Markets rally after Nvidia’s strong results calm AI bubble fears, and investors await US jobs report – business live

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CLA president blasts Labour's rural economic policy

Gavin Lane, the new president of the Country, Land and Business Association, has delivered a blistering attack on Labour’s rural economic policy, as Emma Reynolds the Defra secretary watches on. She looks unimpressed, my colleague Helena Horton reports from the CLA’s annual conference.

Reynolds is due to speak but is not taking questions from the press or live questions from the audience. Defra requested the CLA send her questions from members in advance, presumably so officials could help her write answers to them.

Lane said of the changes to inheritance tax which mean a large number of farmers will find it difficult to hand down their businesses to their children:

“Whether through ideology inexperience, or perhaps a fundamentalist misunderstanding of how family businesses work, this government is treating intergenerational asset transfer as a problem to be solved, rather than the foundation of sustainable long term investment.”

He accused Labour of having “economic theories about wealth inequality without grasping the breaking up family businesses can destroy the very stability that we need to solve national challenges.”

Lane said Labour was pursuing business consolidation and courting big international companies rather than supporting small and medium-sized businesses which have seen increased taxes and costs over the past year. Unemployment is up, he added, and investment is down in the rural economy. He added that farmers are needed to meet Labour’s targets to build reservoirs and clean energy such as solar farms and onshore wind.

He added:

“I’m not sure why these taxation changes have been pursued with such vigor, or why there’s been little time for consultation, but the Treasury has decided that private capital accumulation is the problem, without understanding, in my view, that private capital investment is the solution.”

Lane said that farmers and landowners are not faceless corporations and that the people in the room “live above the shop” and care about their local communities.

Lane added:

“You can’t ask people to pay to plant an orchard they’ll never see grow. Then tell them their kids aren’t allowed to pick the fruit.”

Dr Martens to raise US prices due to Trump tariffs

Dr Martens is set to put prices up on some items in the US in January as the British bootmaker attempts to offset the impact of Trump’s import tariffs which it said amounted to between £7m and £9m.

The company is also shifting production for US-destined boots and shoes from Laos to Vietnam where the tariff rate is 20% - half that in its neighbouring country. Such
measures are expected to mitigate half the impact of the tariffs by 2027.

Ije Nwokorie, the chief executive of Dr Martens, told The Guardian that Dr Martens had not put prices up in the US for three years and it would be ensuring it “maintains competitive advantage” there with careful adjustments on certain lines.

He added that the broadening of Dr Marten’s product assortment - with more shoes, and new boot styles including a new welly ready for next year’s festival season, had helped give a kick to wholesale sales in the US - which rose for the first time in several years in the quarter.

Nwokorie said the UK was not trading significantly differently to other European markets at present with the consumer “cautious right now” and “looking for deals”.

He said Dr Marten’s efforts to reduce discounting in a quite promotional environment had affected the sales line but it was benefiting from a “flight to quality” and people trading down from luxury brands with shoe sales up 33%. “The consumer is still buying products that meet their needs,” he said.

Chris Beauchamp, chief market analyst at IG, reports that Nvidia’s results have steadied market sentiment, while also giving bearishly-inclined investors something to get their teeth into.

He writes:

“While bubble fears won’t be completely dispelled by last night’s Nvidia earnings, signs of robust demand mean that investors are able to see the upside from here. The 15% stock price drop into earnings, and the accompanying 5% drop in indices, seemed to clear the air nicely, taking out some excessively frothy sentiment. Overall the bulls got what they wanted last night, while bearish investors (hello, Michael Burry) will still be able to argue that such exuberant spending will ultimately end in tears.”

Indeed, Burry (famously portrayed in The Big Short) has posted a chart showing all the interlinked deals between AI players:

Brazil denies planning to poison EU

Brazil’s ambassador to the EU has hit out the “fake news” about meat and other food from Latin American countries, saying nobody is trying to “poison” citizens of the European Union under the recent trade deal with Mercosur countries that continues to be opposed by farmers.

Pedro Miguel da Costa e Silva told a trade conference at the European Commission that half of his country’s exports to the EU are coffee and soy, neither products produced locally, which go on to support a lot of business in the EU.

“I think there is a lot of misperception, a lot of disinformation, a lot of fake news about the quality, like we’re going to poison the citizens of the EU that none of our products have quality, which makes no sense”.

He said there was also much disinformation about Brazil and other countries in Mercosur such as Argentina flooding Europe with food.

