Daily US Equity Opening News - AMD and Anthropic reportedly sign a major chip deal; SMCI gives strong Q4 prelim GM outlook

DAY AHEAD:

• US INDEX FUTURES: ES -0.4%, NQ -1.1%, YM -0.2%, RUT -0.5%
• BROKER MOVES: FLNC upgraded at Citi; PEGA downgraded at Citizens. For the full list, click here.
• MAJOR MORNING MOVES RECAP: SMCI, CB, EQNR, TEL, GEV, T, PHM, PM, OKLO/XE. For the full list, click here.
• US DAILY CONFERENCE CALENDAR: SPGI. For the full list, click here.
• SUPPLY: US sells USD 13bln of 20-year bonds.
• EARNINGS: Notable corporate earnings reports due to be released today after the close include: Alphabet (GOOGL), Texas Instruments (TXN), CSX (CSX), Tesla (TSLA), Kinder Morgan (KMI), Las Vegas Sands (LVS), Rollins (ROL), International Business Machines (IBM), ServiceNow (NOW), Raymond James Financial (RJF), Crown Castle (CCI), Globe Life (GL), AvalonBay Communities (AVB), United Rentals (URI), Sonoco Products (SON), Southwest Airlines (LUV), Equity Residential (EQR), Packaging Corporation of America (PKG).

NEWS:

GEOPOLITICS

• US-Iran - US President Trump said Washington has no interest in talks with Iran until Tehran is ready for meaningful negotiations, while signalling possible strikes near uranium-enrichment sites. US attacks continued for an 11th night as Iran widened operations against Gulf states. Pakistan urged restraint and intensified mediation through talks with Iranian officials. US Central Command said its forces struck Iranian military operations centres, maritime capabilities, aircraft hangars, drone storage sites and logistics infrastructure to reduce threats to commercial shipping in the Strait of Hormuz; it added that Iran had attacked more than 30 commercial vessels in the waterway over the past three months.
• Russia-Ukraine - Russia no longer plans to return some occupied Ukrainian territories and intends to retain parts of Sumy and Kharkiv as buffer zones, Bloomberg reports. Russian President Putin also remains committed to taking full control of Donetsk by force, the report adds.

