Football world cup wraps up🏆

December 19, 2022

Good Morning,

Goldman Sachs is cutting hundreds more jobs as their consumer unit shrinks, The Treasury has warned that New Zealand will enter a recession in 2023 with unemployment peaking at 5.5%, Venomous snake found on Auckland Beach, Fans storm the pitch and attack Melbourne City's goalkeeper.

Before The Bell

Markets

  • Chinese stocks slid on Monday amid some profit-taking following their sharp recent gains and as general caution prevailed in equity markets ahead of global central bank meetings. (BBG)

  • Oil advanced as a crucial North American pipeline remained shut and the market digested the latest virus developments in China. (BBG)

  • The prices supermarkets had to pay suppliers to stock their shelves in New Zealand were 10.2% highest in November compared with a year ago, data from economists at Infometrics shows. (Stuff)

  • Equities rallied as investors expect US CPI to come in slightly cooler on previous months

  • Following hawkish comments by Fed chairman Jerome Powell and a mediocre economic update from China the NZX 50 moved +0.2% higher to 11.609.99, The ASX 200 tumbled -0.6% to 7,204.80, and the Nasdaq (-0.8%) and S&P 500(-0.6%) saw losses.

  • The New Zealand share market held its own in the face of a big fall on Wall Street – helped by the passive investment funds having to rebalance their local weightings in two indices. (Herald)

  • An index of global stocks headed for a second-straight weekly loss after warnings from central bankers that interest rates would stay higher for longer. (BBG)

  • Tech slide weighs on ASX, ends the week 0.9pc lower. (AFR)

Earnings

  • Morgan Stanley plans to slash investment bankers' annual bonuses by as much as 50% in Asia, said two people with direct knowledge of the matter, as the Wall Street firm reins in costs to tackle tough market conditions that have hit its revenue. (RT)

  • Monthly GDP in the UK grew by 1.5% in October 2022 compared with the same month last year. For comparison, monthly GDP grew by 1.3% between September 2021 and September 2022. (Office for National Statistics UK)

  • Adobe shares rose 6% in extended trading on Thursday after the design software maker announced fiscal fourth-quarter earnings and guidance that exceeded analysts’ expectations. Earnings: $3.60 per share, adjusted, vs. $3.50 per share as expected by analysts, according to Refinitiv. Revenue: $4.53 billion, vs. $4.53 billion as expected by analysts, according to Refinitiv. (CNBC)

Earnings coming up for the week

  • Monday: Buru Energy Ltd, Firefinch Ltd, Nike Inc, BHP Group Limited

  • Tuesday: Pilot Energy Ltd, Micron Technology Inc, Cintas Corporation, Banco Santander Brasil SA

  • Wednesday: Paychex Inc, CarMax Inc, Eve Holding Inc.

News Summary

Monday

  • Russian forces pounded targets in eastern and southern Ukraine with missiles, drones and artillery, while millions remained without power in subzero temperatures after further strikes on key infrastructure. Queues form at fever clinics as China wrestles with COVID surge. Three women were killed in a cafe shooting in Italy. Snow forces UK's Stansted Airport to suspend all flights. Experts predict U.S inflation to be much lower by the end of 2023.

Tuesday

  • Sam Bankman-Fried, the founder of defunct cryptocurrency firm FTX, has been arrested in The Bahama's on 'financial offences' charges at the request of the US Government (BBG) 

  • Goldman Sachs is cutting hundreds more jobs as their consumer unit shrinks (BBG)

  • European Parliament offices have been searched in a probe into alleged bribes from Qatar (BBC)

  • Embattled lender Moola has estimated a shortfall of NZD$9.4 million with a loan book sale underway (NBR)

  • Pacific Edge's shares were up after new clinical evidence shows significant improvements in its Cxbladder tests (NBR)

  • Former Australian Prime Minister, Scott Morrison, wanted a to set up a secret ministry so that he could have the final say on foreign investment proposals (AFR)

