Stocks gained on the last trading day of the week on renewed optimism over AI-driven demand, brushing aside the latest flare-up in Middle East tensions. Comments from Japanese Finance Minister Satsuki Katayama sent the yen higher. MSCI’s Asia Pacific equities gauge rose 1.7%, trimming losses for the week to less than 1%. Hong Kong’s Hang Seng Index climbed 1.9%, heading for its best week in more than a year. South Korea’s Kospi — a bellwether for AI investments — jumped 5%, with SK Hynix Inc. among the winners after its $26.5 billion American depositary share offering. A sense of caution, however, prevailed with futures for US and European stocks edging lower. Elsewhere, Japan’s longer-maturity sovereign bonds rose after Katayama said the government wants to encourage pension funds to increase investment in domestic financial assets. The yen gained 0.5% to about 161.65 per dollar. Bloomberg’s gauge of the US currency fell, heading for a second weekly decline. Treasuries rose for a second day, with the benchmark 10-year yield falling one basis point to 4.54%. Gains came as crude oil steadied around $76.70 a barrel after traders judged the US-Iran conflict was unlikely to escalate into a broader disruption to energy supplies. With Middle East tensions appearing contained, investors returned to technology shares on renewed confidence that the AI investment boom remains intact. After a pullback earlier this week, investors saw an opportunity to buy the dip, betting the upcoming earnings season will reinforce expectations for resilient AI-driven growth. Spending by chip companies is one factor that’s luring investors. In the latest capital expenditure announcement, Micron Technology Inc. said it plans to increase spending on new plants in the US to $250 billion to help meet demand fueled by the artificial-intelligence boom. The company’s shares rose 1.1% in extended trading. In Asia, SK Hynix’s ADR sale is expected to help fund growing spending plans amid soaring demand for equipment used in AI computing. The company and Samsung Electronics Co. are poised to ramp up investment in South Korea as part of a government-led initiative worth $880 billion. SK Hynix’s ADRs are set to begin trading Friday on the Nasdaq Global Select Market under the symbol SKHYV, which will change to SKHY when they begin regular trading July 13. Global equities have had a volatile week as chip stocks swung between gains and losses. Friday’s advance helped the MSCI All Country World Index erase a weekly loss and head for a modest gain of 0.1%. Earlier this week, investors unimpressed by Samsung’s 19-fold increase in profit drove technology stocks lower, deepening concerns that the AI-driven rally may have run ahead of itself. In geopolitical news, technical talks between the US and Iran are continuing, according to a US official, following two days of clashes that threatened to shatter an already fragile ceasefire between the two nations.
The US is still committed to finding a solution with Iran, the official said Thursday, speaking on condition of anonymity to discuss the matter. US After Hours WDFC +14.2% higher on earnings; SEI +3.6% to join S&P SmallCap 600; NFLX -1.7% on WSJ report it's considering live TV and bundle offerings; FRMI -16.3% on convertible notes offering
Nikkei +1.61% Hang Seng +1.25% CSI -0.66% Kospi +3.52% Shanghai +0.04% Shenzen +0.28%
Eur$ 1.1440 CNH 6.7823 CNY 6.7794 JPY 161.59 GBP 1.3430 CHF 0.8047 RUB 76.0506 TRY 46.9721 WTI$ 72.39 +0.40% Gold 4,117 -0.29% BTC 63,931 +1.08% ETH 1,772 +1.44%
S&P -0.15% Nasdaq -0.27% EuroStoxx -0.15% FTSE +0.07% Dax +0.03% SMI +0.19%
