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The US national debt passing $35 trillion comes months after the $34 trillion mark was reached in January 2024

Author

Maren Ishak
August 05, 2024

Good Morning,

Global markets experienced a tumultuous week, marked by sharp declines. The Nasdaq plunged over 10%, while European indexes suffered significant losses amid concerns over weak US economic data. Japan’s Nikkei endured its worst day in decades due to a hawkish BoJ and broader market turmoil. Earnings reports were mixed, with tech giants delivering contrasting results.

Let’s jump in!

Before The Bell

Markets

  • Markets tumbled as earnings and economic data disappointed, with the Nasdaq falling over 10% from its peak (TRP)

  • European stocks tumbled, with the STOXX 600 down 2.92% due to weak US economic data. Germany's DAX plunged 4.11%, France's CAC 40 fell 3.54%, Italy's FTSE MIB lost 5.30%, and the UK's FTSE 100 declined 1.34% (TRP)

  • Japan's Nikkei plunged 4.7% and TOPIX fell 6.0% as the BoJ turned hawkish and weak US data fueled selling, with the Nikkei's final day drop among its biggest in history (TRP)

Earnings & Data

  • Comvita chair 'extremely disappointed' as results slide (NBR)

  • Cement ship repairs hit Fletcher profit outlook (NBR)

  • Nissan cuts output at top Japanese plant (RT)

    Chinese brands captured 11% of the European electric-car market in June, notching record registrations as manufacturers raced to beat stiff European Union tariffs that took effect early this month. (BBG)

  • Samsung Begins Closing Gap in Making AI Memory Chips for Nvidia. (BBG).

  • Vital Energy, Northern Oil and Gas buy Point Energy shale assets for $1.1 billion. (Reuters)

  • HSBC shares rise 3% after profit beat, $3 billion buyback announcement (CNBC)

  • Revenue for the quarter was 74.07 trillion Korean won, a 23.42% increase from a year earlier, while operating profit jumped 1,458.2%. (CNBC)

  • NYSE-parent ICE beats profit views, helped by boost in energy trading (RT)

  • The Warehouse Group fell nearly 15% after knocking back a takeover proposal (GR)

  • Intel shares fall 20% on plans to cut 15,000 jobs (Herald)

  • Telecommunications group Optus has incurred a $480 million annual net loss (AFR)

  • Chevron reports Q2 earnings miss on weak refining margins, sending its shares down 1.5% in premarket trading (RT)

  • DoorDash forecast third-quarter core profit above expectations and surpassed revenue estimates for the June quarter, shares up over 13% in extended trading (RT)

  • Snap forecasts weak revenue as big rivals threaten growth, shares slide 18% after-market (RT)

  • Hess shares fall most in 20 months on lengthy new delay to Chevron sale (RT)

  • ExxonMobil posted its second highest results for the second quarter in the past decade. (CNBC)

  • Nintendo profit falls 55% as sales of its ageing Switch console plunge (CNBC)

  • Coinbase Global Inc. posted a profit and revenue doubled as this year’s cryptocurrency recovery carried into the second quarter (BBG)New Plymouth legal tech firm liquidated owing $1.5m (Stuff)

News Summary

Monday

  • New Plymouth legal tech firm liquidated owing $1.5m (Stuff)

  • Dealmakers face tougher ‘public benefit’ test on mergers (AFR)

  • Japan and US upgrade military ties citing threat from China as ‘greatest strategic challenge’ (Guardian)

Tuesday

  • Police are confident they have found the remains of missing Christchurch real estate agent Yanfei Bao. (Herald)

  • Wind turbines and solar panels have overtaken fossil fuels to generate 30% of the European Union’s electricity in the first half of the year, a report has found. (Guardian).

  • McDonald’s executives acknowledged during an earnings call Monday that diners consider the company’s prices too high, and said they are taking a “forensic approach” to evaluating prices. (CNBC).

