Australian stocks closed lower on Thursday, with the S&P/ASX 200 index hitting a 1-month low. Losses in the Gold, Metals & Mining and Financials sectors led the decline. Adbri Ltd was the best performer of the session, rising 21.88%, while Treasury Wine Estates Ltd was the worst, falling 7.84%. Gold Futures for June delivery was down 0.22%, while Crude oil for delivery in July fell 0.78%. The AUD/USD was unchanged 0.21%, while the AUD/JPY fell 0.28%. The US Dollar Index Futures was up 0.22%.
Author: fortraders
Nikkei 225 Gains 0.39% at End of Trading Day in Japan
Japan stocks closed higher on Thursday, with gains in the Mining, Chemical, Petroleum & Plastic and Power sectors leading shares higher. The Nikkei 225 rose 0.39%, with Advantest Corp. (TYO:6857) and Nippon Electric Glass Co., Ltd. (TYO:5214) among the best performers, rising 16.22% and 4.45%, respectively. Meanwhile, Daiichi Sankyo Co., Ltd. (TYO:4568) and Kawasaki Kisen Kaisha, Ltd. (TYO:9107) were the worst performers, falling 4.38% and 4.08%, respectively.
Crude oil for July delivery was down 0.67% to $73.84 a barrel, while Brent oil for delivery in July fell 0.51% to $77.96 a barrel. The June Gold Futures contract also fell 0.15% to $1,961.60 a troy ounce. The US Dollar Index Futures was up 0.20% at 104.00.
The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was down 3.60% to 19.00. Falling stocks outnumbered advancing ones on the Tokyo Stock Exchange by 2044 to 1513 and 286 ended unchanged.
Lipavský to Convene with Politicians and Czech Troops in Iraq
Czech Foreign Minister Jan Lipavský is set to visit Iraq on Thursday to discuss bilateral relations and the role of Czechia and the EU in stabilising the country. During his visit, he will meet with Prime Minister Muhammad Sudan, President Abdal Latíf Rashíd, and his Iraqi counterpart, Fuád Husayn.
Mr Lipavský will also be accompanied by a 15-member business delegation to attend a one-day Czech-Iraqi business forum in Baghdad. He will also meet with Czech soldiers in allied military missions.
Prior to his visit to Iraq, Mr Lipavský opened a Czech-Saudi business forum in Riyadh on Wednesday. This visit is part of the Czech Republic’s efforts to strengthen its ties with the Middle East and promote economic cooperation.
Cineworld’s Restructuring Plan Receives Support from Most Lenders
Cineworld Group announced on Thursday that its proposed restructuring has the backing of lenders controlling almost all of its legacy credit lines and most of the outstanding debt under its debtor-in-possession facility. The proposed restructuring is expected to reduce indebtedness by around $4.53 billion, raise $800 million and provide $1.46 billion in new debt financing. The company is now expecting to emerge from Chapter 11 bankruptcy in July.
During the restructuring process, Cineworld has continued to operate its business and cinemas as usual. The proposed restructuring does not provide for any recovery for holders of Cineworld’s existing equity interests. Talks with potential parties to buy some or all of its business have been held, but none involve an all-cash bid for the entire company.
Cineworld’s proposed restructuring has the support of those holding and controlling 99% of the legacy credit lines and at least 69% of the outstanding indebtedness under the debtor-in-possession facility. The company is now expecting to emerge from Chapter 11 bankruptcy in July.
U.S. Court Dismisses Ericsson Shareholder Lawsuit: Ericsson Reports
Ericsson has been cleared of any wrongdoing by a U.S. court after certain shareholders accused the company of misleading investors over its business dealings and compliance in Iraq. The court rejected the plaintiff’s claims in full and concluded that Ericsson did not violate any disclosure obligations to investors.
The Swedish telecom giant had come under pressure last year after it revealed an internal investigation had found evidence of historical corruption in Iraq. It was subsequently fined $207 million by the U.S. Justice Department for failing to properly disclose the 2019 investigation.
Ericsson said yesterday that Nasdaq Stockholm had also dismissed its review of the company’s disclosure obligations surrounding the Iraq probe. The company will continue to defend the matter if appealed.
The court decision is a welcome relief for Ericsson, which has been under scrutiny for its business dealings in Iraq. It is a reminder to companies to ensure they are transparent and compliant with all disclosure obligations.
Germany’s GDP Decline Leads to Recession in 1Q
The German economy has entered a recession, after contracting by 0.3% in the first quarter of 2023. According to the German statistics office Destatis, household expenditure was squeezed by high inflation, leading to a decrease in the purchase of new cars and spending on food and beverages, clothing and footwear. The government has predicted the economy to expand by 0.4% this year. The contraction of 0.5% compared to the same period a year earlier, on a price and calendar adjusted basis, was weaker than the forecast by economists. This marks the second quarter of negative growth, officially entering a recession.