Macro :
- US Says Iran Technical Talks to Continue Despite Recent Strikes
- SpaceX’s Junk Yield Paradox Exposes Worries Over Cash Burn
- SpaceX’s Junk Yield Paradox Exposes Worries Over Cash Burn
- Japan Urges Its Pensions to Invest More at Home in Boost for Yen
- Oil Steadies at End of Volatile Week as US and Iran Keep Talking
Keep an eye on :
Keep an eye on :
- AI FP : Air Liquide to Invest Over $200M in Production Site in Texas
- AKBM NO : Aker BioMarine 2Q Revenue Under Estimates
- BAYN GY : Bayer Gets €3b From Apollo Stake in Contraceptives Business
- BA US : Boeing 737 MAX 7 on Track to Win FAA Certification in Late July -- WSJ
- BWLPG NO : BW LPG Says Indian Unit to Sell 2007-Built BW Elm
- BMAX SS : Byggmax 2Q Ebit Beats Estimates
- CARM FP : Carmila: Acquisition of Grand Quetigny
- DIS US : Disney is exploring adding a free tier for Disney+ as YouTube draws TV viewers
- ELK NO : Elkem 2Q Ebitda Beats Estimates
- EMSN SW : EMS-Chemie 1H Net Sales Beat Estimates
- ENTRA NO : Entra 2Q Rental Income Meets Estimates
- FRMI US : Fermi Is Said to Offer Up to 5% Coupon on Convertible Bond
- GTT FP : GTT Gets Samsung Heavy Industries FLNG Unit Tank Design Order
- HSBA LN : HSBC Looks for Buyers of HK Unit Hang Seng’s Risky Loans: FT
- KIT NO : Kitron 2Q Revenue Beats Estimates
- META US : Tencent leads deal to unwind Meta’s $2bn Manus acquisition
- GLE LN : MJ Gleeson Sees Earnings in Line With Market Expectations
- NFLX US : Netflix Exploring Live TV, Bundles as Subscriber Engagement Showed Signs of Decline -- WSJ
- NVDA US : Samsung’s Lee Seeks to Meet Nvidia’s Huang in US End-July: DongA
- POS AV : Porr Holder IGO Construction Offers About 1.5m Shares: Terms
- POS AV : Porr Holder IGO Construction Offers About 1.5m Shares: Terms
- 000660 KS : SK Hynix Is Said to Price US Share Offering at $149 Apiece
- 1SMA GY : Smag Said to Allocate IPO Shares to More Than 45 Investors
- SOBI SS : Sobi Says Empaveli Gets Reimbursement Recommendation in Canada
- GLE FP : SocGen to Finance Tycoon’s Cameroon Sugar Mill to Take on Castel
- SPCX US : SpaceX’s Junk Yield Paradox Exposes Worries Over Cash Burn
- STRO NO : StrongPoint Reports 2Q Revenue of NOK 342 Million, Compared With FactSet Estimates of NOK 343 Million (1 Est.)
- TPRO IM : Technoprobe’s 330% Surge Makes It a European AI Stock Standout
- 700 HK : Tencent in Talks to Become Largest Holder of Manus: FT
- TRYG DC : Tryg 2Q Pretax Profit Beats Estimates
- DG FP : Vinci Wins ~€100m Heavy Vehicle Charging Station Deal in Germany
- VOD LN : Emirates Telecom to Sell Vodafone Stake for $5.95B to Vega
- VOW GY : Volkswagen Eyes Halving Model Lineup After Board Impasse
>>> Up
* ArcelorMittal Raised to Neutral at JPMorgan; PT 57 euros
* Deutsche Bank Raised to Market Perform at KBW; PT 32 euros
* Glencore Upgraded from Neutral to Buy at Goldman Sachs
* Leonardo Raised to Buy at Jefferies; PT 68 euros
* Mediobanca Raised to Buy at Deutsche Bank; PT 29.40 euros
* Mediobanca Raised to Buy at Deutsche Bank; PT 29.40 euros
* Salzgitter Raised to Overweight at JPMorgan; PT 65 euros
* Voestalpine Raised to Overweight at JPMorgan; PT 50 euros
>>> Down
>>> Down
* ABB Cut to Hold at ABG; PT 85.53 Swiss francs
* Duerr Cut to Hold at Berenberg; PT 21 euros
* Eezy Cut to Reduce at Inderes; PT 18 euro cents
* Glencore PT cut from 560 to 520 at JP Morgan
* Glenveagh Cut to Hold at Deutsche Bank; PT 2.40 euros
* Glenveagh Cut to Hold at Deutsche Bank; PT 2.40 euros
* Intertek Cut to Neutral at Rothschild & Co Redburn
* Melexis Cut to Hold at Deutsche Bank; PT 75 euros
* Troax Cut to Hold at Berenberg; PT 120 kronor
