Daily US Equity News - NFP ahead; House bill seeks tighter China chip export curbs; US to impose medicine tariffs, keeps metals tariffs; MSFT plans USD 10bln Japan data centre investment; IBM and ARM partner on AI hardware systems

TODAY'S AGENDA:

• SERVICE NOTICE: Today is Good Friday; while the desk will be in operation, our long-form wraps and some other content points will not publish, given the vast market closures; if you have any questions, please contact the desk directly via the Analyst Chat function. The main US cash markets are shut. US equities and equity options are closed on NYSE and Nasdaq; With regards to US fixed income cash markets, SIFMA recommends an early close at 12:00EDT/17:00BST; US repo markets on CME BrokerTec are closed, with BrokerTec US Actives on CME Globex open from 07:00EDT/12:00BST to 12:00EDT/17:00BST. CME says some FX, crypto and interest rate products have special settlement activity at 10:00CST/18:00BST, but that is settlement handling rather than normal full-session cash-market trading. For more details, see the links below:
• CME Holiday Trading
• NYSE Holiday Trading
• DAY AHEAD: While it is a market holiday today, there are still key data releases, most notably, the US jobs data for March, where the consensus expects 65k nonfarm payrolls to be added to the economy, and the jobless rate is expected to be unchanged at 4.4% (see below for preview). S&P Global will release its US Services PMI (exp. 51.1 from 51.7) and Composite PMI (exp. 51.4 from 51.9).
• PREVIEW - US NONFARM PAYROLLS (13:30BST/08:30EDT) - US nonfarm payrolls are expected to rise by 65k in March after a 92k fall in February, with unemployment seen unchanged at 4.4%, and average hourly earnings +0.3% M/M, and 3.8% Y/Y. The report is expected to test whether February’s weakness was temporary, while the Fed remains focused on both inflation and labour-market resilience.
• Click here for Newsquawk’s full preview for the US jobs data 

NEWS:

GEOPOLITICS:

• US Army Chief Chief of Staff - Defense Secretary Pete Hegseth removed Army Chief of Staff Gen. Randy George, the latest senior military leader ousted under the Trump administration. The Pentagon announced George’s departure without giving a reason. George took the post in September 2023, and had been expected to retire next year.
• Crude Routes - Three tankers broadcasting Omani ownership appeared to enter the Strait of Hormuz by following Oman’s coastline rather than a northern route through Iranian waters; the vessels, two oil supertankers and one LNG carrier, were headed east into the Strait on Thursday and are managed by Oman Ship Management Company, according to Equasis. Separately, a US-sanctioned vessel carrying Iranian crude changed course to China from a previously signalled destination of India, where it would have marked the first such shipment in nearly seven years, Bloomberg reports. The Ping Shun, sanctioned by the US in 2025, is now signalling Dongying in China, according to Kpler.
• Strait of Hormuz - More than 40 US allies met to discuss ways to reopen the Strait of Hormuz amid concern over the disruption to global energy supplies, Bloomberg reports. The UK convened countries from Europe, the Middle East, Asia, Australia and Canada to consider diplomatic outreach to Tehran and possible sanctions if the shipping lane remains blocked. French President Macron said France and South Korea could work together to help stabilise the Strait of Hormuz once bombing ends. After meeting South Korean President Lee in Seoul, he said they had discussed the Middle East at length and wanted to strengthen ties on strategic and defence matters.
• Iran Energy Infrastructure - Yedioth Ahronoth reports that Israel is preparing possible strikes on Iranian energy facilities if it gets US approval. It also says Israel told Washington that hitting those facilities could damage Iran’s economy and potentially destabilise the regime.

MACRO:

• Fedspeak - Fed’s Williams (voter) said risks to inflation and employment from higher energy prices are balanced and that he supports keeping interest rates unchanged. He said monetary policy is well positioned to keep those risks in balance.
• China PMI - China’s services activity grew more slowly in March, with the RatingDog China services PMI falling to 52.1 (exp. 53.6, prev. 56.7), signalling slower but continued growth; the survey pointed to weak consumer demand after support from the previous month’s long national holiday. The report said the Middle East war is raising external risks, though businesses remained upbeat about the next 12 months.
• Japanese Yen - Japan FinMin Katayama said President Trump’s remarks on the Middle East had a significant impact on global markets. She said speculative activity had increased in crude oil futures and currency markets, sharply raising volatility, and voiced concern over market moves ahead of a US data release.

