\n<\/p>\n
European defence company stocks have dropped at the start of trading, and wholesale gas price are down too, after officials from Washington and Kyiv held weekend talks in Geneva over how to end the Ukraine-Russia war.<\/strong><\/p>\n Last night, the US and Ukraine said they had created an \u201cupdated and refined peace framework\u201d to end the war with Russia, after a row over an original US-backed document that included many of Moscow\u2019s demands.<\/p>\n The US secretary of state, Marco<\/strong> Rubio<\/strong>, said he was \u201cvery optimistic\u201d about the progress of the talks in Switzerland.<\/p>\n Rubio<\/strong> told reporters:<\/p>\n \u201cI think we made a tremendous amount of progress.<\/p>\n We\u2019ve really moved forward, so I feel very optimistic that we\u2019re going to get there in a very reasonable period of time, very soon.\u201d<\/p>\n Volodymyr<\/strong> Zelenskyy\u2019s<\/strong> chief of staff, Andriy<\/strong> Yermak<\/strong>, also sounded positive, saying the sides had made \u201cvery good progress\u201d, and were \u201cmoving forward to the just and lasting peace Ukrainian people deserve\u201d.<\/p>\n Ukraine\u2019s European allies published their own Kyiv-friendly plan on Sunday. It says negotiations over territory should take place after a ceasefire is agreed and should start from the line of contact \u2013 the existing frontline.<\/p>\n The war continued over the weekend, though, with a<\/strong> Russian drone strike on the major Ukrainian city of Kharkiv killing four people and wounding 17 on Sunday.<\/p>\n Hopes that the Geneva talks could lead to a breakthough to end the talks \u2013 leading to fewer weapons sales – knocked German defence firm Rheinmettal<\/strong> down by 3.5% at the start of trading.<\/p>\n Renk<\/strong>, which makes propulsion and drivetrain components for military vehicles, are down over 4%.<\/p>\n In London, defence contractor Babcock\u2019s<\/strong> shares have dropped by 1.4%, while BAE<\/strong> Systems<\/strong> dipped 1% at the open.<\/p>\n Seperately, Bloomberg reports that European natural gas prices have hit an 18 month low today.<\/p>\n They say:<\/p>\n European natural gas dropped below \u20ac30 a megawatt-hour for the first time in more than a year amid discussions about a potential end to Russia\u2019s war in Ukraine.<\/p>\n Benchmark futures hit the lowest levels since May 2024. They had been trading in a narrow band for weeks as traders weighed the region\u2019s ample supplies against frequently shifting weather forecasts, assessing whether there\u2019ll be enough gas to get through winter.<\/p>\n Share<\/p>\n Updated at\u00a003.39 EST<\/p>\n <\/span><\/span><\/p>\n Key events<\/p>\n <\/span>Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/span><\/p>\n <\/span><\/p>\n And finally, European defence stocks have closed in the red, pushed down by hopes of a breakthrough in the talks to end the Russia-Ukraine war.<\/strong><\/p>\n In London, weapons maker BAE<\/strong> Systems<\/strong> ended the day among the big fallers on the FTSE<\/strong> 100<\/strong> share index, down 3%, with defence contractor Babcock<\/strong> losing 1.5%.<\/p>\n German arms maker Rheinmetall<\/strong> has lost over 5%, while Renk<\/strong> lost 3.85%.<\/p>\n Stocks fell after the US and Ukraine said they had created an \u201cupdated and refined peace framework\u201d to end the war with Russia<\/p>\n However, UK prime minister Keir<\/strong> Starmer<\/strong> said today there was more work to do to establish a \u201cjust and lasting peace\u201d in Ukraine, but progress was being made.<\/p>\n Starmer said a group of countries supporting Ukraine, known as the coalition of the willing, would discuss the progress being during a virtual meeting on Tuesday.<\/p>\n He told broadcasters:<\/p>\n \u201cEverybody is absolutely focused on what we need to get out of this, and that is a just and lasting peace.\u201d<\/p>\n Share<\/p>\n Back on the Danish stock market, Novo Nordisk\u2019s share price recovered some of its earlier losses, but ended in the red.<\/strong><\/p>\n Following the news that its semaglutide-based drugs did not slow the progression of Alzheimer\u2019s in late-stage trials, Novo\u2019s shares have closed down 5.79% tonight at 287 Danish krona.<\/p>\n Share<\/p>\n Lisa O\u2019Carroll<\/span><\/p>\n The US have restarted tariffs talks with the EU with a thinly veiled warning they will not drop Donald Trump\u2019s punitive 50% tariffs on steel unless the EU rolls back on regulation on US tech giants.