US tech firms see strong quarterly earnings

(AWP Alliance News) - European equities are called to open lower despite a recent raft of positive earnings figures from the likes of Meta, Tesla and SpaceX.

Europe is braced for further protests this weekend following a wave of devastating riots in France last weekend, with unrest also spreading to Belgium and Italy.

Meanwhile, China and Russia cosied up, pledging to support "one another's core interests and major concerns" ahead of a possible meeting between the two countries' leaders and US President Donald Trump next month.

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

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MARKETS

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CAC 40: called down 62.0 points, 0.8%, at 7,859.68

DAX 40: called down 142.7 points, 0.6%, at 25,502.34

FTSE 100: called down 40.5 points, 0.4%, at 10,712.38

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Hang Seng: down 2.9% at 22,971.93

Nikkei 225: down 1.7% at 63,494.80

S&P/ASX 200: down 0.4% at 8,795.20

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DJIA: closed up 360.21 points, 0.7%, at 52,856.09

S&P 500: closed up 44.60 points, 0.6%, to 7,757.17

Nasdaq Composite: closed up 278.04 points, 1.1%, at 26,702.86

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US 10-year Treasury yield: 5.09% (5.11%)

US 30-year Treasury yield: 5.38% (5.41%)

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EUR: higher at USD1.1244 (USD1.1225)

GBP: higher at USD1.3398 (USD1.3389)

USD: lower at JPY157.69 (JPY158.05)

gold: lower at USD4,091.31 per ounce (USD4,139.04)

oil (Brent): higher at USD110.77 a barrel (USD109.14)

(changes since previous London equities close)

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ECONOMIC CALENDAR

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08:30 EDT Canada PPI

16:00 CEST eurozone consumer confidence

08:45 CEST France business confidence

14:30 SAST South Africa building permits

09:30 CEST Swiss National Bank monetary policy discussion

11:00 BST UK CBI business optimism index

00:01 BST UK consumer confidence

08:30 EDT US initial jobless claims

10:00 EDT US Conference Board leading index

10:30 EDT US EIA natural gas stocks

11:00 EDT US Kansas City Fed manufacturing activity

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TOP ECONOMIC NEWS

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President Trump's pivot away from Ukraine has triggered fresh questions about his attachment to Russian leader Vladimir Putin, the man a top American envoy flattered as a "humanitarian." Trump has cast his dealings with Putin as part of a mega-deal that has secured the release of American detainee Stephen Hubbard - and which Trump says will end Russia's war on Ukraine. At the same time, he has repeatedly berated Ukrainian President Volodymyr Zelensky and called for him to be replaced. "I do things that nobody else can do," Trump told an AFP reporter in the Oval Office on Tuesday when asked about Hubbard. But for Trump's critics, it is the latest example of his willingness to sell Ukraine down the river, especially as he seeks a deal before difficult US midterm elections in November. His ties to Putin have long been under scrutiny.

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But President Zelensky has said he is prepared to freeze the current front lines in the war in a bid to end the conflict. "Yes, right now, we have to freeze," he said in an interview with US broadcaster Fox News on Wednesday. "I think this is [a] real way to end this war." He was responding after being asked whether he would "accept a peace deal that freezes everything the way it is right now, where you still keep 75% or more of your country, regardless of how it started?" "Freeze and stop. And, of course, this is the minimum of what we need from Russia today. Then, of course, we will go to [the] president and to Europeans, and we'll ask [for] security guarantees," he said. Zelensky's position is not new. Kyiv has repeatedly proposed halting the hostilities along the current front lines. But Moscow has rejected this in the past, arguing this would give Ukraine time to rearm. President Putin claims that his troops are constantly advancing, and President Trump tends to share this view. However, on the ground, Ukraine's army has halted the Russian advance in recent months and even pushed it back in some sections.

