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U.S. Edition Mandoi,. flalll..,,t,w27. 2021

TOP NEWS • Moment of truth for U.S. Congress on government funding, debt, Biden agenda The U.S. Congress faces a showdown on Monday over government spending and debt, opening a week that could also include action on President 's sweeping social agenda if Democrats can resolve internal divisions about the package.

• , in fight against record EU fine, slams regulators for ignoring Apple Alphabet unit Google criticised EU antitrust regulators for ignoring rival Apple as it launched a bid to get Europe's second-highest court to annul a record 4.34-billion fine related to its Android operating system.

• Some Apple, Tesla suppliers suspend production in amid power pinch Several Apple and Tesla suppliers have suspended production at some Chinese factories for a number of days to comply with tighter energy consumption policies, putting supply chains at risk in the peak season for electronics goods.

• Amazon to start offering insurance to UK businesses -broker Amazon.com is to start offering insurance to small and medium-sized UK business customers, the technology giant's first foray into business insurance in the country, broker Superscript said.

• EV maker Polestar to go public at $20 billion valuation via SPAC Swedish electric-car maker Polestar said it will go public by merging with a blank-check firm backed by billionaire Alec Gores and investment bank Guggenheim Partners at a valuation of $20 billion including debt.

BEFORE THE BELL Futures tracking the S&P 500 and the edged lower with focus turning towards upcoming economic readings and ongoing talks over increased government spending. European stocks rose, with German shares hitting ten-day highs after the federal election outcome reduced the chances of a left-wing coalition forming a government. Asian equities ended mostly in the green. The dollar index was slightly higher, while gold was down. Oil prices gained amid supply concerns as global demand picks up.

STOCKS TO WATCH • Acceleron Pharma Inc & Bristol-Myers Squibb Co: Acceleron Pharma is in advanced talks to be acquired by a large pharmaceutical company for more than $11 billion, reported on Friday, citing people familiar with the matter. The acquisition would be made at about $180 per share in cash, the report said. Details about the potential buyer were not known, but the report added that several global drugmakers, including Bristol- Myers Squibb, which owns 11.5% of Acceleron's stock, are seen as potential suitors.

• Alphabet Inc: Google criticized EU antitrust regulators for ignoring rival Apple AAPL.O as it launched a bid to get Europe's second-highest court to annul a record $5.1 billion fine related to its Android operating system. Far from holding back rivals and harming users, Android has been a massive success story of competition at work, representatives of Google told a panel of five judges at the General Court in Luxembourg at the start of a five-day hearing. The European Commission fined Google in 2018, saying that it had used Android since 2011 to thwart rivals and cement its dominance in general internet search. "The Commission shut its eyes to the real competitive dynamic in this industry, that between Apple and Android," Google's lawyer Matthew Pickford told the court. Separately, Google will take a smaller cut when customers buy software from other vendors on its cloud marketplace, CNBC reported on Sunday. The Google Cloud Platform is cutting its percentage revenue share to 3% from 20%, CNBC said, citing a person familiar with the matter.

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• Amazon.com Inc: The company is to start offering insurance to small and medium-sized UK business customers, the technology giant's first foray into business insurance in the country, broker Superscript said. Members of Amazon's Business Prime programme will be able to buy cover from Superscript such as contents insurance, cyber insurance and personal indemnity insurance, which a Superscript spokesperson said would be underwritten by "major UK insurers". They will be offered a discount of 20% to current rates as a way of enticing businesses over to them.

• Inc: The bank launched a global technology hub at its offices, the first of its kind in the region and with the aim of employing 1,000 coders over the next decade. The hub, based at Citi's Bahrain premises, was set up in partnership with Tamkeen, a government-funded labour fund, and Bahrain's Economic Development Board, which are also investing, a Citi executive said. Under the plan, Citi will hire at least 100 people in coding- related roles each year over the next 10 years.

• Gores Guggenheim Inc: Swedish electric-car maker Polestar said it will go public by merging with a blank-check firm backed by billionaire Alec Gores and investment bank Guggenheim Partners at a valuation of $20 billion including debt. The deal with Gores Guggenheim will include cash proceeds of around $800 million and a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. The premium EV maker, backed by Volvo Car Group and affiliates of Geely Chairman Eric Li, also counts Hollywood actor and activist Leonardo DiCaprio among its investors.

• Tesla Inc: The company's Shanghai factory is expected to produce 300,000 cars in the first nine months of the year, capped by a delivery rush in the end of the July-September quarter, despite a global semiconductor shortage, two sources said. The factory makes the electric 3 sedans and Model Y sport-utility vehicles for domestic and international markets, including Germany and Japan.

COLUMN Hedge funds score taper trade hat trick: McGeever Ahead of the Fed's policy meeting last week, hedge funds sold Treasuries, positioned for a steeper 2s/10s yield curve, and increased their bullish bets on the dollar. Going by markets' initial reaction to the Fed's hawkish turn, the combination play was perfectly timed.

ANALYSTS' RECOMMENDATION • Altice USA Inc: Credit Suisse cuts rating to neutral from outperform, saying the management’s new investment strategy will take at least several quarters, if not longer, to begin bearing fruit.

• Aterian Inc: Alliance Global Partners raises target price to $14 from $9 after the company agreed to pay down $66.3 million of its debt, plus accrued interest and a penalty, to High Trail with equity.

• Chewy Inc: Credit Suisse assumes coverage with outperform rating and target price of $121 to reflect the company’s rapid growth and longer-term profit prospects.

• Omeros Corp: JPMorgan initiates coverage with neutral rating and target price of $15, saying potentially differentiated anti-inflammatory portfolio uniquely positioned to leverage the MASP/lectin activation axis of complement system.

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ECONOMIC EVENTS (All timings in U.S. Eastern Time) 0830 (approx.) Durable goods for Aug: Expected 0.7%; Prior -0.1% 0830 (approx.) Durables ex-transport for Aug: Expected 0.5%; Prior 0.8% 0830 (approx.) Durables ex-defense mm for Aug: Prior -1.1% 0830 (approx.) Nondefense cap ex-air for Aug: Expected 0.4%; Prior 0.1% 1030 (approx.) Dallas Fed Manufacturing Business Index for Sep: Prior 9.00

COMPANIES REPORTING RESULTS No major S&P 500 companies are scheduled to report.

CORPORATE EVENTS (All timings in U.S. Eastern Time) 0900 FedEx Corp: Annual Shareholders Meeting 1200 Smith & Wesson Brands Inc: Annual Shareholders Meeting

EX-DIVIDENDS American Tower Corp: Amount $1.31 Lam Research Corp: Amount $1.50 Prospect Capital Corp: Amount $0.06 Rent-A-Center Inc: Amount $0.31

(All analysts' estimates are according to I/B/E/S Refinitiv data)

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PICTURE OF THE DAY

The Windy Fire expands in the Sequoia National Forest, near Sugarloaf, California, September 26. /David Swanson

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