TECH

• AMD (AMD) - AMD and Anthropic signed a major chips-and-investment deal, WSJ reports; Anthropic will purchase up to 2GW of AMD's latest-generation chips, Instinct MI450, starting in the H1 2027. AMD and Anthropic have signed a deal for tens of billions of dollars' worth of artificial-intelligence servers, strengthening AMD's competitive position against Nvidia and supplying Anthropic with much-needed computing power. AMD will invest up to USD 5bln in Anthropic -- its first check into the AI firm -- as certain deployment milestones are met. AMD is also in talks to provide a financial backstop for Anthropic's future data-center leases as well, according to a person with direct knowledge of the talks.
• Samsung Electronics (SSNLF), Nvidia (NVDA), SK Hynix (SKHY) - Samsung Electronics’ Lee Jae-yong, SK Group’s Chey Tae-won and Naver’s Lee Hae-jin are expected to meet Nvidia CEO Jensen Huang for a roundtable event near Silicon Valley on Friday, Korea JoongAng Daily reports. OpenAI’s Sam Altman and Anthropic’s Dario Amodei may also attend, bringing together leaders across memory, GPUs and generative AI services.
• SK Hynix (SKHY), Intel (INTC) - SK Hynix is considering acquiring Intel’s Ohio semiconductor campus to establish US front-end memory production within five years, Korea JoongAng Daily reported on Tuesday. However, later overnight, SK Hynix denied it was acquiring the fab, and Intel also denied it was selling it.
• Nvidia (NVDA), Wistron (3231 TT) - Nvidia supplier Wistron opened a USD 700mln manufacturing site in Fort Worth, Texas, to produce AI servers for US customers. The facility will initially build systems using Nvidia Grace Blackwell chips and later Vera Rubin products. Wistron displayed its first locally made GB300 superchip module at the opening.
• China AI - Nvidia (NVDA) CEO Huang believes the US has nothing to fear from China's open-source AI models, and everything to fear from the growing campaign to ban them, Axios reports.
• OpenAI - OpenAI has introduced "Presence," a new corporate software platform designed to integrate AI agents with internal company data, policies, and existing workflows, Business Insider reports.
• Samsung Electronics (SSNLF) - Samsung is in talks to invest about EUR 1bln in Mistral at a valuation near EUR 20bln, the FT reports. EQT’s Scaleup Europe Fund may also participate.
• OpenAI - OpenAI said GPT-5.6 Sol and an unreleased model escaped a controlled test environment and exploited vulnerabilities in Hugging Face to obtain ExploitGym answers, Fortune reports. OpenAI called it an unprecedented cyber incident, disclosed a zero-day, tightened controls and added Hugging Face to its trusted-access programme while both companies continue investigating.
• Super Micro Computer (SMCI) - Reported Q4 prelim figures, sees revenue near the low end of USD 11.0-12.5bln (exp. 11.73bln), Q4 prelim gross margin between 15-17% (exp. 8.2-8.4%); gross margin is expected to be significantly above prior guidance, due to favourable customer and product mix, while revenue is expected near the low end of the prior range. It booked more than USD 60bln of new orders in Q4, expected to be delivered over future quarters, lifting backlog to a record level at the end of FY26. The board is conducting an independent review regarding export-control issues. It is scheduled to report final Q4 FY26 results on 11th August.
• Teledyne (TDY) Q2 2026 (USD): Non-GAAP EPS 6.28 (exp. 5.79), Revenue 1.66bln (exp. 1.58bln). Sees Q3 non-GAAP EPS of 6.05-6.15 (exp. 6.00) and FY26 non-GAAP EPS of 24.45-24.65 (exp. 24.17).
• LG Display (034220 KS) - LG Display posted H1 operating profit of KRW 39bln on revenue of KRW 11.15tln, reversing a KRW 82.6bln loss, The Korea Herald reports. Q2 produced a KRW 107.7bln operating loss (exp. -88.2bln), due to seasonal weakness and retirement costs. Management expects H2 improvement through cost reductions and OLED growth.
• TE Connectivity (TEL) Q3 2026 (USD): Adj. EPS 2.94 (exp. 2.84), Revenue 5.16bln (exp. 5.01bln). To acquire Astrodyne TDI for USD 1.4bln. Sees Q4 adj. EPS at 3.05 (exp. 2.97) and Q4 revenue of 5.25bln (exp. 5.16bln).
• CoreWeave (CRWV) - Upgraded at Truist to 'Buy' from 'Hold' with a USD 126 PT (prev. 131). As more enterprises move toward open models and sovereign AI, the firm believes demand for compute will only increase, benefiting CoreWeave, though shares trade at a significant discount to neoclouds despite the company's "leadership position". The firm views Meta's (META) entry into the space as a risk, but believes Meta will maintain its existing contracts and terms. However, if Meta does not renew, the firm expects other enterprises to absorb the computing capacity, the analyst added.
• Pegasystems (PEGA) Q2 2026 (USD): Adj. EPS 0.35 (exp. 0.43), Revenue 420.72mln (exp. 426.6mln). Downgraded at Citizens to 'Market Perform' from 'Outperform'. The company announced "disappointing" Q2 results, saying "unprecedented changes in the AI market caused clients to delay their purchasing decisions". Citizens moves to the sidelines to better understand the underlying dynamics that are delaying purchase decisions. It points out that the company said current market factors may continue to adversely affect its contract value growth rate for the rest of the year.
• Baidu (BIDU) - Received acknowledgement from the Hong Kong stock exchange for dual-primary listing application; effective date for dual-primary listing expected within 2026, subject to approval.
• Adtran (ADTN) - Sees Q2 EPS of 0.03-0.05 (exp. 0.13) and cut Q2 revenue view to USD 280-282mln (exp. 293.43mln, prev. 283-303mln). Sees Q revenue of USD 275-295mln (exp. 300.34mln).

