Oil Prices Plummet 📉

Author

Euan Marshall
June 10, 2023

Good Morning,

Oil prices fell nearly 5% on Friday, Australia is inching closer and closer to an economic turndown, the US has denied reports that China and Cuba cut a deal to develop a base to spy on the American Military, the eurozone officially dropped into a technical recession and Donald Trump faces a new legal challenge for retaining classified documents.

Let's jump in.

Before The Bell

Markets

  • Oil prices fell nearly 5% on Friday following news reports that the US and Iran were in talks on a temporary nuclear deal that would allow the Islamic Republic to export more oil (Stuff)

  • The eurozone dropped into a technical recession over the early part of this year, according to revised figures, amid high inflation and a cost-of-living crisis (NBR)

  • Fitch Ratings is now forecasting economic growth in New Zealand of 0.8% in 2023, down from a prediction of 1% in December of 2022 (Stuff)

  • The Australian sharemarket finished higher for the last trading session of the week, taking a positive lead from Wall Street overnight when the S&P 500 entered a bull market after rallying 20 per cent from its October low (AFR)

  • Australia’s risk of an economic turndown jumped to the highest level since the pandemic, a Bloomberg survey showed, with the Reserve Bank now expected to raise interest rates again to try to gain control over inflation (BBG)

  • China’s factory gate prices fell at the fastest pace in seven years in May and quicker than forecasts, as faltering demand weighed on a slowing manufacturing sector and cast a cloud over the fragile economic recovery (RT)

Earnings and Data

  • The eurozone contracted 0.1% in the March quarter, following a contraction in the final three months of 2022 (NBR)

News Summary

  • Auckland mayor Wayne Brown’s amended budget has been passed this afternoon, with councillors agreeing to a partial sale of council’s Auckland International Airport shares to pay down debt, and reaching a compromise on cuts to service, debt and rates (NBR)

  • As the cost of the large-scale asset purchasing programme continues to rise Treasury secretary Dr Caralee McLiesh now has authority to spend up to $400 million a month pay for the losses the Reserve Bank is incurring on the programme (NBR)

  • Hospitality business owners are preparing for a tough 12 months as skill shortages, supply chain issues and financial strain continue to put pressure on the industry (Stuff)

  • Former U.S President Donald Trump faces a new legal challenge - this time from the government he used to lead - with charges for illegally retaining classified documents and other crimes expected to be filed next week in federal court in Miami (RT)

  • Wildfires spread in the western Canadian province of British Columbia on Friday, while hundreds of fires continued to burn on the other side of the country in Quebec, sending wildfire smoke billowing across North American cities (RT)

  • Britain’s windfall tax on oil and gas producers will not be applied if prices drop below certain levels for six months in a row, the finance ministry said on Friday, in a move the government hopes will boost energy security (RT)

  • The White House pushed back on a report that the Chinese government cut a deal with Cuba to set up a spy base on the island that would target US military bases and communications (BBG)

  • UBS Group AG sealed an agreement with the Swiss government to cover 9 billion francs of losses it could incur from the rescue of Credit Suisse Group AG, clearing a major hurdle to closing the historic takeover (BBG)

  • China wants to restrict the use of mobile file-sharing services such as AirDrop and Bluetooth in a move that will expand its censorship machine (BBC)

Deal Flow

Investments / M&A

  • AstraZeneca said on Friday it had signed an agreement with Quell Therapeutics potentially worth more than $2 billion USD to develop cell therapies that could cure autoimmune diseases (RT)

  • The Telegraph group of newspapers could be sold after the Bank of Scotland appointed receivers for shares of the publisher’s owners who failed to repay loans by the bank (RT)

VC & Fundraising

  • Lab-grown meat producer Uncommon said on Friday it had raised $30 million USD from investors, including OpenAI chief executive Sam Altman (RT)

  • Cohere, an AI foundation model company that competes with Microsoft-backed OpenAI said it had raised $270 million USD in a funding round from investors including Nvidia, Oracle and Salesforce Ventures (RT)

  • Legal AI company EvenUp has raised an additional $50.5 million in Series B funding from new investors including Bessemer Venture Partners and Bain Capital Ventures, the San Francisco-based company said Thursday, valuing the company at $325 million (RT)

Daily Picks

  • Read about the Auckland stadium debate in this article by NBR, highlighting the two big contenders for an Eden Park upgrade

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - Apply here

Australia

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