Daily US Equity Opening News - Samsung prelim figures weigh on tech; AI providers offering discounts; WMT cuts prices; ABBV lowers guidance; SEGXF investors urge higher PLD offer; SHEL guides lower Q2 gas production

DAY AHEAD:

• EVENTS: NATO Ankara Summit underway; President Trump to meet Turkish President Erdogan bilaterally before attending the NATO Leaders’ Social Dinner.
• DATA: In North America, weekly ADP employment figures will be published (the prior weekly figure stood at 30,750). The US trade deficit is expected to widen to USD -78.0bln in May (from USD -55.9bln); The NY Fed Survey of Consumer Expectations for June is due; after today’s data, the Atlanta Fed will update its Q2 GDPNow tracking estimate (which currently tracks growth of 1.20%). Canada’s trade balance is seen little changed at CAD 2.7bln (prev. CAD 2.72bln); Canada Ivey PMI is seen edging up to 59.1 in June (prev. 58.2).
• CENTRAL BANKS: The BoE will publish its Financial Stability Report. BoE’s Mann (hawkish) takes part in a leadership panel. Fed’s Bowman (voter) is due to give opening remarks.
• SUPPLY: US auctions USD 58bln of 3-year notes. UK auctions GBP 4bln of 2033 Treasury debt; Germany auctions EUR 0.5bln of 2027 Green, and EUR 1bln of 2041.
• ENERGY: EIA Short-Term Energy Outlook published. API weekly energy inventories due after hours.

NEWS:

GEOPOLITICS:

• Iran - Iran’s military fired at least two missiles at commercial ships in the Strait of Hormuz, Axios reported. The UK MTO said a tanker near Oman was struck by an unknown projectile, causing a fire. Fars reported that the Qatari tanker attempted to pass through the Omani route and ignored repeated warnings. A US official said a second vessel was also hit; both suffered significant damage with no casualties. Elsewhere, Iran Foreign Minister Araghchi said negotiations on a final deal would not start if US threats continued.
• China - China’s Navy said China test-launched a long-range ballistic missile from a nuclear submarine on 6th July, carrying a simulated warhead to a designated Pacific Ocean area, WSJ reports. Beijing described the test as routine annual military training, and not directed at any specific country. The US State Department, Australia and Japan condemned the launch, with Australia describing it as destabilising to the region.

TRADE:

• US-China - China state-owned Cofco has booked at least six cargoes of US soybeans for loading between September and October, as agricultural trade gains momentum following the May Trump-Xi summit, according to Bloomberg.

MACRO:

• Japan - Japan’s 30yr bonds rose after an auction drew the strongest demand since 2019; cover was at 4.55x (vs prev. 2.94x, and 12-month average of 3.41x). Elsewhere, Japan’s Growth Strategy Minister denied reports that PM Takaichi’s administration is encouraging low interest rates as part of its fiscal expansion policy, stating there was “absolutely no truth” to such claims. The JPY rose to following his remarks.
• APAC Issuance - Japanese borrowers drove APAC offshore bond issuance to a record USD 154bln equivalent in Q2, Bloomberg reports. Japanese issuers accounted for about 40%, selling around USD 62bln of USD- and EUR-denominated bonds, ahead of Australian issuers at about USD 26bln, and China at roughly USD 20bln. Analysts at Citigroup expect robust H2 issuance.
• Chinese Yuan - The PBoC announced measures to boost Hong Kong’s offshore yuan hub status, including more than doubling the RMB Business Facility to CNY 500bln, and raising the Southbound Bond Connect annual quota to CNY 800bln from CNY 500bln. The central bank will also support the launch of more CNY-priced commodity products, and increase foreign reserve allocations to Hong Kong.

TECH:

• Samsung Electronics (SSNLF) - Samsung shares fell overnight after it announced prelim. Q2 figures, where despite stronger-than-expected record profit, the results were seen as priced in and failed to ease concerns about the sustainability of the AI-driven memory chip boom, and as results included one-off employee bonus provisions. Q2 prelim. operating profit seen at KRW 89.4tln (exp. 84.2tln), Q2 prelim. revenue at KRW 171tln (exp. 172.2tln). The results include deducted one-off expenses for employee bonus provisions following recent labour negotiations, after it agreed earlier this year to scrap its 1,000% base salary bonus cap and earmark 10.5% of operating profit for bonuses.
• Samsung Electronics (SSNLF), SK Hynix (SKHY) - Samsung and SK Hynix are reportedly accelerating efforts to reduce China’s role in their semiconductor supply chains in preparation for potentially tighter US export controls, restructuring their sourcing accordingly, DigiTimes reports.
• TSMC (TSM) - Nvidia (NVDA) and other AI chipmakers continue to face shortages as TSMC’s advanced-node and CoWoS packaging capacity remains constrained, pushing demand into foundries, back-end assembly, testing and overseas fabs, DigiTimes reports.
• LG Electronics (066570 KS) - Announced Q2 prelim. operating profit of KRW 1.58tln (vs 0.64tln Y/Y), Q2 prelim. revenue of KRW 23.8tln (vs 20.7tln Y/Y). Performance was driven by robust premium home appliance and television sales. Air conditioner sales increased in overseas markets during peak seasonal demand, while continued growth in vehicle components helped offset uncertainty from the Middle East conflict. For H1, revenue rose to a record KRW 47.56tln, and operating profit reached KRW 3.25tln, exceeding the company’s FY operating profit of KRW 2.48tln recorded last year.
• AI Providers - OpenAI, Anthropic and other AI companies are offering computing credits and discounts to startups in a race to win enterprise customers, WSJ reports. Cursor, the AI-coding company acquired by SpaceX, offered a 75% discount through 5th July. The competition reflects efforts by AI model makers to secure lasting revenue streams from business users, WSJ adds.
• CoreWeave (CRWV), Galaxy Digital (GLXY) - Galaxy Digital completed Phase I power delivery at its Helios data centre campus in West Texas for CoreWeave, providing about 200 MW gross power and 133 MW critical IT load. Rent under the Phase I lease began in Q2 2026. Phase II development is underway, with data hall deliveries expected to begin in H1 2027.

