Socceroos suffer tough loss 🇦🇷

Good Morning,

Commodities sank as China's COVID-19 outbreak worsened, UBS has added another 0.25 percentage point rate rise to its Reserve Bank forecast, Australian CPI came in cooler than expected at 6.9%, Fisher Funds becomes New Zealand's largest wealth provider, Jerome Powell's most important inflation indicator is cooling down.

Before The Bell

Markets

• Commodities sank as China's COVID-19 outbreak worsened and a series of stunning street protests threaten to derail economic activity and sap demand for energy, food and raw materials (AFR)

• UBS has added another 0.25 percentage point rate rise to its Reserve Bank forecast, meaning the broker now expects the Australian cash rate to peak at 3.35 per cent. (AFR)

• Stickier inflation means more work to do for RBNZ. It now expects the current 4.25 per cent cash rate to peak at 5.5 per cent and the economy to start contracting next year until early 2024. (AFR)

• Traders Start Taking Notice as China ETF Rebound Gets Extreme. (BBG)

Earnings

• Kiwi Property Group Ltd, one of New Zealand's biggest listed landlords declares a $151.1 million NZD net loss in its latest half year, while rental income rose by 6 per cent. (NZH)

• Third Age Health Services, a primary care provider has reported a general practice revenue of $1.8 million NZD during the first half of this financial year, up 304.3% on pcp and 137.0% against the 6-month period ended 31 March 2022. (NZ Doctor)

• Eftpos terminal and payments provider Smartpayhas posted a net profit of $2.7 million NZD for the six months to the end of September, up from $400,000 in the prior corresponding half. (NBR)

• F&P Healthcare’s shares jump with second-half growth tipped (NBR)

• Buy-now, pay-later company, Laybuy is confident it will be first in the sector to achieve ebitda profitability after posting $14.9m loss. (NBR)

• Arvida's interim profit grows despite Covid-19-related challenges. Net profit gain of $13.7 million over the last half. (RNZ)

Upcoming Earnings This Week

• Monday: Me Today Ltd, Scott Technology Ltd, Aspermont Ltd, AIC Mines Ltd, Buddy Technologies Ltd

• Tuesday: SomnoMed Ltd, GitLab Inc, Science Applications International Corporation, Freedom Holding Corp

• Wednesday: BHP Group Limited, AutoZone Inc, Ferguson plc

• Thursday: Banco Santander Brasil SA, Brown Forman Corporation, Companhia Paranaense de Energia (COPEL), Campbell Soup Company

• Friday: Oracle Corporation, Broadcom Inc, Costco Wholesale Corporation, lululemon athletica inc.

News Summary

Monday

• Over the weekend people gathered in Chinese capital Beijing and Shanghai, angry at President Xi Jinping's zero-Covid approach. Some called for Xi to resign. (BBC)

• Police used water cannons and tear gas to deal with unrest in the centre of Brussels on Sunday following Morocco's 2-0 World Cup win over Belgium in Qatar. (BBC)

• Early Black Friday results show higher traffic in stores and deeper promotions across the U.S. Deep discounts lured shoppers seeking a reprieve from stubborn inflation. (BBG)

• The Government will pay $4000 to every small shop and dairy wanting to install fog cannons, following the death of worker Janak Patel. (Stuff)

Tuesday

• Stickier inflation means more work to do for RBNZ. It now expects the current 4.25 per cent cash rate to peak at 5.5 per cent and the economy to start contracting next year until early 2024. (AFR)

• Consumer sentiment has slumped further amid rising interest rates, high inflation, falling house prices, and the prospect of a slowing economy. The ANZ-Roy Morgan consumer confidence survey shows a five point fall to 80.7, the lowest level since June. (RNZ)

• Ardern was forced to announce something tangible to reduce the rates of aggravated robbery in New Zealand. (Stuff)

Wednesday

• Australian CPI came in cooler than expected at 6.9% enhancing optimist that the Australian economy can avoid a recession (AFR)

• China plans to crackdown on protestors opposing Covid rules (BBC)

• Arvida Group says more work is needed by the government on nursing shortages (NBR)

• Mancunians Marcus Rashford and Phil Foden have sent England to the last 16 of the Fifa World Cup after scoring in a 3-0 victory of neighbours Wales (BBC)

Thursday

• NBN Co will not recover at least $31 billion the government invested to build the network (AFR)

• Jerome Powell's most important inflation indicator is cooling down (BBG)

• Damning report raises tough questions for South Africa's president Cyril Ramaphosa (BBC)

• Fisher Funds becomes New Zealand's largest wealth provider after completing the acquisition of Kiwi Wealth (NBR)

Friday

• An earthquake has rattled many households across the North Island on Friday evening. A 5.4 magnitude quake struck 20km southeast of Tokoroa, shortly after 6pm. It occurred at a depth of 159km. (Stuff)

• After monkey trial, Elon Musk wants to put brain implant in humans. (9 News)

