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Humans Living on the Moon 🌗
Good Morning,
Goldman Sachs sees significant decline in US inflation next year, the world's population hit 8 billion, Donald Trump makes his 2024 Presidency run official, UK-based food delivery firm Deliveroo is quitting Australia, the Republicans have gained control of the House of Representatives, the Medibank hacker/hackers have released more private medical information, a historical deal on climate costs has been struck at COP27, Nasa expects humans to live on the moon this decade & Elizabeth Holmes the founder of Theranos has been sentenced to over 11 years in prison.
Let's jump in.
Before The Bell
Markets
Summary on markets of last week, included biggest drops. If any news is coming out soon.
Last Weeks Earnings
Alibaba surprisingly revealed a quarterly loss, as stalled growth in revenue fell short of covering for tech investment writedowns. (BBG)
Australia's unemployment returned to a near-five-decade low of 3.4 per cent in October after 32,200 people found work. (AFR)
A2 Milk sees a small double-digit growth in 2023, earnings in line. (Herald)
Cisco Shares jumped 4.8% after the maker of computer networking equipment beat expectations for its first-quarter earnings per share and revenue, according to StreetAccount. (CNBC)
The Fonterra Shareholders' Fund, which gives investors access to the dairy company's dividends, has lost $93m NZD in value over the past year and should have been bought out as a part of its capital restructure, outgoing chairperson John Shewan told the fund's annual meeting. (Stuff)
Infratil announced revenue growth of over $300m but reduced full-year net profit guidance to $510m to $540m (NZD). Its share price was up 0.2%. (NBR)
Japanese GDP has unexpectedly decreased by 1.2% annualised in the three months to the end of September. (BBC)
Transport company Move Logistics held its annual meeting in Auckland today after a difficult year in which it reported a financial loss of $4.2 million NZD. (NBR)
My Food Bag reported a 38% decrease in profits. Its shares fell 15.5%. (Stuff)
Nvidia's revenue fell 17%, but data centre growth remains strong. Nvidia reported fiscal third-quarter results on Wednesday for the period ending in October, with sales beating analyst expectations but earnings per share coming in light. (CNBC)
Ryman Healthcare reported reduced net profit of $194m (NZD) compared with $281.5m (NZD) a year ago. It did however have positive revenue growth and underlying profit. Its shares feel 4.63%. (RNZ)
Sanford announced net profits of $55.8m (NZD), up on $16.2m (NZD), revenue growth of 8.6% and that they would restart dividends with a 10c dividend. Its share price was flat. (Stuff)
T&G Global has announced it is forecasting a net loss between $1m to $5m (NZD) for FY22 following an unprecedented weather event that affected its apples. Its share price was down 0.7%. (NBR)
UK economic data
There was record wage growth of 5.7%, and the unemployment rate was up to 3.6% from 3.5%. (BBC)
UK inflation hit a 41-year high. UK consumer prices were up 11.1%, the highest since 1981. Food and drink price inflation is the highest since 1977.
US retail sales rose solidly. (RT)
Upcoming Earnings
Monday: Credit Card Spending NZ,
Tuesday: Argosy Property, Turners, NZ Trade Balance, Japan CPI, Technology One, Dell, Zoom
Wednesday: Serko, Tower, Oceania Healthcare, NZ OCR, EU Consumer Confidence, US Manufacturing Index, AU Flash PMI, HP, Best Buy
Thursday: AFT, Pacific Edge, Rakon, ECB announcement, John Deere
Friday: Radius Residential Care, EROAD, NZ Retail Sales
News Summary
Monday
Tuesday
New Zealand house prices have fallen by their largest amount since REINZ records began. (Stuff)
Details of almost 1,000 employees have also been implicated in Medibank's data breach. (9 News)
Amazon is preparing to reduce its workforce by up to 10,000 people. (BBC)
The world's population hit 8 billion. (BBC)
Binance has called for new industry regulation at the G20 summit. (BBC)
Wednesday
Thursday
Friday
The New Zealand government is looking at pushing back the due date to meet Healthy Homes standards for landlords and Kāinga Ora. (Stuff)
Next week, banks in the euro zone will repay 296 billion euros in long-term loans from the European Central Bank as it tries to combat rampant inflation. (RT)
Qatar's U-turned, confirming a ban on beer in the stadiums for the football world cup. (Guardian)
Weekend
The Medibank hacker/hackers have released more private medical information. (9 News)
Australian Prime Minister Anthony Albanese has said his meeting with Chinese President Xi Jinping was positive. (9 News)
