Australian Interest Rates Continue Upwards 📈

Good Morning,

Pushpay shares fell 10% following a failed takeover, New Zealand capital markets 'pivot' to long-term slowdown expectation, a fire in a Bangladesh refugee camp has left 12,000 people without shelter, lawmakers step up push to ban TikTok in the United States and the Reserve Bank of Australia is set to raise interest rates for a 10th straight meeting today.

Let's jump in.

Before The Bell

Markets

• Shares in dual-listed church payment and management software company Pushpay have dropped 12 cents today after shareholders formally blocked a $1.539 billion takeover offer last week (NBR)

• Hopes of a systemic slowdown in the rate of inflation went unfulfilled throughout February, meaning capital markets are again "pivoting" to expect a longer economic down cycle (NBR)

• Close to half of all businesses believe a recession looms in Australia with entrenched pessimism weighing heavily on small business owners and companies in the troubled manufacturing and construction industries (AFR)

• Global stock markets paused on Monday after last week's rally, as investors waited to see if US Treasury yields would extend their declines off recent highs and assessed the potential impact of China's modest new economic growth target (BBG)

• China, the world's second biggest oil consumer is snapping up crude after reversing its Covid-19 policies. Against a backdrop of tight supply, the demand boost has everyone from Goldman Sachs Group Inc. to trading powerhouse Vitol Group predicting a rally to $100 USD per barrel later this year (BBG)

Earnings and Data

• Apple's biggest supplier Foxconn says its revenue last month fell by 11.65% compared to the same period in 2022 due to weaker demand for electronics (BBC)

News Summary

• Bangladesh authorities are investigating the cause of a massive fire in a Rohingya refugee camp which has left 12,000 people without shelter (BBC)

• US Senate Intelligence Committee Chairman Mark Warner plans to introduce a bill this week to allow the US to systematically ban Chinese technology, including services like TikTok, he told Fox News on Sunday (BBG)

• The Central Bank of Australia is set to raise interest rates for a 10th straight meeting on Tuesday, with policy makers facing a complex messaging task for an outlook of slower economic growth and still-elevated inflation (BBG)

• Starbucks Corp. is investing $36 million USD to open and renovate coffee shops in the UK, pushing on with expansion in a market where profit has dropped due to soaring costs of coffee beans and labour (BBG)

• Low income and younger households are expected to bear the brunt of the Reserve Bank of Australia's expected 10th straight interest rate rise this week, and they will be forced to slash spending as their disposable income shrinks (AFR)

• Tesla has cut prices on its two most expensive electric vehicles in the United States, according to the company's website, days after Chief Executive Elon Musk said recent price cuts on other models had stoked demand (RT)

• Harris Associates, one of Credit Suisse's major shareholders, has sold its entire stake in the Swiss bank (RT)

• A suicide bomber rammed a motorcycle into a police truck in southwestern Pakistan on Monday, killing nine policemen (RT)

Deal Flow

Investments / M&A

• A $10 billion AUD merger of equals between Australia's largest regional lenders, Bendigo and Adelaide Bank and Bank of Queensland, would be "too complex and value destructive" say Citi analysts who previously advocated a tie-up (AFR)

• A private equity firm is seeking to raid a 10 per cent stake in ASX-listed funerals business InvoCare on Monday night, ahead a potential takeover offer (AFR)

• Telecom Italia SpA's long-discussed plan to cut a $21 billion USD debt pile by selling off its most lucrative asset, the landline network, suddenly looks feasible, with two multi-billion-euro offers now on the table (AFR)

VC & Fundraising

• ASX-listed Quebec lithium developer Sayona Mining is talking to Canadian investors to stitch up a capital raising, as it heads towards production and right after an investor presentation in the US (AFR)

Equity Raises

• Arm Ltd, the British chip designer owned by Japan's SoftBank Group Corp is likely to aim to raise at least $8 billion USD from what is expected to be a blockbuster U.S. stock market launch this year (RT)

• Bravura Solutions will issue new shares at $0.40 each to help fund a big cost cuts program and buy some time for new CEO Libby Roy to execute a turnaround plan. The deal will see Bravura raise $80 million AUD via a one-for-1.73 entitlement offer and an institutional placement (AFR)

Daily Picks

• Check out these results from the latest MLIV Pulse survey on the outlook of investors for the remainder of 2023

• Have a look at this article highlighting Anew, a bottled water company with a new way of tackling a world of water bottle waste

Job Board

New Zealand

• Murray & Co Investment Banking Intern and Grad Roles

  • Apply here for internships

  • Apply here for graduate roles

Australia

• Goldman Sachs Investment Banking Intern

  • Apply here by 18th July for Melbourne and Perth and August 1 for Sydney

• Macquarie gradate roles

  • Apply here

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