Japan's central bank raised its rate to 1.25%, its highest since 1995. Two of its nine members voted no, and the yen fell.

The stories

24 stories on this beat today.

Every story told the same way: what happened, who is involved, why it matters, how it works, the truth and the good news.

1. 01

   Japan's central bank raised its rate to 1.25%, its highest since 1995. Two of its nine members voted no, and the yen fell.

   1.25%

   Japan's main interest rate from Friday, up from 1%

   the highest since 1995 [3]

   7 of 9

   Bank of Japan board members who voted for the rise

   both members against were appointed this year by Prime Minister Takaichi [1]

   156.64

   yen per US dollar just after the decision

   the yen weakened 0.45% on a rate rise [1]

   1.25% vs 3.75-4%

   Japan's rate against the US rate after both rose this week

   a wider gap could weaken the yen further, analysts told Reuters [3]

   What happened

   • The Bank of Japan, the country's central bank, raised its main interest rate on Friday from 1% to 1.25%. [3][4]
   • That is Japan's highest rate since 1995, about 31 years ago. [3][8]
   • It came three months after the last rise, in June.
   • Until now the bank had been raising about twice a year. [3][10]
   • Seven of the nine board members voted for it.
   • The two against, Toichiro Asada and Ayano Sato, were appointed this year by Prime Minister Sanae Takaichi. [1]
   • Takaichi prefers low interest rates and big government spending. [1]
   • Analysts read the two votes against as a sign that Japan's government still leans against rate rises. [2]
   • The bank said it acted because inflation could rise above its 2% target. [1]
   • Its statement named the weak yen, AI-related demand, and wages and prices pushing each other up. [2]
   • The yen fell after the decision instead of rising.
   • It weakened 0.45%, to 156.64 per US dollar. [1]
   • Traders had already expected the rise: money markets put its chance at 83% the day before. [6]
   • Analysts said the yen moved on the two votes against, not on the rise itself. [2]
   • Japan's rate is still far below others.
   • The US central bank's rate is 3.75% to 4% after Wednesday's rise, and Europe's central bank is at 2.5%. [3]
   • A weak yen makes everything Japan imports dearer.
   • Its trade deficit passed 1 trillion yen in August, partly because it now buys pricier US oil instead of Middle East oil. [1]
   • Prices in Japan, leaving out fresh food, rose 1.7% in the year to August. [10]
   • They have stayed under 2% for eight months, partly because government subsidies hold down utility bills. [10]
   • Scott Bessent, the US treasury secretary, pressed Japan for months to raise rates and spend less, Reuters reports. [11]
   • In a June 22 phone call he tied US help for the yen to it. [11]
   • The US and Japan bought yen together on 31 July, lifting it off a 40-year low near 164 per dollar. [5]
   • Analysts polled by Reuters expect 1.5% by the end of March and 1.75% by mid-2027. [3]
   • Several expect the next rise in December. [2]

   Who is involved

   • Kazuo Ueda governor of the Bank of Japan, Japan's central bank; it raised rates on his board's 7-2 vote
   • Sanae Takaichi Japan's prime minister, who favours low rates and big spending; she appointed both members who voted against [1]
   • Toichiro Asada and Ayano Sato the two Bank of Japan board members who voted against the rise [1]
   • Scott Bessent the US treasury secretary, who runs the US government's finances; he pressed Japan to raise rates and spend less [11]

   How it unfolded

   1. June the Bank of Japan raises its rate to 1% [10]
   2. 22 June Bessent ties US help for the yen to Japan changing its policies, Reuters reports [11]
   3. 31 July the US and Japan buy yen together, off a 40-year low near 164 per dollar [5]
   4. Wed 16 Sep the US central bank raises to 3.75% to 4% [9]
   5. Thu 17 Sep the Bank of England holds at 3.75% [12]
   6. Fri 18 Sep the Bank of Japan raises to 1.25%, and the yen falls [1]

   Why it matters

   Watch what Governor Ueda says about the pace of the next rises: several analysts expect one in December, and the yen moved on that question, not on Friday's rise. [2][6]

   How it works

   Why a central bank lets the first price rise pass and fights the second

   Dearer oil lifts prices once; central banks raise rates when shops and workers start raising prices and pay to catch up.

