By Foo Yun Chee

BRUSSELS (Reuters) – Alphabet (NASDAQ:GOOGL)’s Google should face additional EU investigations into its compliance with landmark European Union rules aimed at reining in Big Tech’s power, rival internet search engine DuckDuckGo said on Wednesday.

Under the EU’s Digital Markets Act adopted in 2022, Google and six other tech companies are required to make it easier for users to switch to rival services and banned from favouring their products on their platforms, among other obligations.

The world’s most popular internet search engine is already the target of two DMA investigations related to its app store Google Play rules and whether it discriminates against third-party services on Google search results.

Privacy-focused DuckDuckGo, which had a global market share of 0.54% in January this year, according to research company Statista, urged the European Commission to open three additional investigations into Google’s alleged non-compliance with other DMA requirements.

“The DMA has yet to achieve its full potential, the search market in the EU has seen little movement, and we believe launching formal investigations is the only way to force Google into compliance,” Kamyl Bazbaz, DuckDuckGo’s vice-president for communications, wrote in a blogpost.

Google has said it expects to continue its compliance solutions within the framework of the DMA, citing its continued efforts to improve contestability and fairness in digital markets.

Bazbaz said one investigation should target Google’s proposal to license anonymised search data to rivals directed at European users, saying the method was overbroad and of little use to competitors.

“Google is trying to avoid its legal obligation in the name of privacy, which is ironic coming from the Internet’s biggest tracker,” Bazbaz said.

He said Google should also be investigated for allegedly failing to comply with the DMA obligations to allow users to easily switch to rival search engines.

DMA breaches can cost companies as much as 10% of their global annual turnover.

Investing.com — Target Corporation (NYSE:TGT) shares tumbled more than 21% premarket Wednesday after the retailer reported third-quarter earnings that fell well short of analyst expectations and provided disappointing guidance for the full year.

Target posted adjusted earnings per share of $1.85 for the third quarter, missing the analyst consensus of $2.30 by a wide margin. Revenue came in at $25.67 billion, slightly below estimates of $25.87 billion. Comparable sales inched up just 0.3% YoY, driven by a 2.4% increase in traffic but offset by lower average transaction amounts.

The company’s full-year earnings guidance also disappointed investors. Target now expects fiscal 2025 EPS of $8.30-$8.90, well below the $9.52 consensus estimate.

“We saw several strengths across the business, including a 2.4% increase in traffic, nearly 11% growth in the digital channel, and continued growth in beauty and frequency categories,” said Brian Cornell, CEO of Target. “At the same time, we encountered some unique challenges and cost pressures that impacted our bottom-line performance.”

Cornell described the operating environment in the third quarter as volatile.

The retailer’s gross margin rate declined 0.2 percentage points YoY to 27.2%, while its operating margin fell to 4.6% from 5.2% last year. Target cited higher digital fulfillment and supply chain costs due to managing higher inventory levels and new facilities coming online.

For the fourth quarter, Target projects approximately flat comparable sales and adjusted EPS of $1.85-$2.45.

Despite the weak results, Cornell expressed confidence in the company’s holiday season preparations and long-term prospects, stating, “We remain confident in the underlying strength and fundamentals of our business, and our ability to deliver on our longer-term financial goals.”

Investing.com — The recent nominations by President-elect Donald Trump, including Matt Gaetz and RFK Jr., are signaling what could be “years of chaos,” according to a note from Piper Sandler on Wednesday.

The firm’s analysts believe these appointments reflect Trump’s willingness to push congressional Republicans into difficult and potentially politically damaging positions, a strategy that could lead to significant market volatility.

Piper Sandler described the nominations as evidence of Trump’s readiness to “make congressional Republicans walk the plank.”

The firm added that these decisions signal “public policy that often won’t be friendly to financial markets.”

They note that RFK Jr.’s potential role at Health and Human Services (HHS) has already sent drug and biotech stocks into decline. However, Piper Sandler believes his confirmation is “unlikely.”

The report highlights that Trump’s controversial appointments could divide Republicans, forcing them to choose between aligning with Trump’s base or appealing to moderate voters.

The analysts said GOP senators like Susan Collins (ME) and Lisa Murkowski (AK) have already expressed reservations about some nominees.

Other Republicans, such as Thom Tillis (NC) and Bill Cassidy (LA), face re-election pressures that may influence their decisions.

