EUROPEAN OPEN: SRGO LN rejects PLD's latest proposal, says it undervalues the co.; PRY IM signs EUR 5.5bln Molex cable deal; Samsung Biologics to acquire PPGN SW for CHF 1.46bln; TIT IM board backs PST IM takeover bid; RYA ID Q1 profit misses

EUROPEAN OPEN:

European equities start the week in the red as geopolitical tensions continue, driving up the price of crude and stoking further inflation concerns. EM stocks and FX were mixed. In Taiwan, retail investors cut leveraged stock positions at the fastest pace since April 2025, helping push the market into a technical correction; margin loans fell by nearly USD 896mln in one day, while outstanding debt declined 7% from a record high to USD 18.2bln.
The US launched further strikes on Iran, targeting military command centres, air defence sites, maritime capabilities and communication networks, after an Iranian attack on Jordan killed two US service members. Iran condemned a US strike on the under-construction Darkhovin nuclear power plant as a violation of international law and suspended its interim peace deal commitments, launching retaliatory missiles from Lorestan province with explosions reported at US bases in Kuwait and Bahrain and in Ras Al-Khaimah. Strikes hit vessels near the Strait of Hormuz.
September Brent has topped USD 90/bbl, its highest since mid-June, after escalating US-Iran hostilities, while September WTI trades around USD 84/bbl. Oil loadings at the Caspian Pipeline Consortium’s Black Sea terminal were suspended on Sunday after a drone strike, Bloomberg reports; operations at moorings 1 and 3 stopped, while the Asia and Nissos Ios tankers were loading.
Following losses of over 2% last week, bullion has steadied around USD 4,010/oz as traders weighed escalating US-Iran hostilities against potential tighter Fed policy. Copper futures are trading slightly higher; China’s imported copper premium over local supplies rose to USD 100/T, its highest in more than a year, according to Shanghai Metals Market. The gauge increased from USD 20/T in late January as tax changes tightened scrap supply and boosted import demand.
In politics, German Chancellor Merz said Jens Spahn’s resignation could prompt a broader cabinet reshuffle; Spahn quit after criticism over using US surrogacy despite previously opposing related German legislation.
In the UK, Andy Burnham will become Prime Minister today after taking Labour’s leadership, and ahead of this, has pledged unity and practical improvements. Cabinet appointments and policy direction still remain uncertain, and are expected soon; Shabana Mahmood is seen as the frontrunner for the Chancellor role. Burnham also plans greater devolution, housing expansion, scrapping digital ID proposals, possible North Sea drilling and public control of Thames Water.
In data, German PPI declined by -0.3% M/M in June (exp. -0.2%, with the annual rate cooling to 1.8% Y/Y (prev. 2.2%).
In the UK, Rightmove House Prices -0.4% Y/Y in July (prev. -0.5%); house prices fell -1.0% M/M in the month (prev. -0.6%); it cited heat, the World Cup and high borrowing costs weighing on demand.

STOCK SPECIFICS:

