Chips wobble as TSMC breaks records, and Britain's bargain hunt widens

A chip slump with a record underneath it

The most striking feature of Thursday's session was the gap between one company's numbers and the sector's mood. TSMC posted a record profit and pledged $100bn to expand its United States manufacturing, according to Euronews. Yet the Nasdaq still fell sharply, with the Wall Street Journal reporting that a broad slump in chip stocks overshadowed the Taiwanese company's result. Earlier live coverage had already flagged the Nasdaq slipping as semiconductors came under pressure.

The Journal described the move as a fresh wobble in artificial-intelligence-linked names, the sort of pullback that arrives without a single obvious trigger. A record set of earnings from the industry's largest contract manufacturer was not enough to steady sentiment. That is worth noting in itself: strong results and a weak share-price reaction can sit side by side when expectations have run ahead of the reporting.

Away from the listed giants, appetite for memory-chip exposure looked undimmed in Asia. The South China Morning Post reported that CXMT, a Chinese memory-chip maker, is set for a mega initial public offering that has drawn a frenzy of interest, from retail investors to a fund run by the founder of DeepSeek. The same outlet noted separately that Hong Kong's exchange had returned an IPO application sponsored by a top Chinese investment bank, a reminder that the pipeline is busy but the gatekeeping remains firm.

Foreign predators keep scouring London

The theme of overseas buyers picking through the UK market ran through the day's British coverage. This is Money reported four UK firms targeted in a fresh round of bids worth some £10bn, describing foreign predators scouring the London market for bargains. Among the confirmed deals, the FTSE 250 engineering firm Rotork was sold to its Swiss rival ABB for £4.1bn.

The takeover talk reached the retail sector too. City A.M. reported that Mike Ashley's Frasers felt a lift from a takeover spree, though the group's shares then slumped after it withheld its outlook amid takeover talks involving Hugo Boss, as reported by This is Money. Frasers separately dismissed what it called nonsense rumours over a Harvey Nichols bid, according to City A.M. In Germany, Euronews reported that Delivery Hero had backed a €13bn takeover by Uber, showing the deal-making mood was not confined to London.

The Guardian's Nils Pratley framed all this as a policy question, arguing that boosting the London stock market should be a priority for the next chancellor as takeovers thin the ranks of listed companies. Not every corner of the market shared the buoyancy. This is Money reported Ocado shares crashing to a 13-year low as investors lost patience with its technology division, while City A.M. noted Crest Nicholson shares slumping as lender talks dragged on, and Foxtons shares tumbling after the estate agent took a £3m knock tied to the Renters' Rights Act.

Rates, pay and the price of diesel

The macro backdrop in Britain carried a note of caution. City A.M. reported that the International Monetary Fund had warned the Bank of England against cutting interest rates, a message aimed squarely at the pace of any easing. That warning lands alongside a household squeeze: This is Money reported that salaries were failing to keep pace with inflation, leaving families facing a fresh pay squeeze.

Inflation pressure may yet find a new source. The Wall Street Journal reported that a sharp drop in diesel supplies threatens to rev up inflation again, a supply-side risk that sits awkwardly with the IMF's rates message. Diesel feeds through into freight and food costs, so the concern is broader than the pump price alone.

There were reminders elsewhere that scrutiny of corporate plumbing continues. City A.M. reported that PwC had been handed a multi-million-pound fine over audit failures at the FTSE 100 firm Babcock. Trade policy also stayed in view, with DW reporting that the United States had slapped 25% tariffs on Brazil with an election looming there, a move that mixes commerce and politics. Taken together, Thursday offered a market absorbing record earnings and fresh deals on one hand, and a steady drip of cost and policy worries on the other.