Cost of Living Crisis Continues

Author

Euan Marshall
May 02, 2023

Good Morning,

Insurance group IAG has deployed 145 bots which it claims have so far saved the company 700,000 work hours, Adidas is being sued by investors, ANZ is set to cut interest rates on its two- and three-year home loans and the average cost of living in New Zealand has risen by 7.7% in the last year.

Let's jump in.

Before The Bell

Markets

  • The NZX50 is back around the $12,000 mark, with the index rising around 0.8% last week. Tailwinds to our stock market have had a big helping hand from global sentiment (Stuff)

  • Australian shares ended the trading session in the green on Monday, tracking an upbeat mood on Wall Street ahead of key interest rate decisions by central banks (AFR)

  • ANZ’s April business confidence survey showed inflation expectations had eased slightly to 5.7% from 5.82% the previous month (NBR)

  • Bitcoin slipped back Monday after climbing for four consecutive months through April in the longest such winning run since 2021 (BBG)

  • China’s economic recovery remains patchy, with latest indicators pointing to a contraction in manufacturing, while consumers splurge over the holidays and the housing market continues to rebound (BBG)

  • Sony Group Corp’s shares fell as much as 4.8% on Monday after the Japanese electronics and entertainment conglomerate’s annual profit outlook fell short of market expectations (RT)

Earnings and Data

  • The cost of living for the average household increased by 7.7% in the 12 months to March, according to figures released by Stats NZ (Stuff)

News Summary

  • ANZ will cut the interest rate it charges on its two- and three-year home loans. From Tuesday, the interest rate on its standard two-year home loan will drop 10 basis points to 7.09% (Stuff)

  • Sportswear company Adidas is being sued by investors, who argue the company knew about Kanye West’s troubled behaviour long before a partnership was terminated (NBR)

  • Insurance group IAG has deployed 145 bots which it claims have so far saved the company about 700,000 work hours, as it plans to increase the use of artificial intelligence as part of a technology upgrade costing up to $200 million AUD a year (AFR)

  • JPMorgan Chase & Co will buy most of First Republic Bank’s assets in a last-ditch rescue led by U.S. regulators, marking the third major U.S. institution to fail in two months (RT)

  • MasterChef Australia host Jock Zonfrillo has died suddenly, aged 46 (BBC)

  • Police in Texas are still searching for a man accused of killing five neighbours (RT)

  • Bitcoin’s rebound is just at the start of a rally that will take it past $50,000 next year courtesy of a process known as halving that curbs the supply of new tokens, according to projections from crypto analysts (BBG)

Deal Flow

Investments / M&A

  • Automotive distributor Ateco Group, which converts RAM pick-up trucks to right hand drive is in the crosshairs of a suitor (AFR)

  • The bankers running the sale process of Subway have given the private equity firms vying for the sandwich chain a $5 billion acquisition financing plan, hoping to overcome a challenging environment for leveraged buyouts and fetch the company’s asking price of more than $10 billion USD (RT)

  • Japan’s Astellas Pharma said on Monday it agreed to buy U.S. drugmaker Iveric Bio Inc for about $5.9 billion in its biggest acquisition, giving it access to a range of ophthalmology treatments (RT)

  • Potentum Partners, the fund-of-funds manager set up by the Future Fund’s former private equity team, has mopped up a $300 million AUD raising for its inaugural global PE fund (AFR)

VC & Fundraising

  • Information search software specialist Pingar has raised $800,000 in a fresh funding round designed to accelerate growth following the opening of the company’s Auckland office (NBR)

Equity Raises

  • British microchip designing giant Arm has filed to sell its shares in the US, setting the stage for what could be the biggest stock market listing this year (BBC)

Daily Picks

  • Check out this article from Stuff on their five ways to prepare your finances for a recession

  • Check out NBR’s review of the current conditions in New Zealand markets here 

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - Apply here

Australia

  • Citadel Securities graduate and intern roles - Apply here

  • Goldman Sachs Investment Banking Intern - Apply here

  • IMC graduate and intern roles - Apply here

  • Jarden

    • Graduate role - Apply here

    • Summer internships - Apply here

  • Macquarie graduate roles - Apply here

  • Optiver

    • Graduate role - Apply here

    • Internships - Apply here

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