Why investors are focusing on AI enablers

As the AI theme evolves, markets are becoming increasingly focused on businesses powering the next phase of growth. This includes companies linked to semiconductors, networking equipment, cloud infrastructure, data centres,  and the broader hardware ecosystem required to support rising compute demand. 

Training and deploying large AI models requires significantly higher computing power, greater data storage capacity, and increased energy consumption compared to traditional digital workloads. As a result, infrastructure providers are becoming increasingly central to the AI investment cycle, viewed as key beneficiaries of the significant capital expenditure programmes currently being driven by hyperscale technology firms. 

Hyperscale capital expenditure remains a key driver

Recent earnings releases reinforced this trend, with major technology companies continuing to guide toward elevated AI-related spending. 

According to data tracking Amazon, Alphabet, Microsoft, Meta, and Oracle, hyperscaler capital expenditure as a percentage of operating cash flow has climbed from roughly 15% in 2012 to around 60% in 2025. What is more interesting to observe is the jump in investment since late 2023. This clearly highlights the scale of investment currently being directed toward AI infrastructure and computing capacity. Apart from funding through internally generated cash, hyperscalers have also tapped the bond market to expand their AI investments. 

The consistency of these spending trends continues to support the broader investment case for AI infrastructure, even as parts of the technology sector undergo valuation resets and increased volatility. 

For markets, this matters because ongoing hyperscale investment provides visibility into long-term demand across semiconductors, networking systems, cloud infrastructure, and data centre expansion. 

Large technology firms are competing aggressively to expand AI capabilities, secure computing capacity, and strengthen infrastructure ahead of the next phase of deployment.  

Rather than signalling a slowdown in the theme, the recent market weakness appears to have encouraged more selective positioning within it. 

Valuations are becoming more important again 

The recent pullback has re-introduced a stronger focus on valuations. Following the sharp AI-driven rally, parts of the market had begun trading on increasingly elevated expectations, and the retracement has helped moderate some of that positioning.  

This shift suggests markets are gradually moving toward a more disciplined assessment of which businesses are most directly positioned to eliminate the risk of monetisation, a fear which has hit selective names including some from the big tech. 

Why it matters 

“The current phase of the AI cycle is becoming increasingly focused on infrastructure deployment, capital expenditure visibility, and businesses positioned closest to rising computational demand. With monetisation concerns still present across parts of the AI landscape, companies benefiting directly from AI-related spending through the infrastructure and enabling layer may offer a comparatively lower-risk way to gain exposure to the theme” says Jordan Portelli, Chief Investment Officer at Calamatta Cuschieri Moneybase. 

FAQ 

Which specific sectors or company types are most exposed to the AI infrastructure theme? 

The most directly exposed businesses sit within semiconductors (chips required for model training and inference), networking equipment (high-speed interconnects between servers), hyperscale cloud providers (who both spend on and monetise compute capacity), data centre operators and REITs, and energy infrastructure companies given the significant power demands of AI workloads. 

How can a retail investor get exposure to AI infrastructure? 

Options include direct equity positions in semiconductor or data centre companies, thematic ETFs focused on AI or technology infrastructure, or diversified technology funds with meaningful infrastructure weightings. Investors should assess their risk tolerance carefully, as many of these names carry above-average volatility. 

How long is this capex cycle expected to last? 

Most market estimates suggest the current AI infrastructure build-out has a multi-year runway, driven by the scale of model development, enterprise AI adoption, and sovereign AI initiatives globally. However, the pace of spending is likely to become more uneven as companies shift focus toward demonstrating returns on that investment. 

What is the difference between AI enablers and AI adopters? 

Enablers are businesses that provide foundational infrastructure like chips, servers, networking, and cloud capacity that makes AI possible. Adopters are businesses integrating AI into their products or operations to drive efficiency or revenue. Enablers tend to benefit regardless of which AI applications ultimately win, making them a broader and arguably less risky way to gain exposure to the theme at this stage of the cycle. 

This information is issued by Calamatta Cuschieri Investment Services Ltd (“CCIS”) of Ewropa Business Centre, Triq Dun Karm, Birkirkara BKR 9034, Malta (C13729). CCIS is licensed to conduct Investment Services under the Investment Services Act in Malta by the Malta Financial Services Authority. The value of the investment may go down as well as up and may be affected by changes in currency. Any performance figures quoted refer to the past and past performance is not a guarantee of future performance nor a reliable guide to future performance.  

This information is being provided solely for information purposes and should not be deemed or construed as investment advice, advice concerning particular investments, advice concerning investment decisions, tax, legal, or any other ancillary regulatory advice. There is no guarantee that any forecast or opinion will be realized. The information presented does not take into account your personal circumstances and is provided to You on the express basis that it is not advice, and you may not rely upon it in making any investment decision. Investments in any financial instruments involve risks, you should make your own research before making any investment decisions and should seek the assistance of a financial advisor if in doubt. No person should act upon any opinion and/or information in this document without first obtaining professional advice. CCIS does not accept liability for actions, proceedings, costs, demands, expenses, damages, and losses suffered by persons as a result of information, views, or opinions appearing on this document. 

Energy was the only sector to trade higher as oil prices climbed, while industrials, financials and smaller companies lagged the broader market. Among company movers, shares in Fair Isaac fell 7.6 per cent after the firm priced $1 billion of senior notes due in 2034, making it one of the largest decliners in the S&P 500. In contrast, shares in LyondellBasell Industries rose 9.3 per cent after an upgrade from Citigroup, placing it among the index’s top gainers. Commodity markets were mixed, with gold and silver prices both falling around 2 per cent despite heightened geopolitical uncertainty.

Latest market and economic update

• Asian equities mostly fell on Friday as the escalating Iran conflict and disruption risks in the Strait of Hormuz kept investors cautious. Nikkei 225 and KOSPI dropped about 1.2 per cent, with Honda Motor sliding over 6 per cent. Chinese markets were steadier, while ASX 200 and Straits Times Index edged higher despite broader regional weakness.

• US equity futures edged higher overnight as oil prices eased after Washington granted temporary waivers allowing some purchases of Russian crude. S&P 500 Futures rose 0.4 per cent, Nasdaq 100 Futures gained 0.3 per cent and Dow Jones Futures added 0.5 per cent. In after hours trading, shares in Adobe fell more than 7 per cent after its chief executive announced plans to step down.

• European equities fell on Thursday as surging oil prices and Middle East tensions stoked inflation concerns. The STOXX 600 dropped 0.6%, with bank shares leading losses down 3.5%, while energy and utilities rose modestly. Gains in select shares, including Leonardo, Daimler Truck, Zalando and K+S, tempered broader market declines slightly.

• The US dollar rose to a more than three-month high, driven by safe-haven demand amid the Iran war, reaching 99.79 on the dollar index and poised for a 0.8% weekly gain. The euro slid to $1.1504, its weakest since November, while the yen weakened to 159.455 per dollar, prompting Japan to consider intervention measures.

• Oil prices rose in Asian trading on Friday, recovering earlier losses as concerns over supply disruptions from the Iran conflict persisted. Brent Crude climbed 0.6 per cent to about $101 a barrel and West Texas Intermediate gained 0.6 per cent. Crude remained on track for weekly gains of roughly 7 to 9 per cent amid fears of prolonged disruption to supplies.

• Mojtaba Khamenei, Iran’s newly appointed supreme leader, said the Strait of Hormuz should remain closed in his first public remarks since succeeding his assassinated father, Ali Khamenei. He praised Iran’s military and warned the conflict could widen. Donald Trump said Khamenei is likely alive but injured and reiterated preventing Iran from obtaining nuclear weapons remains a priority.

• The United States issued a 30-day waiver allowing countries to purchase Russian oil stranded at sea, aiming to stabilise energy markets disrupted by the Iran conflict. Treasury Secretary Scott Bessent described it as short-term, while President Donald Trump pursued additional measures, including strategic reserve releases, Jones Act waivers, and naval escorts, to curb soaring oil prices.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

• Adobe announced that longtime CEO Shantanu Narayen will step down once a successor is appointed, sending shares down over 7% in after-hours trading. The company reported strong quarterly revenue and subscription growth, but investors remain cautious about its AI strategy amid rising competition and disruption in the creative software market.

• Meta Platforms has delayed the release of its new AI model, Avocado, until at least May 2026 after it underperformed compared with rivals, including Google’s Gemini 3.0. While Avocado surpasses Meta’s prior models, the company is considering temporarily licensing Gemini and has committed up to $135 billion to AI development this year globally.

• Samsung Electronics is set for strong earnings growth, with its entire memory chip supply through 2027 likely to sell out, driven by soaring AI demand and limited industry supply. KB Securities forecasts DRAM and NAND prices to surge, raising 2026–2027 operating profit estimates sharply, while AI-driven edge devices are expected to sustain long-term memory demand.

• Shares in Honda Motor fell more than 6 per cent on Friday after the Japanese carmaker warned it expects its first annual loss since listing in the 1950s. The company flagged charges of up to ¥2.5 trillion linked to cancelling three planned US electric vehicle models and weaker operations in China, amid slowing global EV demand and rising competition.

• Stellantis NV is exploring deals with Chinese carmakers to invest in its struggling European operations, focusing its own resources on the Americas. Executives have met with Xiaomi Corp. and Xpeng Inc. to discuss potential stakes in Maserati and access to European production capacity, aiming to strengthen competitiveness and accelerate the region’s operational turnaround.

