Here's a quick overview of the main events of the day:

  • SK Hynix is planning to list on the Nasdaq for $29.4 billion.

  • Paramount Skydance will offer to sell a stake in Universal Pictures to Brussels.

  • Ryman Hospitality is considering selling a majority stake in Grand Ole Opry.

  • WeLight has raised $31 million from IFC for expansion.

  • The Strait of Hormuz has reopened, and oil prices have fallen below $73.

  • The Eurozone is reporting a slight decrease in business activity in June.

  • Defense stocks are falling after news of the cancellation of German orders.

Foreign Investments

The most attention from financial markets on Thursday is focused on the planned listing of memory chip manufacturer SK Hynix on the American Nasdaq stock exchange. The South Korean company wants to raise 45.45 trillion won, or approximately $29.4 billion, through deposit certificates, and trading is expected to begin on July 10, according to the company's statement. The offering is being managed by the investment banks Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase, according to a regulatory announcement by the company. The funds will be used to expand the production of HBM memory chips, which are in high demand due to the growth of artificial intelligence; the news was also positively received by the shares of the competitor Samsung Electronics.

Meanwhile, European antitrust authorities are complicating a major media merger. According to sources at Reuters, Paramount Skydance is prepared to sell its joint venture with Universal Pictures in the field of film distribution in order to address concerns from the European Commission regarding the approximately $110 billion acquisition of Warner Bros Discovery. The offer is to be presented to Brussels next Tuesday, which will move the preliminary decision date from July 7 to July 21.

In the field of real estate and entertainment assets, Ryman Hospitality Properties is considering selling its 70% stake in the Opry Entertainment Group, which operates the legendary country music venue Grand Ole Opry. The Nashville real estate fund has hired the bank Morgan Stanley to find a buyer, according to Bloomberg.

The African company WeLight, the largest operator of solar microgrids on the continent, announced a smaller but symbolically significant transaction. It has raised 27 million euros, or approximately $31 million, from International Finance Corp, the private investment arm of the World Bank, and from the founding shareholders Axian Group, Sagemcom, and Norfund, for expansion into Nigeria and the Democratic Republic of Congo.

Significant Events with Global Impact

Following the reopening of the Strait of Hormuz based on a US-Iranian agreement, the market is rapidly being flooded with oil supplies, according to Bloomberg. Traders are reporting a significant increase in supply in both Europe and Asia, which is putting downward pressure on prices. The price of Brent crude oil from the North Sea fell below $74 per barrel for the first time since the beginning of the war on Wednesday, and today, around 07:30 CEST, it was around $72.60 per barrel. The price of US light crude oil (WTI) fell below $70 per barrel on Wednesday, and today, around 07:30 CEST, it was selling for $69.45 per barrel.

Cheaper oil is being offset by mixed signals from the European economy. The decline in business activity in the Eurozone continues for the third month in a row, but in June, it eased according to preliminary data from S&P Global, and inflationary pressures are weakening according to a survey of purchasing managers. The services sector was primarily responsible for slowing the decline, with the best result since March.

In addition to commodity markets, the growth of chips for artificial intelligence is also driving the economy. Shares of SK Hynix jumped as much as 12 percent after the announcement of a Nasdaq listing on Thursday, and the South Korean Kospi index rose by more than 5 percent; the better-than-expected revenue of competitor Micron Technology also contributed to the growth.

On the other hand, the defense sector is experiencing a sell-off. Shares of the Czech defense group Czechoslovak Group fell to a historic low of below 12.80 euros on the Amsterdam Stock Exchange, and other companies in the industry, including the German manufacturer Rheinmetall, are also declining. Analysts attribute this to speculation about the end of conflicts in Iran and Ukraine, and the news that Germany has canceled the construction of six warships has further dampened sentiment.

gnews.cz - GH

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