Newsquawk Daily US Equity Opening News - China criticises US AI slowdown calls; SYY launches USD 1bln stock offering

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. SUPPLY: US sells USD 13bln of 20yr bonds. ENERGY: After the US close, API will release its weekly energy inventory data. US EQUITY NEWS: INDEX: Wells Fargo cuts its 2026 year-end S&P PT to 7,700 (prev. 7,950); Upgrades US Healthcare to 'Overweight' from 'Neutral' and downgrades US Tech to 'Neutral' from 'Overweight'. 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) - CEO 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) - Awarded USD 875mln for the second option year of the US Navy’s Next Generation Enterprise Network Service Management, Integration and Transport contract.# Salesforce (CRM) - Says it will integrate Nvidia (NVDA) NeMoTron-based models and accelerated computing into Missionforce, with fine-tuned NVIDIA models available to select customers in October 2026. 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. 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) - 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 2026 (USD): Adj. EPS -0.27 (exp. 0.19), Revenue 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 (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. 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. FINANCIALS: Moody’s (MCO) - 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. Co. will have roughly 20k BPD of production, and transaction marks Carlyle’s second major Canadian oil-sector investment in the past year. 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; Co. has begun a search for her replacement. Capital One Financial (COF) - August credit card charge off 4.16% (prev. 4.12% M/M); credit card delinquencies 4.54%. Synchrony Financial (SYF) - August credit card charge off 4.19% (prev. 4.11% M/M); credit card delinquencies 1.78% (prev. 1.69%). JPMorgan (JPM) - August Master Trust net charge-offs: 1.66% (prev.1.58% M/M), credit card delinquencies: 0.80% (prev. 0.81%). Truist (TFC) - Agrees to sell USD 5.5bln of auto loans representing substantially all Regional Acceptance Corporation assets; closing late Q3 '26 or early Q4 '26. Fifth Third Bancorp (FITB) - Says commercial gross attrition remains sub 1%, while consumer and small business attrition is in line with or better than Fifth Thirds normal rates. Sees coming in at upper end of NII, fee guidance for Q3. 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. Wells Fargo (WFC) - Says NIM could be better than guidance in Q3 and loan growth will likely be better than guided for FY26. CONSUMER DISCRETIONARY: Flutter Entertainment (FLUT) - FanDuel said NFL Week 1 delivered its biggest regular-season Sunday ever by active users, setting a new Sportsbook record. Amazon (AMZN) - AWS says it is unable to restore data access in its Bahrain region and in one UAE area; said damage in Bahrain exceeded the design tolerances of the region’s services. It will update UAE recovery in the coming months and expects to update Bahrain in early 2027. CONSUMER STAPLES: Sysco (SYY) - 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) - 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) - 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. 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. 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) - Awarded a USD 1.21bln US Army contract for Precision Strike Missile Increment 2 Early Operational Capability. Boeing (BA) - 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) - 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. Grab (GRAB) - To acquire 60% of Atome Financial for USD 1.49bln. Axon (AXON) - Files to sell USD 1bln of 0% convertible senior notes due 2031. 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. HEALTHCARE: 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), Johnson & 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) - 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. Waystar (WAY) - Reportedly exploring options which include a sale, according to reports. Eli Lilly (LLY) - Will present new data on Foundayo, retatrutide and eloraTZP at EASD 2026; delivered substantial weight loss and A1C improvements in obesity and type 2 diabetes. Vera Therapeutics (VERA) - Trutakna met all prespecified endpoints of the final efficacy analysis of the ORIGIN 3 trial in adults with primary IgA nephropathy, or IgAN, at risk for disease progression. ENERGY: Sempra Energy (SRE), Petrobras (PBR) - Sempra Infrastructure agreed a 20yr LNG supply deal with Petrobras for about 0.8mln T annually from its Port Arthur LNG Phase 2 project. Phase 2 will add roughly 13mln T of annual capacity, lifting total Port Arthur capacity to about 26mln T. Commercial operations are expected in 2030 and 2031. TotalEnergies (TTE FP) - Announced a three-year joint programme with Mistral involving more than EUR 100mln of investment to develop frontier AI models for geoscience work. 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. UTILITIES: CenterPoint Energy (CNP) - Said an unauthorised third party obtained personal information relating to some customers through an external facing system. Electric and gas services remain unaffected. Co. does not currently expect a material financial impact, with cybersecurity insurance expected to offset related costs. MATERIALS: China Aluminium - China’s aluminium output rose 4.7% Y/Y in August, to nearly a record 4mln T, as smelters capitalised on supply disruptions from the Iran war. YTD production exceeded 31mln T, putting the industry on course to challenge the government’s roughly 45mln-T 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. MACRO: Chinese Activity Data - Chinese retail sales rose 0.4% Y/Y in August (exp. 0.8%; prev. 0.6%), 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% (prev. 4.6%; vs. China’s official target of 4.5-5.0%). Chinese Yuan - 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 - 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 - 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. 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. 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.