Sterling was up 0.3% at $1.3585, hovering near its strongest level since mid-August
International News via Reuters:
Sterling gained against the dollar and the euro on Tuesday as traders slightly raised the odds of an outsized rate cut by the Federal Reserve next week while political developments in France weighed on the euro.
Sterling was up 0.3% at $1.3585, hovering near its strongest level since mid-August.
Investors are awaiting U.S. job revisions data due later in the day which could point to the jobs market in worse shape than initially thought, shoring up the case for even deeper Federal Reserve interest rate cuts.
“Markets are positioning for next week’s Federal Open Market Committee (FOMC) and Bank of England meetings, where the Fed will likely signal more cuts this year and the BOE will likely hint at delaying cuts to 2026,” Philip Wee, senior FX strategist at DBS, said in a note.
Money markets have fully priced in a 25-basis point cut by the Fed but an uptick on the odds of an outsized 50-basis point cut weighed on the dollar and pushed it down to a near seven-week low against a basket of major peers on Tuesday. The dollar index was last down 0.1% at 97.26.
The euro, meanwhile, slipped 0.2% against sterling to 0.8662.
The ouster of French Prime Minister Francois Bayrou on Monday kept the euro on the defensive even as analysts say the developments are not sufficient to trigger a fall in the common currency.
Looking ahead, though, analysts reckon that sterling could remain sensitive to fiscal developments in the UK, worries over which have cooled since long-dated gilt yields climbed to their highest levels since 1998 last week.
Sterling is likely to be “particularly susceptible to jitters at the long end of the curve”, said Jane Foley, head of FX strategy at Rabobank.
British finance minister Rachel Reeves is scheduled to announce the budget on November 26.
Reporting by Jaspreet Kalra; Editing by Emelia Sithole-Matarise
The event at the company’s Cupertino, California, headquarters comes in the midst of a global trade reordering sparked by U.S. President Donald Trump
International News via Reuters:
Apple on Tuesday is expected to unveil a new lineup of iPhones, including a thinner “Air” model that could be a precursor to a folding phone next year.
The slimmed phone, which analysts said is likely to be slotted in the middle of Apple’s handset lineup between less expensive iPhone 17 models and pricier iPhone 17 Pro models, will likely be the star of an event that will otherwise feature incremental upgrades to Apple Watches and other mainstay product lines.
The iPhone Air will go head-to-head against Samsung Electronics’ Galaxy S25 Edge, and analysts told Reuters it could be a stepping stone toward competing with Samsung’s folding phones, which are in their seventh generation.
The event at the company’s Cupertino, California, headquarters comes in the midst of a global trade reordering sparked by U.S. President Donald Trump, with Apple estimating that tariffs will cost it more than $1 billion in the current fiscal quarter. Analysts are watching closely to see whether the company will increase the price of iPhones, or seek alternative routes to making up for tariff costs such as keeping the prices of base iPhone models steady while increasing the cost of versions with more storage.
The new iPhones will also arrive without significant upgrades to Siri, Apple’s virtual assistant, which Apple has pushed off until next year. In the meantime, analysts are closely watching to see whether Apple, which has tapped ChatGPT creator OpenAI as a partner to power certain artificial intelligence features in its operating systems, will add more AI partnerships to its lineup before the arrival of a revamped Siri.
Alphabet’s Google last month unveiled new phones, including a folding model, that served as a platform to show off its Gemini AI model.
Reporting by Stephen Nellis and Aditya Soni in Cupertino, California; Editing by Sayantani Ghosh and Matthew Lewis
Consumers remain cautious about spending in an environment of sticky inflation, slow rate cuts and shifting weather patterns that has created concern about price hikes and unemployment
International News via Reuters:
British homeware retailer Dunelm cautioned on Tuesday that it has yet to see signs of sustained recovery in consumer demand, sending its shares down 7.3%, even as performance in its new fiscal year was off to a positive start.
Consumers remain cautious about spending in an environment of sticky inflation, slow rate cuts and shifting weather patterns that has created concern about price hikes and unemployment.
