US Daily Equity Opening News - MSFT to report quarterly Azure sales; AVGO slips on outlook; HPE falls amid supply constraints; VRNS in take-private talks; Elliott urges DTEGY to reconsider TMUS merger; DEC to acquire Birch Resources for USD 1.8bln

DAY AHEAD:

• DATA: In Europe, final August services PMI final data are due: UK exp. 52.8, Eurozone exp. 51.7, Germany exp. 48.5, France exp. 48.4. Eurozone July PPI is expected to rise to 4.7% Y/Y (prev. 4.6%). In North America, the US July trade balance is seen widening to USD -90bln (prev. USD -73.3bln). ISM Services PMI headline is seen at 54.3 (prev. 54.1), with business activity at 59 (prev. 59.1), prices easing to 66 (prev. 70.3), new orders little changed at 57 (prev. 57.2), and employment rising back into expansion at 51.8 (prev. 47.4); the S&P final S&P Global services for the US is due before the ISM, and the headline is seen at 56.8 (prev. 54.6). Weekly initial jobless claims are seen little changed around 205K (prev. 203K), and continuing claims are expected to rise to 1,816K (prev. 1,778K). Q2 final nonfarm productivity is expected to rise 1.4% Q/Q (prev. 0.3%). Challenger job cuts are seen rising to 62.0K (from 33.429K). After today’s data, the Atlanta Fed will update its Q3 GDPNow tracking estimate (prev. 4.8%). Elsewhere, Canada trade balance is seen narrowing a touch to CAD 3.6bln (prev. CAD 3.86bln).
• CENTRAL BANKS: Fed’s Waller (voter, hawk) speaks on inflation and the economic outlook; Fed’s Hammack (2026 voter, hawk) delivers opening remarks; Fed’s Goolsbee (2027 voter, neutral) delivers closing remarks. Riksbank’s Thedeen and Hjelm both speak on the economic situation and current monetary policy.
• SUPPLY: France auctions EUR 11.5-13.5bln of OATs 2036, 2036, 2040 and 2046 debt. Spain sells EUR 5-6bln of 2029, 2031 and 2036 debt, alongside EUR 0.25-0.75bln of 2039 linkers. The UK sells GBP 900mln of 2049 linkers.
• ENERGY: EIA reports weekly natural gas stocks change (prev. +15bcf).
• EARNINGS: Notable corporates reporting today include: Ciena (CIEN), Lululemon (LULU), DocuSign (DOCU).

GEOPOLITICS:

• US-Iran - US President Trump said renewed strikes on Iran would likely be short-lived, while reiterating that Washington controls the Strait of Hormuz.
• US - US Treasury Secretary Bessent said Ukrainian strikes on Russian energy assets and the Iran conflict are driving a global energy shock and higher prices. He said attacks on Russian refining capacity were creating upward pressure, while Hormuz disruptions have also lifted oil and fuel costs.

MACRO:

• China PMI - China’s RatingDog Services PMI rose to 51.4 in August (exp. 50.6; prev. 50.4), while the Composite PMI increased to 52.1 (prev. 50.8). The services reading signalled faster expansion, with employment rising for a fourth month, and firms increasing prices for a third consecutive month.
• Japan - GPIF’s unusual August management committee meeting has fuelled speculation it may raise its 25% domestic bond allocation target, Bloomberg reports. The speculation comes as Japan’s 10yr bond yield has risen about 1ppt since early March to over 3%, increasing expectations that the pension fund could review allocations and potentially ease upward pressure on yields. Separately, Japan’s 30yr bond auction overnight drew stronger demand, with a bid-to-cover of 3.79x (vs a prev. 3.86x, and a 12-month average of 3.52x), though the auction tail widened to 0.28 (from 0.21).
• ECB - German Chancellor Merz will meet ECB officials in Berlin next week ahead of the central bank’s two-day policy meeting, Bloomberg reports. The article notes that the gathering comes amid speculation over President Christine Lagarde’s future, and whether Germany may nominate Bundesbank President Joachim Nagel as her successor.

