>>> Stoxx 600 Pre-Market Indications

  • Redcare Pharmacy NV (RDC TH) +5.3%
    • Redcare Pharmacy NV Prelim 2Q Revenue EU709M
  • Scout24 (G24 TH) +1.6%
    • Scout24 Rated New Overweight at Cantor; PT 135 euros
  • National Grid (NNGF TH) +1.4%
  • TotalEnergies (TOTB TH) +1.1%
  • ASM Intl (AVS TH) +1%
  • Enel (ENL TH) -0.6%
    • Enel Cut to Neutral at BNPP Exane; PT 8.40 euros
  • Mediobanca (ME9 TH) -0.6%
    • Monte Paschi to Start Mediobanca Bid After Final Approval (1)
  • Valeo (VSA2 TH) -1%
  • Stellantis (8TI TH) -1.1%
    • STELLANTIS COULD FACE €2.6B FINE OVER EU CO2 RULES: FIGARO
  • Brenntag (BNR TH) -1.3%
    • Brenntag Downgraded to Hold at Berenberg on Guidance Cut Risk

>>> What to look at today - 3rd of July 2025

Asian shares posted modest gains ahead of a US jobs report, with investors awaiting fresh data after recent prints signaled President Donald Trump’s trade war was hurting the US economy. The MSCI Asia Pacific Index inched up 0.2%. Equity-index futures for the US rose 0.1% after the S&P 500 closed at another record high Wednesday, helped by Trump’s announcement of a trade deal with Vietnam. Gold dipped 0.2%, its first retreat in four days. Treasuries inched up Thursday. Yields rose in the prior session following heavy selling in the UK, where concerns about Chancellor of the Exchequer Rachel Reeves’ future reignited questions over the nation’s fiscal position. In Japan, investors lapped up 30-year government bonds in an auction, indicating policymakers are having some success in quelling debt-market volatility. The cross-asset moves underscored cautious optimism as traders contend with pockets of uncertainty ahead of jobs data that will help identify the path ahead for interest rates. With stocks at a record high even after Trump ratcheted up trade tensions, investors are closely monitoring economic data before adding to their portfolios. On the Vietnam trade deal, Trump said that the Asian country had agreed to drop all levies on US imports. A 20% tariff will be placed on Vietnamese exports to the US, with a 40% levy on any goods deemed to be transshipped through the country. The deal risks provoking retaliatory steps from China, according to Bloomberg Economics. News of the trade deal boosted Nike Inc. and some exporter stocks amid hopes the accord will avert a potential supply-chain catastrophe.  The country set its daily reference rate for the dong at a record low Thursday. Meanwhile, UK Prime Minister Keir Starmer said Reeves will stay on as Chancellor of the Exchequer, as he sought to draw a line under speculation about her future that sparked the bond selloff.  Members of Starmer’s ruling Labour Party forced the government to scrap £5 billion ($6.8 billion) worth of cuts to welfare spending on Tuesday evening — making it even harder for Reeves to tame the government’s budget deficit.  The pound was little changed against the dollar in Asian trading. Like in the UK, investors have raised concerns in the US. House Republican leaders struggled to find the final votes to advance Trump’s massive tax and spending package. Attention will now turn to nonfarm payroll data due later Thursday — a day earlier than usual due to a holiday Friday. The data will show slower hiring and the highest unemployment rate since 2021 as the Trump administration’s trade and immigration policy shifts start to leave an imprint. Separate private payrolls data from ADP Research on Wednesday showed employment at US companies fell for the first time in over two years. Following that data, traders added to wagers on at least two rate reductions this year, with the first coming in September. If the upcoming jobs report shows further weakness, traders reckon the Fed could move up cuts. US After Hours DDOG +8.4% to join S&P 500; XPOF +21.9% as SEC concludes investigation without action; FC -7% on earnings.

