व्यापार

By Max A. Cherney SAN FRANCISCO (Reuters) -Broadcom is launching a new networking chip on Tuesday that will help companies build artificial intelligence computing systems by stringing together hundreds of thousands of chips that crunch data, deepening its rivalry with Nvidia. The chip, called the Thor Ultra, enables computing infrastructure operators to deploy far more chips than they otherwise could, allowing them to build and run the large models used to power AI apps such as ChatGPT. The Thor Ultra will battle Nvidia's networking interface chips and aim to further entrench Broadcom's control of network communications inside data centers designed for AI applications. It comes after Broadcom on Monday unveiled a deal to roll out 10 gigawatts worth of custom chips for ChatGPT maker OpenAI beginning in the second half of 2026, challenging Nvidia's grip on the AI accelerator market. AI represents a big opportunity for Broadcom. Chief executive Hock Tan said late last year the market the company is going after for its various AI chips is in the range of $60 billion to $90 billion in 2027, divided between its networking chips and the data center processors it helps Alphabet's Google and OpenAI make. Broadcom reported AI revenue of $12.2 billion in fiscal 2024. In September, it announced a new, unnamed $10 billion customer for its custom data center AI chips. The Thor Ultra chip, part of Broadcom's growing catalog of networking chips, operates as a critical link between an AI system and the rest of the data center. The networking chips help data center operators move information around inside a facility. "In the distributed computing system, network plays an extremely important role in building these large clusters," Ram Velaga, a Broadcom senior vice president, told Reuters. "So I'm not surprised that anybody who's in the GPU business wants to make sure that they are participating in the networking." FOCUSING ON CHIP DESIGN While networking chips are crucial to the company's plans, the AI chips Broadcom helps design for large cloud computing companies such as Google are lucrative. Broadcom has worked on multiple generations of Google's Tensor processor, which Google began designing more than a decade ago. The Tensor chips have generated billions of dollars in revenue for Broadcom, according to analyst estimates. During a tour in September of Broadcom's San Jose network chip-testing labs where engineers work on current and forthcoming designs of its networking chips, company executives detailed measures taken to construct and test new networking processors. Towards that end, Broadcom's engineers doubled the bandwidth on Thor Ultra compared with the prior version. They put the chips through rigorous testing and evaluation from the earliest stages of production. To make a chip like the Thor Ultra or flagship series of Tomahawk networking switches, the engineers build an entire system around the chip. With the hardware system team, the engineers will discuss what kind of package the chip uses, how much power it will need and how much heat it will emit, Velaga said. Broadcom does not sell servers itself but offers the designs for components and systems it creates for testing to its customers in order to give them a reference point to construct the networking infrastructure around it. "For every dollar we invest in our silicon, there is at least $6 to $10 that our ecosystem partners are investing," Velaga said. "So a lot of our focus is on design, as if we are almost ready to take it to production." (Reporting by Max A. Cherney in San Francisco; Editing by Muralikumar Anantharaman)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

(Reuters) -Europe's largest sugar producer Suedzucker said on Tuesday it expected to post a year-on-year improvement in its third-quarter results, to be reported in January, citing a positive start to the quarter. The Germany-based group had reported earnings before interest, taxation, depreciation and amortization of 82 million euros ($95 million) and an operating loss of 33 million euros for the third quarter of the 2024/25 financial year. Suedzucker's current financial year began in March 2025. Suedzucker also confirmed its annual outlook. Its third-quarter results are set to be published on January 13, 2026. ($1 = 0.8654 euros) (Reporting by Tristan Veyet in Gdansk, editing by Milla Nissi-Prussak)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Max A. Cherney SAN FRANCISCO (Reuters) -Broadcom is launching a new networking chip on Tuesday that will help companies build artificial intelligence computing systems by stringing together hundreds of thousands of chips that crunch data, deepening its rivalry with Nvidia. The chip, called the Thor Ultra, enables computing infrastructure operators to deploy far more chips than they otherwise could, allowing them to build and run the large models used to power AI apps such as ChatGPT. The Thor Ultra will battle Nvidia's networking interface chips and aim to further entrench Broadcom's control of network communications inside data centers designed for AI applications. It comes after Broadcom on Monday unveiled a deal to roll out 10 gigawatts worth of custom chips for ChatGPT maker OpenAI beginning in the second half of 2026, challenging Nvidia's grip on the AI accelerator market. AI represents a big opportunity for Broadcom. Chief executive Hock Tan said late last year the market the company is going