Inflation Whacked the Markets

September 19, 2022

Good Morning,

The NZ Government has scrapped the traffic light system, inflation in the US has topped forecasts, Twitter shareholders approve Elon Musk takeover deal, New Zealand's economy shows underlying signs of slowing, suggesting further hikes are needed, Air New Zealand has rejected reports of a merger with Virgin Australia, Roger Federer is going to retire, New Zealand's most expensive art collection was up for sale & strong earthquakes have rocked Taiwan.

Before The Bell

Markets

  • Markets were down globally as more interest rate hikes look imminent this week. (RT)

  • The big meetings this week will be the Fed's rate decision on Wednesday and the English Central bank's rate decision on Thursday. (BBG)

News Summary

Monday

  • The New Zealand Government has scrapped the traffic light system and mask mandates. (Stuff)

  • The New Zealand Government has announced there will be a public holiday on the 26th of September to mark the Queen's death. (Stuff)

  • Australian PM Anthony Albanese has said there is no timetable for the republic referendum. (9 News)

  • JBWere boss Justin Greiner has resigned. (AFR)

  • AstraZeneca is planning to more than double new cancer drugs by 2030. (BBG)

  • Disney CEO says sports betting is part of the strategy moving forward and is part of the reason they are keeping ESPN. (BBG)

Tuesday

  • New Zealand food prices were up 8.3% in August compared with last year. (Stuff)

  • Mercury has confirmed construction on a new wind farm in Gore. (NBR)

  • Inflation in the US has topped forecasts, with CPI climbing 0.1% from July and core CPI up 0.6%. This will cement the odds of a big Fed hike. (BBG)

  • Goldman Sachs is planning to cut hundreds of jobs this month. (CNBC)

  • Jean-Luc Godard, a film director, has died. (BBC)

  • The Germany Government plans $68B (USD) worth of loan guarantees for energy firms. (BBG)

Wednesday

  • Douglas Pharmaceuticals opened a new facility in West Auckland to support growth. (NBR)

  • Five Eyes officials gather in Queenstown for a clandestine meeting. (Herald)

  • Twitter shareholders approve Elon Musk takeover deal as Musk tries to pull out. (BBC)

  • US emergency oil reserves are at their lowest level since 1984. (RT)

  • JPMorgan's advisory revenue was down 50%, and overall revenue was down 45%-50% in Q3. (CNBC)

  • Canada's PM Justin Trudeau announced a $3.43B (USD) inflation relief package. (RT)

Thursday

  • New Zealand's economy shows underlying signs of slowing, suggesting further hikes are needed. (NBR)

  • Pushpay deal talks closing on decision time. (NBR)

  • Virgin Australia is on track for a 2023 IPO. (AFR)

  • Founding Barrenjoey partner Anna Schibrowski has resigned. (AFR)

  • Citi offers junior bankers lower hours in the sun with their new Malaga office. (BBC)

  • South Korea 'cryptocrash' boss faces arrest warrant. (BBC)

Friday

  • Air New Zealand has rejected reports of a merger with Virgin Australia. (Stuff)

  • My Food Bag CEO, Kevin Bowler, resigned. (Herald)

  • The World Bank has warned global rate hikes could trigger a recession in 2023. (BBC)

  • The global cargo market has sagged. (RT)

  • The first US rail strike in 30 has been averted with a tentative deal in place. (BBC)

  • US DOJ has sued to block Assa Abloy's deal for Spectrum Brands unit. (BBG)

  • The Eurozone inflation has been confirmed as 9.1% YOY and 0.6% month-on-month for August. (RT)

  • Roger Federer is going to retire after Laver Cup in September. (BBC)

Weekend

  • New Zealand's most expensive art collection was up for sale on Sunday. (Stuff)

  • New Zealand has bought in new regulations to try and protect its most productive farmland. (Stuff)

  • New Zealand has a new record for the most expensive art piece bought at an auction in the country of $2.45m (NZD). (Stuff)

  • The German Government has taken control of stakes in Russian company Rosneft's oil refineries. (BBC)

  • US Senator Elizabeth Warren has urged the US Department of Transport to block JetBlue's merger with Spirit Airlines. (BBG)

  • Strong earthquakes have rocked Taiwan, with a magnitude of 6.2 recorded on Saturday and then a 6.8 recorded on Sunday. (Stuff)

  • Spurs have smashed Leicester 6-2 in the EPL. (BBC)

Deal Flow

Investments/ M&A

  • Ramsey Health Care's near $30B (AUD) deal with KKR is off. (AFR)

  • Computer software company Adobe has agreed to buy software design start-up Figma Inc in a deal worth ~$20B (USD). (BBG)

