3 Dead In Fatal Auckland CBD Shooting

July 21, 2023

Good Morning,

Two people were killed and the gunman – named as 24-year-old Matu Tangi Matua Reid – also died following the shooting at the One Queen Street construction site around 7.30 yesterday morning, the Government could resume research into the pros and cons of breaking up Countdown and Foodstuffs, and streaming giant Netflix has announced its decision to end password sharing in India - a country in which it has millions of subscribers.

Let's jump in.

Before The Bell

Markets

  • Trading was mixed on the NZ sharemarket on Thursday as investors looked to the US reporting season for direction (Stuff)

  • Asian markets finished Thursday's trading on a weak note amid disappointment over weak tech earnings and anxiety ahead of an earnings report by chipmaker TSMC (RTT)

  • Britain's blue-chip index hit a fresh one-month high on Thursday as strong production numbers from Anglo American and hopes of fresh stimulus for China's slowing economy boosted mining stocks (RT)

  • The S&P 500 and Nasdaq fell on Thursday, weighed down by drops in Tesla and Netflix following their quarterly results, but the Dow was higher for a ninth straight day thanks to gains in Johnson & Johnson following a strong annual forecast (RT)

Earnings and Data

  • Michael Hill full-year profit fell as much as 11% as the jewellery chain faced more challenging economic conditions. Comparable pre-tax profit fell to between A$56 million (NZ$59m) and A$59m in the year ended July 2, from A$62.9m the previous year, the company said in a statement to the NZX on Thursday. Sales increased 6% to A$628.1m (Stuff)

  • Electrolux AB shares plunged after the Swedish home appliance maker reported an unexpected loss and said it plans to offload assets worth about $1 billion (BBG)

  • United Airlines finished Q2 2023 with an impressive pre-tax margin of 9.8%, while its H1 2023 pre-tax margin was 15.3%. Despite experiencing an operational meltdown in June 2023, United Airlines still finished the six-month period with a net income of $800 million (Q2 2023: $1.07 billion) (Aerotime)

  • Netflix stock sank more than 9% Thursday after a quarterly earnings report that was largely positive but left Wall Street underwhelmed and uncertain about key revenue drivers (CNBC)

  • Shares of Tesla (TSLA) dropped more than 5% on Thursday morning after the company's second-quarter margin came in lower than expected. Tesla's second-quarter margin came in at 18.2% as vehicle price cuts continue to weigh on the automaker. Analysts had expected a margin of 18.2% for Tesla (Yahoo)

News Summary

  • The Government could resume research into the pros and cons of breaking up Countdown and Foodstuffs if it didn’t see their profit margins come down and groceries become more affordable, Commerce Minister Duncan Webb has made clear (Stuff)

  • Two people were killed and the gunman – named as 24-year-old Matu Tangi Matua Reid – also died following the shooting at the One Queen Street construction site around 7.30 yesterday morning. Six people were injured. One Queen Street is a development by publicly listed Precinct Properties and is due to be completed by the end of this year (NBR)

  • Restaurants and retailers in the Britomart area were closed and some facing uncertainty over when they could reopen following Thursday morning’s shooting, on what they had expected to be a busy day with the opening matches of the FIFA World Cup (Stuff)

  • Commerce Commission chairperson John Small says consumers are not in a good place and he is not satisfied with the state of competition in a number of sectors in the economy (Stuff)

  • The Government has announced it will partner with Fonterra in an attempt to cut coal use in the dairy industry, and reduce agricultural emissions (Stuff)

  • Premium north Auckland golf club Gulf Harbour Country Club, owned by property developer Greg Olliver, has told members it will shut down because it “continues to lose money” (NBR)

  • A private sector competitor to the Electricity Authority-funded Powerswitch website says it would have bid for the $1.4 million a year contract if a tender had been run (NBR)

  • Chinese president Xi Jinping has given a warm welcome to former top diplomat Henry Kissinger, as the US pursues closer ties with China (BBC)

  • Streaming giant Netflix has announced its decision to end password sharing in India - a country in which it has millions of subscribers (BBC)

Deal Flow

Investments / M&A

  • Smart Urban Properties Australia, the infrastructure and utilities roll-up put together by former Vocus executive Geoff Horth, has landed a $50 million investment from superannuation funds house IFM Investors (AFR)

  • Billionaire businessman Dennis Bastas is closing in on full control of the two pharmaceuticals groups he jointly owns with Canada’s wealthy Sherman family, in what’s understood to be a $1 billion deal (AFR)

  • Pacific Equity Partners’ gun SAF team seek exclusivity on $1b deal (AFR)

  • Bain Capital has increased its offer for SoftwareOne Holding AG to as much as 3.3 billion Swiss francs ($3.8 billion), after an earlier bid was rejected by the IT services provider’s board (BBG)

  • Microsoft (MSFT.O), which is seeking to wrap up its acquisition of game-maker Activision Blizzard (ATVI.O), urged the U.S. Federal Trade Commission to withdraw a case against the deal that the agency had brought before an internal FTC judge, according to a motion posted to the FTC's website on Wednesday (RT)

VC & Fundraising

  • Jive Investments, Brazil’s largest distressed-asset manager, is planning to raise as much as 5 billion reais ($1 billion) this year for a fund to capitalize on opportunities created by a booming number of struggling companies (BBG)

Equity Raises

  • Redundancies are on the cards at the Brisbane headquarters of Bain Capital’s big IPO candidate Virgin Australia. The airline is preparing to haul in its general managers and issue an exit target for their respective business lines. Managers will be given several weeks to generate a plan (AFR)

  • Nickel-cobalt and gold explorer Aston Minerals is seeking to restock its funding warchest with a $7 million placement via Evolution Capital on Thursday (AFR)

  • Dubai’s Roads & Transport Authority has invited banks to pitch for roles on the planned initial public offerings of its taxis and parking businesses, according to people familiar with the matter (BBG)

  • Alef Educastion, an Abu Dhabi-based edtech firm, is considering an initial public offering in the United Arab Emirates as the number of student enrollments surges, according to people familiar with the matter (BBG)

Debt

  • Private credit firms are extending their reach into the more than $260 billion global asset-based lending business, seizing on a pause by some traditional Wall Street banks to take on more corporate debt (BBG)

  • Mizuho Financial Group Inc. is planning to launch a debt fund targeting Japan’s startups, digging deeper into an area where the nation’s megabanks are warming up to (BBG)

Daily Picks

  • Prime Minister Chris Hipkins said he had been advised there were no national security risks related to the shootings at a construction site in Auckland’s CBD this morning, and it was not motivated by ideological or political factors (NBR)

  • North Korea is not responding to attempts to negotiate the release of a US soldier who fled over its heavily-armed border, Washington says (BBC)

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