LONDON: London Stock Exchange Group reported higher quarterly income as its clearing, capital markets and FTSE Russell businesses grew strongly, helping ease lingering investor concern after a difficult 2017 for the company.
Total income from continuing operations rose 13 percent to £520 million in the quarter ended March 31, while total revenue was up 11 percent at £470 million.
“The group has delivered a strong first quarter performance. All of our key businesses continue to perform well, with strong growth in FTSE Russell, LCH and Capital Markets,” Interim Chief Executive David Warren said in a statement.
The group named Goldman Sachs’ veteran David Schwimmer as chief executive officer earlier this month, drawing a line under a management row between its chairman Donald Brydon and activist hedge fund TCI.
TCI backs Schwimmer, Sky News reported late on Monday. TCI did not respond to request for comment.
LSE’s capital markets division, which makes money from fees paid by companies listing on its markets and trading of stocks and bonds, saw revenue rise by 14 percent to £107 million.
Revenue from information services rose 16 percent to £201 million, with double-digit growth at FTSE Russell, LSE said, adding its income from its clearing business, LCH, surged by 18 percent in the first quarter.
Schwimmer, who will take the helm in August, will have to protect LSE’s strong hold in euro clearing as rival Deutsche Boerse in Frankfurt is already seeking to exploit Brexit uncertainty to build up business. LCH dominates euro swaps clearing.
“The LSE would have more than £900 million in balance sheet capacity for M&A or further returns to shareholders,” RBC analysts who rate LSE as “Outperform,” said.
In March last year, European Union regulators blocked the 29-billion-euro merger between LSE and Deutsche Boerse, formally ending a deal that unraveled in the wake of the Brexit vote.
London Stock Exchange Group’s quarterly income rises
London Stock Exchange Group’s quarterly income rises
Global markets: Shares rise on China-US trade hopes, dollar on the back foot
PARIS: Global shares rallied on Friday, helped by signs of progress in US-China trade talks, while the dollar held close to its lowest levels in more than three years.
World stock markets have rallied to record highs this week, as traders took confidence from a ceasefire between Iran and Israel and markets stepped up bets for US rate cuts.
A trade agreement between the US and China on Thursday on how to expedite rare earth shipments to the US was also seen by markets as a positive sign, amid efforts to end the tariff war between the world’s two biggest economies.
Asian shares hit their highest in more than three years in early trading, and US stock futures pointed to a firm start for Wall Street shares.
The pan-European STOXX 600 index was up 0.8 percent on the day, set for a 1.1 percent weekly gain — its best week since mid-May.
London’s FTSE 100 was up 0.5 percent and Germany’s DAX gained 0.6 percent.
The MSCI World Equity Index touched a fresh record high and was set for a weekly gain of 2.8 percent.
The S&P 500 index is up just 4.4 percent this year overall, following a volatile first half of the year, dominated by US President Donald Trump’s “Liberation Day” tariff announcement on April 2, which sent stocks plunging.
“What we are having right now is potentially some optimism about some trade deals,” said Vasileios Gkionakis, senior economist and strategist at Aviva Investors.
“We have ... come from quite low levels in the aftermath of the Liberation Day in April. To a certain extent we have also had some mini-selloff on the back of the events in the Middle East, and in that sense we’re rebounding.”
Trump has set July 9 as the deadline for the EU and other countries to reach a deal to reduce tariffs.
Mark Haefele, chief investment officer at UBS Global Wealth Management said that in the near-term, the firm saw greater upside potential in US and emerging markets than in Europe.
Dollar drop
The dollar remained on the backfoot, hovering near its lowest level in 3-1/2 years against the euro and sterling.
The dollar index was down a touch on the day at 97.269 , holding near its lowest in more than three years. The euro was at $1.1708, getting a lift after data showed French consumer prices rose more than expected in June.
It held near multi-year peaks hit a day earlier.
“We see the US dollar as unattractive,” said Haefele at UBS Wealth Management.
Markets are focused on US monetary policy, as traders weigh up the possibility of Trump announcing a new, more dovish chair of the Federal Reserve.
Traders have stepped up their bets on US rate cuts, and are now pricing in 64 basis points (bps) of easing this year versus 46 bps expected on Friday.
The dollar is having its worst start to a year since the era of free-floating currencies began in the early 1970s.
“I don’t think it’s just the repricing of the Fed, I think there is a broader issue here of some tarnishing of US exceptionalism,” Aviva Investors’ Gkionakis said.
Core PCE price data, the US central bank’s preferred measure of inflation, is due later in the session.
German 30-year government bond yields were on track for their biggest weekly increase in nearly four months after rising this week on expectations of increased borrowing by Germany’s government.
PIF embraces ‘precision finance’ with diversified debt strategy, says Global SWF
RIYADH: Saudi Arabia’s Public Investment Fund is embracing a calibrated, multi-instrument approach to debt issuance described by Global SWF as a model of “precision finance.”
