The Option Trade that Broke the Bear's Back

October 07, 2022

Good Morning,

One giant options transaction sparked the S&P 500's bounce, Robertson says New Zealand can avoid recession, North Korea carries out sixth missile launch in two weeks, Sydney sees wettest year on record, Orion Marine continues fight to claim $6.8 million NZD in damages from rival Sealegs International, Chip startup may help Huawei circumvent US sanctions, Avalanche kills ten climbers on Himalayan peak, American Airlines headed to trial with Points Guy and I am convinced Erling Haaland is an alien.

Let's jump in.

Before The Bell

Markets

  • It was a volatile day globally as markets closed slightly lower. One trade sparked the rally S&P 500's bounce, according to Wells Fargo.

  • Oil rose to a three week high as OPEC+ agreed to cuts in production.

  • All eyes are on US Employment data released on the 7th of October.

News Summary

  • A bullish options trader may have sparked the S&P 500's bounce overnight (BBG)

  • Grant Robertson is confident that New Zealand can avoid a recession (BBG)

  • Putin signs annexation laws amid military setbacks (BBC)

  • Hong Kong to lure tourists with 500,000 air tickets (BBC)

  • Sydney sees wettest year on record (BBC)

  • North Korea carries out another missile launch (BBC)

  • Court hears that Sealegs patent defence an 'abuse of process' (NBR)

  • Jami-Lee Ross found not guilty on political donation charges (NBR)

  • Better Packaging Co gets ComCom warning over cartel activity (NBR)

  • RBNZ hawkish for further rate hikes (NBR)

  • UK gilts chaos hits Magellan as institutions scramble for cash (AFR)

  • NAB says house price falls will accelerate in 2023 (AFR)

  • Imports from China hit record $10.6 billion AUD in August (AFR)

  • Global bond funds see their biggest outflows in two decades (RT)

Deal Flow

Investments/ M&A

  • Blackstone in talks to buy Emerson's assets for $10 billion (USD) (BBG)

  • Mizuho in talks to buy 20% stake in Rakuten Securities (BBG)

  • Softbank weighing a sale of its stake in Spanish-language TV broadcaster TelevisaUnivision (BBG)

  • Credit Suisse explores sale of storied hotel Mandarin Oriental Savoy (BBG)

  • Elon Musk's deal to buy Twitter might be back on (RT)

VC & Fundraising

  • Body composition scanning business Evolt 360 has raised $12 million (AUD) through private funding (AFR)

Equity Raises

  • Battery maker CALB opens flat after $1.3 billion (USD) IPO (BBG)

  • KKR has agreed to fund cybersecurity firm NetSPI with $500 million (USD) (BBG)

  • Blood biotech Aegros has mapped out its $300m + (AUD) ASX IPO plan for the third quarter of next year. First, it will raise $30m across two funding rounds (AFR)

  • Seven Group is seeking to raise $250 million (AUD) through exchangeable notes (AFR)

  • Hydrogen firm Calvera seeks €150 million in initial listing (BBG)

  • De Grey Mining was chasing $130m (AUD) in a placement followed by an additional $20m (AUD) share purchase plan (AFR)

  • Pub landlord Harvest Hotels is seeking $42m (AUD) (AFR)

  • Allegiance Coal was seeking $33.6m at a 42% discount (AFR)

  • Graphite play Talga Group seeking interest in $20 million (AUD) share placement (AFR)

Debt Raises

  • Firstmac is seeking bond investors for a $1.76 billion (AUD) RMBS deal (AFR)

  • Non-financial lender Pepper Money has launched a $500m (AUD) residential mortgage-backed security (AFR)

  • Denison Gas has received $65m (AUD) in debt funding from Realside Financial (AFR)

  • Apollo & Sixth Street are no longer in talks to finance the Twitter deal (RT)

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