• Leonardo reported strong 2026 results, with orders of €25 billion, up from €23.8 billion, and revenues of around €21 billion versus €19.5 billion last year. Earnings before interest, taxes and amortisation are expected at €2.03 billion, and a dividend of €0.63 per share was proposed, alongside a strategy focusing on AI, cybersecurity, and digital defence growth.

• Chinese social media giant ByteDance is building cloud infrastructure outside China using Nvidia’s top-end Blackwell chips, deploying at least 500 servers in Malaysia through Aolani Cloud. The TikTok owner aims to expand its AI offerings globally, following earlier use of Nvidia B200 chips in Indonesia, to strengthen its competitive position internationally.

• Amazon.com plans to move its annual Prime Day sale to late June, shifting it into the second quarter and aligning with the back-to-school season. Since 2015, the event has usually been in July. Last year, Prime Day drove $24.1 billion in US online sales, while competitors Walmart and Target expand same-day delivery and digital order fulfilment capabilities.

• TotalEnergies has lost 15% of its oil and gas output due to the U.S.-Israeli war with Iran, shutting offshore fields in the UAE. The outage represents about 10% of upstream cash flow, though higher oil prices and additional production elsewhere are expected to offset losses. Saudi Arabia’s SATORP refinery continues normal operations.

• Fertilizer shares including CF Industries Holdings Inc, Nutrien Ltd, and The Mosaic Company surged as the Middle East conflict threatens spring supply via the Strait of Hormuz. Prices hit multi-year highs amid oil, LNG, and natural gas disruptions, raising concerns over delayed North American planting and supply-chain pressures on global agriculture markets.

• Deutsche Bank shares fell around 6% after the lender highlighted growth in its private credit portfolio to nearly €26 billion in 2025, noting potential indirect credit risks through interconnected portfolios. The disclosure comes amid heightened investor scrutiny of the $2 trillion private credit sector and concerns over underwriting standards and deteriorating credit quality.

• Goldman Sachs has raised its US inflation forecasts and lowered its 2026 growth outlook, citing higher oil prices linked to the war with Iran. Brent crude could average $98 in March–April, sharply above 2025 levels. Inflation may reach 2.9%, GDP growth slow to 2.2%, unemployment peak at 4.6%, and Federal Reserve rate cuts delayed until September amid persistent price pressures.

• S&P Global said it will not make immediate sovereign rating cuts after the Middle East conflict but warned rising oil and gas prices threaten cash-strapped nations. Gulf states are largely insulated, except Bahrain, while Asian importers like India, Thailand, Indonesia, and heavily indebted countries including Pakistan, Bangladesh, and Sri Lanka face heightened financial risks.

• J.P. Morgan flagged HSBC and Standard Chartered as the most exposed major European banks to the Middle East conflict, highlighting potential earnings pressure. The brokerage noted that rising energy costs could strain corporate lending across agriculture, manufacturing, construction, and transport sectors, increasing financial risks in these banks’ portfolios.

• UBS downgraded European banks to “neutral,” citing stretched valuations and crowded positioning, despite solid earnings and capital. UBS maintained a positive stance on European equities, favouring IT, industrials and Germany, while highlighting risks from energy disruption, AI setbacks, and rate rises.

• Piper Sandler upgraded Occidental Petroleum and Murphy Oil to Overweight after raising mid-cycle oil price forecasts due to tighter supply and potential disruptions from the Iran conflict. Price targets were lifted to $66 and $41, respectively, reflecting stronger efficiency, operating leverage, growth prospects, and resilience amid market volatility.

• Citigroup upgraded Dow Inc. and LyondellBasell Industries to Buy, saying supply disruptions linked to Iran and the closure of the Strait of Hormuz could lift global chemical prices. Stronger export demand, margin expansion, and tighter supply chains may significantly benefit North American producers over several quarters amid ongoing geopolitical uncertainty.

• JPMorgan downgraded MercadoLibre to Neutral and cut its price target to $2,100, citing persistent competition in Brazil and near-term margin pressure from growth investments. The brokerage expects 2026 margins to decline, with EBIT below consensus, though earnings could grow strongly 2026–2029 as the company strengthens its e-commerce and fintech presence.

• Piper Sandler initiated coverage of Shopify with an Overweight rating and $165 price target, citing strong growth potential. Drivers include rising revenue from new merchant cohorts, expansion in payments and financial services, and high switching costs for larger enterprise customers, despite the company’s shares trading at a relatively elevated valuation.

• Evercore ISI upgraded Ryanair Holdings to Outperform from In Line, raising its price target to $80, citing a €1 billion net cash position and a 15% pullback from January highs. Despite record jet fuel margins, Ryanair’s 2026–2027 EPS estimates were raised, while most other carriers saw cuts amid sector-wide fuel cost pressures.

Upcoming data and events

Today’s key economic data included UK January GDP up 0.2%, US Q4 real consumer spending slowing to 2.4%, Q4 GDP growth revising down to 1.4%, and January durable goods orders rising 1.2%. Canada’s unemployment rate ticked up to 6.6%. Major earnings releases featured Allianz SE and Erste Group Bank.

Earlier in the global trading day, Asian equities advanced, although European markets closed lower, reflecting growing caution among investors as geopolitical risks intensify. Markets also assessed the decision by the International Energy Agency to release a record 400 million barrels from strategic reserves in an effort to stabilise supply following disruptions linked to Iran and regional conflict. Meanwhile, US inflation data for February broadly matched expectations, with consumer prices rising 0.3 percent month on month and core inflation increasing 0.2 percent. While underlying inflation trends showed some improvement, the surge in oil prices has shifted the near term outlook, as higher energy costs are expected to push headline inflation higher in the coming months and may prompt the Federal Reserve to keep interest rates on hold for longer.

Latest market and economic update

• Asian equities declined on Thursday as investors locked in recent gains and adopted a more cautious stance. Japan’s Nikkei 225 fell about 2 percent, with the broader TOPIX also weaker. South Korea’s KOSPI, Hong Kong’s Hang Seng Index and Australia’s S&P/ASX 200 all moved lower, while mainland Chinese markets posted modest declines.

• US equity futures moved lower overnight as oil prices surged amid escalating tensions near the Strait of Hormuz. Futures on the S&P 500, Nasdaq 100 and Dow Jones Industrial Average fell around one percent as rising energy prices and geopolitical risks weighed on sentiment. Investors also awaited upcoming US inflation and labour market data.

• European equities fell sharply as energy price concerns weighed on sentiment. The EURO STOXX 50 dropped 1 percent and the STOXX Europe 600 fell 0.8 percent. Banking shares, including Banco Santander, UniCredit and Deutsche Bank, led losses, while SAP, Prosus and Rheinmetall also declined amid broader market caution and geopolitical uncertainties.

• The US dollar remained near its strongest levels this year as rising oil prices and geopolitical tensions stoked inflation concerns, prompting expectations of tighter global monetary policy. The euro fell 0.1 percent to $1.1549, approaching its lowest since November, while Japan’s yen and other major currencies also weakened against the greenback.

• Oil prices surged in Asian trading as escalating conflict involving Iran, the United States and Israel heightened fears of supply disruptions. Brent crude oil rose above 100 dollars per barrel while West Texas Intermediate climbed sharply after tanker attacks and shipping disruptions near the Strait of Hormuz raised concerns over global energy supplies.

• G7 leaders, led by Emmanuel Macron, agreed the Middle East tensions from the U.S.-Israeli-Iran conflict do not justify lifting sanctions on Russia. Following the discussions, the International Energy Agency announced a historic release of 400 million barrels of oil, with France receiving 14.5 million barrels to ease market pressures.

• Gulf economies, including Saudi Arabia, the UAE, Qatar, and Kuwait, are reassessing sovereign wealth fund strategies to offset losses from the U.S.-Israeli-Iran conflict. While hydrocarbon sectors may recover, non-oil industries face lasting damage, prompting potential adjustments in investment, sponsorships, and deployment of the region’s $5 trillion in sovereign wealth assets.

• U.S. inflation remained moderate in February, with consumer prices rising 2.4% annually and 0.3% monthly, while core inflation held at 2.5%. However, the data predates the U.S.-Israeli strikes on Iran, which disrupted oil flows through the Strait of Hormuz and pushed energy prices higher, raising concerns inflation could accelerate and complicate Federal Reserve policy decisions.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

• SoftBank Group shares fell 4 percent to 3,727 yen after its digital payments affiliate PayPay priced its US initial public offering below expectations at $16 per American depositary share, raising around $880 million. The ADSs will begin trading on Nasdaq later today under the ticker “PAYP,” amid broader market volatility and geopolitical tensions. 

• Nissan Motor, Uber Technologies and British startup Wayve announced a partnership to develop robotaxis in Tokyo, targeting a pilot programme by late 2026. Nissan Leafs fitted with Wayve’s autonomous technology will be offered via Uber, initially with trained safety drivers, while the companies consider expanding services to other international markets.

• Nebius Group N.V. and NVIDIA Corporation have formed a $2bn strategic partnership to develop hyperscale AI cloud infrastructure. Nebius will deploy over 5GW capacity by 2030, integrating NVIDIA’s Rubin, Vera, and BlueField platforms. Collaboration spans AI factory design, inference, infrastructure, and fleet optimisation, accelerating Nebius’s AI cloud buildout globally.

