EUROPEAN OPEN: HEIA NA CEO to step down in May; STLAM IM said to scrap Jeep SUV and Chrysler Minvan due to slowing EV sales; DBK GY USD 2.5bln India unit draws interest; LLY reportedly still in for ABVX FP

• EUROPEAN OPEN: European equities have started lower. Overnight news flow has been dominated by the US DoJ issuing subpoenas on Fed Chair Powell, threatening a criminal indictment over his testimony last June on a building renovation project. Powell called the action unprecedented political pressure, denied wrongdoing, defended Fed independence and said he would continue performing his duties. President Trump has since faced bipartisan criticism; Senator Thom Tillis said he would block Trump’s Fed nominees until the issue is resolved. Bloomberg reported that FHFA director Bill Pulte was a key force behind the administration’s decision, adding that some allies fear the move will unsettle bond markets and deter Powell from leaving when his chairmanship ends in May. The USD fell the most in nearly three weeks after the news, which has again raised concerns about political interference. Gold and silver notched fresh record highs as the DoJ threatened the Fed with a criminal indictment, with gold rising towards USD 4,600/oz and silver nearing USD 84/oz, while protests in Iran also boosted haven demand. Iron ore prices rose, supported by pre-holiday restocking by steel mills and higher hot-metal output; futures climbed in Singapore as Chinese steelmakers prepared for Lunar New Year restocking, putting prices on track for their highest close since October 2024. Copper climbed toward a record highs as supply concerns and a weaker USD lifted base metals. Oil are flat, holding their biggest two-day gain since October as escalating protests in Iran threatened supply from OPEC’s fourth-biggest producer; Brent traded above USD 63/bbl, while WTI is a little above USD 59/bbl, as the US monitors the situation. In the UK, employers reduced hiring again in December, according to a survey by the REC/KPMG, which adds to concerns about a weakening labour market; permanent placements fell at the fastest pace since August after Labour’s tax-raising budget in November, while temporary hiring also fell.
• STOCK SPECIFICS: In autos, Mercedes-Benz (MBG GY) is relocating production of the A-Class from Germany to Hungary, according to the Hungarian Trade Minister. Stellantis (STLAM IM/STLAP FP) is reportedly scrapping its plug-in hybrid electric Jeep SUV and Chrysler Minivan due to slowing EV sales, according to CNBC. In consumer sectors, Heineken (HEIA NA) CEO Dolf Van Den Brink is to step down from their role on 31st May, and the beverage maker will begin a search process for his successor. Nestle (NESN SW) received a cautious mention in Bloomberg, which said the CEO Navratil is facing an escalating infant formula contamination crisis only months after taking charge, challenging the Swiss foodmaker’s planned turnaround early in 2026. In materials, Rio Tinto’s (RIO LN) talks to buy Glencore (GLEN LN) could spur mining consolidation and pressure BHP (BHP AT) to respond, driven largely by copper demand, according to analysts cited by Reuters. Vallourec (VK FP) has secured a significant contract with Shell (SHEL LN), following a competitive bidding process. In energy, Exxon (XOM) CEO said the oil major is ready to evaluate a potential return to Venezuela, but considers the country currently uninvestable, and the firm would need security guarantees and to see legal reform after past seizures, Reuters reports; President Trump later said he may block Exxon from drilling in Venezuela after its CEO publicly cited barriers to operating there. In financials, credit card companies are on watch following remarks from US President Trump, who is calling for a one-year cap on credit card interest rates of 10%, citing some credit card interest rates of between 20-30%. Deutsche Bank’s (DBK GY) India retail and wealth management assets have drawn binding bids from Kotak Mahindra Bank and Federal Bank, according to Bloomberg; the assets are estimated to have a book size of at least USD 2.5bln. In healthcare, Eli Lilly (LLY) is reportedly still in the running to purchase the Abivax (ABVX FP), for as much as EUR 15bln, La Lettre reports; Lilly is awaiting insight into whether any bid would be subject to antitrust/competition procedures. Sanofi’s (SAN FP) Teizeild approved in the EU for patients with stage 2 type 1 diabetes; approval was based on the TN-10 phase 2 study that demonstrated a significant delay of onset of stage 3 T1D in stage 2 T1D patients. In notable broker updates, Mondi (MNDI LN) was downgraded at Morgan Stanley; analysts suggest that the company is trading above its long-term multiples, adding that market fundamentals are subdued. Legrand (LR FP) was downgraded at Goldman Sachs. Pandora (PNDORA DC) was downgraded at Nordea

TODAY'S AGENDA:

• DAY AHEAD: The data slate is thin ahead of key events this week including the start of US earnings season, US CPI and retail sales, UK GDP, and China trade figures. Fed speakers due today include: Fed's Bostic (2027 voter; no text expected, only Q&A), Fed's Barkin (2027 voter; no text expected, only Q&A) and Fed's Williams (voter; text and Q&A are both expected); elsewhere, ECB Vice President de Guindos will deliver remarks, but no text is expected. On the supply front, the US Treasury will auction USD 58bln of 3yr notes and USD 39bln of 10yr notes today.
• WEEK AHEAD: The week ahead includes the start of US earnings season, US CPI and retail sales, UK GDP, and China trade figures. The US will host a meeting of G7 ministers this week to discuss rare earths and critical mineral supply chains, highlighting efforts to develop alternative supplies to China’s dominance. President Trump is set to be briefed Tuesday on options to respond to protests in Iran, according to US officials cited by the WSJ. Possible measures include cyber operations, expanded sanctions, online support for antigovernment groups and potential military strikes, as the administration weighs follow-through on threats over the crackdown. Financials will kick-off earnings season, with JPM, BAC, WFC, GS, MS, and C all set to report this week.
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