Food Prices Soar for NZ

Author

Euan Marshall
April 18, 2023

Good Morning,

NZ food prices are up more than 12 per cent in the year ended March, China has rolled out a new electromagnetic weapon to quell violent protests, the United States has called for a ceasefire in Sudan as the capital was bombarded in deadly fighting and ANZ forecasts inflation will remain stuck at 7.2%.

Let's jump in.

Before The Bell

Markets

  • The NZX was up 0.5% on the day, but the New Zealand dollar remained subdued after the Reserve Bank's bigger than expected interest rate hike this month (Stuff)

  • All eyes will be on NZ consumer price index data (CPI), set to be released on Thursday this week, with market watchers keen to understand whether the rate of inflation will continue to bubble up (NBR)

  • Gold stocks weighed on the Australian share market as Regis Resources plunged 11.2 per cent after the company dramatically cut its production guidance and lifted costs. However, the ASX 200 still rose 0.3% at market close on Monday (AFR)

  • Mixed US data suggests that the world's largest economy is not slowing quickly enough to stop the Federal Reserve from raising interest rates next month (AFR)

  • Despite current banking fears, most major European markets including the UK have rallied by around 8% in the last month (BBG)

Earnings and Data

  • Food prices bounced more than 12% in the year ended March, with broad growth across all food categories, Stats NZ said (NBR)

News Summary

  • Three people from overseas have been killed in a South Canterbury crash after they hit a roadside barrier and their campervan exploded into flames (Stuff)

  • ANZ and ASB forecast that annual inflation will come in unchanged at 7.2% when Stats NZ reports on consumer prices for the March quarter on Thursday (Stuff)

  • The retail sector is feeling increasingly pessimistic, with almost half of businesses surveyed in an industry report missing their sales targets in the first quarter of the year (Stuff)

  • An overhaul of Australia's capital gains tax system could improve the budget by $5 billion annually, with leading economists throwing their weight behind a return to indexing investment returns to inflation (AFR)

  • Sydney has lost their ranking as Australia's biggest city, as Melbourne now holds the title (BBC)

  • Apple Inc.'s sales in India hit a new high of almost $6 billion in the year through March, highlighting the market's increasing importance for the iPhone maker as CEO Tim Cook arrives in the country to open its first local stores (BBG)

  • China demonstrated an electromagnetic gun that fires projectiles shaped like coins, a weapon state media said could be used to break up violent public disturbances (BBG)

  • Elon Musk's SpaceX made final preparations early on Monday to launch its powerful new Starship rocket system to space for the first time (RT)

Deal Flow

Investments / M&A

  • AustralianSuper will help mining executive Raleigh Finlayson consolidate the gold district around his childhood home in Western Australia under a revised $600 million deal with struggling miner St Barbara (AFR)

  • Pace Farms may have a new owner with Roc Partners in pole position to buy Australia's second-largest egg producer after its founders, Frank and Dianna Pace put the business up for sale last August (AFR)

  • Mid-market venture capital firm Aura Group has begun early soundings for its 40 per cent stake in Lannock Strata Finance, a fintech that lends to body corporates (AFR)

VC & Fundraising

  • Listed lithium explorer Latin Resources was drumming up investors for a $30 million AUD placement on Monday morning to spend at its Brazilian project (AFR)

  • Brand tracking startup Tracksuit is eyeing further expansion to the UK and US following their $7.5 million NZD seed raise (NBR)

Equity Raises

  • Virgin Australia's owners, Bain Capital, have abruptly cancelled plans to put the airline's management in front of potential investors in an IPO, even as the window for an ASX listing in the second half of this year closes (AFR)

Daily Picks

  • Learn more about ChatGPT, an AI tool which has taken the world by storm in this article (NBR)

  • Check out the recommendations of Wall Street investors on their top picks of industries based on career opportunities (BBG)

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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