Sapphire Foods, the Indian operator of KFC and Pizza Hut restaurants, slipped into a third-quarter loss after booking a one-time charge linked to the rollout of the country’s new labour codes, even as revenue continued to rise.

The results underline the growing cost pressures facing fast-food chains in India, where regulatory changes, heavy discounting, and uneven consumer demand are reshaping profitability across brands.

The company, a franchisee of Yum Brands, reported a consolidated net loss of ₹4.7 crore for the quarter ended December 31.

This compared with a profit of ₹11.9 crore in the same period last year, reflecting the impact of higher costs despite steady top-line growth.

Labour laws weigh on earnings

Sapphire said the quarterly loss was driven by a one-time charge of ₹ 8.02 crore related to India’s new labour laws.

Total expenses rose 8.4% year on year to ₹813 crore, broadly in line with revenue growth, indicating limited room for cost absorption.

Revenue from operations climbed nearly 8% to ₹ 814 crore, supported by store additions and promotional activity.

However, the near match between revenue and expenses highlighted how regulatory and operating costs are compressing margins for organised restaurant chains.

Discounting deepens competition

Fast-food operators in India continue to face stiff competition from local eateries and cloud kitchens, many of which operate with lower overheads.

To protect volumes, Sapphire leaned on aggressive promotions during the quarter, including a chicken burger meal priced at ₹99.

Such discounting has become increasingly common across the sector, but it has also added pressure on profitability as companies attempt to balance value offers with rising labour and input costs.

KFC and Pizza Hut move in opposite directions

Demand trends diverged sharply across Sapphire’s brands.

Same-store sales at KFC rose 1% in the third quarter, reversing a 3% decline recorded a year earlier.

The improvement suggested a modest recovery in consumer traction at the fried chicken chain.

By contrast, Pizza Hut continued to struggle.

Same-store sales at Pizza Hut fell 12% year on year, compared with a 5% increase in the same quarter last year.

The decline pointed to weaker demand in the casual dining segment and heightened competitive pressure.

Expansion continues amid consolidation

Despite the quarterly loss, Sapphire pressed ahead with expansion.

The company added 31 new restaurants during the October to December period, taking its total store count to 1,028 by the end of December.

The broader sector remains under strain. Peer Devyani International, which also operates KFC and Pizza Hut outlets in India, reported a wider third-quarter loss earlier this week.

Sapphire’s shares were last down 1%.

In January, Sapphire and Devyani announced plans to merge in a $934 million deal, a move aimed at creating a larger fast-food franchisee platform in India.

The proposed combination comes as operators look to scale up to better manage costs and compete in the world’s most populous country.

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Alphabet (NASDAQ: GOOGL) shares experienced a rare post-earnings “hiccup” on Wednesday, as investors grappled with a massive spike in projected capital expenditures and a slight miss in YouTube advertising revenue.

Despite the initial knee-jerk selloff, the underlying fundamentals of the search giant remain not just intact, but historically strong.

Alphabet comfortably cleared the bar on both the top and bottom lines, posting an EPS of $2.82 and revenue of $113.83 billion, proving that the core Google machine is firing on all cylinders.

For savvy investors, the post-earnings dip in Google stock looks less like a fundamental breakdown and more like high-quality entry point into a firm that’s aggressively securing its throne in the “AI-dominated future” of the internet.

Google stock: a story of cloud dominance and search resilience

While the market focused on a minor YouTube shortfall, the “real story” of the Q4 report was the astronomical growth in Google Cloud, which raked in $17.66 billion – shattering the $16.18 billion estimate.

This wasn’t just a beat; it was a statement of intent. The Cloud segment’s growth is increasingly fuelled by generative AI adoption, with enterprise customers flocking to the Gemini platform.

Meanwhile, core Search revenue continued to defy skeptics who feared AI disruption, proving that “AI Overviews” are actually enhancing user engagement rather than cannibalizing it – essentially making GOOGL stock all the more attractive as a long-term holding.

The discrepancy between $2.82 EPS and the $2.63 estimate highlights Alphabet’s uncanny ability to drive efficiency even as it scales with operational margin benefiting from widespread integration of custom AI hardware like its in-house TPUs.