Dunelm, which sells items ranging from armchairs to kitchenware, said it was “pleased with early trading” of fiscal 2026.
Regular promotions and discounts have helped the retailer attract shoppers looking for cheaper deals, and the company is also investing in artificial intelligence-powered search to boost customer retention.
Dunelm has also been expanding its physical footprint, targeting opening of five to 10 more superstores in fiscal 2026.
“We’ve learned to navigate a volatile consumer environment,” outgoing CEO Nick Wilkinson said in a statement. He will be succeeded by Sainsbury’s executive Clodagh Moriarty at the beginning of October.
Jefferies analysts described the results as “solid enough,” but said that the absence of signs of a consumer recovery could be a dampener in the near-term.
In August, several major British retailers wrote to finance minister Rachel Reeves warning that further tax increases in the upcoming budget, following April’s rise in wages and employers’ social security contributions, could hurt living standards.
Dunelm reported a pre-tax profit of 211 million pounds ($286.41 million) for the year ended June 28, up 2.7% from the prior year, and in line with analysts’ consensus at the same level, according to a company-compiled poll.
The Leicester-headquartered company added it was confident of progressing toward its medium-term target of a 10% market share.
($1 = 0.7367 pounds)
Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Frances Kerry
The cancelled flights will affect 27,000 passengers
International News via Reuters:
KLM, the Dutch arm of airline group Air France KLM, will cancel 100 flights on Wednesday after ground crew announced a two-hour strike, a spokesperson for KLM said on Tuesday, confirming a report by Dutch News Agency ANP.
The cancelled flights will affect 27,000 passengers, the spokesperson added.
European airlines have struggled this summer with the fallout of strikes, causing delays across the continent. Budget carrier Ryanair said it was forced to cancel multiple flights in July tied to French air traffic control strikes.
KLM reached an agreement with some labour unions last week, but ongoing labor disputes on a collective agreement continue as the two unions that were not part of the deal said they would move forward with strike action.
A two-hour strike by ground staff is planned on Wednesday morning, followed by a four-hour strike next Wednesday, September 17, also in the morning.
Flight cancellations can have knock-on effects for the entire flight schedule, causing delays and challenges for the aviation system.
Reporting by Charlotte Van Campenhout and Joanna Plucinska; Editing by Louise Heavens and Emelia Sithole-Matarise
The blue-chip FTSE 100 edged up 0.1% by 0927 GMT, while the domestically focussed mid-cap index was flat
International News via Reuters:
Britain’s FTSE 100 edged up higher on Tuesday as industrial miners advanced after Anglo American jumped on a merger deal.
The blue-chip FTSE 100 edged up 0.1% by 0927 GMT, while the domestically focussed mid-cap index was flat.
Industrial miners rose 3.2%, led by Anglo American, that rose 9.9%, to top the FTSE 100, after the miner said it has agreed to merge with Canada’s Teck Resources in a $53 billion deal to form a newly combined company Anglo Teck.
“Despite the uncertainties around whether the Teck takeover will truly generate value for the company and investors…the deal is a win for the UK stock market as the enlarged Anglo Teck group will have its primary listing in London,” said Russ Mould, investment director at AJ Bell.
“Anglo clearly believes the UK works well as a listing venue and that sends a positive message to other businesses undergoing M&A.”
Precious metal miners rose for a third day, tracking higher gold. Endeavour Mining added 2.1%, while Hochschild Mining rose 1.3%.
The real estate sector also advanced, with Segro up 1.7%.
On the flip side, Aerospace and defence companies led sectoral declines with Rolls-Royce down 1.4%, while BAE Systems fell 1.1%.
Other industrials stocks such as Spirax and Experian also declined.
Among other moves, homeware retailer Dunelm fell 8.3%, to the bottom of the mid-cap index, after it cautioned that it has yet to see signs of sustained recovery in consumer demand.
Gamma Communications rose 5.8%, to top the mide-cap index, on strong first-half revenue growth.
Technology and services provider Computacenter gained 2.5% on flagging strong start to third-quarter.
Insurer Phoenix Group was up 2.3% following a 7.6% decline in the previous session when it said it would rebrand as Standard Life in March 2026, and reported a larger-than-expected drop in book value due to market moves.
