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By Manya Saini and Niket Nishant (Reuters) -A U.S. government shutdown threatens to stall the IPO market's long-awaited comeback, just as strong investor demand and successful debuts had breathed life back into new listings.   The U.S. government shut down much of its operations on Wednesday as deep partisan divisions prevented Congress and the White House from reaching a funding deal. With the Securities and Exchange Commission running only essential functions on a skeleton staff, the agency will stop processing IPO paperwork, leaving companies primed for Wall Street debuts such as actress Jennifer Garner's baby food company Once Upon a Farm and electric-aircraft maker Beta Technologies in limbo. The fall window has been gathering momentum, with a wave of successful debuts, raising hopes that 2025 could be a breakout year for IPOs after high interest rates and volatility stalled the market for nearly three years. "A shutdown grinds the SEC to a halt, which means no prospectus reviews, no comments cleared and no green lights for going public," said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors. "It's bureaucratic purgatory at the worst possible time, just as the IPO market was beginning to thaw from a deep freeze," Schulman added.   U.S. IPOs have raised $52.94 billion from 263 listings as of September 29, the highest since 2021, according to Dealogic. The largest listings of the year included LNG giant Venture Global, buy-now-pay-later lender Klarna, and AI cloud firm CoreWeave. In addition to Once Upon a Farm and Beta Technologies, life insurer Ethos Technologies was also among the biggest companies to file for an IPO recently. Representatives for the three companies did not immediately respond to requests for comment on Tuesday. The pipeline for the rest of 2025 and going into 2026 features several other high-profile would-be issuers, including medical supplies giant Medline, SoftBank-backed PayPay, and corporate travel management platform Navan.  "Already this is shifting timelines back for deals that were on the fence," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs. "If it lasts more than a week, the IPO market will grind down to a halt, cutting short the rebound we were expecting." TEMPORARY SETBACK While government shutdowns are typically short-lived, the longest in history — 35 days spanning December 2018 to January 2019 — occurred under President Donald Trump's previous administration. At the time, the IPO market came to a virtual standstill. But a few companies sidestepped the SEC by locking in their IPO prices weeks in advance, allowing them to proceed with listings despite the shutdown. While the shutdown lasts, the IPO freeze could ripple across Wall Street, delaying deals for banks and limiting listing fees for exchanges. Still, as with 2019, listings are likely to bounce back, said some market-watchers. Strong investor demand, hefty inflows into IPO-themed funds and the best after-market performance in years will continue to lure companies to the market, said Lukas Muehlbauer, research analyst at IPO research firm IPOX. A weeks-long shutdown could potentially dampen market sentiment and spur volatility, but the fall window was generally the strongest for IPOs and would likely shrug off a shutdown blip, according to Anthony Saglimbene, chief market strategist at Ameriprise Financial. "IPO activity should be pretty solid and dominate any near-term hiccups around a shutdown," Saglimbene added.  (Reporting by Manya Saini and Niket Nishant in Bengaluru; editing by Michelle Price and Krishna Chandra Eluri)

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LONDON (Reuters) -Britain's government has issued a new order to Apple to create a "back door" into its cloud storage service, this time targeting only British users' data, the Financial Times reported on Wednesday. In August, Britain dropped a mandate for the iPhone maker to provide a "back door" that would have enabled access to the protected encrypted data of American as well as British citizens, according to U.S. Director of National Intelligence Tulsi Gabbard. U.S. lawmakers had raised concerns that the mandate could allow encrypted user data to be exploited by cybercriminals and authoritarian governments. Apple, which has said it would never build a "back door" into its encrypted services or devices, appealed against the earlier order at the UK's Investigatory Powers Tribunal (IPT), the IPT confirmed in April. The British government and Apple did not immediately respond to a request for comment. (Reporting by Jaspreet Singh in Bengaluru and Paul Sandle in LondonEditing by Tomasz Janowski and Sarah Young)