* Watches of Switzerland Cut to Hold at Jefferies; PT 740 pence
* Wizz Air Cut to Underperform at RBC; PT 900 pence
>>> Initiation
* LKFT US Reinstated Equal-Weight at Morgan Stanley; PT $30
>>> Call
* Deutsche Bank Raised to Market Perform as Downside Limited: KBW
>>> Initiation
* LKFT US Reinstated Equal-Weight at Morgan Stanley; PT $30
>>> Call
* Deutsche Bank Raised to Market Perform as Downside Limited: KBW
- Voestalpine (VAS TH) +3.7%
- Leonardo (FMNB TH) +2.9%
- Leonardo Raised to Buy at Jefferies; PT 68 euros
- Rio Tinto (RIO1 TH) +1.5%
- ASML (ASME TH) -1%
- Investor AB (IVSD TH) -1.1%
- Siemens Healthineers (SHL TH) -1.6%
DAX:
- Siemens Energy (ENR TH) +1%
- Siemens Healthineers (SHL TH) -1.5%
MDAX:
- Salzgitter (SZG TH) +5.2%
- Salzgitter Raised to Overweight at JPMorgan; PT 65 euros
- Siltronic (WAF TH) +2.3%
- Deutz (DEZ TH) +1.4%
- Jenoptik (JEN TH) +1.1%
SDAX:
- Redcare Pharmacy NV (RDC TH) +1.7%
- Duerr (DUE TH) -1.5%
- Verbio SE (VBK TH) -2.1%
- Fielmann (FIE TH) -2.1%
EasyJet: orange upstart that changed flying prepares to go private
European low-cost pioneer is set to be bought by private credit group Castlelake for £5.5bn three decades after its launch
Before dawn broke on a chilly morning last November, a selection of key figures from easyJet’s past and present gathered in hangar 89 at Luton airport to celebrate the airline’s 30th birthday.
Fred Rivett, who captained the orange-branded airline’s first ever flight from Luton to Glasgow in November 1995, and the airline’s founder, Sir Stelios Haji-Ioannou, were among those attending.
“The airline has stayed close to its original purpose: To democratise travel,” its current CEO Kenton Jarvis said, before festivities kicked off at the event.
Less than a year later, the carrier is in flux. The company, which came to the London market in 2000, is set to be taken private in a £5.5bn deal with US private credit group Castlelake. The US group has until August 3 to make a formal offer.
It marks a historic chapter for the airline that was one of the original European low-cost trailblazers.
EasyJet led this wave that transformed flying across Europe, giving families in the UK cheaper holidays abroad — a move that both opened up new continental destinations and accelerated the decline of once-thriving British seaside holiday spots.
When the airline started, its marketing campaign to “Fly to Scotland for the price of a pair of jeans” meant that “we had to tear up the rule book to make a real difference”, according to Jarvis.
It stuck its phone number on the side of the plane to cut out travel agents who ate into its margins and, it argued, kept fares high.
While British Airways was still serving hot meals on short-haul flights, easyJet began a pay-at-trolley service. This kept costs down as well as the mess for crew to clean between flights.
It also flew only Airbus aircraft, a feature not noticed by passengers, but one that meant every certified easyJet captain could pilot every plane.
The airline has proudly stuck to its jeans claim, a memorable-if-niche benchmark.
A chart distributed at its birthday celebration last year showed the price of Levi’s has risen from £32 in 1995 to £100, while the airline’s base ticket has slipped from £29 to £26 — a drop of 55 per cent in real terms factoring in inflation.
The jeans slogan was part of the airline’s “maverick, entrepreneurial start-up” appeal driven by Haji-Ioannou, said John Strickland, an aviation analyst.
“They completely changed the industry, and opened up markets that weren’t served at all,” said Richard Slater, who runs the independent travel agency Henbury Travel.