   The twist

   A rate rise does nothing to the oil price, so central banks aim it at the next step: shops and workers raising prices and pay to catch up.

   Step by step

   1. 1 The war makes oil and gas dearer, and prices jump once
   2. 2 On its own, a one-time jump stops adding to inflation after a year
   3. 3 But shops may raise their own prices to cover costs, and workers ask for pay rises to keep up
   4. 4 Higher pay then pushes prices up again, and the rise keeps going
   5. 5 So a central bank raises rates to slow spending and hiring before that second round starts

   The same force, elsewhere today

   Where this chain is also running, in today's other stories.

   • Britain's central bank holds, and stops selling long bonds

     Most members held because they see few signs yet that dearer energy is spreading into how British firms set prices and pay, and said they will raise if it does.

   • Japan's rate rise

     The Bank of Japan's statement named wages and prices pushing each other up, next to a weak yen that makes every import dearer, as reasons to raise now.

   • US borrowing costs ease after the rate rise

     The US central bank raised even though the oil jump may be temporary, and one investor pointed out that US inflation has now been above target for over five years.

   Where you've seen this

   Office pay rounds

   one team gets a raise, and every other team asks for the same

   Restaurant menus

   a supplier's price rise is passed on, then staff need more pay to afford the same meals

   Rents

   one landlord raises the rent, and the next flat is advertised at the new level

   The catch

   Waiting has a risk: by the time the second round shows up in the figures, it has already started, which is why the Bank of England said it should not wait too long.

   And the whole of it

   The loop is made of ordinary choices: a shop owner pricing next month's stock, a worker asking for a raise, a bank setting a rate. Each of them sees their own decision and not the thousands being made at the same time.

   The truth

   • What is really going on Japan's central bank raised its rate while two board members chosen by Prime Minister Takaichi voted against it, and Reuters reports that the US treasury secretary spent months privately pressing Japan to raise rates and spend less. [1][11]The yen fell anyway, because traders read the two votes against as a sign that Japan's government still wants rates kept low. [2]
   • Why it works on people A phrase like a 31-year high sounds dramatic, which makes it easy to miss that Japan's new 1.25% is still less than a third of the US rate. [3]
   • Who gains The US Treasury, which sells US government debt — Scott Bessent wants a steadier yen and less risk of Japan selling US government bonds, of which it is the largest foreign holder, Reuters reports. [11] Higher Japanese rates were one of the steps he pressed for. [11]
   • Who pays Japanese households and firms that buy imports — The yen fell again after the rise, and Japan now pays for pricier US oil, which pushed its trade deficit past 1 trillion yen in August. [1]
   • Nobody knows yet

     How fast Japan raises rates from here.

     The bank's statement gave no pace. Analysts at TD Securities expect the next rise in December, and a Daiwa economist expects roughly one every three months. [2] Reuters' poll puts the rate at 1.5% by the end of March. [3]

   • Nobody knows yet

     Whether Japan's government keeps leaning on its central bank.

     Two of the nine board members are now Takaichi appointees, and one economist said new appointments could make future rises harder. [2] Takaichi's office declined to comment to Reuters. [11]

1. 02

   Britain's central bank holds, and stops selling long bonds

   What happened

   • The Bank of England, Britain's central bank, kept its main rate at 3.75% on Thursday in a 6-3 vote. [12]
   • The three who voted against wanted 4%. [12]
   • It now expects inflation to reach slightly over 4% early next year, up from a forecast peak of 3.2%. [12]
   • It also paused its active sales of government bonds for six months, and stopped selling long-dated ones entirely. [16]
   • Governor Andrew Bailey said rates may have to rise if the Middle East war lasts. [13]
   • Markets now expect a rise to 4% at the next meeting, on 5 November. [15]

   Why it matters

   Britain's central bank is now the one big bank still holding, after the US, Europe and Japan raised. [14]

   Most of its members see few signs yet that dearer energy is spreading into everyday prices, and that is what they are watching. [17]

   How it works

   Most members held because they see few signs yet that dearer energy is spreading into how British firms set prices and pay, and said they will raise if it does.

