Daily US Equity Opening News - US plans tariff carve-outs for hyperscalers; TSM Jan sales the fastest in months; ON slips on a mixed outlook; OpenAI rolls out ads; AMZN plans AI content marketplace; PPRUY accelerating sales

TODAY’S AGENDA: DAY AHEAD: From the US, weekly ADP employment data is due (the prior week saw an average of 7,750 per week over the four-week period). Q4 employment costs are also due. US December retail sales are expected to rise by 0.4% M/M (prev. 0.6%), with the ex-gas/autos measure seen rising 0.2% M/M (prev. 0.4%). Business inventories for November, weekly RedBook are also due. The Atlanta Fed will update its GDPnow tracking estimate, which is currently modelling growth of 4.2% in Q4. Today’s speakers’ slate includes Fed’s Hammack and Logan (both 2026 voters). In energy, the EIA will publish its STEO report today; afterhours, the API will publish its weekly gauge of energy inventories. Today’s supply slate includes Netherlands selling EUR 1.5-2bln of 2044 Green DSLs; UK will sell GBP 3.75bln of 2031 debt; Germany will sell EUR 5bln of Bobls; the US will auction USD 58bln 3yr notes. Notable corporates due to report today include: Coca-Cola (KO), Gilead (GILD), Welltower (WELL), S&P (SPGI), CVS Health (CVS), Duke Energy (DUK), Marriott (MAR), Spotify (SPOT), Robinhood (HOOD), Ford (F), Ecolab (ECL), Cloudflare (NET).NEWS:MACRO: Fed Chair Nominee Warsh - President Trump told Fox News that his nominee to lead the Fed could drive US economic growth to 15%; Trump said Kevin Warsh had been the runner-up in his previous search, and that choosing current Fed Chair Powell had been a major mistake. Fedspeak - Fed Governor Miran (voter, dove) said the central bank’s balance sheet should be smaller, while retaining the ability to conduct large-scale asset purchases during an economic crisis, which would lessen the Fed’s footprint in financial markets, and preserve policy flexibility for future shocks. Miran also said that the USD would need to fall much more sharply for currency moves to have a material impact on inflation, and the USD’s recent weakness has not had meaningful consequences for monpol. Fed’s Waller (voter) said optimism that boosted crypto markets after President Trump’s election may be fading amid a selloff that has unsettled the asset class. Venezuela - Venezuela’s interim government is increasing USD sales via private banks to support the bolivar amid political uncertainty. Local banks are reported to be selling USD 280mln this week through USD auctions, adding to an earlier USD 500mln in sales disclosed by the central bank late last month. BoE - BoE’s Mann said Trump’s trade wars are adding to UK inflation as China raises export prices to the UK to offset the cost of US tariffs; Mann rejected claims that the UK would benefit from diverted Chinese trade, and criticised UK’s weak growth. TRADE: US-China - President Trump will travel to Beijing in the first week of April for a meeting with Chinese President Xi Jinping, Politico reports citing sources. The visit would mark a high-level bilateral engagement between the two leaders. US Tariffs - House Republicans advanced a procedural motion to block a vote on President Trump’s tariff agenda, potentially delaying consideration until at least July, Bloomberg reports. The motion will be voted on this week. With a narrow majority, Republicans risk defections that could end the delay, which began last March as trade tensions with Canada escalated, the report adds. Big Tech - The Trump administration plans tariff carve-outs for US hyperscalers including Amazon (AMZN), Google (GOOG) and Microsoft (MSFT), linked to Taiwan Semiconductor Manufacturing Company’s (TSM) US investment commitments, FT reports. The scheme would allow exemptions from forthcoming chip tariffs proportional to TSMC’s pledged USD 165bln US capacity buildout, under a wider trade deal involving USD 250bln in semiconductor investment. US-Taiwan - Taiwan Vice Premier Cheng Li-chiun told Washington that relocating 40% of its semiconductor supply chain to the US is impossible, CNBC reports. She pushed back against targets set by Commerce Secretary Lutnick despite a US-Taiwan trade deal involving USD 250bln in investments and tariff cuts. Taiwan insists its chip