As well as beach holidays in Spain and Italy, easyJet’s rapidly expanding network put “intellectual” destinations such as former eastern bloc cities on the tourist map, he added.
EasyJet’s success also pushed upmarket rivals to copy its methods. British Airways and the other legacy carriers stripped out costs and cut back free food. The unintended impact of this has been to turn easyJet into a peer.
“Some passengers now would rather fly easyJet than BA [on short haul] for instance, because the seats, the service, everything is easier and better quality,” said Slater. “You get service with a smile.”
Its three-decade journey has not been without turbulence. In the 2000s, the airline was embroiled in a long-running lawsuit with its founder Haji-Ioannou over royalty rights. The airline has lagged Ryanair in profits, and shares have never recovered to the level seen before the Covid-19 pandemic grounded its entire fleet in 2020.
The comparison with Ryanair has been a constant niggle for the airline: Its threadbare Irish rival has turned cost optimisation into an art form.
The Irish carrier offers seats from as little as €16, and uses planes with retractable steps to speed up loading, forcing passengers to wait on the tarmac in all conditions to board.
EasyJet itself has already drifted quietly upmarket from its humble origins, moving into so-called primary airports such as Charles de Gaulle in Paris and Milan Linate — locations that bring it prime business travellers — said Strickland.
“They have diversified into a pan-European airline that is pretty rare in the industry,” he added.
Many believe the airline’s best hope lies in moving further upmarket, closing in on BA rather than getting into a cost-cutting arms race with its Irish rival.
A sale to a larger group, such as Lufthansa, Air France-KLM or BA’s owner IAG, would likely face an antitrust claim — but other options for improving the airline’s profitability include tying up with one or several long-haul carriers (Virgin Atlantic is a frequently touted name) to increase the impact of its network.
If the Castlelake deal goes through, the airline will vanish from the London Stock Exchange but will certainly not disappear from the skies.
The US private credit group is expected to continue to run the airline, taking delivery of new aircraft while accelerating its push towards generating £1bn of profit. Although Castlelake, which owns a third of Scandinavia’s SAS, has never operated an airline outright, it has a long history of managing aircraft financing.
Investors “do not expect a radical change in the business plan of easyJet,” said Andrew Lobbenberg, an analyst at Barclays.
He expects Castlelake to “continue to develop the holidays business and grow the airline modestly”. Without the quarterly glare of investor updates, it may “cull the weakest-performing routes or bases” and might launch new products, such as its long-awaited loyalty scheme, faster.
The private credit group’s preliminary offer price is more than double easyJet’s lowest share price during May, when fuel costs from the Iran war deflated its stock.
EasyJet’s shares have largely remained below the preliminary offer price since 2021, when the airline launched a rights issue — a factor which has forced the airline’s board to engage with Castlelake.
Not all shareholders are thrilled by the decision.
“We continue to be of the view that this is absolutely not an opportune time to consider selling shares in easyJet,” one top 20 shareholder told the FT. A deal “risks transferring the benefits of future recovery and growth to other market participants rather than the existing shareholder base,” they added.
“A long-term shareholder that looked at [the] long-term opportunity might still feel a bit short-changed here,” said another investor. “As is often the way . . . both sides probably feel a bit cheesed off when you get to the [agreed] price”.
They added that the “board probably feels they’ve done a lot to extract from this one bidder”.
An agreed deal is likely to close next year, but any potential distraction in the business such as a management overhaul, will benefit rival carriers such as Ryanair and Wizz, and holiday operators such as Tui and Jet2.
If rivals are jubilant, they are keeping it behind closed doors. “Competitors come and go, but at the end of the day competition is good,” said Jet2 boss Steve Heapy.
Slater at Henbury Travel is more open: Jet2 “will run rings around them,” he predicts.
“If [Castlelake] mess up the brand we’ll be left with a low-quality business, and people will switch to other airlines.”
UK pharmacies report high demand as weight-loss pills go on sale
Rollout likely to accelerate the hit being felt by supermarkets as users of the drugs buy less food
Pharmacies across the UK have experienced a surge in demand for anti-obesity pills following their launch this week on to the private market.
