Markets start with a bang 📈

January 09, 2023

Good Morning,

Apples are on track to hit $1B (NZD) in exports, Kevin McCarthy has been elected US House Speaker, US authorities are seeking to ban non-compete clauses, a US Trustee filed an objection to FTX's planned asset sale, China has opened its border with no quarantine required & McDonald's has warned staff to expect job cuts as they plan a huge restructure.

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Today will be a summary of the weekend's news and deals, and it will also show where the markets currently stand. We will return to the regular Monday weekly wrap-ups from next week.

Let's jump in.

Before The Bell

Markets

  • The Australian and New Zealand markets finished up for the week, starting the year strong

  • A Friday rally spurred by an encouraging jobs report helped Wall Street begin on a positive note for the year (TP)

  • US yields decreased on the news of a slowdown in the service sector (TP)

  • The pan-European STOXX Europe 600 index rose 4.6% in the week, whilst the UK FTSE 100 was up 3.3% as data indicated inflation had slowed in Europe (TP)

  • Wall Street ended its worst year for deal-making and fundraising since 2016 (BBG)

Earnings and Data

  • Coming up for the week

    • Monday: Building approval (AU), unemployment rate (EU)

    • Tuesday: Consumer credit (US), industrial production (France), Jefferies Financial Group, Commercial Metals Company

    • Wednesday: Inflation & retail sales (AU), J Powell speaks, Albertsons Companies

    • Thursday: Trade balances (AU), building consents (NZ), CPI & PPI (China), Infosys

    • Friday: CPI, unemployment claims & federal budget balance (US), trade balance (China), GDP (UK), Taiwan Semiconductor Manufacturing Company

    • Saturday: JP Morgan Chase, Bank of America, Wells Fargo, BlackRock, Citi, Delta Airlines

News Summary

  • Some Westpac customers in New Zealand may receive refunds because of a transaction processing error that put some accounts into overdraft (Stuff)

  • The RSE scheme is getting an upgrade in Hawkes Bay (NBR)

  • Apples in New Zealand are back on track to hit $1B (NZD) in exports (NBR)

  • Kevin McCarthy has been elected US House Speaker after 15 rounds of voting (BBC)

  • The US economy saw robust job growth in December but showed a sharp decline in wage growth (BBG)

  • US authorities are seeking to ban non-compete clauses (BBC)

  • Ana Montes, a top spy during the Cold War for Cuba, has been released after more than 20 years (BBC)

  • A US trustee filed an objection to FTX's planned asset sale (RT)

  • Young people are infecting themselves with COVID-19 in China (BBC)

  • China has opened its border with no quarantine required (BBC)

  • Ant Group founder Jack Ma will give up control

  • McDonald's has warned staff to expect job cuts as they plan a huge restructuring (BBC)

Deal Flow

Investments/ M&A

  • Cerberus Capital Management has dropped its pursuit of Apollo's Indian unit Arcion Revitalisation after previously agreeing to a deal worth $24m (USD) in October last year (BBG)

  • Adani Group is among the conglomerates that are potentially interested in a stake in Indian state-backed electricity trader PTC India (BBG)

  • Cathie Wood's Ark Fintech Innovation Fund sold 99% of its stake in Silvergate Capital, a cryptocurrency-focused bank (BBG)

  • Finance in Motion GmbH, a German ESG-focused asset manager, is exploring a sale (BBG)

  • First Abu Dhabi Bank PJSC revealed it explored a bid for Standard Charter, a multinational bank headquartered in the UK, but is no longer considering it (BBG)

VC & Fundraising

  • Doorstead, a property management startup in the US, has raised a $21.5m (USD) series B (TC)

Equity Raises

  • The Ivory Coast has raised $228m (USD) via listing part of its stake in the local unit of Orange SA, a telecommunications company, on the West African Stock Exchange (BBG)

Debt

  • Elliott Investment Management purchased significantly more than half of a $415m leveraged loan by McAfee Enterprise with a 12% coupon that paid American PE firm Symphony Technology Group a large dividend (BBG)

Daily Picks

  • Bond sales started the year off with a bang. Bloomberg wrote a good summary of what has happened. Check it out here

  • The AFR has predicted the top seven business trends for 2023. Check it out here

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