Meanwhile, a survey showed British shoppers spent more in August, helped by summer weather.
Reporting by Sukriti Gupta; Editing by Tasim Zahid
Julie Matthews-Borchardt chats with the coaches and the Bermuda Captain
In sports, a tough start for Team Bermuda in their final round of World Cup qualifiers. Despite dominating possession, the Gombey Warriors fell 4 nil to Jamaica on Friday night in front of a capacity crowd of at the Flora Duffy Stadium. More in this report.
The party acknowledged his election, but offered no congratulations, and went on to criticize Mr King for being “loud” and prone to “errors”.
Talking to Gary Foster Skelton today, PLP MP Jamahl Simmons did extend congratulations to Mr King but also cited the OBA’s multiple leadership changes as evidence of poor organization.
Lawmakers voted to oust Prime Minister Francois Bayrou and his minority government with 364 votes against the veteran centrist politician and 194 in his favour
International News via Reuters:
France’s parliament brought down the government on Monday over its plans to tame the ballooning national debt, deepening a political crisis that is weakening the euro zone’s second-largest economy.
Lawmakers voted to oust Prime Minister Francois Bayrou and his minority government with 364 votes against the veteran centrist politician and 194 in his favour.
President Emmanuel Macron, who is facing calls from the opposition to dissolve parliament and resign, will instead hunt for his fifth prime minister in less than two years. His office said he would appoint one in the next few days.
The next government’s most pressing task will be to pass a budget, the same challenge Francois Bayrou faced when he took office nine months ago. Securing the backing of a very divided parliament will be equally hard.
“You have the power to bring down the government, but you do not have the power to erase reality,” Bayrou told lawmakers before losing the confidence vote.
“Reality will remain relentless: expenses will continue to rise, and the burden of debt, already unbearable, will grow heavier and more costly,” he said.
Bayrou will tender his resignation on Tuesday, his office said.
He had called the confidence vote to try to win parliamentary support for his strategy to lower a deficit that stands at nearly double the European Union’s 3% ceiling, and to start tackling a debt pile equivalent to 114% of GDP.
But opposition parties were in little mood to rally behind his planned savings of 44 billion euros ($51.51 billion) in next year’s budget, with an election for Macron’s successor looming in 2027.
“This moment marks the end of the agony of a phantom government,” far-right leader Marine Le Pen said, pushing for a snap parliamentary election, which Macron has so far ruled out.
“Macron is now on the front line facing the people. He too must go,” Jean-Luc Melenchon, leader of the hard-left France Unbowed, said on X.
WHO’S NEXT?
A lengthy period of political and fiscal uncertainty risks undermining Macron’s influence in Europe at a time when the United States is talking tough on trade and security, and war is raging in Ukraine on Europe’s eastern flank.
The French president could now nominate a politician from his own centrist minority ruling group or from the ranks of conservatives as the next premier, but that would mean doubling down on a strategy that has failed to yield a stable alliance.
He also could tack to the left and nominate a moderate socialist, or choose a technocrat.
No scenario would be likely to hand the next government a parliamentary majority. It was inevitable that the need to form a new government would result in a dilution of the deficit reduction plan, Finance Minister Eric Lombard said before the vote.
Macron may eventually decide the only path out of the crisis lies in calling a snap election, but he has so far resisted calls from Le Pen’s National Rally and from France Unbowed to dissolve parliament a second time.
FISCAL MESS
Financial markets had anticipated the confidence vote would fail and there was little immediate reaction on Monday. French markets face another test on Friday, when Fitch Ratings reviews its sovereign rating for France. Moody’s and S&P Global follow with their own rating reviews in October and November.
“Over the near-term, I’m sure everyone in markets expects paralysis and downward pressure on ratings,” said Chris Scicluna, head of economic research for Daiwa Capital Markets. As for now, “the outcome was as expected, so markets should react in a modest way.”
France’s EU peers will be watching closely.