A survey by the National Pharmacy Association found 70.6 per cent had received enquiries from patients looking to start treatment on weight-loss pill Wegovy, which has been available to buy from high street pharmacies and online providers since Monday.
The drug, a daily pill made by Novo Nordisk, is the oral version of the weekly injection of the same name also manufactured by the Danish pharmaceutical company. Both contain the active ingredient semaglutide.
The pill became the first oral weight-loss treatment approved anywhere in the world when it received the green light from US authorities in December. It was approved by the UK’s Medicines and Healthcare products Regulatory Agency last month. The pill delivered a loss of 17 per cent of body weight on average after 64 weeks in clinical trials.
The 1.25mg pill, the lowest dose, costs about £100 a month at private pharmacies in the UK.
“The demand has definitely been noticeable,” said Olivier Picard, chair of the National Pharmacy Association, who also cautioned that all prescribing decisions should be “made responsibly, based on clinical need and pricing should be transparent to all patients receiving treatment”.
The pill is prescribed for adults who are obese with a body mass index of at least 30 and have at least one pre-existing, weight-related health condition.
The rollout will accelerate the hit to sales already being felt by the UK’s supermarket sector, as people on the weight-loss drugs buy less food. Supermarkets lost £780mn in sales in the year to February as a result of weight-loss drug users cutting back, according to research from Worldpanel by Numerator.
Research into the spending patterns of people taking appetite-suppressing GLP-1 medications, such as Wegovy, in the US by Cornell University found households with at least one person on weight-loss drugs reduced their grocery spend by 5.3 per cent within six months. Higher-income households reduced spending by 8.2 per cent.
People in the UK will consume 5 per cent fewer calories by 2035 as a result of the drugs and healthier eating trends, according to modelling by Bramble Partners, which invests in and advises businesses in the food sector.
Sehar Shahid, an online pharmacist in Scotland, said she had seen a “significant increase” in enquiries about the drugs from patients.
“There has been a real buzz and a lot of excitement,” she said. Shahid also cautioned that there was a “significant” amount of misinformation and some “poor marketing practices” from certain providers that were creating the incorrect impression the pill is easier to access than the injection.
While the weight-loss tablet has been approved by the regulator and is licensed for use in the UK, it is not currently available on the NHS. Experts have warned of a widening gap in access as poorer patients are left unable to access weight-loss drugs while wealthier users pay for a private prescription.
The FT has previously reported that more than half of local health commissioners in England are tightening access to NHS weight-loss injections. “I think we’re in danger of creating a two-tier system where people who can afford to pay privately can access treatment, while those who are often in greatest need simply cannot,” said Picard.
On Friday, England’s chief medical officer published new guidance on the benefits of physical activity in which he cautioned that people on weight-loss drugs “especially need to ensure they do activities to maintain muscle strength”.
Professor Sir Chris Whitty warned that users lost both fat and muscle while on the drugs. “It’s part of the physiological process, but it’s very important that they maintain their strength and balance over time to maintain their ability to keep muscle mass,” he said.
RR/LN, SAF/FP — US SEC 232 AIRCRAFT: NEGOTIATE, DON'T TARIFF (NET POS N/T)
BOTTOM LINE: Trump signs Sec 232 proclamation 9-Jul determining cmcl aircraft/engines/parts imports "threaten natl security" — BUT no tariff imposed. Commerce recommends holding off. Order = negotiate-first: Commerce + USTR to strike deals w/ trading partners, 180d window, duties held in reserve if talks fail. Read = RELIEF vs feared duty. Overhang lifts near-term; 180d uncertainty cloud replaces it.
KEY: 1979 Civil Aircraft Agmt (zero-for-zero, duty-free 45yrs) now on table 1st time. Aero = US's strongest export sector, ~$75-89bn surplus — argues vs actually pulling trigger.
SAF/FP — MOST EXPOSED. CFM JV (50/50 w/ GE/US) makes LEAP for 737MAX + A320neo. Heavy transatlantic parts flow (LEAP-1B fan ships FRA→US). Rich spares/aftermkt crosses Atlantic constantly = exactly what a parts duty would bite. Partial cushion: existing US mfg footprint.
