Daily US Equity Opening News - ZS tumbles on "disappointing" guidance; DY earnings & guidance beat; FDX upgraded

DAY AHEAD:

US INDEX FUTURES: ES +0.2%, NQ +0.6%, YM +0.2%, RUT +0.5%
BROKER MOVES: FDX upgraded at JPM; DG downgraded at Deutsche Bank. For the full list, click here.
MAJOR MORNING MOVES RECAP: SNDK, ZS, SMTC, PODD, VRRM, HIMS, DY, BBWI, FDX, DG. For the full list, click here.
EVENTS: President Trump cancelled a planned Cabinet meeting at Camp David, citing possible bad weather; the session is to be held at the White House instead, and is expected to include economic policy and foreign policy updates.
DATA: In North America, US ADP employment change (prev. 42.25K); Richmond Fed Manufacturing Index (prev. 3); weekly MBA mortgage applications (prev. -2.3%); Dallas Fed Services Index (prev. -9.9). Canada reports preliminary wholesale sales (prev. 1.9% M/M).
CENTRAL BANKS: Fed’s Cook (voter, neutral) speaks on AI, the economy and the financial system.
SUPPLY: US sells USD 70bln of 5yr notes and USD 28bln of 2-year FRNs.
ENERGY: Weekly API private energy inventory data is due after the US close.
EARNINGS: Notable US earnings releases today include: Marvell Technology (MRVL), Salesforce (CRM), Synopsys (SNPS), Snowflake (SNOW), Agilent Technologies (A), HP Inc. (HPQ).

NEWS:

INDEX

Peloton (PTON) to replace Enviri (NVR) in S&P 600 at open on 5/27.