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WASHINGTON(Reuters) -U.S. private payrolls dropped in September, the ADP employment report showed on Wednesday. Private employment decreased by 32,000 jobs last month after a downwardly revised 3,000 decline in August, the ADP National Employment Report showed on Wednesday. Economists polled by Reuters had forecast private employment increasing 50,000 following a previously reported 54,000 advance in August. The ADP report, jointly developed with the Stanford Digital Economy Lab, could garner more attention from investors seeking fresh clues on the labor market as the Labor Department's more comprehensive and closely followed employment report for September will not be published on Friday. The U.S. government shut down at midnight on Tuesday after funding lapsed. "The suspension of economic statistical releases will make it harder to track the state of the economy during the shutdown," said Bill Adams, chief economist at Comerica Bank. "That may cause financial markets to react more than usual to private data releases, like ADP and Ward's tally of car and light truck sales." The 15th government shutdown since 1981 delayed the release of the construction spending report for August that had been due on Wednesday. The weekly jobless claims report on Thursday will also not be published.  The Labor and Commerce departments said on Monday all data releases would be suspended during a shutdown. Government data on Tuesday showed a lethargic labor market, with job openings rising moderately in August and hiring subdued. Economists expect that labor market stagnation will spur the Federal Reserve to cut interest rates again in October. The U.S. central bank resumed easing policy last month, cutting its benchmark overnight interest rate by 25 basis points to the 4.00%-4.25% range, to aid the labor market. (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)

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By Amina Niasse NEW YORK (Reuters) -UnitedHealth said it will stop offering Medicare Advantage plans in 16 U.S. counties in 2026, impacting 180,000 members, as the company balances higher costs with reimbursement pressure in the insurance program. "The combination of (Centers for Medicare and Medicaid Services) funding cuts, rising healthcare costs and increased utilization have created headwinds that no organization can ignore," said Bobby Hunter, who runs the company's government programs. UnitedHealth is leaving the counties but will continue to operate in most states, he said in a Tuesday press briefing. The government pays private insurers to operate the Medicare Advantage plans for people 65 and older or with disabilities. The company's UnitedHealthcare insurance business has the most enrolled members, ahead of rivals CVS Health and Humana. UnitedHealth suspended its full-year guidance this year, after missing earnings for the first time since 2008. The company attributed the first-quarter earnings miss to unexpected costs in its Medicare Advantage business as members increased use of medical services. UnitedHealth in a second-quarter earnings call said regulatory changes set to decrease payments the company receives for certain conditions would present a $4 billion risk to insurance profits in 2026. It flagged in its second-quarter earnings release that closing certain plans with about 200,000 members could help mitigate the impact. When compared with 2023, Hunter said government funding will have dropped in 2026 by about 20%. The company will cease operating over 100 plans representing about 600,000 members in all, largely comprised of preferred provider organizations or those that allow members to see providers outside of a plan network, Hunter said. The exits will likely steer patients toward health maintenance organizations, or plans which require more frequent referrals and limit patients to a network of providers, Hunter said. Most plan closures will occur in rural areas said Hunter, where UnitedHealthcare is still working to streamline operations: "We need a model that is sustainable and allows us to bring care to folks in those areas in a cost-effective way." (Reporting by Amina Niasse; Editing by Caroline Humer and Jane Merriman)