Nikkei -0.08% Hang Seng -0.76% CSI +0.59% Shanghai +0.16% Shenzen +0.84%

Eur$ 1.1789 CNH 7.1624 CNY 7.1644 JPY 143.89 GBP 1.3629 CHF 0.7920 RUB 78.8741 TRY 39.9143 WTI$ 66.91 -0.80% Gold 3,352 -0.15% BTC 109,190 -0.02% ETH 2,586 -0.23%

S&P +0.05% Nasdaq +0.05% EuroStoxx +0.17 FTSE +0.29% Dax +0.24% SMI +0.15%

Macro :
- US Lifts Chip Design Software Curbs on China in Trade Deal (2)
- German Coalition Resists Calls for Broader Electricity-Tax Cut
- SEC’s Atkins Says Agency Will Look at Rules on Blank-Check Firms
- Scaramucci Says Crypto Treasury Company Trend ‘Will Fade’ Away
- *TRUMP ADMIN PAUSES $6B IN EDUCATION PROGRAMS: ABC
- China Willing to Deepen Trade Cooperation With EU, Wang Yi Says
- Higher US Tariffs Will Bring Recession: Markets Pulse Results
- North Korea Seen Sending Additional 30,000 Troops to Russia: NHK
- Trump Deal Threatens Beijing’s $77 Billion Surplus: China Today
- Poland Won’t Support EU’s New Climate Goal, Minister Says
- Bitcoin’s Original Appeal Fades With Volatility at 2-Year Low
- Retail Traders Beat S&P 500 in June Amid Profit-Taking: JPMorgan

Keep an eye on :
- ADP FP : Paris Air Traffic Control Strike to Cut Flights by 40% on July 4
- AEGN GA : Aegean Airlines Raises €250m From Bond Loan Issue
- AGK LN : ADIA, CVC Said Among Firms Eyeing Stake in $12 Billion Aggreko
- AIR FP : Brazil, France Agree on Helicopter Production in Brazilian State
- AF FP : Paris Air Traffic Control Strike to Cut Flights by 40% on July 4
- APAM NA : Aperam Confirms 2Q ‘25 Outlook
- APP US : *APPLOVIN SHARES FALL 2.4% AFTER DATADOG PICKED TO JOIN S&P 500
- ACHR US : Archer Aviation Rises After Starting Test Flights in Abu Dhabi
- T US : TPG Closes Purchase of at&T’s 70% Stake in DIRECTV
- AZA SS : +5% yesterday on M&A rumors - no comment from Co. - Citi comments this morning 400 PT (+20%) still attractive
- BAKKA NO : Bakkafrost Prelim 2Q Harvest 23,000 Metric Tons
- BARC LN : Barclays Revamps Asia-Pacific Investment Banking Leadership Team
- BNP FP : Asia Hedge Funds Win Bigger Allocations at Manager Bought by BNP
- BA US : Vietnam to Spend $8B on Boeing Aircraft in Trade Deal: Politico
- BORR US : Borr Drilling Offers 50m Shares -17% in After Hours
- BP/ LN : Trinidad Aims to Boost Gas Output With BP, Woodside Projects
- BG US : Bunge Closes Long-Delayed Viterra Deal to Form Crops Powerhouse
- 1211 HK : BYD Indefinitely Delays Planned Mexico Plant Amid Trade War
- COFA FP : Coface SA: Coface Finalises the Acquisition of Cedar Rose Group
- CBK GY : UniCredit Sent Letters to Germany on Commerzbank in June: SZ
- STZ US : Constellation Brands Guidance ‘Better Than Feared’: Street Wrap
- DTG GY : Class 8 Truck North American Orders Fall 32% YoY in June
- DDOG US : Datadog to Join S&P 500, Juniper to Exit After Takeover by HPE
- DD US : Private Equity Groups Vie to Buy $2b of DuPont Assets: FT
- EQT SS : EQT, Eurazeo Lead $700 Billion Wave of Firms Eying the UAE
- RF FP : EQT, Eurazeo Lead $700 Billion Wave of Firms Eying the UAE
- FCT IM :
- GLEN LN : Glencore Launches $1 Billion Buyback as Viterra Deal Closes
- GLJ GY : Grenke 2Q Leasing New Business Volume EU867.4M Vs. EU790.3M Y/y
- IMPN SW : Implenia Wins German, Swiss Contracts Worth About CHF200M
- INO US : Inovio Offers Shares, Warrants via Piper Sandler -16% in After Hours
- INLOT GA : PE Sub Holdings Submits Mandatory Offer for Intralot
- IVG IM : Class 8 Truck North American Orders Fall 32% YoY in June
- JNPR US : Datadog to Join S&P 500, Juniper to Exit After Takeover by HPE
- LCID US : Lucid 2Q Vehicles Delivered Misses Estimates
- MC FP : Armani Group FY24 Revenue €2.3B, -5% Y/Y at Constant FX
- MRVL US : Marvell Shares Drop on Report Microsoft Revising AI Chip Plans
- MAU FP : M&P to Buy Additional 21% Stake in Sinu-9 Block in Colombia
- META US : Leaked docs reveal Meta is training its chatbots to message you first, remember your chats, and keep you talking
- MOGO CN : Mogo Shares Climb 217% on $50 Million Bitcoin Treasury Plan
- MB IM : Monte Paschi to Kick Off Mediobanca Takeover Offer on July 14
- BMPS IM : Monte Paschi to Kick Off Mediobanca Takeover Offer on July 14
- 5401 JP : Nippon Steel Obtains Subordinated Term Loans of Up to ¥500b
- NDX1 GY : Nordex Wins Orders in UK, Belgium, France Totaling 135 MW
- NOVN SW : Novartis Phase III GCAptAIN Study Did Not Meet Primary Endpoint (Horton sickness / 7.6/100,000 over 50 in France)
- NOVOB DC : Novo Nordisk Estimates Cut at Intron on Weaker Ozempic Outlook
- ORCL US : Oracle, OpenAI Expand Stargate Deal for More US Data Centers
- PLX FP : Pluxee 3Q Revenue EU310M Vs. EU297M Y/y
- QIA GY : Qiagen Adjusts Conversion Price of Convertible Bonds Due 2031
- RDC GY : Redcare Pharmacy NV Prelim 2Q Revenue EU709M
- REIN LX : Reinet Approached by Athora for PIC Stake; Implied Price ~£5.7b
- RIO LN : Rio Tinto-Backed Aluminum Firm to Invest $1.1 Billion in Canada
- SIE GY : Siemens Says US Has Rescinded Chip Software Curbs on China
- SOFI US : Trump’s Tax Bill Set to Help SoFi, Other Private Student Lenders
- SXS LN : KKR Seeks to End UK Rough Patch With Strong Bid for Spectris
- STLA US : Stellantis Could Face €2.6B Fine Over CO2 Rules: Figaro (July 2)
- TSLA US : Tesla Rallies on Investors Betting EV Sales Have Bottomed (1)
- TKA GY : Thyssenkrupp Gains on Report That Germany Won’t Seek TKMS Stake
- TITC BB : Titan Appoints John Ioannou as New CFO From November 1
- TTE FP : TotalEnergies Invests in AES Renewables Assets in the Caribbean
- TTE FP : Mozambique President Urges Total LNG Restart Despite Risks
- 8TRA GY : Class 8 Truck North American Orders Fall 32% YoY in June
- TRIP US : Starboard Value Takes More Than 9% Stake in Tripadvisor, Sources Say -- WSJ
- UBER US : Canadian Uber Drivers Join Union, Seeking First Collective Deal
- UBER US : Uber-Backed Moove to Raise $1.2 Billion in Debt for Waymo Fleet
- UBI FP : Ex-Ubisoft Employees Convicted in Sexual Harassment Case: AFP (Not P Diddy)
- UCG IM : UniCredit Sent Letters to Germany on Commerzbank in June: SZ
- VEON US : Veon Raises $200m in Private Bond Placement
- WLN FP : Worldline Hires Auditor to Assess Risky Client Portfolio
- 1810 HK : Xiaomi CEO: Less Than 15% of YU7 Orders Switched From SU7
- XPOF US : *XPONENTIAL FITNESS: SEC CONCLUDED PROBE WITHOUT ACTION +8% in After HOurs

