FT : Trump threatened to stop weapons for Ukraine unless Europe joined Hormuz co

Trump threatened to stop weapons for Ukraine unless Europe joined Hormuz coalition
Nato’s top official urged key alliance members to offer help to US to reopen key waterway

Donald Trump threatened to stop supplying weapons for Ukraine in order to pressure European allies to join a “coalition of the willing” to reopen the Strait of Hormuz, according to people briefed on the discussions.

The strait has been in effect closed by Iran after the US and Israel attacked the Islamic republic in late February, choking a route through which a fifth of the world’s oil typically passes.

The US president demanded Nato navies help him reopen the narrow waterway last month, but was rebuffed by European capitals which said it would be impossible while the conflict was ongoing, with several also pointing out that this was “not our war”. 

Three officials familiar with the discussions said that Trump responded by threatening to stop supplies to Purl, Nato’s weapons procurement initiative for Ukraine funded by European countries.

As a result, and at the urging of Nato secretary-general Mark Rutte, a group of countries including key alliance members France, Germany and the UK issued a hastily agreed statement on March 19 which said: “We express our readiness to contribute to appropriate efforts to ensure safe passage through the Strait [of Hormuz].”

One of the officials briefed on the discussions said: “It was Rutte who insisted on the joint statement because Trump had threatened to withdraw from Purl and from Ukraine in general.

“The statement was then quickly put together, and other countries joined in afterwards because there was not enough time to invite everyone to sign up straight away.”

Rutte was involved in multiple calls with Trump and US secretary of state Marco Rubio in the two days before the statement was issued, two officials said.

Another official said that Rutte, in a call with France, Germany and the UK, explained that Trump was “rather hysterical” at the Europeans’ refusal to help protect the Strait of Hormuz.

British officials insisted that the UK and the US were discussing on a “military to military basis” options for securing the strait before March 19, but did not deny that Washington had threatened to withdraw support for Ukraine if Nato countries did not step up.

Deputy White House press secretary Anna Kelly said: “President Trump has made his disappointment with Nato and other allies clear, and as the president emphasised, ‘the United States will remember’.”

Trump has repeatedly voiced his disappointment with European allies for not doing more to assist the US war against Iran, while casting the conflict in Ukraine as a problem for Europe.

“We’re there to protect Nato, to protect them from Russia. But they’re not there to protect us. It’s ridiculous,” he said during a cabinet meeting last week.

Trump told Reuters that he planned to state in an evening address to the American public on Wednesday evening that he would “absolutely” consider withdrawing from Nato. 

A Nato official said the alliance did not comment on the content of Rutte’s calls with other leaders, and directed the FT to a public statement made by him on March 19.

In response to a question about Trump’s irritation at Nato allies over the Strait of Hormuz, Rutte said: “I am confident that allies, as always, will do everything in support of our shared interests.”

More countries have signed the joint statement since it was released on March 19.

UK Prime Minister Sir Keir Starmer on Wednesday said that he would host talks this week between the 35 signatories on forming a coalition to reopen the Strait of Hormuz “after the fighting has stopped”.

US-Israeli operations against Iran have intensified global competition for Pac-3 interceptor missiles fired by Patriot air defence systems, and used by Gulf nations to defend against Iranian attacks. The interceptors are also a vital part of Ukraine’s defence against Russian missiles.

Rubio said on Friday that US military supplies to Ukraine through the Purl mechanism have not been impacted by the war in the Middle East. “Nothing yet has been diverted,” he added. 

But Rubio did not rule out that the US might in the future seek to reroute weapons earmarked for Ukraine to replenish American stockpiles expended in the war against Iran. 

“If we need something for America and it’s American, we’re going to keep it for America first,” he said. 

