FT : Brussels investigates KKR over €22bn Italian telecoms deal

Brussels investigates KKR over €22bn Italian telecoms deal
Commission probes whether US private equity group provided ‘incorrect or misleading information’ over impact of buyout

Brussels has launched an investigation into KKR over whether it provided “incorrect or misleading information” about the market impact of its €22bn deal to acquire Telecom Italia’s fixed-line network last year.

The European Commission, which oversees antitrust rules in the bloc, said on Thursday that the probe would focus on information provided by the US private equity group relating to the deal’s impact on “wholesale broadband access services in Italy”.

The Commission routinely gathers information before deals are completed to assess whether they would have a harmful effect on competition within the region. Under the bloc’s rules, merging parties must not provide incorrect, incomplete or misleading information to the Commission.

KKR struck the deal to buy NetCo, which controls FiberCop, the company housing the fixed-line networks business previously carved out from Telecom Italia, after triumphing from a years-long battle with the company’s largest shareholder, Vivendi.

The plan to separate Telecom Italia’s fixed line business had been opposed by French conglomerate Vivendi but Telecom Italia chief executive Pietro Labriola said it was the only chance to turn around the heavily indebted group amid increased competition across the sector, which was once a monopoly in Italy.

Brussels had initially decided that the KKR deal would not harm or eliminate other businesses’ access to “passive services” because of agreements that FiberCop had entered into with those companies.

The Commission, which has powers to fine companies that intentionally or negligently supply incorrect or misleading information, said on Thursday that its probe would “assess whether KKR provided incorrect or misleading information about these agreements”.

The deal, which was the largest private equity takeover in Europe in 2024, has since soured with FiberCop’s chief executive abruptly exiting in January after disagreements with KKR over a potential earnings hole at the business.

KKR said it had “worked with the European Commission in good faith and provided specific and accurate information” on the deal, adding that it would “fully engage” with Brussels to address any concerns.

FT : New German military service targets 40,000 teenagers a year

New German military service targets 40,000 teenagers a year
Russian threat prompts Berlin to boost numbers of army reservists and professional soldiers

Germany aims to recruit up to 40,000 teenagers a year to do a voluntary form of military service as it seeks to expand the size of its armed forces dramatically.

The scheme, which will be presented as a draft bill to cabinet at the end of August, will promise attractive pay and flexibility in an effort to persuade 18-year-olds to sign up, according to government officials.

The ministry of defence hopes to fill 15,000 spaces this year under an existing voluntary programme and increase that number by 3,000 to 5,000 young men and women every year, as Europe’s largest nation seeks to bolster its troops as part of Nato’s response to the fear of Russian aggression.

It has set a goal of reaching an annual quota of 40,000 by 2031, with the primary aim of boosting the number of the army reserves by automatically adding the volunteers to their ranks after they have completed their service.

But defence officials also hope that it will encourage more young people to become professional soldiers.

Chancellor Friedrich Merz has promised to make Germany’s military the strongest conventional army in Europe as part of a drive to play a leading role in the continent’s defence and security as he also pours hundreds of billions into rearmament.

Military officials have said that the size of the professional military needs to grow from 182,000 today to 260,000 by 2035. It also needs to expand the reserves who can be called upon in a crisis from 60,000 to 200,000.

Since Vladimir Putin’s full-scale invasion of Ukraine in 2022, Germany has repeatedly debated whether or not to return to conscription, which was suspended in 2011.

In neighbouring France, President Emmanuel Macron has said he wants to relaunch a system of voluntary national service to help increase the number of military reservists from 40,000 to 100,000 over the next 10 years, but he ruled out a return to compulsory military service.

Germany defence minister Boris Pistorius, a member of Merz’s Social Democrat coalition partners, has also settled on a voluntary model inspired by the system in Sweden rather than on the idea of compulsory service.

If the draft law is approved by the Bundestag, all of the roughly 300,000 men who turn 18 will from 2026 onwards be required to respond to a questionnaire to assess their suitability, availability and willingness to serve in the armed forces. The survey will be voluntary for women. 

