Rates Rise on Cup Day

November 02, 2022

Good Morning,

Tip Top has made more changes to its ice cream lineup, Gold Trip won the Melbourne Cup, the Reserve Bank of Australia raised rates by 25 basis points, Eurozone inflation hit a record high of 10.7% in October, an Instagram bug has told some users their accounts are suspended & Elon Musk has dissolved Twitter's board of directors.

Let's jump in.

Before The Bell

Markets

  • The New Zealand market was down slightly. It was a quiet day as investors turned their attention to employment data coming out tomorrow and central bank decision in the US and UK later in the week. (GR)

  • The Australian market rallied after the Reserve Bank of Australia kept with 0.25% rate hikes. (AFR)

  • All three major US market averages were down on Monday as all eyes are on the Fed's decision later in the week.

    • However, the Dow had its highest monthly percentage gain since 1976 and its highest October gain in 100 years.

Earnings

  • BP announced its second-highest quarterly profit ever of $8.2B (USD). It announced it would carry out a further $2.5B (USD) share buyback. (BBG)

News Summary

  • Tip Top has made more changes to its ice cream lineup, including scrapping Jelly Tip Trumpets. (Stuff)

  • Grant Rosewarne has resigned as CEO of NZ King Salmon. (Stuff)

  • Raewyn Bleakley has taken the CEO role at the Food and Grocery Council. (NBR)

  • Greenfern Industries chair Brent King has resigned. (NBR)

  • More than 70,000 people attended the Melbourne Cup, which Gold Trip won. (9 News)

  • The NSW rail union has warned of further strike action. (9 News)

  • Victorian businesses affected by floods will receive help from an $877m (AUD) support package. (9 News)

  • The Reserve Bank of Australia raised rates by 25 basis points, and warned rates will go even higher to fight the evils of inflation. (AFR)

  • Eurozone inflation hit a record high of 10.7% in October, and GDP growth shrunk to 0.2%. (FT)

  • Oleg Tinkov, a Russian tycoon, has renounced his Russian citizenship and criticised the Ukraine war. (BBC)

  • New EU law could open up messaging apps and app stores. (BBC)

  • North Korea has threatened the US with powerful follow-up measures if it doesn't stop conducting drills with South Korea. (BBC)

  • US oil production is at pre-pandemic highs nearing 12M bpd. (RT)

  • An Instagram bug has told some users their accounts are suspended. (BBC)

  • Elon Musk has dissolved Twitter's board of directors. (BBC)

  • Credit Suisse is not for sale, according to the Chairman. (BBG)

Deal Flow

Investments/ M&A

  • Johnson & Johnson, an American multinational that develops medical devices, pharmaceuticals & consumer packaged goods, will acquire heart pump maker Abiomed in a deal valued at $16.6B (USD). (RT)

  • Penguin Random House's $2.18B (USD) takeover of rival book publisher Simon & Schuster has been blocked by a US federal judge. (BBG)

    • German media group Bertelsmann SE & Co, who own Penguin Random House, will appeal the ruling. (RT)

  • State-owned phone carrier PT Telkom Indonesia is exploring deals for its $1B (USD) data centre unit. (BBG)

  • Asda, a British supermarket chain, has completed their £600m takeover of Co-Op petrol forecourts. (BBG)

  • Gaw Capital Partners, a Hong-Kong-based real estate PE firm, is close to a deal for alternative investment firm Blackstone's Tokyo assets for $540m (USD). (BBG)

  • Davide Campari-Milano NV, an Italian aperitif specialist, is acquiring a 70% stake in US bourbon maker Wilderness Trail Bourbon for $420m (USD). They also have plans to acquire the remaining 30% by 2031. (BBG)

  • Telco infrastructure play Superloop has acquired VostroNet, a leading provider of high-speed internet, for $34m (AUD). (AFR)

  • Top global battery maker Contemporary Amperex Technology Ltd has agreed to take an almost 25% stake in CMOC Group which is a major cobalt producer. (BBG)

  • Billionaire Tilman Fertitta acquired a 6.1% stake in Wynn Resorts, a hotel and casino company. (BBG)

  • Chinese insurer Daija Insurance Group is in talks to sell luxury hotels in Scottsdale, Arizona & Jackson Hole. (BBG)

  • China Merchants Group, a state-owned firm, is considering a takeover bid for Bain Capital-backed Chinese data centre operator Chindata Group Holdings. (BBG)

  • Software company ReadyTech's second biggest shareholder Microequities Asset Management has expressed concerns about the offer from PE firm Pacific Equity Partners. (AFR)

VC & Fundraising

  • Australian buyout firm Quadrant Private Equity has raised $255m (AUD) from investors, including Future Fund and ROC Partners, for a new single asset fund that will buy and own the group's auto parts distributor MotorOne. (AFR)

Equity Raises

  • MidEast KFC operator Americana Group is set for an Abu Dhabi and Riyadh dual listing which will see a 30% stake up for sale that could raise ~$1B (USD). (BBG)

  • Dubai has increased the size of the Emirates Central Cooling Systems Corp by 50% on strong demand meaning a 15% stake will be sold, which could raise $543m (USD). (BBG)

  • Credit Suisse & CICC are said to have been picked for a sale of GDRs in Switzerland for the Chinese e-commerce platform Beijing United Information Technology Co, which could raise $500m (USD). (BBG)

  • Enprise Group, an NZ software and services investment company, has launched a 1 to 10 rights offer which aims to raise ~$1.38M (NZD). (NZX)

Debt

  • Musk's lenders are preparing to hold $12.7B (USD) of Twitter debt on their books until early 2023. (RT)

  • Goldman Sachs and Sixth Street are the lead lenders in a $2.6B (USD) loan for Blackstone's Emerson deal. (BBG)

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