Markets Defused aims to give an easy-to-understand and straightforward recap of the day’s most engaging stock market news.
- OpenAI unveils ‘GPT-4o
- Stonks GameStop and AMC soar as Roaring Kitty returns
- Squarespace in $7bn ‘go-private’ deal
- Anglo American has rejected another BHP bid
- Haleon is seeing short-seller pressure
- Shein is closer to giving London huge IPO boost – reports
- NatWest has a new American major shareholder
OpenAI unveils ‘GPT-4o’: a faster and ‘easier’ AI
OpenAI has unveiled the next version of ChatGPT that it's making available to subscribers.
ChatGPT-4o is described by OpenAI as “much faster” and more user friendly with capabilities in text, video and audio content generation.
Mira Murati, OpenAI’s chief technology officer, in a livestream said “we are really making a huge step forward when it comes to the ease of use”.
The latest AI version will also be accessible via API for more advanced users.
Significantly, for the first time, free users will be able to access the leading AI model available – albeit, the company has yet to detail what comparative perks will be available for the paying OpenAI subscribers.
As well as being faster and more powerful, the GPT-4o is said to have more a more advanced audio interface and, according to Murati, it can “perceive your emotions”.
GameStop and AMC soar as meme-trading sends Stonks up again
GameStop Corp (NYSE:GME) stock more than doubled as so-called ‘meme-stock’ trading returned to the market.
The share hit a high of $36.70 in early deals, before trading was temporarily suspended, and it remained close to 75% changing hands at $30.42 after the market was restored.
The chaotic trading was triggered by the apparent ‘return’ of the original Reddit ‘meme-stock’ trader and Reddit user “Roaring Kitty”, aka Keith Gill.
Gills social media account posted a sketch of a gamer sitting forward, interpreted by his online audience as an investment signal.
With no actual news, GameStop and fellow ‘meme-stock’ AMC Entertainment (AMC Entertainment Holdings (NYSE:AMC)), up 65% at $4.80, soared at the start of the trading week.
Squarespace agrees $7bn ‘go-private’ deal
Squarespace Inc (NYSE:SQSP) shares traded sharply higher in Monday’s trading, albeit the stock now has a short shelf life as private-equity investment firm Permira has struck a $6.9bn deal to buy the website builder.
Permira’s ‘go-private’ deal is pitched at $44 per share and it has the backing of major shareholders Accel and General Atlantic, as well as executive management.
It will draw a close to a somewhat underwhelming phase in public market ownership, following a 2021 IPO that priced the business at $50 per share – a level that the shares have failed to see since.
Permira reckon it can unlock Squarespace’s “full potential”.
In New York, Squarespace stock was up $4.98 or 13% changing hands at $43.18.
Anglo American rejected another BHP bid
Aussie miner BHP Group Ltd (LSE:BHP, ASX:BHP) on Monday confirmed that Anglo American Plc's (LSE:AAL) management snubbed its improved takeover approach.
The improved offer, announced last week, was still pitched at £34 billion and demanded asset sales, but promised AAL shareholders a larger stake in the combined business.
BHP boss Mike Henry struck a stubbornly bullish tone, in a stock market statement, as he said: "BHP and Anglo American are a strategic fit and the combination is a unique and compelling opportunity to unlock significant synergies by bringing together two highly complementary, world-class businesses.”
According to an analyst note published Monday, RBC reckons the BHP is still on the cheapside with the Canadian bank’s team estimating AAL’s value at around £31 per share versus the BHP bid that equates to £27.53.
Haleon is seeing short-seller pressure
Haleon PLC (LSE:HLN, NYSE:HLN), known for its Sensodyne and Advil products, is currently dealing with a significant short-seller attack from Marshall Wace, which has taken a position worth around £150 million.
It marks the company's first major short-seller challenge since its spinoff from GSK and Pfizer two years ago.
Despite the reports, the stock remained relatively stable closing Monday at 328.4p, up 0.18%.
NatWest Gains New Major Shareholder
Capital Group, an American investment firm, acquired over £110 million in shares of NatWest Group PLC (LSE:NWG).
It comes as the UK government’s stake (acquired through the $46bn bank bailout in the 2008 crisis) was reduced to less than 27%.
The UK aims to exit its holding, to fully reprivatize the bank, either by 2025 or 2026. By the end of the year its expected to have less than 10%.
According to reports, the American’s transaction came after the UK government’s sale.
Shein is closer to giving London huge IPO boost - reports
Chinese e-retailer Shein is reportedly nearing its application to list on the London Stock Exchange.
It comes after stalled attempts to float in New York, with London now said to be presenting a more favourable regulatory environment.
Shein was given a valuation of $66 billion last year, so if concluded it would be a notable boost to London’s recently waning IPO market.
“Such a huge listing would be a boon for London markets which have seen very little incoming activity to offset the companies leaving the field, but it could ultimately prove a poisoned chalice unless the company can overcome key concerns about its working practices,” said Danni Hewson, head of financial analysis at AJ Bell.
She added: “With Shein reportedly homing in on a potential London IPO the last thing the Chinese fast fashion retailer needed was further scrutiny of its supply chain.
“Reports of 75-hour days for workers churning out its myriad of products will prove uncomfortable reading for potential investors and consumers alike.”