Daily US Equity Opening News - TSM profit surges amid AI chip demand; ELV report disappoints; GE beats; UNP explores potential rival bid

TODAY’S AGENDA:

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  US INDEX FUTURES: ES +0.1%, NQ +0.2%, YM -0.1%, RUT -0.1%


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  DAY AHEAD: The US includes US Business Inventories for May, and NAHB housing market data are due. The Atlanta Fed GDPNow tracker will be updated in wake of today’s data (currently at 2.6%). Today’s speakers include: Fed’s Kugler (voter; text only), Fed’s Daly (2027 voter, giving an interview to Bloomberg TV), Fed’s Cook (voter), and Fed’s Waller (voter; text and Q&A due), who will speak on the economy. On the supply slate, the US will announce sizes for next week’s 20yr and 10yr TIPS supply. Notable corporate earnings due today include: NFLX, IBKR.


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  BROKER MOVES: AFRM resumed with 'Buy' coverage at Deutsche Bank, PYPL downgraded; SBUX downgraded at Jefferies. For the full list, click here.
  


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  MAJOR MORNING MOVES RECAP: TSM, ELV, GE, PEP, UAL, SRPT, USB, MMC, UNP, ALB/SQM, ADM/INGR, MP. For the full list, click here.
  


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  US DAILY CONFERENCE CALENDAR: ANET, GILD, EQIX, BDX, SPGI, AMZN, DOW, MSFT. For the full list, click here.
  

TRADE

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  Fentanyl - President Trump signed the Halt All Lethal Trafficking of Fentanyl Act, increasing criminal penalties for fentanyl trafficking. He called it a historic step against drug dealers and cartels, highlighting efforts to tackle the public health crisis from the opioid epidemic. China’s foreign ministry responded to Trump’s remarks, stating that the responsibility for the fentanyl problem lies with the US. It added that US fentanyl tariffs have seriously impacted drug control cooperation, and urged the US to face objective facts if it sincerely wants to cooperate with China.


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  US-China - A record low of fewer than 50% of US firms surveyed by the US-China Business Council plan to invest in China in 2025, down from 80% last year, reflecting worsening trade ties and tariff pressures, Bloomberg reports. It marks the lowest investment intent since the survey began in 2006. Separately, US President Trump said China has been helping with fentanyl.


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  US-Japan - Japanese trade negotiator Akazawa spoke by phone with US Commerce Secretary Lutnick, with both countries reaffirming their positions on US tariffs and engaging in detailed discussions. Separately, Japan’s exports fell 0.5% in June Y/Y (exp. +0.5%), as declines in car and steel shipments reflect pressure from US tariffs. The drop marks a second consecutive month of falling exports, increasing concerns about a potential technical recession for Japan’s economy.


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  US-Canada - Canadian PM Carney said work continues on a US trade deal beneficial for Canadian workers, but no deal is currently on the table. Canada will reduce tariff-rate quota levels for steel products from non-free trade agreement countries from 100% to 50% of 2024 volumes.


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  US-UK - The UK is urging the US to ease domestic production rules blocking a trade deal to reduce US tariffs on British steel. The UK wants steel imported from EU countries like the Netherlands, then processed in the UK, to qualify as British-made, allowing tariff-free US exports for producers like Tata Steel UK, which lacks its own furnace.


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  US-Brazil - A US trade probe ordered by President Trump into Brazil’s export restrictions has sharply damaged relations, described by Lula’s top Foreign Policy Adviser, Celso Amorim, as an unwarranted threat that has plunged ties to their lowest point in over a century.


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  US-India - US President Trump said they are very close to an India tariff deal.

MACRO

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  Federal Reserve - On Wednesday, reports via CBS stated that US President Trump reportedly drafted a letter to fire Fed Chair Powell and discussed it with House Republicans. However, Trump later denied plans to remove him, saying it’s unlikely unless fraud occurs, though he continued his criticism of the central bank, stating that the Fed board is not doing its job. Trump said he would welcome Powell’s resignation but warned firing him could disrupt markets.