>>> Options Term Structure : ASML, Deutsche Telekom, TotalEnergies, UniCredit

  • Biggest increases in one-year vs three-month IV spread:
    • Munich Re term structure up 2 points to -0.1, in the 60th percentile; stock rose 3.1% w/w (RSI: 56); skew in the 85th percentile
    • BASF term structure up 2 points to -1.8, in the 36th percentile; stock rose 1.8% w/w (RSI: 58); skew in the 43rd percentile
    • UniCredit term structure up 1.9 points to -4.6, in the 8th percentile; stock rose 3% w/w (RSI: 48); skew in the 95th percentile
    • Deutsche Bank term structure up 1.7 points to -2.8, in the 12th percentile; stock rose 2.2% w/w (RSI: 47); skew in the 59th percentile
    • Intesa Sanpaolo term structure up 1.6 points to -3.4, in the 10th percentile; stock rose 4.3% w/w (RSI: 54); skew in the 85th percentile
  • Biggest decreases in one-year vs three-month IV spread:
    • ASML term structure down 1 points to -1.8, in the 22nd percentile; stock fell 2% w/w (RSI: 52); skew in the 86th percentile
    • Deutsche Telekom term structure down 0.7 points to -1.4, in the 18th percentile; stock fell 1.5% w/w (RSI: 47); skew in the 94th percentile
    • Wolters Kluwer term structure down 0.6 points to -3.4, in the 20th percentile; stock rose 3.7% w/w (RSI: 47); skew in the 97th percentile
    • TotalEnergies term structure down 0.5 points to -3.3, in the 6th percentile; stock rose 2% w/w (RSI: 62); skew in the 8th percentile
    • Adyen term structure down 0.4 points to -2.3, in the 28th percentile; stock fell 4.7% w/w (RSI: 37); skew in the 70th percentile

FT : Feud between Two Sigma founders continues to plague fund

Feud between Two Sigma founders continues to plague fund
Co-chief appointed to quell dispute quietly resigned last month citing ‘ongoing governance challenges’

The years-long feud between the founders of quant hedge fund giant Two Sigma deepened after one of its new co-chief executives appointed to quell the turmoil quietly left last month.

The departure of former Lazard executive Scott Hoffman was disclosed in a regulatory filing on Wednesday. And the new co-CEO who was chosen to replace him, Seth Platt, is already trying to fire his counterpart.

The fund, which manages more than $70bn, has been mired in acrimony for years due to a clash between its co-founders, John Overdeck and David Siegel.

Their infighting — and its impact on the business — was supposed to be resolved in 2024 when Overdeck and Siegel appointed co-chief executives as their replacements.

Yet even with Siegel and Overdeck no longer overseeing day-to-day operations, the regulatory filing revealed their feud was still affecting the hedge fund and how it functions, with each still having sizeable sway over the future of the firm.

They each chose a successor. Overdeck selected the firm’s then chief business officer, Carter Lyons, and Siegel picked Hoffman, the former general counsel of investment bank Lazard. Lyons and Hoffman were to work as the new co-chief executives and sole management committee members. Overdeck returned to the management committee last March, replacing Lyons.

Hoffman resigned after “ongoing governance challenges”, according to the filing. And now his replacement has become a source of dispute over Platt’s position at Two Sigma.

Overdeck and Siegel each retain power to choose a member of the firm’s management committee. Overdeck is disputing Siegel’s choice of Platt, a family office executive, as Hoffman’s replacement as co-CEO.

Meanwhile, even though Platt has only been in the position for two weeks, he has already tried to fire Lyons as co-CEO because he “undermined his authority”, according to the filing.

Even after Siegel and Overdeck officially stepped down, their feud continued in private. They went to arbitration last year over some of their disagreements.

The claims were ultimately dismissed, but the arbitration panel found that “despite the firm’s undeniable success, the co-chairmen’s ongoing disputes and differing views on corporate governance have caused management dysfunction at Two Sigma”.

“We are focused on sustaining our positive momentum and providing differentiated returns for our investors,” a spokesperson said in an email, who added the firm was grateful for Hoffman’s work at the hedge fund.

The friction between Siegel and Overdeck was revealed in 2023 when Two Sigma took the unusual move of warning that rifts among its management committee members — which included the co-founders — could amount to a “material risk”.

At the time, the infighting appeared to be undermining the hedge fund’s operations. The committee had been unable to agree on organisational structure, responsibilities for top executives and succession plans.

Over the past year, committee members have still not been able to agree on those business decisions, which Two Sigma warned could affect the hedge fund’s ability to retain employees.

