Attempted Energy Rescue in Full Force

September 07, 2022

Good Morning,

The Australian Reserve Bank lifted the cash rate, new UK PM Liz Truss plans to freeze household energy bills, Russia has blamed sanctions for the gas pipeline shutdown, VW to go ahead with Porsche IPO, North Korea is supplying Russia with arms, Instagram has been fined €405m, OPEC+ have agreed on a small oil production cut & Sweden and Finland have made liquidity guarantees to power companies.

Let's jump in.

Before The Bell

Markets

  • The Australian market dropped to a six-week low after the Reserve Bank of Australia increased the cash rate and told investors more raises were on the way. (AFR)

  • The US market was shut due to labour weekend.

  • Coal prices have continued their bull run, with Newcastle futures trading at a record high of $457.8 a ton ,more than double the price at the start of the year. (AFR)

  • Industrial metal prices have dropped, with the S&P GSCI index dropping over 9% since mid-August. (AFR)

News Summary

  • Greenhouse gas emissions fell during the lockdown in New Zealand. (RNZ)

  • The NZ Government has announced a $30m (NZD) package to make walking and cycling safer up and down the country. (RNZ)

  • The Australian Reserve Bank lifted the cash rate by 50 basis points to 2.35%, a 7-year high. (9 News)

  • The Australian government has promised cost of living relief in the next budget. (9 News)

  • New UK PM Liz Truss plans to freeze household energy bills for 18 months which could cost up to £130B. (BBG)

  • Liz Truss is also planning a further £40B support package to lower the cost of energy for UK businesses. (BBG)

  • UK construction has shrunk for the second time in a row. (RT)

  • UK satellite firm Bullitt will launch its satellite phone service next February. (BBC)

  • Russia has blamed sanctions for the gas pipeline shutdown. (BBC)

  • Sweden and Finland have made liquidity guarantees of up to $33B (USD) to power companies. (RT)

  • VW to go ahead with Porsche IPO. (BBG)

  • North Korea is supplying Russia with arms. (BBC)

  • Instagram has been fined €405m by Ireland for violating children's privacy. (BBC)

  • OPEC+ have agreed on a small oil production cut. (RT)

  • Ocean shipping rates have dropped 60% this year. (WSJ)

Deal Flow

Investments/ M&A

  • EQT, a US gas firm, is close to acquiring THQ Appalachia I and some Midstream assets in a deal worth ~$5.2B (USD). (BBG)

  • India's Reliance Industries will buy a 79.4% stake in California-based solar energy software developer SenseHawk in a deal worth $32m (USD). (RT)

  • Tourism Holdings and Apollo Tourism and Leisure have committed to selling 80% of their 4-6 berth motorhome rental fleet to Next Capital owned Juicy Rentals ahead of the proposed merger. (NBR)

  • The Todd Corporation has terminated its agreement with Flinders Mines and will no longer be part of the Pilbara iron ore project. (NBR)

  • WheyTech Bionics, a Wellington-based company, has partnered with MPI to develop technology that could create a diabetes remedy. (NBR)

  • Sitio, a US oil and gas mineral and royalty company, is in advanced talks to buy oil and gas rights company Brigham Minerals. (BBG)

  • ASX-listed Salt Lake Potash has locked in an overseas buyer, with the deal expected to be confirmed in the next 48 hours. (AFR)

  • Wiluna, a WA gold company, has started its sales process, with the first bids due by the 23rd of September. (AFR)

  • Two Bulls, a Melbourne-based digital agency, has been acquired by DEPT, who are a European giant in the space. (AFR)

VC & Fundraising

  • OIF Ventures, an Australian VC fund, has raised $140m (AUD) for its third fund. The raise was oversubscribed in 24 hours. (AFR)

  • AMSL Aero, an Australian flying vehicle startup, has raised $23m (AUD) in funding. The Investors were the St Baker Innovation Fund, IP Group Australia, TelstraSuper & Hostplus. (AFR)

Equity Raises

  • Realside, an Australian private market investor, is seeking $100m (AUD) to buy a stake in a Perth office tower. (AFR)

  • Moelis has run Pro-Pac's shortfall book build for 2.3M shares with bids starting at 30c (AUD). (AFR)

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