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By David Morgan, Bo Erickson, Nolan D. McCaskill and Richard Cowan WASHINGTON (Reuters) -The U.S. government shut down much of its operations on Wednesday as deep partisan divisions prevented Congress and the White House from reaching a funding deal, setting off what could be a long, grueling standoff that could lead to the loss of thousands of federal jobs. There was no clear path out of the impasse, while agencies warned that the 15th government shutdown since 1981 would halt the release of a closely watched September employment report, slow air travel, suspend scientific research, withhold pay from U.S. troops and lead to the furlough of 750,000 federal workers at a daily cost of $400 million. Trump, whose campaign to radically reshape the federal government is already on track to push out some 300,000 workers by December, warned congressional Democrats that a shutdown could clear the path for "irreversible" actions including cutting more jobs and programs. The shutdown commenced hours after the Senate rejected a short-term spending measure that would have kept government operations afloat through November 21. Democrats opposed the legislation over Republicans' refusal to attach an extension of health benefits for millions of Americans that are due to expire at the end of the year. Republicans say the issue must be addressed separately.  At issue on the government funding front is $1.7 trillion for agency operations, which amounts to roughly one-quarter of the government's total $7 trillion budget. Much of the remainder goes to health and retirement programs and interest payments on the growing $37.5 trillion debt. Independent analysts warn the shutdown could last longer than the budget-related closures of the past, with Trump and White House officials threatening to punish Democrats with cuts to government programs and the federal payroll. Trump budget director Russell Vought, who has called for "less bipartisan" appropriations, threatened permanent layoffs last week in the event of a shutdown.    Wall Street futures slipped, gold struck a record high and Asian stocks wavered as investors worried about delays in the release of key data and the impact of job losses. The dollar hovered near a one-week low versus major peers. RECORD DATES TO FIRST TRUMP TERM The longest government shutdown in U.S. history stretched over 35 days during December 2018 and January 2019 during Trump's first term in office, in a dispute over border security.  "All they want to do is try to bully us. And they're not going to succeed," Senate Democratic leader Chuck Schumer said in a floor speech a day after a White House meeting with Trump and other congressional leaders that ended with the two parties far apart. Senate Majority Leader John Thune described the failed short-term spending bill as a "nonpartisan" measure devoid of partisan policy riders that Democrats have had no problem accepting in years past.  "What's changed is, President Trump is in the White House. That's what this is about. This is politics. And there isn't any substantive reason why there ought to be a government shutdown," the South Dakota Republican told reporters. Trump's Republicans hold majorities in both chambers of Congress, but legislative rules require 60 of the 100 senators to agree on spending legislation. That means that at least seven Democrats are needed to pass a funding bill. DEMOCRATS FOCUS ON HEALTHCARE FUNDING Democrats are under pressure from their frustrated supporters to score a rare victory ahead of the 2026 midterm elections that will determine control of Congress for the final two years of Trump's term. The healthcare push has given them a chance to unite behind an issue that resonates with voters. Along with the extended health subsidies, Democrats have also sought to ensure that Trump will not be able to undo those changes if they are signed into law. Trump has refused to spend billions of dollars approved by Congress, prompting some Democrats to question why they should vote for any spending legislation at all.  University of Chicago professor Robert Pape said the unusually polarized U.S. political climate in the aftermath of conservative activist Charlie Kirk's assassination and the growing power on the extreme wings of both parties could make it harder for party leaders to agree on a deal to reopen the government.   "The rules of politics are radically changing and we can't know for sure where all of this is going to end," said University of Chicago political science professor Robert Pape, who studies political violence.   "Each side would have to backtrack against tens of millions of truly aggressive supporters, their own constituents, which is going to be really hard for them to do," he said.   Before the shutdown, Trump reached out to his own supporters with a deepfake video showing manipulated images of Schumer appearing to criticize Democrats while top House Democrat Hakeem Jeffries stood next to him, with a crudely drawn sombrero and mustache imposed over his face. "It was childish. It was petty," Schumer told reporters. "It's something that a 5-year-old would do, not a president of the United States. But it shows how unserious they are. They don't give a damn about the harm they will cause with their shutdown."  (Reporting by Richard Cowan, Nolan D. McCaskill, Bo Erickson and David Morgan; additional reporting by Jasper Ward and Katharine Jackson; editing by Scott Malone and Lincoln Feast.)