Wednesday

  • Kiwi Ainsley Thorpe has crashed! She came down in a group of about four riders by the looks. (Stuff)

  • Dozens of staff at the Singapore office of TikTok's parent company, ByteDance, have been hospitalised in an apparent food poisoning outbreak. (BBC)

  • Reborn Simone Biles leads way as USA reassert team gymnastics domination (Guardian)

Thursday

  • Microsoft services go offline for thousands around New Zealand (Stuff)

  • PwC clears itself of misleading ATO on FIRB application (AFR)

  • Gildan Spent $77 Million on Proxy Fight Over Who Should Be CEO (BBG)

Friday

  • SkyCity reveals dates of five day closure after breaching obligations (Stuff)

  • Man ordered to give up $600,000 he profited from illegal gambling, money laundering (Herald)

  • Google-parent Alphabet cut stake in Crowdstrike before July outage (RT)

Weekend

  • Luxon announces new maths curriculum for primary students (Stuff)

  • RBA to hold rates steady as inflation gets closer to target (AFR)

  • Buffett halves his Apple stake in $116b stock dump (AFR)

Deal Flow

Investments / M&A

Australia & New Zealand

  • Almost $2b of Fortescue shares hit the market in massive block trade (AFR)

  • Vital Energy, Northern Oil and Gas buy Point Energy sell assets for $1.1 billion (RT)

  • PEP bankers up for $1b-plus Guardian Childcare and Education (AFR)

  • Meet the secretive US billionaires bidding for Fletcher’s Tradelink (AFR)

  • The restructuring bigwig in line for the CFMEU gig (AFR)

  • Genesis Capital ups bid in private equity battle for Pacific Smiles (AFR)

  • Scentre, Barrenjoey pin down another Adelaide shopping mall bargain (AFR)

  • Brightstar Resources, Alto Metals agree to merge; kick off $20m raise (AFR)

  • Genesis remains defiant on blocking Crescent’s Pacific Smiles bid (AFR)

  • Houlihan Lokey set to be appointed at Rex, PAG tips in new capital (AFR)

  • Alceon PE secures 70pc stake in defence contractor Shadbolt (AFR)

  • Retailer Briscoe Group is thinking about the future of its investment in struggling outdoor goods business KMD Brands, the owner of Kathmandu, Oboz, and Rip Curl. This comes after KMD recently announced its second-half sales were down more than 8 percent from a year ago (RNZ)

Key Global

  • Irish merger and acquisition activity down 20% as uncertainty bites. (IT).

  • BHP, Lundin to Jointly Acquire Canada’s Filo for $2.96 Billion. (WSJ).

  • Brookfield Agrees to Buy NVent’s Cable Unit for $1.7 Billion (BBG)

  • Altice Sells Teads to Outbrain in $1 Billion Ad Tech Deal (BBG)

  • EU approves Hewlett Packard Enterprise's $14 bln Juniper deal (RT)

  • Anglo American has had its bankers courting would-be suitors in Indonesia the past week, ahead of first-round bids for its $US5 billion Australian portfolio. Sources said Anglo’s sell-side advisers at Morgan Stanley and Goldman Sachs were zipping around Jakarta, testing buyer appetite for the coal assets (AFR)

Other Global

  • AI Chipmaker Cerebras Systems Files Confidentially for US IPO (BBG)

  • Barclays announces $960 mln buyback, lifts outlook as investment bank shines (RT)

VC & Fundraising

  • Samsung Joins Funding for AI Security Startup Valued at $400 Million (BBG)

Equity Raises

Australia & New Zealand

  • Lark Distilling director inches up to 19.5pc in equity raising (AFR)

Key Global

  • Ola down round will worry India's IPO hopefuls (RT)

  • Ackman's Pershing Square fund sets $2 bln target for US IPO (RT)

Other Global

  • Ola Electric to raise $734 mln in India's biggest IPO this year. (Reuters)

  • 99 Speed Mart eyes Sept market debut as Malaysia's biggest IPO in 7 years, sources say. (Reuters)

Debt, Restructuring & Bankruptcy

  • The US national debt passing $35 trillion comes months after the $34 trillion mark was reached in January 2024. (Fox)

  • Standard Chartered Posts Lower Profit, Announces $1.5 Billion Share Buyback. (WSJ)

  • India's Vedanta gets secured creditors' nod for demerger (RT)

  • Britain's Ocado moves to extend its debt maturities (RT)

The Daily Deck is sponsored by Industrial Equity, LLC

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