canada participation rate

08:30 EDT Canada unemployment

10:00 CEST Italy industrial production

09:00 CEST Switzerland consumer confidence

10:00 EDT US Michigan consumer sentiment index

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TOP ECONOMIC NEWS

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President Donald Trump ruled out attacking Iran before the US midterm elections on November 3, saying Washington was holding "productive discussions" with Tehran. Trump's post on his Truth Social platform followed a surge in oil prices on Thursday driven by media reports suggesting potential new US strikes prior to those elections. "I want to make it clear to everybody that, while Iran is in very bad condition, both Economically and Militarily, and while the Blockade will remain in full force and effect...we will not be attacking Iran at any time prior to the Midterm Elections," he wrote. "We are having productive discussions with the Islamic Republic of Iran," he added, without providing additional details. The rise in crude oil prices has also been fuelled by persistent tensions in the Strait of Hormuz - a strategic chokepoint for the global oil trade - as well as hostilities between Yemen's Houthis and Saudi Arabia.

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CNN, MS NOW and Politico urged a federal judge to extend White House access to the three media outlets which President Trump is seeking to ban. District Judge Timothy Kelly prolonged until Tuesday the temporary White House access he granted to the news organisations last month and said he expected to issue a ruling by then. Trump barred CNN, MS NOW and Politico from the White House on September 18 for distributing what he called "fake news" and "fiction and lies." The three outlets filed a joint lawsuit asking for a temporary restraining order against the ban on the grounds that it violates the First Amendment of the US Constitution, which upholds the right to a free press. CNN, MS NOW and Politico appeared in a downtown Washington court on Thursday to ask that the judge transform his TRO into a preliminary injunction prohibiting Trump from barring them from the White House while the case proceeds.

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The EU's top commerce official said that it was crucial to achieve "tangible outcomes" in talks set to wrap up in China. The negotiations follow months of rising tensions between the 27-nation EU and the Asian powerhouse that risk escalating into a full-blown trade war. "Building on three intensive months of engagement, we're working hard to rebalance EU-China trade," Maros Sefcovic said late Thursday after meeting Chinese Commerce Minister Wang Wentao in Beijing. "It's crucial that the first phase of our talks under the Trade and Investment Consultations delivers tangible outcomes," Sefcovic said on X, posting a photo together with Wang.

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Nato said it would start its annual nuclear deterrence exercises in Italy from Tuesday amid mounting concerns about Russia. Its "Steadfast Noon" drills will run from October 13 to 23 and would involve 17 nations, it said. "The exercise is a long-planned, routine training activity that is part of Nato's efforts to maintain readiness and test procedures that contribute to the alliance's deterrence and defence," said a Nato statement. "No live weapons are used in Steadfast Noon. The exercise is not linked to current world events and is not directed against any country," the alliance added. But Nato Secretary General Mark Rutte commented that while Nato was a "defensive alliance" the exercise "helps us ensure a safe, secure, effective, and credible capability to preserve peace, prevent coercion and deter aggression. It also sends a clear message of unity and resolve".

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Japanese household spending was lower in August as incomes also fell in real terms, official data showed. According to the Statistics Bureau of Japan, the average of monthly consumption expenditures per two-or-more person households declined by 3.1% year-on-year in real terms in August to JPY310,975, or USD1,967.13 following a 3.6% decline in July. The drop was less than expected with the consensus forecast cited by FXStreet anticipating a 3.6% drop in August. Average monthly income per household in real terms was 0.9% lower year-on-year at JPY616,704, slowing slightly from a 3.8% decline a month earlier.

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The decline in UK footfall worsened in September as "consumer confidence remains fragile", data published by the British Retail Consortium and Sensormatic showed. Total UK footfall was down 2.9% on-year in September, accelerated from a 1.7% fall in August. Notably, High Street footfall fell by 3.0% in September, a notch better than a 3.1% decline in August. Retail Park footfall was down 1.7% in September, worse than August's 1.0% decline. Shopping Centre footfall decreased by 3.5% in September, much worse than August's 0.5% fall. Pertinently, footfall fell 0.7% on-year in Scotland. It was down 2.1% in Northern Ireland, and declined by 3.0% in Wales and fell by 3.4% in England.

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Israel's defence ministry said it had opened a national pavilion and led a delegation at the Marrakesh Airshow 2026, its first official participation at a defence exhibition in Morocco. "For the First Time in Morocco: Israel MOD Opened a National Pavilion and Led an Israeli Delegation to Marrakech Airshow 2026," the defence ministry said in a statement, the latest sign of closer ties between Rabat and Israel. "This marks Israel's first official participation in the defence exhibition held in Morocco since the signing of the Abraham Accords," it added. Israel and Morocco established ties in 2020 as part of the US-led Abraham Accords, under which several Arab states normalised relations with Israel. In September, Israel's foreign ministry announced the two countries had agreed to open respective embassies following a meeting between their top diplomats and the US ambassador to the United Nations in New York.