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Meanwhile, Beijing and Moscow hit out on at "destructive external interference" in Eurasia, in a joint statement during a visit to Russia by Premier Li Qiang where he met President Putin and Prime Minister Mikhail Mishustin. "The two sides pointed out that destructive external interference is the primary factor currently undermining stability across the Eurasian continent," the joint statement published by Xinhua said. "The two sides firmly condemn any acts of external coercion involving the use of force which are aimed at disrupting the process of Eurasian solidarity," it added. "Both sides will always firmly support each other on issues involving one another's core interests and major concerns," the statement also said. "China supports Russia in safeguarding its security, stability, national unity, development and prosperity, sovereignty and territorial integrity, and opposes external forces' interference in Russia's internal affairs." The text made no reference to a mooted upcoming meeting between Putin and his Chinese and US counterparts Xi Jinping and Trump.

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Government agencies and companies around the world shut down websites after two critical flaws came to light involving PHP, a programming language that is the basis for a large share of the internet. PHP sits underneath popular web design platforms, so the weaknesses potentially affect a vast range of websites, from online stores and news outlets to government services. Wiz, one of the security firms that found the issues, estimated that PHP runs about 70% of the world's websites and said the flaws rank "among the most severe vulnerabilities discovered in PHP, and arguably in software history." The US National Security Agency told organisations to patch immediately or pull vulnerable systems offline. The flaws "often provide a direct path to the server's file system or database," the NSA said in a statement on X. Attackers could use them to take over web servers without needing a password. Volker Dusch, a security engineer at the PHP Foundation, told the Wall Street Journal it was the most serious problem PHP had faced in more than a decade, comparing it to Heartbleed, a 2014 flaw that set off a worldwide rush to patch. The discovery came amid a surge in software security disclosures driven by increasingly powerful artificial intelligence models, with the number of vulnerabilities found in 2026 on track to roughly double last year's record total. PHP volunteers released a fix on Wednesday. Security firm Calif found the flaws in August using OpenAI's GPT-5.6 Sol model, as part of an OpenAI-funded audit of PHP's code. Google-owned Wiz said it found them independently weeks later with help from AI models including Google's Gemini 4 Argon and GPT-5.6 Sol.

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Germany's central bank expects economic growth to accelerate again in the fourth quarter following stagnation in the previous months. "German economic output is likely to improve again markedly in the fourth quarter," the Bundesbank said in its monthly report. "However, the future economic recovery depends, not least, on the development of the war in the Middle East." Following two consecutive years of recession, Europe's biggest economy posted marginal growth last year, a trend that continued in the two first quarters of 2026. However, this recovery appears to have been "temporarily interrupted" in the third quarter, with the bank projecting that gross domestic product is likely to have contracted between July and September. Bundesbank economists attribute this to "temporary factors," mainly the low water levels in the Rhine seen this summer during long periods of drought, which weighed on industrial supply chains and foreign trade. "The low water levels are also likely to continue to have a negative impact on foreign trade via European ports as a result of restrictions on inland water transport," the bank wrote.

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UK consumer sentiment continued to deteriorate in October, according to a survey, with confidence among Gen X and Boomers falling in particular amid pension concerns, ahead of the UK government budget due next week Wednesday. Data from the British Retail Consortium-Opinium consumer sentiment monitor showed that expectations for the state of the UK economy over the next three months fell to minus 40 index points in October from minus 34 points in September. Expectations for personal finances deteriorated to minus 18 points in October from minus 15 in September. Expectations for overall spending rose to plus 23 points in October from plus 15 in September. Expectations for personal spending on retail climbed to plus 15 points in October from plus 5 in September. Consumer expectations for personal savings fell to minus 9 points in October from minus 7 in September.

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The UK government has been urged to approve the Rosebank oil and gas field after Jackdaw was given the go-ahead on Wednesday. Gas from the Jackdaw field will start flowing within weeks after Energy Security and Net Zero Secretary Miatta Fahnbulleh backed the scheme. She has now been urged to approve Rosebank, the largest untapped oil field in the North Sea, as a further sign of commitment to production. It comes as The Guardian and The Times reported that Fahnbulleh is leaning towards rejecting Rosebank. A Department for Energy Security & Net Zero spokesperson said it was "speculation". "As the energy secretary has said, each project will be assessed on its own merits," the spokesperson added. Conservative Party leader Kemi Badenoch called for Labour to repeal its ban on all new oil and gas licences. "We have the resources, the expertise and the people," she said, "What we have lost is the confidence to make tough decisions." President Trump, who has called for more drilling, said the UK should now go "full blast" in exploiting North Sea resources. Responding to the news, Trump said: "Great news for the wealth and prosperity of the UK, and the wonderful region of Aberdeen... The UK has started drilling in the North Sea, one of the greatest and most prosperous areas of OIL in the World... They should go FULL BLAST!!! This will make the UK very wealthy again. TAKE DOWN THE COSTLY AND RIDICULOUS WINDMILLS!"