EQUITY NEWS:

TECH

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  TSMC (TSM) Q2 2025 (TWD): Net profit rose +60.7% Y/Y to 398.3bln (exp. 377.9bln), a record high, driven by strong demand for AI chips from clients including Apple (AAPL) and Nvidia (NVDA). Gross Profit 547.4bln (vs 358.1bln Y/Y), income from operations 463.4bln (vs 286.6bln Y/Y), and income before tax 493bln (vs 306.3bln Y/Y); the company also posted a 39% revenue increase, reinforcing confidence in ongoing global AI investment momentum. Outlook (USD): Q3 revenue 31.8-33.0bln (exp. 30.7bln), Q3 operating margin 45.5-47.5% (down from Q2’s 49.6%), and gross margin 55.55-57.5% (vs Q2’s 58.6%). TSMC guided FY25 revenue to increase by +30%, up from prior mid-20s% expectations, with capex steady at 38-42bln. TSMC is more cautious on the Q4 outlook due to tariffs and uncertainties. The company has not yet received confirmation on Nvidia (NVDA) H20 shipments, but views its ability to ship to China as positive news. Commentary: Exec said TWD appreciation is expected to reduce gross margin significantly. Chip demand remains robust with no change in customer behaviour despite tariff risks. About 30% of N2 capacity will be in Arizona eventually. Japan’s second fab construction starts later this year, Dresden fab operates smoothly, and 11 wafer fabs are planned in Taiwan. N2 volume production is on track for H2 2025.


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  NVIDIA (NVDA) - NVIDIA CEO praised DeepSeek and China’s AI advancements during a Beijing visit, highlighting the global value of open-source Chinese AI models. He spoke at the International Supply Chain Expo alongside former Alibaba (BABA) executive Wang Jian, who helped found the company’s cloud division.


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  OpenAI - Announced it has included Google Cloud (GOOG) among its suppliers to meet escalating demands for computing capacity.


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  SK Hynix (HXSCL) - Overnight, SK Hynix shares fell up to 8.8% after Goldman Sachs downgraded the Korean chipmaker to neutral from buy, citing rising competition risks. This is Goldman’s first downgrade of SK Hynix in over three years. GS expects high bandwidth memory prices to decline in 2026 due to rising competition, posing a downside risk for SK Hynix shares. The downgrade is also weighing on Micron (MU) shares in the premarket.


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  Anthropic - OpenAI rival Anthropic is reportedly planning a funding round that could value it at over USD 100bln, according to Bloomberg. Although not formally fundraising, the company has received pre-emptive investment offers from venture capitalists at this valuation, reflecting strong investor interest in top AI firms.


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  Uber (UBER), Lucid Group (LCID) - Uber to invest USD 300mln in Lucid as part of robotaxi partnership, via Bloomberg. Expected to first launch later next year in a major US city, and Uber aims to deploy 20,000 or more Lucid vehicles equipped with the Nuro Driver over six years. Meanwhile, Lucid initiated a plan for a 1:10 reverse stock split.


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  Payment, processors, IT - Deutsche Bank resumed coverage on 25 stocks in the payments, processors, and IT services industry with 9 Buys, 14 Holds, and 2 restricted ratings. The bank says both industries have materially underperformed the SPX YTD as investor expectations for 2025 increased around the November election, leading to an end-of-year run-up "that has since proven overly-optimistic". The firm says that with trade uncertainty and consumer spending concerns, the outlook for the group "is as cloudy as it has been in the last five years". The coverage includes resumed 'Holds' on Bill (BILL), PayPal (PYPL); resumed 'Buys' include Shift4 Payments (FOUR), Toast (TOST), Affirm (AFRM).

CONSUMER DISCRETIONARY

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  Amazon (AMZN) - A federal judge dismissed a class action lawsuit against Amazon over ads on Prime Video unless subscribers pay a USD 2.99/month opt-out fees. The judge ruled the ads were an authorised “benefit modification.” The change started in January 2024, despite subscribers claiming it breached agreements and consumer laws.


