World Street | EU votes on Chinese EV tariffs, Zuckerberg surpasses Bezos as second richest, Shein eyes London IPO, and more

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

Cisco Systems gears up to invest in Nvidia backed CoreWeave. JP Morgan Chase becomes a significant shareholder in cash-trapped Australian casino operator. The European Union's pivotal vote on tariffs on Chinese electric vehicles. Mark Zuckerberg surpasses Jeff Bezos to become the world's second richest person. All this and more in the October 4 edition of World Street.

Expensive buy

Cisco Systems is gearing up to invest in CoreWeave, giving the cloud services provider a hefty valuation of $23 billion, according to Bloomberg News. Backed by Nvidia, CoreWeave collaborates with AI startups and rival cloud providers to create clusters optimized for AI workloads. CEO Michael Intrator previously hinted at a secondary transaction, allowing current shareholders to sell up to $500 million worth of shares, Bloomberg reported in September.

The surge in AI-driven applications like ChatGPT and the training of large language models has skyrocketed demand for cloud-computing services.

New bet

JPMorgan Chase & Co. has emerged as a significant shareholder in Star Entertainment, holding 5.47 percent voting power, as revealed in a recent exchange filing. The Australian casino operator has seen its shares plummet in recent years, grappling with liquidity challenges. Star’s stock has been on a downward spiral since 2022, following multiple probes into anti-money laundering violations, losing nearly 50 percent in value this year alone. In its recently delayed annual results, Star indicated it may sell assets as part of its ongoing restructuring efforts and to manage regulatory outflows.

Pivotal vote

The European Union is gearing up for a crucial vote on Friday to decide whether to impose tariffs of up to 45 percent on Chinese-made electric vehicles—a trade case that could provoke retaliation from Beijing. The European Commission, responsible for trade policy, proposed these tariffs after a year-long investigation into what it views as unfair Chinese subsidies.

For the tariffs to be blocked, a qualified majority of 15 EU countries, representing 65 percent of the bloc's population, must vote against the measure. However, France, Greece, Italy, and Poland have signaled their support, making it unlikely that a blocking majority will be reached, according to a Reuters report. Should there be no clear majority, the Commission has the authority to enforce the tariffs but may also revise the proposal to gain broader support.

Money, Money, Money

Social media conglomerate Meta's CEO Mark Zuckerberg has officially surpassed Jeff Bezos to become the world’s second richest person. According to the Bloomberg Billionaires Index, Zuckerberg's net worth climbed to $206.2 billion, edging out the former Amazon CEO's $205.1 billion fortune. He now trails only Tesla CEO Elon Musk, who leads by around $50 billion.

Zuckerberg’s wealth has surged by $78 billion this year alone, more than any of the 500 individuals tracked by the index. His 13 percent stake in Meta has benefited from the company's stock rally, with shares closing at a record $582.77 on Thursday—a remarkable 68 percent increase since January, when they were trading at $346.29.

Gearing up

Shein is gearing up for informal investor meetings in the coming weeks as part of its preparation for a planned London initial public offering (IPO), according to a CNBC report. The China-founded online retailer is pushing forward as it awaits regulatory approval in the UK. The meetings, primarily taking place across Europe, will serve as an opportunity for Shein to engage with large investors and gauge their interest ahead of the IPO.

In early June, Shein confidentially filed documents with Britain’s markets regulator, setting the stage for a potential listing later this year, Reuters previously reported. Valued at $66 billion during a 2023 fundraising round, Shein shifted its IPO focus to London earlier this year after its initial plan for a New York listing faced resistance from US lawmakers.