Before the bell: Buy the rumor and sell the news

Trump takes aim at the Fed again. Keurig Dr Pepper chokes on Douwe Egberts’ coffee. Dredging group DEME raises profit guidance.

Yesterday, the Bel20 (+0.3%) closed with a modest gain. Biotech company Argenx (+4.3%) led the way after reporting yet another set of positive trial results for its blockbuster drug Vyvgart. Earlier this year, Sofina (-0.5%) invested in OrganOx, a British spin-off from the University of Oxford developing technology to safely transplant livers. Yesterday it was revealed that OrganOx will be sold for 1.3 billion euro. Good news for the Boël family holding, though Sofina’s exact profit from the deal remains unknown. The Euro Stoxx 50 dropped 0.8%, dragged down mainly by French names such as Vinci (-5.8%), AXA (-3.8%), and BNP Paribas (-3.5%). In the United States, the S&P 500 and Nasdaq slipped 0.4% and 0.2% respectively. Investors were unimpressed by Keurig Dr Pepper’s (-11.5%) bid for Dutch coffee group JDE Peet’s (+17.5%). The beverage company is considering issuing European debt to finance the deal—a move that could weigh heavily on its balance sheet.

In Asia this morning, Japan’s Topix fell 0.9% while Hong Kong’s Hang Seng Index was unchanged. Closer to home, DEME has already released its results, with Banqup (formerly Unifiedpost Group) still to come. In the U.S., Donald Trump is once again (unsuccessfully) trying to oust a Federal Reserve governor, while software and database company MongoDB reports later today.

Who will the glass slipper fit?

The Pinault family is seeking buyers for its stake in Puma. Through its holding Groupe Artémis—which also controls luxury group Kering (+0.2%) and owns prestigious wineries such as Château Latour—the family holds a 29% interest in the German sportswear maker. Potential buyers include Chinese sports apparel producers Anta Sports and Li Ning. The rumor mill sent Puma shares up 16%, largely because investors expect the family to sell not at a discount, but at a substantial premium. Puma has been struggling recently, facing intense competition from fast-growing challengers like Deckers Outdoor’s Hoka (+3.6%) and On Holding (+0.3%).

Row row row your boat

In the first half of the year, DEME’s order book contracted by one percent. While the backlog is no longer growing, that hardly means the Belgian dredging company is running out of work. On the contrary, with an order book of 7.5 billion euro, it remains very well filled. Revenue rose to 2.1 billion euro, up 10% from the same period a year earlier. The strong results were driven mainly by offshore wind farm construction. The company confirmed its full-year revenue guidance and raised its profit outlook.

Did you know…

that hundreds of TikTok employees will soon lose their jobs. The cuts affect staff responsible for safety and content moderation on the popular social media platform—a role that will now be handed over to artificial intelligence.

This article was translated from Dutch and was originally published on Spaarvarkens.be.