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Morning Bid Europe

A look at the day ahead in European and global markets

By Tom Westbrook, Deputy Financial Markets Editor

Data refreshes every time you open this email. For more European market news, click here. Please send any feedback to morningbid@thomsonreuters.com.

While U.S.-Iran talks have stalled, and next to no oil is making its way through the Strait of Hormuz, stock markets' attention has swung back to the unabated boom in AI.

Artificial intelligence supply chain stocks rallied markets in Japan, South Korea and Taiwan to record highs on Monday on a wave of buying unleashed by Intel's unexpectedly strong revenue forecast.

With G10 central banks seen leaving rates where they are this week and the uneasy ceasefire holding in the Middle East, the focus is on the linchpin of AI gains -- the hyperscalers' spending plans when they report earnings later this week.

Today's Market News

Chipmakers break records

Ships and boats in the Strait of Hormuz, Musandam, Oman, April 24, 2026. REUTERS

Asia's chipmakers reported record-breaking earnings last week, with quarterly profit up fivefold at SK Hynix and Samsung projecting an eightfold jump to an operating profit of nearly $38 billion for the three months from January to March.

TSMC, which also posted a record first-quarter profit, has logged eight straight quarters of double-digit growth.

Share prices can hardly keep up with the rivers of gold, but they are surging too, with Hynix stock near doubling this year and the market value of South Korean and Taiwanese stocks eclipsing those of Germany, according to the World Federation of Exchanges.

Graphics are produced by Reuters

Rates in focus

On the Iran front, an Axios report that Iran had proposed conditions for reopening the Hormuz and separating nuclear negotiations for another time, buoyed markets on Monday.

German consumer sentiment for May is due on Monday and investors may start to adjust some of the aggressive short-term rates positions, betting on imminent hikes leading into European and British central bank meetings.

Key developments that could influence markets on Monday:

U.S.-Iran peace talks
Economics: German consumer sentiment for May
Earnings: Deutsche Boerse, Verizon, Domino's Pizza

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Weekend Briefing

From Reuters Daily Briefing

By Kate Turton, Newsletter Editor

Welcome to the Weekend Briefing. Today's On Assignment podcast features Vatican correspondent Joshua McElwee who talks about covering the Pope's Africa tour.

We also have a fascinating read on the Republicans retooling their midterm strategy amid Trump's slumping ratings, and City Memo takes us to Warsaw.

Witkoff and Kushner headed to Pakistan for Iran talks

Pakistan prepares to host the U.S. and Iran for the second round of peace talks, in Islamabad, Pakistan, April 25, 2026. REUTERS/Asim Hafeez

Showing up: U.S. negotiators, including President Donald Trump's special envoy Steve Witkoff and son-in-law Jared Kushner, are scheduled to leave for Pakistan, but Iran said its officials did not plan to meet the Americans to discuss ending the war.
Allies: The sovereignty of the Falkland Islands rests with Britain, a spokesperson for Prime Minister Keir Starmer said after an internal Pentagon email suggested reviewing the U.S. position ‌on the Falklands as punishment for Britain's stance on the Iran war.

US Democrats look to rein in Trump's war powers, this time on Cuba

Less Trump: With U.S. gas prices up, President Trump's approval ratings down and the Iran war dragging on, Republicans are recalibrating their blueprint ahead of November's midterm elections.
Threat from the right: House Republicans are facing a fresh challenge in the 2026 midterms: the Homeland Political Action Committee, a new conservative super PAC targeting Republican members of Congress who support immigration reform legislation.

After waiting years for justice, Purdue opioid victims are defeated - by paperwork

Broad concerns: A poll found that most Americans are worried about pesticides and oppose shielding companies from lawsuits over hazardous products. The Reuters/Ipsos poll was conducted ahead of U.S. Supreme Court arguments involving Bayer's Roundup weedkiller.
Temporary Protected Status: Among Trump's main arguments at the U.S. Supreme Court defending his moves to rescind humanitarian protections that shield hundreds of thousands of immigrants from deportation, one stands out: Courts cannot review his administration's decisions in this area.

Forecast for strong El Niño fuels worries about global crops as Iran war bites

Here comes the boy: Forecasts for the strongest El Niño in a decade promise hotter, drier weather across Asia in the second half of 2026, hitting crops and food supplies while farmers grapple with fertilizer shortages and costly fuel caused by the Iran war.
Fire season: Two forest fires in northern Japan's Iwate Prefecture burned into a fourth day as ground and aerial firefighting efforts expanded ‌to more than 1,000 personnel. Meanwhile, Georgia Governor Brian Kemp declared an emergency for 91 counties in his state, where authorities are battling two major wildfires.

Before I forget…

As prediction markets continue to make headlines, the U.S. Commodity Futures Trading Commission sued New York, accusing the state of invading its authority to regulate prediction markets. This week a U.S. soldier involved in the capture of Nicolas Maduro has been charged with making $400,000 ‌by betting on the removal of the Venezuelan leader.
Forty years after Chornobyl, Ukraine will mark the anniversary needing to reshield the old sarcophagus covering tons of radioactive debris in reactor four, which exploded on April 26, 1986, spewing radioactive clouds across much of Europe. See our rare photos of the disaster.
Paternity leave in Italy remains just 10 days compared to five months for mothers, but a growing number of Italian "dad influencers" are reshaping how fatherhood looks online.
In this week's Culture Current, one of Britain’s most recognizable broadcasters discusses the dangers posed by AI-generated disinformation and why trust - in journalism and what we see - has never felt more fragile.
Police said they had seized artworks, including paintings possibly by Pablo Picasso and Joan ‌Miro, at a house in Portugal and were questioning the former butler of the late owner on suspicion of trying to sell some of them.
Australian flags were mistakenly placed near the White House instead of British flags ahead of King Charles' U.S. visit, though the District of Columbia quickly corrected the error, a D.C. Department of Transportation official said.