INDEX:

• FTSE 100 - EasyJet (EZJ LN) and Ithaca Energy (ITH LN) will join the FTSE 100, replacing Entain (ENT LN) and Persimmon (PSN LN); changes are effective from the 21st September.

TECH:

• Hyperscalers - US Treasury Secretary Bessent criticised AI hyperscalers for failing to explain the benefits of data centres and engage communities. He said AI investment could drive a productivity boom and become disinflationary within six months. He also warned that China remains close behind the US in its AI capabilities.
• Microsoft (MSFT) - Microsoft will begin disclosing quarterly Azure sales, reversing years of limited transparency after Wall Street criticism over reporting on its key cloud growth engine. It will now shift to two FY27 reporting segments, Agents and Infra and Devices and Consumer, with revised investor metrics and restated historical figures. FY27 Q1 Agents and Infra revenue is expected at USD 75.15-75.75bln, Azure growth at 44-45% in constant FX, and Devices and Consumer revenue at USD 14.7-15.2bln. Affirms overall Q1 revenue outlook of USD 89.85-90.95bln. Separately, Microsoft CEO Satya Nadella sold 86.5K shares of stock for a total transaction of USD 43.4mln.
• Micron (MU) - Micron plans to roughly double HBM production capacity by year-end to about 100K wafers per month, ETNews reports. The company could add up to 60K wafers monthly, while HBM4 12-layer products may rise to as much as 50% of output. Micron began mass-producing HBM4 12-layer products in Q2 for Nvidia’s (NVDA) Vera Rubin accelerators.
• Broadcom (AVGO) - Shares fell around 1.5% in extended US trading after Q4 revenue and margin outlooks came in below expectations, outweighing stronger quarterly results and a raised longer-term AI revenue forecast. Q3 adj. EPS 3.32 (exp. 3.24), Q3 revenue USD 29.6bln (exp. 29.43bln). AI semiconductor revenue +221% Y/Y and +54% Q/Q to USD 16.7bln, driven by strong demand for custom AI accelerators and networking. Execs said customer demand remains very strong, with visibility into additional AI infrastructure deployments through FY28 and sufficient supply secured to support the higher outlook. Sees Q4 revenue approximately USD 34.8bln (exp. 35.03bln), sees Q4 adj. EBITDA margin approximately 66% (exp. 66.5%), sees Q4 AI revenue +236% Y/Y at USD 21.7bln, and sees Q4 CapEx of USD 1.4bln. Raises FY26 AI revenue view to USD 58bln (prev. saw 56bln), sees FY27 AI revenue USD 115bln, and sees FY28 AI semiconductor revenue approximately USD 230bln. It also plans to begin deploying its Singapore substrate fab in FY27 to address supply bottlenecks.
• Hewlett Packard Enterprise (HPE) - HPE shares fell over 5% in extended trading, despite beating quarterly expectations and raising its forecasts, as persistent supply constraints, particularly in memory and other components, weighed. Q3 adj. EPS 1.11 (exp. 0.94), Q3 revenue USD 12.2bln (exp. 11.99bln). with AI demand drove record revenue, orders and profitability. Execs said AI is becoming a multi-year growth driver, and demand is far outstripping supply, with memory the main bottleneck, followed by NAND, CPUs and drives. It also expanded its Oracle (ORCL) collaboration to deploy Juniper Networking across Oracle AI data centres and issued Oracle warrants to purchase HPE shares. Sees Q4 adj. EPS between 1.20-1.30 (exp. 1.07), Q4 revenue between USD 13.9-14.8bln (exp. 13.04bln). Raises its year-end AI orders target to between USD 2.5-3.0bln, and disclosed a USD 3.5bln hyperscaler inferencing deal awarded after Q3. Raises FY26 adj. EPS view to between 3.75-3.85 (exp. 3.45; prev. saw 3.35-3.45) and raises FY26 revenue growth to between 34%-37% (prev. saw 29%-33%). For FY27, it raises its revenue growth view to between 13-17% (prev. saw 8-12%), sees FY27 adj. EPS growth between 16-20% (prev. saw 12-16%), with an operating margin between 14-15% and free cash flow of at least USD 5.0bln.
