World Street | ECB's rate cut, defamation lawsuit on Netflix, Aramco share sale and more

World Street offers a sneak peek into the world of business and economy.

The European Central Bank moves ahead of the Federal Reserve to deliver its first interest rate cut at its latest monetary policy meeting. US dollar hovers near eight-week low ahead of the release of the US jobs report. Netflix was sued in a $170 million lawsuit by a Scottish woman who said she was defamed over her portrayal as a stalker in the hit mini-series "Baby Reindeer." GameStop shares soared about 50 percent as stock influencer 'Roaring Kitty" who has invested in the company, teased a livestream. Saudi Arabia to mint more than $11.2 bln from Aramco stake dilution. All this and much more on World Street.

Leading the race

The European Central Bank announced a widely-expected interest rate cut during its latest monetary policy meeting, lowering the central bank's key rate to 3.75 percent from a record 4 percent, where it had remained since September 2023. The rate cut comes despite persistent inflationary pressures across the 20-nation eurozone.

Markets had already factored in the 25 basis point reduction at the June meeting, marking the first cut since September 2019 when the deposit facility was in negative territory.

Falling to new lows

The US dollar hovered near an eight-week low as investors awaited the US jobs report to find insights on the Federal Reserve interest rate cut probability. The euro, however, held onto gains after the European Central Bank's rate cut, despite uncertainty lingering amid inflation concerns. The US dollar index, which tracks the currency against major rivals, hovered around 104.13, staying close to this week's low of 103.99, marking its first dip below 104 since April 9.

Pointing fingers

Netflix faced a lawsuit of at least $170 million from Fiona Harvey, a Scottish woman who alleged defamation in the portrayal of her as a stalker in the popular mini-series "Baby Reindeer."

Harvey claimed she was the inspiration behind the character Martha, played by Jessica Gunning, and argued that the show falsely depicted her as a twice-convicted stalker sentenced to five years in prison. The complaint was filed in Los Angeles federal court against Netflix and the creator of "Baby Reindeer," Richard Gadd, challenging the accuracy of the show's portrayal, which it labels as a "true story."

Unprecedented moves

GameStop shares skyrocketed by almost 50 percent in the last session following an announcement by the online stock influencer "Roaring Kitty" on YouTube about hosting a livestream on Friday. This surge was the latest episode in the recent volatile bouts of trading activity surrounding the video game retailer's shares, which commenced last month when Keith Gill, also known as "Roaring Kitty," made a comeback to X.com after a three-year absence.

Earlier this week, shares of the video game retailer shot up 20 percent after Gill's return to Reddit, accompanied by a post revealing a $116 million bet on the stock, marking his first move in three years. Gill played a key role in the 2021 GameStop rally, along with other meme stocks, driven by individual investors on Reddit's wallstreetbets forum.Minting Money

Saudi Arabia's stock dilution in Saudi Aramco is expected to raise over $11.2 billion, making it the largest such deal globally in three years. The government plans to sell nearly 1.55 billion shares at a discounted price of 27.25 Saudi riyals ($7.27) each, Bloomberg reported. Demand for the shares surged within hours of the offering's announcement, with significant interest from foreign investors, suggesting robust international appetite for the landmark deal.

Bending rules

China's securities regulator reassured investors revealing that there wouldn't be a sudden surge in delistings despite concerns over small-cap companies potentially being removed from the market. The China Securities Regulatory Commission (CSRC) mentioned that while the "survival of the fittest" principle is gradually taking effect, there won't be a significant rise in delisted firms in the short term. Despite this assurance, investors remain wary of buying shares in smaller companies, with brokerages predicting a record number of delistings this year.