Latest Developments

Europe
The Guardian

S&P 500 and Nasdaq surge to record highs after AI chipmaker rally

A trader on the stock exchange floor. Photograph: Brendan McDermid/ReutersView image in fullscreenA trader on the stock exchange floor. Photograph: Brendan McDermid/ReutersStock marketsS&P 500 and Nasdaq surge to record highs after AI chipmaker rallyS&P tops 7,800 for first time in history as investors optimistic despite signs of instability in US economy The S&P 500 and Nasdaq closed at a record high after a rally around AI chipmakers and a dip in US treasury yields. At market’s close, the S&P 500 was up 0.58%, topping 7,800 for the first time in its history. The tech-heavy Nasdaq index rose 0.45%, while the Dow, which is slightly down from its record high in August, climbed 0.49%. Investors appeared optimistic after recent developments for chipmakers including Marvell Technology, Advanced Micro Devices and Broadcom that showed growth in the markets for the chips used to power AI. Wall Street has also grown more optimistic that the US Federal Reserve will leave interest rates unchanged at its next board meeting in October. Job figures from September showed underwhelming growth in the labor market, and multiple Fed officials have said the next interest rate increase can probably wait. The optimism in the stock market, largely coming from continuing investment in AI, has defied other signs of instability in the US economy and global politics. The US bond market, typically seen as one of the safest investment vehicles, has been in turmoil in recent weeks. US bond yields, or the return an investor receives when a bond matures, reached recent highs amid concerns over high inflation and interest rates. The yield for 10-year US treasury bonds on Monday reached 5.349%, the highest since April 2022, before dipping back down on Tuesday. For American consumers, higher energy prices continue to be a major pain point. While gas prices have dipped over the last week, prices are still about $1.20 a gallon on average higher than a year ago. Diesel, which is used to fuel trucks, buses and trains, has also gone down from record high but is still over 40% higher than a year ago. The economy is expected to be a top issue in the upcoming midterm elections, with many voters expressing frustration over high prices. Donald Trump, who has been stumping for Republican candidates across the country, has been trying to paint a different picture for voters. At a rally in Nebraska on Monday night, Trump said that “our nation is doing better now than it’s ever done” and that gas prices would fall below $1.85 a gallon “in no time”.

S&P 500 and Nasdaq surge to record highs after AI chipmaker rally
North America
CNBC Finance

Chick-fil-A wants to stay a family business even as it expands in the U.S. and abroad

With restaurants as far-flung as Singapore, Chick-fil-A has expanded far beyond its Southeastern stronghold in recent years, but CEO Andrew Cathy still wants the family-owned business to stay true to its roots. Nearly five years ago, Cathy succeeded his father, Dan, as chief executive of the chicken chain his grandfather, S. Truett, founded. He took the reins as elevated inflation rocked the restaurant industry and a bevy of new chicken rivals looked to challenge Chick-fil-A's dominance. Since then, not much has changed — except for sluggish traffic across the industry as consumers have become more selective about their dining choices. The challenging conditions have led to disappointing results for McDonald's, Popeyes, KFC and other restaurant competitors. While Chick-fil-A is not immune to these headaches, Cathy told CNBC that the chain's restaurants have not seen the same downturn. "This has been a good year," the Atlanta-based Cathy said in downtown Manhattan before a planned activation to raise awareness for the chain's Shared Table hunger relief program. "Our operators have done such a good job executing on the fundamentals and adding the hospitality to it," he added. As a privately held business, Chick-fil-A does not report quarterly results. However, franchise disclosures reveal that the company's revenue in 2025 rose 14% to $10.3 billion, while its net income ticked up 1% to $1.05 billion. Its roughly 3,000 locations generated $23.92 billion in system sales last year, making it the third-largest U.S. restaurant by sales, trailing only McDonald's and Starbucks. Chick-fil-A has no plans for an initial public offering or any other opportunities for outside investment. Cathy said the company plans to stick with its "calculated" and "conservative" growth. But he may be underselling Chick-fil-A's recent expansion. It opened 179 restaurants last year and has launched in international markets like Canada, Singapore and the United Kingdom in recent years. Staying private also has advantages, particularly as restaurant stocks have broadly struggled this year. Shares of Jersey Mike's have fallen nearly 28% since its initial public offering in July, while Dunkin' owner Inspire Brands is reportedly unlikely to go public this year unless the sector's performance improves. "We're able to plan for the quarter century, and we don't have to plan for the quarter," Cathy said. During Cathy's tenure so far, Chick-fil-A has pursued bold ideas for future growth, like a $1 billion international expansion plan and Daybright, a new beverage-focused restaurant concept created by its venture arm. But the company is trying to balance those new strategies with its existing traditions.

