STOCK SPECIFICS:

• TECH: SK Hynix (SKHY) shares tumbled lower in APAC trading after record profits missed lofty forecasts, with shipment delays, concerns over AI spending sustainability, and uncertainty around shareholder returns outweighing robust memory chip demand. Micron (MU) CEO Sanjay Mehrotra sold a total of 40K shares in two transactions on 24th July for a total USD 37.3mln. NXP Semiconductors (NXPI) shares fell around 3% in afterhours trading, as its beat-and-raise failed to impress investors amid a broader semiconductor sell-off, and a recent pullback from record highs. Seagate Technology (STX) shares rose 1.7% in afterhours trading following a top- and bottom-line beat, as well as constructive guidance. KLA Corporation (KLAC) shares tumbled over 11% in extended trading, despite top- and bottom-line beats, but fell short of lofty investor expectations. Logitech (LOGN SW) Q1 adj. EPS topped expectations, and revenue saw a slight beat; adj. operating income rose 14% Y/Y ex-tariff refunds, supported by double-digit Pointing Devices growth; forecast Q2 revenue slightly below expectations. ASM International (ASM NA) forecast Q3 revenue of about EUR 1.1bln (exp. 994.5mln), and expects H2 revenue growth above 20% vs H1; now sees 2027 sales exceeding its previous EUR 3.7-4.6bln range, supported by AI infrastructure investment, leading-edge logic, foundry and memory demand.
• COMMUNICATIONS: Telefonica (TEF SM) Q2 adj. EBITDA +6.4% to EUR 2.9bln (exp. 2.9bln); raised FY26 adj. operating FCF growth view after leases to above 3% (prev. saw above 2%), supported by Spain and Brazil, while Germany remained pressured after losing a major wholesale contract.
• MATERIALS: Rio Tinto (RIO LN) shares rose overnight after stronger than expected HY profit, surging copper earnings, solid FCF, and an above expected interim dividend; CEO said USD 870mln of productivity benefits supported the strong performance and expects savings to reach USD 1.8bln by year-end, with further efficiencies anticipated; highlighted rising demand for copper, steel, lithium and aluminium from AI-related energy and data centre investment. Glencore (GLEN LN) trading business generated about USD 3.3bln of profit in H1, nearing the top of its USD 3.5bln annual earnings target; execs said the unit is on track to exceed its record USD 6.4bln result from 2022, supported by energy-market disruption and stronger metals prices. BASF (BAS GY) to launch EUR 1bln share buyback, and repay EUR 1.6bln of debt early after its sale of a coatings stake to Carlyle Group (CG) for EUR 5.6bln; backed its FY26 adj. EBITDA guidance of EUR 6.9-7.7bln, and noted that restructuring has eliminated around 7K jobs since 2024.
• FINANCIALS: Visa (V) shares edged lower in extended trading despite stronger revenue and earnings, as job cuts tied to changes in payments technology and AI overshadowed resilient spending and improved FY guidance; shares had been higher earlier in the day on reports of the job cuts. Deutsche Bank (DBK GY) Q2 net profit +10% to EUR 1.64bln (exp. 1.38bln), investment banking revenue +19% (inc. +16% growth in FIC trading, and +36% in origination and advisory); expenses +8%, partly reflecting nearly EUR 100mln from exiting its Indian retail business. Announced a new EUR 500mln buyback, and said its on track to achieve its revenue target. Standard Chartered (STAN LN) reported better-than-expected profit, stronger wealth and global banking income, a higher full-year income target, and fresh shareholder returns, with profits and NII topping expectations; raised FY26 income growth guidance. Perpetual (PPT AT) rejected the latest bid from EQT AB (EQT SS), and will seek an improved offer, Bloomberg reports.
• CONSUMER: Ford (F) shares rose 3.5% afterhours following an earnings beat and raised guidance, driven by operational improvements, resilient pricing, profitable product mix and confidence in its F-Series production recovery. Porsche AG (P911 GY) H1 operating profit +34% to EUR 1.35bln, despite a 5% revenue decline; operating return on sales reached 7.8% (vs FY target range of 5.5-7.5%); said planned job cuts will total about 9K (around 20% of staff) and will incur charges of EUR 300-400mln. Aston Martin (AML LN) Q2 adj. operating loss narrowed to GBP 52mln (exp. 45mln; vs 57mln Y/Y); Valhalla plug-in hybrid sales and cost controls supported results; maintained FY outlook despite US tariffs, Chinese luxury-car taxes and difficult automotive market conditions. Kering (KER FP) Q2 LFL sales +2% to EUR 3.65bln, its first growth since mid-2023, as Gucci’s decline eased and jewellery sales increased; net debt fell to EUR 3.3bln (from EUR 8bln) after selling its beauty division. EssilorLuxottica (EL FP) Q2 revenue +8.7% EUR 7.69bln (exp. EUR 7.75bln); H1 adj. profit +13%, operating margin reached 18.6% (exp. 16.3%); North American growth slowed to 7.2%, while myopia-management sales rose 24%; smart glasses sales nearly doubled. Hermes International (RMS FP) FX adjusted sales rose +6.7% to EUR 4.1bln in Q2, in line with expectations, supported by recovering European tourism and strong US demand. Remy Cointreau (RCO FP) Q1 revenue EUR 223.2mln (exp. 219.7mln), as organic cognac sales rose +7.7%; liqueurs and spirits sales -6.6%; maintained its FY recovery plan for sustained sales growth and a slight operating-margin improvement. Reckitt Benckiser (RKT LN) Q2 LFL sales +4.2% (exp. 3.7%), supported by strong Dettol demand in China and India; maintained FY revenue growth view. Danone (BN FP) Q2 LFL sales +4.2% (exp. 3.6%), supported by high-protein dairy and medical nutrition demand; volume/mix contributed 1.9%, and pricing 2.3%; backed its FY sales growth view after expanding via acquisitions including Huel, Made Group and Kate Farms.
• ENERGY: Eni (ENI IM) raised its share buybacks to EUR 3.4bln (from EUR 2.8bln) after Q2 adj. net profit more than doubled to EUR 2.3bln (exp. 2.09bln).
• INDUSTRIALS: Saint Gobain (SGO FP) Signed a framework agreement with Microsoft (MSFT), and enhanced leadership in AI for construction.
• NOTABLE BROKER UPDATES: Sika (SIKA SW) upgraded at JPMorgan; Kering (KER FP) upgraded at HSBC. Diageo (DGE LN) downgraded at Deutsche Bank.