TECH

Nvidia (NVDA), Super Micro Computer (SMCI) - Taiwan prosecutors suspect three individuals smuggled at least one shipment of Nvidia AI chips to China via Japan and Hong Kong, using falsified export documents for Super Micro servers, Bloomberg reports. Prosecutors detained a trio last week, and seized around 50 servers, though at least one earlier shipment had already cleared Taiwan customs. The case is believed to be the first known instance of prosecutors targeting an AI-chip smuggling route through Japan.
Nvidia (NVDA) - CEO Jensen Huang said the company plans to increase annual spending in Taiwan to USD 150bln calling the region the “epicentre” of the AI revolution and a critical global technology manufacturing hub. Huang said Nvidia’s spending in Taiwan has surged from roughly USD 10-15bln annually five years ago to around USD 100bln currently.
Samsung Electronics (005930 KS/SSNLF) - Samsung’s largest union ratified a wage deal with approximately 74% of members voting in favour, averting a strike at the world’s largest memory chipmaker. Workers will receive an average bonus of around KRW 513mln based on 2026 operating profit estimates, against an average 2025 employee wage of KRW 158mln. The deal exposed sharp internal divisions, with over 80% of chip workers in favour but only around 21% of non-chip staff approving, reflecting a roughly 100-fold gap in bonus levels between the two groups. Samsung shares rose overnight on the news.
SK Hynix (HXSCL), Micron (MU) - SK Hynix and Micron Technology both crossed USD 1tln in market capitalisation for the first time. SK Hynix rose 9.3% in Seoul, bringing its 12-month gain to over 1,000%, becoming the third Asian company to join the USD 1tln club after Samsung earlier this month. Micron surged 19% on Tuesday, its largest single-day gain since 2011, after a UBS analyst said the stock could double over the next year. Analysts expect memory shortages to persist through 2027.
GlobalFoundries (GFS) - Mubadala Investment sold 22mln GlobalFoundries shares in a block trade at USD 86.30-86.80 each, raising USD 1.91bln, Bloomberg reports. The sale reduces Abu Dhabi’s sovereign wealth fund’s stake to 400mln shares, or 73% of the chipmaker, and is subject to a 60-day lock-up on further disposals.
Xiaomi (XIACY) - Q1 net profit CNY 4.72bln (exp. 5.64bln), Q1 revenue USD 14.59bln (exp. 14.65bln). Revenue fell 11% Y/Y, while overall gross margin declined to 22.0% (from 22.8%); smartphone revenue fell 12.5% Y/Y to CNY 44.3bln as lower shipments offset higher average selling prices, with smartphone gross margin narrowing to 10.1% (from 12.4%) due to higher component costs and competition. IoT and lifestyle products revenue fell 24% Y/Y to CNY 24.7bln as mainland China demand weakened following reduced government subsidies, while EV revenue rose 5.1% Y/Y to CNY 19.0bln on higher deliveries. CEO Lei Jun previously targeted 550,000 vehicle deliveries this year, around +34% Y/Y. Xiaomi also announced an on-market buyback of up to HKD 20bln over the next 12 months.
Sandisk (SNDK), Micron (MU) - Sandisk upgraded at Barclays to 'Overweight' from 'Equal Weight' with a USD 2,300 PT (prev. 1,200). The firm said that it sees Memory and Storage as the most attractive vertical below accelerators and also believes that continued upside to pricing with supply-demand imbalance will persist through 2027. Barclays upped its MU PT to USD 1,175 (prev. 675). Barclays notes that the biggest opportunity for pricing leverage in hard disk drive will come towards the end of the year as new contract pricing and products come into play and as mix starts shifting towards 40TB drives.
Zscaler (ZS) Q3 2026 (USD): Adj. EPS 1.08 (exp. 1.01), Revenue 850.5mln (exp. 835.66mln); Q3 ARR +25% Y/Y, or +21% excluding Red Canary, while adj. operating margin reached a record 23%; total operating expenses grew ~25% Y/Y to 687.5mln . Sees Q4 adj. EPS between 1.08-1.09 (exp. 1.03), revenue between 875-878mln (exp. 878.66mln); raised its FY26 view, sees FY26 adj. EPS between 4.10-4.11 (exp. 4.02; prev. saw 3.99-4.02), revenue between 3.3295-3.3325bln (exp. 3.32bln; prev. saw 3.31-3.32bln), ARR between 3.74-3.749bln, free cash flow margin about 22.8-23.3% (down from 26.5-27% due to higher capex); sees FY27 total ARR and revenue growth between 16-17% (revenue exp. 3.97bln).
Semtech Corporation (SMTC) Q1 2026 (USD): EPS 0.51 (exp. 0.45), Revenue 291.0mln (exp. 283.5mln). Sees Q2 EPS between 59c-63c (exp. 0.51), revenue between 323-333mln (exp. 300.7mln), adjusted EBITDA between 76.9-81.5mln and gross margin between 53.5%-54.5%. CEO Hong Hou said Semtech had an “exceptional” start to FY27, with record quarterly results and expanding design wins across its data centre and LoRa businesses, adding that FiberEdge and CopperEdge 1.6T revenues are expected to support accelerating data centre growth through the year.
Box (BOX) Q1 2026 (USD): Adj. EPS 0.37 (exp. 0.36), Revenue 306mln (exp. 304.09mln). Sees Q2 adj. EPS roughly 0.39 (exp. 0.39), including an expected FX headwind of about 0.03, and sees Q2 revenue roughly 319mln (exp. 316.83mln). Raised FY27 view, sees FY27 adj. EPS roughly 1.56 (exp. 1.57; prev. saw 1.55) and revenue roughly USD 1.28bln (exp. 1.27bln; prev. saw 1.275bln).
Verra Mobility (VRRM), Avis Budget Group (CAR) - Verra Mobility received a contract termination notice from Avis, effective September 2026, and said it was surprised and disappointed given the length of the partnership and ongoing extension negotiations. The company is cutting costs, reallocating resources to other customers, and reviewing its contractual and intellectual property rights in connection with the termination. Lowers FY26 adj. EPS view to between 1.19-1.25 (exp. 1.36; prev. saw 1.32-1.38), FY26 revenue cut to between USD 985-995mln (exp. 1.03bln; prev. saw 1.020-1.030bln); also lowered its FY26 adj. EBITDA view to between USD 380-385mln (prev. saw 405-415mln) and free cash flow to between USD 140-150mln (prev. saw 150-160mln).
BILL Holdings (BILL) - BILL will make executive and organisational changes in Q4 FY26; Michael Cieri was promoted to Chief Product Officer, Eric Chan was appointed Chief Technology Officer, and John Rettig will become Chief Strategy and Transformation Officer. Sarah Acton, Ken Moss and Mary Kay Bowman will depart, while BILL expects to name a Chief Revenue Officer in the coming weeks.
Iren (IREN) - Iren agreed to buy about USD 1.6bln of Nvidia Blackwell air-cooled systems from Dell to support its previously announced five-year USD 3.4bln cloud AI services contract with Dell. The systems will be deployed at IREN’s Texas data center campus and are expected to come online by early 2027, with the company saying the expansion would raise annualized run-rate revenue to about USD 4.4bln from USD 3.7bln.
TSMC (TSM) - CEO has told employees that they will see a bump of over 30% in profit-sharing payouts this year on average.
ByteDance - Weighs 2026 Capex of as much as USD 70bln in an AI push.

