Investors Bet on Rate Cuts as Major Deals Unfold | News Glare

Investors pushed global markets higher on Monday as bets on imminent U.S. rate cuts coincided with headline-making deals: RWE and Apollo pledged €3.2 billion to fund Amprion’s grid expansion, while Volkswagen held advanced talks on U.S. investments and CEFC with La Caisse launched a AU$250 million Australian ag-carbon platform.

The flurry of deals underscores a broader shift in capital flows toward infrastructure, sustainable agriculture and strategic corporate partnerships just ahead of the Federal Reserve’s September meeting. Markets have priced in at least a 25 basis-point cut, driving demand for equities and large-scale transactions in energy, transport and agribusiness.

Fed Rate Cut Bets Lift Wall Street

Wall Street’s three major indexes rose as traders grew confident the Federal Reserve will slash borrowing costs this month. The Nasdaq closed at a record intraday high after Broadcom shares jumped on AI-chip orders, while the S&P 500 inched up amid anticipation of multiple rate reductions before year’s end.

RWE and Apollo Forge €3.2 Billion JV for Amprion

RWE and Apollo Global Management agreed to form a joint venture to secure equity funding for RWE’s 25.1 percent stake in grid operator Amprion. Apollo will commit €3.2 billion in upfront capital, with RWE retaining operational control to support Amprion’s decade-long expansion program in Germany’s power transmission network.

Apollo to pay €3.2 billion for stake in newly formed JV
RWE to reinvest proceeds into grid upgrades over the next decade
Transaction closes Q4 2025, pending approvals

Volkswagen in Advanced U.S. Investment Talks

Europe’s largest automaker entered advanced discussions with the U.S. government over significant capital injections aimed at bolstering its presence in the American market. The talks seek to offset billions in tariffs paid so far this year and enhance local production capacity ahead of stricter EV mandates, according to sources familiar with the negotiations.

CEFC, La Caisse Commit AU$250 Million to Sustainable Agriculture

The Clean Energy Finance Corporation and La Caisse de dépôt et placement du Québec teamed up to launch a AU$250 million platform targeting climate-smart farming in Australia. Backed by Rio Tinto as a foundational offtaker, the fund will invest in native vegetation restoration and carbon credit generation alongside agronomic improvements for resilience and biodiversity gains.

Tech and AI M&A Drive Market Momentum

Chipmakers fueled rallying markets as Broadcom surged on a US$10 billion AI-chip order and ASML committed €1.3 billion to increase its stake in France’s Mistral AI, bolstering Europe’s semiconductor ecosystem. Broader AI-related M&A also picked up, with Converge Technology Solutions agreeing to a CAD 1.3 billion sale to H.I.G. Capital, reflecting relentless investor appetite for technology consolidation.

As policymakers weigh economic headwinds, investors are reallocating capital into strategic infrastructure, renewable energy, and technology assets, signaling confidence that lower interest rates will unlock fresh growth opportunities across sectors.