International News 17/07
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Google Parent Plans to Acquire Cybersecurity Firm Wiz
Google's parent company, Alphabet, is in advanced discussions to acquire the cybersecurity startup Wiz for $23 billion, according to sources. It is anticipated that the deal will be concluded imminently, subject to the negotiations proceeding without incident. Neither Google nor Wiz has offered a comment on the matter. Wiz, a US-Israeli startup, completed a private funding round in May, raising $1 billion. This funding round resulted in a valuation of $12 billion for the company, which specialises in cloud cybersecurity. The potential acquisition of Wiz by Alphabet demonstrates the growing significance of cybersecurity in the digital environment. This move would potentially reinforce Google's cybersecurity capabilities and extend its product range in the cloud security sector.
Copper Landslides as Stockpiles Rise and Demand Outlook Worsens
Copper prices have declined due to a reduction in demand from China, the largest consumer of the metal, and an excess supply in the market. Furthermore, inventories at London Metal Exchange-approved warehouses have increased, which reinforces the poor demand outlook. The benchmark copper price on the LME declined by 1.2% to $9,788 per metric tonne. However, it has shown slight recovery since reaching 10-week lows at the end of June. There had been optimism that Chinese leaders would boost economic growth through stimulus measures, but this hope has now been abandoned. Analysts believe that the Chinese government's current focus is on restoring confidence in the struggling property market, rather than on initiating new construction projects. Further insight into future demand may be provided by upcoming data releases on Chinese yuan loans and total social financing.
Japanese Yen Surges After US Inflation Data Release, Traders Beware of Intervention
The Japanese yen saw a notable increase on Thursday, likely driven by dollar sales following the release of weaker-than-expected US consumer inflation figures. It is believed that this surge was not the result of official intervention from the Tokyo authorities, but rather a reaction to options-related activity following the release of the consumer price report. Following the publication of US inflation data, the yen saw a significant increase, reaching 38-year lows. This led to concern among markets already wary of potential purchases by Japanese authorities. The US dollar fell by 2.1% against the Japanese yen, trading at 158.78 yen. Analysts believe that the shift was largely prompted by the consumer price report, rather than intervention, indicating that the US CPI was a key factor in reversing the yen's decline.