   The idea, in story 01: Why a central bank lets the first price rise pass and fights the second →

   The truth

   • Who pays British households — The average home energy bill rises about 4% next month, and the central bank now expects inflation to pass 4% early next year. [14][12]
   • Nobody knows yet

     Whether Britain's central bank raises in November.

     Markets price a rise to 4% on 5 November and about four rises by July 2027. [15] Governor Bailey said his committee did not even discuss four rises, and the UK budget on 28 October comes first. [16][15] One strategist said the bank cannot raise rates into a price rise caused mainly by an energy shortage. [18]

2. 03

   US borrowing costs ease after the rate rise

   What happened

   • The US central bank raised its rate on Wednesday by a quarter point, to a range of 3.75% to 4%, in a 12-0 vote. [9]
   • On Thursday the US ten-year borrowing rate fell back below 5%, to 4.946%. [24]
   • Investors said the rise made them trust the bank to bring inflation down. [19]
   • Traders put the chance of another rise in October at about 53%. [20]
   • President Donald Trump attacked the rise and demanded rates of 1% or less. [22]
   • Company finance chiefs began asking their banks to pay more on cash deposits. [53]

   Why it matters

   The ten-year rate is what the US government pays to borrow for ten years, and this week it passed 5%, its highest level since 2007. [7]

   One economist said traders had overreacted on Wednesday and now expect one more rise, not three. [21]

   How it works

   The US central bank raised even though the oil jump may be temporary, and one investor pointed out that US inflation has now been above target for over five years.

   The idea, in story 01: Why a central bank lets the first price rise pass and fights the second →

   The truth

   • Nobody knows yet

     Whether the US raises again in October.

     Traders put the chance at about 53%. [20] Chair Kevin Warsh gives no guidance on the next move, and many traders now look to December, after the 3 November midterm elections. [9]

3. 04

   Oil falls a third day as Saudi Arabia ships around a broken pipeline

   What happened

   • Brent crude, the global benchmark, fell 1% to $103.77 a barrel early Friday. [28]
   • It had fallen on Wednesday and Thursday too. [32]
   • Saudi Arabia's East-West pipeline to its Red Sea port of Yanbu has been shut since drone attacks last week. [28]
   • Satellite images show three of its pumping stations were damaged. [28]
   • Saudi Arabia is loading crude onto ships off Oman's coast instead, and aims to restore half the pipeline's capacity within days. [28][31]
   • Oil stored at Yanbu fell below 15 million barrels, from about 21 million in July. [30]

   Why it matters

   A long closure could cut up to 4% of the world's oil, traders said. [28]

   An analyst at the broker XS.com said the fall reflects a smaller risk of losing supply, not more oil being pumped. [29]

   The truth

   • Nobody knows yet

     How long Saudi Arabia's East-West pipeline stays shut.

     Sources gave Reuters varying estimates. A Bloomberg report said half its capacity could return within days, while satellite images show three pumping stations damaged, one more than first thought. [28]

   Good news

   • Oil fell for a third day after Saudi Arabia began loading crude onto ships off Oman, around its damaged pipeline.
4. 05

   The pound sits at a two-and-a-half-month low

   What happened

   • The British pound was flat at $1.3359 on Friday, its lowest in two and a half months. [6]
   • It fell about half a cent when the Bank of England held rates and paused its bond sales on Thursday. [12]
   • The euro was at $1.148, heading for a 1% fall this week, its biggest weekly drop since June. [7]
   • The dollar index, which measures the dollar against six major currencies, was at 100.21. [6]
   • It had just edged back from its highest in two and a half months. [6]

   Why it matters

   A currency tends to lose value when its central bank looks slower to raise rates than others. [8]

   A strategist at Monex Europe said the pound could weaken further if the Bank of England does not raise in November. [8]

