Liz Truss Has Lost The Trust

October 21, 2022

Good Morning,

Hundreds of Auckland homeowners could lose their properties to a proposed bus lane, New Zealand households have become $89.9B (NZD) poorer, Jarden Australia CEO Robbie Vanderzeil is set to move to chairman, an independent report has stated Australia's lockdowns were too harsh, Liz Truss's future as Britain's PM is more uncertain, the Bank of England will respond to the new UK fiscal plan, China has summoned chip manufacturers for emergency talks, VC investment has dropped to the lowest level since Q4 2017 & Lionel Messi has launched an investment firm.

Let's jump in.

Before The Bell

Markets

  • Bond sell-off sinks the stock market globally. As US 10Y Treasuries hit their highest point since July 2008 during the day. (AFR)

  • Hong Kong shares hit their lowest levels since May 2009. (BBC)

  • The Japanese yen slides past the key 150 level with the USD. (RT)

Earnings

  • Auckland Airport has lifted its profit guidance due to a stronger-than-expected rebound in travel. (Stuff)

  • Tesla beat Q3 profit but missed revenue estimates. It cited supply chain bottlenecks as why it delivered fewer vehicles than expected. Their shares fell 3.7% in immediate AH trading. (RT)

  • IBM beat profit and revenue estimates. It also raised its FY revenue growth forecast as revenue grew 6.5% YoY; its stock jumped 4.4% in AH trading (CNBC)

  • Procter & Gamble beat EPS and revenue estimates as higher pricing helped offset lower sales volume and currency headwinds. However, the company lowered guidance and expects a $1.3B FY blowout due to the rising US dollar; their stock rose 0.8% yesterday. (CNBC)

  • Nasdaq reported strong Q3 EPS and revenue. After a 6% YoY increase in net revenues. It also relayed confidence in their positions amidst rising rates. However, their stock fell ~2.5% yesterday. (Nasdaq)

News Summary

  • Hundreds of Auckland homeowners could lose their properties to a proposed bus lane. (Stuff)

  • Farmers convoyed through Manawatū to protest against the emission plan. (Stuff)

  • Westpac has lifted mortgage rates in New Zealand. (Stuff)

  • New Zealand households have become $89.9B (NZD) poorer in the June quarter. (Stuff)

  • Sharesies have entered into employee share schemes. (Herald)

  • Jarden Australia CEO Robbie Vanderzeil is set to move to chairman, with Sarah Rennie and Aidan Allen taking over as co-heads. (AFR)

  • Australian Green Party deputy leader in the Senate, Lidia Thorpe, has resigned from this duty due to an undisclosed relationship. (9 News)

  • An independent report has stated Australia's lockdowns were too harsh. (9 News)

  • The Australian jobless rate stayed steady a 3.5%, but the number of people in work only increased by 900, which was well short of the expected 25,000. (AFR)

  • Australia's Syrah Resources is exploring supplying LG Energy solutions with key lithium-ion battery components, which sent its shares to a 4-year high. (RT)

  • Liz Truss's future as Britain's PM is more uncertain after the home secretary resigned and a chaotic vote on fracking took place. (BBC)

  • Conservative lawmaker Sheryll Murray has submitted a letter of no confidence in UK PM Liz Truss. (RT)

  • The Bank of England will respond to the new UK fiscal plan, and rates may not rise as much as the market expects. (RT)

  • Ukraine is facing its first nationwide electricity outage. (RT)

  • Mercedes has signed a 1.5 billion euro deal with Rock Tech Lithium to receive an average of 10,000 tons of lithium hydroxide per year. (RT)

  • JPMorgan has launched Capital Connect, a platform that aims to connect startup founders with VC investors to simplify the fundraising process. (RT)

  • China has summoned chip manufacturers for emergency talks. (BBG)

  • China is debating a reduction to COVID quarantine for inbound travellers. (BBG)

  • Indonesia's central bank has increased borrowing costs by 50 basis points. (BBG)