<\/strong><\/p>\n Speaking<\/strong> after meeting EU trade ministers over lunch, commercial secretary Howard<\/strong> Lutnick told reports that the EU needed to come up with a \u201cbalanced approach\u201d.<\/p>\n He flew into Brussels on his private jet for meetings with EU commissioner Maro\u0161 \u0160ef\u010dovi\u010d<\/strong> and the 27 EU trade ministers who want the steel and steel derivative tariffs eased along with 15% tariffs on wine and spirits that before Trump were rated at near zero and zero.<\/p>\n \u201cIf they can come up with that balanced approach, which I think they can, then we will together with them handle the steel and aluminium issues,\u201d he told reporters.<\/p>\n While \u0160ef\u010dovi\u010d<\/strong> described an earlier breakfast meeting with Lutnick<\/strong> as \u201cconstructive\u201d the read out from the US typically blunt.<\/p>\n \u201cWe are talking to them about\u201d rolling back EU tech rules, Lutnick<\/strong> said in an interview with Bloomberg Television (as covered earlier). \u201cIn exchange for that, we will come up with a cool steel and aluminum deal.\u201d<\/p>\n Lutnick and US trade representative Jamieson<\/strong> Greer<\/strong> are due to have meetings with business leaders this afternoon, followed by a working dinner with EU commissioners on the 13th floor of the EU headquarters tonight.<\/p>\n Share<\/p>\n The Bank of Israel has cut interest rates for the first time in almost two years.<\/strong><\/p>\n Israel\u2019s central bank lowered borrowing costs by a quarter of one percent, and said inflation was moderating following the ceasefire in Gaza.<\/p>\n It said:<\/p>\n In view of geopolitical developments, economic activity in Israel recovered sharply during the third quarter. Annual inflation moderated and entered the target range.<\/p>\n During the reviewed period, the shekel appreciated and Israel\u2019s risk premium continued to decline to slightly above its prewar level.<\/p>\n The move lowers Israel\u2019s benchmark rate to 4.25% from 4.5%.<\/p>\n Announcing the decision, the Bank of Israel added:<\/p>\n Annual inflation has moderated, and stood at 2.5 percent in the past two readings. Forecasters project that there will be some increase in inflation at the end of the year, and that it will then decline and stabilize around the midpoint of the target range.<\/p>\n<\/li>\n Economic activity recovered sharply in the third quarter. GDP expanded at a rate of 12.4 percent in annual terms, but its level remains lower than its long-term trend.<\/p>\n<\/li>\n The labor market remains tight. The ratio between the number of job vacancies and the number of unemployed remains high and the pace of wage increases continues to rise.<\/p>\n<\/li>\n<\/ul>\n Share<\/p>\n Wall Street\u2019s main indexes have opened higher, lifted by technology stocks, as expectations of a Federal Reserve interest rate cut in December grow.<\/strong><\/p>\n The Dow Jones<\/strong> industrial<\/strong> average<\/strong> is up 55 points, or 0.12%, at 46,300, while the broader S&P 500<\/strong> index has gained 0.7%.<\/p>\n The tech-focused Nasdaq<\/strong> has jumped by 1.4% in early trading.<\/p>\n Share<\/p>\n Metals recycling firm Unimetals has filed for compulsory liquidation, putting around 650 jobs at risk, PA Media reports.<\/strong><\/p>\n The company, which operates 27 sites nationwide, is expected to begin winding down as soon as Tuesday after efforts to find a buyer for the business failed.<\/p>\n It follows several notices of intention to appoint administrators in recent weeks, with advisers from Alvarez & Marsal managing discussions with possible buyers, but they were unable to secure a sale.<\/p>\n A spokesperson for Unimetals said:<\/p>\n \u201cWe have worked tirelessly to explore every possible option to secure new financing for Unimetals Recycling (UK) Ltd, with the aim of meeting our financial obligations and safeguarding the future of the business.<\/p>\n \u201cThis included an accelerated M&A process, supported by our advisers and undertaken in full collaboration with stakeholders, to identify potential buyers or investors.<\/p>\n \u201cRegretfully, despite substantial interest and attempts at completing a deal, no transaction was concluded.\u201d<\/p>\n The spokesperson added:<\/p>\n \u201cWe recognise how distressing this news will be for everyone connected to Unimetals Recycling (UK) Ltd, particularly our employees who have worked tirelessly over the last year since we acquired it from Sims to try and turn this business around.