• Snowflake (SNOW) - Snowflake surged 24% in extended trading after a Q2 beat, and Q3 product revenue guidance topped forecasts, while it also raised its FY product revenue and margin outlook, supported by momentum in its AI coding tools. Q2 adj. EPS 0.62 (exp. 0.45), Q2 revenue USD 1.55bln (exp. 1.48bln). Q2 product revenue +37% Y/Y at USD 1.49bln. CoCo AI coding agent reached 9,100 accounts, up by more than 2,000 during the quarter. Execs said AI is creating a flywheel across adoption, user growth, new workloads and platform consumption, with CoWork and CoCo driving broader enterprise AI usage. Sees Q3 product revenue between USD 1.588-1.593bln (exp. 1.50bln); it also raises its FY27 product revenue to USD 6.07bln (prev. saw 5.84bln), and lifted its FY27 adj. operating margin view to 14.5% (prev. saw 13.5%).
• NetApp (NTAP) - Q1 adj. EPS 2.58 (exp. 2.12), Q1 revenue USD 2.03bln (exp. 1.84bln). Billings +36% Y/Y to USD 2.06bln. CEO said momentum was supported by existing customers and new wins, as organisations adopt the NetApp Platform for AI and hybrid multi-cloud initiatives. Sees Q2 adj. EPS between 2.54-2.64 (exp. 2.16), sees Q2 revenue between USD 2.025-2.175bln (exp. 1.85bln). Raises FY27 adj. EPS view to between 9.73-10.03 (exp. 9.03; prev. saw 8.70-8.90), raises FY27 revenue view to between USD 7.975-8.225bln (exp. 7.54bln; prev. saw 7.325-7.575bln) and raises FY27 adj. operating margin view to between 30.3-31.3% (prev. saw 29.1-30.1%).
• C3.ai (AI) - Q1 adj. EPS -0.20 (exp. -0.26), Q1 revenue USD 52.4mln (exp. 52.1mln). Free cash flow USD 2.1mln, adj. operating loss narrowed 33% Q/Q to USD 36.2mln, bookings +73% Q/Q, cash balance increased to USD 651.1mln. CEO said the turnaround is progressing, with revenue stabilised, positive free cash flow, tighter expense control and improved operating discipline. Sees Q2 revenue between USD 51-55mln (exp. 56.6mln). Backs FY27 revenue view between USD 210-240mln (exp. 224.3mln).
• ByteDance - TikTok withdrew from a 15th September House Select Committee on China roundtable, citing unrelated child-safety litigation, according to the Committee Chair John Moolenaar. Moolenaar said TikTok was avoiding broader scrutiny of its child safety practices, undermining its credibility on national security questions about its algorithm, data access and Chinese Communist Party influence. Separately, ByteDance secured a USD 29.6bln loan, up from an initial USD 20bln target after strong bank demand, Bloomberg reports.
• Anthropic - US Commerce Secretary Lutnick said Anthropic has repaired relations with the Trump administration after earlier disputes over security. Reports state that it remains unclear whether tensions with the Pentagon have also eased.
• Varonis Systems (VRNS) - Thoma Bravo-backed Proofpoint is in talks to acquire Varonis Systems; no final agreement has been reached and another bidder could emerge, Bloomberg said. Varonis, valued at around USD 5.4bln after a recent share-price rise, has been considering a sale after attracting takeover interest. If the deal materialises, it would be one of the largest tech take-private deals since the steep selloff in software stocks earlier this year.

