Business
Stocks end down as Fed policy meeting begins
Stock prices in London closed mostly lower on Tuesday as expectations of a rate cut from the US Federal Reserve continue to dominate.
It follows the release of industrial and retail data in the US.
The Fed started its two-day key policy meeting on Tuesday, AFP reported, hours after Stephen Miran narrowly won confirmation to join the central bank.
Stephen Miran, who has been a key advisor to US President Donald Trump, took the oath of office as a Fed governor on Tuesday after narrowly winning a senate vote on Monday night to become one of the FOMC’s 12 voting members.
It remains to be seen if he will push for larger rate cuts as the US president has repeatedly demanded, with markets widely expecting a 25 basis points cut at the end of discussions on Wednesday.
The FTSE 100 index closed down 81.37 points, 0.9%, at 9,195.66.
The FTSE 250 ended down 154.72 points, 0.7%, at 21,491.87, and the AIM All-Share closed up 0.48 points, 0.1%, at 767.87.
“A barrage of US companies are expected to announce big investments in the UK to coincide with Donald Trump’s state visit,” said AJ Bell’s Russ Mould.
“Google-owner Alphabet is the latest name in the frame, with news it will spend £5 billion in the UK on AI-related infrastructure investments and scientific research… (but) the expected wave of US investment wasn’t enough to lift the UK stock market.
“The FTSE 100 gets more than two-thirds of its earnings from overseas, so even policies that can potentially boost growth domestically may not have the impact on the constituents of the UK’s leading stock market index that some might expect.”
Anglo American, on the FTSE 100, gained 0.6%.
The miner has formally completed its copper tie-up with the Chilean state-owned mining company Codelco.
It comes after the two companies back in February this year signed a memorandum of understanding for a framework to implement a joint mine plan for their adjacent copper mines of Los Bronces and Andina in Chile.
Student accommodation provider Unite Group lost 1.7%.
The UK Competition & Markets Authority has invited comments on Unite’s proposed acquisition of Empiric Student Property, in the first step ahead of a potential formal investigation into the deal.
Empiric, whose shareholders are set to own 10% of the combined firm if the deal goes ahead, was down 1.1% on the FTSE 250.
Also on the FTSE 250, Pollen Street Group closed 3.0% higher.
The London-based asset manager said it was encouraged by growing demand for mid-market alternatives and asset-based lending, as it announced first-half pre-tax profit growing 28% annually to £29.6 million while total income climbed 17% to £63.8 million.
Pollen Street also declared an interim dividend of 27.0 pence, up 1.9%.
Chief financial officer Crispin Goldsmith said the firm “is trading in line with expectations”, adding: “The group remains in a strong position and is strategically well placed and well resourced for further growth through H2 2025 and beyond.”
On AIM, Focusrite closed 15% higher.
The music and audio products hailed a “resilient performance” in the face of tough market conditions, with revenue rising to £87 million for the six months to August 31 and to £168 million for the 12 months.
Focusrite has changed its year-end to February 28 from the end of August.
It expects adjusted Ebitda for the 12 months to August to be within the market forecast range, which it puts at £24.5 million to £26.0 million.
Stocks in New York were lower.
The Dow Jones Industrial Average was down 0.4%, the S&P 500 index down 0.2%, and the Nasdaq Composite down 0.1%.
The yield on the US 10-year Treasury was quoted at 4.05%, widening from 4.04%.
The yield on the US 30-year Treasury was quoted at 4.66%, widening from 4.65%.
US industrial production rose 0.1% on-month in August after a downwardly revised fall of 0.4% in July, the Fed reported.
It outperformed the FXStreet-cited consensus of a 0.1% decline in August.
Also, according to the Census Bureau, US retail sales rose 0.6% in August from July, unchanged on-month but beating the FXStreet cited consensus of a 0.2% rise.
Separate data showed that the export price index rose 0.3% in August from July, though it had been expected to be flat.
The import price index advanced 0.3%, beating consensus of a 0.1% fall.
In other US news, Mr Trump said that the US and China had reached an agreement over TikTok, which Washington says must pass to US-controlled ownership.
“We have a deal on TikTok, I’ve reached a deal with China, I’m going to speak to President Xi on Friday to confirm everything up,” Mr Trump told reporters as he left the White House for a state visit to the UK.