A historical deal on climate costs has been struck at COP27. The deal will create a fund to help nations worst hit by climate change. (BBC)
Rishi Sunak has visited Ukraine and pledged another 50 million pounds in aid. (BBC)
Elizabeth Holmes the founder of Theranos has been sentenced to over 11 years in prison. She is expected to appeal the sentence. (BBC)
Nasa expects humans to live on the moon this decade. (BBC)
Donald Trump has been reinstated on Twitter. (BBG)
Deal Flow
Investments/ M&A
Credit Suisse has agreed to sell a large chunk of its securitised product group (SPG) to PE firm Apollo Global Management. This deal, along with others, is expected to reduce SPG's assets from $75B (USD) to $25B (USD). (BBG)
Chinese conglomerate Tencent will distribute a $20B (USD) stake in meal delivery giant Meituan as a dividend. (BBG)
The Ontario Teachers Pension Plan Board is emerging as the frontrunner to acquire a stake in SSE's electricity network. The assets could be valued at more than $12B (USD). (BBG)
The French government announced it doesn't plan to dismantle the multinational electricity utility company Electricite de France after its proposed $10B takeover. (BBG)
Australian mining company BHP brings OZ Minerals (another Australian mining company) saga to a head with the best and final offer of $28.25 (AUD) per share making it a $9.6B (AUD) deal. (AFR)
Novartis, a Swiss-American multinational pharmaceutical company, is weighing the sale of non-core assets. One of these is its ophthalmology unit which could fetch $5B (USD), and another is the respiratory unit. (BBG)
Enel Italy's largest utility company is considering selling its Peru operations. The sale could raises $5B (USD). (BBG)
Warren Buffett's Berkshire Hathaway has taken a ~$5B (USD) stake in Taiwan Semiconductor Manufacturing Co. (BBG)
Estee Lauder is close to buying designer brand Tom Ford in $2.8 billion (USD) deal. (BBG)
Ermenegildo Zegna will take control of Tom Ford's fashion operations as part of the Estée Lauder acquisition of the company. (BBG)
United Rentals, the world's largest equipment rental company, will acquire the assets of its smaller rival, Ahern Rentals, for $2B (USD) in cash. (RT)
Texas-based Oil producer Diamondback to buy Lario Permian (a unit of Lario Oil & Gas Company) for $1.5 billion (USD). (RT)
Fosun International, a Chinese multinational conglomerate, is considering sales of its assets in both China and internationally. One of these assets is the French luxury resort chain Club Med. It would seek to value Club Med at ~$1.5B (USD). (BBG & BBG)
German military equipment manufacturer Rheinmetall said it has agreed a deal to acquire Spanish explosives and ammunition maker Expal Systems for an enterprise value of 1.2 billion euros. (RT)
Fonterra, The NZ multinational dairy co-operative, has announced a conditional deal to sell its Chilean business, Soprole, for about $1.06B (NZD) to Gloria Foods, a consumer dairy market leader in South America. (NBR)
Indian packaging films company Jindal Poly Films is considering selling its European business. It could fetch a price of $1B (USD). (BBG)
Partners Group, a PE firm, has put the Australian childcare business Guardian Childcare and Education in next year's M&A pipeline. It expects a $1B (AUD) valuation. (AFR)
Abu Dhabi Ports Group, an portfolio of various logistics, ports, maritime and digital businesses, acquires Spanish logistics firm Noatum for $680m USD. (BBG)
Software company Nitro's board has thrown their weight behind KKR-owned Canadian software company Alludo's $500m (AUD) bid. (AFR)
American alternative investment management company Blackstone will buy a majority stake in Indian IT firm R Systems for $359 million (USD). (RT)
Australian PE firm Pemba Capital has agreed to acquire point-of-sale software company MSL Solutions for $120m (AUD). (AFR)
Link, an Australian share registry firm, chips off $105m AUD digital property settlement platform Pexa stake. (AFR)
PwC Australia has started shopping Luv-a-Duck,an Australian duck manufacturer, for what is expected to be a $100m + (AUD) auction. (AFR)
Elliott Investment Managers disclosed a new 1.5% stake in Clarivate,a London-based analytics company. The stake is valued at $94m (USD). (BBG)
Broadcom is seeking EU approval for $61 million (USD) VMware takeover. (BBG)
Abu Dhabi wealth fund Mubadala Investment will buy at least a 20% stake in the carbon-trading exchange, the AirCarbon Exchange. (BBG)
Softbank, a Japanese multinational conglomerate, has sold a 4.5% stake in Indian fintech firm One 97 Communications.
