Daily US Equity Opening News - GME offers to buy EBAY for USD 56bln; BRK.B operating profit & cash levels rise; AAPL Mac supply reportedly constrained by TSM 3nm capacity; META faces New Mexico trial over youth harms; Spirit Airlines ceases operations

DAY AHEAD:

NOTE: It is a UK Bank Holiday today

• DATA: Stateside, US factory orders (prev. 0.0% M/M) are due.
• EVENTS: Nearly 50 European leaders will meet in Armenia to discuss democratic resilience and energy security; the meeting is likely to be overshadowed by President Trump’s comments threatening transatlantic relations, after he said he would cut thousands of US troops in Germany and accused European countries of ignoring requests over Iran and the Strait of Hormuz. US President Trump is scheduled to participate in a Small Business Summit today, at 15:00EDT/20:00BST.
• CENTRAL BANKS: The Fed’s Senior Loan Officer Opinion Survey.
• SPEAKERS: ECB’s de Guindos (dovish; text expected); ECB’s Cipollone will speak on digital assets. Fed’s Williams (voter, neutral) speaks. BoC Governor Macklem and Senior Deputy Governor Rogers appear before lawmakers.
• FED’S WILLIAMS (17:50BST/12:50EDT): Fed’s Williams (voter, neutral) is due to deliver keynote remarks. Williams’ view of the FOMC easing bias will be in focus after last week’s confab revealed that three voting officials (Kashkari, Hammack, Logan) and some non-voters objected to language that implied the next rate move would be a cut, arguing such forward guidance was inappropriate given economic uncertainty. Speaking a fortnight ago, before the April FOMC, Williams said monetary policy is currently well positioned and modestly restrictive, adding that now is not the right time for firm forward guidance. He forecast 2026 growth of 2-2.5% (vs a median forecast of 2.4% in the Fed’s March SEP), unemployment of 4.25-4.50% (vs Fed median of 4.4%), and inflation reaching 2.75-3.00% this year before returning to target in 2027 (Fed median sees PCE at 2.7% in 2026; and Fed median sees inflation back at target in 2028; note, the Fed will update its projections at its 17th June policy meeting). He also noted that the Middle East conflict is already lifting inflation and creating supply chain disruptions.
• FIXED INCOME: The US Treasury publishes its quarterly financing estimates ahead of this week’s Quarterly Refunding Announcement; traders will be eying the QRA for any change in debt issuance guidance, looking for any adjustments to language saying note and bond issuance increases are not expected “for at least the next several quarters”, as reliance on bills to fund a near-USD 2tln annual deficit carries risks.
• EARNINGS: Notable corporates reporting today include: Palantir Technologies (PLTR), Vertex Pharmaceuticals (VRTX), Williams Companies (WMB), Diamondback Energy (FANG), ON Semiconductor (ON), Tyson Foods (TSN), Pinnacle West Capital (PNW), Paramount Skydance (PSKY), Pinterest (PINS), Norwegian Cruise Line Holdings (NCLH)
• WEEK AHEAD: Highlights include US NFP, ISM Services PMI, RBA policy announcement, Canadian jobs data. Earnings continue with AMD, PLTR, ARM the highlights this week.
• Newsquawk’s week ahead preview is here; the weekly US earnings estimates are here.

NEWS:

GEOPOLITICS:

• US-Iran - Iran sent a 14-point proposal via Pakistani mediators, Tasnim said. It seeks resolution within 30 days, an end to hostilities including in Lebanon, guarantees against military aggression, US troop withdrawal, an end to the naval blockade and sanctions, release of frozen assets, and compensation. Nuclear talks would follow the war’s end. Iran has received a US response to its latest peace proposal via Pakistan, Iranian media reports said; the US has not formally confirmed a reply. Trump said Iran talks were “going very well”; Treasury Secretary Bessent said the US is “suffocating” Iran with economic and financial pressure, and was “sprinting toward the finish line”.
• Strait of Hormuz - President Trump said the US will guide stranded vessels out of the Strait of Hormuz from Monday, calling the effort “Project Freedom”, the BBC reports. US Central Command said 15K personnel, guided-missile destroyers and more than 100 aircraft would be involved. Iran lawmaker Ebrahim Azizi, a former IRGC commander, said any American interference would violate the ceasefire.
• Trump vs Congress - President Trump told Congress that US hostilities with Iran had “terminated” during a ceasefire, arguing he did not need legislative approval under the War Powers Resolution, Politico reports. Trump argued a ceasefire with Tehran stopped the clock, citing no exchange of fire since 7th April; Defence Secretary Pete Hegseth backed the argument, while Senator Tim Kaine called it wrong. Some analysts cited by the BBC said a ceasefire would not stop that 60-day clock.
• OPEC - OPEC+ agreed to raise June oil output quotas by 188K BPD, its third consecutive monthly increase, Reuters reports. The increase is expected to remain largely symbolic while the Iran war disrupts Gulf exports through the Strait of Hormuz. Saudi Arabia’s quota will rise to 10.291mln bpd, while seven OPEC+ members will meet again on 7th June.
• US-Germany - The Pentagon plans to withdraw about 5K US troops from Germany over the next six to 12 months, CBS reports. Officials described the move as reflecting President Trump’s frustration with European allies’ support in the US-Iran war. German Defence Minister Pistorius said Europe must take greater responsibility for its own security, while affirming the continued importance of shared military interests with the US, after the Trump administration announced the withdrawal.
• Ukraine-EU-UK - The UK is set to enter talks to join the EU’s EUR 90bln Ukraine loan plan. PM Starmer will tell the European Political Community summit in Yerevan on Monday that the UK wants to work with the EU to support Ukraine in pushing back Russia’s front line and regaining sovereign territory.

