Daily US Equity Opening News - US takes control of Venezuela oil reserves; OpenAI plans to end SPCX Cursor model contract; OKE acquires Brazos assets for USD 4.425bln; AON nears USD 17bln USI Insurance acquisition; EADSY explores sale of US space unit

DAY AHEAD:

• EVENTS: The G20 finance talks start on today, ahead of the leaders’ summit scheduled for 14-15th December. President Trump will make an announcement on healthcare at 15:00EDT/20:00BST. UK markets are closed for the Summer Bank Holiday.
• DATA: In Europe, Germany August CPI prelim is expected to see the headline at 3.0% Y/Y (prev. 2.8%), and HICP at 3.0% Y/Y (prev. 2.8%), with regional state readings releasing through the morning. In North America, the Dallas Fed manufacturing index is due (prev. 1.3).
• CENTRAL BANKS: Riksbank’s Jansson speaks on the economic situation and the most recent rate decision.
• SUPPLY: EU auctions EUR 7bln of 2031, 2036 and 2040 debt.
• WEEK AHEAD: This week’s highlights include: policy announcements from the RBNZ and BoC; US jobs data, US ISM Manufacturing and Services surveys; Eurozone prelim CPI. Notable earnings releases due this week include: AVGO, DELL, PANW.

GEOPOLITICS:

• US-Iran - The US and Iran exchanged strikes for the first time in about a month; US forces hit Iranian rocket launchers allegedly preparing to deploy mines into the Strait of Hormuz, while Iran responded with missiles toward Jordan. US Central Command said IRGC claims of US aggression in the Strait of Hormuz were false. It said US forces carried out limited, precise action against IRGC minelaying forces which posed an imminent threat, aiming to protect civilian mariners, commercial shipping and the free flow of global commerce. CENTCOM added that it remains prepared to protect commercial shipping through the waterway.
• US-Iran - Senior US military leaders warned Defence Secretary Hegseth that prolonged large-scale operations against Iran are unsustainable, and risk weakening readiness elsewhere, Washington Post reports. The US Navy said current support levels cannot be sustained indefinitely; European, Pacific and Southern Command leaders have also formally opposed some extensions, while Army and Air Force leaders cited significant risks.
• China - China will begin security checks of military supply chains as part of efforts to strengthen defence-industry self-reliance, Bloomberg reports. The Central Military Commission and State Council departments will survey military hardware, supplies and specialised production equipment under the revised National Defence Mobilization Law passed on Friday.
• EU-Russia - The EU plans to unveil one of its largest Russia sanctions packages in response to hybrid threats, according to Politico; a draft list targets about 1,600 individuals and entities, and is expected to be finalised by the October EU leaders’ meeting.

TRADE:

• G20, US-China - US Treasury Secretary Bessent plans to urge G20 members to reassess trade terms with China, Reuters reports. He said China’s USD 1.2tln trade surplus is unsustainable, and countries should press Beijing to strengthen domestic demand.
• G20 - German Finance Minister Klingbeil plans to urge G20 counterparts to reduce economic uncertainty caused by tariff disputes and the wars in Iran and Ukraine; he said these conflicts damage global growth and will seek closer cooperation with countries including India, Canada and the UK that support open, rules-based trade.
• Iceland-EU - Iceland will not resume EU accession talks after 52.8% of voters rejected reopening negotiations. Opponents cited concerns over sovereignty and control of fisheries and agriculture, while supporters highlighted trade and cost benefits. PM Frostadottir said the government would honour the referendum result.
• US-Canada - President Trump posted a series of statements urging Canadian companies doing business with the US to relocate immediately, promising no tariffs for those that move, and claiming the US loses more than USD 60bln annually in trade with Canada.
• US-Canada - Ontario Premier Ford ridiculed Trump’s order renaming Lake Ontario to Lake America but expressed optimism that the two countries would ultimately resolve their trade differences. Alphabet’s (GOOG) Google Maps relabelled Lake Ontario as “Lake America” for US users after an official US geographic naming change. Canadian users will still see “Lake Ontario,” while other countries will see both names. MapQuest will retain Lake Ontario, and Apple (AAPL) Maps currently continues using that name for US users.

MACRO:

• Japan - USDJPY’s move beyond 160 has increased expectations of possible Japanese intervention, Bloomberg reports; strategists cited 161 and 162-163 as key levels to watch. Follows Japan spending a record USD 96.4bln supporting the currency over the past month; markets price a 90% probability of a BoJ September rate hike. US Treasury Secretary Bessent said he expects the BoJ “to do the right thing” on monetary policy. Analysts also say that Japan’s GPIF pension fund may be justified in raising its domestic bond allocation above 25%, as domestic yields approach 3%; analysts cited by BBG said between an allocation of 30-35% could be seen. The fund manages about JPY 318tln total, and purchased around JPY 5.7tln of Japanese debt in Q2.
• China - China’s official manufacturing PMI rose to 49.8 in August (exp. 49.6; prev. 49.2), remaining in contraction, but with new orders and production returning to expansion. The non-manufacturing PMI was unchanged at 49.0 (prev. 49.0), at the weakest level since December 2022, reflecting continued sluggishness in domestic consumption. The Analysts said that the divergence underscores China’s ongoing reliance on exports and manufacturing to drive growth.