COMMUNICATIONS

Alphabet (GOOG), Apple (AAPL) - Google and Apple warned Canadian lawmakers that a proposed surveillance bill would force them to insert backdoors into encrypted products, with Apple’s senior director of user privacy saying the company would never comply with such a requirement, WSJ reports. Google said the bill could allow the government to secretly compel product redesigns without judicial oversight. Signal said it would withdraw from Canada rather than comply. US House Judiciary and Foreign Affairs committee chairmen also wrote to Canada’s Public Safety Minister, warning that the bill threatened US national security and economic interests.
AT&T (T) - Remains on track to achieve its 2026 and multi-year financialguidance. AT&T maintains the long-term outlook and capital allocation plans provided with its first-quarter 2026 results. This includes the company's outlook for improved growth in adjusted EBITDA and adjusted EPS and higher free cash flow through 2028, its plans to return USD 45bln+ to shareholders during 2026-2028 through dividends and share repurchases, and an expectation that its net debt-to-adjusted EBITDA ratio will return to a level consistent with its target in the 2.5x range within approximately three years following the closing of its transaction with EchoStar.
Universal Music Group (UMG NA) - Bollore Group CEO Cyrille Bollore said he is urging Universal Music Group management to reject Bill Ackman’s takeover proposal, arguing the offer undervalues the company, relies on UMG’s own cash rather than Ackman’s capital, and conflicts with UMG’s long-term strategy. Bollore added he considers the proposal “as good as already rejected.”
Paramount Skydance (PSKY), Warner Bros (WBD) - Paramount's proposed USD 110bln acquisition of Warner Bros. Discovery is reportedly moving closer to likely US antitrust approval after recent Justice Department discussions. According to Semafor, DOJ staff attorneys appeared receptive to Paramount’s arguments that the deal would not harm competing studios or creative talent, including commitments tied to theatrical film releases.