\u201d<\/p>\n The group said it was \u201cworking urgently to agree on a clear plan and timeline for what happens next\u201d.<\/p>\n Share<\/p>\n UK supermarket chain Asda has seen its credit rating cut deeper into junk territory today.<\/strong><\/p>\n Ratings agency Fitch<\/strong> has downgraded Bellis<\/strong> Finco<\/strong> PLC<\/strong>, the parent company of ASDA Group, to \u2018B\u2019 from \u2018B+\u2019, with a negative outlook.<\/p>\n Fitch<\/strong> took the decision after concluding that Asda\u2019s strategy of price cuts will hurt profits, and after analysing last week\u2019s plan to sell off 24 stores and a distribution centre and lease them back.<\/p>\n Fitch<\/strong> says:<\/p>\n The downgrade reflects Fitch\u2019s expectation that the pricing and availability strategy introduced to regain market share, combined with disruption from Project Future, will lead to a larger contraction in 2025 EBITDA [earnings] than initially estimated.<\/p>\n We also expect that the just announced \u00a3568 million sales and leaseback transaction, accompanied by increased capex, will increase leverage and could bring free cash flow (FCF) generation down towards neutral over 2026-2028. We now anticipate EBITDAR leverage will remain materially above 6x until 2028.<\/p>\n Share<\/p>\n Kalyeena Makortoff<\/span><\/p>\n Meanwhile in the UK, the country\u2019s biggest life insurers including Aviva, Legal & General, Scottish and Phoenix, could weather a \u201csevere\u201d market downturn, according to the Bank of England\u2019s latest stress tests.<\/strong><\/p>\n The tests put the life insurers\u2019 balance sheet through a core scenario of \u201csevere financial market stress\u201d involving a drop in interest rates, tumbling stock prices and property values, and a jump in borrowing costs for companies that led. to credit downgrades and defaults.<\/p>\n New documents released on Monday broke down the aggregate results released by the Bank last week, and showed that the strongest performers were Rothesay<\/strong>, Pension<\/strong> Insurance<\/strong> Corp<\/strong> and Aviva\u2019s subsidiary Aviva<\/strong> International<\/strong> Insurance<\/strong>.<\/p>\n M&G\u2019s Prudential Assurance<\/strong>, Phoenix Group\u2019s Phoenix<\/strong> Life<\/strong> arm, and Just Group\u2019s Partnership<\/strong> Life<\/strong> Assurance<\/strong> Company<\/strong>, had the lowest capital positions after being put through the tests.<\/p>\n While this was the third-ever UK life insurer stress test, it is the first time firm-specific results have been published by the Bank.<\/p>\n However, the regulator explained this was \u201cnot a pass-fail exercise\u201d, and unlike the Bank of England\u2019s stress tests for high street lenders, this would not influence capital requirements or buffers for life insurers.<\/p>\n In the aggregate results published last week, the BoE\u2019s Prudential Regulation Authority (PRA) said:<\/p>\n \u201cThe PRA continues to expect all firms to maintain robust risk management capabilities, including use of their own stress and scenario testing, to test their resilience to a range of downside scenarios and to inform their capital planning.\u201d<\/p>\n Share<\/p>\n Back in Brussels, US Commerce Secretary Howard Lutnick has said the European Union needs to change its digital regulations in order to get a deal to lower steel and aluminum tariffs.<\/strong><\/p>\n \u201cWe are talking to them about\u201d rolling back EU tech rules, Lutnick<\/strong> said in an interview with Bloomberg Television. \u201cIn exchange for that, we will come up with a cool steel and aluminum deal.\u201d<\/p>\n As reported this morning, Lutnick<\/strong> and US Trade Representative Jamieson<\/strong> Greer<\/strong> were in Brussels on Monday for their first official visit since reaching a trade deal with the EU in July.<\/p>\n Lutnick<\/strong> made clear any deal on steel or aluminum is contingent on the EU rolling back some of its regulations on major American tech companies. Lutnick<\/strong> and Greer<\/strong> met with EU technology czar Henna<\/strong> Virkkunen<\/strong> on Monday to discuss the issue.<\/p>\n Lutnick says:<\/p>\n \u201cThe idea is if they take the foot off this regulatory framework and make it more inviting for our companies, they can get the benefit of hundreds of billions, possibly one trillion of investment.