Stocks globally were lower amid the Middle East turmoil and looming actions from several central banks, including the Federal Reserve

International News via Reuters:

Brent crude prices surged past $100 a barrel on Wednesday and the yield on 10-year Treasury debt hit its highest level since November 2023, as Middle East and inflation concerns weighed down Wall Street.

Brent crude was at $100.27 per barrel in midday trading, up 2.4% on the day, breaching the symbolic price level for the first time since July 24, after Iran said it fired ballistic missiles at a U.S. base in Jordan and both sides claimed to have attacked vessels, raising worries about oil supplies from the region. [O/R]

At the same time, yields on benchmark U.S. 10-year notes rose 3.26 basis points to 4.837%, hitting levels not seen since November 2023, after the Treasury Department announced it would buy up to $6 billion in 10-to-20-year government bonds. The buyback was higher than the $4 billion the Treasury had signaled earlier, but some analysts had expected an even larger purchase as part of a bid to support longer duration bonds. 

Stocks globally were lower amid the Middle East turmoil and looming actions from several central banks, including the Federal Reserve. All three major U.S. indices were lower in midday trading, with the Dow Jones Industrial Average down 0.52%, the S&P 500 lower by 0.39% and the Nasdaq Composite falling 0.61%.

MSCI’s gauge of stocks across the globe fell 0.42%. 

“Brent breaking above $100 is a major psychological milestone for markets, but the bigger concern is what this means for inflation. A prolonged oil shock could keep price pressures elevated and complicate the path for central banks that are already navigating a difficult policy environment,” said Lukman Otunuga, head of market research at FXTM.

CENTRAL BANK DECISIONS AHEAD

The euro edged higher ahead of the European Central Bank’s policy decision on Thursday, with markets widely expecting a hike amid inflationary pressures from the Iran war. The currency reached a more than one-week high of $1.16493. 

The yen strengthened towards the nearly seven-month high touched against the dollar on Tuesday as traders exited short positions in the Japanese currency. Expectations are building for faster Bank of Japan rate hikes and a potential rush of repatriation of Japanese capital.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.03% to 98.75. 

U.S. producer and consumer price reports are set to be released later this week, with policymakers looking for further evidence that inflation pressures are continuing to cool.

The latest Reuters survey of economists found about 70% expect the Federal Reserve to keep rates steady at its rate-setting meeting next week, but that certainty is below the 90% expectation of steady rates in August.

“Financial markets remain genuinely divided over whether the FOMC will raise rates at next week’s September meeting, an unusual state of uncertainty this close to a decision date,” said Matthew Ryan, head of market strategy at global financial services firm Ebury.

Gold gained 1.5% to around $4,417 an ounce. [GOL/]

Reporting by Kevin Buckland, Sruthi Shankar and Pete Schroeder; Editing by Toby Chopra, Ros Russell, Chizu Nomiyama and Deepa Babington

Germany, Denmark, the ​Netherlands, Austria, Finland and Sweden said in August that the Commission’s proposed budget of nearly €2 ⁠trillion ($2.33 trillion) for 2028 to 2034 should be reduced “in a ​balanced manner” with all areas of spending contributing to ​cuts

International News via Reuters:

German Chancellor Friedrich Merz called for hundreds of billions of ‌euros in cuts to the European Commission’s proposed long-term budget on Wednesday, arguing that the plan was unaffordable at a time of domestic spending restraint.

Germany, Denmark, the ​Netherlands, Austria, Finland and Sweden said in August that the Commission’s proposed budget of nearly €2 ⁠trillion ($2.33 trillion) for 2028 to 2034 should be reduced “in a ​balanced manner” with all areas of spending contributing to ​cuts.

“Europe needs both realism and reform,” Merz said after meeting European Council President Antonio Costa in Berlin, noting that the Commission’s proposals for the next multiannual financial framework envisage a 60% rise over the current seven-year budget period. 

“At a time of budget cuts in all member states, that is simply unaffordable,” Merz said about the proposed budget.

The ⁠EU’s Multiannual Financial Framework (MFF) requires unanimity among all 27 member states. Costa and Merz said they want to reach an agreement by the end of 2026.

“We cannot ask (for) more from member states,” Costa said. “We need to create new own resources in order to protect the national budgets. All national budgets must be respected.”  

Merz said cuts should apply across all policy areas and rejected relying on further joint EU borrowing to bridge the gap.

“Excessive debt threatens our sovereignty and our capacity to act,” Merz said, adding that governments had the “admittedly painful task” of setting priorities.

