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Inditex Defies Consumer Slowdown as Zara Delivers Robust Early Summer Growth

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Zara owner Inditex has reassured investors with a strong start to the summer season, reporting currency-adjusted sales growth of 11.5% in May, well above analysts’ expectations of 8%. The performance comes despite weaker consumer confidence and economic uncertainty linked to rising inflation concerns and geopolitical tensions. The retailer’s shares climbed as much as 5% following the announcement.

During the February-to-April quarter, Inditex recorded sales of €8.75 billion, representing an 8.8% increase on a currency-adjusted basis. The company also improved profitability, with gross margin rising to 61.2% from 60.6% a year earlier. Executives said the group has successfully adapted its supply chain to manage disruptions in global shipping and transportation caused by the ongoing conflict in the Middle East.

Inditex remains optimistic about future growth, particularly in the United States, its second-largest market after Spain. The company said sales growth is being driven mainly by higher product volumes rather than price increases, while investments in larger stores and strategic expansions continue to attract customers. Inditex maintained its full-year outlook, including stable gross margins, a 5% increase in retail space, and capital expenditure of €2.3 billion.

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Universal Music Rejects Bill Ackman’s $64 Billion Takeover Bid

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Universal Music Group has rejected a $64.3 billion takeover proposal from billionaire investor Bill Ackman’s firm, Pershing Square, stating that the offer significantly undervalues the company. Universal’s board said the bid was not in the best interests of shareholders, artists, employees, fans, or other stakeholders, reaffirming confidence in the company’s long-term growth strategy.

Pershing Square, which already owns a stake in Universal, launched the bid in April with plans to relist the music giant in the United States. Ackman argued that Universal’s share price had underperformed due to factors unrelated to its core music business, including ownership structure concerns and delays in pursuing a New York stock market listing. However, major shareholder Bolloré Group had also opposed the proposal, claiming it did not reflect the company’s true value.

Universal, home to some of the world’s biggest artists and music labels, said it remains focused on expanding its leadership in the global music industry through innovation, artist development, and stronger fan engagement. The company also pledged to provide more detailed financial disclosures in the future, while continuing to navigate industry challenges such as royalty debates and the growing impact of AI-generated deepfake music.

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European AI Stocks Defy Geopolitical Gloom Amid Iran War

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Despite a darkening backdrop for European equity markets caused by the energy shock of the Iran war, the region’s tech sector is experiencing a massive, under-the-radar rally. While the conflict has dampened overall economic growth and caused the broader STOXX 600 index to drop just over 2% since late February, European tech shares have surged 10%, hitting their highest levels since 2000. Data indicates that euro zone economic activity fell sharply in May, yet AI-related baskets have accounted for over two-thirds of the positive performance in European stocks over the past month and a half.

Research from TS Lombard highlights two specific European AI baskets that are performing on par with the Nasdaq. The first basket, consisting of semiconductor supply chain firms like ASML, Infineon, and STMicroelectronics, has rallied by roughly 20% since the start of April. The second basket, which focuses on AI infrastructure buildout firms like Schneider Electric and Prysmian, has jumped around 22%. This surge was reignited globally in April as strong tech earnings, including Nvidia’s recent stellar revenue report, reassured investors that corporate spending plans on AI remain highly robust.

Analysts suggest this tech rally has further room to run, reinforced by a secular push toward innovation, defense, and energy security. Furthermore, European tech stocks present an attractive valuation advantage, trading at almost 28 times expected earnings compared to nearly 35 times for their U.S. competitors on the Nasdaq. Although the tech sector only makes up about 10% of the heavily financial- and industrial-dominated European benchmark, its resilience proves that looking through the current macroeconomic chaos reveals significant regional winners.

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Berkshire Unveils $4.3 Billion Alphabet Stake, Trims Apple Holdings Ahead of Buffett’s Exit

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Berkshire Hathaway has disclosed a new $4.3 billion investment in Alphabet while continuing to reduce its long-time Apple holdings, according to its latest SEC filing. The conglomerate revealed ownership of 17.85 million Alphabet shares as of September 30, making it Berkshire’s tenth-largest U.S. stock holding. The move is notable given Warren Buffett’s long-time hesitance toward tech companies, although Apple — which he views as a consumer products business — still remains Berkshire’s biggest investment at $60.7 billion.

The filing also confirmed that Berkshire slashed its Apple stake from 280 million to 238.2 million shares during the third quarter, meaning it has now sold roughly three-quarters of the more than 900 million Apple shares it once held. The company was again a net seller of stocks, selling $12.5 billion and buying $6.4 billion between July and September, while cash reserves climbed to a record $381.7 billion. Berkshire also trimmed its Bank of America position by 6%, exited homebuilder DR Horton, and increased holdings in firms such as Chubb and Domino’s Pizza.

This disclosure marks the last major portfolio update before Buffett hands over the CEO role to Greg Abel on January 1, closing out his 60-year leadership. Buffett and the late Charlie Munger had previously expressed regret about not investing in Google earlier, even noting similarities between its ad business and Berkshire-owned Geico’s model. The new stake sent Alphabet shares up 1.7% in after-hours trading, as markets often interpret Berkshire’s moves as a sign of confidence.

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