This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- Richemont (CFR) posted a 33% surge in H1 operating profit to €3.13 billion, beating estimates as jewellery sales grew 19% at constant exchange rates.
- SoftBank (SFTBY) booked a massive $3.7 billion charge after cancelling orders for gas turbines intended for AI data centers, leading to its first net loss in nearly two years.
- Microsoft (MSFT) is scrambling to restore services after a widespread global outage disrupted Outlook, Teams, and Copilot for thousands of users.
- Goldman Sachs raised its STOXX 600 target to 700 but turned bearish on European energy and insurance stocks, downgrading both sectors to Underweight.
- Bitcoin (BTC) fell to a three-month low near $68,847 as hotter-than-expected U.S. inflation data fueled concerns of more aggressive Federal Reserve interest rate hikes.
Luxury Sector Outperforms Amid Regional Strength
Compagnie Financière Richemont (CFR) reported robust first-half results for the period ended September 30, 2026, driven by sustained double-digit sales growth. Total sales reached €12.28 billion, a 17% increase at constant exchange rates, slightly ahead of analyst expectations. The growth was spearheaded by the Jewellery Maisons, which saw sales climb 19%, while the Specialist Watchmakers division grew by 10%.
The luxury group's operating profit jumped 33% to €3.13 billion, resulting in an operating margin of 25.5%. Richemont noted that while raw material costs remain elevated, strong sales leverage and a €229 million one-time tariff-related benefit bolstered the bottom line. Growth was broad-based across most regions, with particularly strong performances in Japan, the Americas, and Asia Pacific.
SoftBank and Microsoft Face Infrastructure Hurdles
SoftBank Group (SFTBY) disclosed a ¥597.2 billion ($3.7 billion) writedown related to the cancellation of gas turbine orders. The company had originally reserved over 13 gigawatts of power-generating capacity to secure infrastructure for its AI data center rollout. However, a shift in industry preference toward larger, more efficient equipment rendered the original orders obsolete, contributing to a quarterly net loss of ¥1.12 trillion ($7 billion).
Simultaneously, Microsoft (MSFT) is battling a global service disruption that has knocked out critical workplace tools. The outage, which Microsoft attributed to "elevated load" on its infrastructure, has primarily impacted Outlook, Teams, and the Copilot AI assistant. While the company has begun returning some servers to service, it warned that restoration efforts were not progressing as quickly as expected, affecting users in over 74 countries.
Goldman Sachs Reshuffles European Outlook
Goldman Sachs has updated its 12-month outlook for the STOXX Europe 600, raising the target to 700 points from 695. The bank cited resilient corporate earnings and a positive profit trajectory despite geopolitical volatility. However, strategists have become notably more selective, downgrading European Energy and Insurance sectors to Underweight.
The bank also lowered its recommendation for European Banks to Neutral, signaling a more cautious stance on the financial sector as interest rate paths remain uncertain. Analysts suggest that while the broader index remains attractive due to lower valuations compared to U.S. equities, structural headwinds in energy supply and shifting regulatory environments warrant a defensive rotation.
Currency and Crypto Volatility Intensifies
The USD/JPY pair hit 160.08, marking its strongest level since early September and sparking fresh concerns regarding potential intervention by Japanese authorities. The yen's weakness follows hotter-than-expected U.S. inflation data, which has pushed Treasury yields higher and strengthened the greenback. Technical indicators suggest that if the 160 level holds, the pair could test summer highs near 164.
In the digital asset space, Bitcoin (BTC) extended its recent slide, falling to a three-month low of $68,847. The selloff was triggered by October's Consumer Price Index (CPI) report, which showed core inflation rising 0.3% month-on-month. The data has led markets to price in a higher probability of a 50-basis-point rate hike by the Federal Reserve in December, dampening investor appetite for risk-on assets.
Trade and Investment Shifts in Emerging Markets
China's expansion of zero-tariff treatment to 53 African nations is expected to catalyze a new wave of investment in the continent's processing industries. By removing duties on 100% of tariff lines, Beijing aims to encourage African producers to export higher-value processed goods rather than just raw materials. Researchers at the Chinese Academy of International Trade and Economic Cooperation suggest this policy will shift Chinese investment from serving local African demand to creating export-oriented manufacturing hubs targeting the Chinese consumer market.
Automated market updates written with AI from market data and news wire reports, published without human review.