CONSUMER DISCRETIONARY

Amazon (AMZN) - Said it invested more than GBP 15bln in the UK in 2025, including new operational sites, expanded studio facilities, office space, and the launch of a drone delivery trial. The company said UK revenue exceeded GBP 30bln in 2025, while total taxes borne rose more than 20% year-over-year to over GBP 1.3bln.
Prediction Markets - President Trump backed the CFTC’s exclusive authority over prediction markets, saying it was critically important. Trading has surged as his administration embraced the industry, while states including Nevada, New Jersey and Connecticut have challenged Kalshi and Crypto.com. The CFTC has backed companies in court and sued some states.
European Auto Sales - European Automobile Manufacturers’ Association said European new-vehicle registrations rose 7% to 1.15mln in April, marking the third consecutive month of growth. EV deliveries jumped 38%. Sales expanded across major markets, including Germany (where a new subsidy helped EV sales rise 41%) and in the UK. Hybrid vehicle sales also rose while petrol and diesel volumes fell, pointing to a continued structural shift towards electrification.
Tesla (TSLA) - Tesla’s European new-car registrations rose 46.5% Y/Y to 10,654 units in April; within the EU alone, sales grew over 67% to 9,169 vehicles, continuing a recovery following a slump that lasted more than a year.
Modine Manufacturing (MOD) Q4 2026 (USD): Adj. EPS 1.71 (exp. 1.55), Revenue 954.4mln (exp. 920.68mln). The CEO said its future is supported by a landmark USD 4bln long-term chiller sales agreement with a major hyperscale customer, cementing its role in data centre cooling. Sees FY27 net sales growth between 20-35%, adj. EBITDA between USD 650-680mln.
MGM Resorts (MGM) - Upgraded at JPMorgan to 'Overweight' from 'Neutral' with a USD 46 PT (prev. 41). The firm cites stable leisure demand will support improved Las Vegas Strip growth. JPMorgan's more favorable view of MGM reflects its conviction that the company's Las Vegas Strip EBITDA estimates have bottomed. The company's growth should improve in the months ahead on easier comparisons and the "resilient" US leisure traveler.
PDD (PDD) Q1 2026 (CNY): Revenue 106.23bln (exp. 108.6bln), Net income 12.5bln (prev. 14.7bln Y/Y), Operating profit 19.6bln (prev. 16.9bln Y/Y).
Capri Holdings (CPRI) Q4 2026 (USD): Adj. EPS 0.22 (exp. 0.12), Revenue 796mln (exp. 800.04mln). Sees FY27 EPS at 2.15 (exp. 1.87), FY27 revenue of about 3.525bln (exp. 3.53bln), Q1 EPS of 0.40 (exp. 0.32), and Q1 revenue of about 750mln (exp. 790.89mln).
Dick's Sporting Goods (DKS) Q1 2026 (USD): Adj. EPS 2.90 (exp. 2.91), Revenue 5.17bln (exp. 5.07bln), SSS +6%. Maintained FY26 EPS view of 13.50-14.50 (exp. 14.32) and FY26 revenue view of 22.1-22.4bln (exp. 22.27bln).
Abercrombie & Fitch (ANF) Q1 2026 (USD): Adj. EPS 1.47 (exp. 1.27), Revenue 1.11bln (exp. 1.12bln). Sees Q2 EPS at 1.80-2.00 (exp. 2.52) and Q2 revenue up 2-4%. Reiterated FY26 EPS view of 10.20-11.00 (exp. 10.71) and FY26 revenue view of up 3-5%.
Bath & Body Works (BBWI) Q1 2026 (USD): Adj. EPS 0.32 (exp. 0.29), Revenue 1.4bln (exp. 1.36bln); sees Q2 EPS at 0.20-0.25 (exp. 0.20) and backed FY26 EPS view of 2.40-2.65 (exp. 2.63). CFO Eva Boratto to step down, effective June 12th; the company has initiated a comprehensive search process, supported by a leading executive search firm, to identify its next CFO.
Lululemon (LULU) - Comfirmed it has reached a settlement with founder Chip Wilson, who has put forward three board nominees, Bloomberg reports.