ecosystem must remain rooted domestically. US-Canada - President Trump threatened to block the opening of the Gordie Howe International Bridge linking Detroit and Canada, adding to political tensions between the two countries. The Canada-funded bridge, which is nearly complete after almost eight years of construction, is designed to ease congestion at the Detroit–Windsor crossing. GEOPOLITICS: China-Taiwan - China signalled plans to expand national security measures in Hong Kong following the sentencing of Jimmy Lai, Bloomberg reports. Beijing’s State Council said it would strengthen security across key economic sectors of the city, including finance and shipping, and called for a holistic approach that combines development and security, amid renewed international calls for Lai’s release. Munich Security Conference - Secretary of State Rubio will attend the Munich Security Conference (13-15th February) and hold meetings with counterparts, the State Department said. He will then travel to Slovakia for talks with government officials on regional security, nuclear energy, military modernisation and NATO commitments. US-Russia - The US pledged up to USD 9bln in potential investment to support Armenia’s shift away from Russian energy after Vice President JD Vance signed a civil nuclear cooperation agreement. TECH: Big Tech - The Trump administration plans tariff carve-outs for US hyperscalers including Amazon (AMZN), Google (GOOG) and Microsoft (MSFT), linked to Taiwan Semiconductor Manufacturing Company’s (TSM) US investment commitments, FT reports. The scheme would allow exemptions from forthcoming chip tariffs proportional to TSMC’s pledged USD 165bln US capacity buildout, under a wider trade deal involving USD 250bln in semiconductor investment. Data Centres - The Trump administration is seeking a voluntary compact with major technology companies to govern AI data centre expansion, aiming to prevent higher household electricity prices, protect water resources and safeguard grid reliability, Politico reports. A draft pact would require developers to fund new power generation, transmission upgrades and infrastructure, while supporting grid stability and community measures. TSMC (TSM) - TSMC reported a +37% Y/Y rise in January revenue to USD 12.7bln, marking its fastest growth in months, Bloomberg reports. The result exceeded the company’s FY growth outlook of about 30%, reflecting continued global AI-related demand, though the comparison may have been affected by Lunar New Year timing. ON Semiconductor (ON) - On Semiconductor shares slipped almost 4% in extended trading, despite beating Q4 earnings estimates, after a mixed outlook. Q4 adj. EPS 0.64 (exp. 0.62), Q4 revenue USD 1.53bln (exp. 1.54bln). Said it met expectations in the quarter, citing early signs of stabilisation across key end markets, with automotive, industrial and AI data centre power remaining strategic priorities. Management highlighted continued investment in intelligent power and sensing technologies to support higher-value solutions and long-term shareholder returns. Sees Q1 adj. EPS between 0.56-0.66 (exp. 0.61), and sees Q1 revenue between USD 1.435-1.535bln (exp. 1.51bln). Salesforce (CRM) - Salesforce cut fewer than 1,000 roles earlier this month, affecting staff across marketing, product management, data analytics and its Agentforce AI product, according to Business Insider. The layoffs follow an executive reshuffle and come after CEO said AI agents reduced support staff from 9,000 to 5,000. Palantir Technologies (PLTR) - Investor Michael Burry said he remains bearish on Palantir and is preparing further analysis, despite strong Q4 earnings. He flagged a potential head-and-shoulders pattern, citing a peak at USD 207.52 in November 2025 and a neckline near USD 140. He identified downside levels around USD 83 and USD 54, implying declines exceeding 40%. Amkor Technology (AMKR) - Q4 adj. EPS 0.69 (exp. 0.44), Q4 revenue USD 1.89bln (exp. 1.84bln). Management said results reflect continued momentum in high-growth end markets. Sees Q1 EPS between 0.18-0.28 (exp. 0.24), sees Q1 revenue between USD 1.60-1.70bln (exp. 1.54bln), implying sequential moderation but ahead of market expectations at the midpoint. Further ahead, it sees FY26 capex