NZ Housing Slump Ends 🏠

Author

Euan Marshall
July 15, 2023

Good Morning,

The Australian sharemarket extended its winning streak for the fourth day, economists have called an end to New Zealand’s housing slump, food price increases are still “worryingly high”, the Football Ferns have suffered a 1-0 defeat to Italy and an extreme heat wave is ripping through southern Europe.

Let's jump in.

Before The Bell

Markets

  • The Australian sharemarket extended its winning streak for the fourth day, as traders slashed their bets on the Reserve Bank raising the cash rate in August (AFR)

  • Flush with the hope that impressive disinflation will allow the Federal Reserve to end its rate-hike campaign this month, world markets now navigate a second-quarter corporate earnings season which the big U.S. banks kick off in earnest on Friday (RT)

  • Neuren Pharmaceuticals shares rose almost 20 per cent in early trade on Friday after the company said it had struck a new licensing agreement with a major distributor to sell its treatment for Rett syndrome overseas (AFR)

  • It’s been a week when almost everything rallied - from emerging markets to global bonds and the S&P 500 - all buoyed by faith that the Federal Reserve is finally winning the fight against inflation (BBG)

  • BlackRock Inc.’s assets under management rose to $9.4 trillion USD as the stock market rallied and investors poured money into ETFs and cash-management products (BBG)

  • Economists have called an end to New Zealand’s housing slump, saying latest data show the market has found a floor and prices are starting to recover (BBG)

Earnings and Data

  • USX-listed Syft Technologies has made a $13.4 million loss in the most recent financial year and has flagged that a “material order” in the first quarter of this year is likely to be reduced (NBR)

  • U.S. data showed consumer price inflation (CPI) rose 3% in June from a year earlier. That’s down from 4% inflation in May and was a touch lower than economists expected (Stuff)

  • Food price increases are still “worryingly high”, with prices increasing 12.5% annually from June 2022 to June 2023 (Stuff)

  • Electronic card spending lifted 0.8% in the June quarter, Stats NZ says (Stuff)

News Summary

  • A large housing development backed by the NZ Super Fund may be scuppered thanks to a surprise change of heart from the Auckland Council (NBR)

  • The Cabinet has agreed to keep a break-up of supermarket groups Countdown and Foodstuffs “in reserve” while it monitors the impact of its existing reforms of the grocery sector (Stuff)

  • For the first time in six decades, Hollywood writers and actors are on strike at the same time - a cataclysm for hundreds of thousands of film and TV workers already idled by the entertainment industry’s growing labor strife (BBG)

  • The People’s Bank of China hinted at more policy support for the economy, while also urging patience for the recovery to take hold (BBG)

  • Extreme heat is ripping through southern Europe and parts of Germany, with the next blast from the Sahara lifting temperatures toward record highs in parts of Italy this weekend (BBG)

  • India has just launched a rocket due to land a rover on the Moon in August (BBC)

  • A wealth tax proposed by the Government could have been expensive and complicated, for relatively limited benefit, tax experts say (Stuff)

  • The Football Ferns have suffered a 1-0 defeat to Italy in their final match before the FIFA Women’s World Cup (Stuff)

Deal Flow

Investments / M&A

  • Luxury tycoon Francois-Henri Pinault is in advanced discussions to buy a majority stake in Creative Artists Agency, according to people familiar with the matter. The talent agency, backed by private equity firm TPG, could fetch a valuation of at least $7 billion USD (BBG)

  • Microsoft Corp. and Activision Blizzard Inc. are considering giving up some control of their cloud-gaming business in the UK as a way to appease regulators so they can complete their $69 billion merger by the July 18 deadline (BBG)

VC & Fundraising

  • Ara Ake, New Zealand’s future energy centre, has secured an additional $70 million in funding from the Ministry of Business, Innovation and Employment to continue its mandate to help a shift towards a low-emissions economy (NBR)

Daily Picks

  • Listen to this podcast by Bloomberg to learn more about the effects of Canada’s carbon tax, labelled a “price on pollution”

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

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