News

On June 5, Nokia announced the completion of a €500 million senior unsecured notes issuance under its Euro Medium Term Note program. The notes will mature on June 5, 2032, with a fixed annual coupon rate of 3.625%, and have been applied for listing on the regulated market of the Euronext Dublin. Nokia stated that the net proceeds from this issuance will be used for general corporate purposes, including the early repayment of its existing €500 million notes, which have a coupon rate of 3.125% and are set to mature in May 2028, in accordance with the redemption terms.

Glonghui June 5th｜Goldman Sachs Head of Asset Allocation Research said that after an increase in speculative positions in technology stocks, the recent sell-off in this sector is a healthy sign. "This has been a very strong rally, which has significantly boosted these momentum stocks," said Christian Mueller-Glissman, referring to increased leverage ETF and options positions. "Some consolidation may not be a bad thing." After Broadcom released a disappointing performance outlook, Mueller-Glissman warned against generalizing the performance of the highly cyclical technology hardware and semiconductor industries. In his view, if investors begin to question the strong earnings growth that has driven the market higher so far this year, it will be the biggest threat facing the stock market.

Glonghui June 5th｜Rob Arnott, founder of Research Affiliates, stated that mega IPOs such as SpaceX, Anthropic PBC, and OpenAI may drag down the broader stock market for years by diverting tens of billions of dollars away from existing stocks. After S&P Dow Jones Indices decided not to include these large new stocks in the indices quickly, this diversion effect may take some time to appear. However, in Arnott's view, as these companies’ weight in the indices gradually increases, the impact would take longer to transmit to other parts of the market anyway. Arnott is a pioneer in smart beta investing, and his company's strategies have been adopted by institutions such as exchanges. Arnott said, “This will disrupt capital markets, and it is already disrupting capital markets.” He is known for his research on fundamental indexation, a method that determines index constituent weights based on indicators such as profits and cash flow.