ECB

Alphabet’s shares fell more than 12 percent, wiping roughly US$480 billion from its market value in a single session. The tech‑heavy Nasdaq slipped 1.4 percent, while the S&P 500 and Dow fell 0.3 percent each. The decline followed Alphabet’s report of weaker advertising and search revenue growth and its announcement of a 2027 capital‑expenditure plan of US$195‑205 billion for 2026, a move that unsettled investors wary of AI‑related returns. European markets had risen earlier, with the ECB keeping rates unchanged after the Fed left borrowing costs flat. The euro fell on Lagarde’s announcement of her February 2027 resignation but rebounded after her press conference. The day’s data showed U.S. Q3 growth at 3.4 percent and PCE inflation at 3.6 percent.

A new European Central Bank study finds that private‑equity (PE) buyouts lift suppliers’ sales and employment—about 8 % higher sales and 4 % higher jobs—by driving growth in the acquired firms. The gains stem mainly from increased demand as PE‑backed companies expand and purchase more goods and services. However, when the economy weakens, the same suppliers face sharper cost‑cutting pressure: markups fall roughly 8 %, contracts tighten, and many PE firms sever supplier ties. The research also shows that PE‑backed firms are more likely to crowd out competitors by absorbing shared supplier capacity, reducing rivals’ employment, earnings and markups. Regulators and central banks are urged to assess supply‑chain effects, not just the target company, and to note that PE firms carry higher debt than bank‑financed peers, making them more sensitive to rising interest rates.

The European Central Bank (ECB) will conduct two online workshops to explain the implementation of its Integrated Reporting Framework (IReF), which began its implementation phase on 1 October 2026. The first session on 22 October will cover the scope of the regulation, the institutions required to report, proportionality measures, and the timetable and transitional arrangements. The second session on 3 November will focus on the structure of reporting requirements, handling country‑specific rules, and the role of the Banks’ Integrated Reporting Dictionary (BIRD). Registration for the October workshop closes on 15 October, while the November session closes on 27 October. The ECB encourages stakeholders to register early and follow its LinkedIn channel for updates.

On Friday, EU finance ministers agreed a compromise on the Markets in Securities and Investment Products (MISP) package, aiming to strengthen the European Securities and Markets Authority (ESMA) while preserving national control. The deal grants ESMA limited executive powers but stops short of full autonomy, prompting a rebuke from Finance Commissioner Maria Luís Albuquerque and ECB President Christine Lagarde. France pushed for stronger supervisory authority, while Ireland trimmed a rule that would let national supervisors delay ESMA decisions. Germany secured carve‑outs that exempt its stock exchange, Deutsche Börse, and Spain’s BME from direct EU oversight, sparking criticism from smaller members. Belgium warned that Euroclear could face new supervisory fees. The compromise also sets the EU budget to cover 60% of ESMA costs not covered by industry fees, a figure the Commission says is too high. The deal now awaits European Parliament approval before final legislative negotiations can begin.