Before the Bell: Nvidia and OpenAI tie the knot

Is KBC Group eyeing a tango with ABN Amro? Nvidia invests 100 billion dollars in OpenAI, and Ørsted finally receives some good news.

The Bel20 (+0%) stalled yesterday, while the average European stock slipped 0.3%. Rumors suggest Belgian bancassurer KBC Group may be on the acquisition trail, looking at Dutch rival ABN Amro to strengthen its European position. Not so long ago, during the financial crisis, Fortis famously choked on a similar deal with ABN Amro. KBC denies the rumors, saying it is only exploring a potential takeover of Belgian insurer Ethias. Across the Atlantic, the S&P 500 and Nasdaq gained 0.4% and 0.7% respectively. The real headline was Nvidia, which announced a massive 100 billion dollar investment in client OpenAI. This funding allows the company behind ChatGPT to buy even more Nvidia chips, reinforcing Nvidia’s dominance in AI infrastructure. Deals of this kind are not new for Nvidia, but the sheer size of this one may raise antitrust questions.

In Asia, Hong Kong’s Hang Seng Index dropped 1% this morning, while Japanese markets are closed for a public holiday marking the start of autumn—a traditional time to honor deceased relatives. Locally, Moury Construct reports first-half results today, while in the U.S., AutoZone and Micron Technology publish earnings. On the macro front, Europe releases its September PMI, offering a snapshot of business confidence.

From pain relief to controversy

For a headache, many people instinctively reach for a Dafalgan, the Sanofi pill containing paracetamol. Known as one of the mildest over-the-counter painkillers in Europe, it’s sold under the name Tylenol in the U.S. by pharma firm Kenvue. The American government is reportedly preparing to link paracetamol use during pregnancy to autism. If confirmed, the drug’s “harmless” reputation could be shattered. Investors reacted swiftly, sending Kenvue shares down 7.5% in New York. The company insists there’s no reason to panic, but U.S. Health Secretary Kennedy—who previously tied certain vaccines to autism—is determined to identify its causes.

Ørsted back in action

A rare bright spot for Ørsted (+5.1%). A U.S. judge ruled yesterday that the Danish renewable energy group can resume work on the Revolution Wind project off Rhode Island. A month ago, Donald Trump ordered construction halted despite the project being 80% complete. Ørsted and partner Skyborn Renewables quickly filed suit, and the judge has now allowed work to continue while proceedings are ongoing, arguing that halting the project would cause “irreparable harm” to the more than 350,000 households set to benefit. For Ørsted, whose market cap has already shrunk 40% this year, the decision is a much-needed boost.

Did you know…

that European citizens’ financial data will not be shared with Big Tech? Meta, Apple, Google, and Amazon will have no access to the datasets meant to drive innovation in consumer financial products. The EU aims to give European firms a leg up instead.

This article was translated from Dutch and was originally published on Spaarvarkens.be.