FINANCIALS

• JPMorgan (JPM), Goldman Sachs (GS) - JPMorgan and Goldman Sachs are among banks set to earn over USD 100mln in fees from underwriting SoftBank’s (SFTBY) record USD 40bln bridge loan for its OpenAI investment.
• Interactive Brokers (IBKR) Q2 2026 (USD): Adj. EPS 0.69 (exp. 0.64), Revenue 1.9bln (exp. 1.8bln). Commission revenue +30% Y/Y to 673mln, driven by higher customer trading volumes, with options, stock and futures volumes up 17%, 14% and 2%, respectively. Net interest income +23% Y/Y to 1.06bln (exp. 994mln), primarily reflecting higher average customer margin loans, and customer credit balances. Customer accounts +34% to 5.19mln, customer equity +40% to 930.3bln and total DARTs +36% to 4.82mln.
• Capital One Financial (COF) Q2 2026 (USD): Adj. EPS 5.81 (exp. 4.69), Revenue 15.90bln (exp. 15.77bln). Exec said results reflected solid top-line growth and strong credit performance, adding that it is now 14 months into its integration of Discover and that the integration is going well.
• Chubb (CB) - Q2 core EPS 7.26 (exp. 6.59), Q2 net premiums written USD 14.7bln (exp. 15.0bln). Said soft market conditions are spreading beyond property into casualty.
• CME Group Inc. (CME) Q2 2026 (USD): Adj. EPS 2.99 (exp. 2.91), Revenue 1.70bln (exp. 1.68bln). CME said perpetual futures function more like leveraged spot products, making them attractive to leveraged retail traders but less suitable for the institutional risk managers that make up most of its business.
• Moody's (MCO) Q2 26 (USD): Adj. EPS 4.68 (exp. 4.24), Revenue 2.2bln (exp. 2.08bln). Reaffirmed guidance for FY26 MCO revenue growth in the high-single-digit per cent range and narrowed adj. EPS guidance to 16.50-17.00 (exp. 16.76). Raised FY26 share repurchase guidance to USD 3.0bln.
• Western Alliance (WAL) Q2 2026 (USD): EPS 2.36 (exp. 2.35), Revenue 995.7mln (exp. 982.98mln). Results were driven by HFI loan growth of 1.8bln, reflecting continued momentum in C&I businesses, while net interest income rose 4% sequentially on a USD 2.7bln increase in average earning assets and a stable net interest margin supported by lower funding costs. Asset quality trends improved, with special mention loans down around 22%, classified accruing loans down 3.3%, and net charge-offs down 2bps vs Q1 to 0.37%. Allowance for credit losses ratio +2bps to 0.89%.
• Goldman Sachs (GS) - Goldman Sachs has created a new alternative investment platform to expand its private markets offerings for wealthy clients, Reuters reports, citing an internal memo. The platform will be led by Matt Doherty and will focus on helping clients invest in private market assets, build alternative investment portfolios, and manage those portfolios, with the bank's alternative capital markets business remaining at its core.
• Coinbase (COIN) - US SEC settled the FOIA lawsuit with Coinbase over lost messages, reports WSJ; "As part of our settlement, the SEC will pay USD 150,000 and fix its record-retention policies."
• Robinhood (HOOD) - Robinhood is reportedly retooling its Platinum Card after some customer complaints, WSJ reports.
• Santander (SAN) - Santander’s Q2 net profit rose, supported by higher revenue and two months of TSB contributions. It reported Q2 EPS of 0.23 (exp. 0.30), net income of EUR 3.52bln (exp. 3.33bln) and pretax profit of EUR 5.32bln (exp. 5.37bln). H1 adj. net income rose 15% Y/Y to EUR 7.3bln, while pretax profit increased 11% to EUR 10.3bln. EUR 250mln of UK restructuring charges partly offset performance. FY26 guidance was reaffirmed.
• Northern Trust (NTRS) Q2 2026 (USD): EPS 4.23 (exp. 4.62), Revenue 2.71bln (exp. 2.55bln); approved 10% increase in quarterly dividend to 0.88/shr.

