NZ Bank Profits Too High?

March 03, 2023

Good Morning,

Egypt has unveiled the discovery of long corridor inside the Great Pyramid of Giza, Every man, woman and child in NZ is spending 2000 bucks a year on bank profits, China sent the most warplanes near Taiwan in nearly two months, The Australians are beating us in pay equality.

Let's jump in.

Before The Bell

Markets

  • The NZX 50 gained +0.2% to 11,900.86, and the ASX 200 inched +0.1% to 7.255.40.

  • The NASDAQ fell -1.1%, while the FTSE 100 gained +0.5%.

  • NZ, Aussie, and US 10-year bond yields all increased between 7.1 and 8.4 basis points.

News Summary

  • More than 1000 earthquake survivors are sheltering on a cruise ship in Turkey (Stuff)

  • Egypt has unveiled the discovery of long corridor inside the Great Pyramid of Giza – the first to be found on the structure’s north side (Stuff)

  • Anti-monopolist Tex Edwards: 'Every man, woman and child is spending 2000 bucks a year on bank profits' (Stuff)

  • More food products containing tahini are being recalled due to the possible presence of salmonella, including some distributed by My Food Bag (Stuff)

  • High-profile fund manager Milford Asset Management has once again won Morningstar's fund manager of the year awards, taking the top gong for the third year running (NBR)

  • Cannasouth believes 2023 is the year it starts generating “meaningful” revenue, with products in market and on the cusp of receiving crucial regulatory certification (NBR)

  • Nine Entertainment Co chairman Peter Costello has called in the recruiters to help re-stock a board left depleted by three director departures in the past year, and potentially find his own successor (AFR)

  • Private equity operative Mark Chudek is set to re-join pan-Asian buyout group Affinity Equity Partners, after a near two-year stint with Australian firm Quadrant (AFR)

  • Car manufacturers acquiring mining companies to secure raw materials needed for electric vehicle batteries will end badly if history is any guide, according to Goldman Sachs Group Inc.’s head of commodities (BBG)

  • China sent the most warplanes near Taiwan in nearly two months, a move that comes as the US approved the sale of $619 million worth of arms to the democratically run island (BBG)

  • Digital World Acquisition Corp (DWAC.O), a blank-check firm that is to merge with former U.S. President Donald Trump's social media platform, said on Wednesday it will file an appeal against a Nasdaq de-listing notice due to the non-payment of some dues (RT)

Deal Flow

Investments / M&A

  • Pushpay Holdings has published proxy voting results on the takeover proposal by BGH and Sixth Street Capital, showing independent shareholders’ support for the $1.34 a share takeover offer is currently under the minimum required for the deal to progress (NBR)

  • Chinese lithium batteries group CATL is $800 million richer thanks to a 3½ year stay at Australia’s Pilbara Minerals (AFR)

  • One-time IPO candidate and equipment rental bigwig Onsite Rental Group has sold for $635 million to Malaysia’s Sime Darby Berhad, implying 5.2-times on an EV to EBITDA basis (AFR)

  • Chinese battery developer Contemporary Amperex Technology has banked a giant profit in Australian lithium group Pilbara Minerals, selling its stake for $601 million overnight (AFR)

  • London’s Southend Airport is seeking a new owner after struggling to establish itself as a hub serving the UK capital (BBG)

  • Viasat Inc.’s $4 Billion takeover of Inmarsat Group Holdings Ltd. to create the world’s biggest geostationary satellite company has been provisionally cleared by the UK’s antitrust watchdog (BBG)

  • Stellantis NV agreed to sell its distribution business in Turkey to its local partner for €400 million euros ($425 million) to help bundle vehicle sales and services in the country (BBG)

  • China has pledged to invest an additional $1.9 billion in the country’s biggest maker of memory chips, a deal that may herald a renewed influx of government capital into an industry hemmed in by US sanctions (BBG)

  • Zip Co. expects “significant” capital inflows from asset sales as it prepares to exit most of its markets, unwinding a years-long expansion after a slump in the once red-hot “buy now, pay later” industry (BBG)

  • Toronto-Dominion Bank’s $13.4 billion acquisition of First Horizon Corp. may be delayed even more than the Canadian lender projected last month. Shares of the Memphis, Tennessee-based bank slumped (BBG)

  • Euronext NV has withdrawn an indicative, €5.5 billion ($5.8 billion) offer for investment-platform Allfunds Group Plc after both sides were unable to agree on the terms of a takeover (BBG)

  • Metals logistics platform MineHub to acquire Waybridge for $2.5 mln in shares (RT)

  • Canada's Enbridge Inc (ENB.TO) on Wednesday set out plans to invest C$3.3 billion ($2.4 billion) in natural gas and liquids infrastructure and renewable power this year, and said there were better investment opportunities in the U.S. due to green energy subsidies (RT)

Equity Raises

  • NZX-listed farmland investor NZ Rural Land Company has listed its shares on the Frankfurt stock exchange as it seeks further equity from cornerstone European investors (NBR)

  • WA gas play the Talon Energy launched a $12 million placement on Thursday morning to fund its share of the development costs of the Walyering gas project which it owns with Strike Energy (AFR)

  • The UK’s capital market suffered another hit as Europe’s largest building materials company and a jewel of Britain’s technology industry picked New York for their main listings (BBG)

  • EQT AB is reviving plans to take skincare business Galderma public, people with knowledge of the matter said, in what’s expected to be another key test for Europe’s market for initial public offerings (BBG)

Debt

  • Blackstone Inc. has defaulted on a €531 million ($562 million) bond backed by a portfolio of offices and stores owned by Sponda Oy, a Finnish landlord it acquired in 2018 (BBG)

Daily Picks

  • The Australians are beating us in pay equality. Why? (Stuff)

Job Board

New Zealand

  • Craigs Investment Partners Investment Banking Intern

    • To apply, please send an email including a cover letter, your CV and your academic transcript as attachments to [email protected] by 12pm on Friday, 3rd March 2023

  • Forsyth Barr Investment Banking Summer Internship. To apply, please email a cover letter, your CV and your university transcript by 12pm, Friday 3rd March 2023, to: [email protected](please ensure that the subject line reads ‘Investment Banking Internship’)

  • Goldman Sachs Investment Banking Intern

    • Apply here by 4th March

  • Jarden Investment Banking Intern and Grad Role

  • Macquarie Intern role

  • Murray & Co Investment Banking Intern and Grad Roles

    • Apply here for internships

    • Apply here for graduate roles

  • UBS Investment Banking Intern

Australia

  • Goldman Sachs Investment Banking Intern

    • Apply here by 18th July for Melbourne and Perth and August 1 for Sydney

  • Macquaire gradate roles

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