Fonterra Plans to Cut $1 Billion in Costs by 2030 💰

Good Morning,

Shelly Bay development canned as Sir Peter Jackson buys land, Location of lost flight MH370 may have been found, Fonterra tells 'under pressure' farmers of plan to slash NZD$1 billion of costs, Government enforcing fair conditions for supermarket suppliers, Fiji Deputy PM calls on NZ Government for visa-free travel to improve trade relations, China Cuts Down Payment, Mortgage Rates in Stimulus Drive.

Let's jump in.

Before The Bell

Markets

• Markets were mostly down over the past two days. The NZX 50 gained +0.1%, to 11,521.12, the ASX 200 decreased -0.3% to 7,297.70, the S&P 500 increased +0.2% to 4,497.63 and the Nasdaq grew +0.7%. All treasury bond yields decreased.

Earnings and Data

• Australia Post has posted a significant AUD$200 million loss in its full-year results as the company flags turbulent times ahead for the company's financial sustainability (9 News)

• Supermarket giants Coles and Woolworths recorded profits in excess of AUD$1 billion with a nearly 5 per cent increase on the previous year (9 News)

News Summary

• Aviation experts believe research may have uncovered the final resting place of flight MH370, which disappeared in 2014 (1 News)

• A NZD$500 million dollar development at Wellington’s Shelly Bay has been pulled, with the land purchased by Sir Peter Jackson and his wife and business partner Fran Walsh (1 News)

• Fonterra chief executive Miles Hurrell has written to farmer-shareholders to outline a plan to cut NZD$1 billion of costs from the dairy cooperative over the next seven years (Stuff)

• Supermarkets will face big fines if they do not treat small suppliers fairly, the Government has announced. The Government’s new Grocery Code of Conduct will come into force on September 28 and will prohibit abuse of power by supermarkets over suppliers (Stuff)

• National plans to make building more affordable by cutting red tape and letting more overseas products in, but that won’t be as easy as it sounds, an industry advocate says (Stuff)

• A government review has found the commuter rail benefits from Auckland’s NZD$5 billion City Rail Link (CRL) project are at risk due to underfunding of the rail network, KiwiRail’s expertise, and difficult relationships between key players (Stuff)

• Fiji’s Deputy Prime Minister Biman Prasad says a visa-free travel agreement between his country and New Zealand would help both economies which are “underperforming” in trade relations (Herald)

• HSBC will sell its New Zealand mortgage portfolio to an NZ subsidiary of the Australian securities exchange-listed Pepper Money (Herald)

• Inflation in Australia has slowed to its lowest level in a year and a half, easing concerns of another interest rate rise next week. The Australian Bureau of Statistics (ABS) on Wednesday revealed the consumer price index (CPI) rose by 4.9 per cent over the last year – the lowest the measure has been at since the same figure was recorded in February 2022 (9 News)

• Hong Kong Poised to Be Slammed by Biggest Typhoon Since 2018 (BBG)

• Tesla Inc. revamped the Model 3 sedan with sleeker looks and longer range while slashing prices of its premium vehicles in an all-out push to boost sales (BBG)

• China moved to allow its largest cities to cut down payments for homebuyers and encouraged lenders to lower rates on existing mortgages in its latest attempt to halt a slide in the country’s residential property market (BBG)

• A Ukrainian drone attacked a town in western Russia which is home to one of the country's biggest nuclear power stations, though there was no damage reported to the plant, Russian officials said (RT)

• U.S. job growth likely slowed in August, partly reflecting striking Hollywood actors and the bankruptcy of a major trucking company, but the unemployment rate probably held at more than 50-year lows as labour market conditions remain tight (RT)

Deal Flow

Investments / M&A

• Shell said on Friday it would sell its home energy business in the UK and Germany to British energy supplier Octopus Energy Group as part of a deal in which the two companies explore a partnership on EV charging (RT)

• Australia's Santos Ltd on Friday finalised the initial sale of a 2.6% stake in its PNG liquefied natural gas (LNG) project to Papua New Guinea state-owned Kumul Petroleum for USD$736 million (RT)

• Lavoie, the electric scooter unit of Formula One engineering and technology firm McLaren Applied, said on Thursday it has agreed to buy bankrupt premium Dutch e-bike maker VanMoof and will invest to stabilise and expand its business (RT)

• Abu Dhabi-based healthcare network Pure Health has signed an agreement to buy one of the United Kingdom’s largest independent hospital operators from Centene Corp. for an enterprise value of about USD$1.2 billion (BBG)

• Next Plc has strengthened its control of UK fashion house Reiss, buying a 34% holding from US investment firm Warburg Pincus for £128 million (USD$162 million) (BBG)

Equity Raises

• Arm Holdings Ltd plans to launch its roadshow for investors after Labor Day, as the chip designer prepares for its much-anticipated initial public offering (IPO) in September (RT)

• Maynilad Water Services Inc. is considering an initial public offering in Manila that could raise USD$750 million to USD$1 billion (BBG)

Daily Picks

• A 98-year-old man has been charged in Germany with being an accessory to murder as a guard at the Nazis’ Sachsenhausen concentration camp between 1943 and 1945 (Stuff)

Job Board

New Zealand

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Australia

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