Daily US Equity Opening News - China criticises US AI slowdown calls; SSNLF urged to cancel discounted preferred shares; AAPL & WBD win Emmy awards; C raises FY26 ROTCE outlook; SYY launches USD 1bln stock offering; SRE signs 20yr LNG supply deal with PBR

DAY AHEAD: EVENTS: US Treasury Secretary Bessent will testify on the State of the International Financial System before the House Financial Services Committee at 10:00EDT/15:00BST. DATA: In Europe, Germany ZEW economic sentiment headline is seen at 37 (prev. 34.2), and current conditions at -52.2 (prev. -61.1); the Eurozone ZEW is seen at 39.9 (prev. 31.4). Eurozone trade balance (prev. EUR 8.6bln) data is also due. In North America, weekly ADP employment stats are due (prev. 12K). The NY Fed manufacturing index will be published (prev. 20.60). Canada will release final wholesale sales data (-0.6% M/M, prev. 2.8%). CENTRAL BANKS: ECB’s Cipollone participates in a panel discussion. SUPPLY: US sells USD 13bln of 20yr bonds. UK auctions GBP 2bln 2029 and 2040 debt via tender. Germany sells EUR 5bln of 2028 Schatz. ENERGY: After the US close, API will release its weekly energy inventory data. GEOPOLITICS: US-Japan - Japan is considering raising defence spending to 3.5% of GDP, potentially over 10 years, while a 3% target still remains possible, Bloomberg reports. Spending has already reached almost 2% of GDP, and 3.5% could imply around JPY 24tln annually, more than double current levels, potentially increasing fiscal and bond market concerns, Bloomberg said. US Defence Supply - A Pentagon Inspector General report said US munitions use in the Iran conflict has created strategic inventory shortfalls and exposed industrial-base bottlenecks. The Defence Department estimated USD 22.3bln of munitions had been expended by late June, with total war costs above USD 33bln. Procurement and production measures are being accelerated. MACRO: Fed Reserve Management - The Fed extended its pause on Treasury-bill purchases for reserve management purposes through 14th October, while planning about USD 15.6bln of reinvestment purchases. Analysts said that the move signals comfort with reserve levels and funding-market conditions, and does not indicate a change in monetary policy or balance sheet strategy. Chinese Activity Data - Chinese retail sales rose 0.4% Y/Y in August (exp. 0.8%; prev. 0.6%), while fixed-asset investment fell 7.2% YTD (exp. -7.2%; prev. -6.7%), while the jobless rate rose to 5.3% (from 5.2%). Industrial output climbed 5.2% (exp. 4.8%), driven by exports. ING said weak Chinese consumption and investment continued to weigh on growth, while resilient external demand supported industrial activity. The bank said Q3 GDP is likely to remain near or below the lower end of the target range. After the data, Goldman Sachs cuts its China 2026 GDP growth forecast to 4.5% (from 4.6%; vs China’s official target of 4.5-5.0%). Chinese Yuan - China’s PBoC strengthened the yuan reference rate for a fifth consecutive day to 6.7670 vs the USD. Analysts said that the move reflects efforts to limit currency volatility and support gradual appreciation ahead of the Xi-Trump summit on 24th September. BoE - The BoE is preparing to stop selling 20yr and 30yr gilts under QT, while continuing sales of shorter maturities, the Telegraph reports. The change could save about GBP 2.5bln annually by decade-end. Short- and medium-term bonds would instead be sold directly to the DMO. The Telegraph says an announcement is expected alongside Thursday’s rate decision. UK Jobs - The UK added 67k jobs in July (prev. 83k), with the unemployment rate remaining at 4.9% (exp. 5.0%); average earnings ex-bonus were unchanged at 3.5% in the three months through July (exp. 3.5%), while including bonuses eased to 3.9% (exp. 3.9%, prev. 4.2%). The more timely claimant count change for August printed 27.8K (exp. 8.3K), while HMRC Payrolls were down by -26K in August (prev. -19K). The UK stats office said that the labour market remains broadly stable, though payroll employment continues to edge lower, particularly in retail and hospitality. Vacancies remain near decade lows outside the pandemic, with labour costs weighing on small-business hiring. Regular wage growth is stable, while total pay growth has slowed to its weakest rate in nearly six years. Japan Auction - Japan’s 20yr bond auction drew stronger than average demand; bid-to-cover rose to 4.01x (vs a 12-month average of 3.73x), while the auction tail narrowed to 0.15. Analysts said that elevated yields supported buying, though rising oil prices, global bond weakness and expected BoJ tightening continue to pressure longer