  • KKR and Global Infrastructure Partners are among PE firms competing for a stake in Vodafone's ~$13.4B wireless tower unit Vantage Towers. EQT, a Swedish investment firm, is also said to be interested. (BBG)

  • OZ Minerals is seeking a ~$10B (AUD) deal with BHP, which would value each share at ~$30. BHP is considering raising its current $25 a share bid. (BBG)

  • ByteDance, the parent company of TikTok, will buy back $3B (USD) in shares from investors after IPO plans are stalled. (BBG)

  • Despite IMF's threats, Atlas Arteria has signed a $2.93B (AUD) deal to acquire a 66.66% stake in the Chicago Skywalk Motorway. (AFR)

  • Link Group's $2.5B (AUD) buyout is in the balance as there might be a hitch in getting UK Financial Conduct Authority approval. (AFR)

  • Canadian pension manager PSP Investments is planning to sell its stakes in private equity funds valued at $2B (USD). (BBG)

  • Deltastream Energy sells itself to Tamarack Energy for $1.43 billion (CAD) in a $1.4 billion (CAD) return for investors. (BBG)

  • US drug distributor Amerisource Bergen to buy German company PharmaLex in a $1.3B (USD) deal. (RT)

  • Drugmaker Apollomics agrees to merge with Maxpro SPAC, valuing the company at about $1B (USD). (BBG)

  • Cove Communities, a mobile home business, is nearing a deal for fellow mobile home business Blair in a deal that would value Blair at ~$1B (USD). (BBG)

  • Ontario Teachers' Pension Plan Board is nearing a deal to buy a stake in speciality packaging company GPA Global from buyout firm EQT AB. The deal would value GPA in the $700-$800m (USD) range. (BBG)

  • Germany sold its entire stake in Lufthansa at $760 million profit via a placement with international investors. (BBG)

  • Zara Billionaire Amancio Ortega has spent over $700m (USD) buying logistical centres. (BBG)

  • PE firm PAG to acquire pie makers Pattie Foods and Lean Cuisine's owner Vesco Foods in a $550 million (AUD) two-headed deal. (AFR)

  • PE firm KKR is seeking an adviser to sell its stake in Indian financial service firm Avendus Capital in a deal that would value the company at ~$500m (USD). (BBG)

  • Saudi Arabia's sovereign wealth fund PIF has signed a pact to acquire a 30% stake in Almosafer Travel & Tourism Co for $412m (USD). (BBG)

  • Tamboran Resources is looking to buy into Origin Energy'sBeetaloo Basin in a deal worth ~$150m (AUD). (AFR)

  • AFC Bournemouth's owner has revived his interest in selling the club after it returned to the premier league. Its believed to be valued at ~$150m (USD). (BBG)

  • Aussie search startup Search.io has been acquired by French unicorn company Algolia for over $100m (AUD). (AFR)

  • An Australian firm is looking set to acquire NZ IT service firm Fronde in an $8.5m (NZD) deal. (NBR)

  • Auto parts supplier Aptiv to acquire an 85% stake of Italy's Intercable unit that manufactures high voltage busbars. (RT)

  • Joe Lewis and his Tavistock/AA Trust now have a 50.07% stake in the Australian Agriculture Company. (AFR)

  • Total Energies sold its 18% interest in the Iraqi Sarsang oil field. (RT)

  • PE firm Silver Lake has become football club Manchester City's second biggest shareholder, now owning 14.5% of City Group after acquiring an additional 4.5% stake from Chinese investors CMC Football Holdings. (BBG)

  • Japanese bank Shinsei has increased its stake in Latitude Financial Servicesfrom 9.95% to 12.85%. (AFR)

  • Abu Dhabi Sovereign Wealth Fund divests 8.6% of Abu Dhabi National Energy to several investors. (BBG)

  • Air India will expand its fleet by leasing 30 Boeing and Airbus aircraft. (RT)

  • Ubisoft is still open to other partners after the Tencent deal. (RT)

  • BP has bought US-based power and natural gas retailer EDF Energy Services. (BBG)

  • JPMorgan will boost its payments business after acquiring US firm Renovite Technologies. (RT)

  • AppLovin has withdrawn its offer to combine with Unity Software. (BBG)

  • Apex Group, a global financial service firm, has acquired Implemented Investment Holdings, the owner of InvestNow. (NBR)

  • Business management software company MYOB has acquired the payroll platform Flare. (AFR)

  • Citizens Financial Group agreed to buy College Raptor, a firm that helps connect students with colleges. (BBG)

  • Global investment powerhouse BlackRock Real Assets buys NZ-based company solarZero. (NBR)

  • Deloitte merges with Francis Healthcare to bolster its health offering. (NBR)Former Barclays CEO Bob Diamond takes stake in investment bank Cascadia Capital. (BBG)

