Vladimir Zakharov/iStock via Getty Images By Michiel Tukker , Senior UK & Eurozone Rates Strategist | Padhraic Garvey, CFA , Regional Head of Research, Americas New record highs for sterling rates, but don’t just blame politics Sterling rates are reaching new record highs, but even though politics are easily blamed, external factors are the more obvious culprit. The 10Y gilt yield touched 5.1% dur...
Vladimir Zakharov/iStock via Getty Images By Michiel Tukker , Senior UK & Eurozone Rates Strategist | Padhraic Garvey, CFA , Regional Head of Research, Americas New record highs for sterling rates, but don’t just blame politics Sterling rates are reaching new record highs, but even though politics are easily blamed, external factors are the more obvious culprit. The 10Y gilt yield touched 5.1% during intraday trading, a level last seen in 2008. Gilts are facing a double-whammy, being both sensitive to inflation through higher oil prices and being relatively vulnerable to spillovers from US markets. Already since the start of the crisis, markets have had a more hawkish take on the Bank of England’s reaction function to higher oil prices. It is more hawkish than for the Fed or the European Central Bank (ECB). Secondly, gilts’ tight correlation with USTs is pushing rates higher on the back of US optimism. With equities in the US hitting new records, the 10Y UST yield has now drifted above 4.4% and seems to find little resistance. A sharp risk-off episode could push yields down again, but so far market sentiment seems very resilient. US macro data is also sturdy, which means that real rates are not showing any signs of economic weakness. Gilt yields can therefore rise even higher from here, with politics posing the risk of turning the situation into a triple-whammy. So far, however, we’re not seeing clear signs of investors turning more wary of the UK because of the political turmoil. For instance, the spread between gilt yields and swaps, which is often seen as a gauge of gilt market stress, has been relatively stable. Also, our FX strategists point out that the currency is not showing any weakness when accounting for rate dynamics. This could change, of course, but with eyes still fixated on the Middle East conflict, politics is likely to remain in the passenger seat. The US backdrop has come off extremes, but the problems that drove us there remain Key US market rate...
When I became pregnant, all I wanted was a healthy baby. Discovering I would be having a son gave me a new perspective on the narratives around masculinity At the 20-week ultrasound, because of the baby’s position, my partner and I didn’t get any proper pictures to take home. Instead, the sonographer printed us a shot of the genitals. So, there it was, in black and white: I was having a boy. Growi...
When I became pregnant, all I wanted was a healthy baby. Discovering I would be having a son gave me a new perspective on the narratives around masculinity At the 20-week ultrasound, because of the baby’s position, my partner and I didn’t get any proper pictures to take home. Instead, the sonographer printed us a shot of the genitals. So, there it was, in black and white: I was having a boy. Growing up, boys were a slightly alien concept. Our household was female-heavy – a mum, two sisters, a dad with no interest in conventional “boy stuff”. We did have two male cats, neutered, extremely fluffy and ironically named Mr White and Mr Orange by my dad (“Reservoir Cats”). Continue reading...
Four paintings linked to one of the world’s most audacious financial frauds stood on easels at Malaysia’s anti-corruption headquarters on Wednesday: a Picasso, a Miro, a Balthus and an Ultrillo – all allegedly bought with money stolen from the Malaysian people. The unveiling of the works at the Malaysian Anti-Corruption Commission’s (MACC) headquarters in Putrajaya marked the first public showing ...
Four paintings linked to one of the world’s most audacious financial frauds stood on easels at Malaysia’s anti-corruption headquarters on Wednesday: a Picasso, a Miro, a Balthus and an Ultrillo – all allegedly bought with money stolen from the Malaysian people. The unveiling of the works at the Malaysian Anti-Corruption Commission’s (MACC) headquarters in Putrajaya marked the first public showing of artworks recovered from the multibillion-dollar Malaysia Development Berhad (1MDB) scandal since...
Getty Images Shares of Prudential Financial ( PRU ) have been a poor performer over the past year, losing about 2% of their value. The stock has largely missed out on the equity market rally and has been a meaningful underperformer in 2026 as investors have grappled with problems at its large Japanese unit that have forced it to suspend new sales. Meanwhile, the life insurer sector has faced scrut...