• Several LNG buyers, including Shell plc and TotalEnergies, have declared force majeure following QatarEnergy’s production halt at its 77 mtpa facility. While March deliveries remain unaffected, disruptions are expected from April. Both firms have long-term North Field expansion partnerships, with Shell taking 6.8 mtpa and TotalEnergies 5.2 mtpa.

• Citigroup Inc. and Standard Chartered have evacuated Dubai offices, instructing staff to work from home after Iran threatened Gulf banking interests linked to the U.S. and Israel. HSBC Holdings plc also closed Qatar branches. These actions highlight rising regional tensions, dent Dubai’s safe-haven appeal, and raise concerns over business continuity, capital flight, and potential layoffs.

• Elon Musk announced a joint project between Tesla and xAI, called Macrohard or Digital Optimus, capable of emulating software companies’ functions. It combines xAI’s Grok language model with a Tesla AI agent. Running on Tesla’s AI4 chip and Nvidia servers, the system aims to be cost-competitive. SpaceX recently acquired xAI ahead of a potential IPO.

• Taiwan Semiconductor Manufacturing Co reported February revenue of NT$317.66 billion, up 22.2% year-on-year, driven by strong demand for advanced AI and computing chips. Revenue for the first two months of 2026 reached NT$718.91 billion, a 29.9% increase, reflecting robust demand from technology companies building AI infrastructure and next-generation systems.

• An Iranian-linked hacking group, Handala, claimed responsibility for a cyberattack on US medical device firm Stryker, wiping remote Windows devices and disrupting systems. The SEC filing confirmed outages, though no ransomware was detected. Experts link the attack to Iranian retaliation amid US-Israeli strikes, signalling escalating state-sponsored cyber threats.

• A key credit risk indicator for Oracle Corp. improved sharply on Wednesday after its quarterly results eased investor worries over AI-related capital spending. Five-year credit default swap protection costs fell to a one-month low of 1.52 percentage points, according to ICE Data Services, signalling stronger investor confidence in the company’s credit quality and outlook ahead overall.

• Morgan Stanley limited redemptions to 5 percent at its North Haven Private Income Fund, fulfilling only 45.8 percent of requests amid heightened investor withdrawals from private credit markets. Concerns over software company loans and broader market volatility prompted the move, following similar actions by JP Morgan, BlackRock and Blackstone.

• Goldman Sachs raised its Q4 2026 Brent and WTI crude forecasts to $71 and $67 per barrel, citing prolonged Strait of Hormuz disruptions from the US-Israeli conflict with Iran. The bank anticipates 21 days of low flows, gradual recovery, and prices potentially surpassing 2008 peaks, even after planned strategic reserve releases are factored in.

• Barclays warns European equities could decline if oil remains near $100/barrel. Markets currently discount a 25% chance of a major supply disruption, but prolonged high prices may push STOXX 600 down to 550, weaken EPS growth to low single digits, and trigger hawkish central bank action. Energy, utilities, and healthcare outperform, while financials and other cyclical sectors lag.

• Goldman Sachs Group, Inc. forecasts stronger earnings for Samsung Electronics and SK Hynix as rising DRAM and NAND prices, combined with AI-driven memory demand, tighten supply. SK Hynix could achieve high-70% DRAM margins and 80% ROE, while Samsung’s operating profit may quintuple in 2026, with both stocks remaining attractively valued despite growth expectations.

• Wolfe Research raised its price target on Eli Lilly to $1,325, citing stronger expectations for its oral obesity drug orforglipron. The pill could expand the market by removing injection barriers, with peak sales estimated at $44bn. Despite recent share weakness, Lilly is expected to dominate the obesity market and grow revenue over 15% annually ahead.

• JPMorgan Chase & Co. upgraded Oracle Corp. to Overweight with a $210 price target, citing a 55% sell-off that improved risk-reward. Strong Q3 results showed 22% revenue growth, cloud and AI surges, and $7.38bn operating income. Cloud migration, multi-cloud adoption, and database innovation support continued expansion despite margin pressures.

• Barclays upgraded Nike Inc. to Overweight, citing operational progress, inventory management improvements, and margin stabilisation. Barclays highlighted North America’s double-digit growth in running and sales outpacing inventory, while noting risks from tariffs and geopolitics. The firm sees a favourable risk/reward profile, positioning Nike for renewed long-term growth.

• Argenx was upgraded to Buy by Deutsche Bank, with a €725 price target, citing strong Vyvgart sales momentum, a robust $4bn cash position, and consistent profitability. Despite a mixed Q4 report and management changes, valuation is now attractive, with peak Vyvgart sales above $10bn and 2026 P/E around 26x.

• Analysts issued bullish commentary on Howmet Aerospace after its technology and markets day, citing strong demand in commercial aerospace, defence and gas turbines. RBC Capital Markets, Jefferies and Morgan Stanley highlighted aircraft production growth, rising turbine demand and technology investments supporting market share gains and potential margin expansion.

Upcoming data and events

Today’s key US economic data include initial and continuing jobless claims, the four-week jobless average, housing starts, building permits, and trade balances, alongside the EIA natural gas stock change. Treasury auctions and a Fed Bowman speech may affect markets. Major earnings releases feature Shell plc, Adobe Inc., BMW, Deutsche Bank, Generali, and Wheaton Precious Metals.

Global markets showed a more positive tone, particularly in Asia, where equities rallied on optimism that the conflict may soon ease. Japan’s Nikkei index rose nearly 3 percent and Korea’s KOSPI gained more than 5 percent, while European markets also traded higher as oil prices pulled back. In the United States, the technology sector remained a relative bright spot this month, supported by a rebound in software companies. Investors are now turning their attention to upcoming inflation data, with the consumer price index due shortly and the personal consumption expenditures measure later in the week. Expectations for interest rate cuts from the Federal Reserve have moderated following the recent surge in energy prices, though policymakers are still expected to maintain a gradual easing bias if inflation pressures remain contained.

Latest market and economic update

• Asian equity markets rose modestly on Wednesday as oil prices retreated from recent highs, easing some pressure on investor sentiment. Japan’s Nikkei 225 gained over 2 percent and South Korea’s KOSPI advanced nearly 4 percent. Elsewhere, markets were mixed as investors remained cautious ahead of United States inflation data and ongoing geopolitical tensions.

• U.S. equity futures edged higher overnight, with S&P 500 and Nasdaq 100 futures rising about 0.3 percent and Dow Jones futures gaining 0.2 percent. In afterhours trading, Oracle shares gained almost 9 percent following stronger than expected quarterly revenue and earnings. Investors are awaiting the February consumer price index on Wednesday for guidance on Federal Reserve policy.

• European shares surged to their largest one-day gain since April 2025, with the STOXX 600 up 1.9% as optimism grew over a potential end to the U.S.-Israeli war on Iran. Banks led the rally, up 3.6%, while industrials and travel stocks rose. HSBC, Santander and Volkswagen were notable performers amid corporate earnings updates.

• The dollar held near 99 on Wednesday, supported by safe-haven demand amid Middle East tensions. President Trump signalled the Iran conflict could end soon, but Iranian forces dismissed this, warning the blockade would continue. The euro traded at 1.1635 versus the dollar, reflecting the greenback’s strength amid ongoing geopolitical uncertainty and risk aversion.

• Oil prices edged lower in early Asian trading after reports that the International Energy Agency is considering its largest ever emergency reserve release to stabilise markets amid the Iran conflict. Brent fell to about 87 dollars per barrel and WTI to around 82 dollars, as the proposed release could exceed the 182 million barrels deployed in 2022.

• Iran has begun laying mines in the Strait of Hormuz, a crucial shipping lane carrying about one fifth of global oil, raising significant risks to maritime transit. The Islamic Revolutionary Guard Corps controls the strait, and President Trump warned of severe military consequences, reporting that U.S. forces had destroyed ten inactive mine-laying vessels.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

• Oracle reported stronger-than-expected quarterly revenue of $17.19 billion and raised its fiscal 2027 revenue forecast to $90 billion, driven by AI data centre contracts. Remaining performance obligations grew 325 percent, reflecting large-scale AI deals. The company expects cloud margins to improve and anticipates continued strong demand for AI and software-as-a-service products.

• Boeing said first-quarter deliveries of 737 MAX jets may face delays due to wiring scratches from a machining error, though production continues at 42 jets per month. All in-service aircraft remain safe. The company plans to raise output to 47 jets monthly, open a fourth assembly line, and aims to deliver about 500 jets this year.

• Bank of America reported a first-quarter net interest income increase of at least 7 percent year on year. Wealth management fees rose by double digits, investment banking revenue grew 10 percent, and markets revenue saw low double-digit gains. Consumer spending on entertainment and travel was higher than the previous year, according to co-president Athanasia.

• Citigroup CEO Jane Fraser said investment banking and markets fees are tracking mid-teens percentage growth year on year in Q1, expressing confidence in achieving a 10–11% return on tangible common equity by 2026. She described the global economy as "just fine," noted hedge fund losses, and warned a Trump-era credit card cap would limit credit access.

• Volkswagen faces a challenging year as tariffs, weak China sales, and Middle East tensions weigh on profits. Operating profit halved to €8.9 billion in 2025, with a modest 4–5.5% margin forecast for 2026. Revenue is expected to grow 0–3%. The group plans major cost cuts, including 50,000 German job reductions, while Porsche’s profit collapsed 98%.