5. 06

   Wall Street has its best day in six weeks

   What happened

   • US shares had their biggest one-day rise in six weeks on Thursday, led by technology companies. [24]
   • The Nasdaq, heavy in tech firms, rose 1.7%, and the S&P 500 index of large companies rose 1.1% to 7,637.76. [24][25]
   • The S&P 500's technology sector rose 2.2%, and the rise ended a three-day losing run. [27]
   • Fluence Energy, which makes batteries for power grids, fell 18% before trading began after cutting its sales forecast. [26]
   • On Friday, Japan's Nikkei rose 0.9% and South Korea's KOSPI 2%. [7]

   Why it matters

   Falling oil took pressure off US borrowing costs the same day. [24]

   High rates on safe government debt make shares look less attractive, and before Thursday the S&P 500 had lost 1.7% in September. [26]

6. 07

   Traders expect little turmoil at a 5% US rate

   What happened

   • Options, which are bets on future moves, show traders expect calm in US ten-year borrowing costs, Reuters reports. [23]
   • They price swings of about 0.8 of a percentage point over a year. [23]
   • That compares with about 1.3 when the rate last neared 5%, in October 2023. [23]
   • Amrut Nashikkar of Barclays, a British bank, said most of the rise reflects higher expected short-term rates, not fear about US debt. [23]
   • Company profit margins sit near 17%, the highest in about 30 years, one fund manager said. [23]

   Why it matters

   In 2023 the rate fell back quickly from 5%. [23]

   This time traders are betting it stays high because the economy looks strong enough to carry it. [23]

7. 08

   JPMorgan says it has no clear view on oil

   What happened

   • JPMorgan, the biggest US bank, told clients it has no clear baseline for the oil market. [33]
   • It is the first time it has said so since the US-Israeli war on Iran began. [33]
   • It puts the fair value of a barrel of Brent at about $90 for September, against prices near $106 when it wrote. [33]
   • It says world stocks of crude and fuel have fallen about 555 million barrels since the war began, a third of what it expected. [33]
   • US diesel hit a record $6.31 a gallon. [33]

   Why it matters

   The bank says the world absorbed the lost supply mostly by using less oil, not by draining stored oil. [33]

   Demand has run about 4.4 million barrels a day below last year, which is why Brent has averaged $94 since the war began. [33]

   The truth

   • Who pays People and firms in the US that run on diesel — Diesel hit a record $6.31 a gallon going into winter, with stocks at record lows. [33]
   • Nobody knows yet

     What a barrel of oil is really worth right now.

     JPMorgan puts fair value near $90 against prices above $100, and in the same note says it has no clear baseline for the market at all. [33][28]

8. 09

   Goldman says AI and governments compete for savings

   What happened

   • Peter Oppenheimer, Goldman Sachs's chief global equity strategist, published a note on Thursday called Competition for Capital. [34]
   • He says companies borrowing to build AI data centres and governments borrowing for defence and energy are chasing the same savings. [34]
   • Spending on buildings and equipment by top-rated tech firms grew 65% in a year to the second quarter. [34]
   • Goldman raised its forecast for top-rated US company bond sales this year by $200 billion, to a record $2.3 trillion. [34]
   • AI-related borrowers make up a quarter of that. [34]

   Why it matters

   When more borrowers compete for the same savings, lenders can charge more, which he gives as one reason long-term rates have risen worldwide. [34]

   He still says tech profits and company finances are strong. [34]

9. 10

   Next raises its profit forecast, but sees slower sales

   What happened

   • Next, one of Britain's biggest clothing chains, raised its full-year profit forecast on Thursday by 12 million pounds, to 1.26 billion pounds. [35]
   • First-half pre-tax profit rose 11% to 566 million pounds, and revenue rose 9.6% to 3.45 billion pounds. [35]
   • It cited slightly higher sales and savings, mostly in its warehouses. [36]
   • But it cut its forecast for UK sales growth in the second half to 2.0%, from 2.8%. [35]
   • It expects a slow and steady fall in shoppers' spending, not a sudden one. [35]

