US EARLY MORNING: Futures rise in sympathy with European counterparts; Fed's Williams, JOLTs and consumer confidence ahead

US equity futures are firmer in pre-market trade, gaining a lift in sympathy with European counterparts, but US futures are yet to pare back the chunk of losses endured late last week as Fed Chair Powell showed no signs of relenting from the Fed’s hawkish course. The Nasdaq-100 is outperforming, perhaps getting a boost from Treasury yields, which are lower by 0-4bps, with much of the rally in the long-end, while major curve spreads are narrowing. Ahead of this week’s main events ­– ISM Thursday before payrolls on Friday – traders will be looking to comments from NY Fed President Williams (voter), due in the late US morning, as well as Fed’s 2024 voter Barkin; the message from both is likely to be a reiteration of what we have heard from other Fed officials lately, though we will be cognizant of any comments from Williams on the terminal rate, and the time he would expect the Fed to stay at terminal. Elsewhere, the Conference Board’s gauge of consumer confidence and the JOLTs report will be eyed. Full Day Ahead here.

EQUITY NEWS:

CONSUMER CYCLICAL:

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  Tesla, Inc. (TSLA) - Tesla is suing Louisiana, claiming its laws restricts its ability to sell electric vehicles directly to customers and violates its constitutional rights, WSJ reported, the latest action by Tesla to try to open markets to its model of selling cars directly to consumers rather than using dealers as intermediaries.


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  Peloton Interactive, Inc. (PTON) - Peloton said it would not be able to timely file with the SEC its Annual Report on Form 10-K since it requires additional time to permit completion of the accounting and disclosures related to the measurement of Q4 long-lived asset impairment charges associated with the recent announcement to exit its last mile warehouses. PTON anticipates that the Annual Report will be filed as soon as practicable and prior to the fifteenth calendar day following the prescribed due date.


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  Lucid Group, Inc. (LCID) - Lucid filed for a new offering of up to USD 8bln. Lucid said its universal shelf would allow it to raise up to an aggregate of USD 8bln in primary capital in one or more offerings over the three years; these capital raises could include common stock, preferred stock, warrants, debt securities, purchase contracts, and/or units. Lucid said it was not selling any securities from the shelf registration statement at this time, and believes that a shelf registration provides greater flexibility to raise capital in the future."


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  International Game Technology PLC (IGT), DoubleDown Interactive Co., Ltd. (DDI) - IGT and DoubleDown announced an agreement to settle the Benson vs DoubleDown Interactive LLC, et. al. lawsuit and associated proceedings. Agreement remains contingent on final court approval.

TECH:

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  Apple Inc (AAPL), Microsoft Corp (MSFT), Meta Platforms (META) - Australian regulators demanded Meta, Apple and Microsoft share their strategies for stamping out child abuse material on their platforms or face fines, Reuters reports; if not, the companies would each face a fine of AUD 555k per day.


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  Advanced Micro Devices, Inc. (AMD) - AMD has refreshed its desktop processors for the first time in nearly two years, revealing Ryzen 7000-series CPUs that boast clock speeds that can reach 5.7GHz and performance up to 29% better than their predecessors, The Register reported.


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  Zendesk Inc (ZEN) - After investor Light Street said it would vote against the USD 10.2bln go private deal with, and proposed that it remain a standalone public company with a new chief ecexutive, Zendesk received a recapitalisation proposal from Light Street, which includes a USD 2bln preferred equity recapitalisation arranged by Light Street, a USD 2bln incremental debt facility and USD 1bln cash from Zendesk's balance sheet; the proceeds would be used to finance a USD 5bln tender offer for approximately 50% of Zendesk's outstanding common shares at USD 82.50/shr, where holders of the preferred equity would control approximately 66% of the voting power of Zendesk;  Zendesk to 'carefully review' Light Street proposal.

COMMUNICATIONS:

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  Snap Inc. (SNAP) - Announced the introduction of 'Dual Camera', a way for users to capture multiple perspectives at the same time, as it happens.

INDUSTRIALS:

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  3M Company (MMM), Neogen Corporation (NEOG) - 3M announced the final exchange ratio of 6.7713 for its split-off exchange offer to 3M stockholders to exchange their 3M shares for shares of Garden SpinCo Corporation. The exchange offer is being conducted in connection with the previously announced pending separation of 3M's food safety business and the subsequent merger of subsidiary SpinCo with a subsidiary of Neogen.


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  Boeing Company (BA), Deutsche Lufthansa AG (DLAKY) - Lufthansa received delivery of its first Boeing 787 Dreamliner; Lufthansa has 32 firm orders for the 787, and joins nearly 50 customers worldwide in operating the jet.


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  Lockheed Martin (LMT) - Awarded a USD 503.7mln firm-fixed-price order against a previously issued Navy contract.


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  BAE Systems (BAESY) - Reportedly in the final phase of talks with the UK over a multi-billion pound deal, Telegraph says. Separately, United Steelworkers (USW) has given strike notice over unfair labour practises at a facility in Pennsylvania.

MATERIALS:

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  BHP (BHP) - Has received resolutions for consideration at the 2022 AGM in which shareholders requested it advocate for Australian policy settings consistent with the Paris Agreement's objective of limiting global warming to 1.5 degrees Celsius.


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  Rio Tinto (RIO) - A committee has warned that a major tailings dam at the miner's former Panguna site is at risk of failure, The Australian reports.

ENERGY:

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  Engie (ENGIY) - Gazprom informed Engie that gas deliveries would be reduced from today due to a contractual disagreement.


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  Aker Solutions (AKRYY), Subsea 7 (SUBCY), Schlumberger (SLB) - The three create a JV to deliver a step change in subsea production economics by helping customers unlock reserves, reduce time to first oil and lower development costs while simultaneously delivering on their decarbonisation objectives. Aker is expected to recognise a gain of around USD 1bln at closing of the transaction.


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  UK Oil & Gas - UK PM front-runner Truss will reportedly approve several North Sea oil and gas drilling licenses as part of energy security plans, The Times reports.

FINANCIALS:

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  FTSE 100 Reshuffle - Abrdn (ABDN LN) and Avast (AVST LN) are poised to be replaced by Fraser Group (FRAS LN) and Homeserve (HSV LN) in the FTSE 100. The reshuffle will be based on Tuesday's closing prices and will take effect mid-Sepetember. (CityAM)


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  HSBC (HSBC) - A report believed to have been commissioned by shareholder Ping An Insurance (8% stake) has increased pressure calling for a break-up, and suggested a “radical rethink of structure” is needed to improve performance, Telegraph reports.

HEALTH CARE:

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  AstraZeneca (AZN) - New data show Farxiga significantly lowers the risk of cardiovascular death in patients with heart failure.


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  Sanofi (SNY) - US FDA grants priority review to efanesoctocog alfa for people with hemophilia A.

30 Aug 2022 - 09:24- Research Sheet- Source: Newsquawk