FT : Amazon in talks to buy $9bn satellite group Globalstar in bid to rival Elon

Amazon in talks to buy $9bn satellite group Globalstar in bid to rival Elon Musk’s Starlink
Ecommerce giant is trying to catch up with SpaceX’s low Earth orbit internet service

Amazon is in talks to acquire the satellite telecommunications group Globalstar, a deal that would bolster the ecommerce giant’s effort to build its own low Earth orbit satellite business.

The two sides were still negotiating over some of the complexities of a deal after lengthy talks, according to people familiar with the matter.

One complicating factor has been Apple’s ownership of a 20 per cent stake in Globalstar, necessitating negotiations between Amazon and Apple, the people said.

Acquiring the satellite group would accelerate Amazon’s push to compete with Elon Musk’s SpaceX and its Starlink orbital internet service.

No deal had been finalised and discussions could yet shift or collapse, the people warned.

Globalstar said: “As a company policy, Globalstar does not comment on industry speculation or rumours.” Amazon declined to comment. Apple did not immediately respond.

Founded in 1991, Globalstar shares have surged in recent months on the back of takeover speculation, reaching a market capitalisation of about $9bn on Wednesday.

Its stock is up about 230 per cent over the past year, with investors betting it could be a challenger to SpaceX.

Globalstar has attracted interest from various other suitors as companies seek to build out their own constellations of low Earth orbit satellites, in which Starlink is the dominant player.

Apple invested $1.5bn in Globalstar in 2024, taking a 20 per cent stake in the company. As part of the agreement, Globalstar agreed to reserve 85 per cent of its network capacity for the iPhone maker for satellite-based texting when outside cellular tower coverage.

Bloomberg reported in October that Globalstar was exploring a sale and had held early talks with SpaceX.

Amazon has been pushing forward with its own effort, dubbed Leo, launching the first batch of satellites for its internet constellation last year.

The company has more than 180 satellites in orbit but its deployment is dwarfed by the more than 10,000 active satellites operated by SpaceX.

Amazon in February was forced to seek a two-year extension to a July deadline from the Federal Communications Commission for the launch of 1,600 satellites.

Amazon plans to have about 700 satellites in space by the middle of this year but has said that a launch capacity shortage is hampering the build-out of its service, according to regulatory filings.

Amazon has signed deals with JetBlue and Delta for internet services on flights commencing in 2027 and 2028, respectively.

Andy Jassy, Amazon’s chief executive, told investors in February that Leo was part of a suite of “incremental opportunities” that the $2.2tn ecommerce group would pursue. 

Globalstar reported full-year revenue of $273mn in its latest annual results, a 9 per cent increase from 2024. Income from operations was $7.4mn in 2025, after a narrow loss in the year before.

FT : US readies new pharmaceutical tariffs

US readies new pharmaceutical tariffs
Levies of 100% on certain medicines would implement threats Trump made last year

The Trump administration is preparing to impose tariffs of 100 per cent on certain medicines as it pushes drugmakers to manufacture more in the US.

The levies — set to be announced as soon as Thursday — would be applied to companies that have not struck deals with the White House, said people familiar with the matter.

The duties follow through on threats Trump made last autumn, when he said he would impose tariffs of 100 per cent on imports of branded or patented drugs unless the manufacturer was building a plant in the US.

Tariffs on imports from countries that have struck trade deals with the White House would also be capped according to the terms of the deal, the people said.

Last year, the US agreed to cap tariffs on drugs from the EU at 15 per cent as part of the deal struck with the bloc in Turnberry, Scotland.

The UK also struck a deal with the US to lower tariffs on its drugs for three years in exchange for increased NHS spending on medicines.

Pfizer, AstraZeneca and Novo Nordisk are among the companies that have struck deals with the Trump administration to boost investment in the US and lower their drug prices in exchange for a reprieve on the tariffs.

The fresh levies being announced this week are the result of a national security investigation under Section 232 of the Trade Expansion Act of 1962, which was launched in April last year.

Duties imposed under those investigations were not affected by the Supreme Court ruling in February that struck down the sweeping tariffs Trump had imposed using emergency powers.