DAY AHEAD:

• DATA: In Europe, UK BoE Money and Credit stats for June are due. In North America, weekly MBA mortgage applications.
• CENTRAL BANKS: Fed expected to hold target range unchanged (exp. 3.50-3.75%, prev. 3.50-3.75%); Chair Warsh will give a post-policy announcement press-conference; BoC releases July meeting minutes; ECB publishes its Wage Tracker.
• SUPPLY: Germany auctions EUR 6bln of 2036 Bunds; US sells USD 30bln of 2-year FRNs.
• ENERGY: DoE energy inventory data will be published; after hours on Tuesday, API data reportedly showed headline crude stocks posting a surprise build of +3.3mln bbls (exp. -1.4mln), Cushing stocks drawing down by -0.3mln bbls, distillate inventories seeing a build of +0.4mln bbls (exp. +0.6mln), and gasoline stocks posting a surprise build of +0.9mln bbls (exp. -1.2mln).
• PREVIEW - FOMC POLICY ANNOUNCEMENT (19:00BST/14:00EDT): The Fed is expected to leave rates unchanged at 3.50-3.75%. Money markets currently price a c.36% probability of a hike, and 36bps of tightening is implied by the end of the year. A Reuters poll found all 104 surveyed see a hold, with 78 seeing no change through the year, and only six expecting cuts. That said, 66% now consider the risk of a hike “high”, a marked shift from the “low” sentiment in the June poll. Our full Fed preview is here.