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  Evolution Gaming (EVVTY) - Revenue and EBITDA slightly exceeded expectations in Q2; Europe continued to experience negative growth, while North America showed strong momentum; it expects a stronger H2, and maintained its FY EBITDA margin guidance.


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  Automakers - The US will waive fuel economy penalties for automakers for model years 2022–2024 under a new law signed by US President Trump, benefiting firms like GM (GM) and Stellantis (STLA), Reuters reports. The move rolls back fines under the 1975 CAFE rules, and is expected to save automakers around USD 200mln, drawing criticism from environmental groups. Separately, Bloomberg reports that Trump’s nominee to lead the NHTSA, Jonathan Morrison, pledged to prioritise safety while facilitating faster deployment of self-driving cars; he supports creating rules that go beyond current voluntary guidelines to better regulate autonomous vehicle technology.


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  Tesla (TSLA) - A safety expert testified that Tesla has not done enough to prevent misuse of its Autopilot system, citing the owner’s manual as hard for drivers to access. The testimony relates to a 2019 fatal crash in Florida, highlighting concerns over Autopilot safety and driver understanding.


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  Volvo Car (VLVCY) Q2 2025 (SEK): EPS 3.64, Revenue 122.9bln, adj. operating income 13.5bln with 11% margin. Noted 4.5bln of battery-related costs, which weighed on results. Net truck orders were flat Y/Y at 47,761. The China construction equipment market is seen +5% to +15% in 2025. Exec said the North American freight market is in recession.


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  Swatch Group (SWGAY) - H1 net sales declined with a sharply lower operating profit and margin due to maintained production capacity and jobs in Switzerland; it noted early signs of improvement in China, especially in e-commerce and retailer inventories, which support expectations of better market conditions and production utilisation in H2.


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  Starbucks (SBUX) - Downgraded to 'Underperform' from 'Hold' at Jefferies. The firm says the stock has gotten ahead of "reasonable expectations for improving fundamentals", and its credit and debit card data, as well as foot traffic and app data, suggest downside to Q3 and Q4 US compare sales estimates. Jefferies argues Starbucks's "complex" people and operating issues could take longer than expected to make progress on.


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  Shake Shack (SHAK) - Downgraded to 'Underperform' from 'Hold' at Jefferies with a USD 120 PT (prev. 100). The firm says investor optimism around the company's near-term SSS recovery is more than reflected in the stock following the recent rally. Jefferies says the promotional environment, high expectations, and the stock's valuation warrant the downgrade.

INDUSTRIALS

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  United Airlines (UAL) Q2 2025 (USD): Adj. EPS 3.87 (exp. 3.78), Revenue 15.2bln (exp. 15.37bln). Q2 capacity +5.9% Y/Y, TRASM -4%, CASM-ex +2.2%. United saw a positive shift in demand beginning in early July and anticipates another inflexion in industry supply in mid-August. In early July, United saw a sequential 6-point acceleration in demand, and a double-digit acceleration in business demand vs Q2 on less geopolitical and macroeconomic uncertainty. However, Newark constraints remain a drag, and the Newark disruption cut Q2 margins by around 1.2pts. Domestic yields declined, and pricing is still weak. Outlook: United expects cost cuts and reduced unprofitable routes to support H2 fares. Sees Q3 adj. EPS between 2.25-2.75 (exp. 2.55); Expects to accrue between 175mln and 225mln in Q3 2025. Sees FY adj. total CAPEX less than 6.5bln; sees FY adj. EPS between 9.00-11.00 (exp. 9.89).


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  GE Aerospace (GE) Q2 2025 (USD): Adj. EPS 1.66 (exp. 1.44), Revenue 10.15bln (exp. 9.59bln); raised FY25 guidance. Commentary: To increase capital returns from 2024-2026 by 20%, to 24bln; Expecting to sustainably return at least 70% of free cash flow via dividend and buybacks beyond 2026. CEO Culp said they can't offset all the tariff pressure themselves, is having conversations with airlines in that regard; Co. is making progress on mitigating tariff costs; Continue to think that aircraft departures globally will rise by low single digit percent this year; Making real progress in terms of engine deliveries. Guidance: FY EPS view 5.60-5.80 (exp. 5.55, prev. saw 5.10-5.45).