RR/LN — WIDEBODY STORY. Trent on A330neo/A350 to US carriers + large US svc base. Lower exposure to high-vol single-aisle parts flow than SAF, but engine/spares duties would still add cost friction.
TRADE: no-tariff-today reads positive both names. Tail risk = talks collapse post-180d → SAF the single most tariff-sensitive name in the chain. Not seeing post-announcement analyst moves yet (proc <24h old).
After Hours Summary: WDFC +14.2% higher on earnings; SEI +3.6% to join S&P SmallCap 600; NFLX -1.7% on WSJ report it's considering live TV and bundle offerings; FRMI -16.3% on convertible notes offering
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: WDFC +14.2%
Companies trading higher in after hours in reaction to news: SEI +3.6% (to join S&P SmallCap 600), SGML +3.2% (exceeded its production guidance for Q2 by 6%), BZAI +2.5% (settles with Bess Ventures, includes issuing 2 mln shares), TLRY +0.7% (launches first medical cannabis product in Panama), BHVN +0.7% (CSO to retire, announces other exec changes), GD +0.6% (awarded $255 mln modification to a previously awarded US Navy contract), RELY +0.4% (gets UAE stored value facilities license from central bank), TRIN +0.3% (achieves $709 mln of new commitments in Q2), SPCX +0.2% (Cursor developing general-purpose AI agent to challenge Anthropic's Claude Cowork, according to The Info), AJG +0.2% (acquires Med James)
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: FRMI -16.3% ($350 mln convertible notes offering), BKD -6.7% (reports June occupancy), NNNN -5.9% (files mixed securities shelf offering), NFLX -1.7% (considering live TV and bundle offerings to boost engagement, according to WSJ), FSUN -1.6% (discloses Q2 charge-offs), DNLI -1.5% (to highlight breakthroughs in biologic therapies), AMZN -0.3% (introduces Loom for AWS), FUBO -0.2% (names former Disney streaming exec as CEO), MDLN -0.1% (COO to retire)
Iran Hatched Fresh Plot to Kill Trump, Israel Told U.S.
Israel recently shared new intelligence with the U.S. that they said showed Iran was considering a new plan to assassinate the president, sources say
Israel shared new intelligence with the U.S. that it said indicated a fresh Iranian plan to kill President Trump, people familiar with the matter said, a finding that would mark an escalation in the war between Washington and Iran.
Iran for years has vowed openly to retaliate against Trump for the assassination of Qassem Soleimani, who was a top general in the Islamic Revolutionary Guard Corps, in the president’s first term.
The Israeli embassy in Washington declined to comment. Iran’s Mission to the United Nations didn’t immediately respond to a request for comment. The White House referred The Wall Street Journal to comments the president made on Wednesday.
Trump on Wednesday alluded to threats to his life when speaking to reporters in Ankara, Turkey.
“They want to take out the U.S. leader—me,” he said. “I’m on every list. I saw this morning, I’m on every single one of their lists. And so far, I guess I’ve been a little bit lucky, but that maybe doesn’t last very long.”
Relations between Trump and Israeli Prime Minister Benjamin Netanyahu have splintered in recent weeks as their interests diverged over continuing the Iran war.
Netanyahu has advocated for keeping up attacks on Iran and accomplishing more war aims. Trump has sought a way out of the conflict, citing concerns it could tank the global economy. The U.S. struck a fragile ceasefire with Iran last month.
Trump and Netanyahu spoke on Thursday, according to the Israeli prime minister’s office, which said they had agreed to continue “coordination between the countries.” Trump also updated Netanyahu on recent U.S. activity in the Gulf, the statement said.
Iranian mourners at the funeral for slain Iranian Supreme Leader Ali Khamenei chanted for Trump’s death, with mourners unveiling a banner that read “We Will Kill Trump.”
Trump and Netanyahu spoke frequently at the start of the war in Iran, with Netanyahu telling the president about various targets and Israeli intelligence in late-night phone calls, the Journal previously reported. The two men have continued to speak, but their relationship has shown signs of fraying in a series of tense phone calls.