FINANCIALS:

• Private Credit, HSBC (HSBC) - HSBC is halting back leverage to riskier private credit clients, telling funds in recent weeks it will not renew facilities where returns do not justify the risk, according to sources cited by the FT. HSBC said it is adjusting its risk tolerance to the sector, and will continue providing other services to affected funds.
• KKR & Co. (KKR) - KKR & Co.’s retail private credit fund KKR FS Income Trust received Q2 repurchase requests totalling 1.65% of outstanding shares, well below the 5% limit and down from 6.3% in Q1 when requests were prorated at approximately 80%, Bloomberg reports. Sister fund KKR FS Income Trust Select received requests of 3.43% (prev. 3.7%), with both funds fulfilling all redemptions in full.
• Fiserv (FISV) - JPMorgan (JPM), Bank of America (BAC) and other large banks held preliminary talks to acquire a Fiserv debit-card network, WSJ reports. Owning a network such as STAR or Accel could have exempted banks from Durbin amendment debit-fee caps. Some banks stepped back, citing possible backlash from lawmakers, regulators and merchants, the report added.
• JPMorgan (JPM) - JPMorgan Chase relaxed return-to-office rules for London staff during a heat wave, Bloomberg reports.

REAL ESTATE:

• Segro (SEGXF), Prologis (PLD) - Segro investors are urging Prologis to improve the GBP 12.6bln all-stock offer (925p/shr), rejected at end of June as “opportunistically timed”; PLD must PUSU by 22nd July; analysts at Jefferies predict a potential additional 80-140p/shr.

CONSUMER:

• Walmart (WMT) - Walmart announced price cuts on beef, produce, drinks, pools, toys, grills and summer clothing, citing investments in price for the summer season. US President Trump posted on social media claiming the cuts were made at his administration’s request, though Walmart’s statement made no mention of him or his administration, NYT notes.
• Renault (RNLSY), BYD (BYDDY) - BYD approached Renault’s management on two occasions in recent years to propose taking a stake in the French carmaker, Les Echos reports. The first approach was made approximately two years ago, when Luca de Meo was still chief executive. BYD’s number two, Stella Li, met Renault chairman Jean-Dominique Senard in Autumn 2025. Neither approach succeeded.
• Renault (RNLSY), BYD (BYDDY) - BYD approached Renault’s management on two separate occasions in recent years to propose acquiring a stake in the French carmaker, Les Echos reports; the first approach came around two years ago during Luca de Meo’s tenure as chief executive and last Autumn, BYD’s number two Stella Li met Renault chairman Senard; neither approach succeeded.
• Volkswagen (VWAGY) - VW board intends to present a far-reaching cost-cutting programme to the supervisory board on Thursday, WiWo reports; the measures extend beyond employee costs, and sources indicate that no agreement between the company and employee representatives is expected on Thursday given the scale of the proposals.
• Toyota (TM) - Toyota North America will invest USD 3.6bln to expand its San Antonio plant with a second assembly line for the Tacoma truck, creating 2,000 jobs and doubling the facility’s footprint to 2.5mln sqft by 2030. Tacoma production will transition from Toyota Motor Manufacturing Baja California over approximately four years, bringing total San Antonio investment to USD 8.3bln since 2003.
• Rivian (RIVN) - Rivian stock fell in extended trading after the company filed to sell 75mln shares of common stock. It also guided Q2 revenue between USD 1.55-1.65bln (exp. USD 1.44bln), citing higher vehicle deliveries partially offset by lower average selling prices from a greater commercial van mix.

