EUROPEAN OPEN: SGRO LN accepts GBP 14.3bln PLD takeover; HSBA LN beats in Q2, raises savings target; BAYN GY tops Q2 expectations, cuts debt forecast; CON GY margin beats, FY guidance disappoints; BP/ LN beats in Q2, launches Archaea sale

STOCK SPECIFICS:

• REAL ESTATE: Segro (SGRO LN) agreed to Prologis’s (PLD) takeover offer worth up to GBP 14.3bln; the bid comprises 0.0920 Prologis shares and up to GBP 3.5bln cash, representing about a 14% premium to net asset value, and 45% above Segro’s pre-bid share price. Prologis may also pursue a secondary London listing.
• FINANCIALS: HSBC (HSBA LN) Q2 pre-tax profit USD 10.1bln (exp. 9.5bln), H1 pre-tax profit +23% Y/Y to USD 19.5bln. Wealth inflows moderated to USD 25bln in the quarter (vs USD 39bln in Q1), remaining broadly flat Y/Y amid Beijing’s clampdown on cross-border capital flows. Provisions totalled USD 1.1bln, including charges related to Hong Kong commercial real estate. Approved a second interim dividend of USD 0.10/shr, and announced a buyback of up to USD 1bln, resuming repurchases following a pause to accommodate the Hang Seng Bank privatisation. The restructuring cost-saving target was raised to USD 2bln (from USD 1.5bln), with the bank having exited 15 non-strategic businesses since 2025. CEO said portfolio rationalisation was progressing. Sees FY26 banking net interest income of ‘at least’ USD 46bln (prev. saw ‘around’ 46bln).
• HEALTHCARE: Bayer (BAYN GY) Q2 adj. EBITDA EUR 2.14bln (exp. 1.93bln); profit was supported by a strong performance in the crop science business. Maintained its FY26 outlook, but cut its 2026 net-debt forecast to EUR 29-30bln (from EUR 32-33bln), after selling a minority stake in its contraceptives unit. Fresenius Medical Care (FME GY) Q2 EPS 0.81 (exp. 0.68), Q2 revenue EUR 4.86bln (exp. 4.79bln); operating income excluding special items reached EUR 569mln (exp. 515mln), supported by cost reductions and favourable US reimbursement rates, partly offset by declining patient treatment volumes. Maintained its FY26 outlook, sees revenue growth broadly flat, operating income growth between a negative and positive mid-single-digits.
• CONSUMER: Continental (CON GY) revenue were in-line, adj. EBIT margin beat, FY guidance was below expectations; expects raw material costs to be “substantially” higher in H2. Zalando (ZAL GY) revenue missed, FY guidance seen at the lower end of the range, and narrowed its EBIT view. Q2 adj. EBIT 204.8mln (prev. 185.5mln Y/Y), Q2 revenue EUR 3.42bln (exp. 3.47bln). Group GMV +20.9% Y/Y to EUR 4.92bln (from EUR 4.07bln), while net income fell to EUR 73.8mln (from EUR 96.6mln). Sees FY26 GMV and revenue growth in the lower half of its 12-17% range, and narrowed its FY26 adj. EBIT view to between EUR 680-720mln (prev. saw 660-740mln), supported by About You synergies, logistics efficiencies and growth in higher-margin partner, software and retail media businesses.
• INDUSTRIALS: Lufthansa (LHA GY) Q2 adj. EBIT 383mln (exp. 408mln), Q2 net profit was EUR 123mln (exp. 327.6mln), Q2 revenue EUR 11.14bln (exp. 11.04bln); adj. EBIT fell as fuel costs rose by EUR 750mln; improved load factors and higher yields were insufficient to offset the fuel-cost increase. Sees FY26 adj. EBIT between EUR 1.7-2.2bln (exp. 1.79bln; prev. saw significantly above 1.96bln); outlook remains subject to heightened uncertainty from short booking cycles, geopolitical and macroeconomic conditions and aircraft delivery timing.
• ENERGY: Saudi Aramco’s Q2 adj. net income rose above expectations , as higher crude, refined-product and chemical prices supported despite lower sales volumes; it used its East-West pipeline to bypass Hormuz disruptions; declared a Q2 base dividend of USD 21.9bln. BP (BP/ LN) Q2 adj. net income 5.73bln (exp. 5.01bln), more than doubling Y/Y and reaching its highest level in more than four years, supported by stronger oil trading and refining margins during the Iran war. BP also launched a process to sell its Archaea Energy renewable natural gas business as part of its wider portfolio simplification, cost reduction and balance-sheet repair strategy.
• MATERIALS: Evonik (EVK GY) Q2 adj. EBITDA 630mln (prev. 509mln Y/Y), adj. EBIT rose to EUR 370mln (from EUR 250mln Y/Y), Q2 revenue EUR 3.89bln (exp. 3.82bln); raised its FY26 adj. EBITDA view to between EUR 2-2.2bln (prev. saw 1.7-2bln).
• TECH: ams-OSRAM (AMS SW) Q2 adj. EBITDA 136mln (prev. 145mln Y/Y), Q2 revenue EUR 805mln (exp. 788.6mln), Q2 adj. EPS fell to -0.56 (from 0.18 Y/Y). Its microLED-array-based RGB light engines achieved key development milestones for next-generation smart glasses, validating performance and advancing towards mass-production readiness. Sees Q3 revenue between EUR 770-870mln (exp. 799.8mln), sees Q3 adj. EBITDA margin of 14.5-17.5%; backed its FY26 outlook. Palantir (PLTR) shares jumped almost 15% in extended trading after better than expected Q2 metrics, surging US commercial demand, and a raised FY outlook. Onsemi (ON) shares rose 6% in extended trading after earnings and revenue topped expectations, and it raised its outlook for AI data centre sales.
• COMMUNICATIONS: Snap (SNAP) shares rose by 7% in afterhours trading following revenue, earnings and user metrics beats, and its sales outlook was stronger than forecast, while advertising momentum improved.

