The Crypto King's Trial Begins 👑👨‍⚖️

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October 05, 2023

Good Morning,

The RBNZ has kept the OCR at 5.5%, US bond yields hit their highest level since 2007, Australia had its driest September on record, the US House of Representatives voted to remove Speaker Kevin McCarthy, the UK’s cost of debt has hit its highest level in 20 years, Netflix plans to raise prices, Saudi Arabia will continue crude oil output cuts for the rest of 2023 & Sam Bankam-Fried’s trial has begun.

Let's jump in.

Before The Bell

Markets

  • The NZ market was flat after OCR stayed at 5.5% (GR)

  • The ASX fell to an 11-month low on the back of the sell-off on Wall Street and a sell-off of the big four banks (AFR)

  • The US markets suffered from increased interest rate worries after better-than-expected job data

    • US bond yields hit their highest level since 2007

Earnings and Data

  • US job openings beat expectations, coming in at 9.6m job openings for August, up from 8.9m in July (WSJ)

News Summary

  • The RBNZ has kept the OCR at 5.5% (Stuff)

  • Retail crime is costing NZ more than $2.5B (NZD) a year (Stuff)

  • Whole milk powder prices have lifted 4.8% to $2391 (USD) per ton at the Global Diary Trade auction (Stuff)

  • 2 Cheap Cars has been fined 40k (NZD) and censured for breaching NZX listing rules (NBR)

  • Qantas has told the Australian government not to review the rejection of extra Qatar Airways flights (9 News)

  • Hundreds of Coles and Woolworths employees will strike on Saturday (9 News)

  • Australia had its driest September on record (9 News)

  • NSW Premier Chris Minns has ruled out an empty homes tax (AFR)

  • WeWork is closing two Sydney offices (AFR)

  • Australian law firm Mills Oakley has added four new partners (AFR)

  • The US House of Representatives voted to remove Speaker Kevin McCarthy (BBC)

  • The US have sanctioned 25 Chinese firms and individuals allegedly involved in the production of chemicals used in fentanyl (BBC)

  • Sam Bankam-Fried’s trial has begun (BBC)

  • Meta will lay off employees in their metaverse-oriented Reality Labs division (RT)

  • The UK’s cost of debt has hit its highest level in 20 years (BBC)

  • UK & Ireland are the only bidder for Euro 2028 (BBC)

  • The HS2 West Midlands to Manchester line has been scrapped (BBC)

  • TikTok has shut down its Indonesian business (BBC)

  • Netflix plans to raise prices (WSJ)

  • Saudi Arabia announced it would continue crude oil output cuts for the rest of 2023 (RT)

Deal Flow

Investments / M&A

  • TPG Telecom and Vocus are expected to continue talks over the potential sale of ~$6B (AUD) worth of assets despite the expiry of an exclusive period of due diligence (AFR)

  • Eli Lilly, an American pharmaceutical company, has agreed to pay $1.4B (USD) for cancer drug maker Point Biopharma (BBG)

  • BP is exploring the sale of its $1B (USD) US pipeline (RT)

  • Brookfield has acquired the UK onshore windfarm operator Banks Group in a deal worth ~$1B (USD) (BBG)

  • Octopus Investments Australia, a renewables player backed by superannuation players Hostplus and Rest Super, has acquired Queensland’s largest proposed battery project from Sydney-based Firm Power. The battery project is expected to have an EV of $800m (AUD) once it is up and running (AFR)

  • Australian company Computershare has agreed to sell its US mortgage portfolio for $720m (USD) to asset manager Rithm Capital (RT)

  • Singapore Power’s subsidiary Temasek has hired Goldman Sachs to find a buyer for its 40% stake in gas and electricity distribution giant Jemena (AFR)

  • Gina Rinehart has increased her position in lithium miner Liontown to 14.67% (BBG)

  • WiseTech Global, a freight software provider, has purchased the online marketplace MatchBox (AFR)

  • Smart Energy, a supplier and installer of residential rooftop solar and battery systems, is trying to find a new partner to help grow the business (AFR)

  • MinterEllison has acquired higher education consultant Wells Advisory (AFR)

  • Westpac has failed to sell its Pacific banking business (RT)

VC & Fundraising

  • Brookfield Asset Management has raised $12B for a new private equity fund (WSJ)

  • Bain Capital has raised a €6.4 European buyout fund (BBG)

  • Anduril Industries, a defence startup, is in talks to raise $400m to $500m (USD) (BBG)

  • Christchurch-based med-tech company HT Systems is trying to raise $1.5m (NZD) via the crowdfunding platform PledgeMe (NBR)

Equity Raises

  • Masons Stevens, a wealth technology company, is pushing ahead with its planned IPO before the end of the year. It is currently holding meetings with fund managers (AFR)

  • NZ-based honey company Comvita is mulling an overseas listing (NBR)

Debt, Financing and Restructuring

  • Carlyle is seeking $2.5B (USD) in debt financing for its bid for one Medtronic’s units (BBG)

  • SAS chose Air France-KLM and PE firm Castlelake to anchor its $1.2B (USD) restructuring (BBG)

  • Ngāi Tahu’s Oha Honey will be wound down after suffering losses of $23m (NZD) (NBR)

Daily Picks

  • Read more on the sell-off of global bonds here

  • Find out about Amazon’s secret algorithm used to raise prices here

  • Check out the Australian league tables for banking here

The Daily Deck is sponsored by Industrial Equity, LLC

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