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Bleak warning: ANZ picks two more Reserve Bank rate hikes ahead

Author

Maren Ishak
February 12, 2024

Good Morning,

Stock markets surged with the S&P 500 hitting a new high. European markets edged up despite interest rate concerns, while Japan hit 34-year highs on weak yen and earnings. Key deals included Fat Zebra's acquisition of Adatree and Woodside's merger talks extension. Fletcher Building shares slumped, Chorus cut fiber spending, and Australian builder St Hilliers went bust.

Let’s jump in!

Before The Bell

Markets

  • Major indexes rose with the S&P 500 hitting a new high of 5,000, but the advance was narrow with fewer stocks performing well (TRP)

  • European markets gained slightly (STOXX +0.19%), led by Italy (+1.43%) and France (+0.73%), but capped by concerns about prolonged high interest rates; UK fell (-0.56%) (TRP)

  • Japanese markets rose (Nikkei +2.0%, TOPIX +0.7%) to 34-year highs on weak yen and earnings, but gains capped by profit taking and Fed rate expectations (TRP)

Earnings & Data

  • Fletcher building shares hit post-Covid low on latest NZICC blowout (NBR)

  • Chorus cuts $200m off fibre capex proposal (NBR)

  • Australian building giant St Hilliers goes into voluntary administration (9 News)

  • So far, about 32,000 tech workers have lost their jobs in the United States in 2024, according to Layoffs.fyi, a start-up that has been tracking job cuts in the industry since the pandemic. (AFR)

  • Siemens Energy swung to profit in its first fiscal quarter on the back of a surge in orders and a one-off gain from selling a stake in its Indian affiliate to parent company Siemens. (CNBC)

  • Biotech Kyverna Therapeutics Tops IPO Goal to Raise $319 Million (BBG)

  • American Healthcare REIT Gains 10% After $672 Million IPO (BBG)

  • L’Oreal reported a 6.9 per cent rise in fourth quarter sales, slower growth than in the previous quarter, and said that sales came to 10.6 billion euros (US$11.4 billion). (RT)

  • Honda lifts annual profit outlook after strong Q3 (RT)

  • SoftBank Group posts $6.6 bln profit, first in five quarters (RT)

  • Credit Agricole's Q4 profit beats forecasts, hikes dividend (RT)

News Summary

Monday

  • KiwiSaver managers continue to dump ‘harmful’ investments (NBR)

  • Australian wine exports slump as global consumers drink less (9 News)

  • UK state pension age will soon need to rise to 71 (Guardian)

Tuesday

  • Multiple homes remain under threat as emergency services tackle a large scrub fire south of Waipara, with efforts expected to go on into the night. (Stuff)

  • Auckland-based plant-based beverage company Plant Projects has launched New Zealand’s first plant milk derived from pea isolate. (NBR)

  • Less than 18 months into his reign, King Charles III has been diagnosed with a form of cancer and has begun treatment, Buckingham Palace said Monday (Tuesday NZT). (Stuff)

Wednesday

  • Prime Minister Christopher Luxon has clearly ruled out his party supporting the Treaty Principles Bill beyond select committee. (Stuff)

  • Australia will introduce laws giving workers the right to ignore unreasonable calls and messages from their bosses outside of work hours without penalty, with potential fines for employers that breach the rule. (RT)

  • Microsoft Corp. Chief Executive Officer Satya Nadella urged countries to aggressively invest in artificial intelligence, making the case in India that his birth country has an unprecedented opportunity to drive economic growth by capitalizing on the technology’s promise. (BBG)

Thursday

  • Foodstuffs store facial recognition trial ‘will cut down on crime’ (Stuff)

  • Nvidia's stock market value on verge of overtaking Amazon (RT)

  • Oil climbs with global equities, Middle East in focus (AFR)

Friday

  • ANZ picks two more Reserve Bank rate hikes ahead, predicting a peak of 6 per cent (Herald)

  • Westpac says it will lower fixed housing rates across a range of terms from one year to five years (Herald)

  • Google releases Gemini, an AI-driven chatbot and voice assistant (Herald)

Weekend

  • ‘Madhouse’: Auckland man finds his rental property turned into weed farm (Stuff)

  • Being Satoshi: Inside Craig Wright’s decade-long fight to be the inventor of bitcoin (AFR)