dated Japanese debt ahead. TECH: China AI, Anthropic, OpenAI, xAI - Chinese state media accused Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman and SpaceXAI CEO Elon Musk of using AI slowdown calls to preserve US dominance. An article in the China Daily called the push “self-serving,” while China’s Foreign Ministry rejected “fearmongering.” Beijing separately released an updated AI safety framework warning about risks from recursive self-improvement. AI guardrails - House Speaker Johnson said Congress may need AI guardrails, following President Trump’s rejection of industry warnings. Johnson said legislation would require bipartisan work and should protect against harm while preserving US competitiveness. Bipartisan proposals include catastrophic risk safeguards, model shutdown mechanisms, mandatory testing, and federal safety reporting. Nvidia (NVDA) - Nvidia CEO Jensen Huang agreed with President Trump’s criticism of calls to slow AI development, though still said that AI safety whistleblowers should be taken seriously. Trump called AI danger concerns a “hoax” and suggested slowdown efforts could benefit China. Huang said the debate creates a false choice between rapid innovation and safety. Samsung Electronics (SSNLF) - South Korean hedge fund Life Asset Management urged Samsung to repurchase and cancel preferred shares until their discount to common stock disappears. The fund wants the board to review the plan in October and cancel shares by December, proposing up to KRW 73tln of Samsung’s shareholder-return package be directed to buybacks. Leidos (LDOS) - Leidos was awarded USD 875mln for the second option year of the US Navy’s Next Generation Enterprise Network Service Management, Integration and Transport contract. COMMUNICATIONS: Apple (AAPL), Warner Bros. Discovery (WBD) - Apple’s Widow’s Bay won 14 Emmys including best comedy, while Matthew Rhys won both best comedy actor and best limited-series actor. Warner Bros. HBO Max’s The Pitt won best drama, with Noah Wyle taking best drama actor. Jean Smart won best comedy actress, while Rhea Seehorn won best drama actress. US-Thailand, China - The US is funding a feasibility study for a trans-Pacific submarine cable linking the US with Thailand via up to five Southeast Asian countries, Bloomberg reports. The proposed 11,500 mile THUS system would avoid the South China Sea, and aims to support Thailand’s data centre, cloud and AI sectors, and strengthen network resilience amid US-China competition over digital infrastructure. Alphabet (GOOG) - Former Google DeepMind researcher Bilal Chughtai warned AI could cause catastrophic harm and potentially “kill us all.” Chughtai, who worked on AI safety and alignment, said he remains optimistic safe development is possible and has joined AI-safety non-profit BlueDot Impact. Alphabet (GOOG) - Alphabet’s Waymo plans to launch a fully autonomous robotaxi service in Tokyo in 2027 with Go and Nihon Kotsu, Bloomberg reports. The service will start with a small fleet and expand gradually to 100 vehicles. Waymo still needs permits and licences, as Japanese rules currently require a human driver regardless of autonomy level. Dave & Buster’s (PLAY) - Dave & Buster’s shares fell 12% in extended trading after quarterly earnings and revenue missed expectations, comparable sales declined and management flagged a pullback in spending and investment. Q2 adj. EPS -0.27 (exp. 0.19), Q2 revenue USD 544.1mln (exp. 556.83mln). Comp sales -2.9% Y/Y, while management said food and beverage sales and special events sales continued to grow and remodelled stores continued to outperform the broader system. CEO said overall same-store sales improved in July, and continued to improve during Q3 to date. Plans to pull back new-store development and other spending. Exec said net capex next year could be USD 150mln or less. BCE Inc. (BCE) - BCE plans to expand its Saskatchewan data centre campus to as much as 1.2GW, Bloomberg reports. BCE and the provincial government agreed to develop up to 900MW of additional capacity beyond 300MW already contracted to CoreWeave (CRWV) and Cerebras (CBRS). Total investment in the Saskatchewan AI project could eventually exceed CAD 50bln. FINANCIALS: Citi (C) - Sees FY26 ROTCE a bit above 11% (prev. saw 10-11%), FY26 efficiency ratio expected slightly better than 60%. Sees Q3 investment banking revenue growth in the low single digits Y/Y, with some upside possible depending on deal closings, while markets revenue is tracking mid-single-digit growth Y/Y. CFO said YTD performance and current-quarter momentum support returns finishing above the prior range. Citi also expects 