US MIDTERMS:

• Trump Campaigns - President Trump said he plans to campaign for Republican lawmakers in the midterms with the same intensity as in 2024. Trump acknowledged governing parties often lose ground in midterms, but said Republicans would perform well. He also dismissed concerns over inflation and his six-month Iran war.
• Broadcasters - President Trump said he would report NBC anchor Kristen Welker to the FCC for “rebuke or punishment” over her characterisation of his midterm endorsement record, Washington Post reports. NBC defended Welker. Trump has previously urged FCC action against broadcasters, while experts cited First Amendment limits on punishing stations over viewpoints.

TECH:

• Apple (AAPL) - John Ternus is set to officially becomes Apple CEO on 1st September, succeeding Tim Cook, who will remain executive Chairman. Ternus is seen prioritising AI, new hardware and design, while relying on senior executives for operations. Ternus will lead as Apple prepares a foldable iPhone and expanded Siri AI, while facing talent losses to OpenAI and pressure in its services and supply chains.
• OpenAI, SpaceX (SPCX) - OpenAI notified SpaceX that it intends to wind down its contract providing OpenAI models to Cursor, proposing a shutoff on 12th November. OpenAI said it was giving the maximum contractual notice, citing concerns that SpaceX may not use its technology within its terms of service, based on prior experience with Elon Musk’s companies.
• SoftBank (SFTBY), OpenAI - OpenAI was issued warrants valued at about USD 5.5bln in SoftBank-backed SB Energy as an incentive to become a data centre tenant ahead of SB Energy’s IPO, WSJ reports. OpenAI had previously invested in SB Energy.
• SK Hynix (SKHY) - SK Hynix is considering a JV to build a memory chip plant in Japan; options include co-investment, a JV or a small Japanese acquisition. SK Hynix is also expanding in South Korea and Indiana, and exploring deeper cooperation with Kioxia Holdings (KXIAY) and other Japanese customers and suppliers.
• CXMT (688825 CH) - China’s CXMT has begun mass production of LPDDR6 memory and will supply the first batch to Xiaomi’s upcoming 18 Fold flagship, Digitimes reports. CXMT said it marks the first commercial deployment of LPDDR6 worldwide.

ENERGY:

• Venezuela Oil - President Trump announced US majority control of more than 65bln barrels of Venezuela’s proven oil reserves via a private sector partnership. The deal aims to expand US access to Venezuelan crude and attract nearly USD 100bln in investment. Venezuela’s Delcy Rodriguez said development of 17 fields could generate USD 209bln in tax revenue. Trump said the Venezuelan crude under US control will be used to refill the Strategic Petroleum Reserve, which currently holds 289.7mln barrels (about 40% of capacity).
• Russian Diesel - Russia extended its diesel-export ban for producers through 30th September to support domestic fuel supplies amid intensified Ukrainian refinery attacks. The move adds pressure to already-tight global diesel supplies. Goldman Sachs has more than doubled its 2027 diesel refining margin forecasts, citing refinery disruptions from wars in the Middle East and Russia-Ukraine conflict. GS now expects margins over Brent of USD 63/bbl the US, and USD 49/bbl in the EU (prev. saw USD 27 and USD 19, respectively).
• Oil Refiners - President Trump is set to meet representatives of at least ten oil refining and fuel distribution companies on 1st September to discuss high gasoline prices, domestic refining capacity and potential policy changes. Invited companies include Marathon Petroleum (MPC), Chevron (CVX), Valero (VLO), PBF Energy (PBF) and Delek US Holdings (DK).
• ONEOK (OKE), Apollo (APO) - ONEOK agreed to acquire Brazos Midstream’s Permian Midland Basin natural gas gathering and processing assets for USD 4.425bln. The acquisition will be funded through a USD 9bln non-voting minority equity investment from Apollo-managed funds and affiliates, with ONEOK planning to use USD 5bln of the proceeds to reduce existing debt.

MATERIALS:

• Glencore (GLNCY) - Glencore took a provision of about USD 480mln covering its net exposure to iron ore trader Radiant World, Bloomberg reports. Radiant World owes Glencore USD 951mln, while Glencore owes Radiant World USD 471mln. Glencore has now ended business with Radiant World amid concerns over allegedly falsified documents. Radiant World denies any wrongdoing.