>>> Europe : Brokers Upgrades & Downgrades - 3rd of of July 2025

>>> Up
* Arkema Still Neutral at JPMorgan; PT 65 euros
* CES Energy Raised to Outperform at National Bank; PT C$10.50
* Citigroup PT Raised to $103 from $94 at Morgan Stanley
* FedEx Raised to Outperform at BNPP Exane; PT $270
* Goldman Sachs PT Raised to $680 from $592 at Morgan Stanley
* JPMorgan PT Raised to $296 from $240 at Morgan Stanley
* Marvell Technology Raised to Buy at SinoPac; PT $89
* UPS Raised to Neutral at BNPP Exane; PT $100

>>> Down
* Anglo American PT Cut to 1,900 pence at Berenberg
* BE Semiconductor Cut to Equal-Weight at Barclays; PT 125 euros
* Brenntag Cut to Hold at Berenberg; PT 55 euros
* Endesa Cut to Underperform at BNPP Exane; PT 25.50 euros
* Enel Cut to Neutral at BNPP Exane; PT 8.40 euros
* Entra Cut to Hold at Pareto Securities; PT 135 kroner
* Keller Cut to Hold at Deutsche Bank; PT 1,660 pence
* Kitron Cut to Hold at Norne Securities; PT 65 kroner
* Public Property Invest Cut to Hold at ABG; PT 26 kroner
* Rio Tinto Cut to Hold at Berenberg; PT 4,700 pence
* Rio Tinto ADRs Cut to Hold at Berenberg; PT $62