TRADE:

• US-China - China ordered its companies to ignore US sanctions, an unprecedented act of defiance that risks putting its banking sector in the crossfire as tensions rise with the US, Bloomberg reports. Beijing has criticised unilateral sanctions as illegitimate, but previously allowed its largest companies to comply to avoid economic blowback and preserve access to the US financial system.
• EU-US - German automotive lobby group VDA called for urgent de-escalation and immediate talks between the US and EU over tariffs, after President Trump signalled he would raise auto tariffs on the bloc the following week. VDA also urged the EU to ratify its end of a trade agreement reached the previous summer.

MACRO:

• UK Politics - Some Labour MPs argued Chancellor Reeves must remain in her role to reassure bond markets, even if PM Starmer is replaced, The Sunday Times reports; MPS reportedly fear market turmoil if both were removed simultaneously. Separately, Wes Streeting had reportedly secured backing from more than 81 MPs, the minimum required to trigger a leadership challenge, with some supporters urging him to act as soon following the local elections this week, The Telegraph said.
• ECB - ECB’s Muller said rates are at a broadly neutral level, affording the central bank time to wait before taking further action. ECB’s Rehn said monpol must react swiftly should second-round inflation effects materialise, while noting there are currently no obvious signs of such impacts in the near term, with the ECB closely monitoring the situation. ECB’s Stournaras said that recession risk in the Eurozone is real and justified amid Middle East-driven supply disruptions, while noting no significant pass-through of higher energy prices to inflation yet. ECB VP de Guindos will not return to Spanish politics or move to the banking sector when his term ends in May, he said. ECB’s Villeroy said the Eurozone is facing an unprecedented shock, adding that France’s deficit is expected to reach 5% of GDP, though a recession should be avoided.
• BoK - BoK Senior Deputy Governor Ryoo Sangdai said it was time to consider raising rates; economic growth appeared unlikely to fall far below earlier projections, while inflation was likely to exceed the bank’s previous forecast, and he added that it was time to consider stopping rate cuts and thinking about increases.

TECH:

• Apple (AAPL), TSMC (TSM) - Apple’s Q2 2026 performance reflects persistent constraints in advanced semiconductor capacity rather than a demand issue, according to supply-chain sources cited by DigiTimes, with TSMC’s 3nm node under pressure expected to keep Mac supply constrained until 2nm capacity ramps up.
• Samsung Electronics’ (SSNLF) - Samsung’s foundry business is attracting renewed interest as its 4nm process reportedly reaches higher utilisation rates, with yields reportedly surpassing 80%, supported by HBM4 base-die demand and orders from global technology companies, DigiTimes reports.
• AI Memory - The global 5G fixed wireless access CPE market recorded its first Y/Y shipment decline in Q1, with shipments falling 8.7% to 2.835mln units, amid an AI-driven memory crunch squeezing supply, according to DigiTimes.
• Applied Materials (AMAT) - Applied Materials entered a definitive agreement with ASMPT Limited to acquire its NEXX business. The company said NEXX’s team and products will broaden Applied Materials’ panel-level advanced packaging technology portfolio, supporting chipmakers and systems companies in building larger-body AI accelerators for more energy-efficient performance.
• Anthropic - Anthropic is finalising a JV with Blackstone (BX), Goldman Sachs (GS), and other Wall Street firms, with the venture targeting AI tools for private equity-backed companies, WSJ reports. Anthropic, Blackstone, and Hellman & Friedman are each expected to invest around USD 300mln, bringing the total to approximately USD 1.5bln, with an announcement expected as soon as Monday, the report said. Separately, Anthropic has been in talks to purchase inference chips from London-based startup Fractile, to run its AI models more efficiently amid rising compute demands from inferential AI tasks, The Information reports.
• Cerebras Systems - Cerebras Systems is seeking to raise up to USD 4bln in its IPO at a valuation of about USD 40bln, Bloomberg reports. The AI chipmaker and data centre operator plans to begin formal marketing for the listing as soon as Monday, sources said.