Chick-fil-A wants to stay a family business even as it expands in the U.S. and abroad
Asia-Pacific
The Straits Times

India unveils tough curbs on dollar demand to defend rupee

The central bank will open a special window to meet the daily dollar needs of three state-run oil-marketing companies. MUMBAI – India on Oct 10 unveiled fresh measures to shore up the rupee, redirecting oil companies’ dollar purchases away from the spot market and tightening hedging rules as the currency hovers near record lows. The steps by the Reserve Bank of India (RBI) come as persistent pressure on the rupee, fuelled by surging oil prices and global bond yields, has driven the currency down by more than 7% in 2026. The central bank will open a special window to meet the daily dollar requirements of three state-run oil-marketing companies, easing pressure on the spot market. Under such an arrangement, used during periods of currency stress, the RBI provides oil companies dollars directly from its foreign exchange reserves. Indian Oil, Hindustan Petroleum and Bharat Petroleum will be allowed to access the facility from Oct 12, the RBI said. “Addressing oil companies’ dollar requirements removes one of the largest sources of demand from the FX market, which should help reduce volatility, but it will show up in a depletion of reserves,” said Dhiraj Nim, foreign exchange (FX) strategist at ANZ Bank in Mumbai. After the steps were announced, the rupee strengthened by about 0.6% against the dollar in the non-deliverable forward market, albeit in thin trading. Elevated demand for protection against further rupee losses has weighed on the currency in recent months, with importers’ appetite for dollars far exceeding exporter supply. The RBI has responded by tightening rules on speculative corporate activity and raising the cost of protection against further rupee weakness. It is “trying to moderate potentially destabilising derivative demand, improve the integrity of underlying exposure verification and discourage circumvention through multiple transactions or repeated rebooking”, a person familiar with the central bank’s thinking said, commenting on condition of anonymity as they are not authorised to speak to the media. The central bank has mandated that forex dealers maintain a 20% “foreign exchange risk reserve” on derivative contracts used to buy foreign currency against the rupee, for the purposes of hedging current account transactions. The requirement applies to transactions with a notional value exceeding US$2 million (S$2.6 million). The reserve requirement will lift the cost of buying protection against further rupee weakness, helping to discourage excessive hedging, two bankers said, speaking on condition of anonymity.

India unveils tough curbs on dollar demand to defend rupee
North America
CNBC Finance