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(Reuters) -Corteva said on Wednesday it would separate its seed and pesticide businesses into separate publicly traded companies, as the agrichemicals firm seeks to sharpen its strategic focus and boost shareholder returns. The separation will allow each company to set specific capital allocation strategies, respond faster to market shifts and pursue growth opportunities independently, Corteva said. "The seed and crop protection markets have evolved, and as a result, we see the opportunities ahead for both companies diverging – this is the right time to act to stay ahead of the market," CEO Chuck Magro said. Shares of Corteva rose nearly 1% in premarket trading following the news. The Wall Street Journal had first reported Corteva's plans of a split on September 12, and the company stock has fallen 9% since then over concerns that the split would disrupt operations and cause value dilution. Corteva's seed business generated about 57% of its total net sales of $16.90 billion last year, with the remaining coming from its crop-protection segment, which produces herbicides, fungicides, insecticides and seed treatments. The company itself was formed after chemical conglomerate DowDuPont split into three entities in 2019. Since then, its shares have risen over 133%, and the firm now commands a market value of $45.93 billion. The agrichemical firm joins several industry giants such as Kraft Heinz, Warner Bros Discovery and DuPont , which have announced big-ticket spin-offs over the last year. Corteva's split follows six years of cost cuts, portfolio simplification and investment in new technologies that helped strengthen its position in both segments. The company expects the spin off to be completed in the second half of 2026. Following the split, CEO Magro will become the chief executive of the spun-off company that will house the seed business. Corteva chairman Greg Page will remain in his position at the existing company that will run the crop protection segment. (Reporting by Vallari Srivastava in Bengaluru; Editing by Shailesh Kuber and Leroy Leo)

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By Olivia Le Poidevin and Cecile Mantovani GENEVA (Reuters) -Swiss pharma companies are likely to follow Pfizer's price deal with the U.S. following President Donald Trump's push to lower drug prices, the head of a major Swiss chemical and pharmaceutical industry association said on Wednesday. Pfizer and Trump said on Tuesday they had agreed a deal in which the U.S. company would lower prescription drug prices in a Medicaid programme to match those it charges in other developed countries in exchange for tariff relief. In July, Trump sent letters to 17 leading drug companies, including Swiss firms Novartis and Roche, instructing them to cut prices to match those paid overseas. Stephan Mumenthaler, director general of Scienceindustries – which represents around 250 Swiss chemical and pharmaceutical companies – told Reuters he expected announcements of "mini-deals" to come one by one in the coming days and weeks from Swiss and global pharmaceutical companies. "They are thinking in similar schemes…How can you omit the margins that middlemen are taking away so that you basically have a similar price than before, but the end consumer still gets a lower price," he said in a video call from Basel. Trump said last week the U.S. would impose a 100% tariff on imports of branded or patented pharmaceutical products unless a pharma company is building a manufacturing plant in the U.S. Mumenthaler expects most Swiss pharma companies to be exempt, as major drug companies made announcements in April regarding plans to increase production in the U.S. "Our big members, like Novartis, Roche, but also Lonza…due to their investment in the U.S. and their investment plans in the U.S., have a very high probability to be to be exempt from these tariffs," he said. Novartis has said it is committed to finding solutions that lower costs for Americans and address price disparities between the U.S. and other high-income countries. Novartis said this week it will from November launch a direct-to-patient platform in the U.S. to sell select units of anti-inflammatory drug Cosentyx at a 55% discount off list price to cash-paying patients, and that it would later expand the platform to include other products. Roche has said that it and its U.S. unit Genentech remain committed to working with the Trump administration towards strengthening American manufacturing and making medicines more affordable for patients in the United States. Mumenthaler added that small Swiss companies with sizeable U.S. exposure would be the hardest hit, but that not many companies fit that category. They would either lose the U.S. market or have to supply it from elsewhere, such as the European Union, which has a lower tariff rate of 15% which it believes extends to pharmaceuticals, he said. (Reporting by Olivia Le Poidevin and Cecile Mantovani in Geneva. Additional reporting by Dave Graham in ZurichEditing by Madeline Chambers and Jane Merriman)