>>> Initiation
* Argenx ADRs Assumed Overweight at Morgan Stanley; PT $700
* Netcall Rated New Buy at Berenberg; PT 155 pence
* Scout24 Rated New Overweight at Cantor; PT 135 euros

>>> Call
* Brenntag Downgraded to Hold at Berenberg on Guidance Cut Risk
* Rio Tinto Cut at Berenberg, Miners Set for Further Volatility

>>> TradeGate Pre-Market Indications

DAX:
  • Brenntag (BNR TH) -1.3%
    • Brenntag Downgraded to Hold at Berenberg on Guidance Cut Risk
MDAX:
  • Redcare Pharmacy NV (RDC TH) +6.1%
    • Redcare Pharmacy NV Prelim 2Q Revenue EU709M
  • Nordex (NDX1 TH) +0.8%
    • Nordex Wins Orders in UK, Belgium, France Totaling 135 MW
  • Evotec (EVT TH) -0.6%
SDAX:
  • Grenke (GLJ TH) +4.2%
    • Grenke 2Q Leasing New Business Volume EU867.4M Vs. EU790.3M Y/y
  • SUSS MicroTec (SMHN TH) +1.1%
    • STMicro Upgraded at Oddo, Suess Underperforms on Downgrade (1)
  • PVA TePla (TPE TH) -0.9%
    • STMicro Upgraded at Oddo, Suess Underperforms on Downgrade (1)

>>> US After Hours Summary: DDOG +8.4% to join S&P 500; XPOF +21.9% as SEC concl

After Hours Summary: DDOG +8.4% to join S&P 500; XPOF +21.9% as SEC concludes investigation without action; FC -7% on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: FIZZ +1.4%

Companies trading higher in after hours in reaction to news: XPOF +21.9% (SEC concludes investigation without action), DDOG +8.4% (to join S&P 500), SLQT +4.4% (vice chairman Tom Grant passes away), MRCY +1.7% (selected by DoD for funding), EBS +1.5% (expands NARCANDirect), FRHC +1.2% (Chairman bought 6900 shares), MCHP +1% (Steve Sanghi to continue to serve as CEO), TGB +0.4% (files mixed securities shelf offering), LXFR +0.2% (completes divesture of Graphic Arts), EPD +0.2% (receives BIS letter re ethane), ERJ +0.2% (reports Q2 deliveries), T +0.1% (completes sale of remaining 70% stake in DIRECTV)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: FC -7%

Companies trading lower in after hours in reaction to news: INO -22% (stock offering), BORR -9.7% (CEO to beome Exec Chairman; also $100 mln stock offering), CLLS -6.1% (files for $200 mln mixed securities shelf offering), NXDT -3.2% (to cease reporting in Canada), AOSL -2.2% (reaches resolution with the US Commerce Dept), DFDV -1.2% (provides operational update), LCID -0.5% (reports Q2 deliveries), FDMT -0.5% (announces accelerated $FRONT-2 trial; reduces workforce by 25%), IART -0.2% (first patient enrolled in Acclarent AERA Pediatric Registry)

The Information : Microsoft Scales Back Ambitions for AI Chips to Overcome Delay

Microsoft Scales Back Ambitions for AI Chips to Overcome Delays

The Takeaway
• Microsoft will focus on less ambitious chip designs through 2028
• Decision follows delays in in-house chip development
• Microsoft wants to reduce reliance on Nvidia for AI computing

Microsoft is revising its roadmap for its internally developed artificial intelligence server chips and will focus on releasing less ambitious designs through 2028, hoping to overcome problems that have caused delays in development, according to two people with direct knowledge of the situation.

Microsoft hopes that by scaling back some of the designs and pushing out the schedule for other AI chips it is already working on, it can develop them more easily. The hope is that when these chips are released over the next three years, they will still remain competitive with Nvidia’s AI chips.


Microsoft executives told engineers in its silicon team about the new plans in a meeting last week. The decision comes after Microsoft had to push back the release of its latest-generation AI chip, Maia 200, to 2026 from 2025, as The Information previously reported.