The White House has since launched probes that could lead to levies using separate legal authorities in an effort to resurrect the tariff wall that it had put in place before the court’s ruling.

FT : Ofwat poised to waive Thames Water fines to 2030 under deal

Ofwat poised to waive Thames Water fines to 2030 under deal
Clock is ticking on approving creditors’ emergency offer for utility as October deadline looms

Thames Water is poised to reach an agreement with the sector regulator that will allow the struggling utility to avoid any new fines over the next four years in exchange for a commitment to invest cash into the business.

Ofwat is planning to accept “undertakings” in lieu of financial penalties until 2030, according to people familiar with discussions, as part of a controversial offer put forward by creditors that would save the UK’s biggest water company from being temporarily renationalised as it struggles under a £20bn debt pile.

The clock is ticking on reaching an agreement, as Thames Water will run out of money again in October. The offer from the creditors — who provided the company with £3bn in emergency funding last year — first went to Ofwat for approval in June 2025.

Ofwat must put any deal out for a three-month public consultation. Meanwhile, as part of the offer by creditors, which include US hedge funds Elliott Management and Silver Point, a proposal to take a 30 per cent writedown on their debt, and for a second tranche of more junior creditors to lose all their cash, will also have to be tested in the High Court.

Undertakings are a regulatory instrument that would enable the utility to commit to fixing issues that caused breaches, rather than paying a fine. This would also allow Ofwat to continue with investigations and penalties, but any cash would be spent on fixing breaches rather than returned to the Treasury, people close to the negotiations said.

Thames Water, which provides water and sewerage services to 16mn people in and around London, would still face Environment Agency fines and legal cases, the people added.

Pollution, leakage and other performance targets imposed a year ago are also being individually renegotiated, they added. These will either be suspended or “significantly modified”.

Giving Thames Water any leniency around fines would be controversial. Critics of the proposed deal said by replacing hard financial penalties with “minimum expectations”, Ofwat is removing accountability and giving the company a “regulatory holiday” that will leave some infrastructure projects delayed for years.

Customers are also facing a sharp 37 per cent increase in bills, even before inflation, by 2030. Thames Water also has a deal with Ofwat that enables it to raise prices further if it can find the supply chain to deliver work.

CK Infrastructure — which made a preliminary £7bn bid for Thames Water in 2025 before the company gave KKR exclusivity in talks that ultimately ended in the private equity firm walking away from its rescue bid — has been critical of the creditor’s proposals.

“There is only a limited amount of information dribbled out by the creditors, which is wrong, given this is such an important utility,” said Andrew Hunter, a managing director at Hong Kong-headquartered CKI.

The government wants to find a “market-led solution” for Thames Water to keep it out of its special administration regime, a form of temporary renationalisation.

The company has only managed to stay afloat thus far through the £3bn emergency loan from the creditors, provided in tranches, at an expensive 9.75 per cent interest rate and which is expected to cost about £800mn in interest in total.

Thames Water said last month that the creditors had offered the company an additional £6.55bn of debt and £3.35bn of equity in October, if Ofwat agrees a deal. The debt is understood to be offered at a lower rate of about 6 per cent, according to sources close to the agreement.

The creditors said: “All outstanding fines will be paid. Regulators will have enhanced transparency, and Thames Water will have clear accountability for reducing pollution and improving environmental outcomes against stretching performance targets.”

Thames Water said it “remains focused on securing a market-led solution which delivers improvements for customers and the environment as soon as practicable whilst making progress with our operational and financial turnaround plan. 

“We have launched our biggest upgrade in 150 years with a record £1.26bn in capital investment — an increase of 22 per cent year on year — in the first six months of 2025/26 focused on fixing leaks, pollution and water quality.” 

Ofwat declined to comment.

>>> US After Hours Summary: PENG +10.7%, FC +10.3% higher on earnings; CNTB +16.

