US Recession Certain

October 19, 2022

Good Morning,

New Zealand CPI came in at 7.2% YOY, the national average asking price for houses in New Zealand has dropped for the sixth month in a row, the Nord Stream pipe blast caused 50 meters of the pipe to be destroyed, the UK government has U-turned on more policies and the chance of a US recession in the next 12 months is 100% according to Bloomberg.

Let's jump in.

Before The Bell

Markets

  • Stocks rose strongly after a US rally caused by strong then-expected earnings from the Wall Street Banks. (AFR)

  • The Nasdaq had its best day since July.

  • The UK pound rallied after the U-turn on taxes.

News Summary

  • Gaurav Sharma has resigned as an MP, meaning there will be a by-election for Hamilton-West. (Stuff)

  • New Zealand CPI came in at 7.2% YOY, a 2.2% QOQ jump. This was higher than expected. (Stuff)

  • The national average asking price for houses in New Zealand has dropped for the sixth month in a row, which is a new record. (Stuff)

  • Australia's National Disability Insurance Scheme will see an $8.8B (AUD) blowout over the next four years. (AFR)

  • The floods in Victoria will cause food supplies to be disrupted in Australia. (AFR)

  • BlackRock's Akaysha Energy has won NSW's $1B (AUD) battery auction. (AFR)

  • The Nord Stream pipe blast caused 50 meters of the pipe to be destroyed. (BBC)

  • The UK government has U-turned on more policies, including how long the energy cap will be in place. (BBC)

  • According to Bloomberg, the chance of a US recession in the next 12 months is 100%. (BBG)

Deal Flow

Investments/ M&A

  • Continental Resources, a US shale oil producer, will be taken private by its founder Harold Hamm at a $27B (USD) valuation. (RT)

  • PE firm EQT has completed its acquisition of PE firm Baring Private Equity Asia for $6.7B (USD). (BBG)

  • BP will acquire US Biogas producer Archaea for $4.1B (USD). (BBG)

  • Norwegian energy company Equinox is considering buying UK oilfields from China's CNOOC in a deal worth between $1.9B-$2.9B (USD). (RT)

  • Fosun agreed to sell its stake in the parent company of Nanjing Iron & Steel for $2.1B (USD). (BBG)

  • Basslink's creditors have agreed to its $773m (AUD) sale to APA Group. (AFR)

  • Australia's ADT security is up for sale a deal could be worth $100m (AUD) plus. (AFR)

  • IMF-owned My Plan Manager has bought National Disability Support Partners in a deal worth ~$40m (AUD). (AFR)

  • SoftBank has sold its stake in struggling British online shopping platform THG to co-founder Matthew Moulding and the Qatar Investment Authority. (BBG)

  • Credit Suisse has placed its US asset management arm up for sale. (RT)

  • Kayne West is planning on acquiring social media site Parler. (AX)

VC & Fundraising

  • Kiwi wireless electricity transmission start-up Emrod is trying to raise over $5m (AUD) in pre-series A funding. (AFR)

Equity Raises

  • Intel has slashed the IPO valuation of its self-driving technology company Mobileye to $16B (USD), down from ~$50B (USD). (BBG)

  • Care Corporation is seeking to raise $24.75m to $49.5m (AUD) via its proposed IPO, which would value the company at between $520m and $544.4m (AUD). (AFR)

  • Bowen Coking Coal is seeking to raise $100m (AUD). (AFR)

  • Video tech business Atomos is raising $18m (AUD) at a 33.3% discount. (AFR)

  • Radiopharm is seeking to raise $10m (AUD) via a rights issue. (AFR)

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