Czech GDP for Q2 was revised up to 2.6% year‑on‑year (from 2.4%), while quarter‑on‑quarter growth slowed to +0.5% (vs. +0.7% early in the year and +0.8% at end‑2024), slightly outperforming the prior 2.4% expectation. The upward revision reduces the likelihood of further policy rate cuts in the near term. Quarterly expansion was driven mainly by a renewed acceleration in household consumption (+1.0% q/q), improving investment activity (+0.5% q/q) and inventory accumulation; net exports remained weak as expected. Analysts expect growth to ease in coming quarters to around 0.3% q/q, partly due to delayed effects of U.S. tariffs, but today’s figures lift full‑year outlooks to 2.2% for 2025 (from 2.1%) and 1.9% for 2026 (from 1.8%). For the central bank, the print is consistent with its current projection and supports a relatively hawkish stance. Forecasters say they will await August inflation data and Q2 wage figures: if wages sustain their elevated momentum—nominal pay growth is currently about 6.7%—they will likely drop expectations for further rate cuts and assume the repo rate remains at 3.50% for longer. #GDP #CzechRepublic #CNB #FiatNews

Management says the acquisition strengthens vertical integration and secures control over a strategic supply chain input. Colt’s adjusted EBITDA target for 2025 is CZK 5.5bn; net debt stood at about CZK 11.1bn as of 31 March 2025. After the first cash payment net debt could rise to ~CZK 17.8bn (around 3.2x net debt/EBITDA), though unaudited Q2 cash generation could bring leverage below 3x. Jan Drahota, Colt’s chairman, said the company aims to continue vertical integration to support the strategic independence and self-sufficiency of the Czech Republic and NATO in defence supplies. #ColtCZ #Synthesia #CzechRepublic #FiatNews

Colt CZ Group SE has agreed to buy a 51% stake in Synthesia Nitrocellulose and the energy division of chemical producer Synthesia in a deal that values the transaction at 22 billion CZK. The arms maker said it will acquire the remaining 49% under already agreed terms over the medium term; the energy unit is being bought for 1.4 billion CZK. Payment will be partly cash and roughly 40% by issuance of new ordinary shares, which will make owner Kaprain the company’s third-largest shareholder after closing. Completion of the energy-division transaction is expected in the first half of 2026, starting with the 51% stake and later the remainder. Synthesia Nitrocellulose, carved out as a separate unit in December, is a major European and North American producer of energetic nitrocellulose, a core raw material for small- and large-caliber ammunition. The Pardubice chemical plant also manufactures industrial nitrocellulose and oxycellulose used in healthcare. Synthesia’s energy division supplies power to the Semtín and Rybitví industrial sites. "The acquisition of SNC fits into our strategy of expanding the group’s activities into medium- and large-caliber ammunition and at the same time strengthens our position in an absolutely key element of our supply chain. We intend to continue with further vertical integration of ammunition and cartridge production," said Colt CZ chairman Jan Drahota. #ColtCZ #Synthesia #Kaprain #FiatNews

Central Europe — closing indices 28.08.2025: Poland WIG20 2,828.32 (-0.99%), Czech PX 2,282.42 (-0.19%), Hungary BUX 103,751.98 (-0.46%). Czech market movers: biggest risers ERSTE BANK +0.70%, ČEZ +0.23%, Philip Morris ČR +0.22%; largest decliners Kofola ČS -0.76%, Komerční banka -0.39%, Moneta -0.26%. #WIG20 #PX #FiatNews

#Poland: August CPI due this morning is expected to fall further, potentially below 3.0% y/y. If confirmed, that would open the way for an NBP policy rate cut at the central bank’s meeting next Wednesday. #Poland #NBP #FiatNews

#EURUSD rallied back above 1.16 toward 1.17, a move slowed by a revised US Q2 GDP of 3.3%. Focus shifts to upcoming US labour data and today’s personal spending/PCE deflator for July. Fed candidate Ch. Waller said a materially weaker jobs picture could justify a large cut (~50bp), a negative for the dollar; French political uncertainty adds extra volatility. #EURUSD #FiatNews

ECB likely to keep rates on hold in September after its July pause, with minutes suggesting the deposit rate could remain at 2.0% for an extended period. President Lagarde said the bank is comfortable with current settings; governors see inflation risks broadly balanced though some warn a stronger euro could risk undershooting the target. Markets price near‑certain September stability. #ECB #FiatNews

Wall Street strategists say the ongoing French political turmoil is already priced into markets and is unlikely to derail this year’s European equity rally. The surprise move by Prime Minister François Bayrou to call a confidence vote over a budget dispute shook sentiment, but analysts at Goldman Sachs, Citigroup and JPMorgan Asset Management argue the risk of contagion across Europe is low, supported by German fiscal reforms and resilient regional growth. Key figures: the Stoxx Europe 600 has outperformed the S&P 500 by nearly 13 percentage points in dollar terms so far this year—the biggest lead since 2006. The CAC 40 slid as much as 3.3% over two days after Bayrou’s announcement and the spread between French and German 10‑year bonds widened to roughly 80 bps, but some large CAC names, including LVMH, Hermès and L’Oréal, have largely recovered. Citi notes about 80% of CAC 40 revenues are generated abroad, and the index trades at 14.8x expected earnings, a small discount to the DAX. Strategists highlighted that fundamentals already reflect downside scenarios. "Fundamentals already price in bearish scenarios," said Beata Manthey of Citigroup, while Goldman Sachs economist Sharon Bell added, "we do not see any impact of the political crisis in Paris on growth so far." BNP Paribas AM’s Sophie Huynh pointed to improving profit outlooks and better China data as more important than political uncertainty. Bond markets have felt the biggest effect, but some managers see buying opportunities if spreads widen further. #CAC40 #Euro #LVMH #FiatNews

Risk update: External risks include an EU‑US trade conflict, heightened geopolitical tensions and Germany’s structural weaknesses. Domestic risks comprise persistent core inflation, weaker household consumption amid a cooling labour market and structural issues in the automotive sector. #FiatNews

FX: The Czech koruna strengthened below 24.50 EUR/CZK, supported by the central bank’s hawkish stance and a weak dollar. Further appreciation looks limited in the near term as the interest‑rate differential may have peaked; a key upside risk is a negotiated end to the war in Ukraine. #CZK #EURCZK #FiatNews