New Zealand House Prices Tank

November 16, 2022

Good Morning,

New Zealand house prices have fallen by their largest amount since REINZ records began, the New Zealand Labour party revealed their proposed changes to the Resource Management Act, details of almost 1,000 employees have also been implicated in Medibank's data breach, US president Joe Biden has said there will not be a new Cold War with China, Binance has called for new industry regulation at the G20 summit & UK economic data has shown a record wage growth and increased unemployment.

Also we know have over 8 billion people living on the plant.

Let's jump in.

Before The Bell

Markets

  • US markets finished down after a burst of late selling. (AFR)

  • Morgan Stanley has warned the Australian share market will be challenged in the next few months due to delayed transmission of the RBA's rate rises on companies' profits. (AFR)

  • The London Stock Exchange has lost its position to Euronext Paris as the most valuable European stock market. (BBC)

  • Empower has risen 2.3% on its Dubai trading debut. (BBG)

Earnings and Data

  • Infratil announced revenue growth of over $300m but reduced full-year net profit guidance to $510m to $540m (NZD). Its share price was up 0.2%. (NBR)

  • Japanese GDP has unexpectedly decreased by 1.2% annualised in the three months to the end of September. (BBC)

  • Sanford announced net profits of $55.8m (NZD), up on $16.2m (NZD), revenue growth of 8.6% and that they would restart dividends with a 10c dividend. Its share price was flat. (Stuff)

  • T&G Global has announced it is forecasting a net loss between $1m to $5m (NZD) for FY22 following an unprecedented weather event that affected its apples. Its share price was down 0.7%. (NBR)

  • UK economic data has shown a record wage growth of 5.7%, and that unemployment was up to 3.6% from 3.5%. (BBC)

News Summary

  • Electoral laws in New Zealand will be changed to make it easier for Māori to choose which role to join. (Stuff)

  • New Zealand house prices have fallen by their largest amount since REINZ records began. (Stuff)

  • The New Zealand Labour party revealed their proposed changes to the Resource Management Act. (Stuff)

  • A satellite launched by Rocket Lab has made it to the Moon. (Stuff)

  • Details of almost 1,000 employees have also been implicated in Medibank's data breach. (9 News)

  • 17 ports across Australia will have workers locked out over a dispute between Tugboat operator Svitzer and the Maritime Union of Australia. (9 News)

  • British PM Rishi Sunak has criticised Russia's barbaric war after Ukraine PM Volodymyr Zelensky called for the war to be stopped. (BBC)

  • US president Joe Biden has said there will not be a new Cold War with China after meeting with Chinese President Xi Jinping. (BBC)

  • The world's population hit 8 billion. (BBC)

  • Amazon founder Jeff Bezos has pledged to give away most of his wealth. (BBC)

  • Amazon is preparing to reduce its workforce by up to 10,000 people. (BBC)

  • Binance has called for new industry regulation at the G20 summit. (BBC)

Deal Flow

Investments/ M&A

  • Credit Suisse has agreed to sell a large chunk of its securitised product group (SPG) to PE firm Apollo Global Management. This deal, along with others, is expected to reduce SPG's assets from $75B (USD) to $25B (USD). (BBG)

  • The French government announced it doesn't plan to dismantle the multinational electricity utility company Electricite de France after its proposed $10B takeover. (BBG)

  • Warren Buffett's Berkshire Hathaway has taken a ~$5B (USD) stake in Taiwan Semiconductor Manufacturing Co. (BBG)

  • United Rentals, the world's largest equipment rental company, will acquire the assets of its smaller rival, Ahern Rentals, for $2B (USD) in cash. (RT)

  • Fosun International, a Chinese multinational conglomerate, is considering sales of its assets in both China and internationally. One of these assets is the French luxury resort chain Club Med. It would seek to value Club Med at ~$1.5B (USD). (BBG & BBG)

  • Partners Group, a PE firm, has put the Australian childcare business Guardian Childcare and Education in next year's M&A pipeline. It expects a $1B (AUD) valuation. (AFR)

  • Software company Nitro's board has thrown their weight behind KKR-owned Canadian software company Alludo's $500m (AUD) bid. (AFR)

  • Australian PE firm Pemba Capital has agreed to acquire point-of-sale software company MSL Solutions for $120m (AUD). (AFR)

  • PwC Australia has started shopping Luv-a-Duck, an Australian duck manufacturer, for what is expected to be a $100m + (AUD) auction. (AFR)

  • Elliott Investment Managers disclosed a new 1.5% stake in Clarivate, a London-based analytics company. The stake is valued at $94m (USD). (BBG)

  • France's Despature family is considering a deal to buy Paris-listed building products company Somfy and take it private. (BBG)

  • The UK competition regulator has given Korean Air and Asiana Airlines one week to address merger concerns if they want to avoid a more in-depth investigation. (BBG)

  • Indian multinational conglomerate Adani Group has received regulatory approval for its open offer for Indian broadcaster New Delhi Television. (BBG)

  • Incitec Pivot, a chemical manufacturing company, has received unsolicited bids for its US Waggaman Ammonia plant. (AFR)

SPAC

  • Electriq Power, a solar battery storage company, will go public in the United States via a merger with blank-cheque firm TLG Acquisition One Corp in a deal which values the combined company at $495m (USD). (RT)

VC & Fundraising

  • Logistics tech startup Ofload has raised $60m (AUD) in a round which was led by Singapore's largest venture fund, Jungle Ventures. (AFR)

  • TaskPod, an Australian startup putting small private office cubes in public places, has raised $1m (AUD) in angel funding and is in the process of raising a larger seed round which will be followed by a series A round early next year. (AFR)

Equity Raises

  • Saudi Arabia's sovereign wealth fund, The Public Investment Fund, is considering an IPO of its oil and gas driller ADES International Holding in the first half of next year. It's believed the IPO would be at a $5B (USD) valuation. (BBG)

  • Ant Group's consumer finance unit is raising $1.49B (USD). This funding is coming from a subsidiary of Chinese optical lens producer Sunny Optical Technology Group as well as Jiangsu Yuyue Medical Equipment & Supply Co and Ant Group. (BBG)

  • Element 25, a magnesium development company based in Australia, has raised $30m (AUD) via a share placement at a 22% discount. (AFR)

Debt

  • A group of banks led by Citigroup and Bank of American are preparing to fund about $5.4B (USD) of debt, helping to finance PE firm Apollo's LBO of auto-parts maker Tenneco. (BBG)

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