• Renault aims to sell half of its brand cars overseas by 2030, boosting volumes 23% to over two million annually under its five-year "futuREady" strategy. The plan includes 36 new models, 16 electric, cost reductions for EVs and hybrids, and partnerships with Geely to expand into India, South America, and South Korea amid rising global competition.

• Robinhood Markets’ banking unit has surpassed $1 billion in deposits from 65,000 funded customers since its November launch, CEO Vlad Tenev said. The move represents the company’s second attempt at banking as it seeks to expand beyond trading. Services are offered through Coastal Community Bank, alongside a new high-tier credit card and other account options.

• SpaceX is reportedly leaning toward a Nasdaq listing for what could become the largest initial public offering ever, targeting a $1.75 trillion valuation. The company seeks early inclusion in the Nasdaq 100 index, benefiting from deeper institutional investor access and liquidity. The NYSE remains a competitor, and the IPO could occur as early as June.

• Salesforce Inc. plans to raise up to $25 billion through debt sales to fund its $50 billion share buyback programme, Bloomberg reported, citing sources. The company is targeting at least $20 billion in a US bond offering, which could be executed as soon as this week, though timing may change. It also announced a 5.8% dividend increase.

• Morgan Stanley reported that only three crude and refined product tankers exited the Strait of Hormuz on Tuesday, compared with around 35 normally, signalling severe disruption to oil flows. Tanker rates slipped slightly but remain close to historic highs as the Iran conflict continues to unsettle global energy markets and shipping activity.

• HSBC upgraded equities to maximum overweight, citing potential progress toward ending the Iran war as a market turning point. It sees easing fear signals and recommends buying assets hit hardest by the conflict, favouring Asia and Europe. The bank also prefers gilts and European non-core bonds, while remaining heavily overweight emerging-market debt.

• Goldman Sachs warns that the Middle East conflict and surging energy prices have shifted markets from a “Goldilocks” scenario to heightened risk. Oil and gas shocks could slow global growth and lift inflation, prompting tactical moves to neutral equities and overweight cash. Defensive equities may outperform, but volatility remains, with potential for both pullbacks and rebounds.

• Deutsche Bank upgraded U.S. and European technology sectors to "neutral" from "underweight" and software to "overweight," saying the AI-driven selloff has likely ended. Earnings remain resilient, with no major company expecting revenue declines from AI in 2026. The bank also sees opportunities in Germany’s industrial and construction materials sectors amid fiscal support.

• Wolfe analysts say Amazon.com’s cloud business, Amazon Web Services, could exceed expectations, driven by AI demand and expanding capacity. They forecast 30% annual revenue growth over three years, supported by partnerships with Anthropic and OpenAI. Heavy data centre investment may weigh on near-term cash flow, but returns are expected to improve from 2027.

• TD Cowen reiterated a Buy rating on ASML Holding with a €1,500 price target, naming it its top European idea for 2026. The firm cited ASML’s monopoly in extreme ultraviolet lithography technology, which underpins advanced chip production and AI development, supporting its long-term growth outlook despite premium valuation.

• BofA Securities reiterated a Buy rating on Caterpillar with an $825 price target, implying about 14% upside from current levels. The firm highlighted strong turbine demand and capital spending in energy infrastructure, saying Caterpillar’s high-margin turbine unit remains underappreciated and could support longer-term earnings growth.

• Morgan Stanley upgraded CrowdStrike to Overweight from Equalweight and raised its price target to $510. The bank cited AI-driven growth, strong demand for its Falcon platform and expanding endpoint market share. It named the stock a Top Pick, saying clearer positioning versus consolidating cybersecurity peers could support further gains.

Upcoming data and events

Today, key U.S. economic data includes February consumer price index and inflation figures, 10-year Treasury note auction, February budget statement, and weekly MBA mortgage indices. Energy inventories are also released by the EIA. Corporate earnings include annual results from Inditex, Rheinmetall, Deutsche Börse, and Porsche.

The recovery was supported by a sharp drop in oil prices, with West Texas Intermediate crude oil falling more than 8 percent to about 83.57 dollars per barrel after briefly approaching 120 dollars overnight. Lower oil prices helped ease inflation concerns and reduced market volatility, with the CBOE Volatility Index falling about 14 percent. Bond yields also moved lower, with the U.S. ten year Treasury yield declining to around 4.1 percent. Despite the rebound in U.S. equities, other markets were weaker, with Asian and European indices closing lower amid continued uncertainty surrounding the conflict and its potential impact on global energy supply.

Latest market and economic update

• Asian markets rose broadly following China’s trade data, with South Korea surging 4.66% and Japan climbing 2.51%. Hong Kong, Singapore, Australia, and China all recorded solid gains, reflecting investor optimism. Stronger-than-expected export and import figures boosted confidence across the region, supporting equities amid hopes for a stabilising global economic recovery.

• U.S. equity futures edged lower overnight, signalling a cautious tone on Wall Street following yesterday session’s rebound. Investors continued to monitor geopolitical developments and the potential conclusion of the Iran conflict. Market participants also looked ahead to upcoming corporate earnings releases, including results from Oracle Corporation and Adobe Inc..

• European shares fell sharply yesterday, extending this month’s losses as rising energy prices heightened inflation concerns. The STOXX 50 and STOXX 600 indices both dropped 0.7%. Banks, industrials, and consumer discretionary were hit hardest, with UniCredit and Deutsche Bank down 1.5%, and Siemens and Schneider Electric down 1.7%, amid higher yields and surging power costs.

• The U.S. dollar eased against the euro on Tuesday, retreating from recent highs to $1.1632, as markets speculated the Middle East conflict might be limited. Comments from Donald Trump signalling progress in the Iran war reduced safe-haven demand, supporting risk assets, while traders maintained a cautious stance amid ongoing geopolitical uncertainty and volatile oil markets.

• Oil prices fell sharply on Tuesday after volatile trading, as comments from Donald Trump suggesting the conflict with Iran could end soon eased supply concerns. Brent crude and West Texas Intermediate crude dropped around 10 percent, retreating from earlier highs near 120 dollars per barrel reached amid escalating tensions.

• China’s exports surged 21.8 percent in January and February, far exceeding forecasts and highlighting strong global demand for electronics and technology products. The trade surplus reached 213.6 billion dollars as shipments of electric vehicles, batteries and solar equipment grew. Economists say export strength continues to support the China economy despite tariffs.

• Donald Trump said the conflict with Iran is "very complete" and that the U.S. is far ahead of his four- to five-week estimate, claiming Iran has lost much of its military capability, including its navy, air force, and communications. Iran’s Revolutionary Guards threatened to block oil exports, prompting Trump to warn of stronger U.S. strikes if shipping through Hormuz is stopped.

• The G7 finance ministers said they are ready to take necessary measures to support global energy supply, including releasing strategic oil reserves, amid Middle East tensions. They will continue monitoring energy markets and coordinate with international partners, with participation from the IMF, World Bank Group, OECD, and IEA.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

• Apple Inc has significantly increased iPhone production in India, assembling about 55 million units in 2025, up 53 percent from the previous year. The output now represents roughly a quarter of global iPhone production, reflecting Apple’s strategy to diversify manufacturing away from China amid trade tensions and benefit from India’s production-linked incentives.

• Anthropic has sued the US government to overturn a Pentagon decision labelling the AI company a national security supply-chain risk. The designation followed its refusal to remove safeguards preventing uses such as autonomous weapons or domestic surveillance. Anthropic says the move is unlawful and could threaten its government business and future federal contracts.

• Live Nation Entertainment reached a proposed $200 million settlement with the U.S. Justice Department over antitrust claims related to Ticketmaster, requiring structural reforms and opening parts of its platform to competitors. The move disrupts a trial involving 39 states, drawing criticism from the court and New York’s attorney general, who said it fails to address the monopoly.

• Roche’s breast cancer pill giredestrant failed its pivotal persevERA trial, showing no significant benefit in first-line ER-positive, HER2-negative metastatic cases. Jefferies said this undermines its commercial outlook and compresses earnings multiples, while AstraZeneca’s camizestrant trial offers advantages. Roche’s next giredestrant readouts are expected in 2027.

• JPMorgan’s Mislav Matejka warned of short-term equity weakness from geopolitical derisking but views it as brief, offering a buying opportunity. Oversold areas are emerging despite oil and bond risks. Investors may focus on Industrials, Semis, Discretionary, emerging markets, the eurozone, and select oversold AI or hyperscaler shares in the coming week or two.

• Morgan Stanley warns oil prices could surge above $130 a barrel if disruptions to the Strait of Hormuz persist. About 20 million barrels of crude and refined products normally pass through the route daily. Prolonged disruption could tighten supply, trigger production cuts and push prices higher to curb global demand.

• Citi expects Apple to face margin pressure from rising memory costs in 2026–27, trimming earnings forecasts slightly, though its Buy rating and $315 target remain. iPhone shipments are unchanged, with growth of 1.3% in 2026. Apple’s scale, pricing flexibility, bill-of-material adjustments, and AI-driven services, including a Siri upgrade, could offset cost pressures and gain market share.

• Barclays cut Oracle’s price target to $230 from $310, warning that strong AI-driven revenue growth may pressure near-term margins due to upfront costs and lease timing. Q3 is expected to show revenue acceleration above consensus, but gross margins and EPS face headwinds. Barclays maintained an Overweight rating, citing compelling long-term risk/reward.

