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1. LVMH results better than expected.

The magnitude of the beat in Q3 - as well as the earnings upgrade for 2025 and 2026 - is relatively modest at +1%. Still, Q3 results should provide reassurance that the worst is now behind us and that the top line should turn positive in 2026.

Interestingly, the sequential improvement in 3Q25 was mostly driven by Chinese, Korean and SE Asian nationals, rather than by US nationals. Secondly, the results should be taken well because the Group's top line beat in 3Q was relatively broad-based by division (all five divisions beat market expectations) and by geography. Thus, we expect the positive share price reaction tomorrow to be mostly driven by a re-rating with the stock trading at only 21.8x P/E.

Below: The euro has climbed 12% this year against the dollar. That’s a burden on margins for luxury manufacturers, who have their costs based in the common currency, but generate most revenue outside of Europe.

2. The US needs more clean energy, says JPMorgan.

“The US will struggle to generate the energy it needs to power growth in its tech industry without including wind and solar, according to JPMorgan Chase & Co.’s global head of sustainable solutions.”

The concern with nuclear is that it “takes years to come on stream,” Umunna said. So “renewables are an essential part of the answer.” Against that backdrop, renewable stocks have seen a rebound this year, with energy security driving valuations. “The nature of the debate has really changed,” he said. It’s not just climate and the environment, but rather, “how do you become self sufficient,” Umunna said.

3. What is the “New Energy Security Age”?

The New Energy Security Age is the emerging geopolitical era in which access to, control over, and resilience of energy systems have become primary determinants of national power and economic competitiveness. In this age, energy continues to be a front-line instrument of statecraft, shaping alliances, trade flows, and even conflict, but in new, more complicated ways as the landscape shifts from the dominance of hydrocarbons and demand skyrockets to meet new technologies.

4. The weaponization of critical mineral supply chains.

Critical minerals and renewable resources are not just traded commodities, they are strategic levers in a broader geopolitical contest that defines the New Energy Security Age. 

In the New Energy Security Age, control over both minerals and money translates into geopolitical leverage. The emergence of new technologies for energy, AI, and defense has introduced a new set of supply chains forming strategic advantages and vulnerabilities. Various competitive technologies—including chips, semiconductors, quantum, defense, space, battery storage, wind power, and nuclear—depend on the mining and refining of critical minerals, many of which are concentrated in fragile or geopolitically-contested regions.

China’s announcement of stricter export controls on rare earths is a tactical escalation to shape the bargaining process.

Below: China accounts for large shares in global rare earth mining production and reserves

5. AI dominance means securing energy dominance.

Energy is at the center of the next wave of technological innovation and rivalry. Training large models on high performance computing systems requires immense volumes of stable power—measured in gigawatts—to function reliably, triggering new investment in high-capacity grids and data center power sourcing. From Pennsylvania’s new nuclear-backed AI data clusters to Abu Dhabi’s 5GW AI megapark, energy is now the limiting factor in digital power.

The International Energy Agency predicts global data center demand could reach 945,000 GWh (~108 GW per year) by 2030, exceeding the entire nation of Japan’s current electricity consumption.

Below: China leads the world in terms of both overall energy production and specifically electrical output.

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