Daily economic news from the Czech Republic: overview of the past 24 hours (7.2.2025)

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Overview of the latest economic events in the Czech Republic
Czech companies continue to expand their international presence. The North Bohemian company Crystal Caviar created a 228-metre-long chandelier for a luxury shopping centre in Riyadh, Saudi Arabia. This stainless steel and cut crystal chandelier, designed by Czech artist Jaroslav Prošek, is seeking recognition by the Guinness Book of World Records as the world's longest chandelier.

A major Czech energy company has completed the acquisition of a Slovak distribution company, strengthening its position in the energy infrastructure market in the region. The acquisition is expected to strengthen cross-border electricity distribution and support renewable energy projects. This expansion is in line with the Czech government's broader energy security strategy, which reduces dependence on external energy sources while strengthening ties with key regional partners.

Several Czech energy companies are actively expanding their activities on the domestic and international markets:
CEZ Group: as the largest energy company in Central and Eastern Europe, CEZ Group is expanding its renewable energy portfolio and focusing on emission-free electricity generation. The company is also investing in the modernization of its distribution network in the Czech Republic, which it has supported with a EUR 400 million loan from the European Investment Bank.

Energetický a Průmyslový Holding (EPH): EPH, headed by Czech billionaire Daniel Křetínský, has signed an agreement to take over the Italian group Enel's 50% stake in their joint holding company, which owns a majority stake in Slovak electricity producer Slovenské Elektrárne. The acquisition is expected to strengthen EPH's position in the Central European energy sector, particularly in the nuclear and hydro power sectors.

Sev.en Energy: Sev.en Energy, owned by Czech billionaire Pavel Tykač, is expanding its international footprint by acquiring carbon-intensive assets outside the European Union, including operations in the United States, Australia and Vietnam. The strategy aims to take advantage of regions with a slower transition to clean energy.

Foreign investments - trends and interesting facts
Significant foreign investment in the Czech Republic's industrial sector has been announced in the last 24 hours. A leading European manufacturing company has confirmed plans to set up a new production plant in Moravia with a focus on automotive components. The multi-billion CZK project is expected to bring hundreds of new jobs and strengthen the country's position as a key supplier within the European automotive supply chain. The Czech government is reportedly in talks to finalise incentives that will support the investment and ensure long-term economic benefits.

The Czech Republic and South Korea have launched a new investment cooperation programme, particularly in the technology and semiconductor sectors. The aim of this initiative is to attract Korean technology companies to the Czech market and to support research and development in the field of artificial intelligence and microchip production. This is in line with national economic priorities aimed at diversifying the industrial base and strengthening technological capabilities.

Significant events outside the Czech Republic with global impact
In the last 24 hours, the US stock markets (NASDAQ and NYSE) have seen slight fluctuations, with technology and energy stocks leading the rise. European markets, particularly Frankfurt's DAX and London's FTSE 100, struggled with concerns over a possible ECB interest rate decision. Asian markets, meanwhile, struggled with mixed results as uncertainty over the performance of Chinese industry continued.

For the Czech Republic, this development may impact investor confidence in the Prague Stock Exchange and affect export demand from key trading partners. A new trade agreement between the European Union and a key Asian market has been finalised, focusing on exports of industrial goods and automotive components. This could directly benefit Czech manufacturers, particularly in the automotive and engineering sectors, and strengthen the country's role as a European manufacturing hub. The government is actively working to ensure that Czech businesses gain early access to these trade advantages.

The Czech Republic intensified diplomatic talks with its North American partners to discuss strengthening cooperation in technology investment and defence production. These discussions are in line with the country's strategy to attract foreign direct investment in the high-tech sector to ensure long-term economic stability. In addition, government officials are in talks with Middle Eastern investors to explore opportunities in infrastructure and energy diversification.

Impact on the Czech economy
Fluctuations on the US, European and Asian stock markets could affect investor confidence in the Prague Stock Exchange (BCPP). If international demand for industrial exports weakens, Czech manufacturers may face a decline in orders, especially in the automotive and engineering industries. The government is monitoring these trends to determine possible economic policy responses.

Thanks to new EU trade agreements, opportunities for Czech industrial exports are opening up and companies can expand into key Asian markets. The government is working to ensure favourable conditions for Czech manufacturers, particularly in the high-tech and automotive sectors, to ensure long-term economic growth.

Current exchange rates according to the CNB and Google Rates

Source about precious metals and Bitcoin: tradingeconomics.com

GH

photo: crystalcaviar.eu