MATERIALS

Global Aluminium - A global aluminium rally driven by Middle East supply disruptions has pushed LME prices to four-year highs and widened the premium over Shanghai futures to its steepest since March 2022, potentially spurring record Chinese exports, Bloomberg reports. Chinese aluminium exports rose 15% in April to 598,000 tonnes, and could climb to more than 680,000 tonnes in the coming months, according to analysts cited in the report.
DuPont (DD) - DuPont approved a 1-for-3 reverse stock split, effective 24th June, after stockholder approval on 21st May. DD will trade split-adjusted on NYSE under its existing ticker with new CUSIP 26614N 201. DuPont backed FY26 adj. EPS at USD 2.35-2.40 (or USD 7.02-7.16 post-split) and Q2 at USD 0.59 (or USD 1.75 post-split).
H.B. Fuller (FUL) - H.B. Fuller confirmed it is in discussions with Advanced Medical Solutions Group regarding a potential acquisition, though cautioned there is no certainty a binding offer will be made. The disclosure was required under the UK Takeover Code. The company said it has executed 13 acquisitions since early 2023 and reduced its net debt to adj. EBITDA ratio to 3.1x at the end of Q1 (vs 3.5x a year earlier), targeting adjusted EBITDA margins above 20% and low-teens ROIC.
SQM (SQM) Q1 2026 (USD): EPS 1.28 (exp. 1.56), Revenue 1.76bln (exp. 1.70bln). Lithium sales volumes were approximately 69,000 metric tons of LCE, with operations running at full capacity to meet strong customer demand, while SQM said global lithium demand could exceed 1.9mln metric tons of LCE this year amid a tight supply-demand balance. The CEO noted Q1 marked the first full quarter operating alongside CODELCO through Nova Andino Litio, with the partnership operating at full capacity, delivering strong financial results and continuing to expand production capacity. Nova Andino Litio generated more than USD 530mln in contributions to the Chilean state during the quarter, including payments to CORFO, local governments and taxes. SQM lifted its FY26 lithium sales volume outlook, sees FY26 sales volume growth of 15% (prev. saw 10%).
Codelco, SQM (SQM) - Codelco and SQM have budgeted USD 3bln for their Novandino Litio joint venture in Chile’s Atacama Desert, following completion of design work on a project to introduce direct lithium extraction from brine, Bloomberg reports. The venture plans to submit an environmental impact study to regulators in June.
Akzo Nobel (AKZOY), Sherwin-Williams (SHW), Nippon Paint Holdings (NPPHY) - AkzoNobel rejected a EUR 12.49bln joint takeover proposal from Nippon Paint Holdings and Sherwin-Williams, which offered EUR 73/shr in cash (a 39% premium to Tuesday’s closing price), with plans to split AkzoNobel’s assets between the two upon completion. The Dutch paint maker’s boards unanimously reaffirmed their recommendation of the proposed all-stock merger with Axalta Coating Systems (AXTA), concluding the rival bid was not superior.

ENERGY

BP Plc (BP) - Former BP chairman Albert Manifold said he was fired without warning or explanation and will challenge BP’s account. BP ousted Manifold after eight months, citing serious concerns over governance standards, oversight and conduct. People close to BP said complaints involved aggressive behaviour towards employees, mishandling sensitive information and seeking to bypass the board.
Scorpio Tankers (STNG) - Agreed to sell four LR2 product tankers for USD 285.8mln in aggregate and signed a letter of intent to acquire two scrubber-fitted MR newbuilding tankers for USD 46.25mln each, with deliveries expected in 2030. The company also said it plans to repay USD 367.8mln of secured debt due in 2028 and cancel two undrawn revolving credit facilities in Q2.

INDUSTRIALS

Airbus (EADSY) - China has been delaying final approvals for Airbus jet deliveries to signal impatience with the pace of European certification of Comac aircraft, Bloomberg reports citing sources. The Civil Aviation Administration of China has held up approvals for several months, contributing to Airbus delivering only 16 aircraft to Chinese airlines in the first five months of 2026, vs 47 in the same period last year. Airbus CEO has predicted that deliveries would be back on track by end of June.
SpaceX (SPCX) - FTSE Russell adopted a rule change allowing large-cap IPOs with investable market capitalisations above the Russell Top 500 threshold to qualify for fast-track index inclusion after their fifth trading day, replacing the previous quarterly review process. The change follows a similar move by Nasdaq, which shortened its inclusion waiting period to 15 days. The revisions come ahead of SpaceX’s targeted USD 75bln IPO, which would be a record public debut.
Firefly Aerospace (FLY) - Firefly won a USD 75mln NASA subcontract to deliver four drones to the Moon’s south pole under the MoonFall programme, targeting launch no earlier than 2028. Firefly also announced a public offering of 12mln shares, of which 4mln are being sold by the company.
Genco Shipping (GNK), Diana Shipping (DSX) - Genco accused Diana Shipping of filling its 19th May investor presentation with misleading statements and falsehoods, characterising it as part of a hostile takeover campaign aimed at acquiring Genco on the cheap.
GE Vernova (GEV) - Said it has 100 gigawatts on contract to execute on mostly through 2030 and into 2031, signalling unusually strong long-dated gas equipment demand.
RTX (RTX) - RTX’s Raytheon was awarded a USD 1.02bln US Army to procure NASAMS fire units.
Lockheed Martin (LMT) - Lockheed was awarded a USD 100.5mln US Navy order under a previously issued basic ordering agreement, covering 1,459 brake assembly heat sinks for F-35 Lightning II depot-level brake repairs.
FedEx (FDX) - Upgraded at JPMorgan to 'Overweight' from 'Neutral' with a USD 460 PT (prev. 432). JPM says the risk/reward is attractive heading into the separation of the freight business on June 1. The bank believes the structural improvements at the legacy and remaining Federal Express business are increasingly visible. The last several quarters of "solid execution" put FedEx on a "credible path" to hit its 2029 targets.
Dycom Industries (DY) Q1 2027 (USD): Adj. EPS 4.42 (exp. 2.72), Revenue 1.96bln (exp. 1.67bln); sees Q2 adj. EPS at 4.40-4.82 (exp. 4.06) and Q2 revenue of 1.94-2.01bln (exp. 1.77bln). Sees FY27 revenue at 7.38-7.65bln (exp. 7.07bln).

