Daily summary of the Czech economy: JPMorgan, PPF, CSU, Tatra Truck and Modeta Style (4 June 2025)

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Overview of the latest economic events in the Czech Republic

Prague-based PPF Group has announced the sale of its Chinese arm, Home Credit, to a consortium led by JD.com for EUR 298 million, or approximately CZK 7.4 billion. The transaction, highlighted by Seznam Zprávy, has sparked conflicting reactions, with expectations higher and analysts describing the resulting amount as disappointing. The sale is part of a long-term restructuring of PPF's portfolio to focus more on European markets.

The Czech Statistical Office published data on April retail sales today. In March, sales rose by 3.4 % yoy, a slight acceleration from February's 3.2 %. On a month-on-month basis, retail sales increased by 0.6 %, with analysts' expectations for April pointing to a similar pace of growth, mainly due to a rebound in demand for food and consumer goods.

The Jihlava textile company Modeta Style with new owners continues to revive the brand of women's swimwear. This year it has already launched its own beachwear collection. The company expects sales of around CZK 23m for 2025, up from CZK 21.4m last year. With 37 employees, Modeta profiles itself as a modern brand with an emphasis on tradition, local production and expansion into foreign markets.

The Railway Administration has announced the start of land purchase for the first high-speed railway line between Prosenice and Ostrava-Svinov. Contracts have been concluded with more than 60 % from approximately 1,500 owners. The project, which is due to start in 2028, will enable the operation of high-speed trains at speeds of up to 320 km/h, thus fundamentally modernising the Czech railway infrastructure.

Foreign investment

Tatra Trucks, a traditional Kopřivnice-based manufacturer of trucks, is experiencing strong interest in foreign markets. The company plans to double production to 3,000 vehicles per year by 2028 and is investing massively in modernising its production capacity. At the same time, Tatra is actively expanding abroad, particularly in the Middle East, Latin America and Southeast Asia. This move strengthens the Czech Republic's position as a high value-added industrial exporter.

Yesterday, CEZ Group announced its interest to increase its investments in renewable energy in Romania and Bulgaria, where it already operates through its subsidiaries. The aim is to strengthen the portfolio with wind and solar parks worth over CZK 1.5 billion. This strategy follows the European trend of decarbonisation and brings new opportunities for Czech technologies.

Significant events outside the Czech Republic with global impact

Tensions persist in global markets due to the disruption of trade routes in the Red Sea and increased uncertainty in the South China Sea region. These geopolitical factors are affecting raw material prices and slowing down supply chains. Investors are watching developments particularly in the semiconductor and logistics sectors. Shares of companies such as Maersk and NVIDIA reacted with moderate volatility.

In the US, the acquisition of fintech company Plaid by banking group JPMorgan Chase for USD 11 billion was announced. The deal strengthens JPMorgan's position in digital payments and data collection and has the potential to transform digital banking. The event is also important for European markets as the competitive pressure on European banks to innovate in technology is expected to intensify.

Meanwhile, in Germany, BMW has announced a collaboration with CATL to supply batteries for the next generation of electric vehicles. The deliveries, worth over €7 billion, are intended to ensure continuity of production at the Munich and Leipzig plants. This cooperation may also have a positive impact on Czech suppliers in the automotive industry, especially in the area of components and logistics.

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