EUROPEAN OPEN: US plans tariffs on some drugmakers; US to overhaul US steel & aluminium tariffs; RI FP completes disposal to Trinchero; EL-PUIG SM advance towards mostly stock tie-up; STLAM IM explores Canada EV project with Leapmotor

• EUROPEAN OPEN: European equities follow the tone seen in APAC trading, and opened sharply lower after President Trump’s address largely repeated recent messaging on the Middle East, offering little fresh clarity on a path to de-escalation. He said US-Israeli objectives were nearing completion and that the war could last another 2-3 weeks, framing the conflict as an investment in Americans’ future while again threatening Iran. However, he gave no clear details on an exit strategy, the fate of the White House’s 15-point peace plan, the role of arriving US troops, or the reopening of the Strait of Hormuz, saying only that the “Strait will open up naturally”. Trump signalled the possibility of further US military strikes, reviving concerns over Middle East supply disruption. A Bloomberg analysis says that, five weeks into the war, US stocks have settled into a pattern of early-week gains followed by midweek drift and sharper falls on Thursdays and Fridays; similar moves have also appeared in European and EM stocks. In commodities, Trump’s threats have dampened hopes of a near-term end to the conflict; Brent crude climbed above USD 108/bbl before easing slightly below that level. Treasuries fell as firmer oil prices fuelled inflation concerns, while the USD advanced against other G10 FX, and Bitcoin fell below USD 66,300. Gold reversed an earlier gain after Trump’s speech offered little clarity on how the war might end; bullion entered the European day around USD 4,635/oz after trading above USD 4,800/oz earlier on Wednesday. Industrial metals also fell after Trump repeated that the US could strike Iran “extremely hard” and target its power plants if talks fail. On trade, the WSJ reported Trump is expected to overhaul US steel and aluminium tariffs, with finished goods made from imported metals potentially facing a 25% duty, while the administration is also preparing tariffs on drugmakers, possibly from Thursday, that have not agreed to guarantee low US prices. In the UK, reports said petrol and diesel prices rose at a record pace in March as the Iran war lifted fuel costs, adding to pressure on PM Starmer. In data, Swiss CPI rose +0.2% M/M in March (exp. 0.5%, prev. 0.6%), with the annual rate at 0.3% Y/Y (exp. 0.6%, prev. 0.1%); analysts said that the data shows that the Middle East conflict is for now lifting prices through the energy and related products channels only, with no overt signs of second-round effects just yet. Meanwhile, the French budget deficit widened in February to EUR 32.1bln from 9.7bln.
• STOCK SPECIFICS: In healthcare, the Trump administration is reportedly preparing tariffs of between 100-200%, possibly from Thursday, on drugmakers who have not offered low US price guarantees. AstraZeneca (AZN LN) said Imfinzi plus Imjudo with lenvatinib and TACE significantly and clinically meaningfully improved progression-free survival in embolisation-eligible unresectable liver cancer in the Phase III EMERALD-3 trial. In consumer sectors, Stellantis (STLAM IM) is discussing options with Zhejiang Leapmotor Technology to build EVs in Canada; talks are early-stage and any deal would be the first major Chinese auto investment since January tariff easing. Estee Lauder (EL) and Puig (PUIG SM) are advancing talks on a mostly stock combination that could be announced within weeks, Bloomberg said, creating one of the world’s largest luxury beauty companies. Pernod Ricard (RI FP) confirmed completing the disposal of Mumm sparkling wine activities (excluding champagne), in the US to Trinchero Family Wine and Spirits. Accor (AC FP) signed a memorandum of understanding to sell its stake in Essendi and said it will use the proceeds to fund share buybacks of up to EUR 500mln. In materials, the Trump administration is expected to overhaul US steel and aluminium tariffs, with a possible proclamation this week imposing 25% duties on finished products made with imported metals. In notable broker updates, Kering (KER FP) was upgraded at Rothschild; Technip Energies (TE FP) was upgraded at Rothschild; Norsk Hydro (NHY NO) was upgraded at Goldman Sachs; Deutsche Bank (DBK GY) was upgraded at Bankhaus Metzler; Fortum (FORTUM FH) was upgraded at Citi; AkzoNobel (AKZA NA) was downgraded at Goldman Sachs; Nestle (NESN SW) was downgraded at Morgan Stanley; Elisa (ELISA FH) was downgraded at SEB. Going ex-div today: Barratt Redrow (BTRW LN), IMI (IMI LN), Smiths (SMIN LN).

TODAY’S AGENDA:

• DAY AHEAD: In Europe, the BoE’s monthly decision maker panel data for March; the ECB will publish its economic bulletin. Stateside, weekly initial jobless claims (212k expected from 210k) and continuing claims (1.84mln expected from 1.819mln), Revelio’s public labour statistics report, Challenger job cuts (90k expected in March from 48.3k) international trade data (deficit seen widening to 59.2bln in March from 54.5bln) are due. Canadian trade stats are also due. On today’s speakers’ slate: Fed’s Logan (2026 voter, hawk; text and Q&A are expected) will give remarks at a Dallas Fed event; Fed’s Bowman (voter, dove; the event is closed to the public and press) will give a keynote speech at a Dallas Fed event. In fixed income, the US Treasury will announce sizes for next week’s 3yr, 10yr and 30yr offerings; France will sell EUR 10.5-12.5bln of 2034, 2035, 2044, and 2048 debt. In energy, EIA weekly natgas stocks data, and the Baker Hughes weekly rig count will be published.