After Hours Summary: PENG +10.7%, FC +10.3% higher on earnings; CNTB +16.5% sharply higher on insider purchase

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: PENG +10.7%, FC +10.3%

Companies trading higher in after hours in reaction to news: CNTB +16.5% (Director bought 1,160,000 shares at $3.45 worth ~$4 mln), RC +7% (business update), CVGI +3.7% (CFO to resign; reaffirms revenue guidance), SFIX +2.9% (resumes share repurchases), BEAM +2.5% (publication of BEACON Phase 1/2 data for risto-cel in patients with sickle cell disease), RBRK +1.3% (Director bought 10638 shares at $47.21 worth ~$502K), EL +0.9% (establishes "One ELC" operating model and reaches milestone in profit recovery and growth plan), GILD +0.8% (extends expiration date of tender offer to acquire Arcellx), BA +0.2% (awarded a $900 mln Air Force contract)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: None

Companies trading lower in after hours in reaction to news: LUNR -1.9% (stock offering by selling shareholders), ANRO -1.8% (topline data from Phase 2 proof-of-concept study of ALTO-101), APO -1.7% (preliminary estimates for Q1 alternative net investment income ), BORR -1.2% (new contract commitments)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • NCNO +23.4% (also authorizes $100 mln accelerated share repurchase program), TH +19.9% (lands $550 mln data center contract, raises outlook), SHAZ +15.1%, PLAY +5.6%, OMER +4.6%, CALM +3.6%, TLRY +3.6%, ARES +1.7% (lower Q1 guidance, also raises over $9.8 bln for leading opportunistic credit strategy), RILY +1.6%, PVH +1.5%, ASTL +1%
Other news:
  • NERV +5.9% (first patient screened in Phase 3 confirmatory trial)
  • IMUX +5.2% (regains Nasdaq compliance after meeting minimum bid requirement)
  • GALT +4.7% (files for $200 mln mixed securities shelf offering)
  • LI +4.6% (March deliveries)
  • KBDC +4.5% (entered into $150 mln equity distribution agreements)
  • AIR +4.1% (awarded a $305 mln Navy contract)
  • AREC +3.7% (to delay 10-K filing)
  • MRP +3.6% (files mixed securities shelf offering)
  • NIO +3.5% (March deliveries)
  • CAI +3.5% (finalizes Achieve 1 Study results reinforcing the superior sensitivity and specificity of Caris Detect)
  • INFQ +2.9% (stock offering; also stock offering by selling shareholders)
  • HHH +2.8% (reschedules shareholder meeting)
  • XPEV +2.3% (March deliveries)
  • USAU +2.1% (highlights upside potential beyond CK project feasibility baseline)
  • RGTI +2% (announces Novera QPU sale)
  • TMC +1.9% (files mixed securities shelf offering)
  • ARX +1.9% (names new CFO)

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • RH -18.3%, NKE -10.3%, FBRX -7.3%, MSM -4.4%
Other news:
  • ORIC -21.7% (reports Phase 3 data)
  • SVC -11.8% (prices offering of 416.7 mln common shares at $1.20 per share)
  • AESI -10.1% (signs 120 MW power deal, raises outlook)
  • PPHC -2.3% (completes WPI Strategy acquisition)
  • GDEN -1.2% (shareholders approve master transaction agreement with Blake Sartini and VICI Properties)

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • NCNO +20.8%, SHAZ +10%, NERV +5.9%, OMER +5.4%, CALM +5.2%, LI +5%, GALT +4.7%, AIR +3.9%, HHH +3%, PLAY +3%, AREC +2.9%, NIO +2.7%, XPEV +2.5%, DRS +2.1%, ARX +1.9%, RILY +1.9%, ASPI +1.8%, IMUX +1.8%, INFQ +1.7%, FRPH +1.6%, HOPE +1.5%, CAI +1.5%, ARES +1.5%, RYN +1.4%, GRAB +1.4%, MSFT +1.4%, RGTI +1.1%, ASA +1.1%, AMTM +1%, IDXX +1%, LMT +0.9%
  • Gapping down:
    • ORIC -21.8%, RH -18.6%, SVC -12.2%, NKE -10.5%, FBRX -4.8%, MSM -4.3%, KBDC -2.8%, PPHC -2.3%, ACNT -1.6%, PVH -1.3%, GDEN -1.2%, GLSI -0.8%, POET -0.8%