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  Cintas Corp (CTAS) Q4 2025: EPS 1.09 (exp. 1.07), Revenue 2.67bln (exp. 2.63bln). Outlook: Current FY EPS 4.71-4.85 (exp. 4.39), current FY revenue. 11.0-11.15bln (exp. 10.30bln).


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  Union Pacific (UNP) - Raised quarterly dividend +3% to USD 1.38/shr. Separately, Semafor reports that Union Pacific is exploring a potential takeover of a rival, and has hired Morgan Stanley for advice; while the target is unclear, CEO Jim Vena has expressed interest in a transcontinental railroad, implying possible interest in East Coast carriers like CSX Corporation (CSX) or Norfolk Southern (NSC), the article notes.


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  Spirit AeroSystems (SPR), Airbus (EADSY) - Spirit disclosed that on July 11th, its unit entered a third amended agreement with Airbus, under which Airbus is providing an additional USD 94mln in support, according to a filing.


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  AAR Corp. (AIR) Q4 2025 (USD): Adj. EPS 1.16 (exp. 1.01), Revenue 755mln (exp. 696mln); sales rose 12% organically, led by new parts Distribution growth over 20%. Adj. EBITDA grew 19%, margin expanded 80bps to 12.4%. The CEO highlighted portfolio optimisation, leverage reduction to 2.72x, and strong strategic progress.


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  EasyJet (ESYJY) - Reported higher pretax profit and passenger numbers in Q3, with a positive outlook for FY25; it expects moderate capacity growth, with stronger expansion in H1 and a slightly reduced FY seat capacity forecast. Early Q1 2026 bookings show steady growth.


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  BAE Systems (BAESY) - Is advancing rapidly with its next-generation Tempest fighter jet, unveiling a demonstrator design and beginning manufacturing of key components in Lancashire, Bloomberg reports. The British firm’s progress contrasts with delays in a rival European programme hindered by Franco-German disputes.


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  ABB Ltd (ABBNY) - Reported Q2 orders +16% to USD 9.79bln (exp. 8.93bln), with EBITA margin at 19.2% (exp. 18.8%). Growth was driven by strong demand for factory automation tools, supported by a large order.

FINANCIALS

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  Citizens Financial (CFG) Q2 2025 (USD): Adj. EPS 0.92 (exp. 0.89), Revenue 2.037bln (exp. 2.01bln), Net Income 436mln (exp. 388mln). Guidance/commentary: Sees Q3 NII growth of 3-4% Q/Q; Saw sizable M&A advisory fees push out to July.


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  Marsh & McLennan Companies Inc (MMC) Q2 2025 (USD): Adj. EPS 2.72 (exp. 2.69), Revenue 6.97bln (exp. 6.90bln).


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  US Bancorp (USB) Q2 2025 (USD): EPS 1.03 (exp. 1.07), Revenue 6.96bln (exp. 7.05bln). Q3 NII view between 4.1-4.2bln (exp. 4.213bln).


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  Travelers Companies Inc (TRV) Q2 2025 (USD): Core EPS 6.51 (exp. 3.55), Revenue 12.116bln (exp. 11.77bln). Core income increased primarily due to lower catastrophe losses, a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses), higher net favourable prior year reserve development and higher net investment income.


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  BlackRock (BLK) - The Chinese government is reportedly threatening to block the sale of over 40 ports to BlackRock (BLK) and Mediterranean Shipping Co by CK Hutchinson (0001 HK), unless Cosco is an equal partner and shareholder, via WSJ citing sources. Cos are said to be open to the idea of Cosco having a stake.


