Daily US Equity Opening News - US adds BABA, BIDU, others to 1260H list; FDX raises dividend; GSK to acquire NUVL for USD 10.6bln; AZN oral GLP-1 advances to Phase III; MRK & GILD discontinue Phase III lung study; OpenAI files for IPO

DAY AHEAD:

EVENTS: Apple WWDC 2026 continues (8-12 June).
DATA: In North America, weekly ADP employment change data is released (the previous weekly print was 35.75k); the US April trade balance is expected to narrow to USD -56.4bln (prev. USD -60.3bln); existing home sales for May are seen ticking up to 4.06mln (prev. 4.02mln); wholesale inventories are expected to rise 0.5% M/M (prev. 1.5%); NFIB business optimism data for May is also due (prev. 95.9); after today’s releases, the Atlanta Fed will update its GDPnow tracking estimate (previously was tracking growth of 3.0% in Q2). In Canada, April trade balance is seen widening to CAD 2.6bln (prev. CAD 1.78bln).
CENTRAL BANKS: ECB’s Lagarde speaks at informal dinner with EU Commissioner for Climate (no text expected; ECB is on its pre-policy meeting blackout).
SUPPLY: US auctions USD 58bln of 3yr notes; Germany auctions EUR 2.0bln across 2053, 2035 and 2033 maturities; the Netherlands auctions EUR 2.0-2.5bln of 2035 DSLs.
ENERGY: The EIA’s monthly STEO report is due; after the close, the API will release its weekly gauge of energy inventories.
EARNINGS: Notable corporates reporting today include: Casey’s General Stores (CASY), J.M. Smucker (SJM).

NEWS:

GEOPOLITICS:

Iran - President Trump yesterday said the US will declare “total victory” over Iran within two weeks, and reiterated that oil prices will fall once the conflict ends. Trump reportedly warned Israeli PM Netanyahu he could face Iran alone if escalation became war. Elsewhere, a top Iranian official told CNN that an imminent US-Iran deal was doubtful, citing major roadblocks over Iran’s nuclear programme and uranium enrichment.

TRADE:

US-China - The Pentagon added Alibaba (BABA), Baidu (BIDU), BYD (BYDDY), WuXi AppTec (WUXAY), CXMT, YMTC, RoboSense Technology, and Unitree to its 1260H list of companies deemed affiliated with China’s military, CNBC reports. The designations bar the Defence Department from contracting directly with listed companies from later this month, and from procuring their products through third parties from June 2027. Alibaba, Baidu, and WuXi AppTec disputed the designations and pledged to seek removal.
China Trade - China’s exports jumped over 19.4% Y/Y in May (exp. 14.3%), the fastest pace in three months, while imports soared over 27.4% (exp. 25%), leaving a trade surplus of USD 105.4bln (exp. 91.5bln), the largest since January. Shipments of computers and parts surged 66%, integrated circuit exports rose 111% (most since 2013), driven by global AI infrastructure demand. Exports to the US rose nearly 36%, the most since 2021. China’s crude imports fell to 7.8mln BPD in May, the lowest since October 2017 as the Iran war curtailed Persian Gulf supply (vs a 2025 average of 11.6mln BPD). Meanwhile, Chinese aluminium exports surged 16% Y/Y to 630,000 tons in May, as smelters maximised output to fill a global shortfall caused by the war halting supplies.
China-Japan Rare Earths - The US has asked China to resume rare-earth exports to Japan, raising the issue at a May meeting between Treasury Secretary Bessent and Chinese Vice Premier He, Nikkei reports. The topic was also discussed at the G7 finance ministers’ meeting in May, and is expected to feature at the G7 summit in France between 15-17th June. A Japanese diplomatic source added that Beijing’s pressure on Japan has not eased.

MACRO:

Taiwan - Taiwan’s 5yr government bond yields rose 32bps to 1.71%, the highest since November 2008, as seasonal liquidity tightness drained cash from the banking system and rate-rise expectations grew, Bloomberg said. Outstanding negotiable certificates of deposit fell to their lowest level since 2014. Taiwan’s central bank is due to announce its policy decision on 18th June, with many analysts expecting a rate rise in September, though an earlier move is possible if the Fed adopts a more hawkish stance, the report adds.
India - The RBI will offer state-run firms a concessional FX swap facility at a fixed 1.5% annual rate for overseas borrowings with average maturities of three years or more, a level analysts say is roughly half the prevailing 2.5-3.0% forward premium, Bloomberg reports. The facility, available for new borrowings raised through 31st December 2026 and open until 15th January 2027, allows banks acting as FX intermediaries to sell dollars to the RBI in USD 1mln multiples with an agreement to buy them back at maturity. The move is intended to make foreign borrowing more attractive, support capital inflows and ease pressure on the INR currency.
Australia - Australia’s Westpac Consumer Sentiment Index fell in June, returning to among its weakest readings in the survey’s 50yr history, as cost-of-living pressures, rising interest rates and the Iran war energy shock weighed on households. House price expectations also fell below its long-run average for the first time in nearly three years. Separately, NAB’s business confidence index improved to -14 in May (from -23), though profitability remains the weakest sub-component, while capacity utilisation fell below 82%.
Indonesia - Bank Indonesia delivered a surprise 25bps rate rise, lifting the benchmark rates to 5.50%, the overnight deposit facility rate to 4.50%, and the lending facility rate to 6.25%, in an effort to stabilise the rupiah amid Middle East-driven global volatility. The currency strengthened following the announcement, though analysts cautioned that rate rises alone may not address broader concerns over fiscal sustainability, governance, growth, and foreign capital outflows.

