NZ Salaries Hit Growth Record

Author

Euan Marshall
June 20, 2023

Good Morning,

Global oil prices have fallen more than 1% following last weeks gains, online share trading firm Tiger Brokers has failed to gain accreditation as an NZX participant, the ASX has closed at its highest level since May, and advertised salaries in New Zealand have increased by 4.7% in the year to May 2023.

Let's jump in.

Before The Bell

Markets

  • Exporters will be keeping a close eye on China this week to see if the country’s central bank cuts longer term interest rates to stimulate the economy of New Zealand’s largest trading partner (Stuff)

  • Global shares drifted on Monday, consolidating gains after hitting a 14-month high last week, as investors awaited testimony from U.S. Federal Reserve Chair Jerome Powell in markets that remain dominated by monetary policy bets (RT)

  • Global oil prices fell more than 1% on Monday, backing off last week’s gains, as questions over China’s economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States (RT)

  • Australia’s sharemarket shrugged off a weak lead from Wall Street to close at its highest level since May on Monday, led by a rebound in healthcare stocks (AFR)

  • Shares in chemicals group DGL have fallen by more than a third in three days after the company lowered its full-year earnings, with the shares now trading 23 Australian cents below its IPO price (NBR)

  • Investor enthusiasm for the U.S. sharemarket, which helped push the S&P 500 into a bull market this month, looks misplaced given the risk of a recession, says Warren Pies of 3Fourteen Research (AFR)

  • ASX-listed Woolworths led a strong rally in consumer staples on Monday as its shares jumped 2.4 per cent after UBS upgraded the stock to a “buy” rating (AFR)

Earnings and Data

  • Advertised salaries increased by 4.7% in the year to May 2023, the fastest annual growth recorded by Seek NZ since its data collection began in 2016. However, with the country in a recession, job ad numbers declined 5% month-on-month and were 22% lower than May 2022, when job ads were at their highest on record (Stuff)

News Summary

  • China is widely expected to cut key lending benchmarks on Tuesday in the first such easing in 10 months, as authorities seek to shore up a slowing recovery in the world’s second largest economy (RT)

  • Eftpos provider Smartpay Holdings has disclosed the theft of information pertaining to a group of its customers in a ransomware cyber threat, but it is not yet sure of its extent of the theft or the content of the stolen data (NBR)

  • Indonesia and Elon Musk’s rocket company SpaceX on Monday launched the country’s largest telecommunication satellite from the United States, in a $540 million USD project intended to link up remote corners of the archipelago to the internet (RT)

  • Online share trading firm Tiger Brokers has failed to gain accreditation as an NZX participant, three years after its previous accreditation was suspended by the NZX (NBR)

  • US Secretary of State Antony Blinken has started high-level talks with senior Chinese officials in an attempt to heal relations between the two nations (NBR)

  • Electric seaglider company Ocean Flyer has signed a memorandum of understanding with the Far North - with ambition to open a new transport link between Whangārei and Auckland (NBR)

  • Emirates Airline confirmed it had joined in the frenzy of placing large new aircraft orders as it faced what it called a capacity squeeze when the A380s are phased out in a decade’s time (NBR)

  • Kiwibank and Bank of New Zealand credit card users whose accounts appeared to have been drained of thousands of dollars have had their account balances restored to their correct levels (Stuff)

  • Nearly 100 people in eastern India have died since late last week as a result of higher-than-normal temperatures, the Associated Press reported (BBG)

  • Singapore plans to more aggressively regulate electricity markets as price jumps intensify, again threatening to hurt the retailers that sell it to businesses and households (BBG)

Deal Flow

Investments / M&A

  • Billionaire investor Warren Buffett’s Berkshire Hathaway said it added to stakes in Japan’s five biggest trading houses to beyond 8% on Monday, a move likely to highlight and add to the momentum driving Japan’s stock market to new heights (RT)

  • Florida-headquartered private equity investor I Squared Capital has emerged as a preferred bidder for Downer’s waste management business Repurpose It, winning over the contractor with a bid of around $250 million AUD (AFR)

VC & Fundraising

  • Germany and Intel Corp. sealed an agreement for the US company to receive subsidies worth $10.9 billion USD for a semiconductor manufacturing facility in the eastern part of the country (BBG)

Equity Raises

  • Nido is shaping up to be the next initial public offering on fund managers’ calendars, after Redox and Abacus’ brokers succeeded in convincing investors to reopen their purse strings for new floats (AFR)

Daily Picks

  • Learn more about whether New Zealanders are truly recession-ready in this article from Stuff

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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