“If you look at the numbers, that, again, is not correct, you’re talking about 1% less than 1% . If you look at what Brazil exports to the EU, half of it is coffee and soy, two things that you do not produce, that you use as inputs, and that generates revenue, a lot of revenue, for the EU. And if you look at the other products, it’s minerals, it’s frozen orange juice. None of that is sensitive to the EU agricultural producers.”

China: Nexperia row not fully fully resolved

The Chinese ministry of commerce has said the dispute over the supply of chips from Nexperia, the Dutch-based Chinese-owed company, is still not fully resolved.

“There is still a gap to completely solve the problem,” the Chinese ministry of commerce (MOFCOM) said on Thursday.

Nexperia has been at the heart of a global slowdown of chip supply after the Dutch government effectively took control of the company in the EU amid concerns the company was moving its intellectual and physical assets to China.

MOFCOM said it hopes to “continue to see sincere cooperation” and an “early settlement”.

The car manufacturers’ trade body in the EU, ACEA, yesterday said that although the supply of chips had been restored following Beijing’s decision to lift a ban on chips, supplies remained “critical”.

Jonathan O’Riordan, ACEA’s director of international trade, said a “bridging agreement” was still needed to secure long term supply to the sector, which a few weeks ago said it was “days away” from halting production.

Nexperia’s wafers need input from both the EU and China with the Netherlands producing the wafers which are then sent to the parent plants in China for finishing and global export.

Yesterday the Dutch economy minister Vincent Karremans said they would lift the order which imposed controls on Nexperia in the EU as a “gesture of goodwill” to the Chinese. But Wingtech, the Nexperia Chinese, hit out demanding it permanently rescind the order that placed it under state control and insisting it had done nothing to warrant the Dutch action.

A spokesperson for Wingtech said.

“Minister Karremans justified his actions by accusing Nexperia’s CEO of various acts of alleged mismanagement. Wingtech strongly rejects these accusations and points out that, to date, no proof has been provided,”

Johnson Matthey urges Reeves not to increase costs for businesses

The boss of FTSE 250 metals group Johnson Matthey has said that chancellor Rachel Reeves should hold off increasing costs for British businesses ahead of next Wednesday’s budget.

Chief executive Liam Condon said that cost inflation was still a major issue for British industry, but that the government should also stick with plans to bring in new renewable energy supplies. He said:

The minimum is no additional cost for business. Every time costs go up, you’re making the case against investing in the UK.

In the UK cost of energy is too high versus almost anywhere in the world.

Johnson Matthey is investing in a new refinery to recycle platinum group metals in Royston, Hertfordshire. The company is negotiating with the UK government to qualify for discounts on electricity bills that are reserved for energy-intensive industries. The biggest electricity users receive a 90% discount on extra fees to the grid - paid by other users including households - under the British Industry Supercharger, but it is limited to companies in specific industries.

Johnson Matthey revealed a 38% increased in underlying profit this morning, excluding a catalyst technologies business it is selling to US conglomerate Honeywell.

The company’s main business, producing catalytic converters for petrol and diesel engines, has benefited from a slower-than-expected switch to battery electric vehicles.

Condon said that changes to US and EU rules were “really only catching up to the reality of the market”. He said that consumers had been unwilling to bear “horrendous prices” for electric vehicles, but they were now “getting to the right price point”.

European stock markets are rising across the board, as Nvidia’s results brighten the mood.

Here’s the situation:

• UK’s FTSE 100: up 72 points at 9,579, up 0.77%

• Germany’s DAX: up 241 points at 23,402, up 1%

• France’s CAC: up 90 points at 8,044, up 1.1%

• Spain’s IBEX: up 143 points at 16,031, up 0.9%

• Italy’s FTSE MIB: up 541 points at 43,192, up 1.25%

Matt Britzman, senior equity analyst at Hargreaves Lansdown, says risk appetite has raced back:

Nvidia bears the weight of the world but, like Atlas, it’s standing firm under that towering mountain of expectations.

Third quarter results delivered the goods and then some, a 4% beat on the top and bottom line came with a side of more good news in the form of a monster $65 billion revenue guide for the fourth quarter. While AI valuations are dominating the news feeds, Nvidia is going about its business in style.

There are certainly pockets of the AI space where valuations needed to take a breather, but Nvidia is not in that camp. In fact, while shares have performed well this year, the valuation has gotten more attractive as earnings growth has raced ahead.

