Summer Analyst

State Street Corporation has launched a public offering of 500,000 depositary shares, each representing one-hundredth of a Series L perpetual preferred stock share. The new Series L class features fixed-rate reset dividends aligned with risk-free rates. The company filed a Form 8-K on 5 August 2026 detailing the preferred stock amendments and offering structure. The depositary shares allow both institutional and retail investors to access the Series L preferred stock without committing to full shares, potentially broadening the investor base. State Street also announced it is changing its fiscal year to align with the calendar year, improving comparability with industry peers and streamlining tax filings. The company confirmed compliance with SEC regulations and reported no material adverse events. The perpetual structure provides State Street with capital structure flexibility whilst offering investors long-term income opportunities.

Goldman Sachs has added Microsoft to its US Conviction List with a $640 price target, removing Broadcom and ServiceNow. The firm's bullish outlook hinges on Azure exceeding $100 billion in annual revenue and Copilot reaching 30 million paid seats. Microsoft reported fiscal Q4 revenue of $90.01 billion, up 17.8% year over year, with Azure growing 43%. Commercial remaining performance obligations surged 84% to $678 billion. However, FY2026 capital expenditure jumped 79.6% to $115.95 billion whilst free cash flow declined 6.5% to $66.99 billion. Goldman views Microsoft as ideally positioned as AI transitions from infrastructure to enterprise deployment. The stock trades at $487.65 and carries 54 Buy ratings with no Sells.

CityFibre has secured £900 million in equity funding from shareholders including Goldman Sachs and Abu Dhabi's Mubadala to pursue acquisitions of smaller broadband rivals. The investment follows a £1.5 billion refinancing last year. The company is targeting providers with networks reaching over one million homes, such as Hyperoptic and Community Fibre. CityFibre's full-fibre network reaches approximately 4.7 million premises, making it the largest alternative network competing with BT's Openreach. However, the company faces challenges from its nearly £4 billion debt pile and rising interest costs. Fierce competition and slower customer uptake have pressured finances, leading to 200 redundancies this month after cutting 450 roles earlier this year. CityFibre is exploring debt recapitalisation options whilst assuring that the National Wealth Fund's £300 million taxpayer investment remains unaffected.