Key Takeaways
- Iberdrola (IBE.MC) reported Q3 net income of EU1.74 billion, significantly exceeding analyst estimates, and boosted its adjusted net outlook to double-digit growth for the full year.
- Anglo American (AAL) faces potential challenges as a partner, Teck Resources (TECK), lowered its 2026 copper output forecast by up to 35%, contributing to expectations of a global refined copper deficit of 150,000 metric tons in 2026.
- Japan and the United States formalized comprehensive strategic agreements, including a Memorandum of Understanding (MOU) on shipbuilding cooperation aimed at countering China's market dominance, and a $550 billion Japanese investment pledge in critical U.S. industries like AI infrastructure, energy, and critical minerals.
- Novartis (NVS) anticipates the full financial impact of Entresto generics to materialize in the fourth quarter, signaling potential revenue pressures.
- U.S. President Donald Trump directed the Pentagon to ensure troops receive full deployment pay despite a government shutdown, a move critics deem potentially illegal and a precedent-setting shift of congressional power.
Iberdrola's Strong Q3 Performance and Ambitious Investment Plans
Spanish utility giant Iberdrola (IBE.MC) announced robust financial results for the third quarter of 2025, with net income reaching EU1.74 billion, comfortably surpassing the estimated EU1.37 billion. While revenue for the quarter stood at EU11.12 billion, slightly below estimates, the company's nine-month revenue grew by 2.3% year-over-year to EU33.86 billion.
Buoyed by this performance, Iberdrola has upgraded its adjusted net outlook for the full year to double-digit growth, supported by the addition of 1,400 MW in new renewables capacity and expansion in regulated networks. The company is embarking on an aggressive investment strategy, planning to deploy €50 billion over the 2025-2028 period, with approximately two-thirds allocated to network development. Over the past 12 months, total investments hit €17.3 billion, with over 60% directed towards the U.S. and U.K. markets.
Anglo American's Copper Outlook Dims Amidst Market Tightness
Mining major Anglo American (AAL) is facing headwinds in its copper production forecasts. Although the specific headline refers to Anglo's own warning, related reports indicate that Teck Resources (TECK), with whom Anglo American recently agreed a merger, has significantly lowered its 2026 copper output guidance. Teck's forecast for 2026 copper production has been reduced to 200,000–235,000 tonnes, down from an earlier range of 280,000–310,000 tonnes, primarily due to persistent setbacks at its Quebrada Blanca (QB) mine in Chile and the Highland Valley Copper (HVC) operation in Canada.
This reduction comes at a critical time for the global copper market. The International Copper Study Group (ICSG) now predicts that the global refined copper market will shift to a deficit of 150,000 metric tons in 2026, a stark reversal from a previously expected surplus. This anticipated deficit, driven by slower production growth and recent mine disruptions, has already pushed copper prices to a 16-month peak. Industry experts, like Robert Friedland, warn of a looming "copper crisis" as accelerating demand threatens to outstrip supply within two decades.
Japan and U.S. Forge Deeper Strategic and Economic Alliances
In a series of significant diplomatic and economic moves, Japan and the United States have signed multiple strategic agreements during U.S. President Donald Trump's visit to Tokyo. A key development is the signing of a Memorandum of Understanding (MOU) on shipbuilding cooperation, aimed at strengthening the shipbuilding capabilities of both nations and directly addressing China's dominant position in the global shipbuilding market. China currently accounts for over 70% of global shipbuilding orders, while Japan's share has fallen to 8%. The agreement includes plans for a "Japan-U.S. shipbuilding working group" to foster investment and efficiency.
These agreements are part of a broader $550 billion investment pledge by Japan into key U.S. industries. A joint fact sheet highlights significant Japanese investment in AI infrastructure projects, with companies like Mitsubishi Electric (6503.T), Fujikura (5803.T), TDK (6762.T), Murata (6981.T), and Panasonic (6752.T) participating. The Japanese Ministry of Finance (MOF) has welcomed this interest, particularly in areas like energy, AI infrastructure, and critical minerals, recognizing Japan's increasing power demands from its expanding AI sector. GE Vernova (GEV) is also noted for its involvement in these energy projects.
President Trump also met with Japan's new Prime Minister, Sanae Takaichi, praising their strong relationship and confirming that missile deliveries for Japan's defense program are ahead of schedule. Takaichi has committed to increasing Japan's defense expenditure to 2% of GDP by next spring, two years earlier than initially planned.
Novartis Prepares for Generic Entresto Impact
Pharmaceutical giant Novartis (NVS) is bracing for the full financial impact of generic competition for its heart failure drug Entresto to hit in the fourth quarter of the year. This anticipated event signals a period of expected revenue adjustment for the company as market exclusivity for the blockbuster drug diminishes.
Trump's Directive on Troop Pay Raises Constitutional Concerns
Amidst a government shutdown, U.S. President Donald Trump issued a directive to the Defense Department, instructing it to use "all available funds" to ensure military personnel receive their full deployment pay by October 15th. While intended to support troops, this unilateral action has drawn criticism from experts who argue it is "almost certainly illegal" and represents a concerning shift of the "power of the purse" away from Congress. Historically, during government shutdowns, Congress has passed specific legislation to guarantee troop salaries, a step not taken in this instance. This move comes as President Trump has also signaled his openness to invoking the Insurrection Act for domestic military deployments, though he recently reversed plans to send troops to San Francisco following local lobbying efforts.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.