Verizon Communications agreed to buy back some of the fiber-optic lines it sold off nearly a decade ago through a $9.6 billion deal for Frontier Communications. The all-cash deal, announced Thursday, offered $38.50 a share for Frontier investors. The companies said it was valued at $20 billion including acquired debt. The Wall Street Journal reported Wednesday that the companies were in advanced talks. Frontier, cobbled together by several deals over the years, has more than 2 million fiber-optic connections across 25 states. Folding its network into Verizon would reach a combined 10 million fiber-optic customers in the Northeast and Midwest as well as in California, Texas and Florida - three markets that Verizon sold to Frontier in 2016.

The Swiss market ended notably lower on Thursday due to sustained selling at several counters amid concerns about a slowdown in global economic growth. Data showing an increase in Swiss unemployment weighed as well. The benchmark SMI ended down 144.83 points or 1.19% at 12,031.34, the day's low. VAT Group dropped nearly 4%. Kuehne + Nagel ended down 3.1%. Straumann Holding, Givaudan, Novartis, ABB, Roche Holding, Richemont and Sika closed lower by 1.4 to 2.5%. Nestle, Lonza Group, Geberit, Lindt & Spruengli, Roche GS, UBS Group, Logitech International, Swatch Group, SGS and Alcon also ended notably lower. Sonova climbed about 1.15%. Swisscom and Swiss Life Holding gained 0.92% and 0.87%, respectively. Julius Baer, Swiss Re and Sandoz Group posted modest gains. On the economic front, Switzerland's unemployment rate increased slightly in August after remaining stable in the previous three months, the State Secretariat for Economic Affairs, or SECO, said.

Europe
European stocks closed lower on Thursday amid persisting concerns about the outlook for growth after the latest batch of U.S. data showed the private sector employment in the world's largest economy increased by much less than expected in the month of August. Investors also digested a slew of regional economic data. The pan European Stoxx 600 ended down 0.54%. The U.K.'s FTSE 100 closed lower by 0.34%, France's CAC 40 settled lower by 0.92% and Germany's DAX edged down 0.08%, while Switzerland's SMI finished 1.19% down. Among other markets in Europe, Denmark, Finland, Netherlands, Norway, Poland, Sweden and Turkiye closed lower. Austria, Belgium, Greece, Iceland, Russia and Spain ended higher, while Portugal closed flat. In the UK market, Associated British Foods tumbled 8.4%. Admiral Group and Astrazeneca both ended lower by nearly 4%. In the German market, Brenntag ended more than 2% down. Symrise, Merck, Rheinmetall, Adidas, SAP and Hannover Rueck lost 1 to 1.7%. Bayer rallied nearly 4%. Deutsche Bank gained about 3.3%. RWE, Sartorius, Vonovia, Fresenius Medical Care, Continental, E.ON, Commerzbank, Covestro and Allianz advanced 1 to 2%. In the French market, Hermes International tumbled more than 6%. Dassault Systemes, LVMH, Air Liquide, Essilor and Schneider Electric lost 2 to 4.1%.

United States
Fresh signs that the labor market could be weakening pushed bond yields and the S&P 500 lower Thursday ahead of a pivotal jobs report. Investors and analysts were awaiting the Labor Department's August jobs data for clues on how much the Federal Reserve might cut interest rates at its meeting later this month. With price pressures easing, Fed Chair Jerome Powell has signaled the central bank will start cutting rates to prevent any further weakening in the labor market The S&P 500 shed 0.3% Thursday, trimming its advance for the year to 15%. The Dow Jones Industrial Average declined 0.5%, or 219 points. The tech-dominated Nasdaq Composite ended 0.3% higher The moves followed a new round of economic data. A report from payroll firm ADP suggested that 99,000 private-sector jobs were added in August, which was far fewer than economists had forecast and the least since 2021. Shortly after, weekly jobless claims came in slightly lower than expected. The Institute for Supply Management then said services employment growth slowed last month from July, despite another month of modest expansion in the sector. Healthcare services firm McKesson led the S&P lower, dropping 9.9% after it gave a weaker-than-expected earnings outlook at an industry conference. Tesla gained 4.9% to pace the Magnificent Seven firms. The group of big tech firms have led the past year's rally but have recently worried investors that the market's biggest stocks could crash under unrealistic earnings expectations. Discount retailer Dollar Tree led the S&P 500's gainers, rebounding from an earnings-related tumble of 22% on Wednesday to climb 7.7%, its biggest daily percentage gain in nearly three years. JetBlue Airways gained 7.2% after it lifted its sales forecast on the strength of July bookings and favorable fuel prices. United Airlines Holdings and American Airlines Group rose 2.2% and 1.6%, respectively.

Asia
The stock markets in East Asia fell slightly on Friday. In Tokyo, the Nikkei 225 index fell further, this time by 0.6 per cent to 36,454 points. Headwinds continue to come from the yen, among other things.

Bonds
The yield on U.S. benchmark 10-year Treasury notes fell to 3.731%, the lowest since June 2023. The 2-year yield, which often moves with expectations for short-term rates set by the Fed, also fell to its lowest in more than a year, ending at 3.751%.

Analysis
UBS raises Scout24 to EUR 77.70 (76.70)/Neutral – Trader
Barclays raises Schott Pharma to 33 (30) EUR/Equalweight – Trader
Citi raises Grand City Properties to EUR 19.70 (19.20) – Buy

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