“Neither side wants to be seen as weak, but there is also a desire to keep trade flowing between the two sides,” Mr Mould said.
“Progress on TikTok’s future in the US and US-China trade agreements more broadly have been slow, and they look set to drag on.
“Finding a middle ground that satisfies both the authorities in the US and China has proved to be difficult to achieve, which makes the prospect of a framework deal on TikTok’s US somewhat curious.
“More information is expected on Friday, and the structure of any potential agreement could provide hints to how future deals are struck more broadly between the US and China.”
In European equities on Tuesday, the CAC 40 in Paris closed down 1.0%, while the DAX 40 in Frankfurt ended down 1.8%.
German industrial major thyssenkrupp was up 4.9% in Frankfurt, after announcing that India’s Jindal Steel International has made a “non-binding, indicative offer” for its steel business Thyssenkrupp Steel Europe.
Thyssenkrupp, which has been looking to split itself into standalone businesses to boost profitability, would “carefully review” the offer and pay “particular attention” to what it would mean for employment at its sites, it added.
The pound was quoted higher at 1.3642 dollars at the time of the London equities close on Tuesday, compared to 1.3597 dollars on Monday.
The euro stood higher at 1.1837 dollars, against 1.1765 dollars.
Against the yen, the dollar was trading lower at 146.65 yen compared to 147.34 yen.
Brent oil was quoted higher at 68.32 dollars a barrel at the time of the London equities close on Tuesday, from 67.37 dollars late on Monday.
Gold was quoted higher at 3,680.32 dollars an ounce against 3,668.27 dollars.
The biggest risers on the FTSE 100 were Fresnillo, up 92.6p at 2,288.6p, J Sainsbury, up 5.0p at 322.8p, Croda International, up 39.0p at 2,556.0p, Glencore, up 3.7p at 310.55p, and Mondi, up 11.1p at 1,007.5p.
The biggest fallers on the FTSE 100 were Haleon, down 17.0p at 339.7p, easyJet, down 15.8p at 457.2p, Barclays, down 9.8p at 374.85p, Coca-Cola HBC, down 92.0p at 3,598.0p, and NatWest, down 13.4p at 524.4p.
On Tuesday’s economic calendar, as well as the Fed rate decision and press conference, look out for UK and eurozone consumer inflation.
On Tuesday’s UK corporate calendar, Barratt Developments releases full-year results; IP Group has half-year results; and Games Workshop holds its annual general meeting.
– Contributed by Alliance News
Business
Gold price prediction today: Where is gold rate headed this week as US Fed meeting in focus? Here’s the outlook – The Times of India
Gold price prediction today: Gold prices are expected to react to the US Federal Reserve policy this week. Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers shares his views and recommendations for gold investors:Last week saw a blend of inflation trends & political interference which involved Fed independence risk created a wave of uncertainty, boosting safe haven appeal for gold as it continued to hit record highs.In the US, mixed inflation data, cooling labour markets, and weakening consumer sentiment kept expectations of a Fed rate cut in place. In Europe, political instability in France added to economic pressure, while the ECB held rates steady. China grappled with deflationary pressures & Japan prepared for snap elections. Other asset classes included, global equity markets ending the week higher, while US Treasury yields, & the US dollar weakened, while oil prices edged up. Gold recorded repeated all-time highs edging near to $ 3,700 per oz in the current week. Gold ETF investors continued to be heavy buyers continuing their purchase for third consecutive months with net holdings rising steadily. led by Western funds. (YTD Inflows: 472.7 tonnes inflows. Vs 6.8 tonnes outflows in 2024).In India, Gold ETFs recorded inflows of Rs 2,190 crore in August, the largest since January’s Rs. 3,751 crores. Global central banks now own more gold than US Treasuries for the first time since 1996, indicating a substantial shift in their foreign exchange holdings. Gold has already surpassed the euro as the second most important reserve asset after the US dollar. Adjusting for over four decades of inflation the spot price of gold, also surpassed its inflation adjusted peak of $ 850 set on January 21, 1980 which comes to around $3590 per oz.