2026 share buybacks to exceed the roughly USD 13bln repurchased in 2025, after buying back about USD 10.3bln across the first two quarters, and announcing a new USD 30bln repurchase programme. Moody’s Corporation (MCO) - Moody’s agreed to acquire a minority stake in Philippine Rating Services. Terms were not disclosed. Moody’s said the investment will support its exposure to growing Philippine and Southeast Asian debt markets. PhilRatings will continue operating independently. Separately, Moody’s City of London HQ has been put up for sale for about GBP 330mln. Carlyle Group (CG) - Carlyle-backed Avenrock Energy will acquire Canadian oil and gas producer Parallax Energy Operating in a deal valuing it at about CAD 1bln, Bloomberg reports. The Calgary-based company will have roughly 20K bpd of production. The transaction marks Carlyle’s second major Canadian oil-sector investment in the past year. Binance - The DoJ is seeking forfeiture of USD 61mln allegedly generated from Iranian black-market oil sales and laundered through Binance. Federal prosecutors allege Iran laundered more than USD 1.5bln in illicit oil proceeds, with two Chinese entities using Binance accounts to funnel funds to Iran. UK Banks - UK banks are launching a fundraising round seeking about GBP 50mln for the UK Payments Delivery Company, Sky News reports. The vehicle will develop future payments infrastructure that could eventually become a domestic alternative to Mastercard (MA) and Visa (V). Nineteen companies, including major UK banks, Citi (C), JPMorgan (JPM), Nationwide, PayPal (PYPL) and Wise (WIZEY), have provided initial funding and sponsorship. Crown Castle (CCI) - CFO Sunit Patel will retire on 31st March 2027; chief commercial officer Kris Hinson will succeed him from 1st April 2027. COO Cathy Piche will step down on 23rd September, and remain as a special adviser until 22nd February 2027. The company has begun a search for her replacement. AXA (CS FP) - AXA targets 7-9% underlying EPS CAGR, 15-17% underlying ROE and mid-teens book value per share CAGR for 2027-29; for FY26, it expects underlying EPS growth and underlying ROE at the top end of its respective 6-8% and 14-16% target ranges. CONSUMER CYCLICAL: Flutter Entertainment (FLUT) - Flutter Entertainment’s FanDuel said NFL Week 1 delivered its biggest regular-season Sunday ever by active users, setting a new Sportsbook record, reflecting strong fan engagement during the season’s opening weekend. CONSUMER DEFENSIVE: Sysco (SYY) - Sysco announced a USD 1bln common stock offering to fund part of its pending Jetro Restaurant Depot acquisition. The offering is not contingent on the deal closing. The shares were marketed at USD 80.20-81.90. Target (TGT) - Target appointed Mark Weinstein as chief marketing and guest experience officer, effective immediately. Weinstein joins from Hilton (HLT), where he served as global chief marketing officer. Puig Brands (PUIG) - Puig agreed to buy the 50% of Isdin it does not already own from Esteve for EUR 1.2bln; Puig will pay EUR 900mln at closing and EUR 300mln in Q1 2029. The deal gives Puig full control of Isdin and expands its skincare presence, which accounted for 11% of 2025 group revenue. ENERGY: US Fuel Exports - Interior Secretary Burgum said an export ban on diesel, gasoline or crude would not lower domestic fuel prices. He said the administration would consider restrictions only if stopping exports directly reduced prices at home. Sempra Energy (SRE), Petrobras (PBR) - Sempra Infrastructure agreed a 20yr LNG supply deal with Petrobras for about 0.8mln tonnes annually from its Port Arthur LNG Phase 2 project. Phase 2 will add roughly 13mln tonnes of annual capacity, lifting total Port Arthur capacity to about 26mln tonnes. Commercial operations are expected in 2030 and 2031. BP (BP/ LN) - BP Whiting Refinery said talks with United Steelworkers Local 7-1 were constructive; BP is proposing a six-year agreement including a 150-day industrial peace period before any future strike or lockout. TotalEnergies (TTE FP) - TotalEnergies announced a three-year joint programme with Mistral involving more than EUR 100mln of investment to develop frontier AI models for geoscience work. INDUSTRIALS: CATL (CYATY), Geely (GELHY) - CATL received Chinese regulatory approval to acquire an undisclosed stake in Geely-backed Chongqing Yaoning New Energy Technology, Bloomberg reports. The approval signals Beijing’s support for battery-sector consolidation amid concerns over excess capacity and price competition. China has also urged manufacturers to curb expansion and reportedly suspended new battery projects pending a year-end