Like both Google and Amazon, Microsoft designs its own chips meant to power AI services such as OpenAI’s ChatGPT in hopes of creating an alternative to Nvidia’s chips, which dominate the market. Nvidia tightly controls the prices and supply of its own chips.

Microsoft last year was Nvidia’s largest customer by revenue, according to multiple Nvidia employees, and spends billions of dollars a year buying Nvidia AI chips for its Azure cloud service.

Microsoft launched its first AI chip, dubbed Maia 100, in 2024 and immediately began working on three successors—codenamed Braga, Braga-R and Clea—due for release in 2025, 2026 and 2027, respectively. However, both Braga and Clea were based on entirely new designs, making their development especially challenging.

The Braga chip’s design was only completed in June, missing a year-end deadline by around six months. Braga’s delay raised concerns internally within Microsoft that the chips due in 2026 and 2027 also could be delayed, making them even less competitive with Nvidia’s chips by the time they were released, the people said.

As a result, Microsoft executives told engineers last week that the company is considering developing an intermediary chip for release in 2027 that will sit between Braga and Braga-R in terms of performance. This chip will likely be known as Maia 280 and is still largely based on Braga’s design. However, the Maia 280 consists of at least two Braga chips linked together so that they can work together as a single, more powerful chip.

A Microsoft spokesperson didn’t comment directly on the development of its Maia chips but said the company “remains committed” to developing in-house hardware based on its customers’ and its own computing needs while continuing to work with “close silicon partners.”

Microsoft executives believe the Maia 280 approach will still deliver between 20% and 30% better performance in terms of performance per watt compared to the chips that Nvidia will release in 2027, one of the people said. The new roadmap allows Microsoft’s chip engineers to release new chips in 2027 and 2028 without the need to redesign Braga from scratch to get performance gains. The company plans to ramp up production with each new chip generation and eventually make hundreds of thousands of AI chips a year, according to two people with direct knowledge of the matter.

Braga-R, which will now be publicly called Maia 400, is expected to enter mass production in 2028. Braga-R will connect the brains of two chips prior to their full assembly at the so-called die level, allowing for even faster performance once assembled into a single chip. Braga-R will also incorporate faster, high-bandwidth memory, the people said. The trade off is that there is a higher potential for manufacturing defects using the die-to-die method.

That’s a different approach than is used by chip makers like Nvidia, which link two finished chips to increase performance. The new approach to improve on Braga’s performance reflects an acknowledgment by Microsoft’s leaders that designing a new chip from scratch each year wasn’t feasible.

Although Braga-R’s design is still based on Braga, Microsoft plans to utilize a so-called chiplet architecture, which means dividing the chip up into smaller components and functions that can be manufactured separately by outside parties and later recombined, three people said.

The chiplet architecture helps reduce manufacturing defects by keeping the surface area of each chiplet smaller and lowers the likelihood of defects occurring during production.

It also allows Microsoft to save money because it can outsource portions of the chip’s design, several people involved in the project said. The tradeoff is that chiplet-based chips don’t perform as well as designing the same functions into a one single chip.

The release of Microsoft’s third-generation AI chip, Clea, has been pushed beyond 2028, and its future remains unclear. Clea was intended to be the first AI chip that would be competitive with Nvidia’s chips in terms of performance per watt.

Microsoft’s revised roadmap has negative implications for Marvell, a specialized chip designer that Microsoft hired to work on some of the chiplets in Braga-R, according to two people with direct knowledge of the matter. Marvell’s shares surged last year due to partnerships with major tech firms including Amazon, which relies on Marvell to help build their AI chips, and Marvell had anticipated revenue from Microsoft much sooner, the people said. However, its stock price has fallen this year amid delays in chip projects from its customers, a slowing global economy and trade tensions between the U.S. and other countries.

Not all of Microsoft’s chip projects are facing problems. The company released a central processing unit for servers called Cobalt in 2024 as an alternative to chips made by Intel and AMD. CPUs are easier to design than graphical processing units, the main component in AI chips, and other companies such as Amazon have had similar success with building in-house CPUs as opposed to GPUs. Cobalt is used both internally by Microsoft to power services such as its Teams communication software, and the chip also is available for use to Azure customers. Unlike Maia, Cobalt already is generating revenue for the company, according to multiple people with direct knowledge of the matter.

The design for Cobalt’s successor, codenamed Kingsgate, was completed around March and also will utilize a chiplet-based design and faster high-bandwidth memory, according to two of the people.