\u201d<\/p>\n Share<\/p>\n Novo Nordisk\u2019s<\/strong> shares have dropped to their lowest level since July 2021, Reuters reporter.<\/p>\n Share<\/p>\n Newsflash: Shares in Danish pharmaceuticals giant Novo Nordisk have tumbled around 10% after it reported that the latest trials of its Alzheimer\u2019s treatment did not show a \u201cstatistically significant\u201d reduction in progression of the disease.<\/strong><\/p>\n In a disappointing development, Novo says that two trials of its semaglutide drug had failed to show that it slowed cognitive decline in Alzheimer\u2019s patients.<\/p>\n Novo says that treatment with semaglutide did result in improvement of Alzheimer\u2019s disease-related biomarkers in both trials, but this did not translate into a delay of disease progression.<\/p>\n Semaglutide is sold under the brand names Wegovy<\/strong> and Ozempic<\/strong>, as anti-obesity and diabetes drugs, so Alzheimer\u2019s treatment would have been a new use for the drug. A previous study had suggested it could play a role here:<\/p>\n Martin Holst Lange<\/strong>, chief scientific officer and executive vice president of Research and Development at Novo<\/strong> Nordisk<\/strong>, says:<\/p>\n \u201cBased on the significant unmet need in Alzheimer\u2019s disease as well as a number of indicative data points, we felt we had a responsibility to explore semaglutide\u2019s potential, despite a low likelihood of success. We are proud to have conducted two well-controlled phase 3 trials in Alzheimer\u2019s disease that meet the highest standards of research and rigorous methodology,.<\/p>\n \u201cWe sincerely thank all participants and their caregivers for their meaningful contributions. While semaglutide did not demonstrate efficacy in slowing the progression of Alzheimer\u2019s disease, the extensive body of evidence supporting semaglutide continues to provide benefits for individuals with type 2 diabetes, obesity, and related comorbidities.\u201d<\/p>\n Share<\/p>\n Updated at\u00a007.23 EST<\/p>\n UK government bonds and the pound are both calm today, as the City awaits the budget in two days time.<\/strong><\/p>\n But there could be ructions on Wednesday, if investors are disappointed by Rachel<\/strong> Reeves\u2019s<\/strong> fiscal plans.<\/p>\n A key focus will be how much headroom the chancellor creates to keep within the <\/strong>government\u2019s fiscal mandate (for the current budget to be in balance in 2029-30). At the last budget, she was only meeting this goal by \u00a39.9bn, not enough to absorb many shocks.<\/p>\n Neil Wilson,<\/strong> UK investor strategist at Saxo Markets<\/strong>, warns that Reeves could face a \u2018tantrum\u2019 in the bond market:<\/p>\n Weekend press reports suggest Rachel Reeves will end the two-child benefit cap. This will raise welfare spending in the short term at least.<\/p>\n She\u2019s promising to crack down on benefit fraud and tackle welfare reform in return, but banking on the market giving her a free pass on that seems risky. Given the government has consistently failed to push through any reforms or cuts, to assume it can impose restraint in 2029\/30 is scarcely believable. As someone put it at the weekend, every government meets its fiscal rules yet we are slowly bust.<\/p>\n Buying back some credibility from the market and reducing the premium the UK pays (and so getting some extra headroom without painful tax hikes that squeeze more and more of the most productive elements of the economy), requires tough medicine now and jam tomorrow, not today.<\/p>\n For a Chancellor who has hung her credibility cap on the bond markets, a tantrum could be very dangerous indeed.<\/p>\n Share<\/p>\n An index tracking European defence stocks has fallen to its lowest level since July, down 2.2% today.<\/p>\n Share<\/p>\n Shares in Ferrexpo, a major exporter of iron ore pellets for the steel industry, have jumped by a fifth this morning on hopes of a Ukraine-Russia breakthrough.<\/strong><\/p>\n Ferrexpo operatees three mines and a production facility in Ukraine, and has been badly disrupted by the war. At the start of the conflict its shipments were disrupted after export facilities at the port of Pivdennyi in the south-west of Ukraine were suspended.<\/p>\n Disruption has continued ever since; earlier this month it suspended operations at two subsidiaries, following an attack on Ukrainian transmission infrastructure.<\/p>\n This morning, following the weekend talke in Geneva, Ferrexpo\u2019s shares are up 21% at 69.78p.