EUROPEAN OPEN: PRX NA tops guidance, plans buyback; BT/A LN forms JV with VZ, cuts guidance; IPN FP to buy Kartos for up to USD 1.75bln; AZN LN Phase III efzimfotase alfa shows improved bone health; VOW3 GY to end Bosch automated driving partnership

EUROPEAN OPEN:

European equities start the week on the front foot; US index futures gained after Axios reported the US and Iran agreed to halt strikes and meet this week in Qatar. S&P 500 and Nasdaq 100 futures gained.
Brent pared gains, and starts European trade below USD 73/bbl, while WTI trades below USD 70/bbl. The US and Iran agreed to stop attacking each other and plan to meet on Tuesday in Qatar to address their Strait of Hormuz dispute, according to a senior US official cited by Axios. Officials said both sides would stand down “for now” and vessels could move freely, with technical talks continuing. Oil pared gains after the Axios reports, which came after a weekend flare-up, where the Kiku supertanker was hit near the Strait of Hormuz.
Commercial traffic through the Strait of Hormuz persisted at a reduced level after attacks on ships, raising fresh concerns about shipowners’ willingness to transit the waterway, though volumes remained higher than for most of the US-Iran war. The Joint Maritime Information Center raised its threat level to substantial after a Singapore-flagged ship and the Kiku tanker were attacked. The US and Iran have since agreed to halt strikes before negotiations resume this week, while the IMO estimates about 80 mines remain in the strait’s historic shipping lanes.
Gold fell towards USD 4,000/oz after renewed US-Iran attacks in the Persian Gulf raised inflation concerns. Copper fell as the Fed’s hawkish stance and a stronger USD weighed on industrial metals. Elsewhere, Goldman Sachs raised its end-2026 and average-2027 copper forecasts to USD 13,735 and USD 13,800 a ton, respectively.
In FX, Bloomberg reports that some Wall Street banks have cut EUR price forecasts as markets price stronger US rate hike prospects than Europe’s; Morgan Stanley said EUR/USD could reach 1.10, while JPMorgan also cut its mid-2027 target to 1.10.
In the UK, the expected next PM Andy Burnham will pledge major devolution of power in England in his first major speech since confirming his aim to succeed Keir Starmer as Prime Minister; he plans more local decision-making, a “No. 10 North”, procurement reform to support British jobs and industry, and measures on apprenticeships, technical education and youth unemployment. Separately, Burnham may be receptive to issuing war bonds to fund defence, with adviser Andy Haldane previously supportive, despite PM Starmer dismissing the idea as “just another form of borrowing,” Bloomberg reports; proposed gilts exempt from inheritance and capital gains tax could attract GBP 10bln in the first year, according to Standard Life chairman, with advocates suggesting they could raise a further GBP 20bln for defence spending.
In data, Spanish prelim inflation rose by +0.6% M/M in June (prev. 0.1%), with the annual rate unchanged at 3.2% Y/Y; the core rate was unchanged at 2.9% Y/Y. Meanwhile, HICP inflation was unchanged at 3.6% Y/Y (exp. 3.4%, prev. 3.6%)

STOCK SPECIFICS:

TECH: President Trump said numerous European countries were discussing imminent digital services taxes on US companies, and he threatened 100% tariffs on any country imposing such a tax. Apple (AAPL) is reportedly pushing the Trump administration to allow it to buy memory chips from blacklisted CXMT, the FT reports.
HEALTHCARE: AstraZeneca (AZN LN) said MULBERRY Phase III showed efzimfotase alfa significantly improved bone health, rickets severity, physical function and quality of life in untreated children with hypophosphatasia. Ipsen (IPN FP) Ipsen agreed to buy Kartos Therapeutics for up to USD 1.75bln, including USD 450mln upfront, adding navtemadlin and targeting Q3-end close. The FDA accepted for review Sandoz’ (SDZ SW) two NDAs for generic versions of tirzepatide, the key ingredient in both Zepbound and Mounjaro.
COMMUNICATIONS: BT Group (BT/A LN) agreed to form a 50/50 JV with Verizon (VZ), combining their international operations into a new company focused on multinational connectivity, serving more than 3,000 customers across over 180 countries with combined annual revenue of about USD 4bln. Following the announcement, BT cut its FY27 guidance; sees adj. revenue of GBP 17.1-17.6bln (prev. saw 19-19.5bln), and adj. EBITDA of GBP 8.1-8.2bln (prev. saw 8.2-8.3bln). Alphabet’s (GOOG) Google reportedly told Meta (META) it could not provide all of the Gemini capacity that the company wanted to purchase; sources cited by the FT added that Meta has encouraged staff to be more efficient with AI tokens in a push to streamline costs.
CONSUMER: UK Housing Minister Reed is considering a state-run housebuilder able to borrow below private developer rates, potentially competing with Taylor Wimpey (TW/ LN) and Barratt Redrow (BTRW LN). Ocado (OCDO LN) top investors reportedly plan to urge the board to halt CEO Steiner’s removal, after plans to find a successor were announced, FT said. Porsche AG (PAH3 GY) is reportedly planning to move Cayenne production from Bratislava to Leipzig to use spare capacity, depending on employee representatives accepting significant wage cuts. Volkswagen (VOW3 GY) plans to end its automated-driving partnership with Bosch and Cariad after around EUR 1.5bln was invested, with a replacement partner due by September, Bild reports. Toyota’s (TM) global sales fell 7.4% in May to 885,207 units, while production declined 5.8% to 857,765 units; sales dropped 38.6% in the Middle East, and 31.7% in China. Prosus (PRX NA) reported FY26 revenue of USD 9.71bln (vs USD 6.2bln Y/Y, and vs guidance for above USD 7.3bln). Adj. EBITDA was USD 1.05bln (exp. 0.947bln), core headline EPS +24%; FY dividend was raised +40% to EUR 0.28/shr, and it plans FY27 buybacks at USD 5bln. British American Tobacco (BATS LN) is reducing its 47,000-strong global workforce by about one-fifth, slashing 5,500 jobs and outsourcing a further 3,500 by year-end, excluding its US business, according to an internal notice seen by Bloomberg.
INDUSTRIALS: Nasdaq said SpaceX (SPCX) will join the Nasdaq 100 Index before market open on 7th July.
NOTABLE BROKER UPDATES: Ashmore (ASHM LN) upgraded at Peel Hunt; Addtech (ADDTB SS) upgraded at DNB Markets; Nokia (NOKIA FH) downgraded to Hold from Buy at Handelsbanken; Goldman Sachs reiterated Adecco (ADEN SW) and EssilorLuxottica (EL FP) with Buy ratings.

DAY AHEAD:

EVENTS: Andy Burnham will give a speech today at 11:30BST/06:30EDT where he is expected to pledge English devolution, a “No. 10 North”, procurement reform for UK jobs, apprenticeships, technical education and youth unemployment measures as he targets the UK PM role.
DATA: In Europe, Eurozone final consumer confidence for June is expected at -17.7 (prev. -19.0), economic sentiment is also due (prev. 93.5). In the UK, mortgage approvals for May (prev. 65.94K) and consumer credit are due (prev. GBP 1.859bln). In North America, US Dallas Fed manufacturing index for June will be released (prev. 0.4).
CENTRAL BANKS: ECB’s Lagarde (neutral) delivers introductory remarks (text expected); BoE chief economist Pill (hawk) will participates on a panel.
OPTION EXPIRIES: Copper, Silver and Gold June 2026 futures expiry.
WEEK AHEAD: This week’s data highlights include: US NFP, US ISM Mfg PMI, EZ Flash CPI, Swiss CPI. Notable US corporate earnings due this week include: NIKE (NKE), Constellation Brands (STZ), General Mills (GIS), FactSet (FDS).
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