INDUSTRIALS

• CMA CGM - CMA CGM, the world’s third-largest container shipping group, will impose an emergency fuel surcharge from 1st August following renewed hostilities in the Strait of Hormuz.
• CMA CGM, FedEx (FDX) - CMA CGM agreed to acquire FedEx Supply Chain from FedEx for USD 1.4bln. The deal, expected to close later in 2026 subject to approvals, will nearly triple CEVA Logistics’ North American contract logistics operations, creating a workforce of 20,000 across more than 240 locations and about 150 warehouses.
• United Airlines (UAL) - United Airlines’ union representing over 11,000 mechanics and other staff reached an in-principle contract after two years of bargaining, Reuters reports. The deal includes a USD 5,000 signing bonus per member, totalling USD 54mln, industry-leading wage increases and a reduction in progression to top pay from eight years to five, subject to ratification.
• Alaska Airlines (ALK) Q2 2026 (USD): Adj. EPS -0.92 (exp. -0.99), Revenue 4.07bln (exp. 4.09bln). RASM +8.6% Y/Y, CASM ex-fuel +6.5% Y/Y. Economic fuel cost USD 4.43/gallon. CEO said the quarter was affected by a fuel-price spike, though the airline returned to profitability in June. Sees Q3 adj. EPS between 0.00-1.00 (exp. 1.52), capacity +2-3% Y/Y, RASM up by low double digits Y/Y, CASM ex-fuel up by low to mid-single digits Y/Y, and economic fuel cost of USD 3.75/gallon.
• Alaska Airlines (ALK), Boeing (BA) - Alaska Airlines selected Hawaiian-branded Boeing 737-800 aircraft for Hawaiian Airlines’ Neighbour Island routes, replacing its retiring Boeing 717 fleet. Alaska Airlines will lease four Boeing 737-800 Converted Freighters, doubling its cargo fleet capacity and increasing its 737 freighters from five to nine; the aircraft are expected to enter service in H1 2027.
• AAR Corp. (AIR) Q4 2026 (USD): Adj. EPS 1.53 (vs 1.16 Y/Y), Revenue 928mln (vs 754.5mln Y/Y), driven by growth across parts, repair and software platform activities. Parts Supply revenue +39%; new parts Distribution organic growth +19%; Repair, Engineering and Software sales +35%, supported by higher Component MRO activity, increased Airframe MRO volumes and recurring revenue growth at Trax. CEO said momentum continued into Q4. Sees Q1 revenue growth, excluding LCP, between 21-23% and adj. EBITDA margin ex-LCP between 12.25-12.75%. Sees FY27 revenue growth ex-LCP in the low double digits to low teens.
• GE Vernova Inc. (GEV) Q2 2026 (USD): EPS 2.47 (exp. 3.19), Revenue 11.1bln (exp. 10.73bln); lifted 2026 guidance, now expects revenue of 45.5-46.5bln (exp. 45.45bln, prev. saw 44.5-45.5bln). "We are also seeing continued demand growth in Electrification, with data centre orders reaching over USD 5bln YTD, more than double our 2025 total”. Equipment orders more than doubled in Q2, while service orders rose more than 15%, reinforcing a sharp acceleration in power and electrification demand. Sees Q3 wind revenue down low double digits Y/Y due to lower onshore equipment deliveries; electrification revenue 3.8-4.0bln with modest sequential EBTIDA margin expansion, via conference call..
• Otis Worldwide (OTIS) Q2 2026 (USD): Adj. EPS 1.01 (exp. 1.01), Revenue 3.86bln (exp. 3.75bln). Lowered FY26 adj. EPS view to 4.01-4.05 (exp. 4.19, prev. 4.20-4.24) and backed FY26 revenue view of 15.1-15.3bln (exp. 15.12bln).
• Westinghouse Air Brake (WAB) Q2 2026 (USD): Adj. EPS 2.76 (exp. 2.60), Revenue 3.18bln (exp. 3.07bln); raised FY26 adj. EPS view to 10.60-10.90 (exp. 10.63, prev. 10.25-10.65) and raised FY26 revenue view to 12.3-12.6bln (exp. 12.39bln, prev. 12.19-12.49bln).
• Rocket Lab (RKLB) - Rocket Lab received a USD 266mln US Air Force contract for 12 suborbital launches, with six additional options.
• Joby (JOBY) - Joby and Virgin Atlantic sign multi-year agreement to bring electric air taxi service to the UK, that builds on Joby’s existing exclusivity arrangement with Delta Air Lines (DAL).
• Rheinmetall (RNMBY) - Rheinmetall plans to more than double annual gunpowder output at its Aschau am Inn plant to 4,200 metric tons by 2028, Bloomberg reports. It will also produce over 1mln propellant charges, invest EUR 350mln at Aschau and nearly double staffing to 1,300, alongside EUR 300mln for plants in Switzerland and Spain.
• Hitachi (HTHIY), Intel (INTC) - Hitachi has been selected by NEDO to lead a silicon quantum computing R&D project in collaboration with Intel (INTC) K.K. and AIST, running until March 2029. The project targets 100-qubit prototype systems by FY2028 and 1,000-qubit systems by FY2030, with a cloud service launch planned for FY2027. Intel’s 18A process technology will underpin qubit chip design and manufacturing.