Getty Images Shares of Prudential Financial ( PRU ) have been a poor performer over the past year, losing about 2% of their value. The stock has largely missed out on the equity market rally and has been a meaningful underperformer in 2026 as investors have grappled with problems at its large Japanese unit that have forced it to suspend new sales. Meanwhile, the life insurer sector has faced scrutiny over potential private credit losses. I last covered shares in February , rating the stock a “ B uy,” but frankly, I underestimated the ultimate cost of its problems in Japan. As a result, shares are down 5% since then, while the market has added 5%. With updated financials, now is a good time to revisit PRU to determine if enough bad news is in the price. Seeking Alpha In the company 's first quarter, Prudential Financial earned $3.61 per share, which beat estimates by $0.50. Despite the troubles in Japan, EPS was up 10% from last year, as higher market levels led to increased investment management earnings, and life insurance underwriting improved markedly. PRU delivered a solid 14.6% operating return on equity, 80bps better than last year. Frankly, aside from the Japan issue, the company is performing at a high level. Starting with this issue, in April , the company announced it would extend the 90-day sales suspension in Japan for another 180 days. The company is overhauling its government and sales practices, which led some sales representatives to defraud customers, mislead them into inappropriate strategies, or otherwise mishandle their funds. The length of the sales suspension speaks to the magnitude of the cultural and bureaucratic overhaul needed, as well as the work it will take to rebuild customer trust, which is essential in financial services and particularly culturally sensitive in Japan. This suspension is set to linger longer than I initially expected. PRU has set up a $70 million fund to reimburse customers, and it expects a ~$550 million pre-tax incom...
Earnings Call Insights: Navitas Semiconductor (NVTS) Q1 2026 Management View "I'm pleased to report that Q1 is reflecting another quarter of solid progress and growing momentum on our transformation to Navitas 2.0, highlighted by the company's return to top line sequential growth." (CEO, President & Director Chris Allexandre) "We have meaningfully reaccelerated our pivot away from the company's hi...
Earnings Call Insights: Navitas Semiconductor (NVTS) Q1 2026 Management View "I'm pleased to report that Q1 is reflecting another quarter of solid progress and growing momentum on our transformation to Navitas 2.0, highlighted by the company's return to top line sequential growth." (CEO, President & Director Chris Allexandre) "We have meaningfully reaccelerated our pivot away from the company's historical mobile and low-end consumer business to focus the entire organization on high-power markets" and the company is "singularly focused on 4 high-growth, high-value market segments, AI data center, energy and grid infrastructure, performance computing and industrial electrification." (CEO Allexandre) "We achieved the expected return to growth in Q1 with revenue increasing 18% sequentially" and "revenue from our high-power business grew 25% year-over-year." (CEO Allexandre) "Mobile contribution will continue to diminish this quarter and become insignificant by year-end." (CEO Allexandre) "We completed our leadership transformation with the appointment of our new CFO, Tonya Stevens, who formally joined the team in late March." (CEO Allexandre) "Revenue in the first quarter of 2026 exceeded the high end of guidance, increasing 18% sequentially to $8.6 million on a GAAP basis." (SVP, CFO & Treasurer Tonya Stevens) Outlook "We expect continued sequential growth with revenue increasing to $10.0 million, plus or minus $0.5 million." (CFO Stevens) "Non-GAAP gross margin is expected to be 39.25%, plus or minus 75 basis points" and "Non-GAAP operating expenses are expected to remain approximately flat sequentially between $14.5 million to $15.5 million." (CFO Stevens) "We anticipate continued sequential top line growth and gradual gross margin expansion throughout '26." (CEO Allexandre) Compared with the prior quarter’s guidance for Q1 revenue of "between $8 million and $8.5 million" and gross margin of "38.7%, plus or minus 25 basis points," Q1 delivered $8.6 million of revenue...
Asian equities rose on Wednesday, tracking Wall Street overnight gains f ollowing remarks from U.S. President Donald Trump regarding a pause in military operations and progress toward a "final agreement" with Tehran. Technology shares were the main driver of regional gains. Gold prices climbed above $4,600 an ounce. WTI crude futures dropped to about $100 per barrel, declining for the second strai...
