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Investing.com -- 3I Infrastructure PLC (LON:3IN) released a performance update covering the period from October 2025 through late January 2026, which includes a full write-down of its DNS:NET investment after a sharp deterioration in financing conditions across the German fibre sector.

The company said it no longer expects to secure debt funding to support DNS:NET’s planned network rollout, leaving the existing asset base with effectively no equity value once company debt is taken into account.

Shares in the investment firm tumbled nearly 7% in early London trading on Monday.

The move follows the December debt restructuring at Deutsche Glasfaser, a major national fibre operator carrying around €7 billion of debt, which 3i said severely reduced financing availability across the sector.

As a result, 3i expects a £212 million write-down at the March net asset value (NAV), equivalent to roughly a 23p per share hit to NAV.

"The main trigger of this deterioration was news in December of a significant restructuring of the debt at the largest altnet rolling out fibre across Germany," 3i Infrastructure said in the update.

"Assuming no further debt can be raised to support the continuation of the roll out, we now expect that the value of the existing equity in the company is likely to be written down to zero in our next valuation of the portfolio at the March 2026 year end," it added. 

Turning to other 3i’s assets, the group said TCR secured a €100 million capex facility while its sale process remains active with strong buyer interest. 

"We expect an update in the coming months," RBC Capital Markets analysts led by Alexander Wheeler said in a note. 

Joulz also completed two bolt-on acquisitions within its European energy solutions platform that are expected to lift EBITDA by around 70%, supported by €107 million of new equity from 3i Infrastructure.

SRL, meanwhile, continued to face operational challenges previously flagged at interim results, while the remainder of the portfolio tracked broadly to plan or better, 3i said. 

3i maintained its full-year dividend target of 13.45p per share, with income and non-income cash of £53 million in line with expectations.

Net debt stood at around £500 million following partial funding of the Joulz acquisitions, with management continuing to position expected TCR disposal proceeds toward reducing the revolving credit facility and supporting future investments.

RBC analysts said the DNS:NET issues appear “unique to the German fibre sector,” while noting that "other portfolio companies are largely performing in line with or exceeding expectations."

The broker cut its price target to 430p to reflect the write-down but kept an Outperform rating, with analysts pointing out that other assets continue to generate returns close to the group’s long-term 8%–10% target range and that potential TCR disposal proceeds could still be "materially NAV accretive."

Investing.com - European stocks traded lower Monday, as a selloff in precious metals unnerved investors at the start of a week packed with corporate earnings, central bank meetings and economic data. 

At 03:05 ET (08:05 GMT), the DAX index in Germany dropped 0.4%, the CAC 40 in France slipped 0.5% and the FTSE 100 in the U.K. fell 0.6%. 

Sentiment hit as precious metals fall further  

Sentiment has been hard hit Monday by gold and silver extending their sell-off, deepening losses from Friday’s rout as the nomination of Kevin Warsh as the next Fed chair resulted in a sharp rise in the U.S. dollar, prompting investors to take profits, ending a rally that had propelled the precious metals to record highs just days earlier.

Spot gold lost just under 6% to $4,597 per ounce on Monday, having crashed nearly 10% on Friday, the steepest one-day drop in spot gold since 1983. 

Silver, which had surged alongside gold on safe haven demand and speculative inflows, also remained under pressure after last Friday’s 30% slump that saw the metal log its worst day since March 1980.

Adding to the concerns, CME announced it was raising margins on several metals contracts with effect from Monday’s market close, implying some investors are having trouble meeting margin calls and may need to dipose of liquid assets.

Intesa Sanpaolo impresses with 2025 profit

Turning back to the corporate sector, this is set to be another busy week for quarterly earnings, with around 30% of the EuroSTOXX index’s market capitalization scheduled to report results.

Earlier Monday, Intesa Sanpaolo (BIT:ISP) reported a 7.6% rise in 2025 net profit to €9.3 billion, and the Italian bank announced plans to return €8.8 billion to shareholders through dividends and buybacks, cementing its position as one of Europe’s most profitable lenders.

Swiss bank Julius Baer (SIX:BAER) reported a net profit of CHF764 million for 2025, down 25% from 2024, but slightly above a consensus expectation of CHF679 million francs.

On Wall Street, all eyes this week will be on tech majors Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), particularly as sentiment toward AI-linked shares has deteriorated following results from Microsoft (NASDAQ:MSFT), which highlighted rising costs tied to heavy AI investment and raised questions about near-term returns.

German retail sales inch higher 

Data released earlier in the session indicated that German retail sales rose 0.1% in December compared with the previous month, an improvement from the drop of 0.5% seen in the previous month.

Manufacturing activity data for January are expected for the eurozone later in the session, and are expected to show a slight improvement from the previous month while remaining in contraction territory.

Data released on Saturday showed that China’s official manufacturing PMI slipped further below the 50 mark in January, pointing to a contraction in factory activity and highlighting persistent weakness in domestic demand.

Both the European Central Bank and the Bank of England are scheduled to hold policy-setting meetings this week, and both are expected to keep interest rates unchanged.

Crude falls as risk premium retreats

Oil prices fell sharply Monday as concerns of a U.S. strike on Iran eased, after U.S. President Donald Trump said the Middle East crude producer was "seriously talking" with Washington.

Brent futures dropped 4.8% to $65.97 a barrel and U.S. West Texas Intermediate crude futures fell 5% to $61.91 a barrel.