Why brands like E.l.f., Wendy's and Gap are branching out into original music

Watch out Sony, a new music producer is in town. And this time it's the same brand that makes your favorite lip gloss. E.l.f. Beauty announced late last month the release of "Mirror Mix," an original album featuring music from seven rising artists. The album comes as the makeup company ramps up its marketing spend, fueled in part by tariff refunds. E.l.f.'s pursuit of music is part of a growing wave of retailers blending shopping with entertainment. The album features artists including a WNBA player and a Grammy award-winning singer-songwriter. It's available to stream on Spotify, Apple Music, Amazon and Roblox, according to a press release. In addition to elevating the voices of independent artists, the new music is intended to help E.l.f. better connect with its customers, Chief Integrated Marketing Officer Patrick O'Keefe told CNBC in an interview. "When you put community at the center of everything … programs and campaigns and building music, which evokes emotion … when you do that, it changes the conversation. And we want to be top of mind with our community," O'Keefe said. "Mirror Mix" is E.l.f.'s second album, following the company's 2024 release of "Get Ready With Music, The Album." Its first venture into music, the song "eyes.lips.face.," debuted in 2019. "We were one of the first movers on TikTok, and we created an original song around eyes, lips, face, and it went viral. It propelled the brand into new dimensions," O'Keefe said. "People didn't know what eyes, lips, face — what E.l.f. — stood for, and we created the song to embrace what it stands for and what it means for us as a brand." The E.l.f.-released music is part of the company's strategy in "disruptive marketing," or marketing that aims to create moments consumers will pay attention to. E.l.f. has also launched a TikTok reality show and became one of the first brands to launch a channel on Twitch and offer live shopping on the platform. "Our marketing works best when you start seeing that virality on innovation, our ability to feed that and be able to sustain that demand and build growing franchises," CEO Tarang Amin said at the Deutsche Bank dbAccess Global Consumer Conference in early June. "We're an entertainment company that happens to sell beauty products," Amin joked.

Why brands like E.l.f., Wendy's and Gap are branching out into original music
Europe
BBC Business

We spent thousands on a Tui river cruise but ended up on coach trips

Passengers who paid thousands of pounds for European river cruises with Tui have described their anger after their itineraries changed to involve hours spent on coach trips instead. Several have told the BBC they believe they should get some money back, but have been offered no refund. Tui apologised and blamed low water levels on the Danube, adding that customers continued their holidays on amended itineraries under its standard booking conditions. It follows previous complaints about conditions on board two of Tui's river vessels. Those who contacted the BBC include Richard Pearson from Lincolnshire, whose week-long holiday began on 21 September. Upon arrival in Budapest, he says passengers were told their vessel, Isla, was in Vienna and could not get to them, so they were being put up in a hotel instead, which he describes as "average". The vessel then sailed overnight - meaning no chance to take in the scenery - to Krems. It then stayed there for a few days, with passengers bussed on day trips to locations between 45 minutes and two hours away. The return sailing to Vienna was also in the dark. The one time there was a "scenic sail" during the day, it was a round trip back to Krems which started early in the morning. Richard says the food and the staff on board Isla were excellent, but overall the experience was not what he expected when he booked the trip - especially the schedule. He worked out that "we spent 14 to 15 hours of that holiday on a coach trip, plus time wasted waiting for coaches". Richard says the reason people were given for the changes of plan was "circumstances beyond [Tui's] control because of the low water levels". "[But] the main thing for us was it wasn't relaxing. It wasn't a river cruise, it was a little bit of sailing, a floating hotel with coach transfers."

We spent thousands on a Tui river cruise but ended up on coach trips
Europe
BBC Business

Hedgehog among four animals chosen to feature on new banknotes

Image source, Bank of England/PA WireByKevin PeacheyCost of living correspondentPublished4 hours agoBanknotes are getting a nature makeover - and the Bank of England has revealed the four creatures that will feature on our money. The Atlantic puffin, barn owl, buff-tailed bumblebee and European hedgehog will appear on the redesigned notes in years to come - although no decision has been made about which animal will be shown on which banknote. The owl, bumblebee and hedgehog topped a public vote in their specific categories, and the puffin was included to celebrate marine life, the coastline and bring variety to the notes, the Bank said. Wildlife is replacing notable figures from history, such as Sir Winston Churchill, on our cash in a decision that angered a number of leading politicians. "We have chosen four distinct and inspiring animals that not only showcase the great variety of wildlife we have in the UK but will also enhance the security of our banknotes," said Victoria Cleland, the Bank's chief cashier. A panel of wildlife experts drew up a shortlist of 18 mammals, birds, amphibians insects and fish which were put forward to public nominations. Respondents were invited to select up to six. More than 2.5 million votes were cast by 478,531 people, ranging from wildlife enthusiasts to primary school classes. The buff-tailed bumblebee (Bombus terrestris) was a clear winner, receiving 360,399 votes, nearly 90,000 more than the barn owl (Tyto alba). The European hedgehog (Erinaceus europaeus) was most popular in the mammals category. The red fox, in the mammals category, and the common kingfisher, among the birds, received more nominations than the Atlantic puffin. The puffin (Fratercula arctica) was still selected because it was the most popular marine animal. The Bank said its inclusion added variety to the series, made the denominations easier to distinguish, and gave an opportunity to celebrate the British coastline. The puffin and bees also feature on coins, as part of the Royal Mint's redesigned 20p and £1 coins respectively.