Unlike in Sweden, where authorities select which young people are enlisted, in Germany only those who want to take part in military service will be chosen to do so.

But from 2028, when sufficient capacity is built up, all 18-year-old men will also be required to attend a mandatory health test so that authorities can create a comprehensive picture of the available personnel who could fight in the event of a full-scale war.

Defence officials hope to attract enough volunteers to the scheme by offering pay of about €2,000 per month post-tax, according to people familiar with the plan.

They will have the opportunity to acquire new skills and qualifications, access language courses and subsidised driving licences. The initial stint will be six months but can be extended.

Military planners hope that these incentives will be sufficient to attract enough recruits. But the draft bill will contain a provision allowing the government to reinstate mandatory conscription if that effort fails — although it does not include a fixed target or timeline that would trigger the fallback option.

>>> What to look at today - 24th of July 2025

Global equities continued their rally as bulls drew fresh conviction from signs the US may strike more trade deals soon after clinching a pact with Japan. A gauge of the world’s stocks hit a new record high, helped by a 1% gain in Asia. Japanese benchmarks jumped as much as 2%, fueled by the financial sector, while the yen rose as investors speculated the trade deal will make an interest-rate hike more likely. Nasdaq 100 contracts rose 0.3% after Alphabet Inc.’s earnings. Tesla Inc. shares dropped in after-hours on a weak forecast. Futures for European stocks advanced 1.3% following reports the US was closing in on an agreement with the European Union that would set a 15% tariff for most products after the accord with Japan. The European Central Bank is expected to leave interest rates untouched for the first time in more than a year later Thursday. The de-escalation in global trade tensions has reassured investors, easing fears of a prolonged trade war and fueling gains across global markets. Investors have bet that Washington would adopt a pragmatic approach before tariffs meaningfully impact corporate profits.  Trump suggested that he would not go below 15% as he sets so-called reciprocal tariff rates ahead of an Aug. 1 deadline. The US will evaluate the implementation of the trade agreement every quarter, and if Trump is unhappy, tariffs will go back to the 25% rate both for cars and the rest of Japan’s products, US Treasury Secretary Scott Bessent warned.  Bessent is scheduled to meet with Chinese officials in Stockholm next week for discussions aimed at extending a tariff truce. In a sign of stability, the market’s so-called fear gauge — the VIX — collapsed to 15 after topping 52 at the height of April’s tariff-fueled turmoil.Meanwhile, a gauge of the dollar retreated after US Commerce Secretary Howard Lutnick said Federal Reserve Chair Jerome Powell “has got to go.” President Donald Trump will visit the Federal Reserve Thursday, according to the White House. US After Hours GOOG +1.7%, MXL +23.4%, ICLR +13.8%, NOW +7.2% higher on earnings; CYH -17.8%, CMG -9.5%, IBM -4.9% lower on earnings.

Nikkei +1.67% Hang Seng +0.38% CSI +0.40% Shanghai +0.37% Shenzen +0.67%

Eur$ 1.1777 CNH 7.1476 CNY 7.1511 JPY 146.04 GBP 1.3579 CHF 0.7924 RUB 78.3976 TRY 40.4603 WTI$ 65.56 +0.48% Gold 3,380 -0.21 BTC 117,665 -0.25% ETH 3,581 +0.32%

