Don't Lose the Mitts, Inflation is Still Hot

September 15, 2022

Good Morning,

Higher than expected inflation spooks investors, Twitter shareholders approve Elon Musk takeover deal, Putin and Xi to meet in Uzbekistan, New Zealand hosts Five Eyes gathering, NZ-based company solarZero sold to BlackRock, Fed faces tough decision at next meeting, Scott Barrett starts at blindside In Bledisloe 1 and Joël Matip rescues Liverpool in the Champions League.

Let's jump in.

Before The Bell

Markets

  • Global markets heavily sold off after US CPI came in hotter than expected.

  • Bond yields were up as investors expected that the Federal Reserve could raise rates by as much as 100 basis points.

  • Bitcoin tumbled below 22,000 as the cryptocurrency faces questions over its appeal as a 'store of value'.

News Summary

  • US CPI climbed 0.6% from July, doubling the median estimates. (BBG)

  • Twitter shareholders approve Elon Musk takeover deal as Musk tries to pull out. (BBC)

  • US emergency oil reserves are at their lowest level since 1984. (RT)

  • Biden officials are considering buying oil at around $80 (USD) to refill reserves. (BBG)

  • Vladimir Putin and Xi Jinping to meet to discuss Ukraine and other security matters. (BBC)

  • Ukraine targets the east of the country after a rapid counter-offensive. (BBC)

  • Canada's PM Justin Trudeau announced a $3.43B (USD) inflation relief package. (RT)

  • The US Department of State claims Russia spent $300 million (USD) to meddle abroad. (BBC)

  • Bangladesh moves towards a floating rate as the Taka drops 11%. (BBG)

  • JPMorgan's advisory revenue was down 50%, and overall revenue was down 45%-50% in Q3. (CNBC)

  • Five Eyes officials gather in Queenstown for a clandestine meeting. (Herald)

  • Ratings agency S&P says New Zealand managed the pandemic better than most countries. (Herald)

  • Douglas Pharmaceuticals opened a new facility in West Auckland to support growth. (NBR)

  • NZ Super Fund tweaks portfolio to cut exposure to carbon. (NBR)

  • Emissions ratings to hit real estate values, Australian banks warn. (AFR)

  • Pressure mounts on RBA after US inflation shock. (AFR)

  • China pumps another billion dollars into Australian iron ore. (AFR)

  • Experts are split on how the Federal Reserve should approach the next Fed meeting. (BBG)

  • Hedge Funds' decade-long wait for the Yuan crash nears payday. (BBG)

Deal Flow

Investments/ M&A

  • Deltastream Energy sells itself to Tamarack Energy for $1.43 billion (CAD) in a $1.4 billion (CAD) return for investors. (BBG)

  • Germany sold its entire stake in Lufthansa at $760 million profit via a placement with international investors. (BBG)

  • Auto parts supplier Aptiv to acquire an 85% stake of Italy's Intercable unit that manufactures high voltage busbars. (RT)

  • PE firm PAG to acquire pie makers Pattie Foods and Lean Cuisine's owner Vesco Foods in a $550 million (AUD) two-headed deal. (AFR)

  • Tamboran Resources is looking to buy into Origin Energy's Beetaloo Basin in a deal worth ~$150m (AUD). (AFR)

  • Abu Dhabi Sovereign Wealth Fund divests 8.6% of Abu Dhabi National Energy to several investors. (BBG)

  • Japanese bank Shinsei has increased its stake in Latitude Financial Services from 9.95% to 12.85%. (AFR)

  • Deloitte merges with Francis Healthcare to bolster its health offering. (NBR)

  • Global investment powerhouse BlackRock Real Assets buys NZ-based company solarZero. (NBR)

  • Citizens Financial Group agreed to buy College Raptor, a firm that helps connect students with colleges. (BBG)

VC & Fundraising

  • TeraWatt Infrastructure, a company that builds EV charging infrastructure for fleets, has raised a $1B (USD) series A round. (TC)

  • VC firm Northzone has raised a $1B (USD) fund for fintech and Web3 investments. (CD)

  • Dubai meta-verse rim MetaFi secures $3 million (USD) from industry heavyweights (BW)

  • Sutton Motors was revealed as the party that paid a 25% premium to buy Quadrant's stake in Automotive Holdings. (AFR)

Equity Raises

  • Atlas Arteria to launch a $3.15 billion (AUD) rights issue at $6.30 (AUD) per share. (AFR)

  • Tamboran Resources will launch a $150m (AUD) equity raise if they decide to proceed with the rumoured acquisition into the Beetaloo Basin. (AFR)

  • Respiratory devices business Adherium will raise $13.5 million (AUD) at a 37.5% discount. (AFR)

  • Honda is considering listing its electrical motorcycle business. (RT)

Debt Raises

  • NZ Government launches green bond programme (NBR)

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