Nvidia Nears $1 Trillion Valuation
Nvidia Corp. has been at the forefront of the tech sector’s race to develop more artificial intelligence offerings. The company’s gear has been essential to this effort, and its products have been widely adopted by tech giants such as Apple Inc., Microsoft Corp., Alphabet Inc., Amazon.com Inc., and Tesla Inc.rnrnNvidia’s products have been praised for their performance and reliability, and the company has been able to capitalize on the growing demand for AI-related products. Nvidia’s stock has been on a steady rise since the beginning of the year, and the company is well-positioned to continue to benefit from the growth of the AI sector.$200 billion in market cap if it hits the $1 trillion mark.Nvidia is on the brink of becoming the first tech company to reach a $1 trillion market cap, thanks to a surge in its stock price this year. The company’s fiscal second-quarter forecast of $11 billion in sales, a 33% increase from its previous quarterly record, is the first sign of a wave of fresh spending in the tech sector. Other companies, such as Microsoft, are investing heavily in AI capabilities, and hardware makers like AMD, Marvell Technology, and Arista Networks have seen their stocks rise in response. Software companies like Palantir Technologies and C3.ai have also seen gains as AI becomes a core part of their offerings. With the potential for huge financial rewards, it’s no wonder that tech companies are investing heavily in AI.The International Monetary Fund (IMF) chief, Kristalina Georgieva, recently stated that the U.S. dollar will remain the global reserve currency for the foreseeable future. This news has been welcomed by many, as it means that the dollar will remain strong and stable.
This is good news for those looking to buy a house, as it means that the dollar will remain strong and stable. This means that the cost of buying a house will remain relatively low, and that the value of the house will remain stable.
However, it is important to remember that the housing market is still volatile, and that prices can still fluctuate. Therefore, it is important to do your research and make sure that you are getting the best deal possible.
Overall, the news from the IMF is good news for those looking to buy a house. The dollar will remain strong and stable, meaning that the cost of buying a house will remain relatively low. However, it is important to remember that the housing market is still volatile, and that prices can still fluctuate. Therefore, it is important to do your research and make sure that you are getting the best deal possible.
Firms in Central Europe Compete for Opportunities in Ukraine’s Reconstruction Efforts
Central European companies are looking to the future of Ukraine, with plans to invest hundreds of billions of dollars in reconstruction projects once the war ends. The Czech government has pledged to spend 500 million crowns ($23.5 million) each year through 2025 to support firms seeking to work in the country, while Poland is in discussions with representatives from countries including South Korea, Japan and Great Britain to partner with Polish companies more familiar with Ukraine.
The cost of recovery is likely to be $411 billion, or 2.6 times Ukraine’s estimated 2022 GDP, according to a joint assessment by Ukraine and the World Bank. Polish bank Pekao SA has estimated that reconstruction could boost neighbouring Poland’s economy by up to 189 billion zlotys ($45.6 billion).
However, progress will depend on the ability of Ukraine’s authorities to demonstrate transparency, as corruption remains a major concern. Transparency International’s Corruption Perceptions Index puts Ukraine in 116th place, far below its European Union neighbours.
Central European companies are taking the lead in the reconstruction of Ukraine, with strong military and political support from the Czech Republic and Poland, countries dominated by Moscow during four decades of Communist rule. With the stakes high, these companies are looking to the future of Ukraine and the potential for a lucrative market.
VinFast Recalls All EVs Shipped to US Due to Security Concerns
Vietnamese electric vehicle maker VinFast is recalling all of its first batch of vehicles shipped to the United States following a security warning issued by the U.S. National Highway Traffic Safety Administration (NHTS). The recall affects 999 VF8 models due to a software error in the cars’ display, which prevents critical safety information from being shown.
VinFast, which was founded in 2017 and began selling EVs in California this year, has so far shipped 2,907 electric cars to the United States. The company is now seeking to list in the United States via a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co.
VinFast first became aware of the issue on April 27 while reading customer comments and concerns. The company has issued a statement confirming the recall and said it will issue a response later.
The recall is a setback for VinFast, which is seeking to become a major player in the global electric vehicle market. However, the company is taking the necessary steps to ensure the safety of its customers and is committed to providing a safe and reliable product.
Arrival Seeks US Tax Credits to Revive British Electric Vehicle Production
British electric van startup Arrival has hit many road bumps in its quest to become the next Tesla. With the $283 million it should receive from a merger with special-purpose acquisition company (SPAC) Kensington Capital Acquisition Corp V, Arrival will focus on just one U.S.-produced vehicle for now – a larger Class 4, or medium-duty, delivery van. This vehicle will bring customers a $40,000 IRA subsidy, far above the $7,500 for smaller electric vans.
Crucially, Arrival says early investor UPS is still an anchor customer – it has ordered up to 10,000 vans. The IRA, which took effect last August, has provided enough of a lifeline to Arrival to attract new investors. It includes customer tax credits for purchases of certain EVs.
Arrival now aims to begin producing its medium-duty XL Van at a “microfactory” in Charlotte, North Carolina, by late 2024. The company has so far made three prototypes of its smaller L Van at its Bicester plant in the United Kingdom.
Class 4 vans are more appealing than smaller models “because the prices and margins are so much higher,” said Michael Abelson, head of Arrival’s North American unit. With price tags for medium-duty electric vans targeted to start from around $175,000, the segment represents a potential market worth $5 billion or more.
The rare double SPAC is being watched by others in the industry to see if it is worth replicating. An executive with experience running SPACs said Kensington’s deal was an “an absolute lifeline” for a startup in Arrival’s situation. With the IRA providing a lifeline, Arrival now has a chance to make it happen.