Why capex surge is actually a positive for GOOGL shares

The headline that spooked the herd was Alphabet’s 2026 capital expenditure guidance, which is set to nearly double 2025 levels at a range of $175 to $185 billion.

However, viewing this as a negative is a misunderstanding of the current tech arms race. As CEO Sundar Pichai has noted, the “risk of under-investing is far greater than the risk of over-investing” in AI infrastructure.

This massive spend is not a drain; it is a defensive and offensive moat. By doubling down on data centers and custom chips, Google is ensuring it remains the “landlord” of the AI era.

Jefferies analysts have already looked past the sticker shock, recently raising their price target on Google shares to $400, arguing these investments are the bedrock for the next decade of double-digit growth.

How to play Alphabet Inc after Q4 earnings

The slight miss in YouTube advertising – $11.38 billion versus the expected $11.84 billion – is being treated by bulls as a mere timing issue rather than a structural decline.

In fact, many analysts point out that YouTube’s “sell-through” of Shorts is accelerating and that the platform is seeing record engagement in its subscription services (YouTube Premium and TV), which aren’t fully captured in the “advertising” headline.

With recent upgrades from Raymond James to “strong buy” and a consensus that GOOGL shares remain the most reasonably valued among “Magnificent Seven” names (trading at a significant discount to peers on a PEG basis), the current volatility is likely a gift.

Between the Apple Gemini partnership and the rollout of Gemini 4.0 on the horizon, the catalysts for continued upside in 2026 are already lining up.

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The Nikkei 225 Index held steady near its all-time high in the third week, continuing the strong bull run that has been going on for years. It was trading at ¥53,770, up sharply from the 2022 low of ¥24,200. 

Japan stocks continued their rally as traders reacted to earnings by some of the biggest companies in the country, including Mitsubishi UFJ, Mitsubishi Heavy, Marubeni, Nintendo, and Mitsui.

Japan stocks jump ahead of election 

The next important catalyst for the Nikkei 225 Index will be the upcoming election, which will solidify Sanae Takaichi’s reign. Polls and experts believe that she will win by a landslide, a move that will usher in a period of more government spending and tax cuts in the country.

Takaichi has already announced a big $175 billion stimulus meant to ease the cost of living as inflation remains elevated in Japan. She has promised to deliver more tax cuts once she becomes elected as the Prime Minister.

The Nikkei 225 and Topix indices will likely continue rising when the election ends on February 8.

However, a victory could lead to some challenges, including the Japanese yen crash. Data shows that the USD/JPY exchange rate has risen in the last four consecutive days and is slowly nearing the year-to-date high of 159.40. It has jumped by over 12% from its lowest level in 2025, raising odds that the Trump administration will intervene.

More Nikkei 225 Index companies will release the earnings in the coming days. Mitsubishi, Nippon Telegraph, Suzuki, Fujifilm, Tokyo Electron, Itochu, and Subaru will release their numbers on Thursday and Friday.

Other companies to watch next week will be Honda Motor, Recruit Holdings, Fujikora, Japan Tobacco, Softbank,, and Tokio Marine will publish their earnings.

The Nikkei 225 Index has done well as foreigners continue to accumulate. Data compiled by TradingEconomics shows that foreigners bought Japan stocks worth over ¥494 billion and bonds worth over ¥713 billion last week.

Sony stock jumped by 6% on Thursday, making it one of the best-performing companies in Nikkei 225 Index. It reported a 22% improvement in profit and boosted its forward guidance. It now expects to make an operating profit of $9.8 billion in the quarter to March.

Nikkei 225 Index technical analysis 

Nikkei 225 Index chart | Source: TradingView

The daily timeframe chart shows that the Nikkei 225 Index has been in an uptrend in the past few years, mirroring the performance of the global stock market.

The bull run has faded recently as investors waited for the upcoming elections. It has remained above all moving averages, a sign that the bull run is continuing.

However, it has formed a rising wedge pattern, which is made up of two ascending and converging trendlines, which are nearing their peak.

The Relative Strength Index (RSI) and the MACD indicators have formed a bearish divergence pattern. Therefore, the index will likely retreat in the coming days, potentially to the key support level at ¥52,000. A move above the all-time high of ¥55,070 will point to more gains.

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Sony Group reported stronger-than-expected December-quarter results, with operating profit rising sharply despite currency volatility and higher memory component costs, as the company’s entertainment and semiconductor businesses supported performance.