   Why it matters

   Next is watched as a guide to how British shops are doing. [36]

   It raised its profit forecast mostly through savings, while lowering its hopes for UK sales in the second half. [35][36]

10. 11

    Lennar cuts its target for homes

    What happened

    • Lennar, one of the biggest US housebuilders, cut its target for homes delivered this year. [37]
    • It blamed pressure from interest rates and a worsening housing market. [37]
    • Its revenue and profit fell in the third quarter. [37]
    • Its shares fell before trading began but closed 1.7% higher. [37]

    Why it matters

    Lennar named interest rates as a cause. [37]

    A higher rate makes each monthly home-loan payment bigger, so fewer buyers can afford a new house.

    Lennar's cut came one day after the US central bank raised its rate. [9]

    The truth

    • Who pays US home buyers — Lennar, one of the biggest US housebuilders, cut its target for homes delivered because of interest-rate pressure. [37]
11. 12

    Middle East investors can own most of Paramount-Warner

    What happened

    • The US Federal Communications Commission, which licenses broadcasters, approved foreign investment in Paramount Skydance's takeover of Warner Bros.
    • Discovery. [39]
    • It said Middle Eastern investors could own about 85% of the combined company's shares. [39]
    • That includes 15.1% for Saudi Arabia's Public Investment Fund, its state investment fund. [39]
    • Larry Ellison's family and RedBird Capital would hold all of the voting shares. [39]
    • A judge has paused the deal until a trial in March on a challenge by a dozen US states. [39]

    Why it matters

    Anna Gomez, one of the commissioners, said the approval lets repressive governments indirectly control much of a major US media company. [39]

    The FCC approval does not end the court case. [39]

    The truth

    • Who gains Middle Eastern state investors, including Saudi Arabia's Public Investment Fund — The FCC cleared them to own about 85% of a combined Paramount-Warner, with 15.1% for the Saudi fund. [39]
    • Who gains Larry Ellison's family and RedBird Capital — They would hold all the voting shares of Paramount-Warner while others supply most of the money. [39]
    • Nobody knows yet

      Whether the Paramount-Warner deal closes, and who would control it.

      The FCC said Middle Eastern investors could own about 85% of the shares, but a judge has paused the deal until a March trial brought by a dozen US states. [39]

12. 13

    LVMH had a secret deal for Hermes shares

    What happened

    • Reuters reported that LVMH, the world's biggest luxury goods company, signed an agreement in 2002 to buy Hermes shares from Nicolas Puech. [38]
    • Puech is an heir of the family that founded Hermes, a rival luxury house. [38]
    • In a June court filing, LVMH denied ever trying to buy his stake. [38]
    • Puech says he was cheated out of his 6% stake, now worth billions, through schemes involving his late wealth manager, Eric Freymond. [38]
    • LVMH and its chairman's family company paid Freymond's firm at least $20 million between 2001 and 2009. [38]

    Why it matters

    LVMH secretly built up as much as 23% of Hermes before a truce in 2014. [38]

    The documents bear on a Paris court case over where Puech's shares went. [38]

    The truth

    • Nobody knows yet

      Where Nicolas Puech's Hermes shares went.

      LVMH denied in a June filing that it ever tried to buy them, and documents Reuters reviewed show a 2002 agreement to do so. [38] The Paris courts have not ruled. [38]

13. 14

    US lends up to $414 million for Niger's uranium

    What happened

    • The US International Development Finance Corporation, a government lender, approved up to $414.2 million in loans for the Dasa uranium mine in Niger. [44]
    • The mine is 80% owned by Global Atomic, a Canadian miner, and 20% by Niger's government. [44]
    • About 90% of the uranium it has already agreed to sell goes to US power companies. [44]
    • Niger ended its military ties with the US after a 2023 coup, and US troops left in 2024. [44]
    • Global Atomic said not all the money is available yet. [44]

    Why it matters

    Uranium fuels nuclear power stations, and the US added it to its list of critical minerals in 2025. [44]

    Niger has moved closer to Russia on security since the coup. [44]

    The truth

    • Who gains US nuclear power companies — About 90% of the uranium the Dasa mine in Niger has already agreed to sell is going to them, and a US government lender approved up to $414.2 million for it. [44]
    • Nobody knows yet

      How much of the $414 million for Niger's uranium mine is paid out.