Crude prices had risen sharply last week as markets priced in a greater risk of supply disruptions from this key region after Trump had repeatedly threatened Iran with military action over a nuclear deal and ongoing protests in the country. 

However, risks of a military strike receded after Trump’s weekend comments.

The Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, left production unchanged during a weekend meeting, as broadly expected. 

Investing.com -- J.P. Morgan downgraded Signify NV (AS:LIGHT) to “neutral” from “overweight” on Monday, citing weaker growth prospects and accelerating margin erosion after a fourth-quarter earnings miss and softer-than-expected guidance for 2026, sending shares down over 2%.

The brokerage also cut its June 2027 price target to €18.40 from €29.50, bringing it closer to the stock’s Jan. 30 closing price of €18.15. 

J.P. Morgan said the downgrade reflects a reassessment of Signify’s earnings power following a “material” miss in a seasonally strong quarter and a sharp reduction in forward estimates.

J.P. Morgan said the fourth quarter, which typically accounts for nearly one-third of full-year operating profit, fell well short of expectations. 

Signify’s organic revenue fell 5.2%, compared with J.P. Morgan’s forecast for a 1.6% decline and a consensus estimate of a 2.3% drop. 

Adjusted EBITA came in at €149 million, missing J.P. Morgan and consensus forecasts by 18% and 17%, respectively. 

The resulting adjusted EBITA margin of 10% compared with J.P. Morgan and consensus expectations of 11.7% and was down from 12.4% a year earlier.

Following the results, Signify guided for an adjusted EBITA margin of 7.5% to 8.5% in 2026, down from 8.9% in 2025 and 9.9% in 2024. 

J.P. Morgan cut its 2026 margin estimate to 7.6%, from a prior estimate of 9.5%, citing the company’s recent performance and guidance. 

The bank said the implied margin would mark the weakest level since 2015, when Signify posted a 7.3% adjusted EBITA margin.

The weaker margin outlook prompted significant reductions to earnings forecasts. J.P. Morgan lowered its adjusted earnings per share estimate for 2026 by 57% to €1.12 and cut its 2027 estimate by 36% to €1.76. Revenue estimates for 2026 and 2027 were also reduced by 4.9% and 7.2%, respectively, reflecting lower expected organic growth and foreign exchange headwinds.

J.P. Morgan pointed to intensifying competition from Chinese manufacturers as a key pressure on pricing and profitability, particularly following the introduction of U.S. import tariffs. 

The brokerage said excess supply from China has increased price erosion across markets, limiting the effectiveness of cost-saving measures. 

Signify recently announced a €180 million cost-reduction program, though J.P. Morgan noted that most of the benefits are expected to be realized in the current year and have not prevented further margin compression.

The analysts said Signify’s shares no longer appear undervalued after the estimate cuts. On revised forecasts, J.P. Morgan said the stock trades at about 11.7 times 2026 estimated EV-to-EBITA and 16 times adjusted price-to-earnings, levels it said do not look compelling given the risk of further earnings pressure. 

While the company maintained its dividend, it paused its share buyback program following the profit warning.

J.P. Morgan said the stock now appears fairly valued and expects investor attention to shift to Signify’s portfolio and strategy review, due to be presented in June.

Investing.com -- Begbies Traynor Group plc announced Monday it is rebranding as BTG Consulting plc to better reflect its expanded range of services beyond its traditional insolvency and restructuring roots.

The financial and real estate advisory group has evolved over the past decade into a broad-based advisory business, achieving compound annual growth rates of 13% in revenue, 20% in adjusted profit before tax, and 8% in dividends.

Under the new structure, the company will market its services across eight distinct lines: restructuring, deal advisory, funding and insurance, financial advisory, valuations and asset advisory, agency and auctions, projects and developments, and property management and insurance.

The company will maintain BTG Begbies Traynor as a sub-brand for formal insolvency appointments and BTG Eddisons for its real estate advisory business, preserving recognition of these market-leading positions.

BTG will continue to report financial results through two operating divisions: Restructuring and advisory, and Real estate.

The company has applied to Companies House to formalize the name change and will update its TIDM code to "BTG" once approved. Its website will change to www.btguk.com.

Mark Fry, CEO, stated: "This change reflects the evolution of the Group in recent years into a broad-based advisory business." He added that the rebranding would help the company leverage its expertise to "enhance, protect and realise the value of our clients’ businesses, assets and investments."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Churchill China PLC (LON:CHH), a manufacturer of ceramic products for hospitality markets, reported annual turnover of approximately £76 million for 2025, with profit before tax expected to align with market expectations of £6 million.

The company confirmed that trading in the second half of 2025 met expectations. European trading during the latter half outpaced the previous year, with the region finishing broadly in line with 2024 results. Churchill stated that its sales and marketing initiatives in Europe are yielding positive outcomes.

While maintaining market leadership in the UK, Churchill noted that end users faced challenging macroeconomic conditions throughout the year. The company reported an encouraging pre-Christmas period, with pub groups investing ahead of the holiday season, and the order pipeline at year-end exceeded the previous year’s level.

U.S. operations finished ahead of 2024 despite dollar devaluation during the period. The "Rest of the World" segment showed softer performance as large projects were delayed to future periods.

The materials division performed well despite reduced sector volumes, though the company acknowledged that a key UK customer’s decision to source materials directly will affect future revenue. Churchill expects mitigating actions to limit the impact on profitability.

The company ended the year with a cash position of £10.8 million, higher than its opening balance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.