EUROPEAN OPEN: NOVOB DC raises FY26 sales & profit view; BMW GY cuts autos EBIT margin guidance; CON GY raises adj. EBIT view; AD NA cuts margin & EPS outlook; BARN SW forecasts volume growth

EUROPEAN OPEN: European equities have opened higher after the US Democrats are projected to win control of both chambers of the Congress, though this has raised concerns about tighter regulation of tech and AI; overnight, APAC stocks fell to six-month lows amid these concerns surrounding tighter AI regulation and chip export restrictions. US stock futures pared losses, however; some analysts have suggested that the selling was overdone; ING viewed the initial sell-off as excessive, while UBS has suggested a potential year-end rebound for stocks. The CHF, JPY and gold gained as projected Democratic control of both US congressional chambers weakened the USD. Democrats are set to win control of the House and Senate, including surprise victories in Texas, Ohio and Kansas. The Democrat sweep has fuelled concerns over tougher oversight of AI, banks and cryptocurrencies, alongside potential legislative gridlock, weighing on risk sentiment. Nasdaq futures initially fell by over 2% before paring losses, while US 10yr Tsy yields dropped. Republican victories in Louisiana utility commission races provided partial relief for some AI-linked stocks. US President Trump said he would accept the election result and was prepared to work with Democrats, including on immigration. Trump blamed the Republican defeat partly on the Iran conflict and its unexpected gasoline price consequences. He emphasised his veto powers, ruled out cabinet changes, and claimed he would have won overwhelmingly if on the ballot. Ahead, analysts say that Democratic control of Congress could restrict Trump’s fiscal plans and intensify scrutiny of the technology sector, with the 2027 debt ceiling another potential flashpoint. December Brent futures rebounded to above USD 104/bbl, reversing earlier declines amid uncertainty over US-Iran peace talks and US midterm results. However, futures have pared gains as Europe gets underway. On US-Iran, recent reports have suggested that both sides remain open to diplomacy, although Iran deemed Washington’s response unsatisfactory. In data, China’s RatingDog services PMI fell to 50.8 in October (exp. 51.5; prev. 51.6), its lowest since July. The slowdown reflected weaker business confidence and operational constraints, although new orders continued growing. Firms reduced selling prices despite rising input costs. STOCK SPECIFICS: TECH: Oracle (ORCL) cancelled a USD 7bln five-year AI chip leasing agreement with Tencent (TCEHY) following pressure from the Trump administration, the FT reports; the deal would have provided Tencent access to approximately 100K advanced AI chips across Oracle data centres in Southeast Asia. Advanced Micro Devices (AMD) shares rose by over 6% in extended US trading following stronger than expected quarterly earnings and revenue, driven by accelerating AI demand and robust data centre growth, and were reinforced by upbeat sales guidance and management’s confidence in its ability to meet rising demand. Super Micro Computer (SMCI) shares rose almost 7% in extended trading after stronger than expected quarterly earnings and revenue, driven by surging AI server demand, along with an upgraded FY sales outlook, reflecting continued strength in AI infrastructure spending. Alibaba (BABA), Tencent (TCEHY) and ByteDance are among Chinese firms ordering approximately 6mln Nvidia (NVDA) RTX Pro 5500 chips worth USD 70bln, but expect just 1% delivered within four months, Bloomberg reports; Nvidia is prioritising higher-margin chips amid TSMC (TSM) manufacturing constraints. Chinese buyers estimate deliveries could reach 700K units by end-2027, while increasingly relying on domestic alternatives, Bloomberg said. Siltronic (WAF GY) raised its FY26 sales outlook to broadly flat Y/Y (prev. saw low-to-mid single-digit decline), amid stronger wafer demand and a firmer USD; Q3 sales EUR 355.4mln (exp. 336.7mln), EBITDA EUR 81.3mln (exp. 72mln); FY26 EBITDA margin guidance was narrowed to 22-24% (prev. saw 20-24%), supported by stronger demand for 300mm and 200mm wafers. COMMUNICATIONS: Microsoft’s (MSFT) Xbox division has received bids for Arkane Studios from Ubisoft (UBI FP) and at least two other gaming companies, Bloomberg reports. Xbox is also considering a management buyout, although no agreement has been reached. CONSUMER CYCLICALS BMW (BMW GY) Q3 revenue EUR 30.6bln (exp. 30.6bln), pretax profit EUR 2.08bln (prev. 2.26bln); FY automotive EBIT margin guidance was revised down to between -0.5% and +0.5% (prev. saw 1-3%) and ROCE to between -1% and +1% (prev. saw 1-5%); automotive FCF guidance remains above EUR 2.5bln; deliveries are expected to decline moderately, with EV share rising slightly. Continental (CON GY) Q3 sales EUR 3.5bln (exp. 3.49bln), adj. EBIT EUR 514mln (exp. 487.5mln); raised FY adj. EBIT margin guidance to 13.4-14.0% (prev. saw 12-13.5%), and adj. FCF to EUR 1.0-1.3bln (prev. saw 0.7-1.1bln), while