S&P +0.05% Nasdaq +0.29% EuroStoxx +1.29% FTSE +0.45% Dax +1.27% SMI +0.91%

Macro :
- EU June Car Registrations Drop 7.3% Y/y to 1.010m Units

Keep an eye on :
- AALB NA : Aalberts 1H Revenue Matches Estimates
- ABVX US : Abivax Offers About $400 million ADS, Biotech Abivax Said to Offer ADRs at $62.50 to $65 Each
- ABVX FP : Abivax Trading Suspended Until 3:30 PM CEST Pending ADR Offering
- AI FP : Air Liquide Takes Final Investment Decision to Build ELYgator
- ALPH LN : Corpay to Buy Alpha at 4,250p/Share in Cash: M&A Snapshot
- AAD GY : Amadeus Fire Cuts FY Revenue Forecast
- AOF GY : Atoss Software 1H Ebit EU31.0M Vs. EU29.7M Y/y
- BANB SW : Bachem Sees 2026 Sales Above CHF1B, Est. CHF935.9M
- BKT SM : Bankinter 2Q Operating Gross Profit Beats Estimates
- BESI NA : BE Semiconductor Sees 3Q Gross Margin 60% to 62%, Est. 63.4%
- BNP FP : BNP Paribas 2Q FICC Sales & Trading Revenue Beat Estimates
- BP/ LN : BP’s Castrol Unit Said to Get One Rock Bid as Most Suitors Drop
- CARM FP : Carmila 1H Gross Rental Income Meets Estimates
- 3750 HK : JPMorgan, BofA Leaders Subpoenaed by US Lawmakers Over CATL IPO
- CMBN Sw : Cembra Money Bank 1H Net Income Misses Estimates
- CMCSA US : Bezos Signals Interest in Possible Acquisition of CNBC: NY Post
- CTPNV NA : CTP Signs €500M Unsecured Sustainability-Linked Loan Facility
- DSY FP : Dassault Systemes Cuts FY Non-IFRS Operating Margin Forecast
- DTE GY : T-Mobile 2Q Postpaid Phone ARPU Beats Estimates
- DNO NO : DNO 2Q Net Entitlement Production From Kurdistan 18,675 Boepd
- DUE GY : Duerr Cuts FY Order Intake Forecast, Misses Estimates
- DWS GY : DWS Inflows Slow as Antsy Clients Navigate Trump Tariff Turmoil
- ECONB BB : Econocom 1H Organic Revenue +5.9%
- ENI IM : Eni Says It Purchased Some Oil Cargoes With Organic Chloride
- RF FP : Eurazeo 1H Net Loss EU309M Vs. Loss EU105M Y/y
- FNAC FP : Fnac Darty 1H Revenue Meets Estimates
- FCX US : Freeport Projects $1.7 Billion Sales Bump From US Copper Premium
- GLPG NA : Galapagos 1H Operating Loss EU215.7M Vs. Loss EU71.3M Y/y
- GALD SW : Galderma Sees FY Sales at Constant Exchange Rates +12% to +14%
- GFC FP : Gecina Narrows FY Recurrent Net per Share Forecast
- GF SW : Georg Fischer 1H Ebit Beats Estimates
- GET FP : Getlink 1H Ebitda Beats Estimates
- GFT GY : GFT FY Revenue Forecast Misses Estimates
- GSK LN : GSK ADRs Jump After FDA Delays Review Its Blood Cancer Drug
- HUM1V FH : Huhtamaki 2Q Flexible Packaging Adj. Ebit Beats Estimates
- IBE SM : Iberdrola’s Share Sale Draws €19 Billion in Investor Orders
- IBM US : IBM 2Q Revenue Beats Estimates: Snapshot
- ICAD FP : Icade Maintains FY Group NCCF/Shr Forecast
- IDR SM : Indra 2Q Ebitda Beats Estimates
- IG IM : Italgas 1H Adjusted Ebitda EU857.5M Vs. EU671.2M Y/y
- ITP FP : Interparfums Prelim 2Q Net Sales Miss Estimates
- ISN SW : Intershop Sees Portfolio Valuation Adding CHF147m to Earnings
- IPS FP : Ipsos Sees FY Operating Margin About 13%, Est. 12.6%
- KNIN SW : Kuehne + Nagel 2Q Net Revenue Misses Estimates
- LEON SW : Leonteq 1H Pretax Profit Misses Estimates
- MONC IM : Moncler 1H Net Income Beats Estimates
- NESN SW : Nestle 1H Organic Revenue Beats Estimates
- OBEL BB : Orange Belgium 1H Ebitda After Leases EU264.8M Vs. EU252.9M Y/y
- RI FP : Tilaknagar to Buy Pernod Ricard’s Imperial Blue Ops for $480M
- REP SM : Repsol 2Q Adjusted Income Beats Estimates
- ROG SW : Roche 1H Sales Meet Estimates
- ROVI SM : Rovi 1H Net Income EU39.7M Vs. EU44.3M Y/y
- SAB SM : *SABADELL 2Q NET INCOME EU486M, EST. EU439.8M
- SK FP : SEB Sees FY Like-for-Like Sales +2% to +4%, Saw About +5%
- SPM IM : Saipem 2Q Adjusted Ebitda Beats Estimates
- STMPA FP : STMicro 3Q Net Revenue Forecast Beats Estimates
- SUN SW : Sulzer 1H Ebit CHF192.7M Vs. CHF170.1M Y/y
- TSLA US : Tesla 2Q Revenue Meets Estimates: Snapshot
- TSLA US : Tesla Warns of Pain From Trump’s Tax Bill That Elon Musk Blasted
- TSLA US : Musk Puts Potential xAI Investment Back on Tesla Shareholders
- VKTX US : Viking Therapeutics 2Q Revenue Matches Estimates
- VLTSA FP : Voltalia 2Q Revenue EU147.7M Vs. EU132.9M Y/y
- VONN SW : Vontobel 1H Pretax Profit CHF148M Vs. CHF173.3M Y/y, Vontobel Sees Positive Client Inflows After Turbulent First Half
- WG/ LN : Sidara Mulls Lowering Wood Group Bid After FCA Probe: FT

