Private equity firm CVC Capital Partners is planning a market debut on Euronext Amsterdam exchange. German airline Lufthansa has slashed its 2024 earnings forecast. Meanwhile, China's economic data is in focus.
Here's all this and much more on this edition of the World Street.
Hitting the Street
CVC Capital Partners has announced plans to list on Euronext Amsterdam with a target of raising at least 1.25 billion euros ($1.33 billion), in what is anticipated to be one of Europe's most significant initial public offerings this year.
According to Reuters, this IPO could potentially value the private equity firm at over 10 billion euros. Fred Watt, the chief financial officer stated that the buyout firm will now focus on gathering detailed feedback from potential investors to finalize the IPO pricing, and aim to list by the next month.
Hiving off UK ops
British automotive distributor Inchcape announced plans to sell its UK retail operations to Group 1 Automotive UK for 346 million pounds ($431.43 million) in cash. The decision follows a strategic review initiated earlier this year.
Inchcape, known for global distribution of premium cars in 40 countries plans to utilise GBP 100 million from the sale proceeds to repurchase shares. The completion of the deal is anticipated to happen during the third quarter of 2024.
Going Global
OpenAI made a pitch for business in Japan as it inaugurated its first Asia office in Tokyo. CEO Sam Altman expressed optimism about establishing a long-term partnership with Japanese people, government leaders, businesses and research institutions. The startup is well-known for its generative AI chatbot - ChatGPT - aims to explore new revenue streams globally.
Trouble bubble
German airline Lufthansa has revised down its 2024 earnings forecast after a series of strikes and slower-than-expected capacity ramp up. This adjustment led to a more than 4 percent drop in its share price to a five-month low.
Lufthansa now anticipates adjusted earnings before interest and taxes (EBIT) of 2.2 billion euros ($2.3 billion) for the year, compared to its earlier projection of stable earnings in comparison to the 2.68 billion euro adjusted EBIT recorded in 2023.
China growth story
China's economic growth surpassed expectations in the first quarter, driven by strong factory output, which has increased optimism that the government can achieve its ambitious annual target.
According to data released by the National Bureau of Statistics, gross domestic product (GDP) grew by 5.3 percent in the January-to-March period compared to a year earlier. This figure exceeded the median estimate of 4.8 percent in a Bloomberg survey of economists and slightly exceeded the growth rate of 5.2 percent recorded in the final quarter of 2023.
BoJ shifting approach
The Bank of Japan is transitioning to a more flexible approach in formulating policy, with a reduced emphasis on inflation, following its landmark decision to conclude a radical stimulus program in March, as reported by Reuters.
As monetary settings are expected to remain unchanged, market participants are closely watching the BOJ's upcoming quarterly growth and price projections during its policy meeting on April 25-26. These projections are seen as key indicators of when the central bank might consider raising rates again.
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