• Wells Fargo has resumed coverage of Netflix at Equal Weight, saying the company is returning to “Plan A: invest for growth” after abandoning its Warner Bros. Discovery bid. Analyst Steven Cahall highlights $20 billion content spending, engagement focus, sports ambitions, and a $105 price target as key valuation drivers.

• Rothschild Redburn double upgraded GE Vernova to Buy from Sell, raising its price target to $1,100, citing strong AI-driven demand for gas turbines and higher margins. 2028 EBITDA is expected 47% above consensus, with margins above 30%. Global gas turbine demand now projected over 100 GW. Analysts note risks if AI adoption or data centre expansion slows.

• Susquehanna analyst Mehdi Hosseini raised price targets for Micron, Samsung, SanDisk, and SK Hynix ahead of Micron’s fiscal Q2, citing stronger DRAM and NAND pricing and rising demand. AI workloads boost memory needs, while expanding manufacturing capacity may balance supply by 2027. Execution and margin management remain key for valuations.

• Barclays upgraded Leonardo to Overweight from Equal Weight, raising its price target to €68, citing stronger earnings momentum and potential restructuring of its aerostructures business. The defence group could see higher valuation, doubled free cash flow by 2030, and improved margins. Exposure to Ukraine and the Middle East is minimal, with 25% of revenue from the U.S.

• Jefferies upgraded Hensoldt to Buy from Hold, citing strong 2025 order momentum and rising demand for air defence systems, including Germany’s TRML-4D and Spexer radars. With over €48 billion in 2026 proposals, cash flow appears conservative despite higher capital spending. Revenue growth is back-end loaded, and the stock trades at a lower premium versus peers.

Upcoming data and events

Today, key economic releases include Germany’s January trade balance and US housing data, NFIB business optimism, a 3-year Treasury auction, and API crude stock changes. Earnings reports from Aramco and Oracle will provide insights into energy and tech sector performance amid ongoing economic trends.

For the week as a whole, global equities came under notable pressure as markets shifted into a risk off environment. Oil prices surged by more than 30 per cent amid escalating tensions in the Middle East, marking the largest weekly increase in more than two decades and heightening fears of a renewed energy driven inflation shock. Major United States equity markets declined between 2 and 5 per cent, while European and emerging market equities recorded steeper losses of roughly 5 to 10 per cent. Government bond yields also moved higher over the week as rising oil prices pushed inflation expectations upward. The combination of geopolitical uncertainty, weaker economic data and growing questions around the timing of central bank rate cuts contributed to elevated volatility and cautious investor sentiment.

Latest market and economic update

• Asian shares tumbled this morning as surging oil prices, driven by escalating Middle East tensions, unsettled investors and reignited global inflation fears. Japan’s Nikkei 225 and South Korea’s Kospi plunged over 7% while regional markets broadly declined. Chinese inflation data offered mixed signals as rising energy costs and geopolitical uncertainty heightened volatility across the region.

• U.S. equity futures fell on Sunday evening as escalating Middle East tensions pushed oil above $100 a barrel, heightening inflation concerns. S&P 500, Nasdaq-100 and Dow Jones Industrial Average futures dropped about 1.7–1.8%. Rising crude prices and Iran naming Mojtaba Khamenei as successor to Ali Khamenei unsettled investors and complicated the Federal Reserve policy outlook.

• Europe’s STOXX 600 posted its largest weekly drop in nearly a year, down 5.5%, as the Middle East conflict persisted and weaker-than-expected U.S. jobs data clouded the outlook for interest rate cuts. Banks and healthcare shares fell, while energy and defence sectors gained amid higher oil prices and increased weapons demand, with volatility remaining elevated.

• The U.S. dollar surged as soaring oil prices and escalating Middle East conflict drove investors towards safe-haven assets. The euro fell to about $1.1517 against the dollar, while sterling and other currencies weakened. Fears of disrupted energy supplies and prolonged war raised concerns over inflation, weaker global growth and fewer interest rate cuts.

• Oil prices surged more than 25% on Monday, reaching their highest level since July 2022, as the expanding U.S.–Israeli conflict with Iran raised fears of supply disruptions. Concerns over curtailed Middle East output and shipping risks through the Strait of Hormuz fuelled gains, with analysts warning prolonged disruptions could drive prices towards $130–$150 per barrel.

• Iran’s Assembly of Experts appointed Mojtaba Khamenei as supreme leader after his father, Ayatollah Ali Khamenei, died in U.S. and Israeli strikes. A mid-ranking cleric with strong Revolutionary Guards ties, he was long viewed as a likely successor. President Trump demanded “unconditional surrender” and pledged to rebuild Iran’s economy stronger than before.

• Federal Reserve Governor Christopher Waller said a spike in gas prices may shock Americans but is unlikely to cause sustained inflation. He noted short-term energy price rises pose challenges, while prolonged increases could have broader economic effects, as the Fed continues monitoring price pressures and their impact on monetary policy decisions.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

• Samsung Electronics and SK Hynix have reportedly been chosen as the exclusive suppliers of sixth-generation high-bandwidth memory (HBM4) for Nvidia’s next flagship AI accelerator, Vera Rubin. The selection strengthens the South Korean firms’ position in the fast-growing AI chip supply chain, while leaving U.S. rival Micron Technology out of the upcoming product cycle.

• Novo Nordisk and Hims & Hers Health are expected to announce a partnership to distribute obesity treatments, including Wegovy and Ozempic, according to a report by Bloomberg News. The agreement would end a legal dispute over compounded semaglutide products and shift the companies from competition toward collaboration in selling weight loss medications.

• S&P Dow Jones Indices said Vertiv, Lumentum, Coherent and EchoStar will join the S&P 500 from 23 March. The companies will replace Match Group, Molina Healthcare, Lamb Weston and Paycom. Vertiv and EchoStar shares rose in extended trading on Friday, reflecting expected demand from index tracking funds.

• Nvidia has introduced a variable compensation plan for fiscal 2027 that sets a target cash bonus of $4 million for chief executive Jensen Huang, linked to revenue targets. The move follows strong recent results and a robust outlook driven by continued demand for artificial intelligence processors from major technology companies.

• Donald Trump met executives from major defence contractors including Lockheed Martin, RTX, BAE Systems and Northrop Grumman to discuss boosting weapons production after US military operations, including strikes involving Iran. The Pentagon is seeking to replenish depleted stockpiles and expand output of precision guided munitions and air defence systems.

• Boeing is close to securing its first major aircraft order from China in nearly a decade, potentially including up to 500 737 MAX jets and around 100 widebody 787 and 777X aircraft, according to Bloomberg News. The deal, still under negotiation, could be announced during Donald Trump’s state visit to Beijing.

• Oracle Corporation and OpenAI have cancelled plans to expand their artificial intelligence data center in Abilene, Texas, due to financing issues and changing needs. The decision opened the site to Meta Platforms Inc., with Nvidia Corporation facilitating discussions and ensuring its AI chips continue to be used at the Stargate campus.

• Japan’s SoftBank Group is seeking a $40 billion loan, mainly to fund its investment in AI firm OpenAI, potentially its largest US-dollar borrowing. The 12-month bridge loan, likely underwritten by four banks including JPMorgan Chase, highlights founder Masayoshi Son’s AI ambitions. SoftBank has invested $30 billion in OpenAI, amid asset sales and a lowered credit outlook.

• Robinhood launched its $658.4 million venture fund on the New York Stock Exchange under the ticker ‘RVI’, giving retail investors access to private technology firms such as Databricks, Ramp and Revolut. The fund targets late-stage companies, aiming to reduce risk while offering exposure to high-value private assets.

• United Airlines warned that surging jet fuel prices from the Iran conflict could significantly reduce first-quarter results, even as travel demand remains strong. With tickets sold in advance, carriers may have to absorb higher fuel costs, pressuring margins. First-quarter adjusted profit per share is now projected between 5 and 22 cents.

• Analysts at Yardeni Research warned global equities could fall amid Middle East conflict, forecasting a 10–15% pullback depending on disruption at the Strait of Hormuz. Prolonged conflict may drive oil prices higher, raising stagflation risks, while energy shares and commodities act as hedges, and emerging-market equities face pressure.

• BMO Capital Markets upgraded Okta to Outperform with a $97 target, citing strong demand for identity management as businesses adopt artificial intelligence agents. Okta’s platforms are well positioned to manage human and machine identities, with growth expected in subscription revenue and long-term potential from AI agent governance across enterprise networks.

• Marvell Technology was upgraded to Buy by Benchmark and Bank of America after strong results highlighted accelerating AI-driven growth. FY27 and FY28 revenue and EPS guidance were raised, driven by demand for custom chips, data-centre products, and optical connectivity, with opportunities from Microsoft and Amazon, while valuation remains attractive.

• Oppenheimer initiated coverage of CoreWeave with an Outperform rating and $140 target, citing strong AI infrastructure growth, specialised cloud services, and large market opportunity. Near-term capital and debt concerns are deemed short-sighted, with financial strength and cash returns expected to improve as the company exits its hyper-growth phase.

• Needham & Company highlights an accelerating “unmanned supercycle” benefiting drone-focused companies amid rising global defence spending. Key firms include Amprius, AeroVironment, Draganfly, Ondas, Red Cat, and Unusual Machines, poised to benefit from defence and security demand.

• Barclays upgraded DHL Group to “overweight” with a €54 12-month target, citing Middle East tensions tightening airfreight supply. The bank raised FY26 EBIT to €6.5bn, forecasts EPS of €3.46, and highlights DHL’s strong market share in Express and global trade lanes, while noting potential risks from competition and regional disruptions.