Merz called for the bloc’s next budget to shift spending towards competitiveness and defence, arguing that a “20th-century budget” could not address current challenges. 

Reporting by Maria Martinez in Berlin and Inti Landauro in Brussels; Editing by Alexander Smith

The deal, which saw strong demand, is the latest example of how hyperscalers are increasingly selling bonds across markets outside of the U.S. this year

International News via Reuters:

Amazon will raise £4.25 billion ($5.76 billion) in its first-ever sterling bond sale, more than initially expected, according to a bank managing the deal, as hyperscalers rush to diversify their funding sources to finance the AI boom. 

The deal, which saw strong demand, is the latest example of how hyperscalers are increasingly selling bonds across markets outside of the U.S. this year, from euros to Swiss francs and the yen, as they make sure they can raise capital wherever they can, given their huge funding needs.

They have already issued more than $200 billion of debt this year, more than doubling from the whole of 2025, according to LSEG data.

Amazon saw over £12 billion in demand for the four-part deal. It will raise £1.25 billion from 3-year bonds, and £1 billion each from 6-, 12- and 19-year bonds, according to the memo sent by the lead manager seen by Reuters.

They will price to offer spreads of 53 basis points, 75 basis points, 90 basis points and 93 basis points, respectively, over corresponding British government bonds, the memo added.

The pound is the latest currency Amazon has added to its funding programme after tapping the euro, Swiss franc and Canadian dollar bond markets.

The European Central Bank warned earlier in September that hyperscalers’ push into the euro zone bond market could potentially crowd out other borrowers and push up their financing costs.

Google-parent Alphabet, was the first hyperscaler to tap the sterling market in February, when it raised £5.5 billion from a five-part deal, including a rare 100-year bond. It has also raised Japanese yen, Canadian and Australian dollar debt this year. 

According to LSEG data, this is Amazon’s first bond sale since July, when it received weaker demand than in the past for a $25-billion offering, in one of several signs that the heavy pace of hyperscaler borrowing has started to test the limits of investor demand.

($1 = 0.7373 pounds)

Reporting by Yoruk Bahceli; Editing by Amanda Cooper

The government, which lacks a majority in the lower house, is set to propose its budget in the coming weeks though several opposition parties have already said they would reject it

International News via Reuters:

France plans to reduce, but not abolish, the exceptional corporate tax surcharge imposed on very large companies in its 2027 budget, Prime Minister Sebastien Lecornu said in a letter to executives on Wednesday, pledging tax stability to support growth.

• The government, which lacks a majority in the lower house, is set to propose its budget in the coming weeks though several opposition parties have already said they would reject it.

• France introduced the temporary surtax on large companies in 2025 that was only supposed to last a year, but was rolled over into 2026 under a budget compromise.

• In the letter, Lecornu also said that the government planned to introduce a new tax incentive to encourage business transfers, particularly to employees.

• Under the planned “Papin Pact”, companies taken over by staff would benefit from accelerated depreciation of new equipment needed for production, with enhanced support for small businesses.

• Lecornu said the government would review state support for businesses to determine whether they genuinely promoted investment, innovation, decarbonisation or production in France, or had become ineffective windfalls.

• He said there would be no new taxes in the 2027 budget, arguing that France could not restore its public finances by undermining economic growth.

• France’s largest employers’ organisation Medef said it welcomed Lecornu’s message, saying it was necessary to address the concerns of business leaders.

Reporting by Charlotte Van Campenhout; Editing by Alison Williams

Wednesday’s proposal is the latest in a series of Commission measures to improve the Single Market, security and supply chain resilience, and prevent industrial decline

International News via Reuters:

The European Commission has proposed new rules for public tenders that would create an EU-wide platform to improve access and slash paperwork for companies, and give EU governments the option to exclude bids based on EU content criteria.

Wednesday’s proposal is the latest in a series of Commission measures to improve the Single Market, security and supply chain resilience, and prevent industrial decline following warnings by former European Central Bank president Mario Draghi and former Italian Prime Minister Enrico Letta. 

Public buying accounts for around 15% of the European Union’s gross domestic product, or about €2.5 trillion ($2.91 trillion) in 2025, making it a powerful tool for tackling intense international competition and supply chain vulnerability. But critics, including Draghi and Letta, say that the bloc has not used procurement to harness its collective strength. 

Companies bidding for tenders complain they face a myriad of hard-to-navigate templates, languages and duplications across the bloc’s 27 jurisdictions, from federal to regional. 