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At least three people were killed in separate attacks on an airport and an oil field in Saudi Arabia on Wednesday, authorities reported, amid an escalation in strikes by the Houthi militia. One person was killed and eight others were injured in an attack on King Fahd International Airport in Dammam on Wednesday evening, the Saudi civil aviation authority said. The attack caused property damage, the extent of which was being assessed, the authority said in a statement on X. Earlier, Saudi air defences shot down a drone which was targeting the Shaybah oil field run by state-owned company Aramco. Two people were killed and two others were injured by debris after the drone was shot down, the Saudi Arabian state news agency SPA reported, citing the Energy Ministry.

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Police banned protests in parts of Paris, as France braced for more demonstrations just days after student and other rallies degenerated into some of the worst street unrest in years. The Paris ban will last from 8:00 am to 8:00 pm (0600 to 1800 GMT) and apply to key landmarks in the French capital, including the Elysee presidential palace, both houses of parliament, as well as tourist havens such as the Louvre museum and the Champs-Elysees. Other areas where rallies will be prohibited include the Bastille and Republique squares, and the Chatelet-Les Halles shopping area which was heavily targeted by looters over the weekend. France has admitted it "lost control" in the frenzy of street violence that erupted last weekend, when masked youths clashed with police, looted shops and vandalised public buildings.

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COMPANY CALENDAR

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AJ Bell PLC - trading statement

American Airlines Group Inc - Q3 results

APA Group - AGM

Aurizon Holdings Ltd - AGM

Barclays PLC - Q3 results

Blackstone Inc - Q3 results

Comcast Corp - Q3 results

Dow Inc - Q3 results

Hermes International - Q3 results

Inchcape PLC - trading statement

Intercontinental Hotels Group PLC - trading statement

J Sainsbury PLC - half year results

Kering SA - trading statement

London Stock Exchange Group PLC - trading statement

L'Oreal SA - Q3 results

Nestle SA - Q3 results

Newmont Mining Corp - Q3 results

Nokia Corp - Q3 results

Pearson PLC - trading statement

Procter & Gamble Co - Q1 results

Rathbones Group PLC - Q3 results

Relx PLC - trading statement

Renishaw PLC - trading statement

Rentokil Initial PLC - trading statement

Roche Holding AG - Q3 sales 2026

Roper Technologies Inc - Q3 results

Sartorius AG - Q3 results

Sartorius Stedim Biotech - Q3 results

Schroder AsiaPacific Fund PLC - Q3 results

Schroder Oriental Income Fund Ltd - Q3 results

Southwest Airlines Co - Q3 results

STMicroelectronics NV - Q3 results

Thales SA - Q3 results

Unibail-Rodamco-Westfield SE - trading statement

VeriSign Inc - Q3 results

Vinci SA - Q3 results

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TOP COMPANY NEWS

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Meta Platforms reported stronger-than-expected quarterly revenue and guidance, as it pledged to continue "investing aggressively" to deliver future growth. "Our investments are paying off, the core business is strong, and we're seeing velocity across the board," said Meta Chief Executive Mark Zuckerberg. The Menlo Park, California-based firm which owns Facebook and Instagram said net income ballooned to USD9.86 billion in the three months ended September 30 from USD2.71 billion the year prior. Income from operations fell 37% to USD12.99 billion from USD20.54 billion, with operating margin halved to 20% from 40% a year ago. This reflected a charge of USD18.59 billion to resolve litigation related to teen mental health and social media, announced in August. Excluding this charge, third quarter income from operations would have increased to USD22.88 billion. Revenue was up 26% to USD64.60 billion from USD51.24 billion, outstripping LSEG consensus of USD63.2 billion. Diluted earnings per share increased to USD3.83 from USD1.05. Excluding the litigation charge, diluted EPS would have risen to USD7.40 compared to consensus of USD5.75. Meta said it was optimistic that its AI agent Muse will become a significant revenue stream in the coming years as it announced bumper third quarter revenue, and a new share structure aimed at supporting future investment. Chief Executive Mark Zuckerberg told the earnings call that Meta expects Muse to serve "billions" of people, and that while average revenue per user for its existing family of apps is several hundreds of dollars, he expects Muse to be higher.