The potential political fallout could extend into the 2026 midterm elections, said Pipe

Investing.com — Bernstein analysts believe Apple (NASDAQ:AAPL) stock could climb to as high as $290 per share in their bull case scenario.

The investment firm views Apple “as a quality compounder, with mid-single digit revenue growth, improving margins, disciplined capital return, and double-digit earnings per share (EPS) growth.”

“Given its negative cash conversion cycle, the stock is less expensive than it appears,” analysts led by Toni Sacconaghi added. “Investors have fared well by maintaining AAPL as a core holding, and adding to positions on pullbacks.”

Bernstein highlights Apple’s unique position in the market with over 2.3 billion devices and nearly one billion “unique, demographically attractive users.”

Moreover, Sacconaghi and his team see the iPhone maker as a beneficiary of AI advancements in two major ways.

Firstly, an accelerated replacement cycle for Apple products is anticipated, likely around the fiscal year 2026. Secondly, Bernstein points out increased revenue opportunities for Apple, driven by the distribution and integration of large language models (LLMs) and third-party applications.

“Encouragingly, given its position as a channel/platform, Apple’s capex has remained low. A key question is whether AI could structurally alter iPhone’s replacement cycle,” analysts note.

They also observed that Apple stock has a distinct seasonal trading pattern, and while the iPhone 16 cycle might be tepid and could disappoint, the firm advises investors to buy the stock if it drops to $200 or below, particularly during the February to April timeframe.

Bernstein’s bull case for the stock implies Apple reaching $9 in EPS by the fiscal year 2026, which could value the stock at $290 per share.

On the other hand, the firm also acknowledged existential risks for the company such as a shift in hardware platforms, a tariff war or political escalation with China, or the emergence of a super app, while expressing less concern about potential remedies from the DOJ’s antitrust case against Google (NASDAQ:GOOGL).

Investing.com — China’s Singles’ Day smartphone sales dropped 9% year-on-year during the two-week sales period, reflecting muted consumer enthusiasm amid economic challenges, as per data from Counterpoint Research. 

While the overall market declined, the performance of individual brands varied, with Apple (NASDAQ:AAPL) posting a sharp year-on-year drop, while Huawei registered a 7% growth.

The annual shopping festival, which spans Weeks 44-45, saw Chinese smartphone brands, except Huawei, releasing flagship models ahead of the sales period to drive interest. 

This contrasted with last year, when only Xiaomi (OTC:XIACF) launched its flagships early. However, the flood of new devices also cannibalized sales of older models, particularly impacting brands like Apple.

Apple faced a double-digit decline in sales compared to the same period in 2023. Despite the iPhone 16 Pro and iPhone 16 Pro Max being the best-selling models during the festival, Apple struggled to compete with a wave of flagship launches from domestic rivals, many of which were aggressively priced and backed by promotions. 

The heightened competition from Huawei, OPPO, and vivo further compounded Apple’s challenges.

Huawei, on the other hand, recorded the strongest growth among major brands, with a 7% year-on-year increase. 

The company capitalized on price cuts for its Pura 70 and Mate 60 series, coupled with strong demand for the newly launched Nova 13 series powered by its 5G Kirin chipset. 

Other domestic brands also fared well. OPPO, excluding its OnePlus sub-brand, saw a 6% year-on-year increase, driven by its affordable A series, Reno 12, and the high-end Find X8 series. 

Similarly, vivo’s sales rose 5% year-on-year, boosted by strong performances from its budget-friendly Y series and the newly introduced X200 lineup.

Not all brands benefited from the festival, however. Xiaomi posted a 6% decline in sales year-on-year, despite a strong debut for its new Xiaomi 15 series. 

Meanwhile, Honor saw a 15% drop, attributed to intense market competition and a slower ramp-up for its Magic 7 series, which launched later in the period.

Investing.com– U.S. stock index futures rose Wednesday, tracking a largely positive session on Wall Street as technology stocks advanced ahead of earnings from market darling Nvidia.

At 05:45 ET (10:45 GMT), Dow Jones Futures rose 70 points, or 0.2%, S&P 500 Futures gained 5 points, or 0.1%, and Nasdaq 100 Futures climbed 15 points, or 0.1%. 

Positive earnings from retail giant Walmart (NYSE:WMT) helped lift sentiment on Tuesday, with shares of the supermarket operator hitting a record high after it raised its annual guidance. 

Nvidia earnings in spotlight  

Nvidia (NASDAQ:NVDA) is set to release its quarterly earnings after the close, and the results from most valuable listed company in the world will be carefully studied as it is considered as a bellwether for artificial intelligence demand. 

