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- OCR Remains 5.5%
OCR Remains 5.5%
Admin
July 17, 2023
Good Morning,
2degrees has joined One NZ and Spark in announcing a closure date for its 3G mobile network, NZ PM Chris Hipkins has ruled out a wealth and capital gains tax, the RBA will now set interest rates eight times a year, the People’s Bank of China hinted at more policy support for the economy, and Banks are assessing the affordability of loans by using "test" rates ranging from 8.75% to 9.5%.
Let’s jump in!
Before The Bell
Markets
BNZ has increased a number of its home loan interest rates. (Stuff)
Deflation risk in China hammer Fletcher Building and a2 shares (Stuff)
A “large pool of undervalued assets” in Hong Kong’s property market may spur more bargain hunting among their majority shareholders as valuations hit a 30-year low, according to JPMorgan Chase & Co. (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 & Data
Consumer inflation in China slid to zero in the last month, increasing the risk of deflation in Australia’s largest trade partner and piling pressure on Beijing to launch stronger economic stimulus (AFR)
Foodstuffs North Island and South Island made $51.8 million in combined profit in their 2023 financial years, with the southern co-operative back in the black after two years of making a loss. (Stuff)
Television channel Three owner Discovery NZ has reported a little-changed loss of $35 million for the year to the end of December as its costs and expenses rose in tandem. (Stuff)
The RBNZ has left the OCR at 5.5% (Stuff)
KMD Brands announced it is on track to hit $1B (NZD) of sales despite harder Q4 trading conditions. It fell 8.5% to 0.95c (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
Monday
Football Ferns beat Vietnam 2-0 in their final game before FIFA Women's World Cup (Stuff)
2degrees has joined One NZ and Spark in announcing a closure date for its 3G mobile network, meaning there will soon be no easy options to use tens of thousands of older mobiles in New Zealand (Stuff)
Taiwan’s stock exchange is expecting applications for new share listing to increase by more than 50% this year as it seeks to diversify its reliance from the technology sector (BBG)
Tuesday
Labour has well and truly lost its pandemic popularity, according to the latest political poll. (Stuff)
Big four consulting firms Deloitte, EY and KPMG have collectively forced out three dozen personnel over the past two years for misconduct, including at least 14 partners. (AFR)
A Russian military official who had commanded a submarine in the Black Sea and appeared on a Ukrainian blacklist of alleged war criminals has been shot dead by an unknown assassin while on his morning run. (RT)
Wednesday
Friday
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 People’s Bank of China hinted at more policy support for the economy, while also urging patience for the recovery to take hold (BBG)
India has just launched a rocket due to land a rover on the Moon in August (BBC)
Weekend
Air New Zealand finds itself confronted by formidable competition from American and Australian airlines as they return to New Zealand (Stuff)
Banks are assessing the affordability of loans by using "test" rates ranging from 8.75% to 9.5% (Stuff)
A powerful earthquake measuring 7.2 on the Richter scale has impacted the Alaska Peninsula region, leading to the issuance of a tsunami warning for the nearby area (RT)
After a two-year delay, Tesla has finally completed the construction of its Cybertruck (RT)
Deal Flow
Investments / M&A
Australia & New Zealand
Infrastructure investor Infratil has announces a conditional deal to buy 80% of a global network business, Console Connect, for USD$160 million (NBR)
Eroad has rejected a $1.30 takeover bid from Canadian company Volaris saying it materially undervalues the business (NBR)
Apex Greenhouses, the largest greenhouse builder across Australia and New Zealand, has sold a small stake to Dutch company GreenV BV (AFR)
Incitec Pivot is looking to separate its fertiliser and explosive divisions (AFR)
Key Global
Nestlé SA is discussing a potential sale of its peanut allergy medicine to Swiss healthcare group Stallergenes Greer (BBG)
U.S. private investment firm Bain Capital is in talks to buy Indian ice cream maker Vadilal and also considering taking control of Vadilal Industries and Vadilal Enterprises, which make and market the ice cream (RT)
Alibaba Group Holding Ltd. is considering selling shares to Ant Group Co. as part of the fintech company’s planned buyback after financial regulators wrapped a nearly three-year probe into the financial technology company (BBG)
Foxconn said it intends to apply for incentives under India's semiconductor production plan, a day after the Taiwanese firm split with Vedanta on a $19.5 billion chipmaking joint venture. (RT)
U.S. Senator Elizabeth Warren, a Democrat and frequent merger critic, joined three other lawmakers on Tuesday to urge the Defense Department to thoroughly review defense contractor L3Harris Technologies' $4.7 billion deal for Aerojet Rocketdyne Holdings. (RT)
Broadcom’s $61B (USD) acquisition of cloud-computing company VMware is close to getting sign off from the EU watchdog (BBG)
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
Mid-market private equity firm Next Capital has locked in AUD$375 million for its latest fund, which saw domestic investors account for more than half of commitments and a final close ruled off last week (AFR)
Western Australian copper junior Cyprium Metals was asking investors for an AUD$35 million cash injection on Monday morning, offering to part with shares at a whopping 63.6 per cent discount to the last close (AFR)
A 50% stake in Eastland Generation is on the market as the power company seeks capital for what it says are further generation opportunities totalling hundreds of millions of dollars. (NBR)
PE firm Cinven is seeking more time to close its €12B buyout fund (BBG)
AI Startup Alphasense is raising funds at a $2.5B (USD) valuation (BBG)
Elevate NZ has reached its goal of $1B (NZD) in public-private funding (NBR)
777 Partners is seeking €200m for football investments (BBG)
Sydney-based venture capital firm OIF Ventureshas raised $55m (AUD) over the last few weeks (AFR)
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)
Equity Raises
Australia & New Zealand
Listed medical device maker Atomo Diagnostics had its broker Bell Potter drumming up interest in an equity raising, after its shares climbed 136 per cent from 2.2¢ at June end to 5.2¢ on Monday’s close. (AFR)
CurveBeam AI, a medical imagery business, is looking to raise $25m (AUD) via an IPO. It plans on listing with a market cap of $153.7m (AUD) (AFR)
Job Board
New Zealand
Australia
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