• The Daily Deck
  • Posts
  • Venture capitalists in line for windfalls from Google’s $23bn Wiz deal

Venture capitalists in line for windfalls from Google’s $23bn Wiz deal

Author

Maren Ishak
July 22, 2024

Good Morning,

This week's newsletter dives into a mixed bag for stock markets, with value stocks outperforming growth and European stocks falling due to rising US-China trade tensions. We also cover earnings reports from Netflix, HelloFresh, and CrowdStrike, as well as news on Pharmac in New Zealand, Donald Trump's public appearance, and a global IT outage.

Let’s jump in!

Before The Bell

Markets

  • Stock markets had a mixed week with a shift towards small-cap and value stocks, with value outperforming growth by 4.77 percentage points, the largest divergence since March 2023 (TRP)

  • European stocks fell sharply, with the STOXX Europe 600 Index down 2.68% due to rising U.S.-China trade tensions. (TRP)

  • Japanese stocks fell, with the Nikkei 225 down 2.7% and the broader TOPIX down 1.2%, as technology stocks were hit by worries about U.S. restrictions on chip exports to China. (TRP)

Earnings & Data

  • HelloFresh falls behind My Food Bag as revenue drops 30% (NBR)

  • PwC’s China unit has lost about two-thirds of its accounting revenues from mainland-listed clients this year. (FT)

  • UK inflation holds at 2% but underlying price pressures stay strong. (Reuters)

  • Inflation dips to 3-year low, prices rise just 0.4% in 3 months. (RNZ)

  • Netflix earnings surge as hit shows attract big new audience. Earnings rose 48 per cent to US$4.88 a share on revenue of US$9.6 billion ($15.9b), beating Wall Street forecasts (Herald)

  • CrowdStrike shares tank 20% in premarket after major outage hits businesses worldwide (CNBC)

  • Swiss drugmaker Novartis raised its 2024 earnings guidance for the second time on Thursday, driven by a gain in prescriptions for drugs. Second-quarter adjusted operating income gained 17% to US$4.95 billion, beating an average analyst estimate of just over $4.6 billion (RT)

News Summary

Monday

  • Labour spent $64m on Three Waters consultants (Stuff)

  • The Star shut downs all pokies after upgrade glitch (9 News)

  • Liontown stops holding out on sending lithium to China (AFR)

Tuesday

  • Pharmac Minister David Seymour claims the drug-buying agency “burned a lot of energy” considering the Treaty of Waitangi as he directs Pharmac to refrain from doing so. (Herald)

  • Apple releases iOS 18 public beta for iPhone — Here’s what’s new and how to get it. (CNBC)

  • Donald Trump, wearing a bandage partially covering his right ear, appeared in public for the first time since surviving an assassination attempt over the weekend. (Guardian)

Wednesday

  • A car involved in a fatal crash on a busy Wellington street has been identified, with police asking the driver to come forward. (Herald).

  • Aussie cop’s horrific sight after 298 killed on flight MH17. (NCA).

  • HSBC appoints Georges Elhedery as group CEO starting Sept. 2. (CNBC).

Thursday

  • Search for owner of mysterious camera found in Milford Sound (Stuff)

  • ‘Instinctive act of bravery’: Father and twin toddlers hit by Sydney train after pram rolls onto tracks (Stuff)

  • Donald Trump is again the urgent issue for allies (AFR)

Friday

  • Global IT outage hits New Zealand banking services, flights, transport, supermarkets (Herald)

  • Australian court fines AmEx $5.3 mln over breach of credit card rules (RT)

  • Samsung Electronics and striking union to resume talks (RT)

Weekend

  • 12-year-old girl missing in Christchurch for over a week (Stuff)

  • ASX to fall as investors await magnificent seven earnings (AFR)

  • US equities drop as selling pressure persists (AFR)

Deal Flow

Investments / M&A

Australia & New Zealand

  • Farquhar’s Skip Capital will back J-Power’s $AUD 380 million takeover of Genex (AFR)

  • Mystery shrouds $NZD 56m Marsden Pt option holder (NBR)

  • AirTrunk’s pitch to the world’s heaviest hitting investors (AFR)

  • Adamantem Capital brings in investment bankers for Hellers sale (AFR)

  • Australia's Rio Tinto to pursue development of solar farm for WA iron ore ops (RT)

  • Labyrinth Resources, the Western Australian micro-cap gold miner with big-name backers, has agreed to buy the Vivien gold project in Western Australia. (AFR)

Key Global

  • Google parent in talks to buy cybersecurity startup Wiz for $USD 23 billion (RT)

  • Meta explores stake in Ray-Ban maker EssilorLuxottica. The Silicon Valley company has considered taking a small stake in the €87 billion (NZ$156.8b) Franco-Italian group, according to multiple people with knowledge of its thinking(Herald)

  • Samsung agrees to acquire British startup Oxford Semantic for AI for an undisclosed amount (RT)

Other Global

  • Mubadala, QIA Lead $600 Million Investment in Trailer Lessor TEN (BBG)

  • Airbus, Thales looking at merging some of their space activities (RT)

  • Temasek’s Unit to Buy Stake in Private Credit Fund ADM Capital (BBG)

  • Elmo’s US owner tests buyer appetite, two years on from $486m buy. (AFR)

  • Financial leverage at Europe’s biggest companies is expected to ease this year to the lowest since 2008 and the global financial crisis, potentially allowing for more dividends, buybacks and M&A. (BBG).

VC & Fundraising

  • Venture capitalists in line for windfalls from Google’s $23bn Wiz deal. (FT)

Key Global

  • Saudi Wealth Fund Picks JPMorgan, Morgan Stanley for Nupco IPO (BBG)

  • Temperature-controlled storage and logistics giant Lineage Inc. is seeking to raise as much as $3.85 billion in its initial public offering, according to a person with knowledge of the matter. (BBG)

Other Global

  • Fraud-fighter VigilantPay gears up for capital raise (NBR)

  • Philippine casino operator Hann intends to raise about $200 million in an initial public offering, according to people with knowledge of the matter, which would make it the country’s biggest listing this year. (BBG)

  • Swedish payments fintech Klarna is lining up financial advisers for a long-awaited initial public offering in the US that will be among the most Canadian National Bank to Raise More Equity for CWB Deal After Shares Recover. (BBG).

  • ZIP announces $267 million capital raise to repay debt. (CP).anticipated listings in recent years. (FT).

Debt, Restructuring & Bankruptcy

  • Huge debt piles among the world's biggest economies are starting to unnerve financial markets again, as elections cloud the fiscal outlook. (Reuters).

The Daily Deck is sponsored by Industrial Equity, LLC

Reply

or to participate.