Anchorage, a PE firm, is pitching to Woolworth's for a takeover of retailer David Jones. (AFR)
Teoh Capital, the family office of TPG telecom founder David Teoh, is in due diligence to buy retailer David Jones. (AFR)
General Atlantic, a PE firm, is looking at ways to expand its stake in the Norwegian educational technology company Kahoot!. (BBG)
Sika has narrowed the number of bidders for its admixture assets after competition authorities frowned on some bidders. (BBG)
Disney has acquired a half-finished cruise ship. (BBG)
Sydney private equity investor Five V is making a tilt for art installations business Grande Experiences, which called in the bankers and hung up the for-sale sign earlier this year. (AFR)
The UK Government has ordered the overturning of Nexperia, a Dutch technology company which is a subsidy of Shanghai-listed Wingtech's takeover of Britain's largest chip manufacturing plant Newport Wafer Fab. (BBG)
AMP is set to acquire Nano Digital Home Loans' loan book for its banking arm AMP Bank. (AFR)
Hunter Point Capital and ADQ will buy a stake in Vistria Group (BBG)
France's Despature family is considering a deal to buy Paris-listed building products company Somfy and take it private. (BBG)
The UK competition regulator has given Korean Air and Asiana Airlines one week to address merger concerns if they want to avoid a more in-depth investigation. (BBG)
Indian multinational conglomerate Adani Group has received regulatory approval for its open offer for Indian broadcaster New Delhi Television. (BBG)
Incitec Pivot,a chemical manufacturing company,has received unsolicited bids for its US Waggaman Ammonia plant. (AFR)
Frasers Group is said to be in advanced talks to buy the 251-year-old firm Gieves & Hawkes, a historic Savile Row tailor. (BBC)
SPAC
Electriq Power, a solar battery storage company, will go public in the United States via a merger with blank-cheque firm TLG Acquisition One Corp in a deal which values the combined company at $495m (USD). (RT)
VC & Fundraising
New Zealand Growth Capital Partners, a Crown entity tasked with stimulating investment in New Zealand's early-stage investment market, is seeking about $400m (NZD) extra from the Government to have a second vintage of its Elevate fund of funds and set up a new seed fund of funds under a similar model. (NBR)
Former PayPal exec Jack Selby has new $110m (USD) VC fund for Arizona startups. (TC)
Advanced Navigation, an Aussie robotics company, has raised $108m (AUD). Its investors included PE fund KKR. (AFR)
Property investor Haben is seeking to raise $91m (AUD). (AFR)
Logistics tech startup Ofload has raised $60m (AUD) in a round which was led by Singapore's largest venture fund, Jungle Ventures. (AFR)
Uluu, a climate tech startup, has closed an $8m (AUD) seed round led by Main Sequence and CSIRO's VC arm. (AFR)
BizPay, a BNPL player, is raising a minimum of $8m (AUD). The $4m (AUD) sale is at valuation of $3.44m (AUD). (AFR)
AutoGrab, a pricing tool startup, has received $5m (AUD) from Melbourne-based PE firm Nash Advisory and Steve Baxter's Brisbane-based VC firm TEN13. (AFR)
TaskPod, an Australian startup putting small private office cubes in public places, has raised $1m (AUD) in angel funding and is in the process of raising a larger seed round which will be followed by a series A round early next year. (AFR)
Sydney's Conduit Capital to raise new fund. (AFR)
Equity Raises
SpaceX is in funding talks that would value the company at over $150B (USD). (BBG)
Saudi Arabia's sovereign wealth fund, The Public Investment Fund,is considering an IPO of its oil and gas driller ADES International Holding in the first half of next year. It's believed the IPO would be at a $5B (USD) valuation. (BBG)
Fairfax India, an investment company, is considering the IPO of Bangalore International Airport, which could value it at $3.7B (USD). (BBG)
Blackstone Files for Nexus Mall REIT IPO at value of $3B (USD). (BBG)
Ant Group's consumer finance unit is raising $1.49B (USD). This funding is coming from a subsidiary of Chinese optical lens producer Sunny Optical Technology Group as well as Jiangsu Yuyue Medical Equipment & Supply Co and Ant Group. (BBG)
Growatt Technology, a Chinese solar energy device maker, has received approval from the Hong Kong Stock Exchange for an IPO. It could seek as much as $1B (USD). (BBG)
Iceland's main tourist attraction, the Blue Lagoon, a geothermal seawater spa, is planning to IPO on the Nasdaq Iceland Exchange. It has previously been valued at $400m to $430m (USD). (BBG)
Legend Logistics, a logistics firm, is considering an IPO in Singapore to raise as much as $146m (USD). (BBG)
Australian-owned, online luxury fashion retail platform Cettire founder Dean Mintz is selling a $60 million stake in the online shopping platform owner on Thursday night. (AFR)
Element 25, a magnesium development company based in Australia, has raised $30m (AUD) via a share placement at a 22% discount. (AFR)
Nova Minerals, an Alaskan gold explorer, was seeking to raise $20m (AUD). (AFR)
Far East Gold is seeking to raise between $8m and $12m (AUD) via a share placement and a further $2m (AUD) via a share purchase plan. (AFR)
Junior explorer Wai Resources is looking to raise between $7m and $10m (AUD). (AFR)
Drone engine supplier OrbitalCorporation is seeking a $5m (AUD) equity injection at 20¢ AUD per share. The deal is at an 18.4 per cent discount to the last close. (AFR)
Desert Earth, a rare earth company, was seeking $1.5m (AUD) via a share placement. (AFR)
Debt
A group of banks led by Citigroup and Bank of American are preparing to fund about $5.4B (USD) of debt, helping to finance PE firm Apollo's LBO of auto-parts maker Tenneco. (BBG)
Property investor Dexus is headed to capital markets with a convertible notes deal for the first time in three and a half years. The company has hired BoA to underwrite and lead the $500 million AUD raising, which is slated to launch to institutional investors as early as Monday night. (AFR)
Kiwifruit post-harvest co-op EastPack is seeking $30 million from an issue of five-year unsecured loan notes offering interest at 8.5%. (NBR)
Private equity funds tap exotic loans as deals ebb. (BBG)
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