narrowing sales guidance to EUR 13.5-13.9bln (prev. saw 13.2-14.2bln); said higher raw material costs may weigh on Q4 earnings. Of note for autos, Brussels is reportedly demanding that the UK impose tariffs of up to 35% on Chinese-made electric vehicles and align with EU restrictions on Chinese EVs as a condition for granting British carmakers equal access to EU markets, according to The Times. Pandora (PNDORA DC) Q3 sales DKK 6.69bln (exp. 6.59bln), EBIT DKK 1.06bln (prev. 0.88bln); raised FY26 organic growth guidance to 2-3% (prev. saw 0-3%), and EBIT margin to 22.5-23% (prev. saw 22-23%); FY27 EBIT margin targets were set to 14-15%, including one-offs, and 15.5-16.5% excluding them; October LFL growth was 1%. CONSUMER DEFENSIVE: Ahold Delhaize (AD NA) Q3 sales EUR 23.1bln (exp. 23bln), adj. EPS EUR 0.69; lowered its FY26 operating margin guidance to ‘approaching’ 4% (prev. saw ‘around’ 4%), constant-currency EPS growth to low single digits (prev. saw mid-to-high single digits) and FCF to approximately EUR 2.1bln (prev. at least 2.3bln); announced buybacks of up to EUR 1bln of shares. Barry Callebaut (BARN SW) FY25/26 revenue CHF 12.2bln (exp. 12.4bln), net income CHF 157.7mln (prev. 188.4mln); sees FY26/27 volume growth guidance of 1-3%, 30% recurring pretax profit growth, and 3-5% recurring EBIT growth (exp. 5.5%), assuming cocoa prices of GBP 4K/tonne; its Hershey (HSY) contract expiry is expected to reduce volumes by 1%. HEALTHCARE: Novo Nordisk (NOVOB DC) Q3 sales DKK 79.2bln (exp. 73.6bln), operating profit DKK 23.01bln (exp. 26.43bln); Wegovy pill sales DKK 5.39bln (exp. 4.64bln); raised FY26 sales and operating profit growth guidance to between -2% and 2% at constant exchange rates (prev. saw -6% to 0%); elsewhere, Novo appointed Galderma’s Luigi La Corte as CFO. Fresenius (FRE GY) Q3 revenue EUR 5.8bln (exp. 5.79bln), adj. EBIT EUR 638mln (exp. 621.5mln); organic revenue growth reached 5% (exp. 5.6%); expects FY26 core EPS growth in the upper half of its 10-15% guidance range; raised its Group EBIT margin outlook to above 11.5% (prev. saw ‘around’ 11.5%). CVS Health (CVS) plans to separate its 9,000 retail pharmacies from its insurance and pharmacy-benefit businesses by early 2028, WSJ reports; CEO David Joyner will lead CVS Health; CVS Pharmacy will include retail and mail-order pharmacies. Both companies will be publicly traded. MATERIALS: Heidelberg Materials (HEI GY) Q3 revenue EUR 6.41bln (exp. 6.2bln), result from current operations EUR 1.28bln (prev. 1.18bln); reaffirmed FY26 operating profit guidance of between EUR 3.4-3.65bln, and expects to exceed EUR 500mln in savings this year, targeting an additional EUR 300mln by end-2028 amid stronger demand in Europe and North America. DAY AHEAD: EVENTS: South Africa holds municipal elections. DATA: In Europe, Eurozone October HICP is seen rising 0.3% M/M (prev. 0.6%), with the annual rate seen ticking up to 4.0% Y/Y (prev. 3.8%); the supercore measure is seen unchanged at 2.5% Y/Y. Final services PMIs will be released, with the Eurozone expected to ease to 51.7 (prev. 53.0), Germany to 51.7 (prev. 52.9) and France to 48.4 (prev. 51.2), while the UK is seen rising to 53.1 (prev. 52.1); the Eurozone composite PMI is expected at 51.9 (prev. 53.1). In North America, US ISM services is seen little changed at 54.8 (prev. 54.9), with prices paid seen rising to 75.0 (prev. 74.0), new orders at 59.5 (prev. 59.8), and employment at 50.0 (prev. 50.1). The monthly ADP employment change is seen printing 69K (prev. 90K); elsewhere, the US trade deficit is expected to widen a touch to USD -108bln (prev. USD -105.6bln). Weekly MBA mortgage applications are also due (prev. 3.4%). After today’s data, the Atlanta Fed Q4 GDPNow tracking estimate will be updated (prev. 3.7%). In Canada, the trade balance will be released (exp. CAD 4.1bln, prev. CAD 4.2bln). CENTRAL BANKS: The ECB will publish its Q3 wage tracker (prev. 2.768%). Riksbank is expected to hike rates by 25bps to 2.00% (prev. 1.75%), followed by Bunge’s press conference. The NBP is seen unchanged at 3.75% (prev. 3.75%). The BCB is seen unchanged at 13.75%. On the speakers’ slate, ECB chief economist Lane will deliver remarks. SUPPLY: US Treasury Quarterly Refunding Announcement. Germany sells EUR 2bln of 2041 and 2048 Bunds. ENERGY: Weekly DoE energy inventories will be released; afterhours on Tuesday, API data reportedly showed headline crude stocks posting a surprise draw of -5.3mln bbls (exp. +1.9mln), Cushing posting a build of +0.5mln bbls; in the products, gasoline stocks saw a build of +1.4mln bbls (exp. 0.0mln), while distillates saw a surprise draw of -1.2mln bbls (exp. +0.4mln). EARNINGS: Notable corporate earnings due today include: ARM Holdings (ARM), McDonald’s (MCD), QUALCOMM (QCOM), Uber (UBER), McKesson (MCK), CVS Health (CVS), Emerson Electric (EMR), MercadoLibre (MELI), Motorola (MSI), Datadog (DDOG), AppLovin (APP), Allstate (ALL), W.W. Grainger (GWW), Cencora (COR), MetLife (MET), Aflac (AFL), Edwards Lifesciences (EW), Expedia (EXPE), TKO Group (TKO), Nutrien (NTR), Kraft Heinz (KHC).