INDUSTRIALS: The FAA will allow Boeing (BA) to resume issuing airworthiness certificates for all 737 MAX and 787 aircraft from 20th July, following safety and production-quality reviews; FAA will continue inspections, audits and monitoring of Boeing’s production system. Elsewhere, in its 20-year outlook report, Boeing maintained its forecast for 43,625 aircraft deliveries in 2026-2045, including 33,545 single-aisle jets; it expects a near-2K aircraft undersupply entering 2026, passenger traffic growth recovering by 2028, and China accounting for 21% of deliveries. Ryanair’s (RYA ID) Q1 profit after tax -34% to EUR 538mln (exp. 624mln); higher oil prices and weaker demand linked to the Middle East conflict forced fare cuts in the quarter. Ryanair also withheld FY profit guidance, and said H2 visibility remains limited. Prysmian (PRY IM) signed a 10-year optical-cable supply agreement with Molex worth up to EUR 5.5bln, including a EUR 550mln upfront payment. It added that broader hyperscaler and data-centre agreements could generate over EUR 10bln cumulatively by 2035 and up to EUR 1.1bln annually from 2031, while more than doubling US fibre capacity.
REAL ESTATE: Segro (SRGO LN) unanimously rejected Prologis’ (PLD) third takeover proposal, valuing Segro at GBP 13.5bln (GBP 9.93/shr). The offer comprised 0.0890 new Prologis shares per Segro share, plus a partial cash alternative of up to GBP 2.7bln; Segro CEO said the all-share offer undervalues the company. Big Yellow Group (BYG LN) reported Q1 total revenue of GBP 53.2mln (prev. 51.5mln Y/Y) and LFL store revenue of GBP 52.2mln (prev. 51.1mln Y/Y); expects H1 LFL store operating expenditure to increase by 4%.
FINANCIALS: Deutsche Bank (DBK GY) is preparing to sell approximately USD 3bln of debt for Baker Tilly Advisory to refinance private credit loans, Bloomberg reports. Partners Group (PGHN SW) raised over USD 15bln for a new direct infrastructure vehicle, 50% larger than its predecessor; it targets 20-25 investments by end-2027 or early 2028.
COMMUNICATIONS: Telecom Italia’s (TIT IM) board unanimously approved Poste Italiane’s (PST IM) EUR 10.8bln takeover bid as financially fair and issued a positive assessment, Telecom Italia said.
HEALTHCARE: Samsung Biologics (207940 KS) agreed to acquire PolyPeptide Group (PPGN SW) in an all-cash deal valuing its equity at CHF 1.46bln; the offer of CHF 44.31/shr represents a 6.1% premium to Friday’s close. Eurofins (ERF FP) agreed to acquire Element Materials Technology’s North American Life Sciences Testing Services business for USD 400mln.
NOTABLE BROKER UPDATES: Air Liquide (AI FP) upgraded at Morgan Stanley; Computacenter (CCC LN) upgraded at Berenberg; Arkema (AKE FP) downgraded at Morgan Stanley; Clariant (CLN SW) downgraded at Morgan Stanley; Sandvik (SAND SS) upgraded at Kepler Cheuvreux. Nokian Tyres (TYRES FH) downgraded at Nordea.

DAY AHEAD:

EVENTS: Iran’s interior minister will meet Pakistan’s leadership in Islamabad on Monday.
DATA: In Europe, Eurozone construction output for May also due (prev. 0.9% Y/Y). In North America, Canada reports June CPI, where the headline is expected to ease to 3.0% Y/Y (prev. 3.2%), and the core rate is seen unchanged 2.2% Y/Y. The Conference Board’s leading index for June is also due.
CENTRAL BANKS: ECB releases its Survey on the Access to Finance of Enterprises for July. The Fed is now on blackout ahead of its 29th July confab, and markets are pricing at least one hike by year-end.
EARNINGS: Notable corporates reporting today include: Steel Dynamics (STLD), W. R. Berkley (WRB), Domino’s Pizza (DPZ), Zions Bancorporation (ZION).
WEEK AHEAD: This week’s data highlights include: Japanese, UK, Canadian and NZ inflation reports, ECB policy announcement, Global Flash PMIs, Aussie and UK jobs data. Notable earnings dude this week include: Alphabet (GOOGL), Tesla (TSLA), Intel (INTC), Philip Morris (PM), GE Vernova (GEV), Texas Instruments (TXN), RTX (RTX), American Express (AXP), T-Mobile (TMUS), IBM (IBM), Thermo Fisher (TMO), NextEra Energy (NEE), Verizon (VZ), Charles Schwab (SCHW), Union Pacific (UNP), Blackstone (BX), AT&T (T), Danaher (DHR), Chubb (CB), Capital One Financial (COF), Lockheed Martin (LMT), ServiceNow (NOW), Newmont (NEM), CSX (CSX), Moody’s (MCO), CME (CME), Marsh & McLennan (MRSH), Comcast (CMCSA), HCA Healthcare (HCA), 3M Company (MMM), Freeport-McMoRan (FCX).
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