TRADE:

• US-China - US lawmakers introduced bipartisan House legislation to tighten restrictions on chipmaking tool exports to China, including sales by allied firms such as ASML (ASML) and Tokyo Electron (TOELY). The bill would strengthen existing limits on semiconductor manufacturing equipment, and a Senate version is expected later this month, according to Bloomberg. Elsewhere, Digitimes reports that the trade environment for US businesses operating in or trading with China deteriorated sharply between 2025-2026, according to a comparative analysis of the latest National Trade Estimate reports.
• US Pharma Tariffs - The Trump administration will impose tariffs of up to 100% on certain imported patented medicines to pressure drugmakers to manufacture more in the US. The levy applies to patented drugs made in countries without US tariff deals by companies that do not have most-favoured-nation pricing agreements with the administration.
• US Metals Tariffs - The Trump administration confirmed it will keep 50% tariffs on many imported steel, aluminium and copper products while simplifying duties for goods containing negligible amounts of those metals. An administration official said the changes are intended to simplify the policy and make it fairer for businesses.
• Canada Tariffs - Canadian officials are considering unusual measures, including potential tariffs, to protect domestic vegetable and wood-product producers from low-priced imports. The move could complicate PM Carney’s efforts to respond to US tariffs, deepen trade ties with other countries and address cost-of-living pressures.

TECH:

• Microsoft (MSFT) - Microsoft shifted its AI sales strategy in response to Wall Street feedback, focusing on selling Copilot rather than including it free in a software bundle, Bloomberg reports. Leadership set and essentially met “some pretty big audacious goals” for Copilot sales in the quarter ended March, according to sources cited.
• Microsoft (MSFT) - Microsoft President Brad Smith met Japanese PM Takaichi on Friday as Microsoft plans to invest USD 10bln in Japan data centres by 2029, Nikkei reports. The company will partner with SoftBank (SFTBY) and Sakura Internet on AI infrastructure and aims to train 1mln Japanese developers by 2030.
• Broadcom (AVGO) - Broadcom named Alphabet (GOOG) executive Amie Thuener as CFO, effective 12th June, when Kirsten Spears retiires. Thuener is Alphabet’s vice president, corporate controller and chief accounting officer. Spears will stay on as an adviser for nine months after retiring.
• IBM (IBM), Arm Holdings (ARM) - IBM and Arm announced a collaboration to build dual-architecture hardware for AI and data-intensive workloads, aiming to improve flexibility, reliability and security, Digitimes reports. The move could broaden enterprise AI deployment and affect infrastructure worldwide.
• Samsung (SSNLF) - Samsung Electro-Mechanics has raised prices for high-end FC-BGA substrates as demand from AI servers and HPC applications continues to exceed supply, according to the Digitimes.
• Anthropic - Anthropic has acquired startup Coefficient Bio in a stock deal worth just over USD 400mln, The Information reports. Coefficient Bio, backed by Dimension and working on AI models for biological research, is joining Anthropic’s Health Care Life Sciences team led by Eric Kauderer-Abrams.
• OpenAI - OpenAI acquired online technology talk show TBPN in an unusual move into media aimed at shaping discussion around AI. Deal terms were not disclosed.

COMMUNICATIONS:

• Meta Platforms (META) - Meta has discussed ending funding for its independent Oversight Board after 2028, Platformer reports. Funding was reduced this year and may fall again in 2027 and 2028, with staff expecting more layoffs. The sides are negotiating alternatives, including a possible split in which the board’s trust creates a new entity to do similar work for other tech platforms.

FINANCIALS:

• Private Credit - An article in Reuters says US private credit faces a period of potentially higher defaults as software exposure weighs on portfolios. Analysts expect growth to moderate as AI disrupts software companies, a major sector for private credit. Morgan Stanley expects annual defaults of 8% from H2 2026 to H1 next year, while Barclays warned sector concentration raises default risk.
• Private Credit - Investors sought to withdraw nearly USD 14bln from a group of private-credit funds in Q1, intensifying pressure on the sector, WSJ writes. Blue Owl (OWL) on Thursday said redemption requests totalled USD 5.4bln from two funds, equal to 22% of its USD 36bln private-credit fund and 41% of a technology-focused fund; Blue Owl then limited redemptions to 5% as outflows accelerated.
• Oaktree BDC - Oaktree’s Armen Panossian said software weakness, liquidity concerns and poor underwriting vintages are widening the gap between public and non-traded private credit vehicles. He said large capital inflows after the pandemic, especially into retail-focused vehicles such as business development companies, led managers to deploy cash quickly and weakened selection standards.
• Morgan Stanley (MS) - Morgan Stanley China A Share Fund has limited redemptions.
• Blackstone (BX) - Blackstone has agreed to acquire a 49% stake in data center developer Rowan Digital Infrastructure, The Information reports. The deal would likely value Rowan at about USD 3.8bln excluding debt.
• Coinbase (COIN) - Coinbase on Thursday received conditional OCC approval to operate as a trust bank, which would let it offer payment products alongside custody under federal supervision if finalised. The company said it will not become a commercial bank or take retail deposits, and said the charter would support its stablecoin and payments infrastructure ambitions.
• Riot Platforms (RIOT) - Riot Platforms produced 1,473 bitcoin in Q1.

REAL ESTATE:

• SBA Communications (SBAC) - SBA Communications is exploring options including a potential sale after receiving preliminary takeover interest, according to Bloomberg. Large infrastructure funds have shown interest in the tower owner and operator, and the company is working with advisers to assess that interest.

