Contract electronics manufacturer Foxconn clocked in record revenue in the fourth quarter. Shares of Nvidia hit fresh record high on foxconn's solid revenue and optimism ahead of CEO Jensen Huang's CES 2025 keynote. US Steel and Nippon Steel sued the Biden administration over its decision to block their merger. China's main stock exchanges asked some large mutual funds to restrict stock selling at the start of the year amid market volatility. South Korea's LG CNS plans to raise up to $817 million in an initial public offering. All this and more on the January 7 edition of World Street.
Freefall
Tencent Holdings recorded an over 5% drop in its Hong Kong-listed shares following the company's inclusion on the US Department of Defense's list of "Chinese military companies." This came after a nearly 8% decline in the company's US depository receipts on Wall Street.
Other companies affected by the move include battery manufacturer CATL, a key player in the supply chains of automakers like Ford and Tesla. CATL shares initially dropped by as much as 5.6% but later recovered slightly, before eventually closing 3.5% down in Shenzhen.
Sky high
Contract electronics giant Foxconn reported record-breaking fourth-quarter revenue, signalling the continued momentum of the artificial intelligence boom. Hon Hai Precision Industry, operating globally as Foxconn, announced a revenue of 2.1 trillion New Taiwan dollars ($63.9 billion) for the quarter, marking a 15% year-over-year growth.
The company, a key supplier to Apple, achieved its highest-ever fourth-quarter revenue, driven by strong demand for cloud and networking products, including AI servers developed by companies like Nvidia, along with robust growth in components and other product segments.
Sitting on top
Shares of chipmaker NVIDIA Corp reached a record high, riding a wave of anticipation ahead of CEO Jensen Huang's much-awaited speech. In addition to that, the record revenue delivered by contract electronics manufacturer Foxconn which rode on the the strong AI momentum also bolstered sentiment for AI giant.
Blame game
Nippon Steel and US Steel have filed a lawsuit accusing US President Joe Biden of unlawfully blocking their $14.9 billion merger through a politically influenced national security review. The companies are seeking to have a federal appeals court overturn Biden's decision, aiming for a fresh review free from political interference.
The lawsuit claims Biden's actions improperly influenced the Committee on Foreign Investment in the US, which evaluates foreign investments for potential national security risks, and violated the companies' right to an impartial process. The merger faced intense political scrutiny ahead of the November presidential election, with both Biden and Republican candidate Donald Trump vowing to oppose the deal while campaigning in Pennsylvania, where US Steel is based.
Taking control
China's major stock exchanges reportedly urged several large mutual funds to limit stock selling at the start of the year, according to Reuters, as authorities sought to stabilize markets during a challenging period for the world's second-largest economy.
At least four major mutual funds were contacted by the Shanghai and Shenzhen stock exchanges on December 31, January 2, and January 3, with requests to ensure their daily stock purchases exceeded their sales.
The move came as Chinese stocks began 2025 with significant losses amid concerns over incoming US President Donald Trump's potential imposition of hefty tariffs on Chinese goods, adding further strain to an already sluggish economy.
Starting afresh
South Korean IT services firm LG CNS began bookbuilding for its initial public offering (IPO), aiming to raise up to $817 million, according to a term sheet reviewed by Reuters.
The offering includes 19.37 million shares, priced within a range of 53,700 to 61,900 Korean won per share. This valuation places LG CNS's worth between $3.5 billion and $4.1 billion, as indicated in the term sheet.
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