{"id":74179,"date":"2026-11-05T01:08:15","date_gmt":"2026-11-05T05:08:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-microsoft-exits-uk-ai-deal-toyota-beats-earnings-estimates\/74179\/"},"modified":"2026-11-05T01:08:15","modified_gmt":"2026-11-05T05:08:15","slug":"global-markets-update-microsoft-exits-uk-ai-deal-toyota-beats-earnings-estimates","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-microsoft-exits-uk-ai-deal-toyota-beats-earnings-estimates\/74179\/","title":{"rendered":"Global Markets Update: Microsoft Exits UK AI Deal; Toyota Beats Earnings Estimates"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-microsoft-exits-uk-ai-deal-toyota-beats-earnings-estimates\/74179\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-microsoft-exits-uk-ai-deal-toyota-beats-earnings-estimates\/74179\/#Microsoft_Pulls_Out_of_UK_AI_Data_Center_Project\" >Microsoft Pulls Out of UK AI Data Center Project<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-microsoft-exits-uk-ai-deal-toyota-beats-earnings-estimates\/74179\/#Toyota_Surprises_with_Strong_Q2_Earnings_and_Buyback_Expansion\" >Toyota Surprises with Strong Q2 Earnings and Buyback Expansion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-microsoft-exits-uk-ai-deal-toyota-beats-earnings-estimates\/74179\/#Asian_Tech_Stocks_Slump_on_Post-Midterm_AI_Concerns\" >Asian Tech Stocks Slump on Post-Midterm AI Concerns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-microsoft-exits-uk-ai-deal-toyota-beats-earnings-estimates\/74179\/#Energy_Infrastructure_Targeted_in_Russia-Ukraine_Conflict\" >Energy Infrastructure Targeted in Russia-Ukraine Conflict<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-microsoft-exits-uk-ai-deal-toyota-beats-earnings-estimates\/74179\/#Forex_Markets_Euro_Faces_Pressure_Against_Yen_and_Dollar\" >Forex Markets: Euro Faces Pressure Against Yen and Dollar<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> has withdrawn from a major data center partnership with UK-based <strong>Nscale<\/strong>, citing grid connection delays that could stretch into the <strong>2030s<\/strong>.<\/li>\n<li><strong>Toyota Motor (<a href=\"\/stock\/TM\">TM<\/a>)<\/strong> reported <strong>Q2 2027<\/strong> operating income of <strong>\u00a51.13 trillion<\/strong>, significantly exceeding analyst estimates of <strong>\u00a5964.86 billion<\/strong>, and raised its full-year guidance.<\/li>\n<li>Asian semiconductor stocks, including <strong>Samsung Electronics (<a href=\"\/stock\/SSNLF\">SSNLF<\/a>)<\/strong> and <strong>SK Hynix<\/strong>, faced a sharp sell-off as investors reacted to potential regulatory shifts following <strong>U.S. midterm elections<\/strong>.<\/li>\n<li>Geopolitical tensions escalated as <strong>Russia<\/strong> reported strikes on <strong>Ukrainian<\/strong> logistics hubs, while <strong>Ukraine<\/strong> allegedly targeted the <strong>Ryazan<\/strong> oil refinery with drone strikes.<\/li>\n<li>The <strong>EUR\/JPY<\/strong> pair slipped below the <strong>178.00<\/strong> level, maintaining a bearish outlook as the <strong>Bank of Japan<\/strong> signaled potential for further interest rate hikes.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Microsoft_Pulls_Out_of_UK_AI_Data_Center_Project\"><\/span>Microsoft Pulls Out of UK AI Data Center Project<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>) has officially exited a deal to anchor a flagship AI data center in <strong>Loughton, Essex<\/strong>, managed by the <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong>-backed startup <strong>Nscale<\/strong>. The decision comes after reports that the site would not receive a sufficient power supply from the national grid until the <strong>2030s<\/strong>, highlighting critical infrastructure bottlenecks in the UK&#39;s &quot;AI superpower&quot; ambitions.