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(Reuters) -Conagra Brands beat Wall Street estimates for first-quarter sales on Wednesday, helped by resilient demand for its pantry staples such as Slim Jim meat snacks and Act II popcorn, even as inflation weighed on consumer spending. Shares of the company, which reaffirmed its annual forecasts, rose 3% in premarket trading following the results.  Consumers opting to cook at home due to rising living costs have helped boost sales for packaged foods companies such as Conagra. However, tariff-led inflation and macroeconomic uncertainty have been posing a threat to the company's sales, along with competition from cheaper private-label brands. The company posted revenue of $2.63 billion for the quarter ended August 24, beating analysts' average estimate of $2.62 billion, according to data compiled by LSEG. (Reporting by Anshi Sancheti and Neil J Kanatt in Bengaluru; Editing by Shreya Biswas)

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By Zaheer Kachwala (Reuters) -Amazon.com's cloud unit, Amazon Web Services, announced a multi-year partnership with the National Basketball Association to launch new AI-powered features and data insights from games, the organizations said on Wednesday. The deal, which did not have a financial value attached, will introduce "NBA Inside the Game", a basketball platform that will turn data points into insights and interactive experiences. Sports firms have increasingly adopted artificial intelligence, striking partnerships with cloud providers to use machine learning to provide in-depth statistics for fans. The "NBA Inside the Game" platform will offer a suite of features for live broadcasts and across the NBA App, website and other social channels, they said. The new AI features and data will also be available to teams for review. "Whenever we build a statistic, there is always input from our teams, because we want to make sure that these services we build not only are great for our fans, but also help our teams improve their strategy on court," NBA's head of media operations and technology, Ken DeGennaro told Reuters. The platform will track data from players to generate AI statistics such as defensive positions of teams, data on shot success percentage and strategy, he added. Earlier this year, Microsoft signed a five-year partnership with the English Premier League under which the cloud giant will infuse its AI copilot into the league's digital platforms. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)

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By Heekyong Yang and Hyunjoo Jin SEOUL (Reuters) -Samsung Electronics and SK Hynix have signed letters of intent to supply memory chips for OpenAI's data centers, as South Korean chipmakers join forces with the ChatGPT maker to meet rising demand from its Stargate project. The announcements were made on Wednesday after OpenAI CEO Sam Altman met South Korean President Lee Jae Myung and the chairmen of Samsung Electronics and SK Hynix at the presidential office in central Seoul. U.S. President Donald Trump unveiled the $500 billion Stargate project in January, charging OpenAI and partners including SoftBank and Oracle with ensuring the U.S. remains a leader in artificial intelligence. Expanding chip availability was one of the key ideas of the project, and Nvidia said last week it would invest up to $100 billion in OpenAI and supply it with data center chips. PLAN TO BUILD TWO DATA CENTERS IN SOUTH KOREA South Korea's top presidential adviser, Kim Yong-beom, said OpenAI was seeking to order 900,000 semiconductor wafers in 2029, and planned to set up joint ventures with Samsung and SK Hynix to build two data centers in South Korea with an initial capacity of 20 megawatts. The adviser said South Korea was open to participating in financing for the Stargate project if needed. “The significant part of the Stargate project would be impossible without memory chips from the two companies,” Kim told a press briefing. The president's office said the partnership would give South Korean chipmakers an early foothold in the world's largest AI infrastructure project, providing a growth opportunity for the domestic chip industry. Samsung and SK Hynix together hold about 70% of the global Dynamic Random Access Memory chip market and nearly 80% of the HBM market. HBM – a type of DRAM standard first produced in 2013 – involves stacking chips vertically to save space and reduce power consumption, helping to process the large volumes of data generated by complex AI applications. OpenAI this year set up its first office in Seoul as South Korean demand for its ChatGPT service surged. The country has the largest number of paying ChatGPT subscribers after the United States, according to OpenAI. Alongside the chip supply agreements, Samsung Electronics' affiliate Samsung SDS signed a partnership with OpenAI to develop, build and operate AI data centers under the Stargate project, while also expanding enterprise AI services. Shipbuilder Samsung Heavy Industries and construction unit Samsung C&T will jointly work with OpenAI to develop floating offshore data centers to cut cooling costs and carbon emissions. (Reporting by Heekyong Yang and Hyunjoo Jin. Editing by Mark Potter and Jan Harvey)

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