Measles Make a Return

Author

Euan Marshall
February 14, 2023

Good Morning,

The death toll in Turkey and Syria from last Monday's earthquake has topped 33,000, the US military has taken down their fourth flying object in American airspace in the past 8 days, Patrick Mahomes shrugged off an ankle injury to lead the Kansas City Chiefs to a dramatic 38-35 win over the Philadelphia Eagles to claim their second Super Bowl in four years, and global bond investors' biggest fear on Japan cash is slowly coming true.

Let's jump in.

Before The Bell

Markets

  • Shares and equity futures in the US retreated as investors positioned themselves for an action-packed week, including the release of US consumer price data that may confirm the inflation battle isn't over, dashing hopes of a Federal Reserve rate pivot (BBG)

  • The S&P/ASX 200 dropped 15.9 points, or 0.2 per cent, to 7417.8 on Monday, dragged lower by the consumer discretionary sector (AFR)

  • Oil retreated as concerns about the scope for higher US interest rates hurt risk assets, offsetting some of the lift for crude that came from Russia's plan to curb supply in retaliation for western sanctions (BBG)

  • Australian financial markets have ramped up expectations the Reserve Bank will raise its cash rate at least three more times to above 4 per cent this year to combat inflation as some of the country's biggest retailers warn that consumer spending has started to slow (AFR)

  • January's US consumer price index report is set to test the "disinflation" optimism as angst around how much further the Federal Reserve must tighten simmers in fixed income markets. Consensus indicates headline US inflation will push 0.5 per cent higher in January, spurred on by higher energy prices (AFR)

Earnings and Data

  • Problems at a gas storage facility have forced Contact Energy to accept its long-term contract will cost more than it delivers in benefits, to the tune of $120 million NZD. The onerous contract provision drove Contact's results for the half-year to December to a loss of $7m, down from a profit of $134m in the same period a year earlier (NBR)

News Summary

  • A measles case has been confirmed in New Zealand for the first time since the 2019 outbreak (Stuff)

  • Transport agency Waka Kotahi is currently investigating whether autonomous shuttles could be added to the country's public transport network (NBR)

  • Rescuers pull more survivors from the rubble on Sunday, nearly a week after one of the worst earthquakes to hit Turkey and Syria, as Turkish authorities sought to maintain order across the disaster zone and began legal action over building collapses (RT)

  • The US military had never shot down an object in American airspace before taking out a Chinese balloon off the coast of South Carolina last week. They have now taken out their fourth foreign object in eight days, raising new questions (BBG)

  • Patrick Mahomes proved why he is the NFL's Most Valuable Player as he shrugged off an ankle injury to lead the Kansas City Chiefs to a dramatic 38-35 win over the Philadelphia Eagles on Sunday to claim their second Super Bowl in four years (RT)

  • Now that traders have an idea of who's likely to take the Bank of Japan hot seat, the focus will sharpen on the biggest worry of global bond investors - a wave of Japanese cash flowing out of international markets twoard rising yields at home (BBG)

Deal Flow

Investments / M&A

  • Newcrest Mining's taking the slow route to assessing its $24.4 billion AUD bid, delaying formal talks with institutional shareholders until after the company's first-half results on Thursday. The lack of formal shareholder engagement makes it hard to see Newcrest making any drastic decisions ahead of Thursday's result (AFR)

VC & Fundraising

  • Zeekr, the electric car brand of China's Geely Automobile Holdings, is raising $750 million from five new and existing investors in a funding round that values the brand at $13 billion (RT)

  • Janus Electric, which retrofits traditional diesel trucks to run on electric batteries, has tapped boutique Acton Advisory to drum up $75 million AUD in fresh funding from investors keen on energy transition plays (AFR)

Daily Picks

  • Keep up to date here with the latest from Stuff as Cyclone Gabrielle drills the North Island with heavy rain and winds

  • The US hasn't ruled out alien origins for the latest objects found in their airspace. Read more about it here

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