Donald Trump survives assassination attempt

Author

Maren Ishak
July 15, 2024

Good Morning,

Equity markets surged last week with the Russell 2000 leading the pack. This week investors will be watching S&P 500 and Nasdaq earnings reports closely. In other news, Treasury Department outlined potential costs of financial institution failures and Boeing is expected to plead guilty for the 737 Max crashes. Keep an eye out for articles on rising earnings expectations and how it might impact companies, and the ongoing Labour’s light rail project fiasco in Auckland.

Let’s jump in!

Before The Bell

Markets

  • US stocks surged last week, with the Russell 2000 jumping 6%, its best week since early November, while value stocks outperformed growth stocks (TRP)

  • The pan-European STOXX Europe 600 Index rose 1.45%, while major indexes like France's CAC 40 and Germany's DAX gained 0.63% and 1.48% respectively. Italy's FTSE MIB was the star performer, surging 1.74%. (TRP)

  • Chinese stocks rallied this week, fueled by strong export data. The Hang Seng in Hong Kong led the surge, climbing 2.77%. The mainland indexes, the Shanghai Composite and CSI 300, also gained 0.72% and 1.2% respectively. (TRP)

Earnings & Data

  • Treasury outlines likely costs of financial institution failures (GR)

  • Contact expects to generate earnings uplift to $770m (NBR)

  • 'Vast majority' of Synlait shareholders back proposal (NBR)

  • S&P 500, Nasdaq close at all-time highs ahead of inflation data and second-quarter earnings reports. (CNBC).

  • Rising Earnings Expectations Could Make It Harder for Companies To Wow Investors. (Investopedia).

  • PepsiCo quarterly revenue misses estimates as demand slows for snacks, sodas (RT)

  • Delta earnings forecast falls short of Wall Street estimates, shares down 10% (RT)

News Summary

Monday

  • Tainui Group sparks Ruakura Energy subsidiary (NBR)

  • Melbourne Airport to 'compromise' on above-ground train station proposal (9 News)

  • Boeing will plead guilty to criminal fraud over 737 Max crashes (Guardian)

Tuesday

  • More than 200 consultants and companies clipped the ticket on Labour’s failed light rail project in Auckland, according to details released under the Official Information Act. (Herald).

  • All forecasts are for the Reserve Bank (RBNZ) to hold the OCR at 5.5% tomorrow. (1 News).

  • Trump doesn’t expect Biden to drop out of 2024 race, says president looked ‘extremely pale’ at debate. (NCA).

Wednesday

  • The mass exodus of New Zealanders is likely to continue until interest rates drop, a recruiter says. (RNZ)

  • Wellington primary school's Taylor Swift raffle nets more than $100,000k (RNZ)

  • Blackpink star Jennie has apologised after a video that showed her vaping indoors sparked a huge outcry in South Korea. (BBC)

Thursday

  • Costco Hikes Annual Membership Fee for First Time Since 2017 (BBG)

  • Sequoia, Nvidia Back Startup Fireworks AI at $552 Million Valuation (BBG)

  • NATO accuses China of fuelling Putin’s war in Ukraine (AFR)

Friday

  • NZ extends support for US strikes against Houthis in Red Sea (RNZ)

  • NZME says it is compliant after share price jump (Herald)

  • Biden mixes Harris with Trump, insists he is staying in the presidential race (RT)

Weekend

  • How Scott Robertson graded himself after his first series as All Blacks coach (Stuff)

  • ASX to hit 8000 as markets bank on Federal Reserve to cut rates (AFR)

  • Trump rally shooting could upend poll race (AFR)

Deal Flow

Investments / M&A

Australia & New Zealand

  • Hedge fund takes Barrenjoey to task over Chemist Warehouse merger (AFR)

  • RBC hitches a ride on NSW’s toll roads shake-up (AFR)

  • AustralianSuper, Gold Coast Council fly into Queensland Airports sale (AFR)

  • UK Is Hotbed for Europe M&A With Currys, Deliveroo Among Targets (BBG)

Key Global

  • Carlsberg to buy Britvic for $4.2 billion (RT)

  • Paramount to continue job cuts until Skydance deal closes (RT)

Other Global

  • Quinbrook lights up auction for energy portfolio (AFR)

  • Canada Move to Limit Mining M&A Hurts Big Metals Producers, Scotia Says. (BBG)

  • David Ellison says Paramount will become a ‘media and tech’ company. (FT)

  • Incitec Pivot’s inability to separate its fertiliser and explosives companies would be laughable if it wasn’t for the company’s 47,215 shareholders. (AFR)

  • Fluent Commerce, an order management software business spun out of Parcelpoint 11 years ago, would like to snag a private equity or strategic suitor from the United States. (AFR)

  • It’s been a rollercoaster ride for investors in ASX-listed software company Bigtincan – and one that has some spewing over the side. (AFR)

VC & Fundraising

  • Seed VCs are turning to new ‘pro rata’ funds that help them compete with the big firms (TC)

  • Ex-Morgan Stanley Banker’s Fund Raises $3.4 Billion, Beating Asia Rivals (BBG)

Equity Raises

Australia & New Zealand

  • Embattled dairy company Synlait Milk has got the backing of its minority shareholders for a loan of $130m from its Chinese major shareholder Bright Dairy (RNZ)

Other Global

  • Barrenjoey seeks $182m for Orora activist push (AFR)

  • The IPO of New Delhi-based Bansal Wire was open for bidding between July 03 and July 05, which offered its shares in the fixed price band of Rs 243-256 per share with a lot size of 58 shares. (BT)

  • Hyundai Motor India IPO: The IPO may unlock value for Indian investors, despite trading at a discount globally due to non-core interests, prompting the need for shareholder-friendly policies. (LM)

  • Retail investors are expected to keep piling into initial public offerings in India this year, as hefty gains for new stocks outpace the broader market and listings abroad. (BBG)

Debt, Restructuring & Bankruptcy

  • Private credit jumps $45b in five years and is threatening banks (AFR)

  • Kyiv shouldn’t have to fight ‘shameless bondholders’ as repayment deadline nears, say campaigners. (Guardian)

  • When Italy’s government extended guarantees on state-backed loans during and after the pandemic, little thought was given to potential delinquencies. Now that’s coming back to bite. (BBG)

  • 'I had to downgrade my life' - US workers in debt to buy groceries. (BBC)

The Daily Deck is sponsored by Industrial Equity, LLC

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