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Volkswagen Bets $1 Billion on China's Electric Car Market 🚘

April 22, 2023

Good Morning,

NZ Customs seize 50kg of cocaine from ship in Tauranga, UK Deputy PM Dominic Raab quits after investigation into staff bullying complaints, Tesla hikes US prices days after sixth price cut this year, Rainy March dampens shopper spending in Britain, and Volkswagen takes on China’s EV market with a higher-end car and $1 billion investment.

Let's jump in.

Before The Bell

Markets

  • Markets were mostly down over the past day. The NZX 50 gained +0.4%, to 11,927.50, the ASX 200 decreased +0.5% to 7,330.40, the S&P 500 dropped -0.6% to 4,129.79 and the Nasdaq lost -0.8. All treasury bond yields decreased.

  • European stocks and US futures struggled for direction amid mixed corporate earnings and as traders parsed the latest data for clues on the outlook for inflation and economic growth (BBG)

Earnings and Data

  • Credit Suisse will bring forward its first-quarter earnings by three days to April 24, it said on Tuesday, a move that could allow UBS to speak more freely at its earnings the following day (RT)

News Summary

  • NZ customs has seized about 50kg of cocaine found hidden in a ship that docked in Tauranga this morning (1 News)

  • Men’s netball is a sport on the rise in New Zealand and there’s no shortage of talented players who are now getting more opportunities to display their skills (1 News)

  • Ohakune restaurants broke despite $287k Covid cash: IRD, staff, bank want $500k+ (Herald)

  • US Fund Repertoire Partners increases stake in NZME to become major shareholder (Herald)

  • Chiefs leave it late to overcome Fijian Drua for eighth successive win in Super Rugby Pacific (Stuff)

  • UK Deputy PM Dominic Raab quits after investigation into staff bullying complaints (Stuff)

  • Mark Speakman elected as new leader of NSW Liberal Party (9 News)

  • A Victorian construction company has announced it has gone into administration, just weeks after building giant Porter Davis collapsed (9 News)

  • Tesla Inc raised the U.S. prices for its Model S and X premium electric vehicles, according to its website on Thursday, although they are still 20% lower than the start of the year after a slew of price cuts to drum up demand (RT)

  • Chief Executive Jim Farley said that facing a booming and hyper-competitive market for electric vehicles (EVs) in China, Ford Motor Co needs to reshape its brand for the world's largest car market (RT)

  • British retail sales fell by a greater-than-expected 0.9% in March from February, official figures showed on Friday, with bad weather and high inflation combining to keep consumers away from the shops (RT)

  • UBS Global Wealth Management has turned bullish on the Japanese yen, wagering that the central bank will consider adjusting its ultra-loose monetary policy stance in the coming months (RT)

  • Elon Musk’s Wealth Plunges $13 Billion as Drama Unfolds Across Empire (BBG)

  • Economists and policymakers were fretting about a wage-price spiral. Not any more (CNBC)

  • Volkswagen takes on China’s EV market with a higher-end car and $1 billion investment USD (CNBC)

Deal Flow

Investments / M&A

  • Saudi Telecom Co. agreed to buy a portfolio of tower assets from United Group for €1.22 billion ($1.3 billion USD) as the carrier expands in Europe (BBG)

  • Brookfield Asset Management Ltd. has submitted a £2.1 billion ($2.6 billion) takeover proposal for Middle Eastern credit card processor Network International Holdings Plc, topping a rival buyout consortium (BBG)

  • Agricultural and construction machine maker CNH Industrial on Wednesday ceased its operations in Russia and said it sold its business in the region for about $60 million USD (RT)

Equity Raises

  • Singapore-based startup Higgz Academia Technology Pte is in discussions with potential investors to lift its $100 million valuation in a fresh funding round and capitalise on OpenAI’s ChatGPT phenomenon (BBG)

  • Rakuten Bank Ltd. surged 38% in its debut in Tokyo on Friday following Japan’s largest initial public offering since 2018 (BBG)

  • The raucous debut for China-based U Power Ltd. sent shares soaring 620% and triggered a bevy of halts for volatility as investors flip shares of the newest company to list in the US (BBG)

  • Chinese liquor company ZJLD Group Inc. raised HK$5.3 billion ($675 million USD) in Hong Kong’s largest initial public offering this year, after pricing shares near the bottom of a marketed range, according to people familiar with the matter (BBG)

Daily Picks

  • People said her business idea wouldn’t work — but it’s now a blooming beauty empire (CNBC)

  • Dreams of Replacing Humans in Finance May Come True (BBG)

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

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  • Macquarie graduate roles - Apply here

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    • Internships - Apply here

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