The Japanese technology and entertainment conglomerate posted revenue of 3.71 trillion Japanese yen ($23.68 billion) for the quarter, slightly ahead of LSEG SmartEstimates of 3.69 trillion yen.

Operating profit reached 515 billion yen, beating expectations of 468.9 billion yen and marking a 22% increase from a year earlier.

Revenue rose 1% year-on-year.

Sony also raised its full-year outlook, projecting operating profit of 1.54 trillion yen, an increase of 110 billion yen, or 8%, from its prior forecast.

The company lifted its annual revenue estimate by 300 billion yen to 12.3 trillion yen, while maintaining its projection that US tariffs would reduce operating profit by 50 billion yen.

Sony Group’s shares were down 0.63% at the time of writing.

Gaming segment faces cost pressures despite digital momentum

The company attributed its stronger performance to growth in its game, music, and image-sensor businesses.

Sales in Sony’s game and network services division, which includes the PlayStation console brand and remains the company’s largest revenue contributor, totaled 1.613 trillion yen.

That figure declined by 68.7 billion yen from a year earlier.

The gaming segment has benefited from growing digital game purchases and increased adoption of the PlayStation Plus subscription service.

However, hardware shipment growth has remained relatively subdued, and the business is expected to face further challenges from rising component costs.

PlayStation consoles rely on dynamic random access memory (DRAM) chips, which are currently experiencing supply shortages due to surging demand from artificial intelligence and data center operators.

According to market research firm TrendForce, contract prices for conventional DRAM chips are expected to rise between 90% and 95% in the current quarter compared with the previous three months.

Industry executives have indicated that the memory chip shortage could persist through 2027.

Strategic acquisitions and restructuring reshape portfolio

Sony has continued to expand its entertainment footprint through acquisitions and partnerships.

Its music division recently formed an investment partnership with Singapore’s sovereign wealth fund GIC to acquire music catalogs across multiple genres.

In December, Sony agreed to acquire an additional stake in Peanuts Holdings, owner of characters including Snoopy and Charlie Brown, for approximately $460 million.

At the same time, Sony is reshaping its corporate structure to focus more heavily on entertainment content.

The company announced plans in January to form a joint venture with TCL Electronics Holdings, which will end Sony’s majority ownership in its television business.

Sony also spun off its financial services business in October.

Meanwhile, competitor Nintendo maintained its annual sales and earnings forecasts following strong quarterly results, selling 7.0 million Switch 2 consoles during the December quarter, highlighting continued competition in the gaming hardware market.

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Asian markets retreated on Thursday as investors rotated out of technology stocks amid mounting concerns over the escalating cost of artificial intelligence investment.

At the same time, precious metals markets were rocked by another sharp decline in silver prices, while geopolitical and macroeconomic developments, including renewed US-China engagement and continued weakness in bitcoin, added to fragile global market sentiment.

Asian markets slide as tech jitters intensify

Asian equities weakened sharply as investors reassessed valuations across technology companies following rising capital expenditure plans linked to artificial intelligence.

Google parent Alphabet reported solid results but projected capital expenditure of $175 billion to $185 billion this year, significantly above analysts’ expectations.

The announcement triggered volatile trading in Alphabet shares, which fell more than 6% at one point before closing 2.16% lower.

Market participants have increasingly rotated out of technology giants and into defensive sectors such as Walmart amid concerns that AI advancements could disrupt employment and corporate earnings.

The recent selloff, fueled partly by the launch of a new legal tool from Anthropic’s Claude large language model, has erased approximately $830 billion in market value since January 28.

Disappointing results from Advanced Micro Devices also weighed on sentiment, with the chipmaker’s shares plunging 17% in the previous session.

Regionally, MSCI’s broad Asia-Pacific index excluding Japan fell 1.84%, dragged by a 3.5% drop in South Korea’s KOSPI.

Taiwanese shares declined 1.5, although the financial and real estate sectors showed resilience.

Japan’s Nikkei slid 1%, while healthcare, real estate, and utilities stocks posted gains.

India’s Nifty 50 was down 0.52% while China’s CSI 300 was down 0.94%.

Silver plunges amid volatility and speculative unwinds

Precious metals also experienced heavy selling pressure, led by another steep decline in silver prices.