INDEX:

S&P Midcap 400 - Sirius XM (SIRI) will replace Masimo (MASI) in the S&P Midcap 400 prior to the open on 11th June, following Danaher (DHR) acquiring Masimo in a deal expected to close imminently.

TECH:

Nvidia (NVDA) - Nvidia CEO Jensen Huang declined an invitation from Senator Warren to testify at a Senate Banking Committee hearing on AI development, export controls, and Nvidia’s China business, NBC reports. Warren criticised the decision, noting Huang had attended a Mar-a-Lago dinner and met President Xi in Beijing. Huang offered instead to host committee members at Nvidia’s Santa Clara headquarters, and said American AI leadership “cannot be taken for granted.”
ASML (ASML) - CEO Christophe Fouquet warned against EU plans to intervene directly in semiconductor supply chains, arguing Europe first needs to build competitive domestic companies, FT reports. Around 1% of ASML’s sales are in Europe versus roughly 80% in Asia. Fouquet cited lengthy permitting procedures, access to capital, and AI regulation as obstacles to growth, and said factory construction in Europe takes around four years due to planning constraints. ASML plans to increase output of its newest EUV machines by 50% this year and is seeking further investment opportunities in European technology beyond its existing stakes in Mistral and Zeiss (CZMWY).
Apple (AAPL) - Apple’s WWDC 2026 keynote featured a redesigned Siri, overhauled operating system foundations for improved speed and search, and expanded AI capabilities aimed at everyday consumers. The Mac is receiving productivity enhancements via Visual Intelligence, and Apple is preparing its software platform to support future AI devices and foldable iPhones. Apple said it cannot currently launch its redesigned Siri AI on iPhones, Apple Watches, or iPads in the EU due to a standoff with regulators over the Digital Markets Act; it proposed an EU-specific solution that would limit the data virtual assistants could access to ensure DMA compliance while protecting user privacy, but said regulators have refused to engage. Apple shares fell just shy of 2% on Monday after the keynote.
OpenAI - OpenAI confidentially filed for a US IPO, targeting a valuation of up to USD 1tln, with a potential debut as early as September, Reuters reports. OpenAI is generating around USD 2bln in monthly revenue, but does not expect to be profitable until 2030.
Anthropic - Unverified social chatter says Anthropic may release its first Claude 5-class model, codenamed Mythos, as Claude Fable on 9th June. The model would move Mythos technology from Project Glasswing gates into broader reach, with added safety layers.
Applied Digital (APLD) - Applied Digital signed a 15yr take-or-pay lease with a US investment-grade hyperscaler at its Delta Forge 2 AI campus, covering 210 megawatts of computing capacity and expected to generate USD 5.2bln in revenue over the period, or USD 12.7bln if all renewal options are exercised, Reuters reports. The deal is the third long-term lease with the same hyperscaler and brings Applied Digital’s total contracted base-term lease revenue to approximately USD 36bln. Initial operations at Delta Forge 2 are expected to begin in Q1 2028.
Databricks - Databricks is in talks to raise a new funding round that could value the company at USD 165-175bln, up from its previous USD 134bln valuation, The Information reports. The round could launch within the next month, though final terms have not been set. The company has repeatedly delayed a public listing in favour of successive private funding rounds.

COMMUNICATIONS:

Paramount Skydance (PSKY) - Paramount Skydance has submitted concessions to the California Attorney General in an attempt to head off a state antitrust lawsuit over its USD 110bln acquisition of Warner Bros. Discovery (WBD), Bloomberg reports; the specific concessions were not disclosed. It comes as California leads a multi-state investigation into the deal, with officials examining the merger’s impact on bargaining power over film and television producers. Paramount has also indicated willingness to divest some children’s TV assets to address EU regulatory concerns.
Alphabet (GOOG), Hitachi (HTHIY) - Hitachi and Google Cloud expanded their strategic alliance to accelerate physical AI deployment, combining Hitachi’s Lumada digital engineering capabilities with Google Cloud’s AI. The partnership will enhance Hitachi’s HMAX platform using Gemini Enterprise to support autonomous operations for frontline workers, scale field digital engineering capabilities, and bolster customer cyber defence against AI-driven threats.
AT&T Inc. (T) - AT&T affirmed Q2 free cash flow view between USD 4.0-4.5bln, and maintained its longer-term outlook and capital allocation plans from Q1 results. Exec said it continues to expect improved Y/Y growth in wireless service revenue and consolidated adjusted EBITDA in Q2 vs Q1, continued momentum in converged offers, and Y/Y improvement in advanced home internet net adds. Also reaffirmed expectations for improved adj. EBITDA and adj. EPS growth and higher free cash flow through 2028. It plans to return more than USD 45bln to shareholders during 2026-2028 via dividends and buybacks, and expects net debt-to-adj. EBITDA to return to the 2.5x range within around three years after closing the EchoStar (SATS) transaction.
Tencent (TCEHY) - Tencent is marketing dollar and offshore yuan bonds in an offering of up to USD 4.5bln, its first dollar bond issuance since 2021, Bloomberg reports. Initial price guidance was set at around 80bps and 90bps above Treasuries for 10yr and 20yr dollar tranches respectively, with 10yr and 30yr yuan tranches guided at 2.95% and 3.55%. Dollar orders exceeded USD 3bln and yuan orders surpassed CNH 20.5bln by mid-morning, the report notes.
Meta Platforms (META) - European lawmakers and regulators are intensifying scrutiny of smart glasses over surveillance and privacy risks, with concerns that built-in cameras breach consent principles under European privacy regulations, as individuals captured by the devices have no meaningful way to object to their data being processed, Politico reports.

FINANCIALS:

ETF 351 Conversions - The Investment Company Institute has asked the US Treasury for guidance on so-called 351 conversions, a fast-growing ETF strategy that allows investors to move concentrated stock positions into ETFs without immediately triggering capital gains taxes, Bloomberg reports. Treasury officials previously discussed “shutting this down in some form or another” and considered designating certain conversions a “transaction of interest,” though no action has been taken.
BlackRock (BLK) - BlackRock is launching the iShares Space Technologies UCITS ETF for European investors, with an IPO fast-entry mechanism allowing newly listed space companies to join within 10-30 days. The launch follows increased interest in space ETFs before SpaceX’s (SPCX) expected debut, with such products attracting USD 8bln since the start of the year, Bloomberg says.
UBS Group (UBS) - Swiss lawmakers mull softening proposed capital requirements for UBS, with a new pitch requiring 70-80% CET1 backing of foreign subsidiaries, rather than the government’s proposed 100%, Reuters reports. An 80% requirement would reduce UBS’s additional capital burden to approximately USD 15bln from the government’s estimated USD 20bln, while a 50% requirement could allow UBS to operate at current capital levels. A compromise between 50% and 100% is seen as the likely outcome, Reuters said, with the final result heavily dependent on centrist lawmakers.

CONSUMER:

Amazon (AMZN) - The FCC waived Amazon’s requirement to have half of its 3,232-satellite Leo constellation in orbit by the end of July, citing a rocket shortage, Bloomberg reports. Amazon must still complete the full constellation by July 2029.
Walmart (WMT) - Diana Marshall, chief experience officer at Sam’s Club and a Walmart employee since 2005, will leave the company at the end of the month, WSJ reports. Her departure is the latest in a series of executive exits since John Furner became Walmart CEO in February, following the departures of former international CEO Kath McLay, Sam’s Club COO Tom Ward, and Walmart store operations head Cedric Clark, the Journal noted.
Casey’s General Stores (CASY) - Casey’s General Stores appointed Stanley J. Sutula III to its board. Sutula has over 35 years of experience in corporate finance and strategy, and has served as CFO of Colgate-Palmolive (CL) since 2020.
Vail Resorts (MTN) - Q3 EPS 8.81 (exp. 8.97), Q3 revenue USD 1.21bln (exp. 1.21bln). Resort reported EBITDA fell to USD 586.4mln (from USD 647.7mln Y/Y), as extremely unfavourable western US weather continued to pressure visitation and revenue, particularly at destination resorts in the Rockies. Pass sales for the upcoming North American ski season were weaker through 26th May, with units -10%, days sold -8% and sales dollars -5%, although Epic Australia Pass sales rose 26% in units and 31% in dollars. Lowered FY26 guidance; sees Resort Reported EBITDA between USD 735-755mln (prev. saw 745-775mln), total reported EBITDA between USD 739-761mln (prev. saw 747-783mln), and net income attributable to Vail Resorts between USD 128-162mln.