These numbers could well become a gauge for investors’ appetite for tech stocks and sentiment for equities broadly, given its chips are widely seen as the gold standard in the AI-space, and demand for all things to do with artificial intelligence has driven much of this year’s stock market gains.

Technology stocks were mostly upbeat in anticipation of a strong quarterly print from the firm, which has nearly tripled in value this year on an AI-fueled boom.

Earnings are also due from retailers Target (NYSE:TGT) and TJX Companies (NYSE:TJX) ahead of the opening bell.

Among other stocks, Comcast (NASDAQ:CMCSA) rose premarket after The Wall Street Journal reported the firm was close to approving a $7 billion spinoff of its cable TV assets. 

Geopolitical tensions ratchet up

However, gains have been contained Wednesday by an escalation of the geopolitical tensions in eastern Europe after the US embassy in Kyiv was closed following a warning of a possible strike.

This comes a day after Ukraine used US missiles to strike Russian territory. Russian President Vladimir Putin also lowered the threshold for a nuclear strike, and this threatens to drag the West further into the Ukraine war.

Fed speakers in focus

Back in the US, investors were now watching for just what Trump’s policies and cabinet picks will entail for the economy, amid some concerns that his policies will spur a long term pick-up in inflation.

Still, investors largely maintained bets that interest rates will fall in the near-term, with traders pricing in a 60.6% chance for a 25 basis point cut by the Federal Reserve in December, CME Fedwatch showed.

Investors will listen for commentary from Federal Reserve Governors Lisa Cook and Michelle Bowman, as well as Boston Fed President Susan Collins during Wednesday’s session.

Crude rises on Ukraine concerns

Crude prices edged higher Wednesday, helped by concerns about escalating hostilities in the Ukraine war potentially disrupting oil supply from Russia.

By 05:45 ET, the US crude futures (WTI) climbed 0.5% to $69.56 a barrel, while the Brent contract rose 0.3% to $73.56 a barrel.

However, gains have been contained by data from the American Petroleum Institute showing US crude oil stocks rose by 4.75 million barrels in the week ended Nov. 15, far more than the small 100,000 barrel increase expected.

If this figure is confirmed by the official data, due later in the session, it would point to a reduction in demand in the world’s largest energy market as the driving season comes to a close. 

(Ambar Warrick contributed to this article.)

Investing.com — Shares of STMicroelectronics fell on Wednesday after the company announced a delay in its long-term financial targets. 

The semiconductor manufacturer extended its ambitious goal of achieving $20 billion in revenue and a gross margin of around 50% to 2030, a shift from its previous target of 2025-2027. 

The company also introduced interim milestones for 2027-2028, reflecting a more cautious outlook amid ongoing industry challenges.

STMicroelectronics, widely regarded for its role in automotive and industrial semiconductors, now expects to reach approximately $18 billion in revenue with a gross margin between 44% and 46% by 2027-2028. 

This adjustment underscores the headwinds the company faces, particularly in wide bandgap semiconductors like silicon carbide (SiC), which has encountered delays in adoption this year, according to Morgan Stanley (NYSE:MS) analysts.

Management pointed to the automotive sector as the cornerstone of its growth strategy, emphasizing the transition to electric vehicles and advanced driver-assistance systems (ADAS) as key drivers. 

Additionally, STMicroelectronics highlighted the role of 300mm wafer manufacturing and new materials like SiC and gallium nitride (GaN) as critical components of its long-term roadmap.

To align with these updated targets, the company outlined plans to scale back certain manufacturing facilities, likely focusing on overseas sites, while concentrating capital expenditures on its most strategic areas. 

This cost-cutting and manufacturing “rightsizing” program is projected to deliver savings in the high triple-digit million-dollar range by 2027, supporting a target operating margin of 22%-24% by the same period.

The latest guidance marks a stark contrast from 2022, when the company projected it could achieve $20 billion in revenue by 2025-2027, fueled by growth in car electrification, IoT, and foundry services. 

At the time, management expected 10% of sales to come from wide bandgap semiconductors, 32% from 300mm wafer production, and 20% from its foundry business. Those projections also included a free cash flow margin of at least 25%, buoyed by efficiency gains from a stronger product mix and higher pricing.

“We also expect the company to not just reiterate the time-line of the cost reduction program but to even outline which manufacturing facilities may be scaled back (we assume overseas facilities only) and where capex can be focussed,” said analysts at Morgan Stanley in a note.