Spot silver dropped as much as 16% and was last down 15% at $75.11 per ounce, while futures in New York fell more than 11%.

The metal had surged nearly 146% during 2025 before collapsing nearly 30% last week.

Analysts attributed the volatility to speculative flows and leveraged positioning rather than physical demand.

Goldman Sachs said, “As prices fell, dealer hedging flipped from buying into strength to selling into weakness, investor stop-outs were triggered, and losses cascaded through the system.”

Gold prices also retreated, slipping more than 2.6% to around $4,834 per ounce.

Goldman noted that tighter liquidity conditions in London markets amplified silver’s correction, while Western investor flows were seen as a primary driver of recent volatility.

Xi reiterates Taiwan stance in call with Trump

Geopolitical developments also captured investor attention following US President Donald Trump’s call with Chinese President Xi Jinping.

Trump described the discussion as “an excellent” conversation and emphasized strong commercial ties between the two countries, including China’s purchase of American agricultural goods and energy products.

Beijing’s statement, however, emphasized Taiwan as “the most important issue” in bilateral relations and urged the US to “handle the issue of arms sales to Taiwan with prudence.”

Analysts suggested the call reflected a pragmatic approach to economic relations.

Negotiations could include a potential agreement covering up to 500 Boeing aircraft during Trump’s expected visit to Beijing in April.

Analysts also suggested the US may consider removing remaining fentanyl-related tariffs as part of broader negotiations.

Bitcoin signals structural weakness amid falling demand

Bitcoin also remained under pressure, falling to around $70,000 as on-chain data indicated deepening structural weakness.

CryptoQuant’s weekly report showed its Bull Score Index falling to zero, suggesting shrinking buyer participation and tightening liquidity.

Glassnode data highlighted weak spot trading volumes and reduced market demand.

Institutional flows have reversed sharply, with US spot bitcoin exchange-traded funds shifting from net accumulators last year to net sellers, creating a significant demand gap.

Stablecoin growth has also stalled, with USDT market capitalization turning negative for the first time since 2023.

Bitcoin continues to trade below its 365-day moving average, with major support seen between $70,000 and $60,000.

Prediction markets suggest investors expect no immediate Federal Reserve policy shift, limiting liquidity relief.

Trading firm QCP Capital noted, “Crypto remains volatile.”

The firm added, “In macro, the shutdown overhang has faded, but the key takeaway is how quickly fiscal standoffs can return.

Homeland Security funding was only extended through Feb. 13, keeping another deadline risk in play.”

Market participants remain cautious, with analysts pointing to bitcoin’s 200-week exponential moving average near $68,000 as a potential support level amid rising liquidation volumes exceeding $800 million.

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China’s electric vehicle market showed clear signs of strain at the start of the year, with January sales highlighting weaker domestic demand and intensifying competition.

BYD, the country’s largest electric carmaker, recorded its lowest monthly electric passenger car sales in nearly two years, adding to concerns about how quickly China’s EV growth is slowing.

Sales lose momentum after strong run

BYD sold 83,249 battery electric passenger cars in January, out of total vehicle sales of 205,518 units, including plug-in hybrids.

That marked the weakest monthly battery electric performance since February 2024, when the company sold 121,748 vehicles.

Exports also cooled, slipping to 100,482 vehicles from 133,172 in December.

The slowdown followed a period of rapid expansion.

BYD last year sold 4.56 million new energy vehicles, and in the previous year, overtook Tesla to become the world’s largest seller of battery-powered electric cars, delivering 2.26 million units, nearly 28% more than a year earlier.

By the middle of 2024, new energy vehicles accounted for more than half of all new passenger car sales in China.

Policy shift weighs on demand

January also marked a turning point for government support.

From Jan. 1, China reinstated a 5% purchase tax on new energy vehicles, ending an exemption from the full 10% vehicle purchase tax that had been in place for over a decade.

The timing complicates the interpretation of the data, as economic and business figures early in the year are often volatile due to the Lunar New Year falling on different dates.

Still, analysts warn that policy changes could lead consumers to delay purchases, while automakers become more selective about launching new models.

Competition intensifies across brands

BYD’s softer January performance came amid a crowded and increasingly aggressive market.

Several rivals, however, posted strong year-on-year gains.