GEOPOLITICS

Iran - Iran’s president held calls with leaders in Oman, Qatar and Turkey focused on regional security, diplomacy and de-escalation. Tehran said indirect US-Iran contacts continue, but enriched uranium stockpiles are not under discussion, while talks with Oman cover a new Hormuz passage mechanism. Iran continues to frame control of the Strait of Hormuz as non-negotiable and warned regional states against joining any coalition against it. An IRGC official said renewed war with the US is unlikely, though forces remain prepared. Yesterday, Iran said it will only sign a peace agreement with the US if USD 24bln of frozen assets are released; Tehran demands USD 12bln when a memorandum is announced and the rest within 60 days.
Hormuz Traffic - An Adnoc LNG tanker has transited the Strait of Hormuz bound for India, marking the company’s fourth such shipment from the Persian Gulf since the conflict began. The vessel went dark around 2nd May before reappearing loaded, with satellite imagery suggesting it collected a cargo at Adnoc’s Das Island export plant.
North Korea - North Korea’s leader Kim oversaw tests of newly developed missile and artillery systems on 26th May, including a lightweight multi-purpose missile launcher, a tactical cruise missile capable of striking targets 100 kilometres away using AI-guided terminal guidance, and 240mm guided artillery rockets, KCNA reported.
Russia - European officials are growing increasingly concerned that Russia may seek to expand the conflict beyond Ukraine, with Moscow making bellicose statements towards the Baltic states, threatening Latvia over alleged drone operator hosting, and publishing addresses of companies in eight European nations involved in drone production with Ukraine, WSJ reports.

HEALTHCARE

Insulet (PODD) - Insulet initiated a voluntary medical device correction for about 7mln Omnipod 5, Omnipod DASH and Omnipod Insulin Management System pods in specific US and international lots. A manufacturing defect may cause insulin under-delivery, risking high blood glucose or diabetic ketoacidosis. Affected lots represent 8.5% of 2025 global production; 24 serious adverse events and no deaths were reported.
Apogee Therapeutics (APGE) - Reported positive 16-week Phase 2 data for zumilokibart in moderate-to-severe atopic dermatitis, with 65.9% of mid-dose patients achieving EASI-75 and the trial meeting primary and secondary endpoints with high statistical significance. Results were dented by conjunctivitis TEAEs of 10.6% in the mid-dose group, rising to 20.7% at the high dose, while the low-dose cohort showed lower EASI-75 response rates of 50.5% at Week 16. Meanwhile, secured a USD 1.3bln non-dilutive financing deal with Blackstone to support development and commercialization. Apogee’s financing is non-dilutive, but the agreement gives Blackstone low-to-mid single digit tiered royalties on worldwide zumilokibart sales for 15 years. The deal also includes up to USD 500mln in senior debt availability and milestone-based funding tied to Phase 3 enrollment, positive data, and FDA approval.
Hims & Hers Health (HIMS) - Board member David Wells bought nearly USD 1.2mln in stock.
Corcept Therapeutics (CORT) - Said it plans to resubmit its NDA for relacorilant in Cushing’s syndrome after conducting additional analyses requested by the FDA following a prior complete response letter. The company said the FDA indicated it expects to assign a new PDUFA date six months after resubmission.