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But a New Mexico judge ruled that Meta must pay USD25 billion to the state after a jury found last month that the social media giant had deceived users in a case related to the Cambridge Analytica scandal, according to media reports. The penalty comes a couple of months after Meta agreed to pay USD18 billion to settle claims brought by 48 other states, including allegations tied to Cambridge Analytica. Meta slammed the case as "a tax on speech." "This ruling... makes it all but impossible to do business in the state of New Mexico," Meta said in a statement. "We are confident we will prevail on appeal."

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Tesla reported better-than-expected third quarter results, leading shares higher, as Wall Street looks towards a potential merger with Space Exploration Technologies. On the SpaceX earnings calls Tuesday night, Chief Executive Officer Elon Musk called a merger of the two "a good idea". Analysts were upbeat on the potential combination. Wealth Club Chief Investment Strategist Susannah Streeter said "Bringing Tesla into the fold does seem as though it's always been on the agenda for Musk. "He's already brought his AI operations into SpaceX, and with Tesla's ambitions in robotics and autonomous driving increasingly overlapping with his wider technology empire, bringing more of his businesses under one roof appears to be part of his plan to dominate the domains of space, AI, satellites and transportation." Tesla reported revenue of USD28.05 billion in the three months to September 30, largely flat from USD28.10 billion a year ago. Net income attributable to the company fell 43% to USD787 million from USD1.37 billion. Revenue came in ahead of the USD27.9 billion LSEG consensus estimate. Diluted earnings per share fell to USD0.22 from USD0.39. Adjusted earnings of USD0.48 beat the USD0.43 consensus.

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Meanwhile, American media billionaire John Malone believes a deal between David Ellison's Skydance and Elon Musk's SpaceX is in the works, he said at an industry summit. "I predict, big prediction, that you'll see a global output deal for Skydance with SpaceX, and an investment by SpaceX into Skydance, to delever Skydance and take a little bit of the burden off David Ellison's shoulders, because he's taking on a pretty big pile of debt," Malone said at the Paley International Council Summit in New York. Malone said SpaceX could potentially invest USD8 billion to USD10 billion in Skydance, according to the Hollywood Reporter. Malone cited the close relationship between Ellison's father, Oracle Corp co-founder Larry Ellison, and Musk.

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SAP backed its 2026 outlook following a strong third quarter. The Walldorf, Germany-based enterprise software provider reported revenue of USD10.27 billion, up 13% from USD9.08 billion a year ago. Of this, Cloud revenue surged 26%. Profit after tax rose 11% to USD2.27 billion from USD2.05 billion. Earnings per share improved to USD1.96 from USD1.72. At quarter-end, the cloud backlog stood at EUR24.1 billion, up 28% from a year earlier. Chief Executive Christian Klein called the period "an outstanding quarter". He said: "Our Autonomous Enterprise strategy is not just resonating, it is being adopted. Our customers are investing in the technology behind it from the cloud and data foundation to our Business AI. They see that Joule Work makes the business case for their transformation more attractive than ever." Looking ahead, SAP continues to expect 2026 cloud revenue towards the upper end of the EUR25.8 billion to EUR26.2 billion range at constant currencies, compared to EUR21.02 billion a year ago. This represents an increase of 23% to 25% at constant currencies.

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Texas Instruments reported third quarter revenue, and fourth quarter guidance, ahead of expectations. Third quarter revenue totalled USD6.06 billion, up 28% from USD4.74 billion a year ago, and ahead of the USD5.92 billion LSEG consensus estimate. Net income jumped 78% to USD2.43 billion from USD1.36 billion. Earnings per share improved to USD2.62 from USD1.48. Chair and Chief Executive Haviv Ilan highlighted "continued broad growth in industrial, automotive and data center". "Our cash flow from operations of USD9.9 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was USD8.4 billion." Looking ahead, TI expects fourth-quarter revenue between USD5.80 billion and USD6.30 billion, above analysts' average estimate of USD5.73 billion, according to LSEG.