CONSUMER:

• Amazon (AMZN) - Amazon will charge sellers using Fulfillment by Amazon a 3.5% fuel and logistics surcharge from 17th April in the US and Canada. The move follows higher oil prices linked to the war in Iran.
• Starbucks (SBUX) - Starbucks completed its previously announced JV with Boyu Capital for China. Funds managed by Boyu now hold 60% of Starbucks China retail operations, and Starbucks retains 40% while keeping ownership of the brand and intellectual property. The venture oversees about 8,000 company-operated stores, now moving to a licensed model, with a long-term goal of up to 20,000 locations. Separately, WSJ reports that Starbucks is expanding tipping for US baristas to include credit and debit card payments on mobile orders, in addition to existing in-store, drive-through, cash, credit card and Starbucks card mobile tipping; the company is also adding bonuses as part of efforts to improve service, sales performance and barista pay.
• Tesla (TSLA), LG Energy Solution (373220 KS) - LG Energy Solution has reportedly adopted a new “double stack” manufacturing process for prismatic batteries to be supplied to Tesla, Digitimes reports, as it expands US production for grid-scale energy storage.

ENERGY:

• TotalEnergies (TTE), Shell (SHEL), BP (BP), Repsol (REPYY), Chevron (CVX) - Total, Shell, BP, Repsol and Chevron are among companies showing early interest in a majority stake in the Shenandoah deepwater field in the US Gulf, Reuters reports. Beacon Offshore Energy and HEQ Deepwater have started selling a combined 51% stake, while Navitas Petroleum retains the rest. Initial bids are expected in coming weeks.
• Continental Resources (CLR) - Continental Resources plans to raise production by increasing its capital budget as the war in Iran pushes crude prices to their highest in four years. CEO said the higher budget will increase output.
• Jera, Commonwealth LNG - Jera’s purchase agreement with Commonwealth LNG was terminated, according to a filing with the US Department of Energy. The long-term deal, signed last year, would have supplied Jera with 1mln tons of LNG annually for 20 years from the proposed Louisiana export project. The termination was effective 3rd March, with no reason given.
• Synthetic Canadian Crude - Synthetic Canadian crude valued for high diesel yields tripled in four days amid global demand for diesel supply, Bloomberg reports. The oil, produced by processing Alberta oil sands bitumen, is trading at USD 19.25/bbl above the monthly average for WTI, up almost 200% since 27th March.
• Irving Oil - Irving Oil is sourcing crude from Newfoundland for the first time since 2020 as the Iran war disrupts Middle Eastern supplies. The Canadian Transportation Agency allowed the company to use foreign tankers to move 650-680k bbls from Whiffen Head to its 320k BPD Saint John refinery between 25th April and 25th May.

MATERIALS:

• Barrick Mining (B) - Barrick Mining said it will slow development at the Reko Diq project and continue its review until mid-2027 following further security deterioration in Pakistan and the region. Phase 1 development was approved on that basis with reduced capital spend. Barrick said capital costs and the timeline could rise from the previously disclosed estimates, with first production previously targeted by end-2028.

INDUSTRIALS:

• RTX (RTX) - Japan’s order for about 400 Tomahawk missiles from the US by March 2028 is set to be disrupted as the American-Israeli war with Iran depletes inventories, Bloomberg reports. The missiles are central to Tokyo’s strategy of building long-range strike capabilities against challenges from China and North Korea.
• General Dynamics (GD) - General Dynamics received a USD 1.3bln Navy contract modification for lead yard support, development studies and design work on Virginia-class submarines. If all options are exercised, the cumulative value of the contract change would rise to USD 2.49bln.
• United Airlines (UAL) - United Airlines raised checked bag fees by USD 10.00, CNBC Reports. For most domestic trips, a first checked bag now costs USD 45 if prepaid and USD 50 if bought within 24 hours of departure. The airline said the increase applies to tickets purchased from 3rd April for travel in the US, Mexico, Canada and Latin America, as fuel costs have risen sharply.
• SpaceX - SpaceX has raised its target IPO valuation to more than USD 2tln and could seek to raise as much as USD 75bln, Bloomberg reports. The company recently filed confidentially for an IPO.

HEALTHCARE:

• US-UK Pharma - The UK finalised a US pharmaceutical trade deal granting UK-made medicines tariff-free access to the US for at least three years in return for higher UK prices and spending on new medicines, Reuters reports. The deal also covers medtech, regulatory cooperation and tariff protections linked to separate US agreements with AstraZeneca (AZN) and GSK (GSK).
• Regeneron (REGN) - TriNetX and Regeneron announced a strategic collaboration to support Regeneron’s drug discovery, development and digital health initiatives. As part of the collaboration, Regeneron will invest up to USD 200mln in TriNetX. Regeneron will receive secure licensed access to TriNetX’s de-identified health data from about 300mln individuals, including 170mln in the US.