Šefčovič: era of secure global supply chains is over

European trade commissioner Maroš Šefčovič has said the decades-old global trading system with secure global supply chains is over.

In the wake of the most recent battle between the EU and China over the supply of chips for the auto industry, he told a conference in Brussels “everything could be weaponised”.

Trade he said is the “new tool” in the trade wars now causing geopolitical waves between China and the US, Europe and the US with import and export bans being imposed at will by Beijing.

“Europe for years, kind of relied upon the reliable global supply chains, this is a new situation. And suddenly we might have new tariffs, might have new exports controls.

Simply that system, which was built for decades, is not there anymore. Everything could be weaponised. So unfortunately, it became the new tool in this, I would say, geopolitical competition.”

A “well functioning World Trade Organization” with reforms was vital for the future of free trade, he added.

Games Workshop shares surge after trading update

Tabletop gaming company Games Workshop has muscled its way to the top of the FTSE 100 share index, after predicting sales and profits will be higher over the last six months.

In a brief trading update, Games Workshop told the City:

The Board’s estimate of the results for the six months to 30 November 2025, at actual rates, is core revenue of not less than £310 million (2024/25: £269.4 million) and licensing revenue of not less than £16 million (2024/25: £30.1 million). The Group’s profit before tax (“PBT”) is estimated to be not less than £135 million (2024/25: £126.8 million).

It also declared a dividend of £1.00 per share taking dividends declared so far in 2025/26 to £3.25 per share (up from £1.85 a year ago).

This has given Games Workshop’s shares a boost – they’re up 10% today at £177, nearly a year after being promoted to the FTSE 100 share index.

Fun fact, they were just £31 in January 2019, when my then-colleague Alex Hern wrote the definitive explanation of how, and why, interest in Warhammer 40,000 was booming:

FTSE 100 jumps after Nvidia results

The Nvidia relief rally has reached London.

After falling for the last five sessions, stocks are higher in early trading. The FTSE 100 share index has gained 56 points, or 0.6%, at the start of trading, to 9564 points.

Technology investors are leading the rally, with Polar Capital Technology Trust up 3.45% and Scottish Mortgage Investment Trust gaining 2.3%.

It’s another sign that Nvidia’s earnings have reassured investors.

Michael Brown, senior research strategist at brokerage Pepperstone, says:

NVDA duly delivered a classic ‘beat and raise’ after hours yesterday, not only topping both top-and bottom-line expectations, with EPS at $1.30 and revenues at $57.01bln in Q3, but also hiking Q4 revenue guidance to between $63.7bln and $66.3bln, above the consensus figure of $61.9bln. All of this, on margins well above 70%...I’m running out of superlatives to describe the figures at this stage, to be honest, though the market clearly isn’t, with NVDA popping as much as 5% after hours yesterday.

With the risk of Nvidia earnings now out of the way, and with the market seemingly content to buy back into the AI theme in the aftermath of the report, at least selectively anyway, I’m relatively confident to call an end to the recent slump that we’ve seen across the equity space, especially with spoos [the futures contract for the US S&P 500 share index] reclaiming the 50-day moving average this morning.

JD Sports says profits will be at lower end of expectations

In the City this morning, retailer JD Sports has not matched Nvidia’s cheery outlook.

JD Sports has told investors that profits this year will come in towards the lower end of current market expectations.

The sports and outdoor wear retailer says it is “taking a pragmatic approach” to its outlook for this financial year, due to “incrementally weaker macro and consumer indicators in recent weeks”.

Régis Schultz, CEO of JD Sports Fashion, says:

“We are navigating a year of volatility in external factors with disciplined execution, reflected in a solid Q3. In the near term, as we enter an important trading period, we are mindful of recent weak macro and consumer indicators in our key markets.

These lead us to take a pragmatic approach for our FY26 profit outturn. We remain confident in the overall positive trajectory for our industry and JD Group over the medium term, and this is well reflected in our commitment to enhanced shareholder returns.”

UPDATE: ​The UK was the worst performing market,JD Group added, as it cautioned over “pressures on our core customer demographic, including rising unemployment levels, as well as near-term volatility around consumer sentiment”.

Sales at established stores in the UK slid 3.3% in the three months to 1 November, but sales were also down in the US and EU - by 1.7% and 1.1% respectively - amid similar pressures there as well as a lack of new product launches to draw in the shoppers and the slowdown in the trend for women’s vintage trainers.