Gold Price Outlook
The current week remains most crucial for gold as the US Fed may announce its monetary policy on September 17, midnight. It is widely expected that the central bank may go ahead to slash its interest rates by 25 bps, as a slight possibility of a 50 bp cut also exists. Overall possibility of 3 rate cuts persists by the end of the year. Having said that, a summary of economic projections which includes projections on interest rate cuts to be released by the US Fed during the meeting remains crucial to be assessed for further direction in precious metal prices. Overall, a likely hawkish cut could bring in profit booking moves in prices. However, chances of any major correction lower remains’ limited, as the US labour market shows signs of weakening, where major supports lie at around $ 3620 – 3570 zone (CMP $ 3685). On the higher side, prices could turn volatile in the coming session post release of Fed statement as strong upside barriers could persist at around $ 3,720 – 3,750 per oz in spot. This could translate to a level of Rs. 1,12,000 – 1,12,500 // 10 gm on MCX futures contract on a higher side on a weekly basis.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
Zoe KleinmanTechnology editor
Getty ImagesMicrosoft says its new $30bn (£22bn) investment in the UK’s AI sector – its largest outside of the US – should significantly boost Britain’s economy in the next few years.
The package forms a major part of a £31bn agreement made between the UK government and various other US tech giants, including Nvidia and Google, to invest in British-based infrastructure to support AI technology, largely in the form of data centres.
Microsoft will also now be involved in the creation of a powerful new supercomputer in Loughton, Essex.
Speaking exclusively to the BBC Microsoft CEO Satya Nadella told the BBC of the tech’s potential impact on economic growth.”
“It may happen faster, so our hope is not ten years but maybe five”.
“Whenever anyone gets excited about AI, I want to see it ultimately in the economic growth and the GDP growth.”
Prime Minister Sir Keir Starmer said the US-UK deal marked “a generational step change in our relationship with the US”.
He added that the agreement was “creating highly skilled jobs, putting more money in people’s pockets and ensuring this partnership benefits every corner of the United Kingdom.”
The UK economy has remained stubbornly sluggish in recent months.
Nadella compared the economic benefits of the meteoric rise of AI with the impact of the personal computer when it became common in the workplace, about ten years after it first started scaling in the 1990s.
But there are also growing mutterings that AI is a very lucrative bubble that is about to burst. Nadella conceded that “all tech things are about booms and busts and bubbles” and warned that AI should not be over-hyped or under-hyped but also said the newborn tech would still bring about new products, new systems and new infrastructure.
He acknowledged that its energy consumption remains “very high” but argued that its potential benefits, especially in the fields of healthcare, public services, and business productivity, were worthwhile. He added that investing in data centres was “effectively” also investing in modernising the power grid but did not say that money would be shared directly with the UK’s power supplier, the National Grid.
The campaign group Foxglove has warned that the UK could end up “footing the bill for the colossal amounts of power the giants need”.
The supercomputer, to be built in Loughton, Essex, was already announced by the government in January, but Microsoft has now come on board to the project.
Big tech comes to town
Mr Nadella, revealed the investment as Donald Trump has arrived in the UK on a three-day state visit.
The UK and US have signed a “Tech Prosperity Deal” as part of the visit, with an aim of strengthening ties on AI, quantum computing and nuclear power.
Google has promised £5bn for AI research and infrastructure over the next two years.
Nvidia also pledged to develop AI in the UK, which will help fuel innovation, economic growth and jobs, a spokesperson for the chip giant told the BBC.
The company said that along with its partners it will invest up to £11bn in the UK, in what it called the largest AI infrastructure rollout in the country’s history.
UK Chancellor Rachel Reeves also opened a £735m data centre as part of the investment on Tuesday in Hertfordshire.
There are some concerns that accepting so much money from US investors will mean the UK relies too much on foreign technology.
In July, Trump made clear his intentions were for the US to win global the AI race.
One of the ways it stated it would do this was to “export American AI to allies and partners.”
The UK government has signed number of deals with US technology companies, including an agreement to use OpenAI services in the public sector and a £400m contract to use Google Cloud services in the Ministry of Defence.
Satya Nadella said he thought the agreement defined “the next phase of globalisation” and argued that having access to foreign tech services leveraged digital sovereignty rather than threatened it.
On the growing issue of AI taking over jobs, Nadella said Microsoft also had to “change with the changes in technology”, having laid off thousands of staff this year despite record sales and profits. He described it as “the hard process of renewal”.