Aito, whose vehicles use Huawei’s operating system, delivered more than 40,000 vehicles in January, up over 80% from a year earlier.

Leapmotor and Nio also reported year-on-year increases, delivering 32,059 and 27,182 vehicles, respectively.

Smartphone maker Xiaomi recorded more than 39,000 electric car deliveries in January, higher than a year earlier but down from over 50,000 in December, ahead of a planned upgrade to its SU7 sedan in April.

Xpeng reported 20,011 deliveries last month, well below its 2025 monthly average of more than 35,000 vehicles. Li Auto deliveries also declined to 27,668 units.

Pressure on BYD has also increased from Geely, which has moved into second place in China’s electric car market.

In January, Geely sold more than 270,000 vehicles, including its Galaxy and Zeekr electric brands and exported models, with overseas shipments exceeding 60,000 units.

Geely expects its overall new energy vehicle sales to rise to 2.22 million cars in 2026, representing 32% year-on-year growth.

BYD has not issued a full-year domestic sales target. Instead, it said late last month that it plans to increase overseas sales by nearly 25% this year to 1.3 million vehicles.

Broader economic stakes

The January slowdown reflects a wider cooling trend. New energy vehicle sales grew just 2.6% year on year in December, marking a third consecutive month of decelerating growth, according to China Passenger Car Association data.

That moderation matters for an economy already under pressure from a prolonged downturn in real estate, once responsible for around a quarter of gross domestic product.

While the autos sector supports about 30 million jobs, more than one-tenth of urban employment, its role in future investment is smaller.

Fitch Ratings estimates autos accounted for 3.7% of fixed asset investment last year, compared with 23% for real estate.

China’s top leaders are expected to outline economic and policy priorities at an annual parliamentary meeting in March.

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Precious metals experienced a sharp decline in price on Thursday, with both gold and silver falling amidst a broad market sell-off.

This pressure was driven by the dollar’s rise to almost a two-week high and indications of a relaxation in US-China trade tensions.

Silver lost 10% since its last close as prices plunged below $74 per ounce earlier on Thursday. 

Meanwhile, gold, which rebounded above $5,100 per ounce on Wednesday, also fell sharply below $4,900 per ounce. 

“Dollar-denominated precious metals, including silver lose ground amid a stronger US Dollar (USD), fueled by hawkish signals from the Federal Reserve (Fed) and expectations of a slower pace of US rate cuts,” Akhtar Faruqui, editor at FXStreet, said in a report. 

On Thursday, the dollar index climbed to its highest point in nearly two weeks. This strength in the greenback increased the cost of dollar-denominated gold for investors holding other currencies.

At the time of writing, the COMEX gold contract was at $4,912.96 per ounce, down 0.8%, while silver prices were 8.6% lower at $76.970 per ounce. 

Fed hawkish tone

Federal Reserve Governor Lisa Cook emphasised that she would not support another interest rate cut until there is more definite proof of easing inflation. 

She highlighted that the stagnation in disinflation is a greater concern than any softness in the labor market.

Kevin Warsh’s nomination for Fed chair was also a factor for investors, who noted his inclination towards a reduced balance sheet and a more cautious stance on lowering interest rates.

Following the Fed’s decision to pause rate hikes in January and the nomination of Warsh, market expectations for a rate cut have diminished. 

According to the CME FedWatch tool, financial markets are now pricing in a nearly 46% chance of a rate reduction at the June policy meeting.

The sharp decline in precious metal prices is expected by analysts to be followed by continued volatility. 

“We will maintain higher volatility environments than we had historically, but not what we’ve had over the last few days unless we run up another spec bubble,” said Niklas Westermark, head of EMEA commodities trading at BofA.

Downside potential seen

So far, gold and silver prices have been very volatile since the beginning of the week.

Prices rebounded sharply from Friday and Monday’s losses, but plunged again on Thursday. 

Both metals may fall further as last week’s record high could have been the peak, according to Mike McGlone, senior market strategist at Bloomberg Intelligence.

While a surge to $6,000 an ounce for gold is not entirely dismissed, McGlone considers a test of $4,000 an ounce support as a more probable scenario. 

Furthermore, he anticipates a potential drop in silver prices, possibly as low as $50 an ounce.

“Gold and silver going parabolic in January have the earmarks of 2026 being a down year as part of a peaking process,” he said in the note.

