Newsquawk Daily US Equity Opening News - AMD will substantially increase supply in '27; CEG/GOOGL enter into power deal

DAY AHEAD:

• CENTRAL BANKS: Fed’s Williams (voter) moderates a panel; Fed’s Bowman (voter) speaks on modernising regulation and supervision; Fed’s Schmid (2028 voter) will participate in a fireside chat.
• SUPPLY: US sells USD 58bln of 3yr notes.
• ENERGY: EIA will publish its October Short-Term Energy Outlook; after the US close, weekly ADP inventory data will be published.

• AMD (AMD) - AMD CEO Lisa Su said she had a great conversation with Hon Hai (HNHPF) and will meet TSMC (TSM) later today. She added that demand exceeds supply, memory remains supply constrained and AMD will substantially increase supply in 2027, thanking TSMC for adding capacity. Su also described AI as incredibly good for the world but said some work on AI safety is needed.
• Oracle (ORCL) - Texas AG said Oracle’s 2025 healthcare-unit breach compromised personal data belonging to nearly 20mln people, Bloomberg reports. Exposed information included Social Security numbers, addresses and medical records. Oracle said attackers accessed older Cerner servers that had not yet been migrated to its cloud storage.
• OpenAI - OpenAI is in talks with UAE investment funds including MGX and with BlackRock (BLK) to help anchor a USD 30bln financing round, Bloomberg reports. UAE funds have discussed investing up to USD 10bln collectively. OpenAI is seeking at least USD 30bln at about a USD 1.4tln valuation. Thrive Capital, Andreessen Horowitz and the University of California are also in talks with the AI company.
• Anthropic, Alphabet (GOOG) - Bank of America, Citigroup and Morgan Stanley began syndicating a USD 60bln debt package to fund Anthropic’s lease of Google-developed chips, FT reports. Broadcom (AVGO) is backing USD 42bln of senior secured debt, while USD 18bln of junior debt is unguaranteed. Blackstone (BX) has committed about USD 9bln to the junior tranche.
• Moonshot AI - Closed its final private fundraising round at a valuation of about USD 50bln and is targeting a Hong Kong IPO in Q1 2027, Bloomberg reports. The company is considering raising up to USD 5bln, and may begin early investor meetings this month.
• DeepSeek - Close to raising CNY 80-100bln ahead of a planned early-2027 IPO, Bloomberg reports. Tencent (TCEHY) and CATL (CYATY) are among the largest investors. DeepSeek initially targeted CNY 50bln and had sought a valuation of about CNY 500bln.
• Seagate Technology (STX), Toshiba (TSHTY), TDK Corp (TTDKY) - Seagate and Toshiba are competing to acquire TDK’s hard drive magnetic heads business for as much as several billion dollars, Bloomberg reports. TDK is the only independent supplier of HDD magnetic heads, serving Seagate, Toshiba and Western Digital (WDC). Cos. have also discussed supply arrangements, including a potential JV. Any deal would face antitrust scrutiny.
• Zscaler (ZS) - Backs Q1 guidance; adj. EPS 1.15-1.16 (exp. 1.16), revenue 935-939mln (exp. 938.16mln), and non-GAAP gross margin of c. 80%.
• Palantir (PLTR) - UK regulator FCA said it has not renewed short-term contract with Palantir on technology and financial crime.
• CrowdStrike (CRWD), AWS (AMZN), and Nvidia (NVDA) - Cos. expand cybersecurity startup accelerator.

• Constellation Energy (CEG), Alphabet (GOOG) - Cos. announce a long-term strategic clean energy collaboration to bring 890 MW of new, reliable nuclear capacity onto the PJM Interconnection grid to meet growing demand and increase grid reliability; Google to buy nuclear power from CEG worth USD 1bln+.

• Pinterest (PINS) - Appointed James Dibbo as CFO, effective 26th October. Dibbo joins from Amazon (AMZN), where he most recently served as CFO for Global Entertainment, Advertising and Corporate Development.
• AppLovin (APP) - San Diego County sued AppLovin, alleging it bypassed parental controls and tracking opt-outs to collect children’s data and serve ads for adult dating, alcohol, vaping and sexual content.
• Informa (IFJPY)- Plans to raise GBP 940mln to partially fund its acquisition of Clarion at an enterprise value of GBP 2.24bln; it also plans to separate its Academic business to focus the group on its core B2B operations.