INDUSTRIALS:

• LG Energy (373220 KS) - Q2 operating profit KRW 113.3bln (exp. 210.7bln), Q2 revenue KRW 7.56tln (exp. 7.22tln). Operating profit fell 77% Y/Y as sluggish EV demand continued to weigh on battery sales, though revenue still rose 24.8% Y/Y. Quarterly guidance includes US Inflation Reduction Act tax credits for battery production in the US; excluding those credits, LG Energy would have posted an operating loss of KRW 128bln.
• SpaceX (SPCX) - At least six brokers initiated SpaceX with buy ratings after the quiet period expired for underwriters of the IPO. Morgan Stanley set a price target of USD 300/share, implying 87% upside, with a bull case of USD 600 and bear case of USD 75; Goldman Sachs and UBS set targets of USD 205 and USD 210 respectively.
• Proxima Fusion - Proxima Fusion raised EUR 411mln in a financing round led by XTX Ventures and East X Ventures, valuing the German nuclear fusion startup at EUR 2.4bln. Investors include RWE AG (RWEOY) and Alphabet’s (GOOG) Google. The company has raised over EUR 650mln to date, and plans to build a fusion demonstrator called Alpha on a decommissioned RWE nuclear site in Bavaria at a cost of EUR 2bln.
• L3Harris Technologies (LHX) - L3Harris was awarded a Missile Defence Agency contract worth up to USD 499.57mln.
• Lockheed Martin (LMT) - Lockheed was awarded a USD 142.91mln Air Force contract for C-5 Galaxy software sustainment services.

MATERIALS:

• Lithium Prices - A more than threefold rise in China’s lithium carbonate price over the past year has renewed interest in sodium-ion batteries, with the technology increasingly viewed as a potential mainstream alternative to lithium batteries, DigiTimes reports. China’s mass production of sodium-ion cells is driving a global race to commercialise the technology.
• Vale (VALE) - Daniel Andre Stieler resigned as Vale’s board member and chairman, effective immediately. Vale thanked him for his leadership, dedication and contributions since joining the board in 2021 and becoming chairman in 2023. Item 1 of the EGM agenda for 22nd July -- which called for the removal of Stieler as a Board member, which management recommended rejecting -- is now without effect, while remaining items are unchanged.
• BHP Group (BHP) - BHP received environmental approval from Chile’s Antofagasta Environmental Assessment Commission to begin early-stage works for an expansion of its Escondida copper mine, Bloomberg reports. The approved work includes sulphide leaching and electricity upgrades, enabling a tranche of work worth up to USD 14.7bln to start.

ENERGY:

• Saudi Pipeline - Saudi Arabia is reportedly planning to expand its East-West crude oil pipeline capacity by up to 2mln BPD to increase exports via the Red Sea. The project aims to reduce the Kingdom’s reliance on the Strait of Hormuz.
• Shell (SHEL) - Shell guided Q2 upstream production of 1.75-1.85mln boepd (vs Q1’s 1.843mln boepd), with integrated gas production of 610-650k boepd (vs Q1’s 909k boepd), reflecting the impact of the Middle East conflict on Qatari volumes. Q2 indicative refining margins were guided at approximately USD 20/bbl (vs Q1’s USD 17/bbl), with gas trading expected significantly higher Q/Q.
• Adnoc, Shell (SHEL) - Adnoc agreed to acquire Shell’s South Africa fuel station network at a USD 1bln enterprise value, gaining 580 retail sites alongside wholesale fuel, aviation and lubricants operations. The deal, expected to close next year, will give Adnoc its first presence in Africa’s largest economy. Post-close, Adnoc plans to sell a 28% stake to a local empowerment partner and offer employee stock options.
• Saipem (SAPMY) - Saipem has been awarded a USD 2bln contract for the engineering, procurement, construction and installation of a floating production, storage and offloading unit for the Kutei North Hub Field Development project in the Kutei basin, Indonesia.

HEALTHCARE:

• Vertex (VRTX), Crinetics Pharmaceuticals (CRNX) - Vertex will acquire Crinetics for USD 85.00/shr in cash, valuing the company at about USD 10.0bln. The deal, approved by both boards, is expected to close in Q3 2026. Crinetics adds PALSONIFY and Phase 3 candidate atumelnant to Vertex’ portfolio.
• AbbVie (ABBV) - AbbVie said Q2 prelim adj. EPS is seen between 3.57-3.61 (exp. 3.79). The preliminary Q2 range includes USD 291mln of acquired IPR&D and milestone expense on a pre-tax basis, representing an unfavourable impact of 0.17/shr to both GAAP diluted EPS and adj. diluted EPS. Lowered its FY26 guidance; sees adj. EPS between 13.91-14.11 (exp. 14.28; prev. saw 14.08-14.28), reflecting the impact of Q2 acquired IPR&D and milestone expenses.
• Alcon (ALC), RxSight (RXST) - Alcon and RxSight announced a non-exclusive collaboration to develop adjustable presbyopia-correcting intraocular lenses. The agreement combines RxSight’s post-operative light-adjustable technology with Alcon’s PCIOL optical designs. RxSight will receive USD 60mln upfront and may receive up to USD 140mln in development and regulatory milestones, plus royalties, while Alcon will lead global commercialisation.
• Genmab (GMAB) - Genmab said the European Commission granted marketing authorisation for TEPKINLY (epcoritamab) in combination with lenalidomide and rituximab for the treatment of adult patients with relapsed or refractory follicular lymphoma.