According to the research firm, the purpose — following the issuance of the commercial paper program in June — is to align PIF’s funding tools with investment timelines, liquidity needs, and investor targeting, while reinforcing financial discipline across its expanding portfolio.
In its report, Global SWF noted that PIF is moving away from a singular focus on long-term mega-bond issuances and toward a more agile debt framework that includes commercial paper, sukuk, green bonds, and multi-tranche conventional bonds.
This strategy is designed not just to raise capital, but to do so with precision, which is matching maturities to project lifecycles and diversifying funding sources across global markets.
Global SWF highlighted that PIF’s latest move, completes a full-spectrum debt portfolio that now includes ultra-short to ultra-long maturity instruments.
The commercial paper, issued in US dollar and euro denominations via offshore special-purpose vehicles, secured the highest short-term credit ratings available: Prime-1 from Moody’s and F1+ from Fitch.
These ratings reflect exceptional credit quality and grant PIF access to deep liquidity pools among institutional investors such as money market funds.
The commercial paper program is a critical addition to a borrowing strategy that also includes a $3 billion 100-year green bond issued in October 2022, a $5.5 billion green bond in February 2023, a $3.5 billion sukuk in October 2023, and a series of multi-tranche bonds and sukuk issued through early 2025.
With each offering, PIF has tailored tenor, currency, and structure to match specific financial and investor objectives.
The evolution of PIF’s financial strategy is closely tied to its broader transformation under Vision 2030. Since 2016, the fund has grown its assets under management from $160 billion to $941.3 billion, according to the latest Vision 2030 Annual Report. It has now increased its 2030 AUM target to $2.67 trillion, reflecting its expanded mandate and rising international profile.
PIF’s investment strategy is balanced between domestic development and global positioning. About 40 percent of its assets are allocated to Saudi-based companies and projects, while the remaining 60 percent target international sectors such as technology, logistics, mining, and tourism.
According to the Vision 2030 report, PIF’s initiatives have helped create 1.1 million jobs, attracted over $37 billion in private capital, and grown the number of PIF-established companies from 45 in 2021 to 93 in 2024.
A strategic departure from Gulf norms
While other sovereign wealth funds such as Norway’s NBIM remain entirely debt-free, and Singapore’s Temasek or China Investment Corporation borrow sparingly, PIF has opted for a hybrid model, one that combines government equity injections with strategic use of debt instruments.
According to Global SWF, this is not a matter of opportunistic borrowing. Rather, PIF is practicing deliberate asset-liability matching which focuses on issuing long-dated bonds to support giga-projects like NEOM or The Line, while using short-term debt for working capital needs and market-timed investments.
Sukuk offerings help tap into regional Islamic finance liquidity, and green bonds target environmental, social, and governance-focused global capital.
This differentiated approach allows PIF to broaden its investor base while keeping funding costs aligned with the nature and duration of its projects.
Why ratings matter
The fund’s credibility is bolstered by strong long-term credit ratings: Aa3 from Moody’s and A+ from Fitch. This has allowed it to secure favorable terms on successive bond offerings and confirmed that PIF is regarded as an exceptionally low-risk short-term borrower, giving it seamless access to institutional liquidity globally.
Global SWF emphasized that the ratings, combined with diverse issuance formats, position PIF among a small group of sovereign wealth funds with the internal capability to manage complex, multi-layered debt programs.
Saudi Arabia is currently navigating a tighter fiscal environment, with a projected 2.3 percent budget deficit in 2025 and a more disciplined approach to public spending.
In this context, PIF’s access to capital markets is more than just financial, according to Global SWF, it serves as a strategic bridge that enables ongoing project execution without placing undue pressure on state reserves.
The firm noted that the fund’s recent bond and sukuk calendar illustrates a sequenced and diversified funding plan, rather than reliance on a single issuance type. This is especially important as global interest rates remain volatile and investors increasingly scrutinize sovereign debt sustainability.
Rather than treating debt as a one-off tool, the fund is deploying it systematically, by tenor, purpose, and investor group, to support a $2.6 trillion vision for economic diversification and global investment leadership.
As the Kingdom approaches the final stretch of Vision 2030 implementation, PIF’s capital strategy offers a case study in how sovereign wealth funds can combine financial discipline, market sophistication, and national ambition under a unified financing framework.
Gold set for second weekly loss; US inflation data in focus
BENGALURU: Gold declined on Friday and was headed for a second straight weekly loss, as the Israel-Iran ceasefire deal and progress on a US-China trade agreement dampened safe haven demand, while investors awaited the US inflation data.
Spot gold slipped 1.2 percent to $3,288.55 per ounce as of 9:43 a.m. Saudi time. Bullion has lost 2.3 percent this week.
US gold futures fell 1.4 percent to $3,300.40.
“The market is looking quite optimistic for the risky assets, so that’s weighing on gold prices,” said ANZ Commodity Strategist Soni Kumari.
De-escalation in the Middle East after the ceasefire and the progress in US-China trade talks are diminishing uncertainty from the market, sending prices further down, Kumari added.