  • Lionel Messi has launched an investment firm targeting sports and tech. (BBG)

  • VC investment has dropped to $87B in Q3, the lowest level since Q4 2017. (BW)

Deal Flow

Investments/ M&A

  • Philip Morris, an NYSE-listed tobacco company, has increased its offer for Swedish Match, a smokeless tobacco company, to $15.8B (USD). Philip Morris has also acquired the rights to sell Altria Group's IQOS device in the US for $2.7B (USD). (BBG)

  • Telecommunication giant AT&T is in talks with investors to create a joint venture to invest in a fibre-optic network expansion. The deal is expected to be worth between $10B & $15B (USD). (BBG)

  • Ultra-low-cost US airline Spirit Airlines has received approval from its shareholders for its $3.8B (USD) sale to low-cost American airline JetBlue Airways. (BBG)

  • Qatar is in talks to invest $2.5B (USD) in Egypt via the purchase of state-held stakes in Egypt's biggest mobile network operator and other companies. (BBG)

  • Fosun International, a Chinese conglomerate, said it intends to sell its 60% stake in the parent company of Nanjing Iron & Steel. It is expected to bring in as much as $2.2B (USD). (BBG)

  • GoTo, Indonesia's largest tech company, is in talks with its major owners, Alibaba and SoftBank, for a controlled sale of $1B (USD) of their stakes. (BBG)

  • Investment firm EQT is exploring the sale of American bus operator First Transit which is expected to bring in less than $1B (USD). (BBG)

  • CPE, a PE firm, is looking to sell its Chinese hair treatment chain Zhuhai Hairology its believed to be worth between $300m & $400m (USD). (BBG)

  • Sequoia Financial Group, a US investment advisory group, has sold a minority stake in PE firm Valeas Capital Partners for $200m. (BBG)

  • Challenger Ltd has sold its licensed Challenger Bank to New Zealand's Heartland Group for $36m (AUD). (AFR)

  • Distributor and health supplement marker Homart Pharmaceuticals is set to emerge with a $3m (AUD) stake in ASX-listed Wellnex Life. (AFR)

  • Cathie Wood has been buying shares in Nurix Therapeutics, a small biopharmaceutical company. In total, her ARK Genomic Revolution ETF has purchased over 840,000 shares. (BBG)

  • Geely's Chinese billionaire owner Li Shufu is interested in increasing his stake in Aston Martin from 7.6% to 10%. (BBG)

  • Elliott Investment Management, an American investment firm, has taken a stake that is less than 3% in German-based healthcare firm Fresenius SE & Co. (BBG)

  • Perth-based share-trading platform Marketech has acquired rival Opentrader's retail client book. (AFR)

  • Nestlé has acquired Seattle's Best Coffee brand from Starbucks. (WSJ)

  • Momentive Global, the owner of SurveyMonkey, is considering selling the business after receiving interest. (BBG)

  • Link Group is looking to sell its UK unit Link Fund Solutions and has hired Macquarie Capital and UBS to run the process. (AFR)

  • New Zealand winemaker Yealands Wine Group has hired Cameron Partners to court PE and other strategic buyers as its owner Marlborough Lines Ltd is considering a sale. (AFR)

VC & Fundraising

  • Canberra-based food tech startup Nourish Ingredients has raised $45.3m (AUD). It added Hong Kong Billionaire Li Ka-Shing's Horizons Ventures, Main Sequence Ventures and Hostplus to its register. (AFR)

Equity Raises

  • Saudi Armco is pushing ahead with its IPO plans offering its energy trading business which is expected to come to fruition at the end of this year or early next year and value the unit at over $30B (USD). (BBG)

  • WA gold play Pantoro is seeking to raise between $25m & $30m (AUD) via a share placement at a 14.7% discount. (AFR)

Debt Raises

  • Insurance Australia Group is set to follow the Commonwealth Bank of Australia to the hybrid market. (AFR)

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