after for its various AI chips is in the range of $60 billion to $90 billion in 2027, divided between its networking chips and the data center processors it helps Alphabet's Google and OpenAI make. Broadcom reported AI revenue of $12.2 billion in fiscal 2024. In September, it announced a new, unnamed $10 billion customer for its custom data center AI chips. The Thor Ultra chip, part of Broadcom's growing catalog of networking chips, operates as a critical link between an AI system and the rest of the data center. The networking chips help data center operators move information around inside a facility. "In the distributed computing system, network plays an extremely important role in building these large clusters," Ram Velaga, a Broadcom senior vice president, told Reuters. "So I'm not surprised that anybody who's in the GPU business wants to make sure that they are participating in the networking." FOCUSING ON CHIP DESIGN While networking chips are crucial to the company's plans, the AI chips Broadcom helps design for large cloud computing companies such as Google are lucrative. Broadcom has worked on multiple generations of Google's Tensor processor, which Google began designing more than a decade ago. The Tensor chips have generated billions of dollars in revenue for Broadcom, according to analyst estimates. During a tour in September of Broadcom's San Jose network chip-testing labs where engineers work on current and forthcoming designs of its networking chips, company executives detailed measures taken to construct and test new networking processors. Towards that end, Broadcom's engineers doubled the bandwidth on Thor Ultra compared with the prior version. They put the chips through rigorous testing and evaluation from the earliest stages of production. To make a chip like the Thor Ultra or flagship series of Tomahawk networking switches, the engineers build an entire system around the chip. With the hardware system team, the engineers will discuss what kind of package the chip uses, how much power it will need and how much heat it will emit, Velaga said. Broadcom does not sell servers itself but offers the designs for components and systems it creates for testing to its customers in order to give them a reference point to construct the networking infrastructure around it. "For every dollar we invest in our silicon, there is at least $6 to $10 that our ecosystem partners are investing," Velaga said. "So a lot of our focus is on design, as if we are almost ready to take it to production." (Reporting by Max A. Cherney in San Francisco; Editing by Muralikumar Anantharaman)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Anirban Sen, Saeed Azhar and Matt Tracy NEW YORK (Reuters) -The bankruptcies of automotive-related companies First Brands and Tricolor, along with potential losses at banks and investment funds, are raising new concerns about hidden risks in parts of the credit market — prompting investors to take a closer look at risky debt. Auto parts supplier First Brands and subprime lender and dealership Tricolor both filed for bankruptcy protection last month. The two collapses have rattled some stakeholders in Wall Street's multitrillion-dollar credit machinery, from leveraged loans and collateralized loan obligations (CLOs) to trade‑finance funds and subprime auto loans, raising questions about exposure levels of a number of Wall Street fund managers, which pool capital from investors to provide loans to companies.  "This would serve as a strong precedent for LPs (investors) to question risky offerings," said Zain Bukhari, associate director of risk and valuations at S&P Global. LPs, referring to limited partners, are passive investors that provide capital to a fund.  Some investors may ask for audited statements or quality of earnings from independent audit firms before investing in unsecured assets, Bukhari added. First Brands had roughly $800 million in unsecured supply chain financing liabilities. A sign of such scrutiny appeared in July when First Brands was trying to raise a $6 billion loan to refinance its debt. In August, however, it became clear that potential lenders would require further diligence, including a quality-of-earnings report, according to a document filed by the auto parts company's chief restructuring officer in bankruptcy court. Investors and analysts are now assessing the fallout for the individual firms exposed as well as for the broader market. They hope to gain some clarity during the third-quarter earnings season, which kicks off this week.    "The third quarter earnings become a very interesting litmus test for how this shakes out – people will be very closely following the bank reporting," said Andrew Sheets, global head of corporate credit research at Morgan Stanley. "There will be big questions about where auto loan trends are, (and) other consumer credit charge-off trends are."   First Brands filed for bankruptcy protection on September 29, listing more than $10 billion in liabilities. Some of the finance industry's most prominent names, including Jefferies and UBS Group, have since disclosed exposure of more than $1 billion tied to the collapse of the Ohio-based company. Earlier in October, Jefferies said a fund in its asset management division, Leucadia Asset Management, has about $715 million of receivables tied to First Brands. UBS is assessing more than $500 million of exposure across certain funds. Some investors have asked Jefferies-linked Point Bonita Capital's fund to return money invested in the fund, a source familiar with the matter told Reuters.  