European markets open to close: Treasury yields, Ubisoft shares

Microsoft has submitted a new takeover bid for Activision Blizzard to the UK’s Competition and Markets Authority. Under the amended agreement, Microsoft will transfer cloud streaming rights to all current and new Activision PC and console games released over the next 15 years to Ubisoft.

British manufacturing output fell by the most since September 2020 in the three months to August, according to a survey by the Confederation of British Industry.

Its scale output fell to -19 from +3, with the automotive and mechanical engineering industries among the worst performers.

Meanwhile, total orders were “below normal levels” in August.

“With production volumes contracting at their fastest rate since the COVID-19 pandemic and order books deteriorating, this survey makes for a bleak read,” said Martin Sartorius, economist at the Confederation of British Industry.

“However, easing price pressures will bring some relief to many manufacturers and the broader economy.”

– Jenny Reed

Timothy Ash, chief emerging markets sovereign strategist at Bluebay Asset Management, discusses the Chinese tensions and says the two countries “don’t want to isolate and anger the West over the BRICS”.

Mark Hefell, chief investment officer at UBS Global Wealth Management, discusses the outlook for the US economy.

European stock markets opened higher before extending gains in early trade, with the Stoxx 600 up 0.9% at 9:07 AM GMT.

All sectors posted gains and technology stocks rose 2%, after upbeat sessions in the US and Asia Pacific markets.

French game company Ubisoft Entertainment rose 6.6% at 8:32 AM GMT, after Microsoft unexpectedly presented UK regulators with a new deal to acquire Activision Blizzard.

Under the restructured deal, Microsoft will not acquire the cloud rights to existing Activision PC and console games, or to new games released by Activision over the next 15 years. The rights will instead be transferred to Ubisoft prior to any acquisition.

Microsoft’s initial offer to buy the Call of Duty game juggernaut has been rejected by UK authorities. A decision on the new deal is scheduled for October 18.

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Jenny Reid, Arjun Kharpal

Woodside Energy CEO Meg O’Neill discusses Australian unions’ plan to hit gas rigs and says the company is optimistic about being able to avoid a major industry move, adding “but again, at the end of the day” that would be the unions’ call if they wanted to use some of those tools. available to them.”

European stock markets are set to open higher on Tuesday, according to data from IG.

The FTSE 100 is up 19.5 points at 7278, the German DAX is up 86.6 points at 15,683, and the French CAC 40 is up 39 points at 7,236.

Shares of SoftBank Group rose as much as 3.36% on Tuesday after news that its chip unit Arm has filed for a Nasdaq listing.

Arm did not disclose the share price and therefore does not yet have a valuation for the listing, but Reuters said it is expected to be the “biggest of the year”.

SoftBank shares pared gains later in the session and are currently up 2.16%.

US Treasury yields rose on Monday as investors remain concerned that interest rates may remain higher for longer than expected. The yield on the 10-year Treasury rose more than 9 basis points to 4.34%, trading near levels last seen in 2007.

– Piya Singh

UBS has identified stocks at risk of dragging one of Europe’s largest stock indexes down 10% by the end of this year.

The Swiss investment bank said the top performers in 2023, such as chip stocks and luxury goods makers, are at risk of significant declines by the end of the year.

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– Ganesh Rao

Federal Reserve Chairman Jerome Powell may not be focusing on what’s best for him in his remarks from Jackson Hole, Wyoming, later this week, according to Mohamed El-Erian, chief economic advisor to Allianz.

“It’s more likely that he will probably talk about short-term monetary policy issues,” El-Erian said on CNBC’s “Squawk on the Street.” “I don’t think that’s the best thing to do, because the situation is very delicate at the moment.”

However, El-Erian said the central bank chief could be helped in the “target-rich environment,” adding that there was “a lot” he could talk about.

– Alex Haring