FINANCIALS:

• Aon (AON), KKR & Co. (KKR) - Aon is nearing a roughly USD 17bln deal to acquire USI Insurance from KKR, according to the WSJ. The acquisition would expand Aon’s capabilities serving midsize businesses and could increase EPS from 2028 onwards.
• Allianz (ALIZY) - Allianz is considering a roughly GBP 5bln takeover of UK roadside-assistance group AA, Sky News reports. The AA’s private-equity owners TowerBrook Capital Partners, Warburg Pincus and Stonepeak are pursuing a sale or possible 2027 London listing. UBS Group (UBS) - UBS could face softer Swiss capital requirements, with an Upper House committee leaning towards requiring 50% CET1 backing for foreign units rather than the government’s proposed 100%. The Swiss government is expected to decide on the rules today, and send a revised banking bill to the Upper House.
• German Regional Banks - More than half a dozen German cooperative banks have sought peer support in recent years after overextending into riskier loans and investments, with Volksbank Brawo the latest example following the removal of its CEO after a decade-long expansion, Bloomberg reports. At least EUR 1bln in support measures have been extended across the sector in recent years, with bad loan transfers to the sector’s BAG bad bank surpassing EUR 1.2bln last year, the highest in over two decades. DZ Bank estimates its contributions to the sector’s protection scheme will double to EUR 117mln this year.

CONSUMER STAPLES:

• Walmart (WMT) - The DoJ and DEA said Walmart will pay USD 50mln to settle allegations that its pharmacies illegally filled thousands of invalid opioid and controlled-substance prescriptions. Walmart also agreed to establish reporting hotlines, monitor pharmacy dispensing patterns and create a process to evaluate prescribers suspected of illegal prescribing.

CONSUMER CYCLICALS:

• Mercedes-Benz (MBG) - Mercedes has launched a EUR 1bln buyback.

INDUSTRIALS:

• SpaceX (SPCX) - NASA and SpaceX postponed the Crew-13 mission to the International Space Station after detecting an oxidiser leak in the Dragon spacecraft’s propulsion system. Additional testing is underway and no new launch date has been announced.
• Airbus (EADSY) - Airbus is exploring a sale of its US space business as it shifts satellite production towards Europe, FT reports. The unit includes a Florida factory and Arrow small satellites. InPost (INPOY) - Q2 revenue of PLN 4.18bln (exp. 4.12bln; prev. 3.53bln) and adj. EBITDA of PLN 1.04bln (exp. 1.01bln; prev. 1.0bln); it cut its FY adj. EBITDA guidance, now sees a mid-single digit decline. InPost is currently subject to a EUR 7.8bln takeover bid led by FedEx (FDX) and Advent International.
• GE Aerospace (GE) - General Electric was awarded a maximum USD 319.55mln Defence Logistics Agency contract modification for J85 engine supplies.
• ** BAE Systems (BAESY)** - BAE Systems was awarded a USD 167.5mln US Navy contract modification for MK 41 Vertical Launching System Mechanical Design Agent support. Options could raise the action’s cumulative value to USD 343.3mln.

HEALTHCARE:

• McKesson (MCK) - McKesson disclosed unauthorised access to third-party applications and data theft were discovered on 25th August. ShinyHunters claims vishing compromised employees’ Okta accounts, enabling access to Salesforce (CRM) and Snowflake (SNOW) and theft of about 1TB, including 284mln patient-related records. The group demanded USD 55.24mln. McKesson says its investigation remains ongoing.
• Bristol Myers Squibb (BMY) - Bristol Myers Squibb presented EXPLORER-LTE cohort results from the MAVA-LTE study showing Camzyos effects were sustained for up to five years with continuous treatment. Additional ESC Congress 2026 presentations from the COLLIGO-HCM retrospective real-world study provided further evidence supporting Camzyos and treatment decisions for people living with the condition.
• Bayer (BAYRY) - Bayer presented first detailed Phase III REVEAL results evaluating investigational PET radiotracer iodine 124 evuzamitide for diagnosing cardiac amyloidosis. The Brigham and Women’s Hospital-led study met primary endpoints for sensitivity and specificity based on visual scan interpretation. Safety and secondary endpoint data in AL and ATTR amyloidosis were also presented; the compound remains unapproved.
• EssilorLuxottica (ESLOY) - The rift over the late Leonardo Del Vecchio’s EUR 40bln+ estate deepened after son Leonardo Maria Del Vecchio resigned from his roles at EssilorLuxottica, criticising a company culture he said had grown more distant and where managers were sidelined when things became “uncomfortable.” A EUR 10bln plan to buy out two siblings and resolve the deadlock collapsed earlier this year over financing and governance disputes, with heirs now pursuing a Luxembourg court process to establish a valuation for their holdings.