On Sunday, Jefferies said its exposure to First Brands Group is limited and that any potential losses would be "readily absorbable." When Jefferies was asked if it will face pressure from investors for more scrutiny on risky investments, a spokesman for the firm declined to comment on Monday. Other banks exposed include SouthState Bank and CIT Group, which is now owned by First Citizens. A broad range of funds including Sound Point Capital Management, Benefit Street Partners and Palmer Square Capital Management hold CLOs, which collectively hold hundreds of millions of the $4 billion of first-lien term loans of First Brands, according to court documents. Investment firms with over $100 million CLO exposure each include AGL Credit and PGIM, according to the recent court filings. The funds and banks either declined to comment or did not respond to requests for comment. A UBS spokesperson said the bank was "working to determine the potential performance impact on the small number of our affected funds."  Meanwhile, Tricolor listed over $1 billion in liabilities, with more than 25,000 creditors, according to its bankruptcy petition. Lenders such as JPMorgan have nearly $200 million of exposure to Tricolor, Reuters has previously reported.  CREDIT RALLY SPUTTERS The credit rally, which got off to a robust start earlier in October, has hit a speed bump in recent days as investors reduced exposure to certain sectors over concerns around weakness in consumer and auto lending, experts said.   "We now seem to have a catalyst important enough to engender a shade of fear," said Neha Khoda, head of U.S. credit strategy at Bank of America, in a note dated October 10. "Credit investors are questioning if they need to be all-in at super-tight spreads, and they won't get a pushback from us."  To be sure, the collapse of First Brands is unlikely to cause a widespread global meltdown across credit markets, some experts said.  "On a deal-by-deal basis, we don't see conditions in the leveraged finance markets as materially different from historical norms," said Logan Nicholson, senior managing director at asset manager Blue Owl Capital.   In the U.S., the overall exposure of CLOs to First Brands currently stands at 0.21%, according to estimates from Morgan Stanley in a note dated September 26. For the CLO funds currently holding First Brands loans, the exposure levels range between 0.001% and 1.8%.  Some experts said that a divergence has emerged in the CLO industry between holders of senior and junior loans, as a cohort of companies with weaker credit ratings have been buffeted by slower macroeconomic growth and headwinds from the Trump administration's tariff policy.  "Probably the larger impact on markets has been on the loan side," said Morgan Stanley's Sheets, adding that the ripple effect from the bankruptcies could impact junior parts of a CLO's capital structure. (Reporting by Anirban Sen and Saaed Azhar in New York; Additional reporting by Matt Tracy and Davide Barbuscia; Editing by Megan Davies and Matthew Lewis)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

WASHINGTON (Reuters) -U.S. small-business sentiment declined in September amid expectations of unfavorable operating conditions in the next six months, and many owners reported raising prices or planning to, suggesting that inflation was poised to increase further. The National Federation of Independent Business said on Tuesday its Small Business Optimism Index dropped 2.0 points to 98.8 last month. It was the first decline in three months. A lapse in government funding amid a political standoff between Republicans and Democrats in Washington has halted the collection and publishing of official economic data, leaving investors and policymakers relying on private surveys to assess the economy's health.  The shutdown, which enters its third week on Wednesday, has delayed the release of the closely watched employment report for September. But September's consumer price data will be published next Friday to assist the Social Security Administration with its annual cost-of-living adjustment for 2026 for millions of retirees and other benefits recipients. The NFIB said the survey's Uncertainty Index jumped 7 points from August to 100, the fourth-highest reading in over 51 years. "Uncertainty is very high, the (Trump) administration has a lot of policy changes still in the air, lots of moving parts," said NFIB Chief Economist Bill Dunkelberg. "Growth in the economy is solid though driven perhaps more by AI-related investments than by spending that impacts Main Street firms." TARIFFS ARE RAISING COSTS FOR BUSINESSES The share of owners expecting better business conditions over the next six months plunged 11 points to 23%.  Commentary from survey respondents included complaints about higher beef prices, health insurance and taxes as well as potential clients "choosing to delay or forgo repairs or improvements due to lack of confidence in the overall economy."  Fourteen percent of owners said inflation was their single most important problem in operating their business because of higher input costs, up three points from August.  