<\/p>\n<p>Despite the withdrawal from the Essex site, <a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>) spokespeople emphasized that the company remains committed to its broader partnership with <strong>Nscale<\/strong>. The startup, which is currently preparing for a <strong>$35 billion IPO<\/strong> in New York, stated that the loss of this &quot;minor contract&quot; does not impact its total <strong>$103 billion<\/strong> backlog or its ongoing projects with <strong>Anthropic<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Toyota_Surprises_with_Strong_Q2_Earnings_and_Buyback_Expansion\"><\/span>Toyota Surprises with Strong Q2 Earnings and Buyback Expansion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Toyota Motor (<a href=\"\/stock\/TM\">TM<\/a>) delivered a robust second-quarter performance, posting a net income of <strong>\u00a5759.4 billion<\/strong>. While slightly below the estimated <strong>\u00a5769.79 billion<\/strong>, the company&#39;s operating income of <strong>\u00a51.13 trillion<\/strong> crushed market expectations, driven by strong demand for high-margin <strong>hybrid vehicles<\/strong> and a favorable <strong>yen<\/strong> exchange rate.<\/p>\n<p>The automaker raised its full-year operating income forecast to <strong>\u00a53.90 trillion<\/strong>, up from a previous estimate of <strong>\u00a53.40 trillion<\/strong>. To further reward shareholders, Toyota (<a href=\"\/stock\/TM\">TM<\/a>) announced an expansion of its share buyback program to <strong>\u00a51.3 trillion<\/strong>, signaling confidence in its cash flow despite cooling sales in the <strong>Chinese market<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Asian_Tech_Stocks_Slump_on_Post-Midterm_AI_Concerns\"><\/span>Asian Tech Stocks Slump on Post-Midterm AI Concerns<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Asian equity markets saw a &quot;sweeping correction&quot; on Thursday, particularly among semiconductor and data center providers. The <strong>Nikkei 225<\/strong> fell <strong>0.5%<\/strong>, while South Korea&#39;s <strong>Kospi<\/strong> tumbled <strong>3.8%<\/strong>, led by heavyweights <strong>Samsung Electronics (<a href=\"\/stock\/SSNLF\">SSNLF<\/a>)<\/strong> and <strong>SK Hynix<\/strong>.<\/p>\n<p>The sell-off was triggered by fears that <strong>Democratic<\/strong> control of the <strong>U.S. Congress<\/strong> following the midterm elections could lead to tighter regulations on data center construction and AI spending. Analysts noted that <strong>Taiwanese<\/strong> and <strong>Korean<\/strong> chipmakers are particularly vulnerable to shifts in <strong>U.S. capital expenditure<\/strong> trends, which have been the primary engine for the recent AI trade.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Energy_Infrastructure_Targeted_in_Russia-Ukraine_Conflict\"><\/span>Energy Infrastructure Targeted in Russia-Ukraine Conflict<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The conflict between <strong>Russia<\/strong> and <strong>Ukraine<\/strong> intensified with both sides targeting critical energy and logistics infrastructure. <strong>Russia<\/strong> reported successful strikes on a <strong>Ukrainian<\/strong> power station and logistics hub, causing emergency power outages in several regions including <strong>Kyiv<\/strong> and <strong>Kharkiv<\/strong>.<\/p>\n<p>Simultaneously, reports emerged of a large-scale drone attack on the <strong>Ryazan<\/strong> oil refinery in Russia, one of the country&#39;s largest processing facilities owned by <strong>Rosneft<\/strong>. Local authorities reported fires at industrial sites following the explosions, which <em>Kyiv Independent<\/em> suggests is part of a continued effort to disrupt Moscow&#39;s fuel supplies and war financing.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Forex_Markets_Euro_Faces_Pressure_Against_Yen_and_Dollar\"><\/span>Forex Markets: Euro Faces Pressure Against Yen and Dollar<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the currency markets, <strong>EUR\/JPY<\/strong> slipped under the <strong>178.00<\/strong> mark, trading near <strong>177.90<\/strong> during the early European session. The pair remains under technical pressure below its <strong>100-day Moving Average<\/strong>, as hawkish minutes from the <strong>Bank of Japan<\/strong> reinforced expectations for gradual rate hikes to combat inflation.<\/p>\n<p>Meanwhile, <strong>EUR\/USD<\/strong> traders are closely monitoring the <strong>1.1270<\/strong> resistance level. While the <strong>Euro<\/strong> has gathered some strength following the U.S. election results and hot <strong>Eurozone inflation<\/strong> data, a clean breakout above this range is required to confirm a new bullish trend.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Microsoft (MSFT) has withdrawn from a major data center partnership with UK-based Nscale, citing grid connection delays that 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