Asian equities rose on Wednesday, tracking Wall Street overnight gains f ollowing remarks from U.S. President Donald Trump regarding a pause in military operations and progress toward a "final agreement" with Tehran. Technology shares were the main driver of regional gains. Gold prices climbed above $4,600 an ounce. WTI crude futures dropped to about $100 per barrel, declining for the second straight session. The benchmark KOSPI soared more than 5% to around 7,300, extending its record-setting run. South Korea’s annual inflation rate climbed to 2.6% in April 2026, matching market forecasts and accelerating from 2.2% in the previous month. Japan's ( NKY:IND ) market closed. The Japanese yen rose toward 157.5 per dollar, snapping a three-day losing streak. China's ( SHCOMP ) rose 1.18%, and the offshore yuan traded around 6.81 per dollar, approaching its strongest level since March 2023. On the domestic front, a private survey showed that the RatingDog China General Services PMI increased to 52.6 in April 2026 from March’s three-month low of 52.1, surpassing market forecasts of 52. Hong Kong ( HSI ) rose 0.91% to 26,085 as investors tracked gains in global equities. The S&P Global Hong Kong SAR PMI fell to 48.6 in April 2026 from 49.3 in March, marking its lowest level since June 2025. India ( SENSEX ) rose 0.40%, rising about 0.4% to 77,314, recovering from prior losses as oil prices eased. The Indian rupee The HSBC India Services PMI was revised higher to 58.8 in April 2026 from the preliminary estimate of 57.9 and after March’s 13-month low of 57.5. India’s HSBC Composite PMI registered 58.2 in April 2026. Australia ( AS51 ) rose 1.10% to 8,740 in morning trade, snapping two sessions . The Australian dollar climbed to above $0.72, hitting a fresh four-year high after the Reserve Bank delivered a widely expected 25 bp hike to 4.35%. Australia’s Ai Group Industry Index for manufacturing edged up 0.7 points to -27.9 in April 2026. The Ai Group Industry Index for Austr...
Vestas Wind Systems A/S beat analysts estimates for profits in the first quarter of the year, reflecting increasing orders for wind turbines. The Danish turbine-maker sees the margin for full-year earnings before interest and taxes in the range of 6% to 8%, it said in a statement on Wednesday. The company’s order backlog reached a new high of €36.3 billion ($42.6 billion) through strong offshore o...
Vestas Wind Systems A/S beat analysts estimates for profits in the first quarter of the year, reflecting increasing orders for wind turbines. The Danish turbine-maker sees the margin for full-year earnings before interest and taxes in the range of 6% to 8%, it said in a statement on Wednesday. The company’s order backlog reached a new high of €36.3 billion ($42.6 billion) through strong offshore orders in the UK and good onshore momentum more broadly. The move reflects growing confidence in the company as the broader wind industry turns the page from steep losses in recent years after costs of steel and other key materials soared and it grappled with delays due to supply chain disruptions. It also signals growing demand for wind power as governments prioritize energy security and homegrown sources of energy following the war in the Middle East. “The current geopolitical uncertainty and energy crisis underline the need for affordable, secure, and sustainable energy,” Chief Executive Officer Henrik Andersen said in the statement. Vestas shares have jumped more than 10% this year after the company announced a slew of new orders for onshore wind turbines. The company saw strong orders from the UK, Germany and South Korea, taking the overall intake to 4.5 gigawatts, the company said. The company’s pipeline of development projects amounted to 26.9 gigawatts, with Asia Pacific taking the lead, following by the Americas and EMEA, the company said. Australia and the USA are the company’s largest project pipelines. President Donald Trump has been trying to thwart offshore wind development and while onshore wind has largely stayed out of his focus, the New York Times reported that 150 projects have also been delayed while being reviewed by the administration. Vestas also announced plans to return $100 million more in cash to investors after posting the positive outlook for the year. That’s the third quarterly buyback in a row. The company posted €127 million in earnings before...
Shares of Sandisk (NASDAQ: SNDK) have soared by 429% in 2026 already, fueled by the incredible demand for NAND flash storage chips from artificial intelligence (AI) data centers and edge devices capable of running AI workloads. The high-flying tech stock got another shot in the arm following the release of fiscal 2026 third-quarter results (for the three months ended April 3) on April 30. Sandisk ...
Shares of Sandisk (NASDAQ: SNDK) have soared by 429% in 2026 already, fueled by the incredible demand for NAND flash storage chips from artificial intelligence (AI) data centers and edge devices capable of running AI workloads. The high-flying tech stock got another shot in the arm following the release of fiscal 2026 third-quarter results (for the three months ended April 3) on April 30. Sandisk stock jumped 8% as it comfortably crushed Wall Street's expectations and delivered better-than-expected guidance. Even better, there is ample evidence suggesting that the red-hot growth that Sandisk has been enjoying isn't going to go away anytime soon. In fact, there is a good chance Sandisk stock will touch $4,000 in the next year, making it one of the top stocks to buy and hold right now . Let's see why that may be the case. Continue reading