Wednesday

  • The Treasury has warned that New Zealand will enter a recession in 2023 with unemployment peaking at 5.5% (NBR)

  • The RBNZ has defended spending millions on investment which included an office refit and a new website (NBR)

  • The United States Congress has introduced legislation to ban social media App Tiktok in the US over Chinese security concerns (BBC)

  • The Federal Reserve is expected to raise rates by 50 basis points after US CPI came in lower that expected (BBG)

Thursday

  • Tesla CEO Elon Musk sold about 22 million more shares in his electric vehicle business, which were worth around $3.6 billion, according to a financial filing out Wednesday night. The transactions took place between Monday and Wednesday this week according to the filings with the Securities and Exchange Commission. (CNBC)

  • U.S. and Russia make another prisoner swap; Moscow says no ‘Christmas ceasefire’ (CNBC)

  • Auckland International Airport shares have resumed trading after being halted following speculative comments from Auckland mayor Wayne Brown that the company was planning a major capital raising to fund a new domestic terminal. (Stuff)

  • A 6.2 magnitude earthquake originating in the waters off Taiwan's eastern coast shook the island on Wednesday afternoon (local time), but no injuries or major damage were immediately reported. (Stuff)

  • Elon Musk, once worth as much as $340 billion, has been displaced as the world’s richest person by Bernard Arnault. (BBG)

Friday

  • Venomous snake found on Auckland Beach: Woman says DoC told her to ‘let it free’. (Herald)

  • A landslide today at a tourist campground in Malaysia left 16 people dead and authorities said 17 others were feared buried at the site on an organic farm outside the capital of Kuala Lumpur. (Herald)

  • Real Madrid signs 16-year-old Brazilian striker Endrick from Palmeiras for reported $94 million fee. (9 News)

  • Coles introduces buying limit on frozen chips as floods hit potato supply. (9 News)

  • Ten people, including five children, have been killed in a fire in an apartment building near Lyon, France, the local government says. (BBC)

  • Trump Hawks Superhero NFT Trading Cards as Crypto Universe Implodes. (BBG)

Weekend

  • KIA secures multimillion-dollar gig sponsoring Thursday night NRL (AFR)

  • Fans storm the pitch and attack Melbourne City's goalkeeper in this weekends League derby (9news)

  • North Korea fire two ballistic missiles towards the East Sea (RT)

  • The bank of Japan is expected to stick with negative interest rates (BBG)

  • Croatia defeat Morocco in 3rd and 4th play-off at football world cup (CNBC)

Deal Flow

Investments/ M&A

  • Investment funds managed by Morrison & Co have agreed to sell 11 New Zealand schools, a prison and student accommodation to a UK-listed investment company for $200 million NZD. (NBR)

  • A consortium of investors, led by major Seadragon shareholder Mark Stewart, now owns 90% or more of voting rights in Omega-3 and marine refinery company Seadragon. (NBR)

  • Microsoft is to take a 4% equity stake in London Stock Exchange Group as part of a 10-year commercial deal to migrate the exchange operator's data platform into the cloud, the British company said on Monday. (RT)

  • Amgen Inc. has agreed to buy Horizon Theraputics Plc, offering around $116.50 for each Horizon share at a valuation of about $26 billion. (BBG)

  • Scott Farquhar and his wife Kim Jackson are understood to be inching towards a deal to take a material stake in Australian born-and-bred Mexican fast food chain Zambrero. (AFR)

  • Woolworths has sold its $636 million stake inEndeavour Group via trade through investment bank UBS (AFR)

  • ACC has boosted its stake in property asset company Asset Plus as a potential capital return looms next year (NBR)

  • Private equity group Five V has agreed to take a 30% stake in Australian born and bred packaging company BioPak which values the firm at AUD$275 million (AFR)

  • Germany's Deutsche Bahn is nearing a decision to sell DB Schenker logistics unit which would value the division at €20 billion (BBG)

  • The UAE is set to buy a stake worth USD$855 million in Israeli financial services firm Phoenix Group (BBG)