COMMUNICATIONS:

• Deutsche Telekom (DTEGY), T-Mobile US (TMUS) - Elliott Investment Management has built an undisclosed stake in Deutsche Telekom, Reuters reports. Elliott has indicated Deutsche Telekom should abandon a potential merger with T-Mobile US and pursue alternatives, including larger share buybacks. (Deutsche Telekom owns about 54% of T-Mobile US).
• VodafoneThree (VOD) - VodafoneThree (VOD LN) will launch its first UK TV service next month, offering streaming services including Netflix (NFLX) and HBO Max (WBD) as it targets over 4.3mln broadband customers by 2034, FT reports. It will not produce its own content; it also plans a premium “SuperMobile” service with faster download speeds.
• Meta Platforms (META) - Meta released Muse Spark 1.3, its most powerful AI model, with improved coding, agentic capabilities, efficiency and safety. Chief AI Officer Wang said it is competitive with Anthropic’s Claude Fable 5.1, and better than OpenAI’s GPT-5.6 Sol for coding. Meta has not decided whether to release the model’s weights.

CONSUMER CYCLICAL:

• PVH Corp. (PVH) - PVH beat Q2 earnings expectations, despite a GAAP net loss driven by a USD 439mln goodwill impairment, sending shares up 3.6% after hours. Q2 adj. EPS 3.70 (exp. 3.08), Q2 revenue USD 2.097bln (exp. 2.09bln). Digital commerce revenue +4% Y/Y, total DTC revenue was approximately flat. Gross margin increased to 63.0% (from 57.7%), including an approximately 510bps benefit from tariff refunds; Q2 also included USD 107mln of tariff refunds and a USD 439mln pre-tax non-cash goodwill impairment charge. Execs said profitability exceeded expectations, with improving DTC momentum across the Americas and APAC and better performance in EMEA. It expects to repurchase at least USD 300mln of shares in FY26. Sees Q3 adj. EPS between 2.50-2.65 (exp. 2.99), sees Q3 revenue down low-single digits Y/Y. Backs its FY26 adj. EPS view between 11.80-12.10 (exp. 12.08), and sees FY26 revenue approximately flat Y/Y; also backs its FY26 adj. operating margin view at approximately 8.8%.
• Five Below (FIVE) - Q2 adj. EPS 1.68 (exp. 1.41), Q2 revenue USD 1.26bln (exp. 1.22bln). Q2 comps +14.1% Y/Y, extending the company’s run of double-digit comp sales growth to five consecutive quarters. CEO said results reflected continued momentum from Five Below’s customer strategy, with trend-right product assortments, value and improved store execution supporting growth. Announces a new USD 600mln share repurchase programme, replacing the remaining capacity under the prior authorisation. Sees Q3 EPS between 1.01-1.13 (exp. 0.87), Q3 revenue between USD 1.21-1.23bln (exp. 1.15bln), and Q3 comps +8-10% Y/Y. Raises FY26 adj. EPS view to between 9.83-10.31 (exp. 9.26; prev. saw 8.65-9.05), raises FY26 revenue to between USD 5.63-5.71bln (exp. 5.54bln; prev. saw 5.40-5.48bln), raises FY26 comp sales growth view to between 10-12% (prev. saw 6%-8%), and raises FY26 gross CapEx expectation to between USD 250-260mln (prev. saw 230-250mln).
• Petco (WOOF) - Q2 EPS 0.13 (exp. 0.07), Q2 revenue USD 1.50bln (exp. 1.49bln). Adj. EBITDA margin 8.2% (exp. 7.4%), or 7.7% ex-tariff benefit; comp sales were positive for a second consecutive quarter, and consumables returned to growth. CEO said the Reach for the Sky strategy is gaining traction, and reiterated confidence in sustainable long-term growth. CFO said it voluntarily prepaid an additional USD 75mln of debt after Q2, bringing total prepayments to USD 170mln over the past nine months. Sees Q3 revenue growth between 0.4%-1.0% Y/Y from USD 1.46bln last year (exp. 1.48bln). Maintains FY26 revenue between flat and +1.5% Y/Y from USD 5.96bln in FY25 (exp. 6.0bln), maintains FY26 adj. EBITDA between USD 415-430mln, net interest expense USD 122mln and CapEx USD 140mln.
• Delivery Hero (DELHY), Uber (UBER) - Delivery Hero recommended shareholders accept Uber’s EUR 41.50/share takeover offer.

