Central Banks Start Swinging at Inflation 🥊

September 22, 2022

Good Morning,

350,000+ Aucklanders will receive $303, Grant Robertson is still committed to creating a state income insurance scheme before the next election, Santos has been blocked from drilling on its $5.4B (AUD) Barossa Gas Field, the Reserve Bank of Australia took a $44.9B (AUD) hit on bonds during the pandemic, Link Market services have been hit with an extra $85m (AUD) fine, Putin has called up military reservists to fight in Ukraine & the Swedish central bank has raised rates by 100 basis points.

All eyes are on the Fed rate announcement, due at 6:00 am NZST. How big of a swing will they take at inflation? 🥊

Let's jump in.

Before The Bell

Markets

  • All the markets were down as attention shifted to the Fed's rate decision.

  • The Australian markets will be shut today as there is a public holiday to mourn the Queen's death.

Earnings

  • Air New Zealand expects to return to profit in the first half of the year. It announced it expected a profit between $200m - $275m (NZD) for the six months to December 31st. This sent the stock price up 8.1% (Stuff)

News Summary

  • An Auckland Lotto player has won $23m (NZD). (Stuff)

  • A fortune 350,000+ Aucklanders will receive $303 (NZD) from the Entrust Dividend. (Stuff)

  • Insurers in New Zealand have been made to pay more than $43m (NZD) to customers for bad behaviour over the last four years. (Stuff)

  • The IRD paid the cost of living payments to 49,300 people who only reported investment income in New Zealand. They also made payments to another 6629 people who had listed foreign mailing addresses. (Stuff)

  • Grant Robertson is still committed to passing legislation to create a state income insurance scheme before the next election. (Herald)

  • Dawn Aerospace's spaceplane is ready for rock-powered test flights after passing phase one. (NBR)

  • Santos has been blocked from drilling on its $5.4B (AUD) Barossa Gas Field after a federal court in Australia ruled they had failed to consult with the local Indigenous community. (AFR)

  • The AFL will appoint a panel to investigate allegations of racism at Hawthorn. (Fox)

  • Pfizer has been given provisional approval for its COVID-19 booster for kids in Australia. (9 News)

  • The Reserve Bank of Australia took a $44.9B (AUD) hit on bonds during the pandemic. (BBC)

  • Link Market services have been hit with an extra $85m (AUD) fine over the UK Woodford collapse by the British regulators. It has put their deal with Dye & Durham further into question. (AFR)

  • Gap will cut 500 office jobs as sales sink. (BBC)

  • Russian President Valdemar Putin has called up military reservists to fight in Ukraine. (BBC)

  • Canadian inflation eased in August down to 7% YOY despite the fastest food price rise in 41 years. (RT)

  • US VC firms are sitting on $290B (USD), which is about to revive startup investing. (TI)

  • McDonald's has been ordered to defend against Byron Allen's $10B (USD) lawsuit. (RT)

  • The Swedish central bank has raised rates by 100 basis points as it said inflation was too high. (CNBC)

Deal Flow

Investments/ M&A

  • French company Schneider Electrical will purchase UK software company Aveva for £31 per share, making the deal worth ~£9.48B. (RT)

  • The German Government will nationalise gas giant Uniper by taking a 98.5% stake in a deal worth €8.5B. (BBC)

  • PE firm Genstar Capital is considering strategic options for software maker Prometheus. One option is a sale at a valuation of ~$6B (USD). (BBG)

  • First Sentier is planning the sale of French district heating operator Coriance for $1.5B (USD). (BBG)

  • Walgreens announced it would buy the remaining stake in speciality pharmacy company Shields Health Solutions for $1.37B (USD). (RT)

  • UK supermarket chain Sainsbury's is in talks to sell 18 stores to property investor LXi REIT for an ~$568m (USD). (RT)

  • An arm of Macquarie Group is nearing an ~$400m (USD) deal for a portfolio of ~1,350 phone towers owned by Philippine provider Global Telecom. (BBG)

  • Blackrock will sell Butlins Holiday Camps back to the former owner, the Harris Family, for ~$343m (USD). (BBG)

  • Viva Energy, an Australian fuel company, will buy the Coles Express fuel network in a $300m (AUD) deal. (AFR)

  • The two rival bidding groups have joined in their bid for Australia Pacific Capital. (AFR)

VC and Fundraising 

  • Property start-up Brickfloor is looking to raise $5m (AUD). (AFR)

Equity Raises

  • The $9.4B (USD) Porsche IPO was covered within hours, and there is excess demand. (BBG)

  • Indian drone maker IdeaForge is seeking to raise $125m (USD) in an IPO at a $900m (USD) valuation in 2023. (BBG)

  • ASX-listed African gold play Firefinch launched a $90m (AUD) equity raise at a 70% discount. (AFR)

Debt Raises

  • Wall Street Banks are set to lose ~$600m (USD) on Citrix Debt. (BBG)

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