Goldman Sachs double-downgrades Texas Instruments, cuts Arm despite AI tailwinds

Investing.com - Geopolitical risk will "move sideways" next year, as the U.S. pursues a de-escalation in tensions with Russia and China, according to analysts at BCA Research.

In a note, the analysts including Gertken predicted that Washington would go for a ceasefire in what they described as a "proxy war" in Ukraine, as well as a truce in recent tariff tensions with China.

However, the strategists argued that "military incidents" are still "highly likely" in East Europe and East Asia, especially in the near term.

“These incidents will only temporarily derail global stability so long as Russia and China do not try to conquer new territories,” they wrote.

Against this backdrop, BCA Research recommended investors take an “overweight” position in U.S. equities relative to global stocks, namely those from China and Europe, “until China launches a significant fiscal stimulus” push to revive a recently-sputtering economy weighed down by tepid consumer activity and a protracted property crisis.

The stimulus is seen coming potentially “in March or mid-year,” the analysts said.

They added that traders should consider being “overweight” U.S. government bonds versus high-yield corporate debt, citing the possibility that slack in the American labor market will continue to rise and “ultimately the Fed[eral Reserver] will cut [interest rates] more than currently priced.”

In currencies, they backed staying long on the Swiss franc-euro pairing and favoring developed European countries over emerging ones “until the Ukraine ceasefire gathers momentum.” A long position on the Japanese yen was supported as well, with the analysts projecting that the currency will be buoyed by Sino-Japanese tensions and Chinese pressure on Taiwan, along with possible Bank of Japan rate hikes.

Finally, the analysts said investors should “buy gold on dips and sell oil on rips.”

“The U.S.-China truce is fragile and temporary, while the risk of a region-wide war and major oil shock in the Middle East has fallen considerably,” they added.

Investing.com -- British stocks climbed further during Monday afternoon trade, while the pound strengthened against the U.S. dollar, and broader European equity markets traded in positive territory.

As of 1251 GMT, the blue-chip index FTSE 100 rose 1% and the British GBP/USD fell 0.2% against the dollar to above 1.33. 

DAX index in Germany rose 0.3%, the CAC 40 in France gained 1.02%.  

UK round up

House prices across the UK fell by 1.8% in December, matching the rate of decline seen in November, according to data released by Rightmove.

The London housing market showed more resilience than the national average, with prices in the capital dropping by a smaller margin of 1.2% during the same period. On an annual basis, London property values have remained steady, contrasting with the broader weakening trend observed in the national housing market.

TT Electronics Plc (LON:TTG) stock plunged after DBAY Advisors Limited announced it would not proceed with a takeover offer for the company.

DBAY confirmed in a regulatory filing that it "does not intend to make an offer for TT Electronics" ahead of the December 15 deadline set by the Panel on Takeovers and Mergers, effectively abandoning a potential bidding war.

In other market news, UK communications regulator Ofcom has launched investigations into BT Group PLC (LON:BT) and Three following major mobile service disruptions that occurred during summer 2025. The disruptions affected emergency calls across the United Kingdom.

The regulatory probe will examine whether the telecom companies failed to comply with requirements that mandate operators take appropriate measures to identify risks, prepare for network compromises, and mitigate adverse effects when outages occur.

Meanwhile, Porvair PLC (LON:PORV) announced Monday that its adjusted earnings per share for the year ended November 30, 2025, is expected to be marginally ahead of market expectations. The company also stated that operating profit and margin would surpass the previous year’s results.

Deutsche Bank upgraded Bridgepoint Group PLC (LON:BPTB) to Buy from Hold on Monday, while maintaining its price target at 345 pence.

The upgrade follows a significant decline in Bridgepoint shares, which have fallen 22% since the company released its first-half 2025 results on July 18. The results were described as largely in-line with expectations.

The London Metal Exchange (LME) released an update on Monday detailing its approach to position management and how it will implement the UK Financial Conduct Authority’s new commodity market position limits regime.

Hikma Pharmaceuticals PLC (LON:HIK) said that Riad Mishlawi has stepped down as Chief Executive Officer and from the company’s Board of Directors by mutual agreement.

