New Zealander's Spend Big to Begin 2023

Author

Jay Geris
February 11, 2023

Good Morning,

Free sandbags offered to Aucklanders ahead of Cyclone Gabrielle, US says China balloon could collect intelligence signals, Strong start to 2023 as NZ spending hits record, Nelson snack company Proper Crisps has been acquired by Griffin’s Foods, and Prisoners on the run after escaping from van on Auckland's southern motorway.

Let's jump in.

Before The Bell

Markets

  • Markets were a mixed bag on the day. The NZX 50 moved +0.5% higher to 12,178.76, the ASX 200 lost -0.8% to 7,433.70, the S&P 500 declined -0.9% and the Nasdaq declined -1.3%. All treasury bond yields increased

  • Stocks fell and bonds in Europe slid in the wake of a Treasuries selloff as the prospect of higher interest rates continued to mount on the back of the Federal Reserve’s battle against inflation (BBG)

  • The UK’s trade deficit with the European Union widened to a record in the final quarter of 2022 as imports from the bloc jumped (BBG)

  • Russia will cut oil production by 500,000 barrels per day, or around 5% of output, in March, Deputy Prime Minister Alexander Novak said on Friday, after the West slapped price caps on Russian oil and oil products (RT)

  • The United States is violating the principles of market economy and international trade rules in considering a ban on Chinese citizens buying property in the United States, the Chinese foreign ministry said on Friday (RT)

  • Adidas shares tank after it issues warning over unsold Yeezy stock (CNBC)

    Earnings and Data

    • Lyft shares cratered 29% in extended trading after a disappointing fiscal fourth-quarter report. The ride-hailing company reported losses of 74 cents per share. Lyft also anticipates making roughly $975 million in revenue in the fiscal first quarter of 2023, lower than the $1.09 billion analysts anticipated, according to StreetAccount (CNBC)

    •  Shares of PayPal fell 3% during after-hours following the company’s quarterly report. Revenue came in at $7.38 billion, compared to analysts’ estimate of $7.39 billion, according to Refinitiv. PayPal CEO Dan Shulman also announced that he would aim to step down at the end of 2023 (CNBC)

    • Shares of the restaurant reviewing website gained 10% after Yelp posted fourth-quarter revenue that beat analysts’ expectations. The company had revenue of $309 million, compared to analysts’ forecasts of $307 million, according to Refinitiv. Per-share earnings were 28 cents, arriving in line with estimates (CNBC)

    • Shares of the communications company added 1.8% after Motorola beat analysts’ expectations on the top and bottom lines, according to FactSet (CNBC)

    • Topgolf Callaway Brands - The golf company’s shares rose 4% after the company reported fourth-quarter revenue of $851.3 million. Analysts called for revenue of $840.4 million, according to FactSet (CNBC)

    • Cloudflare   - The cloud services provider’s shares added 11% in after-hours trading. Cloudflare posted quarterly earnings of six cents per share, excluding items, on revenue of $275 million. Analysts were calling for per-share earnings of five cents on revenue of $274 million (CNBC)

    News Summary

    • Three prisoners are on the run in Auckland after escaping from a prison van on the southern motorway (Stuff)

    • The Chinese balloon shot down by the US was equipped to detect and collect intelligence signals as part of a huge, military-linked aerial surveillance program that targeted more than 40 countries, the Biden administration declared (1 News)

    • Free sandbagging stations will be opened by Auckland Emergency Management (AEM) over the weekend as people across the North Island prepare for Cyclone Gabrielle (1 News)

    • Reserve Bank warnings of the need for New Zealanders to cut back on spending seem to have only made a fleeting impression, because retail card spending was up $171 million in January, according to Stats NZ (Stuff)

    • Nelson snack company Proper Crisps has been acquired by Griffin’s Foods (Stuff)

    • Australia’s central bank boosted its forecast for core inflation this year and is trying to ensure the economy avoids a wage-price spiral, underscoring the need for even higher interest rates (BBG)

    • Melbourne medical centre removes skin cancers without surgery (9 News)

    • Biden’s Wisconsin Launch Hints At 2024 Bid, Shores Up Key Groups (BBG)

    Deal Flow

    Investments / M&A

    • Dutch power operator TenneT Holding BV said it’s exploring a possible sale of its German business to Berlin, as the government seek ownership of the national grid to shore up energy security following Russia’s invasion of Ukraine (BBG)

    • CVC Capital Partners has emerged as the leading bidder to buy a minority stake in PT Samator Indo Gas, an Indonesian industrial gas company, people with knowledge of the matter said (BBG)

    • Medical device maker Globus Medical Inc. has agreed to buy smaller competitor NuVasive Inc. in an all-stock transaction valuing it at more than $3 billion USD (BBG)

    • Nelson snack company Proper Crisps has been acquired by Griffin’s Foods (Stuff)

    VC & Fundraising

    • Distressed Brazilian retailer Americanas SA got court approval for a debtor-in-possession financing plan of up to 2 billion reais ($379 million USD) through the sale of local bonds, with its biggest shareholders willing to fund up to half of it (BBG)

    • BlackRock Inc-led investors in Saudi Aramco's gas pipeline network are set to raise $4.5 billion from a sale of bonds to refinance a multi-billion dollar loan that backed their stake purchase, a bank document showed on Thursday (RT)

    Equity Raises

    • Solar power equipment maker Nextracker Inc. rose 27% in its trading debut after raising $638 million in the biggest US initial public offering of the year (BBG)

    • Berkshire Hathaway, the investment company owned by Warren Buffett, has sold 4.235 million Hong Kong-listed shares of electric vehicle maker BYD for HK$1.09 billion ($139 million USD), a stock exchange filing showed (RT)

    Daily Picks

    • Young singer helps sell family home (Stuff)

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