  • Tesla temporarily slashes prices for some Model Y cars in the US (RT)

Deal Flow

Investments / M&A

Australia & New Zealand

  • Fat Zebra, which counts Macquarie and Zip among its 30,000 customers, acquires Adatree in bet on Data sharing (AFR)

  • Q+A time at Woodside energy and Santos merger; due diligence extended (AFR)

  • Buyout giants like KKR, EQT and General Atlantic, eye local dealmakers to bolster Australian portfolios (AFR)

  • The billionaire Forrest family has tipped another $31 million into its privately held Australian nickel business amid expectations it will burn cash and face an impairment (AFR)

  • Spirit Technologies, an ASX-listed provider of workplace tech solutions, has agreed terms to buy Sydney-based cybersecurity specialist InfoTrust (AFR)

  • Citywide Service Solutions, a government-owned provider of industrial services to public sector clients, has called in advisers to consider options for its waste business (AFR)

  • Trust Navis Capital to get cracking early in the year. Street Talk can reveal the pan-Asian buyout firm has kicked off a sale process for premium New Zealand egg and animal feed business, Mainland Poultry, which makes $NZ50 million ($46 million) in earnings (AFR)

  • Incitec Pivot’s painfully protracted talks to divest its fertiliser division to state-owned Indonesian group Pupuk Kaltim have rival suitors starting to mobilise (AFR)

  • Mineral Resources has called in the Wall Street giant to sell a 49 per cent stake in its dedicated 150-kilometre private haul road corridor, which connects the Onslow Iron project at Ken’s Bore mine to the Port of Ashburton on the west Pilbara coastline (AFR)

  • The Carlyle Group nibbles at Red Rooster-owner Craveable Brands (AFR)

  • Melbourne buyout firm Advent Partners has agreed terms to invest in cloud-based property management system RMS Cloud, marking its second acquisition for the year (AFR)

  • Tabcorp pulls the pin on its pursuit of $1b WA TAB deal (AFR)

Key Global

  • Tech company, Yandex NV, agrees $5.2 bln sale of Russian assets to investor Consortium (RT)

  • South Africa's entertainment company, MultiChoice, rejects Vivendi's Canal Plus buyout offer (RT)

  • Wall Street bank Citi has picked a new head of markets for its local business, after Mark Woodruff traded up to the CEO role last year (AFR)

  • Mondiale VGL ships out IPO plans; auction expected (AFR)

  • UBS head of real estate sales and veteran Tim Leahy has left the investment bank after twenty years, Street Talk understands (AFR)

  • Exclusive: SoftBank-backed Cohesity to buy Veritas data security unit, create $7 bln firm (RT)

Other Global

  • Ventura Bus sells to Singapore investment giant Keppel Infrastructure Trust for $600m (AFR)

  • Digital World Acquisition Corp, the blank-check firm set to launch Donald Trump's Truth Social, is close to finalising a US$50m financing deal through convertible notes, aiding its merger with Trump Media & Technology Group. An announcement expected soon (RT)

VC & Fundraising

  • WA prop-tech start-up RealtyAssist, found itself in need of an emergency cash injection over the Christmas break. According to documents lodged with the corporate regulator, the company spent 2023 loading up with short-term debt to support its growth and plug cash flow issues (AFR)

Equity Raises

Australia & New Zealand

  • Battery and base metals explorer Maverick Minerals, led by ex Breaker Resources CEO Sam Smith, launched its initial public offering bookbuild on Wednesday (AFR)

Key Global

  • Oman State Energy Firm, OQ SAOC, Asks Banks to Pitch for IPOs of Two Units (BBG)

Other Global

  • Biotech Kyverna Therapeutics Tops IPO Goal to Raise $319 Million (BBG)

  • American Healthcare REIT Gains 10% After $672 Million IPO (BBG)

  • Metals Acquisition Limited, owner of the CSA copper mine in Cobar NSW, upsized its initial public offering to A$325 million on Friday morning, after its brokers secured enough demand to cover the book at the top-end of the range (AFR)

Debt, Restructuring & Bankruptcy

  • Kenya will be able to repay a $2 billion international bond maturing in June, and the repayment should help the shilling recover from record lows, its central bank governor said on Wednesday (RT)

The Daily Deck is sponsored by Industrial Equity, LLC

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