• Japan scored a controversial winner as they staged another extraordinary World Cup comeback to top Group E ahead of Spain and reach the last 16. (BBC)

• A senior official has said that up to 13,000 Ukrainian soldiers have been killed since the start of Russia's invasion. Mykhailo Podolyak, an adviser to Ukrainian President Volodymyr Zelensky, said between 10,000 and 13,000 troops had died. (BBC)

• Musk Suspends Ye From Twitter After Offensive Image Post. (BBG)

Weekend

• Airline profits and fares are unlikely to fall in the next couple years (NBR)

• An unregistered cafe owner in Kaikoura has been inprisoned for disobeying food safety rules (Stuff)

• Socceroos have been defeated by Argentina and eliminated from the World Cup 2022 (7News)

• Russia rejects $88 price cap per barrel on its oil that was set by Ukraine's Western supporters (9News)

• Xi Jinping is unwilling to accept Western vaccines despite various protests (RT)

• Islamic State has claimed responsibility for the attack on the Pakistani embassy in Kabul that targeted the ambassador (RT)

Deal Flow

Investments/ M&A

• Marine and campervan equipment retailer Burnsco will shift to Australian ownership after its Macleod family shareholders agreed to sell the business to Jaycar Electronics Group. (NBR)

• Mexico's Banca Mifel has lined up investors including Apollo Global Management and the Abu Dhabi Investment Authority to fund a bid for Citigroup Inc's Mexican retail bank. (RT)

• Former RBS Fixer Charts Course to $50 Billion Credit Empire at Pemberton. (BBG)

• Greenfern, an NZX listed medical cannabis company launches $1.2m wholesale offer as a part of a plan to raise $5 million. (NBR)

• French engineering group Egis to buy Calibre Group's urban development consulting group, Built Environment (AFR)

• Saudi Arabian food delivery service Jahez to buy Chefz in cash and stock deal (BBG)

• Smash repairer Western General hunts private equity investors to take over the business (AFR)

• Data fintech Demyst fields interest from US private equity firms (AFR)

• NZX listed Tourism Holdings has completed a merger with Australian-based RV operator Apollo Tourism & Leisure (NBR)

• Agricultural chemical giant Corteva Inc. agreed to buy biologicals firm Stoller Group for $1.2 billion to accelerate its expansion into the growing market for nature-based crop protection products. (BBG)

• Auckland Mayor Wayne Brown has raised the possibility of selling the council’s 18.09% shareholding in Auckland Airport, in a move he said could raise nearly $2 billion (NZD). (NBR)

• NYSE-listed consulting giant Accenture has acquired Mercury Capital-backed marketing research services business FiftyFive5, spelling a big payday for the Sydney PE firm’s investors. (AFR)

VC & Fundraising

• IT services outfit Atturra Limited was rounding up investors for a $25 million AUD raise before the market open on Monday, telling them it would use the proceeds for acquisitions. The acquisitions were not named but investors were told together they would add $55 million to $65 million AUD in revenue to Atturra's bottom line. (AFR)

• Shell Plc is selling its stakes in a group of North Sea oil fields, according to marketing materials seen by Bloomberg News. (BBG)

• Mexico's Banca Mifel has lined up investors including Apollo Global Management and the Abu Dhabi Investment Authority to fund a bid for Citigroups Inc's Mexican retail bank. (RT)

Equity Raises

• Microcap Pilot Energy was rattling the tin for $1.7 million AUD to advance its Cliff Head carbon capture and storage project. The placement was priced at 1.5 cents per share, a 12 per cent discount to the last close. (AFR)

• Melbourne metal manufacturing specialist Titomic Limited had PAC Partners rounding up investors for a $4 million placement on Tuesday to pay for working capital and joint venture costs. (AFR)

• Kiwi cervical cancer screening device company TruScreen will try to raise up to $2 million in capital early next year after its unaudited half-year accounts were flagged by directors as a "going concern". (NBR)

• Lithium explorer, Red Dirt to issue a $50 million AUD institutional share placement to fund work at its Mt Ida and Yinnetharra projects (AFR)

• Sunshine Insurance sets terms for $948 million USD Hong Kong IPO (BBG)

• Regal Investment Fund raising $80 million AUD to stock up credit strategy (AFR)

• Dominos Pizza asks for a $100 million AUD equity top up (AFR)

• Chinese nickel producer Lygend Resources, IPOs in Hong Kong (BBG)

• PT Nusantara Sejahtera Raya, the operator of Indonesia’s largest movie theater chain Cinema XXI, is considering an initial public offering in Jakarta that could raise as much as $1.1 billion, according to people familiar with the matter. (BBG)

Debt Raises

• China has ordered its top four state-owned banks to issue offshore loans to help developers repay overseas debt. (RT)

• A group of investors led by Banca Mifel are in talks with banks for a potential $2 billion of financing for their bid to purchase Citigroup Inc.'s Mexican retails unit Banamex (BBG)

• JPMorgan and Morgan Stanley look to market $417 million worth of debt to fund 888's purchase of William Hill International (BBG)

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