MATERIALS

• Africa Gold - Islamist militants are increasingly targeting roads, communities and commercial networks near mining concessions in Burkina Faso, Mali and Niger, with gold-related sites accounting for roughly 90% of recorded incidents, Bloomberg said, citing conflict monitor ACLED. Armed groups are seeking to disrupt the broader mining economy rather than seize mineral resources directly, with Barrick Mining (B), B2Gold (BTO), Endeavour Mining (EDV) and Allied Gold (AAUC) among operators in the region.
• Akzo Nobel (AKZOY) - Reported Q2 revenue of EUR 2.59bln (exp. 2.57bln) and adj. EBITDA of EUR 398mln (exp. 392mln), though net income of EUR 139mln missed expectations (exp. 180mln); it affirmed FY26 guidance, flagging robust pricing and cost efficiency, adding that its merger with Axalta is progressing as planned.
• Coeur Mining (CDE) - Coeur Mining will invest USD 158mln in 2026 exploration, including USD 27mln at Palmarejo and USD 24mln at Las Chispas. Palmarejo drilling continues to expand high-grade mineralisation in the Eastern District and Main Mine Trend, supporting resource growth, potential mine-life extension and future production studies.
• Vale (VALE) - Vale shareholders will vote on a new chairman after board turmoil triggered by investor Previ’s effort to remove Daniel Stieler, Bloomberg reports. Most directors opposed the move, but Stieler resigned before his term ended, leaving shareholders to choose his replacement.

UTILITIES

• Utilities & Data Centres - Nearly 200 utilities, data centre developers and officials, including NextEra Energy (NEE), Duke Energy (DUK), Equinix (EQIX) and Digital Realty (DLR), joined President Trump’s pledge to prevent AI power demand raising consumer electricity bills, WSJ reports. The article adds that enforcement may be difficult because pricing is often controlled by state regulators and market participants.
• Oklo (OKLO), X-Energy (XE) - Oklo and X-Energy are joining a USD 200mln Trump administration programme with Microsoft (MSFT) and Nvidia (NVDA) to accelerate nuclear reactors for AI data centres, Bloomberg reports. The initiative targets faster plant design, licensing and construction amid rising electricity demand.
• Brookfield Infrastructure (BIPC), Brookfield Partners (BIP) - Brookfield Infrastructure Partners and Brookfield Infrastructure plan to combine into one listed corporation through one-for-one exchanges, while Brookfield Renewable Partners and Brookfield Renewable propose a similar consolidation expected in Q4. Brookfield ownership, preferred units and public debt will remain unchanged.