<\/p>\n Share<\/p>\n Over at London\u2019s Queen Elizabeth II Centre, the head of the Confederation of British Industry is urging Rachel Reeves to prove that she is committed to growth in this week\u2019s budget.<\/strong><\/p>\n CBI CEO Rain Newton-Smith<\/strong> is telling the group\u2019s annual meeting that the government must focus on growth, and avoid becoming locked in \u201ca stop-start economy.\u201d<\/p>\n Newton-Smith<\/strong> says many firms are concerned this year\u2019s Budget will be a repeat of 2024, which included tax rises in businesses. And she is urging Rachel Reeves to show the \u201ccourage to take two tough decisions rather than twenty easier ones\u201d when it comes to tax.<\/p>\n She says:<\/p>\n If growth is your priority, prove it \u2013 make hard choices for it. Against opposition, against short-term politics. Be it welfare, be it pensions increases \u2013 show the markets you mean business. All short-term politics leads to is long-term decline\u2026 and this country cannot afford another decade of stagnation.<\/p>\n \u201cThat means making hard choices for growth now \u2013 before they get harder. Having the courage to take two tough decisions rather than twenty easier ones. Raising the headroom to make promises stick. It means one or two broad tax rises, rather than death by a thousand taxes. Twenty bad choices don\u2019t make a good system. It means stop being defined by the past \u2013 own the challenges of today.\u201d<\/p>\n Reeves<\/strong>, though, is thought to have backed away from raising income tax rates, and is instead expected to announce a flurry of smaller tax rises to close a fiscal black hole and create more headroom for the government to hit its fiscal targets.<\/p>\n The CBI will also hear from Peter<\/strong> Kyle<\/strong>, Secretary of State for business and trade, and Kemi<\/strong> Badenoch<\/strong>, Leader of the Opposition, this morning.<\/p>\n Our Politics liveblog is covering all the action:<\/p>\n Share<\/p>\n Updated at\u00a005.13 EST<\/p>\n The oil price is on track for its fourth daily fall in a row.<\/strong><\/p>\n Brent crude has dipped by 0.7% today to $62.08 a barrel.<\/p>\n Nadir Belbarka, analyst at XMArabia, says the oil market remains caught between expanding global output and heightened geopolitical volatility.<\/p>\n \u200bRecent disruptions\u2014such as drone strikes on Russian export hubs, covert U.S. activity in Venezuela, and shipping security concerns\u2014have sporadically driven price spikes of 2\u20133% in single sessions.<\/p>\n API inventory data showing a 4.4 million-barrel build last week further illustrates that physical fundamentals remain tilted toward surplus, tempering long-term upside unless major production cuts or severe supply shocks occur.<\/p>\n Share<\/p>\n Updated at\u00a005.35 EST<\/p>\n","protected":false},"excerpt":{"rendered":" European defence company shares and gas prices fall after US and Ukraine discuss peace plan European defence company stocks have dropped at the start of trading, and wholesale gas price are down too, after officials from Washington and Kyiv held weekend talks in Geneva over how to end the Ukraine-Russia war. Last night, the US<\/p>\n","protected":false},"author":1,"featured_media":35026,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[10032,303,2071,327,715,6325,1600,419,459,12473,1290,9299,2523,4000,2228,213,674],"class_list":{"0":"post-35025","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-alzheimers","9":"tag-business","10":"tag-company","11":"tag-defence","12":"tag-european","13":"tag-fails","14":"tag-fall","15":"tag-happened","16":"tag-hopes","17":"tag-nordisk","18":"tag-novo","19":"tag-ozempic","20":"tag-peace","21":"tag-reports","22":"tag-shares","23":"tag-talk","24":"tag-ukraine"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/35025","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35025"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/35025\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/35026"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Closing post<\/h2>\n
US: EU must roll back tech regulation to get steel tariff relief<\/h2>\n
Bank of Israel cuts interest rates<\/h2>\n
\n
Metals recycling firm Unimetals files for liquidation<\/h2>\n
Asda’s credit rating cut over price war plans<\/h2>\n
UK life insurers could weather severe downturn<\/h2>\n
Novo Nordisk shares fall after Alzheimer\u2019s trial result<\/h2>\n
CBI calls for courage over budget tax rises<\/h2>\n