• Mattel (MAT) - Ariel Investments, which owns 5.4% of Mattel, urged Co. to explore strategic alternatives including asset sales, a merger or outright sale, WSJ reports. Ariel said Mattel is significantly undervalued and a strategic buyer could pay a substantial premium. Follows reports last week that Authentic Brands had approached Mattel about a potential offer above USD 20/shr.
• Lucid Group (LCID) - Produced 2,954 vehicles and delivered 3,806 in Q3. Deliveries exceeded production as the Co. reduced inventory under its operating reset targeting USD 1.4bln of cash flow improvements in 2026. Production declined sequentially after eliminating a second shift at AMP-1 in June, while Lucid Gravity demand continued to recover.
• Lennar (LEN) - Berkshire Hathaway bought a further 2.4mln shares of Lennar last week and now owns a 12% stake in the Co., worth c. USD 2.2bln.

• AbbVie (ABBV) - Sees Q3 adj. EPS between 3.73-3.77 (exp. 3.84); will include USD 216mln of Q3 acquired IPR&D and milestone expense on a pre-tax basis, representing an unfavourable impact of 0.11/shr to both GAAP and adj. EPS. AbbVie noted Q3 results have not yet been finalised and remain subject to financial statement closing procedures. For the FY26, sees adj. EPS between 13.76-13.96 (exp. 14.01), including the Q3 acquired IPR&D and milestone expense; prior FY26 guidance issued on 31 July excluded acquired IPR&D and milestone expense incurred beyond Q2.
• Option Care Health (OPCH), McKesson (MCK) - CD&R and McKesson confirmed to sign agreement to acquire Option Care Health for USD 32.05/shr or USD 5.80bln enterprise value.
• Becton Dickinson (BDX) - President Trump said Becton Dickinson will invest USD 3bln to expand US manufacturing of essential medical products. More than USD 1bln will be invested in Nebraska to increase production of products, including products made with American steel.
• AstraZeneca (AZN) - CEO said a major acquisition may not be necessary to sustain growth beyond 2030 because of the company’s broad pipeline. AstraZeneca has also opened a new Massachusetts R&D centre backed by a USD 1bln investment, increasing its local workforce by more than 50% and supporting development of next-gen medicines.
• Recordati (RICFY) - CVC Capital Partners (CVC NA) raised its offer for Recordati to EUR 53/shr, valuing the Italian pharmaceutical company at EUR 10.5bln; the revised bid is up from EUR 51.29 after shareholder Palliser Capital pressed for EUR 60/shr.
• NeoGenomics (NEO) - Announced its succession plan, with current President and COO Warren Stone taking over from Tony Cook in January 2027; Co. also announced prelim Q3 revenue of USD 209mln (exp. 205.9mln).

• Energy Transfer (ET) - To acquire Vaquero Midstream in a USD 2.625bln transaction; transaction consideration will consist of USD 1.95bln in cash and c. 33.3mln newly issued Energy Transfer common units. Acquisition is expected to close in Q4 2026, subject to regulatory approval and customary closing conditions.
• Equinor (EQNR) - CEO said European natgas customers are showing greater willingness to sign long-term supply contracts, including agreements extending into the 2040s.
• Chevron (CVX) - CEO said demand for oil and gas will continue to grow and that they will invest in hardening the resilience of its assets. Optimistic regarding a good deal in Iraq.
• US Diesel Costs - President Trump signed an executive order allowing broader use of tax-exempt red diesel for highway vehicles through year-end. The measure effectively waives the USD 0.24/gallon federal tax, and aims to lower fuel costs. The IRS will suspend penalties, while the Agriculture Department will oversee adequate distribution.
• Alaska NatGas - US VP Vance said the Alaska LNG project with South Korea will proceed despite Seoul making participation conditional on economic viability.

• Apogee Industries (APOG) Q2 2026 (USD): Adj. EPS 1.17 (prev. 1.10 y/y), Revenue 391mln (prev. 358.2mln Y/Y). Guidance: Raises FY27; Adj. EPS 3.00-3.40 (prev. 2.70-3.25, exp. 2.96), Revenue 1.46-1.50bln (prev. 1.38-1.43bln, exp. 1.46bln).
• Uber Technologies (UBER) - To acquire ezCater in an all-cash transaction valued at USD 2.3bln.
• Lockheed Martin (LMT) - Awarded USD 209mln US Navy contract modification for production of Surface Electronic Warfare Improvement Programme systems. Options could raise the contract’s cumulative value to USD 1.7bln.

• Lamb-Weston (LW) Q1 2027 (USD): Adj. EPS 0.75 (exp. 0.59) Revenue 1.67bln (exp. 1.66bln). Guidance: Raises FY27 adj. EPS view to 3.05-3.35 (prev. 2.95-3.25, exp. 3.01).
• L’Oreal (LRLCY) - Hired advisors to explore options for US legal liabilities tied to talc and other chemical ingredients, WSJ reports; its US subsidiary faces mass lawsuits alleging talc products caused illness, while L’Oreal is also among companies facing claims that hair relaxers caused cancer.