ENERGY

• Weekly Inventories - API data reportedly showed headline crude stocks posting a surprise build of +2.6mln bbls (exp. -0.5mln), Cushing stocks saw a draw of -0.7mln, distillates inventories saw a larger than expected build of +1.8mln bbls (exp. +1.0mln), while gasoline stocks posted a smaller than expected draw of -1.4mln bbls (exp. -1.8mln). EIA data will be published later today.
• Equinor (EQNR) Q2 2026 (USD): Adj. EPS 1.33 (exp. 1.38), Revenue 35.18bln (exp. 35.1bln). Adj. operating income after tax 3.44bln (exp. 3.36bln). It launched a third tranche of share buybacks of USD 1.125bln, and expects total share buybacks of USD 3bln for 2026. Affirmed its 2026 outlook, sees organic capex of around USD 13bln, and oil and gas production growth of around 3% vs 2026 levels.
• EQT Corporation (EQT) Q2 2026 (USD): EPS 0.39 (exp. 0.42), Revenue 1.81bln (exp. 1.87bln). Execs said results were driven by record-setting execution and strong well productivity that resulted in production above the high end of guidance. Raised FY26 total sales volume guidance to between 2,375-2,450 Bcfe, reflecting sustained production outperformance from compression investments; sees FY26 maintenance capex between USD 2.040-2.190bln; lowered FY capex guidance by USD 25mln. Sees Q3 total sales volume between 570-620 Bcfe, Q3 maintenance capex between USD 510-580mln, Q3 growth capex between USD 200-240mln, and 34-50 net wells turned-in-line.

HEALTHCARE

• Repligen (RGEN), BioLife Solutions (BLFS) - Repligen agreed to acquire BioLife Solutions in a cash-and-stock transaction valuing the company at ~USD 1.5bln EV. The transaction is expected to close in Q4 2026, subject to shareholder and regulatory approvals.
• Dyne Therapeutics (DYN) - Announced USD 300mln common stock offering - 18.3mln spot secondary priced at USD 20.50 in a USD 20.00-21.50 range.
• Celldex Therapeutics (CLDX) - Celldex will discontinue development of barzolvolimab for prurigo nodularis after the drug failed to meet the primary endpoint and key secondary endpoints in a mid-stage trial. The company said barzolvolimab did not demonstrate meaningful improvements in itch or skin lesions versus placebo, leading it to terminate development in the indication.
• McKesson (MCK) - Raised quarterly dividend c. 15% to USD 0.94/shr.

COMMUNICATIONS

• AT&T Inc (T) Q2 2026 (USD): Adj. EPS 0.65 (exp. 0.59), Revenue 31.6bln (exp. 31.80bln). Maintained FY adj. EPS of 2.25-2.35 (exp. 2.32). Wireless Postpaid Phone Net Adds +432k (exp. +325k). Adj. Op. Income 7.5bln (exp. 7.02bln). Added over 1mln Advanced Connectivity customers, driven by year-over-year increases in net adds across fibre, fixed wireless, and postpaid phone subscribers. Fibre delivered its best-ever Q2 net additions, while combined fiber and fixed wireless produced a record quarter.
• Trump Media (DJT) - Both Republican and Democrat Senators have raised concerns over Trump Media’s plan to sell real-time access to Truth Social posts from senior accounts to Wall Street firms. Democrat Senate leader Schumer called it insider trading, while Republican senators Murkowski and Tillis also questioned the propriety of the move.