CONSUMER DEFENSIVE:

• Costco (COST) - Costco August comparable sales rose +8.4% (prev. 8.9%), with US +9.0% (prev. +10.3%), Canada +4.0% (prev. +4.2%) and Other International +9.5% (prev. +6.0%). Ex-gasoline and FX, total comparable sales rose +5.4% (prev. 6.6%), while digitally-enabled sales increased +17.9% (prev. 17.7%).
• Kroger (KR) - Kroger named Mark Ibbotson EVP and Chief Store Operations Officer effective 14th September. Ibbotson previously held senior roles at Walmart (WMT), Asda and Sainsbury’s, including EVP of Central Operations and Realty at Walmart US.
• Hershey (HSY) - Hershey named Dave Hulays CFO, effective 2nd September, succeeding Steve Voskuil. Hulays has nearly 30 years of finance experience across Hershey and Procter & Gamble (PG). Voskuil plans to retire in early 2027 and will become SVP, Strategic Projects.
• Nestle (NSRGY) - Nestle will invest USD 393mln in its nutrition and health division in Brazil through 2028; the investment will include construction of a new infant formula plant.

FINANCIALS:

• JPMorgan (JPM) - JPMorgan curtailed financing to Jane Street after the trading firm expanded into US Treasury market-making, putting it in direct competition with the bank, FT reports. The reduction represented about 5% of Jane Street’s fixed income financing, and had no material 2025 revenue impact. JPMorgan has also reduced some trading services for Citadel Securities, the report notes.
• PayPal (PYPL) - PayPal said its India restructuring affected 220 employees, about 4% of its local workforce, India Today reports. Earlier reports had cited around 600 job cuts. The reductions span teams including technology, engineering, operations, payments and finance, with some employees saying they received no prior notice before being informed on a call.
• Charles Schwab (SCHW) - Charles Schwab raised the minimum assets required for some tax-aware long-short separately managed accounts to USD 10mln from USD 1mln, and will stop enrolling new clients or funds in portfolio-margin accounts from 16th September. Existing clients are unaffected.
• Jefferies (JEF) - A Jefferies unit won a worldwide freezing order against Radiant World, founder Pinkesh Nahar, Sapphire Minmetals and chairman Rakesh Sethi, Bloomberg reports.

MATERIALS:

• Brazil Critical Minerals - Brazil’s Congress approved a critical minerals bill giving the government greater scrutiny over mining deals. The measure creates a council able to approve ownership changes, offers BRL 5bln in tax credits for domestic processing, and establishes a BRL 2bln mining guarantee fund. The bill now goes to President Lula.

ENERGY:

• Russia-China - Chinese refiners are paying premiums above USD 10/bbl for November-loading Russian ESPO crude, roughly double the level a week earlier, according to Bloomberg. Demand has risen as Iranian supply dries up, Persian Gulf shipments remain disrupted and Chinese refining margins improve.
• Diversified Energy (DEC) - Diversified Energy agreed to acquire Elliott-backed Birch Resources for about USD 1.8bln. The deal is expected to increase production by about 35%, and adj. EBITDA by roughly 55%. Financing includes about USD 1.5bln of asset-backed securities, alongside its revolving credit facility.
• Shell (SHEL), BP (BP) - Shell has agreed to acquire from a 50% stake in the Tupinamba exploration block offshore Brazil from BP, and a 30% stake in five Gulf of America leases containing the Conifer exploration prospect. Elsewhere, BP said company secretary Mathews will step down and move into a special adviser role.

INDUSTRIALS:

• Argan (AGX) - Q2 EPS 3.76 (exp. 2.64), Q2 revenue USD 383.98mln (exp. 300.5mln). Power segment revenue +53% Y/Y to USD 301mln with a 22% gross margin, while final completion was achieved after quarter-end on the remaining Midwest Solar and Battery project. In Industrial, construction of a new fabrication facility remains on track for completion next quarter and is intended to support increased vessel demand from data centres. In Teledata, Argan completed the acquisition of ValCor Communications, expanding its geographic footprint and customer base across defence, aerospace and technology clients.

HEALTHCARE:

• Hutchmed (0013 HK), GSK (GSK) - Hutchmed granted GSK (GSK LN) exclusive rights outside Mainland China, Hong Kong, Macau and Taiwan to develop and commercialise HMPL-A830; GSK will pay USD 110mln upfront, with total potential development, regulatory and commercial milestone payments of up to USD 1.295bln.