Big Bets and Dodgy AI 🤖

Author

Jay Geris
August 12, 2023

Good Morning,

NZ Food inflation slows - but prices still 9.6% higher than last year, Golfer Phil Mickelson allegedly wagered over USD$1b on sports, Hawaii fire death toll surges to 53, with more expected, Pak'nSave's AI meal planner suggests a recipe for deadly chlorine gas, Fonterra upgrades earnings outlook, signals strong final dividend payment, and Australia petrol prices hits 13-month high, adding to inflation pain.

Let's jump in.

Before The Bell

Markets

  • Markets were mixed over the past three days. The NZX 50 lost -0.3%, to 11,868.75, the ASX 200 increased +0.4% to 7,311.10, the S&P 500 dropped -1.1% to 4,518.44 and the Nasdaq decreased -1.8%. All treasury bond yields increased.

Earnings and Data

  • New figures reveal food inflation remains high as many Kiwis struggle with the cost of living (1 News)

  • Olam Group Ltd. said its first-half profit sank about 90% due to lower crop yield from its almond orchards, dealing a setback to the agricultural commodities trader that’s seeking to list its unit in Saudi Arabia (BBG)

  • Chinese tech giant Huawei on Friday reported 2.2% year-on-year growth in its consumer business revenue for the first half of the year (CNBC)

  • The US consumer price index rose 3.2% from a year ago in July, a sign that inflation has lost at least some of its grip on the U.S. economy (CNBC)

News Summary

  • First-time World Cup winner guaranteed as Sweden eliminate Japan (Herald)

  • Salma Paralluelo scored deep in extra time to give Spain a 2-1 win over the Netherlands in Wellington this afternoon and send the sixth-ranked nation into the semifinals of the Women's World Cup for the first time (1 News)

  • Phil Mickelson has wagered more than $1 billion (all amounts in USD) over the last three decades and wanted to place a $400,000 bet on the 2012 Ryder Cup while playing for Team USA, according to a much-anticipated book by renowned gambler Billy Walters (1 News)

  • A search of the wildfire devastation on the Hawaiian island of Maui today revealed a wasteland of obliterated neighbourhoods and landmarks charred beyond recognition, as the death toll rose to at least 53 and survivors told harrowing tales of narrow escapes with only the clothes on their backs (1 News)

  • Pak’nSave is promising to “keep fine-tuning” its AI meal planner after the chatbot generated a recipe for potentially deadly chlorine gas (Stuff)

  • Fonterra upgraded its earnings forecast for a fifth time, and signalled a strong full-year dividend, as it benefits from favourable ingredients margins (Stuff)

  • Gloriavale leaders claim they did not get a fair hearing in the Employment Court case that found women in the community are employees, not volunteers (Stuff)

  • Australians are paying more at the bowser as petrol prices hit their highest point in more than a year, heaping more inflation pain on consumers (AFR)

  • Vodafone’s record FibreX fine bumped up by NZD$1.45m (NBR)

  • Many workers across the U.S. are turning to ChatGPT to help with basic tasks, a Reuters/Ipsos poll found, despite fears that have led employers such as Microsoft and Google to curb its use (RT)

  • Tottenham Hotspur striker Harry Kane has agreed to move to German champions Bayern Munich after the two clubs reached a preliminary deal for his transfer (RT)

  • China lifted a ban on group tours to a slew of countries including the US, UK, Australia, South Korea and Japan, in a major test of demand for overseas travel from what was once the world’s biggest source of tourists (BBG)

Deal Flow

Investments / M&A

  • Berry Global Group Inc. is weighing options for its nonwoven fabrics business, including a possible sale that could fetch as much as USD$2 billion, people with knowledge of the matter said (BBG)

  • The collapse of the Dutch government is unlikely to derail plans for a partial sale of the state’s stake in ABN Amro Bank NV (BBG)

  • Cybersecurity company Check Point Software Technologies Ltd. signed a deal to acquire Perimeter 81 for USD$490 million in a cash-free, debt-free deal that is less than half of what the startup was valued at fourteen months ago (BBG)

  • Tapestry Inc., the owner of brands including Coach and Kate Spade, agreed to acquire Michael Kors parent Capri Holdings Ltd. in a USD$8.5 billion deal that shows the wave of consolidation in the luxury-goods sector is far from finished (BBG)

  • Wegovy maker Novo Nordisk A/S agreed to buy Inversago Pharma, a maker of experimental obesity and diabetes treatments, for as much as USD$1.08 billion (BBG)

  • Australia's InvoCare Ltd said on Wednesday it has agreed to a lower takeover offer from U.S. private-equity firm TPG Global, valuing the funeral service provider at A$1.8 billion (USD$1.18 billion) following exclusive due diligence (RT)

  • Britain's biggest sportswear retailer JD Sports Fashion said on Tuesday it will acquire the remaining 40% stake it does not own in Marketing Investment Group (MIG) from the Polish retailer's minority shareholders (RT)

VC & Fundraising

  • Hive AI, a software company that uses artificial intelligence to moderate digital content, is seeking to raise USD$200 million, according to people familiar with the matter (BBG)

  • Blackstone Inc. raised USD$7.1 billion for a fund to finance solar companies, electric car parts makers and technology to cut carbon emissions (BBG)

  • Neon is considering raising about USD$200 million in fresh capital as the immersive entertainment group looks to expand its business, according to people familiar with the matter (BBG)

  • Lulu Group International, which operates one of the Middle East’s largest hypermarket chains, is raising 10 billion dirhams (USD$2.72 billion) to refinance debt ahead of a potential initial public offering (BBG)

Equity Raises

  • Nido, the childcare business led by former Think Childcare boss Mathew Edwards, has its brokers rounding up cornerstone commitments for its initial public offering ahead of a wider book-build expected to kick off in coming weeks (AFR)

  • Esdec Solar Group is seeking an initial public offering in New York that would value the Blackstone Inc.-backed solar firm at more than USD$5 billion, according to people familiar with the matter (BBG)

Daily Picks

  • Annual Young Fruit Grower competition brings hope to Hawke's Bay (1 News)

  • The $2.3 billion corporate sponsorship hole in the FIFA Women's World Cup (Stuff)

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - Apply here

Australia

  • Citadel Securities graduate and intern roles - Apply here

  • Goldman Sachs Investment Banking Intern - Apply here

  • IMC graduate and intern roles - Apply here

  • Jarden

    • Graduate role - Apply here

    • Summer internships - Apply here

  • Macquarie graduate roles - Apply here

  • Optiver

    • Graduate role - Apply here

    • Internships - Apply here

The Daily Deck is sponsored by Industrial Equity, LLC

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