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NextEra Energy said it continues to expect completion of its merger with Dominion Energy in the second half of 2027, as it reported surging third quarter net income. The company reported third-quarter net income of USD4.78 billion, up 96% from USD2.44 billion a year ago. Diluted earnings per share improved to USD4.82 from USD2.57. On an adjusted basis, EPS reached USD1.24 per share, ahead of the USD1.18 LSEG consensus estimate. Operating revenue edged up 1.5% to USD8.09 billion from USD7.97 billion. Renewable energy and power generation unit NextEra Energy Resources reported net income of USD1.49 billion, up 17% from a year ago. The business added 3.7 gigawatts of renewable energy and battery storage projects to its backlog, bringing the total to 36.7 gigawatts at the end of the quarter.

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Moncler reported revenue of EUR1.9 billion in the first nine months of 2026, up 3% year on year. Moncler brand revenue totalled EUR1.58 billion, up 2% year on year. In the third quarter, revenue fell 1%, with direct-to-consumer sales down 2%, affected by a challenging operating environment and subdued tourist flows, particularly in EMEA. Wholesale revenue grew 2%. Stone Island - a brand owned by the group - generated revenue of EUR306.2 million in the first nine months, up 6% year on year. In the third quarter, Stone Island revenue rose 5%. Direct-to-consumer sales increased 2%, while Asia and the Americas continued to record double-digit growth. Wholesale revenue grew 7% year on year.

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Electronic Arts plans to slash 400 positions and close its BioWare studio, Bloomberg reported.The cuts represent around 3% of its staff, a source familiar with the company's plans told Bloomberg. This includes around 50 positions at the to-be-shuttered BioWare. The long-running studio is behind role-playing games such as Dragon Age and Mass Effect. In August, the video game developer went private in a USD55 billion deal led by Saudi Arabia's Public Investment Fund, Silver Lake Technology Management and Affinity Partners. The latter was founded by Jared Kushner, the son-in-law of US President Donald Trump. The privatisation deal saddled EA with around USD18 billion in debt, Bloomberg noted. The business told investors earlier this year that it planned to save up to USD700 million in part by cutting research and development costs.

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Fortescue said total ore mined increased in its first quarter, but said iron ore sales were down over negotiations with China Mineral Resources Group. The Perth, Australia-based iron ore producer said total ore mined increased 4.3% to 62.7 million wet metric tonnes in the first quarter ended September 30, from 60.1 million wet metric tonnes a year ago. Quarter-on-quarter, total ore mined was down 3.4% from 64.9 million wet metric tonnes in the fourth quarter of financial year 2026. Total ore shipped also declined, falling 5.8% on-year to 46.8 million wet metric tonnes, from 49.7 million a year ago. Against the previous quarter, ore shipped fell 11% from 51.8 million wet metric tonnes. The firm said iron ore sales were 42.9 million tonnes but were below shipments, due to ongoing negotiations with China Mineral Resources Group. China Mineral Resources are refusing to agree a buy price for Fortescue's iron ore and has banned Fortescue's lower-grade ores. CMRG previously imposed curbs on BHP Group cargoes earlier this year. The firm said: "If negotiations with CMRG are not concluded by calendar year-end, operations may be affected, potentially including adjustments to production."

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Santos narrowed its full-year production guidance despite reporting record output for the third quarter of 2026 with stronger sales volumes and revenue. The Adelaide, South Australia-based oil and gas exploration and production company has trimmed its production guidance for 2026 to a range of 99 to 102 million barrels of oil equivalent from 99 to 105 mmboe previously. Santos said production increased 23% to 26.3 mmboe in the three months ended September 30 from 21.3 mmboe in the same quarter a year earlier. Sales volumes climbed 23% to 26.4 mmboe from 21.5 mmboe previously, while sales revenue jumped 78% to USD2.01 billion from USD1.13 billion. Capital expenditure was at USD511 million, down 19% year-on-year from USD631 million.

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By Harvey Dorset, Alliance News Reporter

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