Iranians and Israelis have welcomed a return to normal life after 12 days of the most intense confrontation ever between the countries and a ceasefire that took effect on Tuesday.
Meanwhile, the US has reached an agreement with China on how to expedite rare earth shipments to the US, a White House official said on Thursday, amid efforts to end a trade war between the world’s two biggest economies.
Investors are awaiting the US Core Personal Consumption Expenditure data at 3:30 p.m. Saudi time for further insight into the Federal Reserve’s policy path, with analysts polled by Reuters forecasting a 0.1 percent monthly increase and a 2.6 percent annual rise.
Markets are currently pricing in a 63-basis-point rate cut this year, starting September.
US President Donald Trump says that tame inflation means the Fed should already be reducing its policy rate, but only two Fed policymakers to date have embraced the possibility of a rate cut at the central bank’s July meeting.
Spot silver fell 0.5 percent to $36.44 per ounce and platinum lost 2.8 percent to $1,378.18, after hitting its highest in nearly 11 years. Palladium gained 0.3 percent to $1,135.36, the highest since October 2024.
Oil Updates — crude set to log steepest weekly decline in 2 years as war premium vanishes
- Brent, WTI down 12 percent this week, most since March 2023
- No major supply disruption from Mid-East crisis, analysts say
SINGAPORE: Oil prices headed for their steepest weekly decline since March 2023 on Friday, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.
Brent crude futures rose 35 cents, or 0.52 percent, to $68.08 a barrel by 7:29 a.m. Saudi time while US West Texas Intermediate crude gained 40 cents, or 0.61 percent, to $65.64.
That put both contracts on course for a weekly fall of about 12 percent.
The benchmarks are now back at the levels they were at before Isreal began the conflict by firing missiles at Iranian military and nuclear targets on June 13.
This week began with prices hitting a five-month high after the US attacked Iranian nuclear sites at the weekend, before slumping to their lowest in over a week on Tuesday when US President Donald Trump announced an Iran-Israel ceasefire.
At present, traders and analysts said they could see no material impact from the crisis on oil flow.
“Absent the threat of significant supply disruption, we still view oil as fundamentally oversupplied, with our 2025 balances indicating a roughly 2.1 million barrels per day (bpd) surplus,” Macquarie analysts wrote in a research note on Thursday.
The analysts forecast WTI to average around $67 a barrel this year and $60 next year, raising each forecast by $2 after factoring in a geopolitical risk premium.
Small gains in prices later in the week came as US government data showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising.
“The market is starting to digest the fact that crude oil inventories are very tight all of a sudden,” said Phil Flynn, senior analyst with the Price Futures Group.
Also supporting prices was a Wall Street Journal report saying Trump planned to choose the next Federal Reserve chief earlier than usual. That fueled fresh bets on US interest rate cuts which would typically stimulate demand for oil.
Pakistani stocks decline by 715 points over profit-taking after two days of gains
- KSE-100 Index closes at 122,046.46 points, witnessing a decline of 0.58 percent, as per stock market data
- Profit-taking driven by fiscal year-end considerations, short-term portfolio rebalancing, says financial analyst
ISLAMABAD: The Pakistan Stock Exchange (PSX) witnessed a bearish trend on Thursday after two days of gains, losing 715.18 points to close at 122,046.46 points, which a financial analyst attributed to profit-taking driven by fiscal year-end considerations.
The PSX closed at 122,046.46 points when trading ended on Thursday, witnessing a negative change of 0.58 percent. The KSE-100 had closed at 122,761.64 points on Wednesday and before that on Tuesday, it surged by 6,079 points or 5.23 percent to close at 122,246 points. Analysts attributed the surge on Tuesday to the ceasefire announcement between Iran and Israel.
As many as 473 companies transacted their shares in the stock market on Thursday, with 200 of them recording gains and 237 sustaining losses, state-run Associated Press of Pakistan (APP) said, adding that the share price of 36 companies remained unchanged.
“After two consecutive sessions of strong gains, the local bourse witnessed a round of profit-taking today, driven by fiscal year-end considerations and short-term portfolio rebalancing,” Maaz Mulla, the vice president of equity sales at Topline Securities Limited, said in a statement.
Mulla said the benchmark KSE-100 index saw a “volatile ride“— climbing 656 points intraday before losing 715 points at close of business. He said the closing figure of 122,046 points reflected “a cautious investor mood” as the quarter draws to a close.
He said despite the decline at the end of the day, the overall market activity remained “vibrant.”
“Total traded volume clocked in at 750 million shares, with a traded value of PKR 29.8 billion,” Mulla said.
APP reported that the three top trading companies on Thursday were Pak Int. Bulk with 37,503,501 shares traded at Rs 8.52 per share, WorldCall Telecom with 33,285,442 shares at Rs 1.45 per share and Pervez Ahmed Co. with 32,962,174 shares at Rs 3.29 per share.