Momentum could carry the store of value as high as $6,000 an ounce, but normal reversion points back toward $4,000.

McGlone suggests that while further advances in equity markets could pressure gold prices lower, gold may relatively outperform in the event of a broad market downturn, even if its price is already subdued.

He added that the gold/silver ratio is unlikely to remain below 50. The recent sharp drop in silver on Friday and Monday has brought the ratio back towards its historical average, currently sitting at 56.6 points.

This year’s $121.65 high may be revisited, but reversion toward $50 appears as a normal path for the commodity known as the ‘devil’s metal,’ due to its volatility. 

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Yum! Brands announced Wednesday that it will close approximately 250 underperforming Pizza Hut locations across the United States during the first half of 2026.

The move comes as the parent company, which also oversees KFC and Taco Bell, continues a formal strategic review of the struggling pizza chain that could potentially lead to a sale of the brand.

Strategic downsizing under the Hut Forward initiative

The planned closures represent roughly 3% of Pizza Hut’s domestic footprint.

During an earnings call on Feb. 4, Yum! Brands Chief Financial Officer Ranjith Roy characterized the decision as a necessary step within the “Hut Forward” strategy, which focuses on technology modernization and vibrant marketing.

“The 250 stores that we mentioned is a very small portion of the 20,000-unit estate that Pizza Hut has globally,” Roy said during the earnings call.

“And it is the right answer for the brand as we move through the strategic review.”

Pizza Hut reports ninth consecutive quarter of declining sales

The brand continues to face significant headwinds in the American market, reporting a 3% drop in US same-store sales for the fourth quarter.

This marks the ninth consecutive quarter of declining sales for the chain. Internationally, the same store sales grew by 1% during the quarter.

Despite attempts to capture budget-conscious consumers with a new $5 value menu, the efforts have failed to gain meaningful traction against aggressive competitors like Domino’s Pizza.

Yum! Brands CEO Chris Turner suggested the brand may need a fresh start under different ownership to find its footing.

“The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands,” Turner said in a news release.

Divergent performance across the yum portfolio

The struggles at Pizza Hut stand in stark contrast to the robust performance of its sister brands.

Taco Bell remains a top performer, with same-store sales surging 7% last quarter.

The Mexican-inspired chain has successfully attracted a broad demographic, including high-income households and younger diners, through consistent menu innovation.

KFC also reported a modest recovery with a 1% increase in same-store sales.

The chicken giant has recently integrated executives from Taco Bell to spearhead menu updates as it attempts to reclaim market share from competitors like Chick-fil-A and Raising Cane’s.

Broader industry contraction in the new year

Pizza Hut is not alone in its retreat.

Only a month into 2026, several major fast-food and fast-casual players have announced downsizing measures to prioritize high-performing locations.

Noodles & Company recently confirmed plans to shutter up to 35 restaurants this year, while both Red Robin and Wendy’s are currently evaluating underperforming sites for potential closure.

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ArcelorMittal closed the final quarter of 2025 with results that exceeded market expectations, reinforcing signs of a recovery taking shape across Europe’s steel industry.

The Luxembourg-headquartered group reported stronger core profit as steadier demand outside China, combined with regulatory support in Europe to improve trading conditions.

Earnings beat underpinned by resilient performance

ArcelorMittal reported earnings before interest, taxes, depreciation, and amortisation of $1.59 billion for the fourth quarter, above analysts’ average estimate of $1.51 billion, according to data compiled by LSEG.

Full-year EBITDA reached $6.54 billion, EBITDA per tonne rose to $121 for the year, more than double the levels seen at the trough of previous cycles.

The improvement was supported by asset optimisation, diversified geographic exposure, and contributions from strategic growth projects.

Net income attributable to equity holders reached $3.15 billion in 2025, compared with $1.34 billion a year earlier, while adjusted net income came in at $2.94 billion.

Europe regains strategic importance

Europe has moved back into focus as a core earnings driver, with ArcelorMittal aiming to progressively regain market share at its domestic mills.

The company expects apparent steel demand excluding China to grow by 2% in 2026, with European operations positioned to benefit as imports ease and utilisation rates recover.

Years of pressure from low-cost imports had weighed on margins and output across the region.