Aarin Chiekrie, equity analyst at broker Hargreaves Lansdown said:

“Trading across the UK remains particularly weak, with recent changes to employer taxes and minimum wages bringing a handful of extra costs and challenges.

Across the pond, the recent acquisition of Hibbett cemented the US as the group’s largest region by sales. Promotional activity among peers to help clear stock remains at elevated levels, weighing on JD’s performance who have chosen to stand firmer on pricing”

Deutsche Bank: Nvidia results have completely changed the market mood

After several weak trading sessions, Nvidia’s results have changed the mood in the markets, says Jim Reid, market strategist at Deutsche Bank:

He told clients this morning:

In a market baying desperately for information, today’s US payrolls follows rapidly on the back of Nvidia’s earnings last night and the start of the return to business as usual for US data.

It’s fair to say that Nvidia’s results have completely changed the market mood and pushed out any bubble fears for another day. The chipmaker delivered a decent revenue beat ($57.0bn vs $55.2bn estimate) and gave strong revenue guidance for the current quarter ($65bn vs $61.9bn est.).

The company’s CFO suggested that Nvidia could even exceed its recent target of $500bn of revenue for the next few quarters.

Asia-Pacific stocks soar on Nvidia relief

A relief rally has swept across Asian markets today after Nvidia’s market-topping earnings cheered investors.

Nvidia’s CEO Jenson Huang’s upbeat forecasts about the future of the AI also helped to send shares roaring higher in Japan, where the Nikkei index is up 2.6%.

South Korea’s KOSPI index is up 2%, while Taiwan’s TW50 index has jumped by 3.6%.

Ipek Ozkardeskaya, senior analyst at Swissquote, says Nvidia has delivered another set of impressive – and record-breaking – results, adding:

What might have made a difference in the market’s reaction is Huang saying that “we’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast – with more new foundation model makers, more AI startups, across more industries and in more countries. AI is going everywhere, doing everything, all at once.”

Introduction: Nvidia shrugs off AI bubble fears

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

It’s one risk event down, one to go, for investors today after Nvidia calmed nerves with some sizzling financial results.

The chipmaker at the heart of the artificial intelligence boom calmed fears of a bursting bubble – and pushed markets higher – by beating Wall Street forecasts, and giving a strong forecasts for its future performance.

Jensen Huang, founder and CEO of Nvida, tried to squish bubble fears, declaring that “We’ve entered the virtuous cycle of AI”

Huang told analysts last night:

“There’s been a lot of talk about an AI bubble.

From our vantage point, we see something very different. As a reminder, Nvidia is unlike any other accelerator. We excel at every phase of AI from pre-training to post-training to inference.”

Sales are up 62% year-over-year, reflecting the massive demand for its chips to power AI systems. The company reported $51.2bn in revenue from data-center sales, beating expectations of $49bn.

And crucially for market sentiment, Nvidia sees faster growth than expected. It is projecting fourth- quarter revenue of around $65bn; analysts had predicted the company would issue guidance of $61bn.

Nvidia’s shares jumped 5% in after-hours trading. Kyle Rodda, senior financial market analyst at capital.com, calls the results “practically spotless”, explaining:

The stock is up after hours and that’s pushed US futures higher, with Asian stock markets likely to follow suit. Something could go wrong as investors parse the details over the course of the day. However, after a torrid few weeks of trade, especially over the last three days, to paraphrase Ice Cube, today could be a good day.

Nvidia’s strong results may calm anxiety that the valuations of companies in the AI revolution have risen dangerously high, leaving the markets vulnerable to a crash. Those worries had heightened after two major investors - SoftBank and Peter Thiel – recently sold their stakes in Nvidia.

Asia-Pacific markets have rallied today (more on that shortly), and European bourses are set to open higher.

Also coming up today

The second fear which hit share prices in recent days is that US central bankers may not cut interest rates as quickly as hoped.

The long-awaited US jobs report for September is finally due to be released today, and should give insight into whether the labour market has continued to cool.

September’s Non-Farm Payrolls report is expected to show a rise of 50,000 jobs with the unemployment rate remaining at 4.3%. A weak reading might nudge the Federal Reserve towards a December rate cut…

The agenda

• 9.30am GMT: ONS data on young people not in education employment or training

• 10a, GMT: Eurozone construction data for September

• 1.30pm GMT: US non-farm payroll report for September

• 3pm: US home sales data for October