EUROPEAN OPEN: NVDA investigates alleged Chinese espionage; NOVN SW discontinues pelacarsen cardiovascular development; ARGX BB acquires remaining Unnatural Products stake; ACA FP proposes BAMI IM merger; UCG IM raises FY26 profit guidance

European equities have started the week mixed. Overnight APAC stocks began the week mostly higher, with tech names following the positive lead from US on Friday. Taiwanese stocks also gave the market support following authorities last week announcing short-selling restrictions, which became effective today, following an AI-led equity sell-off that pushed its benchmark index to its worst weekly performance in 25 years; the Taiwanese finance ministry also signalled readiness to deploy its TWD 500bln stock stabilisation fund to support markets. Nvidia is seeing downside in pre-markets after news that its board has launched an independent investigation following reports that CEO Jensen Huang allegedly had an affair with a woman suspected by US intelligence officials of being a Chinese spy. Data out of China showed October CPI slowing to 0.7% Y/Y (exp. 0.8%; prev. 0.9%), driven by cooling food prices, which fell 2.9% Y/Y; core CPI eased to 0.8% (exp. 0.9%). PPI accelerated to 5.7% Y/Y (exp. 5.3%; prev. 5.0%), its fastest since June 2022. Higher energy and AI-related costs drove producer inflation, while weak domestic demand limited firms’ ability to pass on costs. ING said higher producer costs could eventually pass through to consumers, although inflation is expected to remain low but positive into 2027. Gold rose to around USD 4,100/oz, reversing Friday’s decline amid falling oil prices and a weaker USD, while downside in Nvidia boosted haven demand; analysts said that expectations of a December Fed rate hike are limiting gains. Elsewhere, China’s PBoC added 25.8 metric tonnes of gold in October, extending its buying streak to 24 consecutive months. In US-Iran news, Axios reports that US President Trump is to meet with the Qatari PM today at 12:00EST/17:00GMT, with talks focused on efforts to reach a new ceasefire and resume nuclear negotiations with Iran. Over the weekend, Trump told CNN that further US strikes on Iran were highly unlikely if nuclear negotiations and talks on reopening the Strait of Hormuz progressed. Trump reiterated the US naval blockade remains in force. Secretary of State Rubio said talks had been unproductive due to unacceptable Iranian demands, although Washington would continue exploring diplomatic options. Crude futures extended their largest weekly decline since April 2020, with Brent now trading sub USD 97/bbl, after downside of over 16% last week. Markets weighed US-Iran diplomatic efforts against renewed attacks near Hormuz and Riyadh. Analysts at CBA said they could see Brent trading between USD 70-85/bbl if the US blockade ends. Morningstar DBRS affirmed Germany’s AAA long-term and R-1 (high) short-term sovereign ratings, with Stable trends. The agency cited strong institutions and debt affordability despite weak growth prospects and widening fiscal deficits. ECB presidential contender Klaas Knot said he would deploy bond purchases and potentially develop new tools to counter disorderly sovereign-debt markets, according to an interview with the FT. He sees no current need for intervention, stressing that rising borrowing costs alone are insufficient. Knot envisages limited further tightening if energy prices remain stable. The German September trade surplus narrowed to EUR 15.6bln (exp. 19.2bln; prev. 19.5bln), while exports rose 2.0% M/M (exp. 0.5%; prev. -0.8%) and imports increased 4.2% M/M (exp. 0.5%; prev. 0.9%). The UK REC jobs data showed October permanent staff placements index at 46.6 (prev. 50.9), permanent staff availability index at 59.6 (prev. 57.2), and the permanent staff salaries index at 54.1 (prev. 53.4). UK employers reduced hiring in October for the first time in four months, while temporary placements fell for the first time since March. Vacancies continued declining amid pre-budget tax uncertainty and rising energy costs. Starting salary inflation increased slightly but remained below its long-run average, with demand stronger in skilled sectors. In trade news, the EU and UK are close to an agreement linking their emissions trading systems, with an announcement expected at a summit later this month. STOCK SPECIFICS: TECH: Nvidia (NVDA) launched an independent investigation into reports CEO Jensen Huang was targeted by Chinese espionage following an alleged affair, the company said. Its board sees no reason to believe secrets were compromised. US House Republicans requested a briefing on 18th November, while President Trump backed Huang. China’s Global Times rejected the allegations, warning of damage to bilateral trade relations. Samsung Electronics’ (SSNLF) semiconductor etching process recipes were