- Qatar is considering giving a $400 million jumbo jet to the U.S. for use as Air Force One, showcasing its diplomatic influence.
- Qatar has invested billions in U.S. institutions and increased lobbying efforts to sway policy in its favor.
- Qatar’s influence strategy stems from its location and critical air base hosting U.S. Central Command.
- New positions in: FIS (3.49 mln shares), SGI (703K), ICLR (405K), ELV (246K)
- Increased positions in: QSR (to 3.89 mln shares from 2.9 mln shares), GOOG (to 2.08 mln from 1.43 mln), WCC (to 2.01 mln from 1.44 mln), EXP (to 910K from 638K)
- Maintained positions in: GDS (4.25 mln shares), CRH (2.69 mln shares), DG (2.1 mln shares), FERG (1.13 mln shares)
- Closed positions in: SNRE (from 2.34 mln shares), HUM (from 346K), GPC (from 315K)
- Decreased positions in: CLVT (to 10.8 mln shares from 36.3 mln shares), LBTYK (to 24.7 mln from 39.5 mln), VSAT (to 10.2 mln from 12.2 mln), SOLV (to 1.05 mln from 1.45 mln), WTW (to 1.5 mln from 1.8 mln)
- S&P 500: +0.2% YTD
- Dow Jones Industrial Average: -1.2% YTD
- Nasdaq Composite: -0.9% YTD
- S&P Midcap 400: -2.3% YTD
- Russell 2000: -6.6% YTD
- Weekly MBA Mortgage Applications Index 1.1%; Prior 11.0%
- Weekly EIA Crude Oil Inventories showed a build of 3.45 million barrels versus last week's draw of 1.11 million barrels
- 8:30 ET: April PPI (consensus 0.3%; prior -0.4%), Core PPI (consensus 0.3%; prior -0.1%), April Retail Sales (consensus 0.2%; prior 1.4%), Retail Sales ex-auto (consensus 0.5%; prior 0.5%), May Empire State Manufacturing (consensus 1.0; prior -8.1), May Philadelphia Fed (consensus -6.0; prior -26.4), weekly Initial Claims (consensus 226,000; prior 228,000), and Continuing Claims (prior 1.879 mln)
- 9:15 ET: April Industrial Production (consensus 0.3%; prior -0.3%) and Capacity Utilization (consensus 77.9%; prior 77.8%)
- 10:00 ET: May Business Inventories (consensus 0.2%; prior 0.2%) and May NAHB Housing Market Index (consensus 40; prior 40)
- 10:30 ET: Weekly natural gas inventories (prior +104 bcf)
- New positions in: BABA (3K)
- Increased positions in: FCX (to 558K from 279K), B (to 101K from 36K), LIN (to 445K from 420K), FTV (to 27K from 13K), ROK (to 16K from 6K), FLUT (to 5K from 3K), TXN (to 17K from 16K),
- Closed positions in: RYAAY (from 291K), ETN (from 82K), MRNA (from 35K), BILI (from 34K), ZH (from 21K), VMC (from 1K)
- Decreased positions in: SW (to 1.9 mln from 4.2 mln), DAL (to 2 mln from 3.4 mln), TSM (to 498K from 1.7 mln), CRH (to 1.1 mln from 2 mln), IONQ (to 494K from 1 mln), AMZN (to 17K from 155K), ADI (to 197K from 280K), GOLF (to 542K from 563K), MAR (to 2K from 10K), AEM (to 5K from 6K)
- This purchase, which also includes additional orders for Boeing's new 777-9, will support approximately 400,000 jobs in the U.S. and position the award-winning Middle Eastern airline for further international expansion.
- The order includes:
- 130 787 Dreamliners, the long-range, ultra-efficient widebody airplane family that has delivered a 25% fuel-use improvement compared to airplanes it replaces and superior comfort for passengers. Ten orders were previously booked as unidentified.
- 30 777-9s, the world's largest twin-engine airplane that is designed to set new standards in efficiency by reducing fuel use and emissions by 25% compared to the airplanes it replaces, while elevating the passenger flight experience.
- Options for an additional 50 787 and 777X airplanes.
- 130 787 Dreamliners, the long-range, ultra-efficient widebody airplane family that has delivered a 25% fuel-use improvement compared to airplanes it replaces and superior comfort for passengers. Ten orders were previously booked as unidentified.
VOW Universe Update
All,
Find below an update on VOW and PAH3 including:
- Update on the VOW3-VOW share class
- Updated VOW SOP & Stub value (as of Q1 2025)
- Updated PAH3 SOP (as of Q1 2025)
1/ VOW3-VOW share class
VOW3, the most liquid line is currently trading at a 2.1% discount to VOW. This is the tightest level ever and the spread has been trading there since the beginning of 2025.
The spread started to significantly tighten in Jun 2024 ahead of VOW’s MSCI exclusion (Aug 2024). The next reviews Euro Stoxx 50 are quarterly June 2025 (review announced Jun 2, effective Jun 16) and in semi-annual in September 2025 (annual review announced Sep 1, effective Sep 15).
VOW3 is currently one the bottom 5 components of the Euro Stoxx 50 by free float market cap, only after Kering, Stellantis, Pernod; and could potentially be excluded from the index in September if the underperformance continues.
If such a scenario were to materialise, this could have a significant impact on VOW3 price as well as the spread.
We believe a Long VOW GY / Short VOW3 GY position is attractive.
Some a reluctant to consider such a position due to liquidity but setting up this spread today, you would be short the most liquid line which is a much more comfortable position.
VOW3-VOW Share class profile since Jan 2023:
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2/ VOW SOP & Stub update
VOW is trading at a 47.6% discount to its NAV.
VOW is more of a stub than a holding play and we do not see it as attractive in current market conditions.
Updated VOW SOP (as of Q1 2025):
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VOW implied stub value:
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3/ PAH3 SOP update
PAH3 is trading at a 26.0% discount to its NAV (Q1 results released on May 14th).
PAH3 holding discount has tightened recently. Indeed, VOW has outperformed PAH3 but P901 has significantly underperformed PAH3 hence the holding discount tighter.
We do not see a trade on this holding for now even if a long holding could be used as an alternative to our suggested VOW share class trade.
Updated PAH3 SOP (as of Q1 2025):
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David Darmouni
Equity Sales
Makor Securities London Ltd. | Makor Group
E: ddarmouni@makorsecurities.com
O: +44 207 290 5777
W: www.makor-group.com
6th Floor, 30 Panton Street, London, SW1Y 4AJ
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