COMMUNICATIONS:

• Meta Platforms (META) - Meta faces a New Mexico trial over whether Facebook, Instagram and WhatsApp created a public nuisance harming young users, Reuters reports. The state seeks billions in damages and changes including age verification, algorithm redesign and ending autoplay and infinite scrolling for minors. Meta denies liability, says many requested changes are impractical or impossible, and warned it may withdraw from New Mexico.
• Disney (DIS) - Disney’s The Devil Wears Prada 2 brought in USD 233mln globally, marking one of the largest opening weekends of the year; it generated USD 77mln in US and Canadian ticket sales, according to Comscore, below BoxOffice Pro’s USD 100mln forecast, but within Disney’s USD 75-80mln expectation range.
• Manchester United (MANU) - Man Utd secured a return to the Champions League competition in 2026-27, after beating Liverpool 3-2 on Sunday, ending a two-year absence from Europe’s elite competition. Some have suggested that the club could see around GBP 100mln+ total revenue uplift from participation, The Times has previously reported.

FINANCIALS:

• Private Credit - Fed’s Barr warned that stress in private credit could trigger “psychological contagion” and a broader credit crunch, Bloomberg reports. Barr said direct links between banks and private credit did not yet appear “super worrisome”, but highlighted concerns including the insurance sector’s overlaps with private lenders.
• Asia USD Bond Sales - APAC USD bond issuance is expected to remain steady this month after an April surge, Bloomberg reports. The region recorded USD 38bln of issuance last month, the busiest April since 2021, compared with USD 22bln in March, as borrowers used a post-US-Iran ceasefire lull after energy-sensitive Asian economies were hit by the Iran war.
• Berkshire Hathaway (BRK.B) - Q1 revenue rose to USD 93.68bln (vs 89.73bln Y/Y), and net earnings more than doubled to USD 10.1bln (vs 4.67bln Y/Y), though Berkshire said net income can be misleading because it includes unrealised gains and losses on stock holdings. Cash rose to a record USD 380.2bln, ex-unsettled Treasury bill purchases, while Berkshire sold USD 8.1bln more stocks than it bought, marking its 14th straight quarter as a net seller of equities. Its five largest holdings at each date were American Express (AXP), Apple (AAPL), Bank of America (BAC), Coca-Cola (KO) and Chevron (CVX). Insurance operating profit +4% Y/Y to USD 4.4bln, despite Geico pre-tax underwriting profit falling 35%; BNSF profit +13% to USD 1.38bln, Berkshire Hathaway Energy profit +2%, and manufacturing, service and retail profit +5% to USD 3.2bln. It repurchased USD 234mln of stock in Q1, its first buybacks since May 2024, but made no repurchases in the first two weeks of April. Berkshire shareholders broadly praised CEO Greg Abel’s first annual meeting, CNBC reports; he discussed Berkshire’s railroad, energy, insurance and retail units, plus AI opportunities at BNSF Railway and utilities; some were disappointed by limited Q1 buybacks of USD 235mln, despite positive reactions to the new format. Elsewhere, former chief Warren Buffett said markets were in a “gambling mood” and Berkshire lacked an ideal investing environment.
• UBS Group (UBS) - A group of 13 Swiss lawmakers will meet in Bern to begin the legislative process shaping UBS Group’s future, Bloomberg reports. The closed-door Upper House Economic Affairs and Taxation Committee hearing will frame debate in the parliamentary chamber expected to vote on the bill first, potentially as early as June.

CONSUMER:

• Ebay (EBAY), GameStop (GME) - GameStop CEO Ryan Cohen made an unsolicited offer to buy eBay for about USD 56bln, WSJ reports. Cohen said GameStop had built a roughly 5% stake in eBay, and offered USD 125/shr in cash and stock, about a 20% premium to eBay’s Friday close, aiming to make eBay a stronger competitor to Amazon (AMZN). Cohen said that if eBay is not receptive to the proposal, he is prepared to run a proxy fight and take the offer directly to the shareholders.
• EU Automakers - EU Automakers were under pressure at the start of the week after President Trump threatened to raise tariffs on EU car and truck imports to 25% under Section 232 over alleged non-compliance with the US-EU trade agreement; the EU Commission described the threats as “unacceptable” and said it is keeping its options open.
• US Automakers - An aluminium shortage is disrupting the US auto industry, with Ford F-150 and Super Duty truck supply particularly affected, WSJ reports. A Dallas-Fort Worth Ford (F) dealer noted F-150 inventory had fallen to approximately 42 days’ supply, down from a normal level of around 60 days.
• KB Home (KBH) - KB Home CFO Robert Dillard resigned on 29th April, effective 8th May; the decision was not related to any disagreement with KB Home or its financial, accounting policies or practices.
• Dollar Tree (DLTR) - Dollar Tree was named entitlement sponsor of the NASCAR Cup Series race at New Hampshire Motor Speedway and Official Value Retailer of Speedway Motorsports.

ENERGY:

• OPEC - OPEC+ agreed to raise June oil output quotas by 188K BPD, its third consecutive monthly increase, Reuters reports. The increase is expected to remain largely symbolic while the Iran war disrupts Gulf exports through the Strait of Hormuz. Saudi Arabia’s quota will rise to 10.291mln bpd, while seven OPEC+ members will meet again on 7th June.
• Brent Prices - Barclays raised its 2026 Brent crude oil price forecast to USD 100/bbl (prev. saw 85/bbl), citing restricted Strait of Hormuz flows, accelerating inventory draws, and offset US builds, with risks skewed higher the longer the disruption persists.
• UAE - Adnoc announced plans to accelerate its growth strategy with around USD 55bln in project awards across upstream and downstream operations following the UAE’s exit from OPEC. 2026. The spending, part of USD 150bln earmarked in capex through 2030, is planned for 2026-2028 and is intended to meet rising global energy demand.

INDUSTRIALS:

• MSC Mediterranean Shipping Co. - MSC is launching a new service linking Europe with Middle East ports, bypassing the blocked Strait of Hormuz by using overland trucking across Saudi Arabia and smaller vessels in the Persian Gulf, Bloomberg reports. The first sailing departs Antwerp on 10th May, with stops in Germany, Italy, Lithuania, and Spain.
• Sprit Aviation (FLYYQ) - Spirit Airlines said it had nearly completed passenger refunds and crew returns after ceasing operations over the weekend. The shutdown followed financial pressures, higher fuel costs linked to the Iran war, failed talks over President Trump’s USD 500mln rescue plan, lender opposition, and no board agreement. American Airlines (AAL) and United Airlines (UAL) announced support for customers affected by Spirits’ termination of operations; American said it added rescue fares on overlapping Spirit routes and is reviewing extra capacity, while United said it launched price-capped one-way fares from most Spirit cities for two weeks.
• US Airlines - US Transport Secretary Duffy said the government does not currently need to provide financial support to low-cost carriers following the collapse of Spirit Aviation (FLYYQ), stating that remaining carriers have access to cash.
• Boeing (BA) - EgyptAir took delivery of its first 737 MAX. The 737-8 is the first of 18 aircraft leased from SMBC Aviation Capital and the first 737 MAX in Egypt.
• RTX (RTX) - RTX was awarded a USD 441.6mln Army contract modification for PATRIOT GEM-T missiles supporting Operation Epic Fury; the modification brings the contract’s total cumulative face value to USD 441.6mln.
• Lockheed Martin (LMT) - Lockheed Martin was selected by US Space Force Space Systems Command to develop capabilities for the Space-Based Interceptor programme.

MATERIALS:

• Thyssenkrupp (TKAMY) - Thyssenkrupp and Jindal Steel have paused talks over the Indian company acquiring a stake in Thyssenkrupp’s steel unit, with the German firm citing materially changed assumptions and prerequisites for a potential sale of Thyssenkrupp Steel in recent months, Bloomberg reports.

HEALTHCARE:

• Incyte (INCY) - FDA approved Jakafi XR extended-release tablets for adults with intermediate- or high-risk myelofibrosis, certain adults with polycythaemia vera, and adults and children aged 12 and older with steroid-refractory acute or chronic GVHD after prior systemic therapy.
• Edwards Lifesciences (EW) - Edwards Lifesciences announced 10-year Commence aortic trial results for surgical valves using Resilia tissue. Data showed 97.9% freedom from structural valve deterioration, 97.8% freedom from reoperation due to SVD, 98.6% freedom from non-structural valve dysfunction, and sustained haemodynamic performance.
• BioMarin (BMRN) - BioMarin Pharmaceutical announced new Voxzogo research in children with achondroplasia showing positive effects on arm span and bone density. Data from three ongoing long-term extension trials showed improved arm span Z-scores, stable arm span-to-height ratio and proportional skeletal growth.