  • The world's largest hedge funds have built stakes in smokeless tobacco company Swedish Match. (BBG)

  • Boss of Patagonia Clothing to transfer ownership of the firm to two charities. (BBC)

  • Air Canada is buying 30 electrical planes from Heart Aerospace. They will be used on regional routes, and the expected delivery is in 2028. (RT)

  • Trepang Services has backed the Tetra-Javelin bid for a joint venture with Australia Pacific Coal. (AFR)

VC and Fundrasing

  • VC firm Northzone has raised a $1B (USD) fund for fintech and Web3 investments. (CD)

  • TeraWatt Infrastructure, a company that builds EV charging infrastructure for fleets, has raised a $1B (USD) series A round. (TC)

  • Prime Movers Lab, a VC firm focusing on breakthrough scientific startups, has raised a $500m (USD) early growth fund. (PR)

  • Bluestar Energy Capital, a global renewable energy platform, has raised $100m (USD) of initial capital. (BW)

  • Sonder, an Australian workplace well-being start-up, has raised $35m (AUD). (AFR)

  • Suzuki Motors have taken a stake in Melbourne-based vehicle maker Applied EV in a funding round that raised $21m (AUD) at a $170m valuation. (AFR)

  • DataMesh, a Sydney-based payments start-up, is expected to attempt to raise $15m (AUD) at a $115m (AUD) valuation. NAB's venture capital arm is expected to lead the raising round. (AFR)

  • Vudoo, a Melbourne-based marketing technology company, is attempting to raise $7m (AUD). (AFR)

  • Internet 2.0, an Australian cybersecurity company, has raised $5m (AUD) at a $50m (AUD) valuation. The round was led by Ellerston Capital and Bondi Partners' 1941 Fund. (AFR)

  • CarExpert has raised $5m (AUD). (AFR)

  • Dubai meta-verse rim MetaFi secures $3 million (USD) from industry heavyweights (BW)

  • Alimetry and Auckland University have received $1m in funding from the Endeavour Fund's Smart Ideas funding pool to develop a wearable device to detect gut surgery complications. (NBR)

  • Sutton Motors was revealed as the party that paid a 25% premium to buy Quadrant's stake in Automotive Holdings. (AFR)

Equity Raises

  • Patanjali Group plans to raise ~$62.7B (USD) by listing 4 more companies on the Indian Stock Exchange in the next 5 years. (BBG)

  • Intel has cut its expectation for its Mobil Eye's IPO to $30B (USD). (BBG)

  • Mineral Resources US lithium spin-off could be worth up to $17B (AUD), according to UBS. (AFR)

  • AIG unit Corebridge is valued at over $13b (USD) after shares fell 2% after IPO. (RT)

  • Atlas Arteria to launch a $3.15 billion (AUD) rights issue at $6.30 (AUD) per share. (AFR)

  • AIG's Corebridge raises $1.68 billion (USD) at the bottom of its IPO range. (BBG)

  • Dubai increased Salik's IPO size to $1B (USD) from $750m on the back of strong demand. (BBG)

  • Kuwait conglomerate Alghanim Industries is weighing a $1B (USD) IPO. (BBG)

  • Salik Dubai's road toll operator IPO was wrapped up within hours, raising $817m (USD). (BBG)

  • The Sustainable Farmland Trust is planning to list on the London stock exchange in a bid to raise £200m to invest in US farmland assets. (BBG)

  • The Independent Living REIT plans to raise £150m via a London stock exchange listing to invest in supported housing. (BBG)

  • Tamboran Resources will launch a $150m (AUD) equity raise if they decide to proceed with the rumoured acquisition into the Beetaloo Basin. (AFR)

  • Listed lithium play Anson Resources offer share placement of $45 million (AUD) to investors. (AFR)

  • Australian listed property owner Aspen Group has launched a $36.3m (AUD) placement at a 4.5% discount. (AFR)

  • Respiratory devices business Adherium will raise $13.5 million (AUD) at a 37.5% discount. (AFR)

  • ASX-listed Lithium Energy launched a $12m (AUD) share placement to investors at a 16.7% discount. (AFR)

  • Cannasouth, a New Zealand-listed medical cannabis company, has fallen short of its desired capital-raising target of $4.1m (NZD) as raised $3.2m (NZD). (NBR)

  • Peter Botten- chaired Conrad Asia Energy set to IPO on ASX. (AFR)

  • Honda is considering listing its electrical motorcycle business. (RT)

Debt Raises

  • Banks have kicked off the second part of a debt package for the buyout of Citrix Systems, which is a $4B (USD) secured bond offering. (BBG)

  • NZ Government launches green bond programme (NBR)

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