allegedly leaked repeatedly to Lam Research Korea (LRCX) beyond authorised data sharing limits, according to The Elec; Samsung reportedly discovered the breaches in H2 2026 and launched an investigation, treating the incidents as technology leaks. Lam Research Korea recently replaced its CEO, although any connection remains unconfirmed. Shanghai Micro Electronics Equipment showcased domestically developed lithography systems for front-end wafer fabrication and advanced packaging; the company claims 90% local sourcing in its chipmaking equipment, highlighting progress in China’s semiconductor equipment localisation efforts. HEALTHCARE: Novartis (NOVN SW) will discontinue development of pelacarsen for atherosclerotic cardiovascular disease after a trial involving 8,322 patients showed no reduction in heart attacks or strokes despite lowering Lp(a). A separate trial in calcific aortic valve stenosis will continue. Argenx (ARGX BB) will acquire the remaining shares of Unnatural Products, in which it already holds a minority stake, in a transaction valuing the company at up to approximately USD 1.15bln. Elsewhere, Argenx said Phase 3 ALKIVIA met primary and key secondary endpoints, with VYVGART Hytrulo delivering a 14.8-point TIS improvement versus placebo and improved muscle strength. Sandoz (SDZ SW) launched a new semaglutide treatment option in Brazil, expanding patient access to GLP-1 medicines in a key global market. UCB (UCB BB) and Biogen (BIIB) announced additional clinical data further characterising the profile of dapirolizumab pegol. FINANCIALS: Berkshire Hathaway’s (BRK.B) Q3 operating earnings fell 5.8% Y/Y to USD 12.705bln amid weaker insurance performance, while net earnings declined 28% to USD 22.112bln. Revenue rose 11% to USD 105.65bln. Share buybacks increased to USD 9.6bln, while cash holdings reached USD 377.435bln. Separately, Berkshire mandated banks for a potential yen-denominated bond offering. Credit Agricole (ACA FP) has proposed merging its Italian subsidiary with Banco BPM (BAMI IM) to create Italy’s third-largest bank. Credit Agricole’s stake would rise to approximately 45% from 29.6%, with Banco BPM CEO Giuseppe Castagna leading the group. The proposal includes a 20% valuation premium and EUR 1bln extraordinary dividend, with completion targeted for H2 2027. UniCredit (UCG IM) Q3 net profit rose 24% Y/Y to EUR 3.26bln (exp. 2.78bln), with revenue up 12% to EUR 6.90bln (exp. 6.47bln); it raised its interim dividend to EUR 4.5bln, and its FY26 profit guidance to well above EUR 11.5bln (prev. saw above 11.0bln). Commerzbank (CBK GY) acquisition approvals are expected by late November, with new governance arrangements anticipated in Q1 2027. Hannover Re (HNR1 GY) Q3 net profit rose to EUR 694.7mln (exp. 638mln; prev. 650.8mln); reiterated its FY guidance, supported by large losses remaining below budgeted expectations. INDUSTRIALS: ABB (ABBN SW) and SoftBank (SFTBY) are reportedly considering carving out China operations to preserve their robotics deal, Bloomberg reports citing sources. FT reports EU-LISA sued Atos (ATO FP), Leonardo (LDO IM) and IBM (IBM) over repeated Entry/Exit System delays, disputed penalties and rising costs. MATERIALS: The EU is expanding rare earth mining, processing and refining to reduce dependence on China; Bloomberg notes that European strategic projects involving Sweden’s LKAB, Norway’s REEtec and other developers require over EUR 43bln in investment. CONSUMER CYCLICAL: Of note for UK EVs, UK ministers are expected to reduce the 2030 electric vehicle sales target from 80% to approximately 60%, extending compliance flexibilities until 2034, according to The Guardian. CONSUMER DEFENSIVE: Plesio (CO FP) delayed its Q3 results to 10th November. DAY AHEAD: EVENTS: US President Trump is to meet with the Qatari PM on Monday at 12:00EST/17:00GMT, with talks focused on efforts to reach a new ceasefire and resume nuclear negotiations with Iran. Eurogroup and ECOFIN meetings; COP31 begins (9-20th Nov). DATA: In North America, US NY Fed Survey of Consumer Expectations, wholesale inventories (exp. 0.6% M/M, prev. 0.5%) and an Atlanta Fed GDPNow now update for Q4 (prev. 3.4%); Mexico October CPI (prev. 3.45% Y/Y) and core CPI (prev. 3.75% Y/Y). CENTRAL BANKS: Fed’s Goolsbee (2027 voter) joins a moderated discussion; Fed’s Barkin (2027 voter) speaks on the economic outlook. BoC publishes its Market Participants Survey. SUPPLY: US auctions USD 58bln of 3-year notes. EARNINGS: Notable corporates reporting today include: KKR & Co (KKR), Constellation Energy (CEG), Occidental Petroleum (OXY), Ferguson Enterprises (FERG), Skydance (SKYD), Take-Two Interactive (TTWO), Rocket Lab (RKLB), NRG Energy (NRG), CNH Industrial (CNH), Hims & Hers (HIMS). WEEK AHEAD: Highlights include US CPI, UK GDP. Notable earnings due this week include: AMAT, CRWV, CSCO, NBIS.