between USD 2.5-3.0bln, signalling an acceleration of strategic investments to support the next wave of advanced packaging growth as the company enters 2026 with positive momentum. Parsons (PSN) - Parsons Corporation secured a USD 91mln extension to the Overseas Security Installation Services contract administered by the State Department. The award represents the seventh option year of a 10yr contract and forms part of the OSIS II programme valued at nearly USD 1.12bln. COMMUNICATIONS: OpenAI, Omnicom (OMC), WPP (WPP) - OpenAI rolled out ads in ChatGPT, showing them to some US free-tier users and subscribers to its USD 8/month plan. Advertisers must pay at least USD 200,000 for the OpenAI Ad Pilot Programme, which has attracted Omnicom, WPP and Dentsu, with over 30 Omnicom clients participating, according to Ad Week. Alphabet (GOOG) - Alphabet is set to raise USD 20bln from a USD bond sale, exceeding earlier expectations of a USD 15bln deal. The offering attracted more than USD 100bln of orders at its peak, reflecting strong investor demand for debt linked to AI, making it one of the largest order books for a corporate bond sale, Bloomberg said. Separately, Alphabet is selling CHF-denominated bonds for the first time after its USD 20bln US deal; it is offering five tranches of debt, with maturities of 3yr, 6yr, 10yr, 15yr and 25yr, and are expected to price later today. Verizon (VZ) - Senator Hagerty filed a complaint with the FCC after Verizon provided his phone data to the DoJ during the investigation into President Trump and the 2020 election. Hagerty said Verizon should admit wrongdoing or face FCC action. Verizon said the subpoenas were facially valid and subject to gag orders. Tencent Holdings (TCEHY) - Tencent-owned Riot Games said it has reduced staff on the team behind fighting game 2XKO, citing lower-than-needed engagement momentum after expanding from PC to console. Clear Channel Outdoor (CCO) - Clear Channel agreed to be acquired by Mubadala Capital and TWG Global, in an all-cash transaction valuing the company at USD 6.2bln ev. Shareholders will receive USD 2.43/shr, a 71% premium to the unaffected price on 16th October. The deal, unanimously approved by the board, is expected to close by Q3 2026. FINANCIALS: Standard Chartered (SCBFY) - Standard Chartered CFO Diego De Giorgi has left the bank after two years to join Apollo (APO) as head of its EMEA business. The bank appointed Peter Burrill as interim group CFO. Barclays (BCS) - Barclays said it will return at least GBP 15bln to shareholders through 2028 after beating profit expectations; the bank reported a return on tangible equity of 11.3% for 2025, and is targeting more than 14% by 2028. The bank plans around GBP 2bln of additional efficiency savings, on top of GBP 700mln delivered last year. Q4 revenue was GBP 7.08bln (prev. 6.96bln Y/Y), PBT GBP 1.86bln (exp. 1.76bln), NII GBP 3.73bln (exp. 3.76bln). Banca Monte dei Paschi (BMPS), Mediobanca (MDIBY) - A senior Italian Treasury official who sits on the board of Banca Monte dei Paschi di Siena is under investigation for alleged insider trading linked to the lender’s takeover of Mediobanca, Ansa reports. Stefano Di Stefano was probed after police seized his phone and is alleged to have bought about EUR 100,000 of Mediobanca and Monte Paschi shares. Santander (SAN) - Barbara Navarro has stepped down as Santander’s global head of research, public policy and institutional relations, according to Bloomberg; she has already left the bank, and the role will not be replaced, the report said. T. Rowe Price (TROW) - T. Rowe raised its quarterly dividend to USD 1.30/shr (prev. 1.27/shr). Stripe - Stripe is in talks to launch a tender offer that could value the payments company at more than USD 140bln, according sources cited by Axios. The potential valuation would mark an increase from the USD 107bln last Autumn, when Stripe bought back shares from investors. Crypto - US banking groups have stepped up opposition to granting crypto and fintech firms direct access to the Fed’s payment systems. The Bank Policy Institute, Clearing House Association and Financial Services Forum called for a 12-month waiting period before applications, arguing access should be blocked until newly licensed stablecoin