capacity review. European Space - Of note for Airbus (EADSY), Thales (THLLY), Leonardo (FINMY), Bloomberg reports that Europe is accelerating efforts to reduce reliance on US space capabilities, including developing reusable rockets, expanding Ariane 6 and Vega-C launches, and building IRIS2 as a Starlink alternative. Separately, Airbus APAC President said it does not see any softening in demand or deliveries due to geopolitical or supply chain headwinds. Lockheed Martin (LMT), RTX (RTX) - Germany and the US are expected to sign an agreement enabling European companies to produce certain US weapons under licence. Germany is pushing to manufacture PAC-3 interceptors (LMT) and Tomahawk missiles (RTX) in Europe, though Lockheed Martin and RTX’s Raytheon have shown little interest so far. Germany will also discuss broader NATO and transatlantic defence cooperation. Lockheed Martin (LMT) - Lockheed was awarded a USD 1.21bln US Army contract for Precision Strike Missile Increment 2 Early Operational Capability. Boeing (BA) - Boeing was awarded a contract modification worth up to USD 552.1mln for the US Navy, covering production and delivery of three MQ-25A Stingray Lot One aircraft and long-lead components for three Lot Two aircraft. BAE Systems (BAESY) - BAE Systems was awarded a USD 818.36mln US Army contract modification for armoured multi-purpose vehicles, taking the contract’s cumulative value to USD 3.3bln. FedEx Freight (FDXF) - Michael Rodgers named EVP and chief commercial and technology officer, effective immediately. His expanded role adds responsibility for sales, customer experience, marketing and communications while retaining leadership of technology. MATERIALS: China Aluminium - China’s aluminium output rose 4.7% Y/Y in August, to nearly a record 4mln tonnes, as smelters capitalised on supply disruptions from the Iran war. YTD production exceeded 31mln tonnes, putting the industry on course to challenge the government’s roughly 45mln-tonne annual capacity limit and potentially forcing output restraint later this year. Indonesia Nickel - Nickel Industries halted the ramp-up of its Excelsior Nickel Cobalt plant in Sulawesi due to water shortages. The facility is expected to operate at 30% of nameplate capacity while constraints persist. Indonesia’s El Nino-linked drought is also threatening broader nickel output, with Morowali Industrial Park warning production could fall 30-40% without new water sources. UTILITIES: CenterPoint Energy (CNP) - CenterPoint Energy said an unauthorised third party obtained personal information relating to some customers through an external facing system. Electric and gas services remain unaffected. The company does not currently expect a material financial impact, with cybersecurity insurance expected to offset related costs. HEALTHCARE: Abbott Laboratories (ABT) - Abbott agreed to pay USD 385mln to settle US allegations over manufacturing practices at two facilities, including its Sturgis infant-formula plant. Abbott will pay USD 348.7mln to the US and USD 36.3mln to states. The settlement is not an admission of fault, and Abbott said no unopened distributed formula tested positive for Cronobacter sakazakii. GSK (GSK) - GSK agreed to acquire a potential best-in-class trispecific T-cell engager from Chimagen Biosciences for development and commercialisation in multiple myeloma. The programme is expected to enter Phase I trials in 2027. Contineum Therapeutics (CTNM), Jonhson & Johnson (JNJ) - Contineum Therapeutics said the Phase II MOONLIGHT-1 trial of JNJ-5120/PIPE-307 in major depressive disorder did not meet its primary efficacy endpoint. The treatment was well tolerated with no new safety signals. Johnson & Johnson, which is developing the drug under licence, is reviewing exploratory endpoints and the overall data to determine next steps. Ascendis Pharma (ASND), Novo Nordisk (NVO) - Ascendis Pharma plans to advance once-monthly TransCon Semaglutide for obesity and type 2 diabetes after regaining exclusive metabolic and cardiovascular rights from Novo Nordisk. The terminated collaboration will return all related licences to Ascendis with no continuing financial obligations between the companies. Separately, Ascendis authorised a USD 400mln share buyback. DexCom (DXCM) - DexCom promoted CFO Jereme Sylvain to chief operating officer, while retaining his finance responsibilities. Sanofi (SNY) - Health Canada issued an alert over serious and life-threatening viral reactivation cases linked to Sanofi’s TZIELD. TZIELD is now contraindicated in patients with an active viral infection, any active serious infection, or who are immunocompromised.