The company’s focus on cost management and investments aims to lay the foundation for growth beyond 2025-2026.

“We expect more details later but the intermediate guidance suggests the upcycle should be in full force by 2027/28 in our view. Given the elongation of the current,” said analysts at Barclays (LON:BARC) in a note.

Investing.com — Shares of Severn Trent  (LON:SVT) rose on Wednesday following the release of its first-half financial results for the 2024/25 fiscal year, which showcased strong revenue growth, improved profitability, and revised capital expenditure guidance. 

At 4:43 am (0943 GMT), Severn Trent was trading 3.4% higher at £2,781.

Analysts at Jefferies described the performance as a “small positive,” citing the company’s ability to deliver consistent earnings growth and investment acceleration.

The utility company reported revenues of £1.2 billion for the first half, reflecting a 4% year-on-year increase. 

Underlying profit before interest and tax surged by 17% to £298 million, driven primarily by the regulated business segment, which saw a 21% rise in profits to £295 million. 

Adjusted earnings per share climbed to 47.2p, compared to 20.5p during the same period last year.

Severn Trent also declared an interim dividend of 48.68p per share, maintaining its policy of annual increases aligned with the Consumer Prices Index including owner occupiers’ housing costs.

Net debt rose to £7.7 billion, up by about £480 million from the full-year 2023/24 figure of £7.2 billion, reflecting the company’s robust investment in infrastructure. 

Capital expenditure for the first half reached £666 million, representing a 40% year-on-year increase. 

The rise in spending was attributed to accelerated investments under the upcoming AMP8 regulatory cycle, which aims to enhance long-term resilience and performance.

Severn Trent has now revised its capex guidance for the full year, projecting spending at the top end of its £1.3 billion to £1.5 billion range. 

This marks a notable commitment to infrastructure development amid regulatory demands. 

Lower finance costs, also mentioned in the updated guidance, offer additional support to earnings stability for the year.

Jefferies analysts noted the company’s delivery on key targets, particularly its £420 million cumulative rewards under AMP7, which implies a nominal return on regulated equity (RoRE) exceeding 13%. 

This, coupled with Severn Trent’s ability to maintain stable dividends and align its spending with strategic goals, bolstered investor confidence.

“We are concerned that we see minimal movement from Ofwat and our bearish stance may be one factor that crystallises a better outcome, although there could be a CMA referral if companies feel the regulatory challenge is too tough,” said analysts at Barclays (LON:BARC) in a note.

BERLIN/WOLFSBURG (Reuters) – Workers are prepared to make concessions worth 1.5 billion euros ($1.58 billion) in ongoing negotiations with Volkswagen (ETR:VOWG_p) over cost cuts, warning of a far-reaching conflict if the carmaker insists on plant closures.

Thorsten Groeger, who leads negotiations for the IG Metall union, said otherwise Volkswagen workers would enter a conflict with the company “the likes of which this republic has not seen for decades”.

Strikes at the majority of the carmaker’s German sites, which are at the heart of the conflict, are possible from Dec. 1.

The comments come a day ahead of a third round of crunch talks between workers and management over pay cuts and factory shutdowns in what marks the fiercest dispute in years at Europe’s largest carmaker.

Volkswagen, under massive pressure by high costs in Germany and cheaper Asian rivals on the continent, has said deep cuts at its brand were needed to make it fit for the future, asking for a 10% pay cut and not ruling out plant closures.

The concessions by IG Metall and Volkswagen’s works council, led by Daniela Cavallo, are part of a package of proposal laid out on Wednesday, hoping for a less drastic outcome of talks with forced layoffs.

“The problems that we have are not created by the workforce and will not be solved by only looking at labour costs. Yet we are ready to make a contribution with what we have laid out here today,” Groeger said.

($1 = 0.9470 euros)

ROME (Reuters) – Private equity firm Cinven secured a conditional approval from Italian authorities over its plan to sell a 15% stake in diagnostic service provider Synlab to laboratory operator Labcorp, a government document sent to parliament showed.

Golden powers legislation requires Italian government approval for any decision which results in changes in the ownership, control or availability of strategic assets in the country.

Italy’s cabinet authorised the transaction on Nov. 12 with some unspecified conditions, according to the document.

Announced in September, the deal is worth some 150 million euros ($158.48 million).

($1 = 0.9465 euros)