The Italian candy maker behind Ferrero Rocher and Nutella struck a roughly $3 billion deal to buy the breakfast-cereal conglomerate WK Kellogg, in a bid to bolster its business in North America. Ferrero, a family-owned company, announced the deal for the iconic cereal company on Thursday. WK Kellogg shareowners are set to receive $23 per share in cash, the companies said. That represents about a 40% premium to the stock’s recent prices. The deal gives WK Kellogg a total enterprise value, including debt, of $3.1 billion. WK Kellogg is the company behind Froot Loops, Frosted Flakes, Rice Krispies and a variety of other cereal monikers. The invention of Corn Flakes cereal in 1894 by the company’s founder, Will Keith Kellogg, led to the business’s formation in the early 20th century. The story goes that the wheat-based cereal was created as an accident, but it would go on to revolutionize the breakfast-food industry. Founded close to 80 years ago in Italy, Ferrero has expanded internationally to become the world’s third-largest chocolate confectionery company, with some 35 brands that are sold in more than 170 countries. Its pantry includes Butterfinger, Baby Ruth, Kinder and its namesake chocolate treats. The group generated revenue of 18.4 billion euros, equivalent to about $21.5 billion, for its latest financial year, up almost 9% from the prior period, boosted by its operations in the U.S. and Italy. Ferrero has been targeting the U.S. for acquisitions to grow geographically and expand by category. It bought Wells Enterprises, the maker of Blue Bunny and other ice-cream brands, and before that struck a $2.8 billion deal to acquire Nestlé’s U.S. chocolate business. WK Kellogg soared 31% to $22.86.

The Swiss stock market closed on a favourable note on Thursday, outperforming the European stock markets unlike the previous day. The SMI gained 1 per cent to 12,132 points. Among the 21 SMI stocks, there were 18 winners and three losers. Hopes for new economic stimuli in China supported the prices of luxury goods stocks Richemont (+0.9%) and Swatch (+3.1%). At Nestlé (-0.2%), there were reports of searches in France in connection with mineral water products. Chocolate supplier Barry Callebaut posted higher sales in the first nine months of its current fiscal year 2024/25, although the Group sold significantly less chocolate. The company once again lowered its sales target for the full fiscal year, which had only been revised downwards in the spring. Baader subsequently adjusted the price target downwards. The share price plummeted by 13.4 per cent. Tecan, on the other hand, gained 5 per cent with a confirmed outlook. This is because Monica Manotas, a member of the Board of Directors of the laboratory equipment supplier, will replace the long-standing CEO Achim von Leoprechting with effect from 1 August. The company took this as an opportunity to confirm its forecast for the first half of the year and for the year as a whole.

Europe
The European stock markets posted gains overall on Thursday, unaffected by US President Donald Trump's threats of new tariffs. The Stoxx Europe 600 index climbed 0.5% to 552.9 points. In Paris, the CAC 40 and SBF 120 advanced 0.3%. The DAX 40 gave up 0.4% in Frankfurt, while the FTSE 100 jumped 1.2% in London. EUTELSAT (+6.5%): the satellite operator announced on Thursday that the UK was preparing to participate in its planned capital increase, as announced on 19 June. ICADE (-3.1% at €20.66): Goldman Sachs has lowered its recommendation on the property company's shares from ‘neutral’ to ‘sell’, while reducing its target price for the stock from €19 to €18. LEGRAND (-0.3%): the electrical infrastructure specialist has reached an agreement to acquire a majority stake in Cogelec (+8.3%), at a price of 29 euros per share. This transaction values Cogelec at nearly 254 million euros on a fully diluted basis, excluding treasury shares.

United States
The prospects of new trade deals and a promising start to corporate earnings season helped lift stocks to record highs. Stocks opened lower on Thursday after President Trump unveiled a 50% tariff on Brazilian goods, citing legal action against its former President Jair Bolsonaro and U.S. tech firms as justification for the levies. But by midafternoon the major indexes had turned higher, driven in part by the president’s latest Truth Social post urging the Federal Reserve to “RAPIDLY LOWER RATE TO REFLECT THIS STRENGTH.” The market ambled to new heights this month despite regular reminders that the U.S. is still locked in a trade war with much of the world, and investors’ reaction to Trump’s late-Wednesday notice on Brazil’s levy fit the pattern. The S&P 500 rose 0.3% to 6280.46, a new all-time closing high. The tech-heavy Nasdaq also ended trading Thursday at a record, adding just shy of 0.1%. The Dow Jones Industrial Average gained 192 points, or 0.4%. Some investors are shifting their attention to corporate earnings reports. Second-quarter profits for S&P 500 companies are expected to rise 4.8% from a year earlier, the slowest pace since late 2023, according to FactSet. Delta Air Lines jumped 12% Thursday after the airline posted better-than-expected results. Nvidia shares rose 0.7% to $164.10, notching a fresh all-time high and closing above the $4 trillion market-cap threshold for the first time. Copper futures rose 1.9% Thursday to $5.548 a pound after Trump confirmed a 50% tariff on the metal will take effect Aug. 1. Prices for the metal hit record highs Tuesday after the president unveiled the levy. The Labor Department said Thursday that the number of Americans who newly filed for unemployment benefits declined last week, but the size of the unemployed population continued to grow in June, reaching the highest level since November 2021. WK Kellogg shares posted a record gain of 31% after Italian candy maker Ferrero agreed to buy the cereal maker for roughly $3 billion. Bitcoin, the largest cryptocurrency, climbed to a fresh record of more than $113,000 ahead of the potential passage of the stablecoin bill in the House next week.

Asia
Asian stocks were mixed on Friday. Hong Kong and China notched up solid gains, while Tokyo was slightly down, as the markets digested the continuation of the previous day's record highs on Wall Street and the resurgence of trade tensions initiated by US President Donald Trump. On the Tokyo Stock Exchange, the flagship Nikkei index lost 0.13% to 39,593.84 points, while the broader Topix index gained 0.74% to 2,833.07 points. In Hong Kong, the Hang Seng index climbed 1.64% to 24,422.63 points. The Shanghai Composite Index rose by 0.77% to 3,536.69 points, and the Shenzhen Composite Index by 0.14% to 2,109.91 points. The Sydney Stock Exchange fell slightly by 0.11% to 8579.60 points, as did the Seoul Stock Exchange by 0.09% to 3190.31 points. The Taipei Stock Exchange was at equilibrium (+0.01%) at 22,694.96 points.

Bonds
U.S. labor data provides some support for Treasury yields and the dollar. Weekly jobless claims decrease to 227,000 from a downwardly revised 232,000. The 10-year Treasury note yield edged higher to 4.35% from 4.34% on Wednesday. Bond yields rise as prices fall.

Analysis
Baader lowers target Barry Callebaut to CHF 960 (1,000) - Add
Berenberg downgrades Sika target to CHF 285 (301) - Buy
Citi cuts EFG International to Neutral (Buy) - Target CHF 15.40