Matt Britzman, senior equity analyst, Hargreaves Lansdown:“UK markets look set to open on a firmer footing this morning, tracking gains across global equities as the apocalyptic AI narrative takes a small step back. There’s plenty for investors to sink their teeth into, with well-covered results from HSBC, Diageo and Aston Martin setting the tone for the day. Against a steadier macro backdrop, stock-specific stories are back in the driving seat.
HSBC’s results this morning told a familiar, reassuring story for Asian bank investors: the engine is still humming and management confidence is quietly building. This morning’s 9% profit beat was driven by core banking momentum rather than one-offs, while guidance struck a notably more upbeat tone, pointing to stronger earnings power and returns as we move into 2026. Like Standard Chartered yesterday, there looks to be a clearer runway ahead, with revenue growth expectations nudging higher and costs staying disciplined. With capital being rebuilt after buying the remaining stake in Hang Seng, buybacks are on pause for the time being - but consensus numbers for 2026 now look ripe for another leg up.
US markets found their footing yesterday, with the S&P 500 and Nasdaq climbing as investors warmed (if only just a touch) to a more nuanced AI narrative. Anthropic’s enterprise demo was the cocktail-party chatter, but the key takeaway wasn’t disruption for disruption’s sake - it was partnership, with AI framed as a layer that enhances existing software rather than blowing it up. That subtle shift matters, and while the software rally barely raised an eyebrow in the wake of the recent selloff, it could prove to be the first baby step toward restoring confidence in a bruised sector. Still, one well-received demo doesn’t make a trend, and markets are perfectly capable of staying irrational far longer than logic would suggest.
In streaming land, the Warner Bros bidding war has sprung back to life, with its board signalling that Paramount’s tweaked offer could now qualify as a superior proposal. The headline price is an improved $31 per share, sweetened by a ticking fee and tougher break-up protections. Paramount has clearly sharpened its pencil, waiving downside protection on WBD’s networks business and putting more money at risk if the deal collapses. If this new deal is seen as superior, the ball will be back in Netflix’s court, which will have 4 days to respond and, given the deal maths, will most likely come back with a better offer of its own. It almost feels like a no-brainer for WBD to push this back onto Netflix, even if just to squeeze out some extra juice.
Oil steadied after its recent wobble, with Brent edging back toward the low-$70s as geopolitics crept back into focus. Rhetoric around US-Iran nuclear talks, and the ever-sensitive Strait of Hormuz, reminded markets how quickly supply risk can re-enter the frame, even as diplomacy remains the stated preference. That said, concerns over global demand, not least from fresh US trade measures, continue to cap enthusiasm and keep the move measured rather than dramatic.”
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