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COMPANY CALENDAR

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Derwent London PLC - dividend payment date

Constellation Software Inc - dividend payment date

Omnicom Group Inc - dividend payment date

Quanta Services Inc - dividend payment date

Keurig Dr Pepper Inc - dividend payment date

Delta Air Lines Inc - Q3 results

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TOP COMPANY NEWS

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American Express was handed a USD350 million penalty for failing to have sufficient systems in place for detecting money laundering. The New York-based financial services corporation that specialises in payment cards saw its Sandy, Utah-based American Express National Bank subsidiary fined by the Office of the Comptroller of the Currency. The Federal Reserve also issued its own cease and desist order against Amex. The OCC said the penalty, and a cease and desist order, related to failures to establish and maintaining systems to monitor compliance with the Bank Secrecy Act and anti-money laundering laws. The OCC said the deficiencies involved "inadequate resources, including staff without sufficient expertise, systemic internal control gaps, weak independent testing, and weak BSA/AML training for employees and directors."

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Space Exploration Technologies said it has agreed to acquire a nationwide low-band spectrum licence portfolio to help Starlink Mobile become "a major mobile carrier in the US". Operating from Starbase, Texas, SpaceX is an aerospace, satellite communications and artificial intelligence company headed by Founder and Chief Executive Officer Elon Musk. SpaceX said the portfolio provides up to 14 megahertz of paired spectrum in the 800 MHz band. Once SpaceX receives final approval from the Federal Communications Commission, Starlink Mobile will deploy "a flexible architecture" that combines its satellite-to-mobile constellation with an advanced terrestrial deployment that can connect devices everywhere. The company's space-based broadband network already serves millions of customers across the US and elsewhere.

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The trust that holds President Trump's assets bought millions of dollars' worth of Meta and SpaceX securities in August, according to a document released. Although the trust is managed independently, the thousands of trades made since the start of Trump's second term have drawn accusations of conflicts of interest. Many companies - notably SpaceX, with its US government contracts - stand to be directly affected by decisions of the Trump administration. According to the filing posted by the Office of Government Ethics, between USD5 million and USD25 million in shares of Meta, the parent of Facebook and Instagram, were purchased. In SpaceX's case, the purchase was of bonds - the company's debt - totalling between USD1 million and USD5 million.

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AI startup Manus, whose acquisition by Meta was blocked by the Chinese government, said it had completed a funding round that raised more than USD500 million. It comes just weeks after the Chinese-developed, Singapore-based company said it had resumed independent operations after separating from the US tech giant. Manus is an agent tool that can carry out real-world tasks for users - currently a hot sector in global tech, with AI labs racing to release personal assistants. Butterfly Effect, the parent company of Manus, said in a statement that the funding round - the first since its founders and investors bought back the firm from Meta - was led by Boyu Capital and IDG Capital.

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Deutsche Lufthansa airlines have suspended flights to Saudi Arabia's capital Riyadh following renewed attacks on the city's airport by Yemen's Houthi militia. All flights to Riyadh have been cancelled through October 16, the German aviation group said in response to an inquiry, citing the latest developments in the Middle East. The Iran-backed Houthis again claimed responsibility for an attack on Riyadh's King Khalid International Airport. The group's military spokesman, Yahya Saree, said the militia had fired a ballistic missile at the airport. Saudi Arabia said several projectiles had been intercepted. Witnesses reported hearing four explosions in quick succession in Riyadh.

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US Vice President JD Vance said that software firm Microsoft was being suspended from a key visa program as part of a fraud crackdown by President Trump's administration. Top US universities including Harvard that have long been in Trump's crosshairs over supposed left-wing bias also face an investigation over alleged visa fraud, said Vance. Vance, who is widely considered to be the frontrunner for the Republican presidential nomination in 2028, was named by Trump to head an anti-fraud task force earlier this year. "Our message to Microsoft is: you're a great American company, but you've got to hire great American workers," the vice president told a press conference at the White House.

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Chancellor of the Exchequer John Healey will meet next week with executives at top UK retail, hospitality and leisure companies, Sky News reported. The meeting will be held Tuesday morning, 15 days before Healey's first major fiscal statement, in order to discuss the "UK's retail, hospitality and leisure sectors, small businesses and the high street", said one Sky News source familiar with the invitation. Sky sources said executives from Sainsbury's, Marks & Spencer and Tesco were among those who had been invited. In his speech to the Labour Party conference last month, the chancellor pledged to ease both the cost of living and the cost of doing business in this month's budget.

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By Harvey Dorset, Alliance News reporter

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