Upcoming data and events

Monday’s main economic releases are the Conference Board’s Employment Trends Index, combining eight labour-market indicators to assess job conditions, and the New York Federal Reserve’s consumer inflation expectations report, providing insights into Americans’ outlook on future price pressures and potential implications for monetary policy and markets.

Bond yields also moved higher, with the ten year US Treasury yield rising to around 4.14 percent as investors reassessed the outlook for interest rates and inflation. Higher oil prices have lifted inflation expectations, leading markets to push the timing of the next Federal Reserve rate cut further into the future. Economic data pointed to a labour market that remains stable but gradually cooling, with initial jobless claims holding steady at 213,000 while continuing claims edged up to 1.87 million, suggesting some workers are taking longer to find new employment. The steady pace of layoffs alongside slower job creation indicates that the labour market may be stabilising even as broader economic uncertainty increases.

Latest market and economic update

• Asian equities were mixed on Friday amid escalating Middle East tensions and surging oil prices. South Korea’s KOSPI fell 1%, Japan’s Nikkei edged up 0.6%, while China’s Shanghai Composite and CSI 300 slipped. Hong Kong’s Hang Seng rose 2%. Weekly declines were steep, with South Korea and Japan facing nearly 12% and 6% losses, respectively.

• US equity futures were little changed overnight after Wall Street extended its sell-off. S&P 500 and Nasdaq 100 futures edged up about 0.1%, with Dow futures up 0.2%. Investors remain cautious amid Middle East tensions and rising oil prices. Attention now turns to Friday’s US nonfarm payrolls report expected to guide rate-cut expectations.

• European equities closed sharply lower as escalating Middle East tensions and rising energy costs weighed on markets. The Euro Stoxx 50 fell 1.7% and the STOXX Europe 600 lost 1.4%. Banks including Santander, UniCredit and Deutsche Bank were down, while industrials Siemens, Safran and logistics group DHL Group also fell on concerns over higher energy and shipping costs.

• The US dollar held broadly steady in Asian trading, poised for its strongest weekly gain in over a year as Middle East tensions drove safe-haven demand. The dollar index is up about 1.4% this week. The euro traded around $1.1621, under pressure as markets weigh rising inflation risks and slower expectations for Federal Reserve rate cuts.

• Oil prices fell in Asian trading after five sessions of gains as traders took profits and the US considered measures to curb rising prices, including allowing Indian refiners to buy Russian crude. Brent slipped to around $84 a barrel and WTI near $79, though both remain on track for weekly gains of more than 17% amid Middle East supply concerns.

• US President Donald Trump said he must personally approve Iran’s next supreme leader, rejecting likely successor Mojtaba Khamenei, son of the late Ali Khamenei. Trump said the US should help shape the choice to avoid future conflict, comparing his desired role to Washington’s involvement in leadership changes in Venezuela.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

• The Trump administration is drafting rules requiring licences for global exports of advanced AI chips from Nvidia and Advanced Micro Devices. The proposal would expand restrictions and place the US Commerce Department at the centre of approvals, with stricter reviews and possible conditions for large deployments by purchasing countries.

• Shares of online travel agencies surged yesterday after reports that OpenAI is scaling back plans to enable direct bookings through ChatGPT, easing fears of disintermediation. Companies like Expedia, Booking Holdings and Tripadvisor benefited, as AI will now focus on third-party app checkouts, allowing agencies to remain key intermediaries in travel planning.

• Apple’s iPhone shipments in China fell about 37% year-on-year in January, following strong demand around the iPhone 17 launch. UBS estimates total smartphone sell-in dropped 16% YoY, with iPhones’ market share declining to 11%. Apple also launched the lower-priced MacBook Neo to expand in the price-sensitive PC market.

• Oracle Corp plans to cut thousands of jobs amid a cash crunch from a large AI data centre expansion, Bloomberg reported. Reductions, affecting multiple divisions and roles less needed due to AI, may begin this month. Hiring freezes are under review, as Oracle ramps up cloud and AI capabilities to compete with Amazon and Microsoft.

• The Pentagon labelled AI lab Anthropic a “supply-chain risk,” barring government contractors from using its Claude technology in military projects, including in Iran. The restriction applies only to Pentagon contracts. Anthropic plans to challenge the move, while non-military collaborations with Microsoft, Amazon, and other clients can continue.

• Marvell Technology forecast first-quarter revenue of around $2.40 billion, exceeding Wall Street estimates of $2.27 billion, reflecting strong demand for custom semiconductors in AI-powered data centres. Shares rose about 15% in after-hours trading. Marvell and Broadcom supply cloud companies with tailored chips as hyperscalers seek alternatives to Nvidia’s general-purpose AI processors.

• DHL Group gave a cautious 2026 outlook, expecting EBIT above €6.2 billion amid a weak macroeconomic environment. CEO Tobias Meyer cited geopolitical volatility and Middle East disruptions affecting air and sea routes. Q4 operating profit fell 1.3%, with freight forwarding earnings down 36%, while road operations faced weak European demand.

• The Trade Desk shares surged 20% on Thursday after CEO Jeffrey Terry Green disclosed purchasing 6 million shares worth $148 million between March 2 and March 4. The purchases coincided with reports that the company is in talks with OpenAI to sell ads on its AI platform, offering a potential growth catalyst amid steep recent share declines.

• Crypto investor Michael Terpin said Bitcoin could fall towards $50,000 during the current correction, with a deeper drop to about $40,000 possible if negative macro events occur. He expects a gradual recovery later, with prices potentially reaching $80,000–$100,000 by year-end before stronger gains later in the decade.

• Bank of America reinstated coverage of payment companies, citing steady transaction growth and rising digital payments. Visa and Mastercard received Buy ratings, while Block Inc. was also rated Buy and PayPal Holdings Neutral. Buy-now-pay-later firms Affirm Holdings and Klarna were rated Buy, supported by adoption growth and expanding digital commerce.

• Shares of CoreWeave fell after Bernstein gave an underperform rating and $56 target, citing competitive risks. Analyst Madison Rezaei noted that while demand for computing capacity has helped the company, hyperscalers may pursue direct GPU cloud offerings, potentially cannibalising CoreWeave’s market as capacity grows and competition rises.

Upcoming data and events

Key US economic releases on Friday include February’s nonfarm payrolls, expected at 59,000 versus 130,000 previously, with the unemployment rate steady at 4.3%. Average hourly earnings are forecast up 0.3% monthly. Other notable data include retail sales for January and the Baker Hughes oil rig count.

Despite the rebound in US equities, global markets have faced greater pressure amid rising oil prices linked to the ongoing conflict involving Iran. West Texas Intermediate crude rose to around $75.93 per barrel, while bond yields also moved higher, with the ten year United States Treasury yield reaching 4.09%. International equities have been more sensitive to the energy shock, with the Euro Stoxx 50 down more than 4% this week, Japan’s Nikkei falling nearly 8%, and declines also seen in emerging markets such as Hong Kong and Korea. The rise in oil prices reflects concerns about potential disruptions to shipping through the Strait of Hormuz, although reports that Iran may be open to discussions with the United States helped ease market volatility.

Latest market and economic update

• Asian equities rose sharply on Thursday, led by South Korea’s KOSPI, which rebounded over 10% on chipmaker and auto sector gains. Chinese shares also climbed after Beijing set a slightly weaker 2026 growth target but pledged fiscal support. Japan, Singapore, India, and Australia saw modest gains, while rising oil prices and U.S.-Iran tensions kept markets cautious.

• US equity futures moved higher overnight, extending gains after strong economic data supported market sentiment. S&P 500, Nasdaq 100 and Dow Jones futures all advanced modestly. In after hours trading, Broadcom Inc rose more than 5% after reporting better than expected earnings and issuing a strong outlook driven by demand for artificial intelligence chips.

• European shares rebounded on Wednesday, with the STOXX 600 up 1.4% and Germany’s DAX gaining 1.7%, as hopes of a Middle East resolution boosted sentiment. Banks, travel, luxury, tech, and industrials led gains. Key movers included Santander, BBVA, Adidas, and ASM International, while oil remained near multi-month highs, keeping inflation concerns alive.

• The United States dollar paused its recent rally on Thursday, easing from a three month high as tentative hopes for diplomatic progress in the Middle East improved risk sentiment. The euro stabilised near $1.1628 after earlier losses, although the dollar remains more than 1% higher for the week amid ongoing geopolitical uncertainty and inflation concerns.

• Oil prices rose sharply in Asian trading as escalating tensions in the Middle East heightened fears of supply disruptions. Brent Crude climbed about 3% to $83.84 per barrel, while West Texas Intermediate Crude gained 3.5%. Concerns centre on the closure of the Strait of Hormuz, although rising United States crude inventories tempered gains slightly.

• China set a 2026 economic growth target of 4.5% to 5%, slightly below last year’s pace, signalling a shift towards higher quality and more sustainable growth. Policymakers plan greater support for technology, innovation and domestic consumption while maintaining accommodative fiscal and monetary policies, as the world’s second largest economy seeks to reduce reliance on exports.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

• Broadcom Inc said artificial intelligence chip revenue could exceed $100 billion by 2027, highlighting strong demand for custom semiconductors used in AI infrastructure. The company forecast second quarter revenue above expectations and announced a $10 billion share buyback. Shares rose in extended trading, as AI related sales more than doubled in the latest quarter.