France holds the highest deficit as a percentage of GDP in the euro zone – the bloc using the EU’s single currency. It pays more to service its debt than Spain and spreads against benchmark German 10-year bonds are at their highest level in four months.
A rating downgrade would hamper France’s ability to raise money at low interest rates from investors, potentially deepening its debt problems.
The Socialists have offered a counter-budget that would impose a tax of at least 2% on personal wealth greater than 100 million euros ($117.5 million) and generate savings of 22 billion euros – a proposal that would be tough to marry with the pro-business reform agenda of Macron’s presidency.
Discontent may also start brewing on the streets. A grassroots protest movement called “Bloquons Tout” (“Let’s Block Everything”) is calling for nationwide disruption on Wednesday. Trade unions are plotting walkouts the week after.
Like many in France, Mohamed, 80, who sells produce at the Aligre market in Paris, doesn’t think the politicians will find a way out.
“Come back in 10 days and you’ll see nothing will have changed. There won’t be a majority, there will be no budget.”
($1 = 0.8511 euros)
Additional reporting by Dominique Vidalon, Benoit Van Overstraeten, Tassilo Hummel, Makini Brice and Lucien Libert; writing by Ingrid Melander and Richard Lough; Editing by Aidan Lewis, Hugh Lawson, Timothy Heritage and Bill Berkrot
The tomb, which measures nine metres by six metres (29 ft by 19 ft), is the first discovery in Albania of what the experts believe to be a wealthy person’s resting place
International News via Reuters:
Archaeologists in Albania have discovered a large Roman burial chamber dating from the third to fourth century AD, the first of its kind found in the Balkan country that was once part of the Roman Empire.
Tipped off by locals who had noticed some unusual stones on a plateau near the North Macedonia border, staff from the Institute of Archaeology began excavating in early August and found the underground structure whose large limestone slabs were inscribed with Greek lettering.
“The inscription tells us that the person buried here was named Gelliano, a name typical of the Roman period. We are uncertain about the identity of the second individual, but it is likely a family member,” said Erikson Nikolli, the project’s lead archaeologist.
The tomb, which measures nine metres by six metres (29 ft by 19 ft), is the first discovery in Albania of what the experts believe to be a wealthy person’s resting place, grander than other burial sites found in the area.
Local authorities in Albania, where tourism is booming, are already planning to develop the site into a tourist attraction, while residents flocked to the area upon hearing the news of the discovery.
Last week, Nikolli’s team used brushes to reveal the intricately carved edges of the tomb’s white roof stone and walls.
“We also uncovered a piece of fabric embroidered with gold thread, which confirms our belief that we are dealing with a member of the upper class.”
Other findings include glass plates and knives.
Nikolli said that the tomb had been looted at least twice – once in antiquity and later when heavy machinery was used to move a massive rock on top of the chamber.
He explained that the occupant’s name was inscribed in Greek letters but carried a Latin meaning, while a second inscription indicates that the tomb was dedicated to the god Jupiter.
Experts have yet to decipher additional inscriptions on stones found nearby, which are believed to have belonged to another monument now surrounded by cornfields and a quarry.
Reporting by Fatos Bytyci and Florion Goga; editing by Edward McAllister and Sharon Singleton
European automakers at the IAA Mobility show in Munich, running until Friday, also face sinking sales in China
International News via Reuters:
Major automakers showcased their latest models at the Munich car show on Monday, unveiling new EVs and lower-cost models as Europe’s auto sector fights crises ranging from tariff hikes to rising costs and rivalry with Chinese firms on their home turf.
With many companies concerned over Europe’s tough-to-meet carbon emissions targets for 2035, several said they would widen their production focus rather than restrict themselves to electric or other alternative-fuel vehicles.
European automakers at the IAA Mobility show in Munich, running until Friday, also face sinking sales in China, the biggest single market for Volkswagen, BMW and Mercedes-Benz.
“The main problem is that we have many crises at the same time,” VW Chief Executive Oliver Blume told Reuters, citing challenges in China, U.S. tariffs and a huge price tag if restructuring is part of the firm’s cost-cutting drive.
Still, automakers appeared to now be confronting Chinese competition head on, some analysts said.