• Norsk Hydro (NHYDY) - Said reduced Alunorte production and higher gas purchase costs could impact Q3 2026 Bauxite & Alumina results by USD 75-100mln; the estimated gas-arbitrage impact for Alunorte in Q4 2026 is between USD 90-110mln.

• Intercontinental Exchange (ICE) - ICE launched London futures contracts for gold, silver, platinum and palladium tied to daily physical auction prices, FT reports. The move seeks to establish precious metals derivatives alongside London’s USD 190bln/day physical gold market, after previous attempts failed.
• KKR & Co. (KKR) - KKR FS Income Trust Select received redemption requests equal to 5.06% of shares for the quarter-end in September (vs prev. 3.4%), slightly above its 5% cap. The fund will honour all requests given available liquidity.
• KKR & Co. (KKR) - KKR agreed to acquire Gen II Fund Services for USD 5.1bln including debt, Reuters reports. KKR will buy the private capital fund administrator from Hg, General Atlantic and minority investors. Gen II serves more than 275 investment firms representing over USD 2tln in private fund capital; CEO Steven Millner is set to remain in charge, and the deal is expected to close in 2027.
• HSBC (HSBC) - HKMA questioned HSBC (HSBA LN) over locating its new global AI centre in Singapore rather than Hong Kong, according to the FT; the pressure forms part of the regulator’s broader push to entrench the territory’s status as an international financial capital.
• Big Banks - US regulators are increasing scrutiny of banks’ exposure to private credit firms, Semafor reports. Comes as bank loans to nonbank institutions have risen from USD 300bln in 2016 to more than USD 1.5tln now, representing 11% of outstanding bank loans. The Fed, ECB, SEC and BoE have raised concerns over leverage, valuations and resilience.

• US-Middle East - President Trump said he remains open to direct talks with Iran and expects the Saudi-Houthi situation to be resolved. He said Iran would suffer greatly if it had combat drones in the UK, while stating the UK remains safe for US forces. Trump also said Iran’s military capabilities were eliminated, Hormuz secured and the war would end soon. The Council on Foreign Relations said a final US-Iran agreement will likely resemble the Islamabad MOU, with Washington expected to make concessions on sanctions and frozen Iranian assets to end the war.
• US-Iran - US Treasury Secretary Bessent said Operation Economic Outcast is producing results, with Iran loading zero crude onto tankers last month. The US Treasury also warned banks they could face sanctions for doing business with Iran.
• Saudi Aramco Refinery - A fire was reported at Saudi Aramco facilities in Jeddah following an attack by Yemeni forces, Fars reports. Earlier reports cited a new explosion at the Jeddah oil refinery, with sources attributing the blast to a Yemeni missile strike.

• APEC-China - China plans to scale back next month’s APEC summit in Shenzhen by moving a key foreign and trade ministers’ meeting online, and dropping the traditional leaders’ retreat, FT reports. Several participants have objected, arguing the changes would reduce substantive dialogue and allow Beijing greater control over the event.

• Treasury Secretary Bessent - US Treasury Secretary Bessent said underlying core inflation is around 2.3% in the US, and reiterated that mortgage rates should fall after the Iran conflict. He expects Q3 growth above 3%, said the US economy is accelerating and the debt curve could improve quickly. He also cited a one-time USD 180bln tariff income repayment and discussions with Europe on China and tariffs.
• JGBs - Japan raised the coupon on a new 10yr government bond to 3.1% (from 2.7%), the highest in about 30yrs, Kyodo reports. The increase reflects higher long-term rates driven by oil-related inflation concerns and spillovers from rising US yields. Meanwhile, the 10yr bond auction drew solid demand, with a bid-to-cover ratio of 3.76 (vs prev. 3.29, vs 12-month average of 3.21); the auction tail narrowed to 0.02 (vs 0.12 last month). Elsewhere, Citigroup strategists said JGB yields are nearing their peaks, and are becoming more attractive; Citi sees 2.5-3.0% as fair value for the 10yr yield if inflation stabilises near 2%, and expects the yield curve to flatten as markets price further BoJ hikes.
• BoJ - Governor Ueda said Japan’s economy is recovering moderately and prices are tracking baseline forecasts. The BoJ will continue raising rates in line with economic activity, prices and financial conditions, with timing dependent on risks and projections. Ueda said financial conditions remain accommodative and underlying inflation should be anchored around 2%.