INDUSTRIALS:

FedEx (FDX) - FedEx raised its annualised dividend rate +5% to USD 4.88/shr, following a one-time adjustment related to the spin-off of FedEx Freight (FDXF).
Fujikura (FJIKY) - Fujikura CEO Naoki Okada said the company is on track to beat its outlook, citing sustained demand from nearly all US hyperscalers for fibre-optic cables used in AI data centres, and plans to raise prices further, Bloomberg reports.
Airbus (EADSY), Boeing (BA) - Philippine Airlines is considering an order for up to 20 widebody jets to replace its older A330 and Boeing 777 fleet, with the Boeing 787 Dreamliner, Airbus A330neo, and A350 all under consideration, Bloomberg reports.

ENERGY:

LNG Prices - Morgan Stanley sees LNG prices rising to USD 25/MMBtu in Q3 and Q4, representing more than 30% upside to the forward curve, and a level last seen in early 2023; MS says the upside will be driven by recovering Asian demand and European restocking needs, and expects prices to rise even if the Middle East conflict resolves in the near-term.
Sable Offshore (SOC), JPMorgan (JPM) - JPMorgan is in talks with investors to refinance a near USD 1bln loan for Sable Offshore Corp at a 15% coupon with 20% amortisation payments, ahead of an existing ExxonMobil (XOM) term loan expiry on 26th June, Bloomberg said. The steep terms reflect legal risk from state-level lawsuits challenging Sable’s right to operate.

MATERIALS:

Vale (VALE) - Vale CEO Pimenta said global metals demand remains robust with no war-related demand destruction, and raised its FY iron ore EBITDA outlook by USD 1.5bln, now expecting iron ore to average USD 112/ton in 2026 (vs pre-conflict estimate of USD 102). The restart of its Oman pellet complex, which has 9mln ton annual capacity, will be delayed until the conflict eases. Pimenta said Vale is focused on organic growth rather than acquisitions, with copper and nickel prioritised over a potential rare earths foray.
Aclara Resources (ARA) - Aclara Resources is in talks with the US International Development Finance Corporation for funding for Chile’s first rare-earth mine, following recent rule changes expanding DFC eligibility to higher-income countries. Chilean regulators issued final environmental approval for the project on Monday. Aclara aims to begin extracting heavy rare earths from a clay deposit in 2028, contingent on permits, funding, and customer agreements, as part of a USD 1.5bln strategy linking Latin American mines with US processing capacity.
Cuban Zinc - Trafigura has informed some Chinese smelters they will not receive zinc concentrate shipments from the Castellanos project in Cuba, replacing those cargoes with alternative feedstock sources, as US sanctions and an economic blockade tighten pressure on the country.

UTILITIES:

PG&E (PCG) - PG&E warned that parts of eight Northern California counties may face precautionary power outages later this week due to elevated wildfire risk from dry air and strong winds, with red flag warnings in effect Wednesday through Thursday and gusts forecast up to 40mph.

HEALTHCARE:

Nuvalent (NUVL), GSK (GSK) - GSK has agreed to acquire Nuvalent for USD 10.6bln (or USD 124/shr in cash), a 40% premium to the last closing price. The deal includes two late-stage ROS1 and ALK inhibitors for non-small cell lung cancer, zidesamtinib and neladalkib, both under FDA review with target decision dates of 18th September and 27th November 2026 respectively (peak sales potential estimated at USD 5-7bln by analysts at Jefferies), plus an early-stage HER2 inhibitor. The acquisition is expected to be accretive to core operating profit in 2027 and core EPS in 2029, and is expected to close in Q3 2026.
AstraZeneca (AZN) - AstraZeneca’s oral GLP-1 receptor agonist elecoglipron (75mg) achieved average body weight reduction of 10.5% at 26 weeks versus 0.6% with placebo in a trial of adults with obesity or overweight, with weight loss continuing to 11.8% at 36 weeks. Up to 88.8% of participants receiving elecoglipron achieved at least 5% weight loss. The drug will now advance to a Phase III programme.
Merck (MRK), Gilead (GILD) - Merck and Gilead discontinued the Phase 3 KEYNOTE-D46/EVOKE-03 study of Trodelvy plus Keytruda versus Keytruda monotherapy in previously untreated metastatic non-small cell lung cancer following a Data Monitoring Committee review. A numerical improvement in progression-free survival was observed but did not reach statistical significance, and overall survival benefit at the planned final analysis is considered unlikely.
Perrigo (PRGO) - Perrigo appointed board member Albert Manzone as interim President and CEO, effective immediately, following the resignation of Patrick Lockwood-Taylor after the board determined certain personal conduct was inconsistent with the company’s Code of Conduct. Perrigo backs its FY26 adj. EPS view between 2.00-2.30 (exp. 2.11) and FY26 revenue growth between -5.5% and -1.5% (exp. 4.06bln); it also maintained FY26 core adj. EPS view between 2.25-2.55, and core net sales growth between -3.0% and 1.0%.