Hedgehog among four animals chosen to feature on new banknotes
Europe
BBC Business

'Stop throwing shade' - the woman trying to stop firms leaving the UK

The UK needs to do more back its own companies at a time when a growing number are choosing to list their shares in the US rather than at home, the boss of the London Stock Exchange (LSE) has told the BBC. Dame Julia Hoggett said the government needed to make it "more attractive" to invest in the UK stock market, otherwise big firms would continue to look overseas for their next stage of growth. Over the last few years, scores of big firms have left the London market, are considering a move or have been bought by private foreign investors. The fear is this weakens the UK economy by reducing tax revenues and depressing business valuations. "If we want Britain to back Britain, which is what I hear the chancellor and the prime minister saying, then let's make sure that we're creating structural incentives to do so," Dame Julia told the BBC's Big Boss podcast. The LSE's main market is made up of around 930 companies with a total market value of about £4.9 trillion. But in the last few years, many firms have delisted or moved away from the LSE, including takeaway chain Just Eat, which joined the Amsterdam stock exchange, travel giant Tui which opted for Frankfurt, and Paddy Power-owner Flutter which now trades in New York. Meanwhile, the number of companies newly listing their shares in London has dwindled. Last year, there were 23 initial public offerings (IPOs) on the London market, with £2.1bn raised. In the US, which has much larger capital markets, there were 354 with $44bn (£33bn) raised. It has coincided in a big rise of UK investment money flowing into US stocks in search of better returns. "We talk as a nation about wanting growth in every postcode, but at the moment, a lot of us are funding growth in every zip code," Dame Julia said. There was "no shortage of great companies and no shortage of capital", she added.

'Stop throwing shade' - the woman trying to stop firms leaving the UK
North America
Yahoo Finance

Is a stock market correction coming? Most Americans think so

Three in four Americans believe recent stock gains are “unsustainable” and think the market may be headed for a correction, according to a new survey. The S&P 500 is up about 13% on the year and trading near its record high. Stocks are surging on enthusiasm over the promise of AI, and on the strength of corporate sales and earnings. But there is persistent talk of an AI bubble: an irrational runup in the prices of tech stocks fueled by unrealistic expectations for artificial intelligence. Stock traders worry, too, about soaring oil and gas prices in the lengthening Iran war. Those fears pushed two major stock indexes into correction territory in March, when both the Dow Jones and the Nasdaq dropped 10% below recent highs. Stocks are historically overpriced. A common yardstick, the cyclically adjusted price-to-earnings (CAPE) ratio, stands at 41.07 for the S&P 500. The last time – indeed, the only time – the CAPE ratio ranged that high was at the peak of the dot-com bubble, in 1999-2000. The CAPE ratio also spiked in 1929, just before the Great Depression. All of those factors, along with rising bond yields and borrowing costs, could explain why many Americans think the stock market might be due for a correction. The new survey, published Sept. 22 by Allianz Life, found that 74% of Americans believe “recent market highs are unsustainable” and a correction may be looming. “That’s a big number,” said Kelly LaVigne, vice president of consumer insights at Allianz Life. “We never get a response where 74% of the people say the same thing.” Nearly two-thirds of survey respondents said they are “waiting to make financial decisions because economic conditions are too unpredictable.” Only 27% said they are “comfortable with current market conditions and ready to invest now.” Whether the current stock market run is sustainable is a matter for debate, investment experts said. The potential for a market correction is not.