>>> Europe : Brokers Upgrades & Downgrades - 24th of July 2025

>>> Up
* BASF Raised to Overweight at Morgan Stanley; PT 54 euros
* General Dynamics Raised to Outperform at Wolfe; PT $360
* Mandatum Raised to Hold at SEB Equities; PT 5.80 euros
* Valmet Raised to Buy at SEB Equities; PT 35 euros

>>> Down
* Aegean Air Cut to Hold at Wood & Company; PT 14 euros
* AT&T Cut to Hold at HSBC; PT $30
* BHP Cut to Sell at Berenberg
* BHP ADRs Cut to Sell at Berenberg; PT $44
* Dowlais Cut to Neutral at BNPP Exane; PT 74 pence
* EFG International Cut to Neutral at Mediobanca SpA
* Equinor Cut to Hold at HSBC; PT 275 kroner
* E.On Cut to Market Perform at Bernstein
* Johnson Controls Cut to Hold at Jefferies; PT $120
* Metso Cut to Hold at Pareto Securities; PT 11.80 euros
* Metso Cut to Hold at ABG; PT 11.50 euros
* Paradox Interactive Cut to Hold at Pareto Securities
* SSAB Cut to Sell at ABG; PT 52 kronor
* SwedenCare Cut to Hold at Pareto Securities; PT 43 kronor
* Tesla Cut to Sell at Punto Casa de Bolsa; PT $299.48

>>> Initiation
* DEFAMA AG Rated New Add at Baader Helvea; PT 31.80 euros
* Enity Holding Rated New Buy at Nordea; PT 113 kronor
* Enity Holding Rated New Buy at SEB Equities; PT 115 kronor
* Intel Rated New Buy at GF Securities; PT $34
* Sentia Rated New Buy at ABG; PT 80 kroner

