EUROPEAN OPEN: China luxury sales fall in July; JD/ LN cuts FY profit guidance; RI FP faces India factory hygiene scrutiny; BN FP gets UK clearance for Huel deal; AGN NA raises dividend, expands buyback; FNTN GY nears Waipu.TV minority buyout

EUROPEAN OPEN: European equities opened mixed; healthcare leads, travel and leisure lags. APAC stocks were up overnight after the US Treasury Wednesday said it would at least double long-dated debt buybacks, dragging longer-dated yields lower; MSCI’s Asia-Pacific index gained, led by South Korea’s KOSPI, while US 30yr and 10yr yields continued to fall, albeit more slightly. The USD steadied after falling to a three-month low on Wednesday. JPMorgan strategists warned that the US Treasury’s decision to at least double bond buybacks to curb long-term borrowing costs risks appearing to lack credibility without underlying fiscal consolidation; JPM sees a funding gap of more than USD 3.5tln in coming fiscal years, cautioning that the impact on long-end yields is likely to be fleeting absent any deficit reduction. Gold fell overnight, but held near USD 4,500/oz, following its biggest gain in six months on Wednesday, supported by the US Treasury’s announcement. Copper held above USD 14,000/tonne after the Treasury intervention supported metals; copper rose after earlier supply pressures eased, as large tonnages arrived at LME warehouses. Crude futures rose for a fifth day after US President Trump announced measures aimed at intensifying economic pressure on Iran; Brent approached USD 92/bbl, and WTI traded near USD 85/bbl. Trump threatened “tremendous economic consequences” on any country helping or doing business with Iran, describing the move as “economic D-Day” and the most crushing economic operation ever taken against any country. The warning followed expiry of the 60-day ceasefire on Monday with no diplomatic resolution, and extends Operation Economic Fury launched in April. Iranian official Rezaei said withdrawing from the Nuclear Non-Proliferation Treaty would be the best response to Trump’s escalation of economic warfare; Iran Foreign Minister Araghchi said persisting with failed policies would produce further failures and greater hostility from Iranians. In data, German PPI rose by 1.1% M/M in July (exp. 0.7%), while the annual rate climbed to 3.0% Y/Y (exp. 2.7%, prev. 1.8%). STOCK SPECIFICS: CONSUMER CYCLICAL: Of note for luxury goods makers, sales at China’s 25 biggest luxury labels fell more than 10% in July, as China’s campaign to tax offshore wealth dampened spending by wealthy consumers, Bloomberg reports. LVMH’s (MC FP) Louis Vuitton and Dior, Kering’s (KER FP) Gucci, Bottega Veneta and Balenciaga all recorded double-digit declines, while Hermes swung from gains to declines. The slump coincides with tighter controls on cross-border stock trading and demands for citizens to pay levies on offshore assets. JD Sports (JD/ LN) cut its FY27 pre-tax profit guidance to GBP 700-800mln (from GBP 750-850mln) after a weaker Q2; group LFL sales -3.1%, organic sales -1.3%; North America was hit by weaker core consumer sentiment, while UK sales improved, led by apparel and accessories. CONSUMER DEFENSIVE: Coty (COTY) shares fell 4.3% in extended US trading after forecasting weaker than expected quarterly earnings, and withholding FY guidance amid its business overhaul, outweighing a stronger than expected revenue performance. India’s food safety regulator inspected a Pernod Ricard (RI FP) factory and collected liquor samples as part of a broader investigation; a source reportedly said the company needs to improve hygiene standards. The UK Competition and Markets Authority has cleared Danone’s (BN FP) proposed acquisition of Huel. FINANCIALS: Aegon (AGN NA) H1 operating profit of EUR 804mln (exp. 752mln), operating capital generation after expenses of EUR 416mln (exp. 376mln); raised its interim dividend +11% to EUR 0.21/shr, increased its buyback by EUR 150mln; it also announced that CFO Duncan Russell will leave in April 2027. COMMUNICATIONS: Freenet (FNTN GY) is nearing a deal to buy out minority investors in streaming platform Waipu.TV after abandoning IPO plans; Bloomberg says a transaction could be announced within days, though talks may still be delayed or fail. Waipu.TV was previously valued at up to EUR 1.5bln. HEALTHCARE: GN Store Nord (GN DC) Q2 revenue of DKK 2.17bln (exp. 2.16bln), EBITA fell to DKK 110mln (from DKK 164mln Y/Y); raised FY26 adj. EBITA margin view to 9-10% (from 8-9%), and narrowed organic revenue growth view to 0-3% (from 0-6%). EX-DIVIDENDS: Going ex-dividend today: Imperial Brands (IMB LN), Investec (INVP LN), Centrica (CNA LN), Anglo American (AAL LN), ConvaTec (CTEC LN), Legal & General (LGEN LN), InterContinental Hotels (IHG LN), Entain (ENT LN). NOTABLE BROKER UPDATES: Michelin (ML FP) upgraded at JPMorgan; Sartorius Stedim Biotech (DIM FP) upgraded at UBS; Jyske Bank (JYSK DC) upgraded at SEB; Nokian Renkaat (TYRES FH) upgraded at JPMorgan; Huber & Suhner (HUBN SW) upgraded at Vontobel. Merck KGaA (MRK GY) downgraded at UBS. DAY AHEAD: DATA: In Europe, Eurozone Q2 labour cost index (prev. 3.2% Y/Y); UK CBI industrial trends orders (prev. -45). In North America, weekly US initial jobless claims (exp. 210K, prev. 209K) and continuing claims (exp. 1,790K, prev. 1,777K); Philly Fed manufacturing index (prev. 41.4); CB leading index (prev. -0.2% M/M); Canada PPI (exp. -0.4% M/M, prev. -1.4%; prev. 12.4% Y/Y). CENTRAL BANKS: Fed’s Daly (2027 voter) will give an interview to Bloomberg. SUPPLY: France auctions EUR 10.5–12.5bln of 2029, 2031, 2032 and 2034 debt, as well as EUR 1–1.5bln of 2032, 2043 and 2047 OATeis. US sells USD 8bln of 30-year TIPS. ENERGY: WTI September 2026 futures expire; EIA reports weekly natural gas stocks change (prev. +36BCF). EARNINGS: Notable US corporates reporting today include: Walmart (WMT), Alibaba (BABA), Deere (DE), Ross Stores (ROST).