Central Banks on a Joint Hiking Adventure 🥾🏔

September 23, 2022

Good Morning,

The Fed raised rates by 75 basis points, the Bank of England, Swiss Central Bank, Norwegian Central Bank and the Hong Kong Market Authority all followed the Fed and raised rates, New Zealand had a trade deficit of $2.4B, New Zealand Consumer confidence remains weak, Optus has suffered a cyber attack, High gas prices have pushed European manufacturers to shift to the US, J Powell warns of US housing market correction & Sri Lanka's inflation hit 70.2% YOY in August.

Let's jump in.

Before The Bell

Markets

  • Markets were mixed following the Fed's 0.75% rate hike.

    • The Fed expects the terminal rate to reach 4.6% and plans to hike rates to 4.4% next year.

  • The two-year US treasury topped 4.1%, the highest level since 2007.

  • The Bank of England, the Swiss Central Bank, the Norwegian Central Bank and the Hong Kong Market Authority have all raised rates.

Earnings

  • Fonterra has reported a 3% decline in profit to $583m (NZD), whilst revenue rose 11%. They also announced the $1B (NZD) that they planned to return to shareholders might be reduced. (Stuff)

News Summary

  • The New Zealand Government has proposed a law to parliament to create a deposit guarantee scheme to protect up to $100,000 per person. (Stuff)

  • New Zealand had a trade deficit of $2.4B (NZD) in August. (Stats NZ)

  • Media firms have raised large concerns over the proposed merger of TVNZ and RNZ. (Stuff)

  • Westpac has lifted home loan rates in New Zealand. (Stuff)

  • Air New Zealand is not considering a share buyback. (NBR)

  • New Zealand Consumer confidence remains weak, but it did rise 8.9 points to 87.6 in the Westpac McDermott Miller Consumer Confidence Index. (NBR)

  • Three-quarters of southern New Zealand's wild fish contain microplastics. (Herald)

  • The All Whites have been beaten 1-0 by Australia. (Herald)

  • Optus has suffered a cyber attack which has comprised addresses, driver's licenses and passports of nearly 11m customers. (AFR)

  • Anti-Monarch protests were held across Australia on the Day of National Morning. (9 News)

  • The Bank of England has raised rates by 0.5% to 2.25%, the highest level for 14 years and warned the UK might already be in a recession. (BBC)

  • Citigroup plans to wind down UK retail bank. (RT)

  • The Swiss Central Bank raised rates by 0.75% to 0.5%. (CNBC)

  • The Norwegian Central Bank raised rates by 0.5% to 2.25% and expected small hikes ahead. (RT)

  • High gas prices have pushed European manufacturers to shift to the US. (WSJ)

  • The Fed hiked rates by 0.75% to a range of 3-3.25% and indicated it would keep hiking. (CNBC)

  • Federal Reserve Chairman Jerome Powell said the US housing market is likely headed for a correction. (RT)

  • Trump has been accused of inflating his net worth by billions in a lawsuit by the New York Attorney General. (BBC)

  • Credit Suisse is weighing up splitting its investment bank into three. (AFR)

  • The Hong Kong Market Authority lifted rates by 0.75% to 3.5%. (BBG)

  • Sri Lanka's inflation hit 70.2% YOY in August. (BBC)

  • North Korea has denied supplying weapons to Russia. (BBC)

Deal Flow

Investments/ M&A

  • Mubadala is considering investing in PE firm EQT AB's fibre network operator GlobalConnect in a deal that could value the company at more than $7B (USD). (BBG)

  • STAS, a Singaporean catering and gateway service provider, is in talks to purchase air cargo handler Worldwide Flight Handlers from PE firm Cerberus Capital Management in a deal that could be worth up to $3B (USD). (BBG)

  • French utility Suez is set to buy back its old waste management unit for $2.3B (USD) from Veolia. (BBG)

  • International Holding Co, the Abu Dhabi Royal's investment firm, has offered up to $2.15B (USD) for a 25-31.25% stake in Columbian food manufacturer Grupo Nutresa. (BBG)

  • Talos Energy, an oil and gas company, will purchase EnVen Energy, a deepwater producer based, in the US Gulf of Mexico in a $1.1B (USD) deal. (RT)

  • French billionaire Xavier Niel has acquired a 2.5% stake in British telecom Vodafone via his investment fund Atlas Investissement for $917m (USD). (BBG)

  • UK commercial property development and investment company Landsec has sold 21 Moorfields to an investment vehicle managed by Australian company Lendlease for $917m (USD). (RT)

  • Ball Corp, a packaging company, has sold its Russian business for $530m (USD) to Arnest Group, a Russian-based aerosol producer. (RT)

  • Spanish bank Sabadell is in talks with US firm Fiserv, French firm Worldline & Italian firm Nexi to sell its payment arm in a deal worth up to $394m (USD). (RT)

  • Genex Energy has locked in Skip Capital and Stonepeak Partners in a 25c a share deal making the deal on an equity value worth $346.3m (AUD) and at enterprise level worth $670m (AUD). (AFR)

  • Abu Dhabi National Oil Co is considering a bid to buy a stake or all of the commodity trading house Gunvor Group. (BBG)

  • The German Government will nationalise gas importer Sefe. (RT)

VC & Fundraising

  • C Capital plans to raise $500m to invest in crypto and PE investments. (BBG)

  • Seaglider, an electrical seaglider manufacturer, had a successful test flight of a replica prototype and is now looking to secure more funding. (NBR)

Equity Raises

  • Dubai's Salik drew $50B (USD) worth of bids for its $1B (USD) IPO. (BBG)

  • SoftBank has cut the valuation of the 2023 IPO-bound hotel booking firm Oyo to $2.7B (USD). (BBG)

  • Battery maker CALB is seeking $1.7B in its Hong Kong IPO, where it will sell 265.8m shares. (BBG)

  • China's Vanke Unit is hoping to raise $739m (USD) in its IPO on the Hong Kong market, where it is offering 116.7m shares. (BBG)

  • Firefinch, an ASX-listed African gold play, has raised $90m (AUD) and plans to raise an additional $30m via a share purchase plan. (AFR)

  • Burjeel has scaled down its IPO after Abu Dhabi'sroyal family took a 15% stake via International Holding Co. (BBG)

  • Fonterra will no longer IPO in Australian. (NBR)

  • VinFast, an electrical car maker, is set to IPO in the US in 2023. (BBG)

Debt Raises

  • Trungnam, a Vietnamese conglomerate, is planning a $500m bond sale in the next three years. (BBG)

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