UTILITIES

Naturgy Energy Group (GASNY) - CVC Capital Partners sold its entire 13.8% stake in Naturgy for EUR 3.07bln, with shares placed at EUR 28.55 apiece (a 4.6% discount to Tuesday’s close). The exit follows BlackRock’s full disposal of its Naturgy stake in March, which raised USD 3.3bln.

MACRO

Fedspeak - Fed’s Kashkari (2026 voter) said inflation risks currently outweigh labour market risks and that the “inflationary shockwave” from the Iran war could persist for months even if a deal is reached, as supply chains normalise slowly and countries replenish oil reserves. Kashkari said it was “far too soon” to predict the timing of the next rate move, and favoured neutral rather than hawkish guidance pending the outcome of US-Iran negotiations. He also described the US fiscal path as “unsustainable” over the long run.
UK Energy Cap - The UK energy price cap will rise 13% to GBP 1,862/year from 1st July, the biggest increase since 2023, as the Iran war drives up wholesale gas and power costs, Bloomberg reports. The increase is the first to fully reflect the impact of the Middle East conflict, as the previous cap was set using pre-war market data.
Japan Bond Sale - Japan’s 40yr bond auction drew a bid-to-cover ratio of 2.70 (vs prev. 2.54 and 12-month average of 2.47), as higher yields attracted buyers. The bonds yielded 3.84% (vs 3.6% at the previous auction). Supply concerns eased after PM Takaichi said the government would fund its supplementary budget without increasing bond issuance on a calendar-year basis, while FinMin Katayama said approximately USD 3.2bln from reserve funds would finance utility subsidies.
BoJ - Governor Ueda warned that oil price shocks risk becoming persistent if they alter wages, expectations, and price-setting behaviour, saying Japan is facing a “fifth oil price shock”. Speaking at an international banking conference in Tokyo, Ueda stopped short of signalling the June 16th policy outcome, though markets are pricing around a 75% chance of a 25bps hike.
RBNZ - The RBNZ held its Official Cash Rate at 2.25%, in a 3-3 split decision where the split was resolved by the vote of Governor Breman. New forecasts point to at least two 25bps rate hikes before year-end. Markets were pricing an approximately 85% chance of a July hike following the announcement. The RBNZ projects inflation will peak at 4.3% in Q3 before returning to the 2% midpoint by Q3 2027, while GDP growth for the year through March 2027 was revised down to 1.4% from a prior forecast of 2.4%.

TRADE

US Tariffs - US Customs and Border Protection said USD 20.6bln in tariff refunds is being disbursed to importers, following a Supreme Court ruling that overturned a large portion of President Trump’s tariffs, Bloomberg reports. The filing also revealed a significant error in a prior court submission, with an earlier figure of USD 35.5bln in claims being processed overstated by approximately USD 10bln. Total refunds accepted for processing stood at approximately USD 85bln as of 22nd May, against a total liability of as much as USD 166bln across more than 53mln import entries.
US-China - USTR Greer said his agency will shortly publish a Federal Register notice seeking public comment on establishing a Board of Trade with China, a formal mechanism to manage economic relations between the two countries.

CONSUMER STAPLES

Dollar General (DG) - Downgraded at Deutsche Bank to 'Hold' from 'Buy' with a USD 110 PT (prev. 170). The firm views the company's customer base as "increasingly challenged." The K-shaped economy continues to widen the gap between the low- and high-end consumer, which likely limits Dollar General's comparable sales upside potential. Deutsche also believes the company could face margin pressure as conventional grocery stores lower prices.

FINANCIALS

PayPal (PYPL) - Management said needs to modernize its tech stack, become "AI-native" and reduce our cost structure so savings can be reinvested to accelerate growth.
Cboe Global Markets (CBOE) - Cboe plans to hire Boudewijn Duinstra as Executive Vice President and Chief Risk Officer. He was most recently CEO of ABN AMRO Clearing USA and previously held senior risk roles at ICE Clear Europe and ABN AMRO.