EUROPEAN OPEN: E& sells VOD LN stake for USD 5.95bln; BAYN GY gets EUR 3bln from APO; EZJ LN agrees GBP 5.7bln APO takeover; US pauses aircraft tariffs pending trade talks; IFX GY raises prices, warns on chip allocation; VOW3 GY to halve model line-up

EUROPEAN OPEN:

• European equities have opened higher; still, on the week, futures of the broad Stoxx 600 and the narrower Euro Stoxx 50 are on course to snap last week’s upside. Overnight, APAC equities rose on renewed optimism over AI demand following the tech-led gains Stateside on Thursday.
• The Japanese yen strengthened after remarks from Japan’s FinMin, who urged pension funds to invest more in Japanese assets. Still, Bloomberg notes that traders questioned whether JPY gains can last without any firm allocation changes, stronger BoJ tightening or fiscal restraint.
• China’s yuan strengthened after the PBoC set its daily fixing at 6.7989, below 6.80 for the first time since 2023.
• Crude futures trades slightly higher, with Brent above USD 76/bbl and WTI above USD 72/bbl as US-Iran technical talks continued despite renewed strikes by both sides and substantially reduced Hormuz traffic. President Trump said the interim deal was over, though it has not yet been formally scrapped, with some stipulations still being observed.
• Gold steadied near USD 4,110/oz as investors weighed renewed Middle East clashes and higher-for-longer US rate outlook; bullion is down over a percent for the week, and more than 20% since the Iran war began. Analysts say central-bank buying has remained supportive, with the PBoC extending its longest purchasing streak since at least 2015.
• Iron ore is headed for its biggest weekly gain since early May as a planned BHP Group port strike and unresolved Chinese restrictions on Fortescue cargoes raised supply concerns. Copper is on track for a second consecutive weekly gain as traders look beyond demand risks from renewed Middle East fighting.
• In UK politics, Andy Burnham received nominations from 322 of 403 Labour MPs on the first day of the party leadership contest, effectively securing his path to become the next UK Prime Minister. With no rival able to reach the required 81 nominations, Burnham is set to become party leader when the race closes on 17th July, and is expected to formally become PM on 20th July.
• Elsewhere, ECB President Lagarde said she is not a candidate in France’s 2027 presidential election, but intends to advocate Europe’s importance during the campaign, according to Euronews.
• In data, UK retail footfall fell 3.4% Y/Y in June as a heatwave deterred shoppers, the BRC said; high-street visits dropped 6.2%, shopping-centre traffic fell 2.5%, retail-park footfall declined 0.3%. In Germany, final inflation figures for June were -0.3% M/M (exp. -0.3%), and 2.3% Y/Y (exp. 2.3%, prev. 2.6%). French final inflation figures were unrevised, with the annual rate confirmed at 1.8% Y/Y (exp. 1.8%).

STOCK SPECIFICS:

• TECH: Infineon (IFX GY) CEO said it is raising prices in some segments, and warns power-management chips could face allocation as demand recovers, Handelsblatt reports.
• SK Hynix (SKHY) raised USD 26.5bln in its US ADR offering (vs suggestions earlier in the week it would be looking to raise USD 28bln), the largest ever US first-time share sale by a foreign company, selling 177.9mln ADRs at USD 149 each (a 3% premium to Thursday’s Seoul close). The offering was more than seven times oversubscribed, and topped Alibaba’s (BABA) US debut to become the third largest listing in history. ADRs are set to begin trading on Nasdaq under the symbol SKHY on 13th July.
• INDUSTRIALS: EasyJet (EZJ LN) has agreed to a GBP 5.7bln takeover by Apollo (APO) at 715p/shr, outbidding Castlelake’s previously agreed 690p/shr offer. Of note for jet makers, the US will not immediately impose tariffs on commercial aircraft, jet engines and parts following a Section 232 national security investigation, with President Trump instead directing the USTR and Commerce Department to negotiate with trading partners on import adjustments; future duties remain possible if agreements are not reached within 180 days or prove ineffective.
• ENERGY: Germany’s oil industry retained EUR 100-200mln of a EUR 1.6bln two-month fuel tax cut intended to ease motorist costs, passing on just EUR 0.15-0.16 per litre of the EUR 0.17 reduction on average, according to the Monopolies Commission; the panel concluded such market interventions should be avoided in future as they are costly, provide asymmetric relief and dampen price signals.
• COMMUNICATIONS: UAE telecoms group E& will sell its Vodafone (VOD LN) stake to the family group of French billionaire Xavier Niel for USD 5.95bln, a 15% premium to the last close; the deal will generate a net cash return of approximately USD 1.3bln for E&, and marks its exit from Vodafone following a review of its international portfolio.
• CONSUMERS: Volkswagen (VOW3 GY) said it will streamline its model line-up by up to 50%, focusing on the most attractive market segments; it is adjusting production capacity targets to 9mln vehicles annually, and refocusing its equity and investment portfolio on strategic contribution and returns.
• FINANCIALS: HSBC (HSBA LN) is said to be marketing risky Hang Seng Bank loans to investors after taking the Hong Kong lender private for USD 13.6bln, FT reports. UBS (UBSG SW) advised clients overexposed to private credit to withdraw from Blue Owl’s (OWL) USD 3bln technology income fund, FT reports; investors withdrew 15.4% of assets in Q4 2025, causing about USD 400mln of net outflows, while redemption requests exceeded 40% of fund value in Q1 2026.
• HEALTHCARE: Bayer (BAYN GY) has secured EUR 3.0bln in equity capital from Apollo (APO) managed funds, which will acquire a minority, non-controlling stake in a newly established entity holding Bayer’s long-acting reversible contraceptives business. Bayer will retain a majority stake and full operational control.
• NOTABLE BROKER UPDATES: Intertek (ITRK LN) downgraded at Rothschild; Wizz Air (WIZZ LN) downgraded at RBC; Watches of Switzerland (WOSG LN) downgraded at Jefferies. Leonardo (LDO IM) upgraded at Jefferies; Salzgitter (SZG GY) upgraded at JPMorgan.

DAY AHEAD:

• EVENTS: Eurogroup Economic and Financial Affairs Council meets.
• DATA: In North America, Canada employment data for June is expected to see the headline at 10.0K (prev. 88K) and the unemployment rate rising to 7.00% (prev. 6.6%). USDA’s world agricultural supply and demand estimates report is also due today (analysts expect lower corn production estimates and a rise in soybean output forecasts).
• CENTRAL BANKS: ECB’s Vujcic (neutral) participates in a panel (no text expected).
• SUPPLY: Italy auctions EUR 6–7.5bln across 2029, 2033 and 2041 lines.
• ENERGY: IEA Oil Market Report for July published; Baker Hughes weekly rig counts due (prev. oil rigs 445, prev. total rigs 580).
• EARNINGS: Notable US corporate earnings due today include: Delta Air Lines (DAL).
• CRA: On today’s slate, potential reviews from Fitch on the Netherlands (AAA), Morningstar DBRS on Switzerland (AAA); Scope Ratings on Japan (A).