European automakers are showcasing a number of new models this year, after learning their lesson two years ago when they did not have any new models to counter the Chinese onslaught, said Tu Le, founder of consultancy Sino Auto Insights.
“The Europeans have demonstrated that they are absolutely taking the Chinese seriously,” he told Reuters.
COSTLY TARIFFS
VW’s Blume said U.S. tariffs were costing the firm “several billion euros on our balance sheet” this year.
Still, he said Volkswagen was in positive talks with the U.S. government over substantial investments to mitigate the impact of tariffs, including a plant for its Audi brand.
VW’s luxury sportscar brand, Porsche, meanwhile, was unlikely to reach its 20% long-term margin target as it was “sandwiched” between tariffs and a weak Chinese market, said Blume, who is also CEO of Porsche.
Franco-Italian carmaker Stellantis will no longer only produce EVs as part of its target through 2030, Jean-Philippe Imparato, head of enlarged Europe and European brands, said during a roundtable at the auto show.
Imparato cited EU carbon emissions targets for 2035 as no longer achievable for any carmaker, adding weight to Stellantis’ decision not to restrict production just to EVs.
With high price tags a barrier to broader EV adoption in Europe, automakers have been racing to bring models priced under 25,000 euros ($29,362.50) to the market.
NEW OFFERINGS
China’s No. 1 automaker BYD said it would make its EVs – that are meant for sale in Europe – locally within three years, helping it avoid EU tariffs, while plug-in hybrids should dominate its European sales in the short term, Stella Li, BYD’s No. 2 executive, told Reuters on Monday.
“We are training ourselves to be more European in production,” she said.
The EU imposed tariffs on Chinese-made EVs last year because it believed China’s automakers benefited from government subsidies.
China’s Leapmotor unveiled the B05, a new hatchback model, adding to its EV lineup in Europe as competition heats up for affordable electric models.
The B05 will be delivered in Europe from the second quarter of 2026 after its launch in China in the fourth quarter of this year, the company said, without disclosing price details.
CEO Zhu Jiangming described the model as a sporty coupe that will come in six colours, including Lightning Yellow and Morgan Pink.
Turkish EV startup Togg unveiled a new sedan and said it would launch sales in Europe starting with Germany as it sought new profit avenues in the region’s largest car market.
Togg announced the European launch of its T10X electric SUV, and unveiled the T10F, an electric five-door sedan. Orders for both vehicles will start in Germany at the end of September and pricing details were not disclosed.
For more announcements by individual companies, click on this FACTBOX.
($1 = 0.8514 euros)
Reporting by Nick Carey and Christoph Steitz; Additional reporting by Gilles Guillaume; Editing by Bernadette Baum and Susan Fenton
The group will include technicians from municipal public transport company Carris, which operates the funicular, and experts from universities
International News via Reuters:
Lisbon’s city council has tasked a team of experts with designing a new mechanism to ensure the safety of the Gloria funicular railway that had a deadly crash last week and will remain closed until its revamp, a city official said on Monday.
“We must guarantee maximum security,” the council’s Vice President, Filipe Anacoreta Correia, told reporters, adding the country needed to be reassured that this was the case before the cable car could reopen.
The group will include technicians from municipal public transport company Carris, which operates the funicular, and experts from universities, Portugal’s engineering regulatory organization, and national civil engineering laboratory LNEC, Correia added.
During an extraordinary meeting, the council also voted to give the expert team the final say on when it was safe to resume the funicular’s operation.
A preliminary report said problems with a cable likely caused the funicular railway popular with tourists to hurtle down a hill, killing at least 16 people and injuring another 22 when it crashed into a building.
It said the accident happened in just 50 seconds because, although the pneumatic and manual brakes were activated, they did not have enough capacity to stop the funicular, and there was no other redundant safety system.
Gloria, which opened in 1885, is one of three old funiculars operated by Carris and is used by tourists as well as local residents.
The line connects Lisbon’s downtown area near the Restauradores Square with the Bairro Alto and transports around 3 million people a year.
Reporting by Sergio Goncalves; Editing by David Latona and Rod Nickel
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