Is a stock market correction coming? Most Americans think so
North America
Yahoo Finance

Why Pay to Own U.S. Stocks? This Zero-Fee ETF Is Beating the S&P 500

ETF fees have been racing toward zero for years, but one fund has already crossed the finish line and is somehow still pulling ahead of the competition. This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. ETF fees have spent decades moving in one direction: down. Vanguard helped establish low-cost indexing as a mainstream investment strategy, while competitors such as State Street Investment Management, BlackRock and others have responded with increasingly inexpensive index funds of their own. For plain-vanilla U.S. equity exposure, paying even 0.10% annually can now look expensive. Still, there are still some hidden gems buried among the thousands of ETFs trading in the U.S., and one of the more unusual examples comes from BNY Investments. The BNY Mellon US Large Cap Core Equity ETF (BKLC) takes fee compression about as far as it can go, with a 0.00% expense ratio. Zero fees wouldn’t mean much if the underlying investment were inferior. But since BKLC launched in 2020, it has actually produced a slightly higher annualized total return than the Vanguard S&P 500 ETF (VOO). The difference is small, but when both ETFs are essentially competing to provide cheap large-cap U.S. equity exposure, small differences are the entire game. BKLC tracks the Solactive GBS United States 500 Index TR, which is designed to represent the large-cap segment of the U.S. equity market. That makes its portfolio look very familiar to anyone who has owned an S&P 500 ETF. You’re getting roughly 500 of America’s largest publicly traded companies, weighted primarily by market capitalization. The biggest technology companies consequently occupy the largest positions, followed by hundreds of progressively smaller constituents. The important distinction is the benchmark. S&P Dow Jones Indices owns and licenses the S&P 500. Funds tracking it generally pay licensing costs for the privilege of attaching one of the world’s best-known index brands to their products. BKLC instead uses an index provided by Solactive, allowing BNY to offer very similar large-cap U.S. market exposure without paying for the S&P 500 name. BNY has taken the savings one step further by waiving BKLC’s management fee entirely. The ETF currently has a 0.00% expense ratio. Securities lending can also generate revenue within an index portfolio. An ETF can temporarily lend stocks to qualified borrowers in exchange for collateral and lending fees. That revenue can help offset some of the unavoidable operating and trading costs associated with running a fund. BKLC therefore demonstrates an interesting lesson about index investing. You don’t necessarily need the S&P 500 brand to obtain S&P 500-like exposure. An ultra-low-cost benchmark, efficient portfolio management and securities-lending revenue can provide a similar result without charging shareholders an explicit annual management fee. The obvious comparison is VOO, which tracks the actual S&P 500 and is already extremely inexpensive, charging an expense ratio of just 0.03%. That’s only $3 annually for every $10,000 invested. BKLC charges nothing. Three basis points shouldn’t determine your entire investment strategy, and differences in benchmark methodology and portfolio performance can easily overwhelm a fee gap that small. But the results since BKLC’s inception have favored the zero-fee ETF. According to Testfol.io, from April 9, 2020 through Sept. 22, 2026, BKLC generated a 19.10% annualized total return versus 18.88% for VOO, assuming distributions were reinvested and before accounting for individual taxes. A hypothetical $10,000 investment produced the following results: I wouldn’t attribute all of that outperformance to BKLC’s zero expense ratio. VOO’s 0.03% fee is too small to explain the entire 0.22-percentage-point annualized performance difference. The two funds track different indexes, so differences in constituent selection, weighting, rebalancing, trading and other implementation details can also affect returns. Nor would I assume BKLC will continue beating VOO. Six and a half years is a useful live track record, but the two portfolios are similar enough that relatively small methodological differences can cause either ETF to lead over different periods. What BKLC has demonstrated is that investors don’t necessarily need to pay even three basis points for diversified large-cap U.S. equity exposure. Since its 2020 launch, the zero-fee structure hasn’t come at the expense of performance. So far, investors have actually received slightly more of it.

Why Pay to Own U.S. Stocks? This Zero-Fee ETF Is Beating the S&P 500