DAY AHEAD:

• EVENTS: OpenAI, Anthropic and Google plan to attend a White House meeting on voluntary AI safety testing today.
• DATA: In North America, US JOLTs job openings leads seen at 7.45mln in June (prev. 7.594mln); last time out, the quits rate was unchanged at 1.9%, and the vacancy rate was unchanged at 4.6%. US trade balance in June is expected to see the deficit narrow to USD -73bln (prev. USD -77.6bln); US factory orders are seen rising 0.2% M/M in June (prev. -1.3%). The Atlanta Fed GDPNow tracker for Q3 will be updated after today’s data. In Canada, the trade balance is seen at CAD 3.0bln (prev. CAD 4.24bln), while S&P will also release Canada’s global manufacturing PMI for July (prev. 53.0).
• CENTRAL BANKS: Fed’s Paulson (voter, neutral) speaks on CNBC; ECB publishes Bulletin pre-release on venture capital financing and high-growth firms; BoE releases Q2 Asset Purchase Facility report.
• SUPPLY: UK sells GBP 4.25bln of 2032 debt. Germany auctions EUR 6bln of 2028 Schatz.
• EARNINGS: Notable earnings due today include: SpaceX (SPCX), AMD (AMD), Caterpillar (CAT), Merck (MRK), Arista (ANET), Amgen (AMGN), McDonald’s (MCD), Gilead (GILD), Booking Holdings (BKNG), Pfizer (PFE), Progressive (PGR), Spotify (SPOT), Duke Energy (DUK), Marathon Petroleum (MPC), Cummins (CMI), Emerson Electric (EMR), TransDigm (TDG), Apollo (APO), W.W. Grainger (GWW), AMETEK (AME), Rockwell Automation (ROK), Astera Labs (ALAB), Devon Energy (DVN), IDEXX (IDXX), Prudential (PRU), Sysco (SYY), Archer-Daniels-Midland (ADM), Public Service Enterprise Group (PEG), Waters (WAT), Kimberly-Clark (KMB), NRG Energy (NRG), International Flavors & Fragrances (IFF), DuPont (DD), Wynn Resorts (WYNN), Paramount Skydance (PSKY), Mosaic Company (MOS).
• ENERGY: Afterhours, the API will report weekly energy inventories data.