      Global Atomic said the US lender's approval does not make the whole sum available at once. [44]

14. 15

    DNO switches its Capricorn offer to all cash

    What happened

    • Capricorn Energy, a London-listed oil and gas company, agreed on Thursday to new terms for a $396 million takeover by DNO, a Norwegian oil firm. [40]
    • DNO will now pay $5.214 a share in cash. [41]
    • Its earlier offer was $4.224 in cash plus $0.99 in dividends. [41]
    • Capricorn accepted the first offer this month, and a rival bidder, Genel Energy, then withdrew. [40]
    • DNO already works with Genel in Iraq's Kurdistan region. [40]

    Why it matters

    Higher oil prices since the war on Iran began have let oil firms working in the Middle East buy more companies, Reuters reported. [41]

    Capricorn's owners now get the whole price in cash. [41]

    The truth

    • Who gains Capricorn Energy's shareholders — DNO switched its offer to $5.214 a share, all in cash, instead of part cash and part dividends. [41]
15. 16

    Carlyle and CVC buy BauWatch

    What happened

    • Haniel, a German family-owned investment group, agreed to sell most of BauWatch to the buyout firms Carlyle and CVC. [42]
    • BauWatch is a Dutch company that guards building sites and factories with cameras and alarms. [42]
    • The deal values it at about 1 billion euros, two sources said. [42]
    • Carlyle and CVC will each own 45%, and Haniel keeps 10%. [42]
    • BauWatch's revenue grew from 59 million euros to 153 million since Haniel bought it in 2021. [42]

    Why it matters

    Haniel says the money, along with a planned sale of its stake in the electronics retailer Ceconomy, will strengthen its finances. [42]

    Carlyle said BauWatch already leads in Germany and the Benelux countries and can grow across Europe. [42]

16. 17

    S&P Global buys OpenZeppelin

    What happened

    • S&P Global, which rates how safe companies' and governments' debts are, agreed to buy OpenZeppelin. [43]
    • OpenZeppelin, founded in 2015, checks the security of code used in crypto finance. [43]
    • It also publishes a widely used free library of code for self-running agreements on blockchains. [43]
    • That code has carried more than $37 trillion of transfers, including most of the biggest stablecoins, digital tokens tied to the dollar. [43]

    Why it matters

    S&P Global says it wants to rate the risk in the code itself as banks and funds move onto blockchains. [43]

    The deal adds code-security reviews to the work S&P Global already does rating the debts traded on those blockchains. [43]

17. 18

    Siguler Guff raises $3 billion for small buyouts

    What happened

    • Siguler Guff, a New York investment firm, raised $3 billion for a fund that backs the smallest private-equity deals. [45]
    • Private-equity funds buy whole companies, usually with borrowed money. [46]
    • The fund beat its $2.2 billion target, and the $1.97 billion its last fund raised in 2022. [45]
    • It includes $700 million in separate accounts for single investors. [45]

    Why it matters

    The Wall Street Journal's buyout newsletter said the US rate rise will be hardest on companies these funds own that borrowed at floating rates when money was cheap. [46]

    Investors are still putting money in anyway. [45]

    The truth

    • Who pays Companies owned by buyout funds that borrowed at floating rates — Their interest bills rise with each rate rise, the Wall Street Journal's buyout newsletter said. [46]
18. 19

    Allegro raises its forecast

    What happened

    • Allegro, a Polish online marketplace, raised its forecast for 2026 on Thursday. [47]
    • It now expects the value of goods sold on its sites to grow 13% to 15%. [47]
    • Sales on its sites in Czechia, Slovakia and Hungary roughly doubled in the first ten weeks of the third quarter. [47]
    • In Poland they grew 12% in the second quarter, more than three times as fast as all shops. [47]
    • Its buy-now-pay-later service, Allegro Pay, lent 4.5 billion zlotys in the quarter, up 35%. [47]