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  Visa (V), Mastercard (MA) - Visa and Mastercard face a new UK class action alleging unlawful interchange fees paid by British businesses, with potential damages up to GBP 3bln, Sky News reports.


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  China Banks - China is probing top investment banks after bond underwriting fees dropped below USD 100, expanding a crackdown on the price war. The National Association of Financial Market Institutional Investors launched an investigation into six underwriters of a CNY 35bln billion debt sale by China Guangfa Bank following public concern over their low fee bids.


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  Crypto - House conservatives ended their two-day blockade of crypto bills, allowing votes on measures supported by President Trump, who is championing the agenda. The hardliners relented after pressure from the President, signalling a push forward for industry-backed digital asset legislation.


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  Coinbase (COIN) - Coinbase Global is rebranding its Coinbase Wallet app as Base App to consolidate social, chat, payment, and trading functions. The Base blockchain, launched two years ago, has grown in importance, generating millions in revenue and becoming central to Coinbase’s payments strategy.


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  Nordea Bank (NRDBY) - Reported Q2 net interest income down 6% Y/Y to EUR 1.80bln, matching estimates. The bank’s lending income declined for the fifth consecutive quarter due to ongoing central bank interest-rate cuts.

HEALTHCARE

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  Elevance Health Inc (ELV) Q2 2025 (USD): Adj. EPS 8.84 (exp. 9.33), Revenue 49.9bln (exp. 48.33bln), Benefit expense ratio 88.9%. Commentary: Updating outlook to reflect medical cost trends in ACA and slower rate alignment in Medicaid. Guidance: FY EPS 30.00 (exp. 34.48); Sees FY benefit expense ratio at about 90%, reflecting ongoing and industry-wide impact of elevated cost trends in ACA and Medicaid.


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  Novartis (NVS) - Raised its profit outlook after Q2 core EPS of 2.42 beat expectations for 2.37, and reported Q2 revenue of USD 14.05bln (exp. 14.18bln). It now expects core operating profit growth in the low teens, up from prior low double digits. Mukul Mehta will become CFO on March 16, 2026. The company plans a USD 10bln share buyback to finish by end-2027. Separately, A US judge denied Novartis’ request to block MSN Pharmaceuticals from selling a generic version of Entresto, ruling that Novartis failed to show irreparable harm and noting the public interest in generic alternatives; the judge also reversed a prior finding of trade dress infringement. Entresto patent exclusivity expires this week.


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  Bristol-Myers (BMY), Pfizer (PFE) - Companies are to offer a blockbuster blood Thinner at a discount, via WSJ; will allow uninsured and underinsured patients to buy the pill at 40% off the listing price starting September 8.


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  Bristol-Myers Squibb (BMY) - Morgan Stanley views Bristol Myers’ upcoming Phase 3 data for Cobenfy in Alzheimer’s disease psychosis, expected late Q3 or early Q4, as a potential share catalyst. It said that despite keeping an Underweight rating with a USD 34 price target, it expects modest stock gains if the data shows significant improvement, noting recent moderation in schizophrenia prescriptions.


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  Abbott Laboratories (ABT) Q2 2025 (USD): Adj. EPS 1.26 (exp. 1.25), Revenue 11.1bln (exp. 11.06bln); plans to build a new manufacturing facility in Georgia by 2028. Guidance: Q3 adj. EPS 1.28-1.32 (exp. 1.33), narrowed FY adj. EPS view to 5.10-5.20 (exp. 5.15, prev. 5.05-5.25).


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  Johnson & Johnson (JNJ) - Received US FDA priority review for TAR-200 NDA in high-risk non-muscle invasive bladder cancer.


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  Bayer (BAYRY) - Bayer’s emodepside has received FDA orphan drug designation for treating gastrointestinal infections caused by hookworm.