CONSUMER DISCRETIONARY

• PulteGroup Inc. (PHM) Q2 (USD): EPS 2.48 (exp. 2.36), Revenue 3.98bln (exp. 3.94bln).
• Nike (NKE) - Plans to stop supplying thousands of online distributors in China from January as it seeks to streamline its digital marketplace and return the region to growth. Beginning in 2027, Nike's online sales in China will be focused primarily through its official website and app, along with its official storefronts on Tmall, JD.com, and Douyin.
• Volkswagen (VWAGY) - Volkswagen is accelerating its driver assistance and autonomous vehicle push in China with Horizon Robotics, with Level 2 systems due on Chinese roads in Q3, and Level 3 models targeted for delivery from H2 2027, in line with China’s planned rollout of higher autonomy standards in mass-market passenger cars.

REAL ESTATE

• Prologis (PLD) - Reportedly ready to increase its bid for Segro (SGRO LN) to GBP 10.317/shr, Bloomberg reports.
• KKR Real Estate Finance Trust (KREF) - Reported Q2 EPS at -0.58 (exp. -0.31). The board established a strategic review committee to evaluate possible alternatives to enhance shareholder value, which may include a sale of the company or its assets, a merger or another strategic transaction. Said there is no assurance the review will result in a transaction or change in business plan, and it has not set a definitive timetable, adding that it will not disclose further developments until the review is complete.

CONSUMER STAPLES

• Philip Morris International Inc. (PM) Q2 2026 (USD): Adj. EPS 2.20 (exp. 2.04), Revenue 11.2bln (exp. 10.61bln). Lowered FY26 adj. EPS view to 8.26-8.41 (exp. 8.39, prev. 8.36-8.51) and sees Q3 adj. EPS of 2.20-2.25 (exp. 2.43). Observed increased energy prices and some disruption in energy supply in a number of markets. Increased energy prices and disruption in energy supply have not yet resulted in a discernible shift in consumer behaviour.
• Cal-Maine Foods (CALM) Q4 2026 (USD): EPS -0.76 (exp. 0.11), Revenue 552.58mln (exp. 563.83mln).

TRADE

• Pharma Tariffs - US President Trump said US generic-drug imports will face zero tariffs from 1st August 2026, a 100% levy from August 2028 and 200% a year later. The phased tariffs aim to encourage US production, while patented and branded-drug tariffs remain unchanged.
• US-China - China’s Ping An Insurance has frozen new US private market investments since April 2025, following US President Trump’s tariff announcements, and has not resumed since, Bloomberg reports. The insurer asked at least one external asset manager to carve out US assets from a global fund strategy. Ping An continues to invest in US public markets, and is considering increasing exposure to European private markets, the report adds.
• EU-China - The yuan’s perceived undervaluation is a growing EU-China trade flashpoint, Bloomberg reports. The bloc’s deficit averaged USD 1.1bln a day in June; China’s trade surplus with the EU hit a record USD 32.9bln that month. The IMF estimated the yuan was 12-20% undervalued in real effective terms in 2025, with the two sides facing an October deadline on trade disagreements.

MACRO

• MSCI - MSCI said it will temporarily cap the weight of any single issuer in its MSCI USA Enhanced Value Index at 25% to address potential concentration risks. The exceptional issuer cap, to be reviewed monthly, will take effect from September 1.
• US Govt Shutdown - The House passed a stopgap funding bill 220-205 to extend government funding through 4th December, averting a shutdown ahead of November midterms. The measure now faces Senate demands for changes, including provisions requested by the White House. Democrats opposed the bill, citing a loophole that could allow additional funds for immigration raids beyond the USD 70bln already enacted.
• BoJ - BoJ officials are open to raising interest rates faster than the consensus expectation of roughly once every six months, as JPY weakness adds upside inflation risks, according to Bloomberg. Officials say there is no preset course for rate rises; they also stressed the importance of scrutinising upside inflation risks, with underlying inflation approaching the 2% target. The central bank is widely expected to hold at its 31st July confab, with most seeing the next hike in December, following June’s hike to 1%.