Daily market update: FTSE 100 pulls back, talk of YouTube deal with the BBC

Investors have been kept on their toes year-to-date with non-stop geopolitical issues, and mixed messages from the business world. A quieter day on the corporate reporting calendar gave investors a chance to catch their breath and take stock of events.

European indices quietened down, with small losses in the UK, France, Spain, and Germany. Asia was mixed, while futures prices point to a positive but unspectacular day on Wall Street.

Gold miners and defence stocks have been winning trades year-to-date, repeating a trend that ruled in 2025. Investors have felt reassured parking their money in these areas given a backdrop of uncertainty and geopolitical tensions. At some point, they will need to think more about what could unfold in 2026 and where best to put their money.

AI will remain one of the dominant focus points for investors as the narrative goes deeper into the ‘when and how much’ regarding financial returns. The mega cap tech stocks haven’t shone so far this year, but it’s too early to say if that is a sign of things to come.

The one exception is Alphabet which is up 6.2% year-to-date, more than four times the return of the S&P 500 (+1.5%) and the Nasdaq Composite (+1.2%). Alphabet is increasingly seen as the new AI champion thanks to success with its Gemini system and striking a lucrative deal with Apple.

Alphabet / YouTube / BBC

Alphabet is seeing success on multiple levels, including its YouTube video platform which Brits now watch more than the BBC.

That’s a remarkable achievement given how engrained the BBC has been in people’s lives for decades as one of the primary sources of entertainment and information.

It’s a sign of the times that YouTube is now more popular, offering content made by both professionals and amateurs.

The BBC has been fighting to stay relevant for some time, and it looks like the broadcaster has decided it is better to embrace opportunities with rivals rather than fight them.

Reports suggest the BBC will begin to make shows for YouTube in a move that could also see it enjoy advertising income.

This makes sense as it is a way for the BBC to show off its content creation skills and generate additional income beyond the licence fee.

The BBC has no choice but to adapt to the constantly evolving media landscape, yet such a move will stoke the debate about licence fees and whether it’s time to consider a new funding model.