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  Sarepta Therapeutics (SRPT) - Will add a black box warning for acute liver injury and failure to the Elevidys label, following FDA guidance for AAV gene therapies. Shipments to non-ambulant patients are paused. Experts recommend enhanced immunosuppression with sirolimus; Sarepta will submit this protocol to the FDA and gather data from new and real-world cohorts. Sarepta also announced a restructuring plan to prioritise high-value programmes and meet 2027 financial obligations, cutting about 500 jobs (around 36% of its workforce). The plan aims for USD 400mln in annual cost savings from 2026, lowering adj. R&D and SG&A expenses to USD 800-900mln annually, with over USD 100mln savings expected in 2025 after one-time charges. Sarepta will pause most limb-girdle muscular dystrophy gene therapy programmes to focus on its Duchenne portfolio and siRNA platform targeting neurodegenerative and pulmonary diseases. It plans to submit the BLA for SRP-9003 for LGMD type 2E/R4 in H2 2025 and seek partnerships for paused programmes. It appointed Ian Estepan as president and COO; Louise Rodino-Klapac becomes president of R&D and technical operations; Ryan Wong named CFO; Rachael Potter appointed chief scientific officer; Patrick Moss named chief commercial officer, succeeding Dallan Murray who is leaving.


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  Zoetis (ZTS) - Downgraded to 'Market Perform' from 'Outperform' at Leerink with a USD 155 PT (prev. 180). The firm has become less positive on Zoetis's growth prospects over the next several years due to rising competition in the legacy dermatology business and a Librela launch "that appears to have lost momentum". Leerink sees a more balanced risk/reward profile for the stock going forward.

CONSUMER STAPLES

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  PepsiCo Inc (PEP) Q2 2025 (USD): Core EPS 2.12 (exp. 2.04), Revenue 22.73bln (exp. 22.30bln). Efforts to enhance performance include accelerating cost optimisation initiatives for the North American division. Sees FX translation headwind of around 1.5ppts to hit FY reported net revenue and core EPS. Still sees 8.6bln total cash returns to holders, including 7.6bln dividends and 1bln in buybacks.


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  Seven & i Holdings (SVNDY), Alimentation Couche Tard (ANCTF) - Couche-Tard withdrew its USD 47bln bid for Japan’s Seven & i, citing a lack of constructive engagement, and accusing Seven & i of obfuscation and delay. Seven & i’s shares fell as much as 9% in overnight trading. Couche-Tard had proposed alternative offers but found cooperation insufficient. The deal was seen as a key test of Japan’s openness to foreign takeovers.


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  Walmart (WMT) - Cutting hundreds of store-support and training roles, including market coordinator positions, as part of ongoing efforts to streamline its organisational structure, Bloomberg reports.


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  Dollar General (DG) - CFO Kelly Dilts will step down on August 28th to pursue another opportunity, after over two years in the role. The company has begun a search for her successor.


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  J.M. Smucker (SJM) - Raised quarterly dividend by 2% to USD 1.10/shr.


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  Coca-Cola (KO) - US President Trump said Coca-Cola agreed to switch to real cane sugar in US products after discussions with him. The move aligns with the MAHA initiative, targeting food ingredient reform, and comes amid criticism of high-fructose corn syrup. Coca-Cola confirmed upcoming product changes. Shares of Archer Daniels Midland (ADM), which produces the sweetener used in Coca-Cola products in the US, are weighed on by the news.

COMMUNICATIONS

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  Meta Platforms (META) - Faced a 2019 privacy settlement trial, where details revealed the board instructed lawyers to propose a deal to the FTC, Bloomberg reports. Meta was willing to pay billions, but refused any settlement, holding CEO Mark Zuckerberg personally liable, amid investor claims the settlement cost them at least USD 7bln.


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  Alphabet (GOOG) - Google will host its Pixel 10 launch event on August 20th at 1pm EDT, according to The Verge. The company plans to unveil updates on its Pixel phones, watches, buds, and other devices.


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  Publicis (PUBGY) - Raised its 2025 organic growth guidance to close to 5% (prev. saw +4-5%), supported by a strong run of new client wins despite a wider advertising slowdown.