issuers demonstrate they can operate safely. CONSUMER: Amazon (AMZN) - Amazon has signalled to publishing executives that it plans to launch an AI content marketplace allowing publishers to sell content to AI firms, The Information reports. AWS circulated slides grouping the marketplace with AI tools including Bedrock and Quick Suite. Separately, JPMorgan reiterated an Overweight rating and USD 265 price target on Amazon; it noted that while shares fell after earnings, as its 2026 capex target of USD 200bln was well above expectations and likely implies significant FCF burn this year, JPM said the investment reflects strong demand, and should support AWS growth acceleration through 2026, with focus on AWS and backlog growth, Retail market share gains and margin expansion. Alibaba (BABA) - Alibaba introduced an open-source AI model aimed at helping robots and devices perform real-world tasks. Developed by its DAMO Academy, the foundation model, called RynnBrain, is designed to understand environments over time and assist with mapping objects, predicting trajectories and navigating complex spaces such as homes or factory floors. Nike (NKE) - Converse staff have been told to work from home ahead of layoffs and restructuring at the Nike brand, as sales fall to a 15-year low, Bloomberg reports. Changes include new roles and team moves, with job cuts planned, according to an internal note from Converse CEO Aaron Cain. Target (TGT) - Target said it will increase investment in store staffing and training while cutting about 500 roles across store districts, distribution centres and regional offices, CNBC reports. The retailer will reduce store districts and redirect payroll to front-line staff hours to improve customer experience. LVMH (LVMUY) - Bernard Arnault appointed his son Antoine to LVMH’s executive committee, reinforcing the family’s role in the luxury group’s future. Antoine, who oversees image and sustainability, will join his father and sister Delphine on the committee, according to a statement. Kering (PPRUY) - Kering reported accelerating sales momentum in Q4, amid its continued efforts to revive Gucci. Group sales totalled EUR 3.905bln (-9% Y/Y vs the -10% in Q3); Gucci posted a -16% Y/Y sales decline, while comp revenue at Gucci fell 10% in Q4 (exp. -10.4%). Kering expects to return to growth this year. Tesla (TSLA) - Tesla’s head of North America sales is leaving the company after a year marked by turnover in the role. Raj Jegannathan, a vice president appointed last year to oversee regional sales, said in a LinkedIn post that he was departing the EV maker, BBG reports. BYD Company (BYDDY) - BYD joined hundreds of companies seeking refunds for duties paid under President Trump’s import tariffs. Its US units filed a lawsuit in the US Court of International Trade in January arguing that executive orders underpinning the tariffs are invalid, making the collection of the duties unlawful. Toyota (TM) - Toyota Finance Corp. scrapped a planned JPY-denominated corporate bond issuance after previously postponing the sale in January, when it had aimed to return to the market after mid-February. Lead manager Daiwa said preparations were halted due to company-specific reasons. Honda (HMC) - Honda maintained its annual profit guidance after weak sales and US tariffs weighed on results. Q3 operating income was JPY 153.4bln, beating estimates. The automaker reiterated FY operating profit view of JPY 550bln (vs JPY 1.21tln last fiscal year). Goodyear (GT) - Shares fell 4.2% in extended trading, as traders focused on Q4 earnings miss despite revenue slightly ahead of expectations. Q4 adj. EPS 0.39 (exp. 0.49), Q4 revenue USD 4.92bln (exp. 4.85bln); saw an insurance recovery of USD 56mln, or 0.19/shr (vs 0.38 Y/Y). Revenue was supported by execution under its Goodyear Forward plan, with management noting the highest segment operating income and margin achieved in more than seven years. CEO noted ongoing industry challenges, adding that while conditions remain difficult entering Q1, it is operating with greater focus and discipline on controllable factors. INDUSTRIALS: US Defence Contracts - The Pentagon warned major defence contractors that it is reviewing their performance to identify firms failing to meet