AI growth zone in north-east England
The government also said there was “potential for more than 5,000 jobs and billions in private investment” in north-east England, which has been designated as a new “AI growth zone“.
Last year, the government announced a £10bn investment into a data centre to be built near Blyth, Northumberland.
It has now announced another data centre project dubbed Stargate UK from OpenAI, chipmaker Nvidia, semiconductor company Arm and Nscale.
That will be based at Cobalt Park in Northumberland.
OpenAI boss Sam Altman said Stargate UK would “help accelerate scientific breakthroughs, improve productivity, and drive economic growth.”
However the UK version is a fraction of the firm’s US-based Stargate project, which OpenAI launched in January with a commitment to invest $500 billion over the next four years building new AI infrastructure for itself.
So far, reaction to the agreement has been broadly positive, but it is clear that there are many challenges ahead for the UK if it is to fulfil its intended potential.
The Tony Blair Institute described the news as a “breakthrough moment” but added that Britain had some work to do: “reforming planning rules, accelerating the delivery of clean energy projects, and building the necessary digital infrastructure for powering the country’s tech-enabled growth agenda,” said Dr Keegan McBride, the Tony Blair Institute for Global Change’s emerging tech and geopolitics expert.
Matthew Sinclair, UK director of the Computer & Communications Industry Association, hailed the agreement as “a powerful demonstration of the scale of the AI opportunity for the UK economy.”
But the Conservative Party highlighted that other big international companies such as the pharmaceutical giant Merck have recently cancelled or delayed their UK expansion plans.
Satya Nadella spoke to the BBC News in between board meetings, shortly before jumping on a flight to join Donald Trump as he arrives in the UK on a three-day state visit. Nadella will be among other tech leaders, including OpenAI’s Sam Altman and Nvidia’s Jensen Huang, attending the Royal state banquet on Wednesday.
He said he would use Microsoft’s AI tool Copilot to help him decide what to wear.
“I was very surprised that there was a very different dress protocol, which I’m really not sure that I’m ready for,” he said.
Gary Bettman, NHL commissioner, speaking on CNBC’s “Squawk Box” on Nov. 20, 2024.
CNBC
The 2026 Winter Olympics in Milan will mark the first time in 12 years that NHL players will return to the Games, something NHL Commissioner Gary Bettman is expecting to have a big effect on the league.
“Ultimately, in terms of balancing the pros and cons, we decided it was important to go back and be on what is one of the most visible platforms in the world,” Bettman said at CNBC Sport and Boardroom’s Game Plan conference in Santa Monica, California, on Tuesday.
Prior to Bettman being named commissioner in 1993, NHL players had not participated in the Olympics. After seeing firsthand the effect that Olympic player participation had on the NBA, Bettman said, the league and the NHL Players’ Association worked to have the players participate starting in 1998.
But that participation stopped after the 2014 Sochi Games, which Bettman said was a reflection of the evolution of the business of the league and the sports industry in general.
“It was a bit of a mixed bag,” Bettman said of the NHL’s participation in the Olympics. “Even though we were shut down for two weeks, our players were treated like invited guests,” he said, adding that the league and its teams “had no control over anything; we didn’t have the rights to promote ourselves.”
There were also competition challenges as well, given the number of players some teams were sending.
Part of what drove the NHL back to the Olympic ice was a shift in that relationship. The NHL and NHLPA’s new deal with the IOC changes some aspects of their commercial arrangement and also upgrades the players’ living conditions while at the Games.
But Bettman also noted it came down to the desire from the players to play best-on-best at a national level, something that was highlighted in the league’s successful 4 Nations Face-Off tournament earlier this year.
“It became clear to me that it was important to our players, who have a history and tradition of representing their countries,” he said.
The NHL will stop play for nearly two weeks this season, and Bettman said Olympic participation “won’t be without its difficulties.” The NHL has not yet formally guaranteed its players will participate in the 2030 Games.
“But on balance, it should be worth it,” he said.
Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2036.
Gandapur decries false allegations, warns hypocrites within PTI over propaganda
Gold price prediction today: Where is gold rate headed this week as US Fed meeting in focus? Here’s the outlook – The Times of India
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