The new rules will simplify the tender process and make it harder for authorities to award contracts largely on the basis of cost to counter, for example, cheap goods offered by Chinese companies that may be subsidised.  

“This is a radical simplification, as we are moving from three directives to a single regulation,” Commission Executive Vice President Stéphane Séjourné told reporters. 

“We believe that part of the economic response and the shift in Europe’s economic model also stems from the internal market and its strengthening…It is therefore a strategic lever at a time when, in particular, China, India, the United States and all the major powers are now using this lever for their own industrial and economic strategies,” Séjourné said.   

QUALITY, EUROPEAN PREFERENCE

Procurement is also a central part of the European Innovation Act, another initiative to promote EU competitiveness proposed on Wednesday. It is designed to provide sufficient demand for innovations to come to market by increased investment, including from public bodies.

The new regulation would replace the EU’s three existing public procurement directives, reducing national discretion in how the rules are applied. The rules will cover all sectors except defence.  

Authorities would be encouraged — and in some cases required — to take account of risks linked to critical infrastructure, cybersecurity, supply-chain disruptions, strategic dependencies and foreign influence when awarding contracts.

Contracts would have to be awarded on the basis of the “best price-quality ratio”, with quality criteria accounting for at least 30% of the total score and at least 50% for labour-intensive contracts. 

The measures stop short of a blanket “Buy European” requirement, but would allow European authorities to rule out bids for public contracts that have less than 50% European content by total value, restrict access to EU operators only, and favour EU companies in strategic sectors. Countries with which the EU has trade agreements and reciprocity on public buying will not be excluded. 

The new EU-wide digital procurement system would include electronic business credentials, interoperability rules for procurement platforms and national and EU-level procurement data spaces designed to improve transparency, oversight and cross-border access to contracts.

“It’s a very simple solution for businesses and SMEs alike: just a single registration on this platform, rather than having to register as many times as there are public tenders to respond to,” Séjourné said. 

($1 = 0.8601 euros)

Reporting by Julia Payne, Editing by Catherine Evans

The Finnish deal includes a 22-year purchase agreement for up to 50% of the energy output of one of Finland’s two nuclear plants, its operator Fortum said separately

International News via Reuters:

Alphabet’s Google will invest at least €13 billion ($15.1 billion) in artificial intelligence infrastructure in Finland over the next two years and has signed its first nuclear power contract outside the U.S., it said on Wednesday.

The Finnish deal includes a 22-year purchase agreement for up to 50% of the energy output of one of Finland’s two nuclear plants, its operator Fortum said separately.

Nuclear power, as a source of large amounts of low-carbon energy, is one of the attractions Finland offers as companies including Microsoft and TikTok owner ByteDance as well as Google seek sites for data centres while containing energy costs and meeting climate goals.

“This is Google’s first nuclear energy deal outside of the United States, and we think it’s a really important cornerstone to everything that we are doing here,” the U.S. company’s Chief Investment Officer Ruth Porat told reporters in Helsinki.

Fortum and Google will also explore the development of new nuclear and renewable energy in Finland, the companies said.

Fortum’s share price rose 10% by 0825 GMT, outperforming a 1.4% increase in the Helsinki benchmark stock index.

BIGGEST DEAL SO FAR IN EUROPE

Alphabet this year increased its global investment to between $195 billion and $205 billion as it seeks to capture growing computing demand. Google said the AI investment deal in Finland is the biggest yet in Europe.

The investments will include data centres, electricity grid improvements and clean energy and battery projects driving services such as Gemini, Search, Maps and YouTube, Google said in a statement.

“The new digital infrastructure will serve as building blocks for Finnish and broader European digital readiness, innovation, and AI development,” the company said.

The investment, to be undertaken in 2027 and 2028, will contribute some $3.6 billion to Finland’s gross domestic product during the construction phase, and is projected to support some 7,000 jobs annually once operational, Google said.

Finland’s Prime Minister Petteri Orpo said in a statement Google’s decision was “a clear testament to our strengths”. 

“The value of the data economy extends far beyond direct investment into spurring innovation, research, and development,” he added.

In its statement utility Fortum said the long-term purchase deal provided economic certainty for a lifetime extension and upgrade of the Loviisa power plant through 2050. The plant is situated near Google’s Hamina data centre.

Apart from copious amounts of low-emission power, Finland’s cold climate lowers costs because it reduces the amount of energy needed to cope with the heat produced by data centres.

($1 = 0.8603 euros)

Reporting by Essi Lehto, editing by Terje Solsvik and Barbara Lewis