UBS Acquires Credit Suisse

Author

Euan Marshall
March 21, 2023

Good Morning,

Gold rose above $2,000 USD an ounce for the first time in over a year, UBS Group will pay 3 billion Swiss francs for 167-year-old Credit Suisse Group, Kim Jong Un has overseen drills simulating a nuclear counterattack against the U.S. and South Korea and a flood warning has been issued for Dunedin as a wintry blast rolls in.

Let's jump in.

Before The Bell

Markets

  • Both the NZX and ASX were down 1.4 per cent on the day, while Bitcoin rose 1.3 per cent in the midst of global market turmoil intensified by the collapse of Credit Suisse

  • Bitcoin's near 70 per cent surge in 2023 has thumped the returns on gold, equities and US Treasuries that currently yield less than the Fed's cash rate across the curve (AFR)

  • Australian shares dropped to their lowest in more than four months as a rescue deal for Credit Suisse and efforts by central banks to restore confidence failed to soothe investors' concerns about contagion and a recession (AFR)

  • The recent collapse of a handful of US banks has sent a tremor through the global financial system, giving investors plenty to think about as they await the outcome of the Federal Reserve's interest rate meeting this week (NBR)

  • Banking stocks tumbled on Monday as initial relief over a historic state-backed rescue of troubled lender Credit Suisse by Swiss rival UBS Group gave way to new worries about the risks of high-yield debt issued by big banks (RT)

  • Morgan Stanley's Michael Wilson said the stress in the banking system marks what's likely to be a painful and "vicious" start of an end to the bear market in US stocks (BBG)

News Summary

  • Gold rose above $2,000 USD an ounce for the first time in more than a year after banking crises in the US and Europe triggered a return to haven buying (BBG)

  • Some of the world's leading makers of flu vaccines say they could make hundreds of millions of bird flu shots for humans within months if a new strain of avian influenza ever jumps across the species divide (RT)

  • Prime Minister Chris Hipkins says 91% of the 1346 kilometres of state highways damaged by Cyclone Gabrielle have now been reopened as lifeline roads (NBR)

  • Goldman Sachs traders were preparing to take bids on claims against Credit Suisse Group's riskiest bonds after the takeover of the Swiss lender wiped out about 16 billion Swiss francs of the debt (AFR)

  • The Federal Reserve will keep raising its benchmark policy rate, holding it above 5.5 per cent for the rest of the year, despite turmoil across the US banking sector (AFR)

  • North Korean leader Kim Jong Un has overseen drills simulating a nuclear counterattack against the U.S. and South Korea in a warning to the allies who are scaling up their joint military exercises (RT)

  • Sandbags are being handed out in Dunedin amid flood warnings as Aotearoa braces for a cold, wet blast (Stuff)

Deal Flow

Investments / M&A

  • UBS has acquired Credit Suisse for $4.5B (AUD) (AFR)

  • Private equity-backed Australian Clinical Labs is trying to pull off a dream domestic consolidation deal, combining the No.2 and No.3 pathology market players to topple heavyweight Sonic Healthcare (AFR)

  • Ochre Healthcare is trying to find a bidder to take a controlling stake (AFR)

  • China Molybdenum is considering an exit from Northparkes mine in NSW (AFR)

Equity Raises

  • ASX-listed brewer and distiller Mighty Craft has launched a $7.7 million equity raising via Morgans, as its crown jewel Better Beer looks for $20 million of its own via Jarden (AFR)

  • ASX-listed Tanzanian graphite minnow Evolution Energy Minerals has dusted off its definitive feasibility study update and wasted no time asking for face-time with fund managers, who reckon a raising couldn't be far (AFR)

Daily Picks

  • AFR reports on the story of Kristy Chong, a woman who has made more than $140m selling underwear, and is now investing back into women with ambitions in business. Check it out here

  • Check out Bloomberg's rundown on the impact of scandal and mistrust on the collapse of Credit Suisse here

Job Board

New Zealand

  • ANZ graduate roles - Apply here

  • BCG graduate roles - Apply here

  • BDO graduate and intern roles - Apply here

  • Bell Gully summer intern roles - Apply here

  • BNZ graduate roles - Apply here

  • Buddle Findlay summer clerkships - Apply here

  • Chapman Tripp winter and summer clerkships and clerk roles - Apply here

  • Deloitte intern roles - Apply here

  • Deloitte graduate roles - Apply here

  • DLA Piper insight programme,summer clerkships and clerk roles - Apply here

  • Duncan Cotterill summer clerkships and grad roles - Apply here

  • EY graduate and intern roles - Apply here

  • Forsyth Barr associate analyst (Wellington) - Apply here

  • Forsyth Barr associate analyst global equities (Wellington) - Apply here

  • Grant Thornton graduate roles - Apply here

  • KPMG graduate and intern roles - Apply here

  • PWC graduate and intern roles - Apply here

  • Russel McVeagh summer clerkships - Apply here

  • Russel McVeagh clerks - 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

    • Women in banking scholarship - Apply here

    • Winter internships - Apply here

    • Graduate role - Apply here

    • Summer internships - Apply here

  • Macquarie graduate roles - Apply here

  • Optiver

    • Graduate role - Apply here

    • Internships - Apply here

The Daily Deck is sponsored by Industrial Equity, LLC

Reply

or to participate.