• Nvidia CEO Jensen Huang said recent investments in OpenAI and Anthropic could be the last before the AI firms go public, with stakes of $30 billion and $10 billion respectively. Meantime, billionaire investor Leo KoGuan has bought one million Nvidia shares, citing early AI potential, while Jefferies views Nvidia and Broadcom Inc as undervalued.

• Saudi Aramco is considering selling a stake to a Chinese investor as its planned international IPO is seen delayed further, sources said. The sale could precede a dual listing on Tadawul and overseas markets. Political and regulatory concerns in New York and London have complicated plans for what is expected to be the world’s largest flotation.

• Anthropic chief executive Dario Amodei is reportedly in talks with the United States Department of Defense to salvage an artificial intelligence contract after earlier negotiations collapsed. Disputes centred on safeguards against mass surveillance and autonomous weapons. Rival OpenAI has since secured a Pentagon contract and is also pursuing work with NATO.

• Bayer set 2026 EBITDA guidance of €9.1–9.6bn, slightly below market expectations, as CEO Bill Anderson works to manage heavy debt, costly Roundup litigation, and restructure the management team. Shares fell 3.8% to a two-month low. The company aims to cut costs by €2bn by 2026 and expects €1.5–2.5bn free cash outflow, driven by roughly €5bn in litigation settlements.

• Abercrombie & Fitch forecast modest sales growth for 2026, factoring in a small tariff impact and a slight hit from the Middle East conflict. Shares fell 4%. The retailer plans to expand by about 30 stores, focus on full-price sales, and cater to middle- to high-income consumers, with net income per share expected above analysts’ estimates.

• Brown-Forman, maker of Jack Daniel’s, beat Q3 sales and profit expectations with $1.06bn revenue and 58c EPS, driven by premium whiskey and ready-to-drink drinks, especially in Brazil and Mexico. US sales fell 8% amid health trends and GLP-1 adoption. Despite trade disputes and Gen Z shifts, full-year forecasts remain low-single-digit declines, with fiscal 2026 seen as challenging.

• Robinhood Markets Inc has launched a $695-a-year Platinum credit card for high income customers as it expands beyond trading into broader financial services. Issued with Visa Inc, the invite only card offers premium travel and dining benefits and higher credit limits. It was unveiled alongside new trading accounts and tax tools at the company’s Take Flight event.

• Johnson & Johnson has launched a website, J&J Direct, to sell select drugs including diabetes treatments Invokana, Invokamet and blood thinner Xarelto directly to uninsured or cash paying patients in the United States. The move follows an agreement with the Trump administration to lower drug prices and improve access, alongside a $55 billion US investment plan.

• Goldman Sachs warns of near-term correction risks in global equities from geopolitics, AI disruption, and high valuations, but sees limited scope for a deep bear market. Despite recent MSCI and S&P 500 losses, robust earnings and economic growth support broad diversification and risk-adjusted returns, says chief strategist Peter Oppenheimer.

• Citadel Securities strategist Scott Rubner turned bullish on US equities, citing washed-out sentiment, heavy retail buying, and seasonal patterns despite Iran-related volatility. Defensive positioning and elevated hedging create a favourable setup for a rebound through mid-March, with options expiries and volatility normalisation potentially opening a window for renewed market risk-taking into April.

• Morgan Stanley sees Samsung Electronics shares as attractive after a 20% drop, citing a buying opportunity amid shifts in AI memory architecture. Hybrid models combining SRAM for speed and HBM for capacity are emerging. Nvidia’s upcoming LPU chip could bypass HBM bottlenecks. Samsung’s HBM4, SRAM capabilities, and foundry flexibility make it the firm’s top pick.

• Bank of America reinstated coverage of Tesla with a Buy rating and $460 price target, citing leadership in autonomous driving and robotaxi services. The bank highlighted Tesla’s camera-only FSD approach, 1.1 million subscriptions, and expansion into seven new markets by 2026. Additional upside comes from Optimus robots and the $90bn energy segment, supporting long-term growth.

Upcoming data and events

Thursday brings a packed schedule of U.S. economic data, including jobless claims, trade balance, nonfarm productivity, unit labour costs, import and export prices, factory orders, natural gas storage, Treasury bill auctions, and Federal Reserve Governor Michelle Bowman’s remarks. Key earnings releases feature Costco, Petrobras, Kroger, Marvell Technology, and Ciena.

The pullback in equities came amid rising oil prices and higher bond yields, as supply disruptions linked to tensions around the Strait of Hormuz pushed crude prices sharply higher. West Texas Intermediate crude rose more than 4 per cent on the day, lifting inflation expectations and contributing to a rise in US Treasury yields, with the 10 year yield moving above 4 per cent. Markets are reassessing the outlook for Federal Reserve rate cuts, with expectations shifting towards a slower pace of policy easing. Despite the near term volatility, investors continue to identify opportunities across cyclical and value sectors, US mid cap equities with greater domestic exposure, and selected emerging and international markets tied to global technology growth.

Latest market and economic update

• Asian equities fell sharply as escalating US Iran tensions and surging oil prices hit risk appetite. South Korea’s KOSPI plunged 11 per cent, led lower by Samsung Electronics, SK Hynix and Hyundai Motor Company. China’s CSI 300 and Hong Kong’s Hang Seng Index declined on mixed PMI data, while Australia’s ASX 200 retreated despite firm growth.

• US equity index futures continued to fall overnight as the Middle East conflict heightened concerns over energy driven inflation. S&P 500 Futures dropped 0.15% to 6,815 points, Nasdaq 100 Futures fell 0.15% to 24,718, and Dow Jones Futures declined 0.15% to 48,491, reflecting cautious sentiment ahead of key US economic data this week.

• European equities fell sharply as Iran’s attacks on GCC energy infrastructure and Strait of Hormuz threats sparked fears of an energy shock. The Euro Stoxx 50 dropped 3.5 percent, with banks leading losses, Santander minus 6.2 percent, BBVA and UniCredit minus 5 percent. Industrial and chemical equities, including Siemens, Schneider, and Bayer, also slumped over 5 percent.

• The US dollar strengthened to a three month high against the Euro, slipping 0.3 per cent to $1.1581 as escalating Middle East tensions raised concerns over sustained energy price rises. The dollar index climbed to 99.284, its strongest since late November, reflecting broad investor demand for safe haven assets amid inflationary and geopolitical pressures.

• Oil prices extended sharp gains in Asian trade as intensifying US Israel Iran tensions fuelled supply disruption fears. Brent Crude rose 1 per cent above 82 dollars, while West Texas Intermediate gained 0.7 per cent. Threats to shipping through the Strait of Hormuz added a risk premium, although US naval escort plans may temper further increases.

• Israeli Prime Minister Benjamin Netanyahu said the U.S. and Israel’s war against Iran may take time but will not last years, rejecting claims of an open-ended conflict. He described the strikes, following Iranian retaliation, as aimed at curbing Iran’s nuclear programme, and urged Iranians to “take back your country,” while envisioning lasting Middle East peace.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

• Shares in Samsung Electronics fell sharply after reports that mass production at its Taylor Texas chip plant will be delayed until early 2027. The 37 billion dollar facility had been expected to ramp up sooner, including production of advanced two nanometre chips. The shares finished 8 per cent lower, despite major orders such as a reported contract with Tesla Inc.

• Santander’s $12.2 billion purchase of US lender Webster Financial could be delayed after President Trump suspended trade with Spain, triggered by Spain denying US military base use for Iran operations and NATO spending disputes. Rising tensions may hinder regulatory approval and reduce the deal’s value, causing sharp declines in both Santander’s and Webster’s share prices.

• CrowdStrike forecast fiscal 2027 revenue above estimates, driven by demand for its AI-powered cybersecurity amid rising cloud adoption and cyberattacks. Q4 revenue rose 23% to $1.31 billion, with adjusted EPS beating estimates. The company plans acquisitions of SGNL ($740 million) and Seraphic Security ($420 million), despite higher fiscal 2026 costs from a Windows outage.

• Pinterest said activist investor Elliott will buy $1 billion in fresh equity, backing a $3.5 billion share buyback to reduce outstanding shares. Elliott, already the company’s fourth-largest shareholder, signals confidence amid weak ad spending and rising competition from Meta, Google, and AI-driven platforms. Pinterest aims to boost growth via AI shopping tools, with 619 million users.

• Goldman Sachs CEO David Solomon said he was surprised by the “benign” market reaction to the Middle East conflict, noting it may take weeks for investors to fully assess impacts. Despite spiking oil prices and rising inflation concerns, US equities have only fallen modestly, supported by strong macroeconomic tailwinds and regulatory easing.

• Morgan Stanley upgraded Novo Nordisk to Equal-weight, saying the 40% share decline now reflects mid-term risks, including semaglutide patent cliffs and CagriSema positioning. Strong Wegovy Pill prescriptions support forecasts, despite U.S. sales weakness. The bank expects 5% sales and 4% EBIT growth over 2026–2029, viewing 2026 as a transitional year amid rising competition.

• HSBC upgraded Block to Buy after Q4 2025 results, raising its target to $77, citing stronger earnings and a significant valuation de-rating. Workforce cuts are seen as boosting profitability. HSBC raised 2026 earnings and EPS estimates, noted back-end-loaded growth, and expects 2027-28 consensus forecasts to rise, highlighting an attractive risk-reward profile.

