No Messi Magic for Markets

Good Morning,

Argentina win the World Cup on penalties against France after one of the most dramatic finals ever, Elon Musk is asking users to vote on whether he should step down as head of Twitter amid backlash against recent policy changes, Ukraine are watchful of borders as Putin heads to Belarus and China reports just two Covid deaths since easing rules, defying the experience of other countries.

Let's jump in.

Before The Bell

Markets

• The unexpected growth in economic output over the September quarter in NZ has allayed fears of a hard landing next year, according to Devon Funds head of retail Greg Smith. (NBR)

• ANZ has downgraded its Australian GDP forecast to 1.5 per cent year-on-year by the end of 2023, from 1.8 per cent previously. (AFR)

• Tesla share prices surged almost 5% after a Twitter users' poll appeared to suggest billionaire Elon Musk should step down as head of the social media site. Musk has said he will abide by the poll's result. (BBG)

• Global recession fears signal bumpy times ahead, but not for gold, says ANZ Research, which boosted its year-end forecast for the precious metal as investors seek safe-haven assets and the US dollar rally fades. (AFR)

Earnings and Data

• Grim retail sales figures for November have been revealed within Monday morning's Performance of Services Index (PSI), with an index value of 30.7 compared with 52.8 in October, further confirming a very tough festive season for retailers. (NBR)

News Summary

• Armed police swarm a West Auckland suburb after a woman's death, an estimated 2 million jubilant Argentina soccer fans flooded the streets of Buenos Aires on Monday following the nation's dramatic win in the football World Cup against France, a Thai warship has capsized in a storm in the Gulf of Thailand leaving 31 sailors missing, and Football Australia is investigating the pitch invasion which forced the Melbourne derby to be abandoned.

Deal Flow

Investments/ M&A

• Allied Farmers Limited (ALF) has announced it intends to exercise its call option to purchase the 50% of NZ Rural Land Management that it does not already own, giving it full ownership of the company. (NBR)

• NZX-listed medicinal cannabis company Cannasouth has entered into a "prospective merger arrangement" with Bay of Plenty cannabis grower Eqalis Group. Cannasouth would purchase 100% of Eqalis's shares for $48.8 million NZD via the issue of nearly 148 million shares. (NBR)

• Anchorage Capital Partners has snared upmarket department store David Jones for around $100 million from its South African owners Woolworths Holdings Ltd. It's a small fraction of what WHL paid nearly a decade ago, ending a painful period of ownership. (AFR)

• Quadrant Private Equity has bought a majority stake in healthcare distribution business Aidacare, taking a bet on the family-owned outfit's potential to expand overseas and nationally. (AFR)

VC & Fundraising

• Mount Maunganui based electric bike maker Ubco is seeking a further $15m NZD, including from retail investors, early next year. (NBR)

Equity Raises

• Listed copper explorer Cobre has returned from a trip to the equity capital markets with $5m AUD in fresh funds, including cheques from Sprott Asset Management and its two largest shareholders. (AFR)

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