Donald Trump found guilty

Good Morning,

Donald Trump becomes America’s first felon president, a former Auckland investment advisor under investigation by the FMA has left New Zealand, Ukraine and Russia announce major prisoner swap, TVNZ fails in bid to appeal Employment Court decision, Tesla to recall 125,227 vehicles over faulty seat belt warning system and Costco beat third-quarter revenue expectations.

Let's jump in.

Before The Bell

Markets

• The S&P/NZX 50 Index climbed steadily all day, surging 310.08 points or 2.68% and ending a run of five successive falls. (GR)

• Yen weakness persists despite Tokyo's $62 billion intervention (RT)

Earnings and Data

• Costco beat third-quarter revenue expectations of US $58.52 billion for the quarter ended May 12 (RT)

• Dell Technologies shares tumbled about 14% in premarket trading on Friday, as the PC and server maker expects sizeable AI investments to dent its quarterly profit (RT)

• Pfizer sees lung cancer drug topping $1 billion in sales following impressive 5-year data (RT)

News Summary

• NZ pension funds tighten property purse, as Australia widens gap (NBR)

• TVNZ fails in bid to appeal Employment Court decision (RNZ)

• Māori parliament workings discussed at Hui Ā Motu second phase (RNZ)

• A former Auckland investment advisor under investigation by the FMA has left New Zealand (RNZ)

• Regional bank branches get reprieve, will stay open for at least three more years (Herald)

• Police bust $15 million cannabis operation in Auckland (Stuff)

• Police staff cuts are in addition to over 200 vacant positions from recruitment freeze (Stuff)

• Turmoil erupts inside OpenAI over safety fears (AFR)

• Donald Trump becomes America’s first felon president (AFR)

• Snack maker Mondelez resumed its production of Oreo cookies in Ukraine (RT)

• Tesla to recall 125,227 vehicles over faulty seat belt warning system (RT)

• Ukraine and Russia announce major prisoner swap (RT)

• New Zealand plans to increase defence spending (BBG)

• Houthis say US and UK carried out deadliest strike yet on Yemen (BBG)

Deal Flow

Investments / M&A

• UBS reaches milestone in Credit Suisse absorption as parent companies merge. The merger concluded was facilitated by strong support from global regulators, said UBS, whose shares have jumped about two-thirds since it snapped up Credit Suisse for 3 billion Swiss francs (US $3.3 billion) (RT)

• Rio Tinto has bought out Sumitomo Chemical’s 20.64% interest in New Zealand Aluminium Smelters and is now its sole trader. No purchase price was disclosed, but the mining multinational was given confidence int he long viability of Tiwai Pt after its 20-year deal with NZ’s energy generator trifecta (NBR)

Debt

• Subway has sold US $3.35 billion of asset-backed bonds to help fund its buyout by Roark Capital Group, in what is the largest securitisation of its kind on record (BBG)

• WeWork Inc. won bankruptcy court approval to shed billions in debt, drop unprofitable leases from its office workspace portfolio. The restructured company will be worth between $665 million and $865 million when it leaves Chapter 11 (BBG)

• Supreme Court dismisses Satori Holdings' liquidation appeal (NBR)

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