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  Newsmax (NMAX), FuboTV (FUBO) - Newsmax has expanded its multi-year carriage partnership with FuboTV to include continued distribution of Newsmax and the launch of Newsmax en Español. Newsmax remains on Fubo’s base Pro plan, while Newsmax en Español will be available on the Latino plan and Latino Plus add-on package.


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  IMAX Corporation (IMAX), Cinemark (CNK) - Cinemark, Regal, and Marcus are in early talks to create a joint brand or shared standards for their premium large-format theatres to counter IMAX’s growing influence with studios and filmmakers, Bloomberg reports. Options include a new collective brand or an industrywide certification for existing premium formats.

MATERIALS

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  Alcoa Corp (AA) Q2 2025 (USD): Adj. EPS 0.39 (exp. 0.35), Revenue 3.02bln (exp. 2.92bln). Guidance: 2025 total aluminium segment production to remain unchanged from its prior projection. For Q3, the aluminium segment is expected to show sequential unfavourable impacts; guides Q3 operational tax expense to 50–60mln, sees 90mln tariff headwind, and 100mln alumina cost tailwind in aluminium. Backed FY25 alumina output; lowered FY25 aluminium shipments due to San Ciprian delays. Alcoa reaffirmed its FY25 outlook for the Alumina segment, expecting production of 9.5–9.7mln metric tons and shipments of 13.1–13.3mln metric tons.


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  Albemarle (ALB), SQM (SQM) - China’s Zangge Mining halted lithium production at a unit in Qinghai province on orders from local officials, sending lithium prices up more than 4%. The miner received a notice from Haixi prefecture officials ordering an immediate halt to non-compliant mining. Production, which was forecast to hit 11,000 tons of lithium carbonate this year, can only resume with local government approval.


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  MP Materials (MP) - Announced a USD 500mln underwritten public offering of common stock, with shares priced between USD 54.50-56.00. Proceeds will fund the acceleration and expansion of operations, including the 10X Facility, and general corporate purposes.

ENERGY

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  Kinder Morgan (KMI) Q2 2025 (USD): EPS 0.28 (exp. 0.27), Revenue 4.04bln (exp. 3.75bln). Management highlighted strong LNG export trends, favourable regulatory conditions, and long-term take-or-pay contracts as drivers of future growth. The CEO said its backlog was up +6% Q/Q at 9.3bln, reflecting rising demand driven by LNG exports and power generation. Natural gas projects make up 93% of the backlog, with 50% linked to power. The company is targeting over 5 Bcf/d of new opportunities and expects 20% demand growth by 2030. The CEO also noted favourable tax benefits from the recent budget reconciliation bill, and does not believe that tariffs will have a significant impact on project economics.


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  Petrobras (PBR) - Considering re-entering retail fuel sales after exiting the sector four years ago, prompted by complaints from President Lula and the company’s CEO about high pump prices. The board will meet this week to discuss amending its strategic plan to include retail operations again.

REAL ESTATE

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  Starwood Property Trust (STWD), Brookfield (BAM) - Starwood Property Trust will acquire Fundamental Income Properties for approximately USD 2.2bln. Starwood will assume USD 1.3bln of Fundamental’s debt, and fund the balance with cash, debt, and equity. Closing is expected around July 23rd.


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  SL Green (SLG) Q2 2025 (USD): FFO 1.63 (exp. 1.37), Revenue 241.92mln (vs 222.82mln Y/Y). Manhattan same-store office occupancy was 91.4%, targeting 93.2% by year-end. Outlook: Raised FY25 FFO view to 5.65-5.95 (exp. 5.42, prev. saw 5.25-5.55), citing higher income from its debt and preferred equity portfolio.

GEOPOLITICS

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  US-EU - EU Defence Industry Chief Kubilius will visit Washington to seek assurances that the US pivot to the Indo-Pacific will not weaken Europe’s security. The Trump administration plans a troop review this summer that may reduce US military presence in Europe, which remains reliant on US support amid tensions with Russia over Ukraine.

17 Jul 2025 - 14:00- EquitiesData- Source: Newsquawk