The share raising average selling prices increased three points to 24%, with the NFIB noting that "price increases remain above the monthly average of a net 13%." There was also a rise in the proportion complaining about supply chain disruptions affecting their businesses. The price increases and supply chain disruptions are likely because of President Donald Trump's sweeping tariffs on imports. Trump last Friday threatened 100% duties on Chinese imports.  About 31% of owners planned to raise prices in the next three months, up five points from August. More businesses reported declining sales. The share expecting higher inflation-adjusted sales dropped four points. As a result, unsold merchandise is piling up, a worrying sign for the economy. "Solid consumption spending appears to be from the top third of the income distribution and the stock market keeps setting new record highs, producing capital gains income for shareholders," said Dunkelberg. (Reporting by Lucia Mutikani; Editing by Andrea Ricci)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Patrick Wingrove (Reuters) -Johnson & Johnson on Tuesday said it plans to separate its orthopedics business into a standalone company named DePuy Synthes within the next 18 to 24 months, marking its second major spinoff since 2023. J&J's orthopedics unit, which makes hip, knee, and shoulder implants, surgical instruments, and other products, generated around $9.2 billion last year, or about 10% of total revenue. J&J in 2023 announced a two-year restructuring program for its orthopedics business, saying it planned to exit certain markets and stop selling some products, after having recently spun off its $15 billion consumer unit into Kenvue. The company said it planned to focus on high-growth, high-margin areas as part of its separation plans, such as oncology, immunology, neuroscience, surgery, vision care, and cardiovascular. J&J Chief Financial Officer Joe Wolk said the company was exploring multiple paths for the separation, with a primary focus on a tax-free spin-off, but remained open to other options. While the orthopedics business was profitable, Wolk said J&J believes the next phase of innovation in orthopedics was "beyond our scope and probably in better hands somewhere else." FORECAST RAISE, PROFIT BEAT J&J also raised its 2025 sales forecast by about $300 million and now expects product revenue of $93.5 billion to $93.9 billion, above analysts' expectations of $93.4 billion, according to LSEG data. Third-quarter sales of $23.99 billion edged past Wall Street expectations of $23.75 billion, according to LSEG data. The drugs and medical device maker posted adjusted earnings of $2.80 per share versus analyst expectations of $2.76. The company's pharmaceuticals sales jumped 6.8% from a year ago to $15.56 billion, slightly outpacing analysts' estimates of $15.42 billion. J&J saw gains from its oncology products, including blood cancer treatment Darzalex, which brought in third-quarter sales of $3.67 billion, about in line with forecasts of $3.62 billion. Its medical device sales also rose 6.8% to $8.43 billion, mainly driven by electrophysiology products. (Reporting by Patrick Wingrove in New York; Editing by Bill Berkrot)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

(Reuters) -Domino's Pizza posted better-than-estimated U.S. profit and same-store sales for the third quarter on Tuesday, driven by promotions and new menu items that appealed to consumers seeking affordable dining options. The company's shares rose 3% in premarket trading. Fast-food demand in the U.S. remains pressured as sticky inflation and economic uncertainty, along with several quarters of menu price hikes, have pushed consumers to tighten household budgets and prioritize value when dining out or ordering in. To cater to the shift in consumer spending, Domino's revived its "Best Deal Ever" promotion on August 25, offering any-topping pizzas for $9.99. It also introduced other items such as the parmesan-stuffed-crust pizza. The company's U.S. same-store sales grew 5.2% during the quarter, compared with analysts' expectations of a 4.01% rise, according to data compiled by LSEG. Domino's also benefited from its delivery partnership with DoorDash in the U.S. Its quarterly earnings per share for the three months ended September 7 were $4.08, compared with the estimate of $3.97, helped by higher order volumes. Quarterly international same-store sales growth of 1.7%, however, fell short of an estimated 1.91% rise, as the company faces choppy demand in some markets such as Japan and Australia. Revenue for the third quarter rose 6.2% to $1.15 billion, while analysts estimated $1.14 billion. U.S. company-owned store gross margin fell 0.5 percentage point from a year earlier, hurt by higher costs of some commodities such as cheese and pork. (Reporting by Anshi Sancheti and Juveria Tabassum in Bengaluru; Editing by Leroy Leo and Shilpi Majumdar)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Max A. Cherney SAN FRANCISCO (Reuters) -U.S. Republican Senator Tom Cotton has asked the Commerce Department to investigate Singapore-based Megaspeed for allegedly diverting Nvidia chips used for artificial intelligence, according to a letter seen by Reuters on Monday. The letter cites an October report in The New York Times that detailed the alleged diversion of Nvidia chips by Megaspeed, a cloud computing company. According to the report, Megaspeed funneled Nvidia chips to Malaysia and Indonesia that appeared to serve customers in China remotely. Megaspeed did not immediately respond to a request for comment. The Singapore Police