    Why it matters

    Allegro expects its foreign sites to break even in 2029. [47]

    A sixth of what shoppers bought on it in the second quarter went on Allegro Pay. [47]

19. 20

    LPP's profits jump

    What happened

    • LPP, the Polish company behind the Reserved, Sinsay, House and Cropp clothing chains, said second-quarter revenue rose 18%. [48]
    • Its profit before interest, tax and depreciation reached 1.7 billion zlotys, up 40% to 50%. [48]
    • Net profit was nearly 800 million zlotys. [48]
    • Its gross margin, the share of each sale kept after the cost of goods, rose to 57.7%. [48]
    • It raised its full-year margin forecast to 56.5% to 57%. [48]

    Why it matters

    LPP says part of the wider margin came from a strong Polish zloty, which makes the clothes it buys abroad cost less in its own money. [48]

    Next and LPP, two big European clothing chains, both reported higher profits on Thursday. [35][48]

20. 21

    Mavi earns more on flat sales in Turkey

    What happened

    • Mavi, a Turkish jeans and clothing maker, said profit before tax rose 117% in its second quarter. [49]
    • First-half revenue fell 1.1% to 25.8 billion lira, and it cut its full-year revenue forecast. [49]
    • It described persistent inflation, weak buying power and heavy discounting in Turkey. [49]
    • It approved a second share buyback worth 1 billion lira, and its shares rose 7.8%. [49]

    Why it matters

    Mavi says it raised profit by planning stock carefully, sourcing flexibly and holding prices. [49]

    Its sales in Turkey barely grew because shoppers there have less to spend. [49]

21. 22

    Revolution Beauty swings to a profit

    What happened

    • Revolution Beauty, a London cosmetics company, expects a profit of at least 2 million pounds before interest, tax and depreciation for the six months to August. [50]
    • A year earlier, counted the same way, it lost 12.5 million pounds. [50]
    • Its gross margin rose by more than 10 percentage points, and online sales rose 22%. [50]
    • It has made that profit every month for a year. [50]
    • Its shares rose 11%, to 4.72 pence. [50]

    Why it matters

    The company says it is trading comfortably ahead of what the market expected. [50]

    It publishes full half-year results on 27 October. [50]

    Good news

    • Revolution Beauty, a London cosmetics company, expects a profit of at least 2 million pounds before interest, tax and depreciation for the six months to August. On the same measure it lost 12.5 million pounds a year earlier.
22. 23

    Advicenne makes its first-ever profit

    What happened

    • Advicenne, a small French drug company for rare kidney diseases, reported a net profit of 4.6 million euros for the first half. [51]
    • It is the first profit in its history. [51]
    • Much of it came from one-off items: an old provision released, and compensation for discounts given while its drug was in early use. [51]
    • Sales volumes of its medicines Sibnayal and Likozam in France rose 41% and 13%. [51]

    Why it matters

    The rise followed a price agreement with France in May, which made the two medicines easier for patients there to get. [51]

    Its day-to-day operations still lost 1.61 million euros. [51]

    Good news

    • After France agreed a price in May for Advicenne's two medicines for rare kidney diseases, sales volumes in France rose 41% and 13%. The small French drug maker reported a profit for the first time in its history.
23. 24

    Bytes raises its forecast

    What happened

    • Bytes, a British seller of software and cloud services, raised its forecast for the year, and its shares jumped more than 10%. [52]
    • It now expects gross profit to grow in the low-to-mid teens, up from high single digits. [52]
    • Gross invoiced income rose about 19% in the six months to August. [52]
    • Operating profit rose only about 6%, held back by tech spending and a return to normal bonuses. [52]

    Why it matters

    Sam Mudd, its chief executive, said AI is becoming a bigger part of what drives its sales. [52]

    Its full half-year results come on 13 October. [52]