Management has indicated that lower imports should translate into higher capacity utilisation, restoring profitability and more sustainable returns on capital for European producers.

Trade measures reset the playing field

European steelmakers have broadly welcomed recent initiatives from the European Union aimed at protecting domestic manufacturing.

Central to this shift is the Carbon Border Adjustment Mechanism, which took effect on January 1 and applies a levy to carbon-intensive goods entering the bloc.

This has been reinforced with a new tariff-rate quota tools proposed by the European Commission, which are expected to further curb imports over time.

Together, these measures are improving visibility for European steelmakers and encouraging a gradual recovery in output.

Cash flow and investment support recovery

Beyond Europe, ArcelorMittal’s results were supported by strong cash generation and progress on strategic investments.

Over the past 12 months, the group generated $1.9 billion in investable cash flow, broadly in line with the previous year.

In 2025, it invested $1.1 billion in strategic capital expenditure, returned $0.7 billion to shareholders, and allocated $0.2 billion to mergers and acquisitions.

Strategic projects contributed $0.7 billion of additional EBITDA during the year, including record iron ore shipments from Liberia, expansion of renewables capacity in India, and the consolidation of Calvert operations in the US from June 2025.

Recently completed and ongoing projects are expected to add a further $1.6 billion of EBITDA potential, with $0.7 billion anticipated in 2026 and $0.9 billion from 2027 onward.

The company ended the year with net debt of $7.9 billion and total liquidity of $11.0 billion.

Both Moody’s and S&P upgraded ArcelorMittal’s credit ratings in 2025.

As demand outside China strengthens and EU trade protections take hold, ArcelorMittal expects steel production and shipments to increase across all regions in 2026.

Capital expenditure is projected at $4.5 billion to $5.0 billion as the group positions itself to benefit from infrastructure spending, the energy transition, and rising demand linked to defence and data-centre capacity.

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Vodafone share price remains in a bull market as Margherita Della Valle’s turnaround strategy starts to pay off. VOD jumped to a high of 116p this week, up by over 110% from its lowest level in 2024. This rally means that it has done better than other telecom companies in the region.

Vodafone launches buyback as the German business grows

In a report today, Feb. 5, Vodafone said that its German service revenue continued growing in the last quarter. It rose by 2% to €2.72 billion, continuing a trajectory that started earlier last year. This growth was offset by the weakness in its other revenue, which moved to €366 million from the previous €384 million. 

The UK business also continued doing well, with the service revenue rising to €1.9 billion. This growth was largely because of its Three merger, which made it a top carrier in the industry. 

Other regions, like Africa and the rest of Europe, continued the recovery. As a result, its total revenue from €9.8 billion to over €10.4 billion. 

There were other bright spots in its business, including its Kenyan business, where its M-Pesa revenue jumped by 24.6% to over €133 million. This growth will likely continue once Vodacom completes the acquisition of 20% stake in Safaricom from the Kenyan government. 

Vodafone, through Vodacom, will own 55% of Safaricom, giving it more access to M-Pesa, one of the biggest fintech players in Africa. Safaricom has also become the biggest data company in Kenya and has no major competitor. 

Vodafone’s profitability also did well, with the EBITDAaL rising by 2.3% to €2.8 billion. It has now completed its €3.5 billion share repurchase program and is starting a new €500 million.

Vodafone has been implementing its turnaround strategy in the past few years. As part of this approach, it exited some key countries like Spain and Italy. It sold its Spanish business to Zegona and its Italian business to Swisscom in a €8 billion deal. 

It did that to modernize its operations and focus on the most profitable markets. At the same time, it acquired Three, in a deal aimed at boosting its market share in the UK.

Vodafone share price technical analysis 

The weekly chart shows that the VOD stock price has rebounded in the past few years. It has crossed the important resistance level at 105p, the upper side of the cup-and-handle pattern. It was also along the 61.8% Fibonacci Retracement level.

The stock’s Relative Strength Index (RSI) has jumped to the overbought level at 85. Also, the Average Directional Index (ADX) has continued rising, a sign that the uptrend is strengthening.

Therefore, the most likely Vodafone stock price forecast is bullish, with the next key level being at 120p, the 78.6% retracement level. A move above that price will point to more gains, potentially to 138p, its highest level in January 2018, which is 20% above the current level.

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