Force on Tuesday said that "investigations are ongoing into Megaspeed for suspected breaches of our domestic laws." In July, Reuters reported that demand for repairs of banned Nvidia products boomed, which was also cited by Cotton in his letter. In 2024, Reuters reported that China had obtained high-end Nvidia AI chips in spite of a ban. "As the Trump administration recently indicated, export controls are an important tool as he navigates America through perilous times against an increasingly aggressive and emboldened adversary," Cotton wrote. "The pervasiveness of chip smuggling undermines the president and allows U.S. adversaries access to advanced technology where the U.S. maintains significant leverage." Cotton said he would continue to work with U.S. President Donald Trump to curb illegal diversions of U.S. chips. His letter was addressed to Commerce Secretary Howard Lutnick. Cotton previously introduced legislation that would require location verification of chips after they are sold. Last week, Trump unveiled levies of 100% on China's U.S.-bound exports and new export controls on "any and all critical software" by November 1. On Sunday, China said the latest tariffs were hypocritical.     (Reporting by Max A. Cherney in San Francisco; Editing by Thomas Derpinghaus.)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Philip Blenkinsop HORSENS, Denmark (Reuters) -The European Union is seeking to coordinate with the United States and other G7 partners a response to tighter Chinese controls on the export of rare earth minerals, trade ministers and officials from the bloc said on Tuesday. China, the world's largest rare earth producer, dramatically expanded controls last week, adding new elements, refining technology and extra scrutiny for semiconductor users ahead of planned talks between Presidents Donald Trump and Xi Jinping. European Trade Commissioner Maros Sefcovic called the measures unjustified and said EU ministers meeting in Denmark to discuss trade issues described them as a "critical concern". Previous Chinese controls announced in April caused shortages around the world, such as for carmakers, before a series of deals with Europe and the U.S. eased the supply crunch. Sefcovic said G7 finance ministers were likely to discuss options on Wednesday and added he had discussed the issue with U.S. Commerce Secretary Howard Lutnick. "We brainstormed yesterday that it would be advisable after this first discussion to have a G7 video call pretty soon," he said before the EU ministers' meeting. Sefcovic said he was also likely to speak to his Chinese counterpart early next week. Danish Foreign Minister Lars Rasmussen said the EU needed a united and "tough" response and to flex its muscles as "the world's biggest trading bloc". "But we also need to be realistic. This is actually an area of common interest with our friends in the U.S. If we stick together we can much better pressure China to act in a fair way," he said. Trump's immediate response was to threaten China with 100% tariffs, sparking a Wall Street sell-off.  Rasmussen did not favour tariffs, advocating instead frank and open discussions with Beijing. Sefcovic also said that coordination with G7 partners could take the form of seeking to diversify supply, such as advancing joint projects to extract or process critical minerals. "Of course these projects take time, but with this signal we got from China it's clear we have to focus on accelerating these processes as much as possible," he said. (Reporting by Philip Blenkinsop; Editing by Susan Fenton)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Gilles Guillaume PARIS (Reuters) -Shares in Michelin fell as much as 11% on Tuesday, to their lowest in almost three years, after the tire maker cut its forecast for full-year income more than expected due to weak business conditions in North America. The company said late on Monday it expected 2025 segment operating income of between 2.6 billion euros and 3.0 billion euros ($3.0 billion-$3.5 billion), down from an earlier forecast of income above 3.4 billion euros, after third-quarter sales volumes fell almost 10% in its key region, North America. Michelin produces its tires for the North American market locally, avoiding a direct impact from U.S. tariffs. However, it is seeing a knock-on impact from weaker truck sales after customers became more cautious in the volatile environment. Michelin's shares tumbled 11% at the opening before reducing losses and were down 8.7% by 0839 GMT, the lowest since July 2023 and on track for their worst day since March 2020. Last week, German carmaker BMW cut its annual earnings forecast due to U.S. import tariffs, while Mercedes reported a drop in third-quarter sales. Michelin attributed its lower outlook to "plummeting demand" from truck and agriculture segments in North America in the third quarter and a weak sell-out market in truck replacement tires that reflected the soft economy. The cut was "far bigger than expected", said analysts at Deutsche Bank.  It also raised concerns about the 2026 target, which Jefferies said was "very clearly likely to be cut" in the third or fourth quarter. The French company reports third-quarter sales on October 22. Michelin said in May 2024 it was targeting an operating income of 4.2 billion euros for 2026. (Reporting by Gilles Guillaume; Writing by Dominique Patton; Editing by Susan Fenton)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)