  • More details are emerging about Skip Capital’s looming interest in burrito maker Zambrero, with the deal on track to be signed next week. The raising’s expected to see Zambrero, which has never raised a dollar from external investments, pick up about $250 million in fresh capital at a valuation north of $700 million. (AFR)

  • Qatar’s Nebras Power has joined Goldwind at the $750m 312 megawatt Moorabool Wind Farm in Victoria, Australia’s sixth-largest operating wind farm. Nebras Power has struck a deal to acquire a 49 per cent stake, putting it on the share register alongside Hong Kong and Shenzhen listed windfarm developer and owner Goldwind’s local arm Goldwind Australia. (AFR)

  • Woolworths Group boss Brad Banducci says there is plenty of growth left in the booming pet sector, from doggy daycare to nutrition and grooming, after the grocery giant snapped up a 55 per cent stake in pet business PetspirationGroup for $586 million. (AFR)

  • Spark is in talks with TVNZ about a potential “content partnering agreement” covering Spark Sport, the telco said on Thursday. (Stuff)

  • Telecommunications company 2degrees has agreed to sell its cellphone towers for $1.08 billion to a firm jointly owned by rival Spark and a Canadian pension fund. (Stuff)

  • Deutsche Bahn AG will explore selling its DB Schenker logistics unit in a deal that could reap around €20 billion ($21.4 billion USD) for Germany’s heavily indebted state-owned rail operator. (BBG)

  • Australia-based mining and metals company Rio Tinto completes $3.3 billion (USD) Turquoise Hill deal for larger share in Mongolia project. (RT)

  • Woolworths Holdings Ltd. is nearing a deal to sell Australia’s oldest department store chain David Jones to Anchorage Capital Partners for about A$130 million ($89 million USD), according to people familiar with the matter. (BBG)

VC & Fundraising

  • Auto parts startup, Partly, has closed the largest Series A raise in New Zealand history (Herald)

  • Start-up Avenue Bank, which sells a partially secured bank guarantee product to SMEs, is donning the hard hat to put a $10 million capital raising to investors. (AFR)

  • 5B, the Malcolm Turnbull and Simon Holmes à Court-backed modular solar panel pioneer, has secured a funding injection of $20 million from BP’s venture capital fund to speed the development of automated production. (AFR)

  • Four major Japanese banks have agreed to provide a loan totalling 1.2 trillion yen ($8.8 billion) to the Japan Industrial Partners Inc.-led consortium for its buyout offer for Toshiba Corp., people familiar with the matter said. (BBG)

  • Mews, a cloud-based software company that serves the hospitality sector, has raised $185 million in a funding round led by Kinnevik and Goldman Sachs Asset Management. (BBG)

  • U.S. oil company Chevron has led a $318 million fundraising round for Canada-based Svante, which develops filters to capture industrial carbon emissions for storage or reuse, the companies said on Thursday. (RT)

Equity Raises

  • Mobile Tyre Shop, founded by Challenger's former head of leasing, is parading its wares to potential investors for a $20 million AUD pre-IPO round that is expected to be shopped as far as Tokyo Stock Exchange-listed tyre manufacturing giants. (AFR)

  • Zip Co launched a snap AUD$ 12 million share placement to help redeem some of its convertible notes early (AFR)

  • Queensland copper and gold explorer SQX Resources launches IPO (AFR)

  • Turkish logistics and transport company MNG is looking to expand using proceeds from a SPAC listing (BBG)

Debt Raises

  • Country Garden Holdings Co. Ltd and Longfor Group Holdings Ltd. are among the first private Chinese developers being lined up to receive offshore loans that could help their debt repayment, in the latest sign of support for the stricken property sector. (BBG)

  • Credit Suisse provided an emergency $US140 million loan to Greensill Capitalbased partly on invoices to companies that deny ever doing the business stated on the documents. (AFR)

  • Foreign investors continued to offload holdings in China's onshore bonds for a 10th straight month in November, although some market watchers expect the outflow pressure to ease soon. (RT)

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