EUROPEAN OPEN: EZJ LN & ITH LN join FTSE 100, ENT LN & PSN LN to leave; DTE GY faces Elliott push against TMUS merger; VOD LN to launch first UK TV service; SHEL LN acquires BP/ LN stakes in offshore blocks

EUROPEAN OPEN:

• European equities have started mixed, but not too far off neutral. Overnight, APAC stocks traded mixed after initially gaining, with markets losing momentum into the European open; some traders suggested that Korean memory stocks sold off on rumours that the US is preparing tariffs targeting Korean semiconductors.
• Crude futures dipped following a three-day rally, after President Trump said renewed Iran strikes would likely be brief, and officials pointed towards steady Strait of Hormuz flows. November Brent traded below USD 95/bbl after gains of over 8% in the last three sessions, while October WTI was around USD 90/bbl. US Treasury Secretary Bessent said Ukrainian strikes on Russian energy assets and the Iran conflict are driving a global energy shock and higher prices.
• Metal prices rose after Trump’s remarks, which helped to ease escalation and inflation fears. Copper rose to USD 14,239/ton; ANZ said copper could reach a record early next year as US tariff concerns, mine supply constraints and resilient demand support prices. Gold rose for a second day, with spot prices entering the European day around USD 4,430/oz.
• In data, China’s RatingDog Services PMI rose to 51.4 in August (exp. 50.6; prev. 50.4), while the Composite PMI increased to 52.1 (prev. 50.8). The services reading signalled faster expansion, with employment rising for a fourth month, and firms increasing prices for a third consecutive month. Swiss CPI rose by 0.4% M/M in August (exp. 0%, prev. -0.1%), with the annual rate rising to 0.8% Y/Y (exp. 0.5%, prev. 0.4%).
• German Chancellor Merz will meet ECB officials in Berlin next week ahead of the central bank’s two-day policy meeting, Bloomberg reports. The article notes that the gathering comes amid speculation over President Christine Lagarde’s future, and whether Germany may nominate Bundesbank President Joachim Nagel as her successor.
• In the UK, Business Secretary Reynolds privately told business leaders the government is not pursuing an exit tax, with a source categorically rejecting the idea, FT reports.

STOCK SPECIFICS:

• INDEX: EasyJet (EZJ LN) and Ithaca Energy (ITH LN) will join the FTSE 100, replacing Entain (ENT LN) and Persimmon (PSN LN); changes are effective from the 21st September.
• TECH: Microsoft (MSFT) will begin disclosing quarterly Azure sales, reversing years of limited transparency after Wall Street criticism over reporting on its key cloud growth engine; it affirmed its overall Q1 revenue outlook of USD 89.85-90.95bln. Separately, Microsoft CEO Satya Nadella sold 86.5K shares of stock for a total transaction of USD 43.4mln. Broadcom (AVGO) shares fell around 1.5% in extended US trading after Q4 revenue and margin outlooks came in below expectations, outweighing stronger quarterly results and a raised longer-term AI revenue forecast. Hewlett Packard Enterprise (HPE) shares fell over 5% in extended trading, despite beating quarterly expectations and raising its forecasts, as persistent supply constraints, particularly in memory and other components, weighed. Snowflake (SNOW) surged 24% in extended trading after a Q2 beat, and Q3 product revenue guidance topped forecasts, while it also raised its FY product revenue and margin outlook, supported by momentum in its AI coding tools.
• COMMUNICATIONS: Elliott Investment Management has built a stake in Deutsche Telekom (DTE GY), and has suggested that Deutsche Telekom abandon a potential merger with T-Mobile US (TMUS) and pursue alternatives, including potential larger share buybacks. Deutsche Telekom currently owns around 54% of T-Mobile US. VodafoneThree (VOD LN)** will launch its first UK TV service next month, offering streaming services including Netflix (NFLX) and HBO Max (WBD) as it targets over 4.3mln broadband customers by 2034, FT reports. It will not produce its own content; it also plans a premium “SuperMobile” service with faster download speeds.
• ENERGY: Shell (SHEL LN) has agreed to acquire from a 50% stake in the Tupinamba exploration block offshore Brazil from BP (BP/ LN), and a 30% stake in five Gulf of America leases containing the Conifer exploration prospect. Elsewhere, BP (BP/ LN) said company secretary Mathews will step down and move into a special adviser role.
• MATERIALS: Holcim (HOLN SW) launched a calcined clay production line at its Cizkovice plant, enabling annual supply of 580K tonnes of ECOPlanet low-carbon cement; the approximately CHF 40mln investment is Holcim Czech Republic’s largest ever.
• CONSUMER DEFENSIVE: Nestle (NESN SW) will invest USD 393mln in its nutrition and health division in Brazil through 2028; the investment will include construction of a new infant formula plant.
• CONSUMER CYCLICAL: Delivery Hero (DHER GY) recommended shareholders accept Uber’s (UBER) EUR 41.50/share takeover offer.
• HEALTHCARE: Hutchmed (0013 HK) granted GSK (GSK LN) exclusive rights outside Mainland China, Hong Kong, Macau and Taiwan to develop and commercialise HMPL-A830; GSK will pay USD 110mln upfront, with total potential development, regulatory and commercial milestone payments of up to USD 1.295bln.
• EX-DIV: Going ex-dividend today: Admiral (ADM LN), Antofagasta (ANTO LN), Aviva (AV/ LN).
• NOTABLE BROKER UPDATES: Morgan Stanley initiates Aker BP (AKRBP NO) with Underweight, EQT (EQT SS) and Var Energi (VAR NO) with Overweight, Banca Mediolanum (BMED IM) with Equal Weight; SEB downgrades Aker BP (AKRBP NO) and Equinor (EQNR NO), initiates Saipem (SPM IM) with a Hold. SalMar (SALM NO) downgraded at Norne Securities; Benefit Systems (BFT PW) initiated with Buy at Citi; Legrand (LR FP) upgraded at Deutsche Bank; Citi initiates Ithaca Energy (ITH LN) with Equal Weight, and downgrades Pearson (PSON LN); Prudential (PRU LN) initiated with Buy at Berenberg; SSE (SSE LN) initiated with Outperform at Societe Generale.

DAY AHEAD:

• DATA: In Europe, final August services PMI final data are due: UK exp. 52.8, Eurozone exp. 51.7, Germany exp. 48.5, France exp. 48.4. Eurozone July PPI is expected to rise to 4.7% Y/Y (prev. 4.6%). In North America, the US July trade balance is seen widening to USD -90bln (prev. USD -73.3bln). ISM Services PMI headline is seen at 54.3 (prev. 54.1), with business activity at 59 (prev. 59.1), prices easing to 66 (prev. 70.3), new orders little changed at 57 (prev. 57.2), and employment rising back into expansion at 51.8 (prev. 47.4); the S&P final S&P Global services for the US is due before the ISM, and the headline is seen at 56.8 (prev. 54.6). Weekly initial jobless claims are seen little changed around 205K (prev. 203K), and continuing claims are expected to rise to 1,816K (prev. 1,778K). Q2 final nonfarm productivity is expected to rise 1.4% Q/Q (prev. 0.3%). Challenger job cuts are seen rising to 62.0K (from 33.429K). After today’s data, the Atlanta Fed will update its Q3 GDPNow tracking estimate (prev. 4.8%). Elsewhere, Canada trade balance is seen narrowing a touch to CAD 3.6bln (prev. CAD 3.86bln).
• CENTRAL BANKS: Fed’s Waller (voter, hawk) speaks on inflation and the economic outlook; Fed’s Hammack (2026 voter, hawk) delivers opening remarks; Fed’s Goolsbee (2027 voter, neutral) delivers closing remarks. Riksbank’s Thedeen and Hjelm both speak on the economic situation and current monetary policy.
• SUPPLY: France auctions EUR 11.5-13.5bln of OATs 2036, 2036, 2040 and 2046 debt. Spain sells EUR 5-6bln of 2029, 2031 and 2036 debt, alongside EUR 0.25-0.75bln of 2039 linkers. The UK sells GBP 900mln of 2049 linkers.
• ENERGY: EIA reports weekly natural gas stocks change (prev. +15bcf).
• EARNINGS: Notable corporates reporting today include: Ciena (CIEN), Lululemon (LULU), DocuSign (DOCU).