EUROPEAN OPEN: SSNLF-Union talks reportedly make progress; UBER raises DHER GY stake; ZIM gets rival USD 4.5bln takeover bid; EVO SS to buy back EUR 2bln shares; STAN LN targets 15% corporate job cuts

EUROPEAN OPEN:

• European equities have opened higher amid geopolitical optimism, after President Trump said he would hold off a planned attack on Iran to allow further talks. Overnight, APAC stocks were mixed, while tech came under pressure as higher global bond yields weighed on valuations. South Korea’s KOSPI fell on concerns that gains remain concentrated in chipmakers Samsung Electronics and SK Hynix; the index is still up 75% this year, with the two companies accounting for around two-thirds of that advance.
• US Treasury yields edged lower as oil prices eased after Trump delayed his Iran strike. Long-end yields had initially risen overnight to the highest since 2007, with Bloomberg noting investors are weighing locking in elevated rates against the risk of a further selloff; Goldman Sachs sees emerging value in Treasuries, Barclays warned yields could exceed 5.5%, while BlackRock recommended reducing exposure to developed-market government bonds.
• Oil fell after Trump called off a planned 19th May strike on Iran following appeals from Saudi Arabia, Qatar and the UAE, with Brent around USD 110/bbl. The US Treasury also extended for 30 days a sanctions waiver allowing purchases of Russian seaborne oil to support energy-vulnerable countries affected by the Iran war and Strait of Hormuz closure. Treasury Secretary Bessent said the measure would help stabilise crude markets.
• Gold initially rose as hopes for a US-Iran ceasefire deal eased some concerns, with bullion gaining to around USD 4,585/oz after Trump delayed planned attacks on Iran to allow more time for negotiations. It later gave back the gains, and starts Europe at around USD 4,550/oz. Copper fell as investors remained cautious on the global economic outlook despite Trump pausing planned strikes on Iran. Futures initially rose in APAC trade, but retreated with Asian equities as uncertainty over any Iran resolution persisted. Iron ore fell for a fourth session overnight to its lowest in more than two weeks, after data showed China’s economy slowed in April, raising concerns over steel demand.
• On today’s radar, US President Trump will sign executive orders afterhours; EU officials will meet to finalise legislation for the bloc’s US trade deal; Russian President Putin will travel to Beijing for talks with Chinese President Xi; Japanese PM Takaichi and South Korean President Lee will meet, as the sides seek stronger economic ties amid uncertainty from the Iran war and shifting US-China dynamics. On the equity front, Google (GOOG) I/O developer conference takes place between today and tomorrow.
• DATA: Japan’s GDP grew 0.5% in Q1 (exp. 0.4%), and 2.1% annualised, which analysts said supports the case for another BoJ rate hike as the Middle East conflict lifts inflation risks. In the UK, the UK unemployment rate rose to 5% in March (exp. 4.9%), though the economy added 148k jobs (exp. 107k); average earnings (inc bonus) rose by 4.1% annualised in the three-months through March (exp. 3.8%), while the ex-bonus measure eased to 3.4% (exp. 3.4%, prev. 3.6%). The timlier April HMRC payrolls change declined by a rate of -100k (exp. -26k), and the claimant count was at 26.5k (exp. 27.3k).

STOCK SPECIFICS:

• TECH: Samsung (SSNLF) and its South Korean labour union are narrowing differences in talks aimed at averting what could become the company’s biggest-ever strike; the union is reportedly giving some ground, and there is a possibility of an agreement, reports suggest. Uber (UBER) increased its stake in Delivery Hero (DHER GY) to 19.5% and holds a further 5.6% in options; Uber said it currently has no intention of acquiring 30% or more of Delivery Hero voting rights, with the investment supporting competition with DoorDash (DASH).
• INDUSTRIALS: ZIM Integrated Shipping (ZIM) has approved a USD 4.2bln takeover by Hapag-Lloyd (HLAG GY) and FIMI Opportunity Funds, but businessman Haim Sakal and Israeli investors have made a rival all-cash USD 4.5bln bid, FreightWaves reports. The new offer reportedly includes a USD 250mln employee bonus package and pledges to keep the fleet and operational headquarters under Israeli control. Thyssenkrupp (TKA GY) will close its Terre Haute plant in Indiana, as part of its automotive technology restructuring, WSJ reports. Production will be wound down by 31st March 2027, with around 230 jobs affected. Of note for defence stocks, the UK is reportedly preparing a multi-billion-pound injection of cash into the development of a stealth fighter jet with Japan and Italy. Rheinmetall (RHM GY) is to receive a EUR 1bln truck order from the German armed forces for 2,030 units. Leonardo (LDO IM) DRS launched the Tenum 640 Orbit uncooled long-wave infrared thermal camera module for unmanned air, ground and maritime platforms. The company will debut the product at SOF Week in Florida.
• ENERGY: The lockout at BP’s (BP/ LN) Whiting refinery in Indiana (440k BPD) has now extended to three months, with contract talks remaining unresolved; the dispute affects around 800 workers, though BP continues operations at the refinery.
• MATERIALS: ArcelorMittal (MT NA) has sold approximately 23.9mln shares in Vallourec (VK FP), representing approximately 10.0% of Vallourec’s outstanding share capital, raising approximately USD 667mln. Fresnillo (FRES LN) said 2025 profitability and cash generation improved on higher gold and silver prices, stronger operations, cost discipline and output at key mines; sees a positive long-term outlook.
• CONSUMER: Evolution (EVO SS) will buy back EUR 2bln of shares to optimise its capital structure and reduce share capital; the company also entered a EUR 300mln revolving credit facility to maintain financial flexibility. Stellantis (STLAM IM) launched its small, affordable E-Car project, with the first vehicles expected to roll off the production line in 2028. Volvo (VOLVB SS) reached a CARB settlement without admission of liability, agreeing to payments and emission-reduction spending totalling USD 196.5mln; said it will negatively impact Q2 operating income. Currys (CURY LN) forecast FY adj. pretax profit of about GBP 191mln (prev. saw 180-190mln); it said underlying sales in its UK and Ireland business rose 3%.
• FINANCIALS: Lloyds (LLOY LN) is preparing a US infrastructure investing push focused on sectors including data centres and green energy; the expansion would form part of the bank’s corporate and institutional business strategy and include lending to US companies and UK clients with US operations. Standard Chartered (STAN LN) said it aims to cut corporate function roles by roughly 15% by 2030, while targeting RoTE above 15% in 2028 and about 18% in 2030. It also said shareholders and noteholders accepted its non-binding offer to acquire Zodia Custody.
• HEALTHCARE: The Trump administration is adding more than 600 generic drugs to the DTC consumer prescription platform TrumpRx. President Trump said the site will incorporate tools linking patients to lower-priced local pharmacies or home delivery, in partnership with Mark Cuban’s Cost Plus Drug, Amazon Pharmacy (AMZN) and GoodRx. Sanofi (SAN FP) said efdoralprin alfa met its Phase 2 primary endpoint in AATD, with dosing every three weeks producing mean fAAT trough-level increases more than three times higher than weekly plasma-derived protein therapy.
• NOTABLE BROKER UPDATES: ams-OSRAM (AMS SW) upgraded at JPMorgan. Adecco (ADEN SW) downgraded at UBS; Barratt Redrow (BDRW LN) downgraded at Barclays; Bellway (BWY LN) downgraded at Barclays; Gerresheimer (GXI GY) downgraded at Jefferies.

DAY AHEAD:

• EVENTS: US President Trump will sign executive orders at 16:30EDT/21:30BST. EU officials will meet to finalise legislation for the bloc’s US trade deal. Russia President Putin will travel to Beijing for talks with China President Xi. Japanese PM Takaichi and South Korean Lee will meet, as the sides seek stronger economic ties amid uncertainty from the Iran war and shifting US-China dynamics. Alphabet (GOOG) Google I/O developer conference takes place between 19-20th May.
• DATA: In Europe, the Eurozone trade balance (prev. EUR 11.5bln) is due. In North America, the weekly US ADP employment change (prev. 33K) and pending home sales (prev. 1.5% M/M; prev. -1.1% Y/Y) are due. Canada’s April CPI is seen rising +0.6% M/M (prev. 0.9%), and the annual rate seen at 3.1% Y/Y (from 2.4%); core CPI exp. at 0.3% M/M (prev. 0.2%) and annual core CPI seen at 2.6% Y/Y (prev. 2.5%).
• SPEAKERS: Fed Governor Waller (voter, dove) will participate on a panel. Afterhours, Fed’s Paulson (2026 voter) will give a keynote address at an Atlanta Fed conference. BoE’s Breeden (dovish) delivers a speech on the future of money (text expected). ECB chief economist Lane (dovish) will speak on a policy panel. Norges Bank’s Bech-Moen speaks on monetary policy and the Norwegian economy. Riksbank’s Bunge speaks on AI and monetary policy.
• SUPPLY: Germany auctions EUR 5bln of 2031 Bobls. UK sells GBP 1.25bln of 2031 linkers.
• ENERGY: After the close, API weekly energy inventories will be published. WTI June 2026 futures expire.
• EARNINGS: Notable corporate earnings reports due to be released today include: Home Depot (HD), Keysight Technologies (KEYS), Toll Brothers (TOL).