Executive Chairman Said Darwazah, who previously served as CEO, will immediately take over all CEO responsibilities. Chief Financial Officer Khalid Nabilsi will join Hikma’s Board of Directors and assume expanded management duties to strengthen the company’s focus on executing its strategic plans.

In separate news, Britain’s Financial Reporting Council (FRC) has launched an investigation into Ernst & Young’s audit of Shell PLC (AS:SHEL) 2024 financial statements. The probe, announced Monday, will examine whether EY violated the UK’s Revised Ethical Standard regarding time limitations for audit partner rotation.

The UK’s Financial Conduct Authority (FCA) revealed plans to reform mortgage rules to help first-time buyers and self-employed individuals access the housing market more easily. The regulatory body outlined four key areas of focus, which also aim to help homeowners unlock housing wealth for retirement.

Meanwhile, Jefferies has adopted a more cautious stance on U.K. consumer stocks, citing a weaker disposable income outlook that conflicts with optimistic sales expectations and high valuations.

The broker projects disposable income growth slowing to 1.9% in fiscal 2026/27, down from 2.6% the prior year, as lower wage growth, rising unemployment and ongoing cost pressures affect households.

Jefferies also noted that consensus like-for-like sales growth for major U.K. retailers has moved above its forecast for disposable income growth for the first time since early 2023.

Investing.com -- iRobot Corporation (NASDAQ:IRBT) stock was poised to plunge approximately 70% on Monday after the consumer robotics company announced it had filed for Chapter 11 bankruptcy protection, with its secured lender and key supplier Picea set to acquire the company through a court-supervised process.

The stock, which closed at $5 on Friday, was expected to open at around $1.44 as investors reacted to news that shareholders would likely face a total loss on their investment.

In a press release, iRobot revealed it had entered into a Restructuring Support Agreement with Picea, under which the supplier will receive 100% of the equity interests in the company. The bankruptcy process is expected to be completed by February 2026, with iRobot continuing to operate in the ordinary course during the proceedings.

The company stated that the transaction would "strengthen our financial position" and "deliver continuity for our consumers, customers, and partners." iRobot emphasized that there would be no anticipated disruption to app functionality, customer programs, or product support during the restructuring.

Following court approval, iRobot will become a private company wholly owned by Picea, with its shares delisted from the Nasdaq. The company explicitly warned that holders of common stock "will not receive any equity of the reorganized Company" and "will experience a total loss and not receive recovery on their investment" if the chapter 11 plan is approved.

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Investing.com – Saudi Arabia stocks were higher after the close on Monday, as gains in the Real Estate Development, Building & Construction and Hotels & Tourism sectors led shares higher.

At the close in Saudi Arabia, the Tadawul All Share gained 0.01%.

The best performers of the session on the Tadawul All Share were Saudi Industrial Development Co. (TADAWUL:2130), which rose 6.91% or 0.80 points to trade at 12.38 at the close. Meanwhile, Raydan Co (TADAWUL:6012) added 5.42% or 1.36 points to end at 26.46 and Saudi Real Estate Co. (TADAWUL:4020) was up 4.42% or 0.57 points to 13.47 in late trade.

The worst performers of the session were Nama Chemicals Co. (TADAWUL:2210), which fell 5.09% or 1.19 points to trade at 22.19 at the close. Shatirah House Restaurant Co (TADAWUL:6016) declined 4.02% or 0.65 points to end at 15.50 and Saudi Cable Company (TADAWUL:2110) was down 3.29% or 4.40 points to 129.50.

Rising stocks outnumbered declining ones on the Saudi Arabia Stock Exchange by 168 to 150 and 21 ended unchanged.

Shares in Nama Chemicals Co. (TADAWUL:2210) fell to 5-year lows; falling 5.09% or 1.19 to 22.19.

Crude oil for February delivery was down 0.42% or 0.24 to $57.00 a barrel. Elsewhere in commodities trading, Brent oil for delivery in February fell 0.43% or 0.26 to hit $60.86 a barrel, while the February Gold Futures contract rose 1.19% or 51.30 to trade at $4,379.60 a troy ounce.

EUR/SAR was unchanged 0.11% to 4.41, while USD/SAR unchanged 0.01% to 3.75.

The US Dollar Index Futures was down 0.14% at 97.89.