Monday Blitz

October 11, 2022

Good Morning,

Jacinda Arden announced that additional trade sanctions on Russia would be released later this week, Australia is facing problems with almost $70B (AUD) worth of defence projects, retail electric prices in Australia could soar 35% in 2023, the Bank of England has doubled the maximum size of its bond buy-backs, Ukraine has faced a bombardment of missile strikes & India is facing a pandemic of antibiotic-resistant superbugs.

Let's jump in.

Before The Bell

Markets

  • The NZX and ASX fell to start the week after the sell-off on Wall Street on Friday spilt over. (AFR)

  • The Australian dollar hit its lowest level in 2 and a half years against the USD. (AFR)

  • Investors expect US stocks to face a brutal earnings season that will see stocks fall further. (BBG)

Earnings

  • What are we watching this week:

    • Wednesday: PepsiCo

    • Thursday: Delta Air Lines, BlackRock, Taiwan Semiconductor 

    • Friday: JPMorgan Chase, Wells Fargo, Morgan Stanley, Citigroup

News Summary

  • Patient information stolen from a cyberattack on Pinnacle Health is believed to have been uploaded onto the internet. (Stuff)

  • Jacinda Arden announced that additional trade sanctions on Russia would be released later this week. (Stuff)

  • Grocery suppliers to supermarkets in New Zealand have seen costs rise 9.2% YOY in September. (Stuff)

  • New Auckland mayor Wayne Brown has said Auckland is sailing into an economic storm. (Stuff)

  • Consumer spending increased by 3.1% in September, based on data from Kiwibank. (Herald)

  • Australia is facing problems with almost $70B (AUD) worth of defence projects. (9 News)

  • Retail electric prices in Australia could soar 35% in 2023. (AFR)

  • UK Chancellor Kwasi Kwarteng will announce his debt plan on the 31st of October. (BBC)

  • The Bank of England has doubled the maximum size of its bond buy-backs. (RT)

  • Ukraine has faced a bombardment of missile strikes, including in Kyiv, after Putin blames them for the Crimea bridge blast. (BBG)

  • Russian bank Gazprombank has decided it will discontinue its Swiss operations. (RT)

  • The US is facing higher grocery prices as a drought in California has withered crops. (RT)

  • Elon Musk has said Taiwan should become a special administrative zone of China. (BBC)

  • India is facing a pandemic of antibiotic-resistant superbugs. (BBC)

  • North Korea has said its recent missile launches were a nuclear attack simulation. (BBC)

  • The Nobel prize for economics has gone to Bernanke, Diamond and Dybvig for research on banks and the financial crisis. (RT)

Deal Flow

Investments/ M&A

  • BGH Capital, an Australian PE firm, has resurrected talks to purchase church giving and donations business Pushpay Holdings with a new bid which is believed to value Pushpay at well above $1.2B (AUD). (AFR)

  • Indian-based multinational conglomerate Adani Group is in talks to buy debt-ladened conglomerate Jaiprakash Associates' cement business for $606m (USD). (RT)

  • British supermarket group Morrisons' $210m (USD) deal to acquire UK convenience retailer McColl looks set to be approved by the competition regulator. (RT)

  • PSG's Qatari Owner Qatar Sports Investments is buying a 22% stake in Portuguese football club, SC Braga, in a deal which values the club at $88m (USD). (BBG)

  • Zimbabwean mining company RioZim has bought Sperrgebiet Diamond Mine, which is located in Namibia, for $58m (USD). (BBG)

  • Australian gambling company Tabcorp has acquired a 20% stake in social media player Dabble for $33m (AUD). (AFR)

  • Healthcare provider Burjeel has soared 20% on its trading debut. (BBG)

  • Warburg Pincus, a US PE firm, is set to acquire a majority stake in Indian small business lender Vistaar Finance. (RT)

  • PE firm Pemba Capital is thinking about selling out of steel reinforcement company Ausreo. (AFR)

  • Perpetual Limited, an Australian investment fund and trustee group are in the top-10 shorted stocks on the ASX ahead of its scrip-heavy deal to acquire rival Pendal. (AFR)

  • French carmaker Renault is open to reducing its stake in Nissan as they continue split talks around Renault's EV and combustion assets. (BBG)

  • Edmond de Rothschild Heritage Wines, a French wine producer, has purchased the central Otago vineyard Akarua Estate. (Stuff)

  • Sky TV has sold RugbyPass to World Rugby in a deal which sees them secure the rights to premium competitions from 2023 to 2029. (Stuff)

VC & Fundraising

  • India's Gautam Adani is in talks with Singapore's sovereign wealth fund GIC Pte and Temasek Holdings to raise $10B (USD) to fund the group's expansion into clean energy and ports. (BBG)

  • Sequoia-Backed LingoAce, a Singapore-based language learning startup, is seeking $200m (USD) at a $1B (USD) valuation. (BBG)

  • 8090, a VC firm founded by 27-year-old Jasper Lau, is raising money from the world's Mega-Rich families. (BBG)

Equity Raises

  • GME Resources, a WA nickel and cobalt exploration and development company, is seeking $3m (AUD) via a share placement at a 17.4% discount. (AFR)

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