contract obligations, WSJ reports. The move follows a January executive order from President Trump threatening to cancel contracts at underperforming companies that conduct share buybacks or pay dividends. Wabtec (WAB), CSX (CSX) - CSX signed a USD 670mln deal with Wabtec to upgrade its fleet, covering 100 new Evolution Series locomotives, 50 modernised units and digital solutions. The agreement includes converting D9 locomotives from DC to AC traction and deploying Trip Optimiser systems to improve fuel efficiency, tractive effort and reliability. AECOM (ACM) - Q1 adj. EPS 1.29 (exp. 1.16), Q1 revenue USD 3.83bln (exp. 3.53bln). Backlog +9% Y/Y, book-to-burn ratio of 1.5, reflecting strong demand and wins on large, complex projects. Raised its outlook; sees FY26 adj. EPS between 5.85-6.05 (exp. 5.26; prev. saw 5.65-5.85), and sees FY26 adj. EBITDA between USD 1.27-1.305bln (prev. saw USD 1.265-1.305bln). Reiterated long-term targets, including a 20%+ margin exit rate by FY28, and adj. EPS growth of 15%+ CAGR from 2026-2029. RTX (RTX) - RTX was awarded a USD 230.56mln US Navy contract, covering long lead time materials, parts, components and related efforts to protect the F135 Lot 20 propulsion system delivery schedule. ENERGY: EPA - The Environmental Protection Agency plans this week to repeal the Obama-era endangerment finding, a 2009 determination that greenhouse gases endanger human health and welfare. The policy provides the legal basis for multiple emissions regulations, including federal standards for cars and trucks, and its removal would mark President Trump’s most significant rollback of US climate policy. BP (BP) - BP suspended its quarterly share buyback to strengthen its balance sheet amid weaker oil prices; the last time BP did not launch a quarterly buyback was in 2020. BP also said it was deepening cost-cutting; it raised its cost-reduction target by up to USD 1.5bln through the end of 2027. It reported Q4 net income of USD 1.54bln (exp. 1.53bln), and adj. EPS of 0.10 (exp. 0.099); it also lowered 2026 capex to the lower end of its guided range. Chevron (CVX) - Chevron acquired a 22k acre ranch in West Texas whose owner had accused the company of negligently spilling toxic water and crude oil on the property. The sale of Ashley Watt’s Antina Ranch was recorded on 3rd February, with the buyer listed as Crane Property Holdings, which shares an address with Chevron, Bloomberg reports. No price was disclosed. Mercuria Energy Group - Mercuria is close to acquiring a refinery and hundreds of fuel stations in Argentina from Raizen, according to Bloomberg. The assets include Raizen’s Dock Sud refinery near Buenos Aires. No terms were disclosed. MATERIALS: PLS Group (PILBF) - PLS signed a lithium offtake agreement with Canmax Technologies, becoming the first Australian miner to secure a supply deal with a guaranteed minimum price. PLS will receive an upfront USD 100mln payment to secure two years of supply, with an option to extend by 12 months. China Coal Output - China’s main coal industry body expects lower imports and potentially higher domestic output in 2026 after Indonesia restricted shipments to support prices. The China Coal Transportation and Distribution Association cut its import forecast to 465mln tons (from 480mln it projected earlier). HEALTHCARE: Philips (PHG) - Philips targets an operating margin in the mid-teens by 2028 and expects comparable sales growth in the mid-single-digits between 2026 and 2028, setting new adj. Ebita goals ahead of an investor day. The company also forecasts comparable sales growth of 3% to 4.5% this year and plans to propose extending CEO Jakobs’ tenure. AstraZeneca (AZN) - AZN expects further profit growth this year, supported by cancer drug sales, as it offsets a patent expiry on a diabetes treatment; it said adj. EPS should rise by a low double-digit percentage (in line with expectations), and FY26 revenue seen up by mid-to-high single digits; Q4 profit and revenue broadly met estimates, with core EPS at 2.12 (exp. 2.14), and Q4 revenue at USD 15.5bln (exp. 15.46bln). Regenxbio (RGNX) - FDA rejected its gene therapy for Hunter syndrome. The regulator said the company’s clinical trial data were insufficient to support approval for the rare disease.