CR Daily Economic Summary: Mortgages, Warhorse Studios, Google, Merck, Union Pacific and Norfolk Southern (November 14, 2025)

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Overview of the latest economic events in the Czech Republic

The Prague Stock Exchange slightly weakened after a series of record closings - the PX index fell by 0.02 % to 2502.41 points; the main drivers of the decline were banking titles Erste a Commercial Bank, energy also posted losses CEZ, on the other hand, the stocks did well Coins. The koruna started to strengthen again after Wednesday's weakening.

Banks and building societies in the Czech Republic granted mortgages worth CZK 38.8 billion in October, which means a month-on-month increase of CZK 3 %. New loans excluding refinancing amounted to CZK 29.4 billion (down by 1 %) and the average interest rate on new loans fell to 4.48 % from 4.52 % in September. The Hypomonitor data confirms the continued demand for housing and the market's sensitivity to rate movements.

Important export news is the announcement of the study Warhorse Studios, that the sequel to Kingdom Come: Deliverance 2 has surpassed four million copies sold since its February release. The studio is planning a complete edition and further expansions, which further strengthens the position of the Czech game industry on the global market and contributes to the growth of foreign investment in the technology sector.

Foreign investment

Pharmaceutical giant Merck is close to closing an agreement to acquire a biotechnology company Cidara Therapeutics, which would value the company above its current market capitalization of around $3.3 billion. This is one of the most significant pharmaceutical transactions these days and another step in Merck's strategy to strengthen its portfolio in viral diseases and immunotherapy.

The United States and South Korea have released details of a new trade and investment agreement that includes, among other things, a massive investment of approximately $150 billion in of the American shipbuilding sector. This is one of the largest foreign investments this year, which will significantly strengthen bilateral economic ties and influence global competition in maritime manufacturing.

There has also been a significant shift in the process of one of the largest rail mergers in the US. Companies Union Pacific a Norfolk Southern have scheduled key shareholder votes on the proposed mega-merger, worth approximately $85 billion, for November 14. If approved, the transaction will create one of the most powerful players in North American rail logistics.

Significant events outside the Czech Republic with global impact

The European Commission has launched an investigation against Google under the DMA's digital marketplace rules, which could affect the shape of the online advertising market across the European Union. The EU has also decided to remove the exemption from customs duties for shipments with a value of up to €150, which will start to apply in 2026, a major hit to logistics and e-commerce, particularly for imports from Asia.

The United States announces framework trade agreements with Argentina, Ecuador, Guatemala and El Salvador. These agreements include the elimination of selected tariffs and enhanced trade in agricultural and industrial products. They represent an important step for the region towards greater integration into North American production and trade chains.

In the meantime, oil prices continue to rise on world markets: type Brent rose by about 1.9 % to around $64 a barrel after a drone attack on an oil terminal in Novorossiysk, Russia. While the IEA also warns of an expected supply surplus in 2026, short-term concerns about supply shortfalls are fuelling volatility in energy markets.

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