>>> Call

>>> TradeGate Pre-Market Indications

DAX:
  • Deutsche Telekom (DTE TH) +2.3%
    • Hellenic Telecom Says Deutsche Telekom Lifts Stake to 54.6%
  • Deutsche Bank (DBK TH) +2.2%
    • Deutsche Bank Traders Join Wall Street in Ride on Volatility (1)
  • BASF (BAS TH) +2.2%
    • BASF Upgraded at Morgan Stanley on Multiple Upcoming Catalysts
  • Porsche SE (PAH3 TH) +2.1%
  • Porsche (P911 TH) +2%
MDAX:
  • Jungheinrich (JUN3 TH) +2.5%
  • AUTO1 (AG1 TH) +2%
  • DWS (DWS TH) +1.9%
    • DWS Inflows Slow as Antsy Clients Navigate Trump Tariff Turmoil
  • TeamViewer (TMV TH) +1.4%
  • Thyssenkrupp (TKA TH) +1.3%
SDAX:
  • Kloeckner (KCO TH) +2%
  • Salzgitter (SZG TH) +1.6%
  • Vossloh (VOS TH) +1.3%
    • Vossloh 1H Ebit EU44.9M Vs. EU49.5M Y/y
  • Deutz (DEZ TH) +1.1%
  • Borussia Dortmund (BVB TH) -1.4%
  • Duerr (DUE TH) -5.8%
    • Duerr Cuts FY Order Intake Forecast, Misses Estimates
  • Amadeus Fire (AAD TH) -7.2%
    • Amadeus Fire Cuts FY Revenue Forecast
  • GFT (GFT TH) -8.6%
    • GFT FY Revenue Forecast Misses Estimates

>>> US After Hours Summary: GOOG +1.7%, MXL +23.4%, ICLR +13.8%, NOW +7.2% highe

After Hours Summary: GOOG +1.7%, MXL +23.4%, ICLR +13.8%, NOW +7.2% higher on earnings; CYH -17.8%, CMG -9.5%, IBM -4.9% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: MXL +23.4%, ICLR +13.8% (also increases share buyback auth by $500 mln to a total of $1 bln), TREE +10.9%, NOW +7.2% (also partnership with CapZone), FAF +6.5% (also authorizes new $300 mln share repurchase program), CVLG +6.1%, STC +5.9%, LVS +5.6%, JOE +5%, TMUS +4.9%, CLB +4.8%, WEX +4.2%, OII +3.6%, RNR +2.8%, CSX +2.2%, WH +2.2%, LOB +1.9%, FRME +1.8%, GOOG +1.7%, SSNC +1.7%, URI +0.8%, MTH +0.5%, RBBN +0.2%, CCS +0.1%

Companies trading higher in after hours in reaction to news: ABVX +3.1% (launches $400 mln stock offering; also files mixed securities shelf offering), AVGO +2.8% (GOOG increases cap-ex guidance, seen as good for AVGO), RCKT +2.4% (reorganization and pipeline prioritization; 30% workforce reduction), CBAN +1.7% (CBAN to acquire TCBC), BAC +0.8% (increases dividend; also authorizes $40 bln repurchase program), AMZN +0.7% (Jeff Bezos sold another 6,612,707 shares pursuant to Rule 10b5-1 trading plan worth more than $1.5 bln), MSFT +0.1% (Founders Fund and Dragoneer each pledge over $1 bln to OpenAI, according to The Information)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: CYH -17.8% (also CEO to retire), CMG -9.5%, VKTX -7.1%, EGBN -5.8%, QS -5.7% (also expands collaboration with PowerCo), SIGI -5.2%, IBM -4.9%, MOH -4.5%, MAT -3.5%, TSLA -3.3%, GGG -2.6%, PLXS -2.5%, ESRT -2.5%, RS -2.4%, GTY -2.3%, SON -2.2%, WCN -2.2%, ARR -2.2%, RHI -2.1%, IPAR -1.7%, BANC -1.5%, PKG -1.5%, ORLY -1.3%, LUV -0.9% (also authorizes new $2 bln share repurchase program), GLPG -0.9% (also to re-evaluate the previously proposed separation into two publicly traded entities; strategic alternatives for cell therapy business, including a potential divestiture), EPRT -0.8%, CCI -0.7%, CHDN -0.3% (also authorizes new $500 mln share repurchase program), GL -0.3%, ALK -0.2%, NLY -0.2%, CADE -0.1%, EGP -0.1%, RJF -0.1%, ROL -0.1%, VRE -0.1%

Companies trading lower in after hours in reaction to news: WAY -1.2% (to acquire Iodine Software; also provides guidance), ZIMV -0.2% (distribution agreement with Osstem Implant), LNN -0.1% (CFO to retire)