• Jefferies upgraded Deutsche Boerse to Buy with a €270 target, citing cheap valuation, resilience to AI disruption, and potential for higher trading volumes amid market volatility. Around half of revenue is insulated from AI. Strength at European Energy Exchange and Eurex, plus the ALLFG acquisition, supports growth, while shares remain 25% below last year’s peak.

Upcoming data and events

Today's main economic releases include Japan’s February Consumer Confidence and multiple U.S. indicators, including ADP employment, ISM and S&P Global services PMIs, and EIA oil stock changes. The Fed’s Beige Book is also scheduled. Major earnings reports feature Broadcom, Bayer, Adidas, Dassault Aviation, Brown-Forman, and Okta.

Heightened risk followed military strikes by the United States and Israel on Iran, with retaliatory actions adding to uncertainty across global markets. Oil prices rose strongly on concerns over flows through the Strait of Hormuz, supporting energy companies but prompting renewed inflation worries, reflected in higher US Treasury yields. In corporate news, Nvidia gained 3 per cent after announcing investments in Coherent and Lumentum. By contrast, AES fell sharply after agreeing to a take private deal backed in part by BlackRock, while Norwegian Cruise Line declined after issuing weaker forward guidance. Overall, the session underscored a market balancing solid fundamentals against mounting geopolitical and commodity related pressures.

Latest market and economic update

• Asian equities retreated sharply on Tuesday, led by South Korea’s KOSPI, which plunged 4.3 per cent amid profit taking and geopolitical strain. Japan’s Nikkei 225 fell over 2 per cent. Technology heavyweights SK Hynix and Samsung Electronics slid up to 8 per cent, while Hong Kong energy groups PetroChina and CNOOC Ltd gained on stronger oil prices.

• U.S. equity index futures declined overnight as escalating conflict between the United States, Israel, and Iran showed no signs of de-escalation, with S&P 500 futures down 0.6%, Nasdaq 100 futures falling 0.7%, and Dow Jones futures sliding nearly 0.6%. Nvidia and AMD dipped slightly after reports that the U.S. may impose limits on AI chip exports to China.

• European equities fell sharply on Monday as Middle East tensions escalated following Iran’s Supreme Leader’s killing. The Euro STOXX 50 dropped 2.5% and STOXX 600 fell 1.5%. Banks, luxury equities such as LVMH, Hermès, and Inditex, and auto shares including BMW and Volkswagen declined, while defense and energy shares advanced amid surging oil and natural gas prices.

• The U.S. dollar strengthened sharply following strikes on Iran, reaffirming its safe-haven role amid Middle East tensions. The dollar index rose nearly 1%, supported by robust Treasury markets and the U.S.’s net energy exporter status. Against the euro, the greenback gained, with EUR/USD trading at 1.1685, reflecting heightened investor caution.

• Oil markets remained volatile after prices surged more than 7 per cent amid escalating tensions between the United States and Iran, raising concerns over potential disruption in the Strait of Hormuz. Brent crude climbed to $79.28 and West Texas Intermediate reached $72.31, as Washington announced plans to mitigate rising energy costs and ease market pressures.

• US manufacturing expanded for a second month in February, with the ISM PMI at 52.4, beating forecasts. However, input prices jumped to their highest since October 2022, signalling rising inflation risks amid tariffs. New orders eased but remained strong, while employment stayed weak as firms managed headcount cautiously despite steady demand and exports.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

• European natural gas prices soared Monday after Iranian drone attacks forced QatarEnergy to halt LNG production, affecting nearly 20% of global exports. Dutch TTF futures jumped 46%, with Goldman Sachs warning a month-long Strait of Hormuz disruption could double prices. Extended closures would strain fuel-switching and storage, intensifying Europe’s energy crisis.

• Shares in drone and defence companies surged after US-Israeli strikes on Iran and Tehran’s retaliation heightened regional tensions. AeroVironment jumped 17%, Red Cat 26% and nLIGHT 14%, while Kratos, Unusual Machines and ZenaTech also rose. Major contractors Lockheed Martin and RTX gained over 3% as investors rotated into defence equities.

• Amazon reported that drone strikes in the Middle East damaged some of its data centres in the United Arab Emirates and Bahrain, disrupting cloud services and causing prolonged recovery. The outage affected financial institutions and core AWS services, highlighting risks to Big Tech infrastructure amid the conflict following strikes on Ayatollah Ali Khamenei.

• Nvidia will invest $2 billion each in Lumentum and Coherent to strengthen photonic technologies supporting faster AI data centre chips. The deals include purchase commitments and access to advanced optical products. The move aims to maintain Nvidia’s lead as rivals expand custom silicon, while boosting US manufacturing, research and production capacity.

• ASML plans to expand beyond EUV lithography into advanced chip packaging and larger AI chip tools, aiming to support multi-level “skyscraper” chips. CTO Marco Pieters highlighted AI integration to speed control software and inspections. The company seeks long-term growth, leveraging its optics expertise, with shares up 30% in 2026 and trading at a premium to peers.

• Tesla gained market share in parts of Europe in February, with registrations rising 55% in France, 74% in Spain and 32% in Norway, though falling in the Netherlands and Denmark. The rebound follows two years of declining sales. Despite improvement, its regional market share remains well below recent peak levels.

• Shares in Norwegian Cruise Line fell 10% after fourth-quarter revenue of $2.24 billion missed forecasts, though earnings slightly beat expectations. The company issued weak 2026 guidance, projecting full-year EPS of $2.38 and flagging softer bookings. Analysts warned of pressure beyond the first quarter, while activist investor scrutiny appears to be intensifying.

• Bank of Ireland expects artificial intelligence to deliver around 20% of its planned €250 million cost savings by 2028, with a greater impact thereafter. The lender sees net interest income reaching €4 billion beyond 2028. Workforce reductions will mainly occur through natural attrition as part of its broader efficiency and technology strategy.

• JPMorgan Chase CEO Jamie Dimon said artificial intelligence could reduce the work week to four days and called for government-led retraining for the AI era. Speaking on Bloomberg TV, he noted the US economy is stable, expects the Iran conflict to slightly boost inflation, and highlighted JPMorgan’s cautious, non–winner-takes-all AI approach.

• JPMorgan views geopolitical tensions as a buying opportunity, citing resilient activity, limited downside, softening inflation, and AI-driven deflation. Analyst Mislav Matejka recommends adding exposure during volatility, with the bank remaining overweight on international, emerging market, and Eurozone equities.

• Evercore ISI says the S&P 500’s early 2026 volatility is a buying opportunity, with EPS forecasts raised to $304. Strong earnings, a solid economy and few systemic risks support growth. Pullbacks toward 6,520 are expected to hold. Technology, materials and industrials are poised for the strongest EPS growth, while AI-related weakness offers entry points.

• Citi upgraded UK equities to Overweight, saying their strong exposure to commodities, defensive sectors and aerospace and defence offers protection amid rising geopolitical tensions and higher oil prices, expected above $80 per barrel. The bank downgraded Japan to Underweight, noting it typically underperforms during oil price spikes despite supportive domestic earnings trends.

• Jefferies expects metals and mining shares to keep outperforming as war in Iran heightens geopolitical and inflation risks. A potential Strait of Hormuz closure could disrupt aluminium and iron ore supplies and raise energy costs. Commodities offer an inflation hedge, supporting prices. Preferred shares include Freeport-McMoRan, Glencore, Anglo American and Alcoa.

• Bank of America raised price targets for ExxonMobil to $151 and Chevron to $206, citing higher risk premiums from Middle East tensions. While Iranian production remains largely intact, disruptions in the Strait of Hormuz have pushed crude prices sharply higher, benefiting oil and LNG equities, with impacts possibly temporary.

• JPMorgan reinstated an Overweight rating on Netflix with a $120 target after it withdrew from a Warner Bros acquisition battle, praising its M&A discipline. Shares have rebounded strongly. The bank highlighted solid subscriber growth, margin expansion and cash flow prospects, forecasting double-digit revenue growth and higher buybacks through 2026.

• Piper Sandler upgraded CrowdStrike to Overweight after an 18% share price fall, arguing AI disruption fears are overstated. It set a $520 target, citing strong innovation, consolidation tailwinds and expansion into identity security. AI is seen as boosting demand, positioning CrowdStrike and peers such as Palo Alto Networks for recovery.

• Goldman Sachs downgraded Novo Nordisk to Neutral from Buy, cutting its 12-month target to DKK260 after REDEFINE-4 trial results lowered CagriSema and cagrilintide sales forecasts. Peak sales were halved, and 2026-2030 revenue, profit and EPS estimates were reduced. Shares have fallen 27% year-to-date, with the equity now a “show-me story.”

• Deutsche Bank upgraded Aixtron to Buy, raising its target to €31 after strong Q4 2025 orders. Despite cautious 2026 guidance and a soft Q1 outlook, investors are optimistic. Management expects a transitional year with flat revenues, as a silicon carbide trough is offset by AI-driven optoelectronics laser growth, setting up acceleration from 2027.

Upcoming data and events

On Tuesday, key economic releases include EU and Italian inflation for February, US logistics and optimism indexes, API crude oil stocks, Australian Q4 GDP, and China’s February manufacturing PMIs. Corporate earnings feature CrowdStrike, Sea Limited, AutoZone, Thales, ASM International, and Fresnillo.