Confidence in Chinese Markets Quickly Reversed

November 22, 2022

Good Morning,

Prime Minister Jacinda Ardern says Cabinet will draft a piece of legislation with a proposal to lower the voting age to 16, the UN warns as team to inspect damage caused by artillery at Europe's biggest nuclear power plant and Disney's surprise move to reinstate Bob Iger as CEO causes Disney shares to head toward their worst annual loss since the 1970s.

Let's jump in.

Before The Bell

Markets

  • Enthusiasm over recent moves by Chinese authorities to adjust the country's zero-COVID policy is giving way to renewed caution as COVID cases ticked up in Beijing, stoking a risk-off mood in stocks and currencies, while oil prices hit two-month lows. (RT)

  • Three top officials said the European Central Bank must raise interest rates high enough to dampen growth as it fights record inflation and it could soon start running down its 5 trillion euro debt pile. (RT)

  • The S&P/ASX200 erased an opening gain of 0.3 per cent on Monday, closing the session down 0.2 per cent, or 12.5 points at $7139.30 AUD. (AFR)

  • US bond yield rises cause concerns that the Federal Reserve will push through higher interest rates and plunge the world's largest economy into recession. (AFR)

  • Stocks declined in Asia amid concern that China may tighten COVID curbs after a string of reported deaths, with investors seeking shelter in the haven assets of Treasuries and the dollar. (BBG)

Earnings and Data

  • Credit card spending in New Zealand increased to $6,734 million NZD in October from $6,271 million NZD in September of 2022. (RBNZ)

News Summary

  • Borrowers warned to brace for another cost-of-living blow from the Reserve Bank of New Zealand on Wednesday. Analysts expect recent inflation data will persuade RBNZ to raise the official cash rate by 75 basis points to 4.25%. (Stuff)

  • Bankrupt crypto empire FTX owes its 50 biggest unsecured creditors more than $3 billion, new court papers show. (BBG)

  • New Twitter owner Elon Musk welcomes Kanye West back to the platform after inviting Donald Trump's return. (BBG)

  • Ecuador deal Qatar 2-0 loss in the first match of the Fifa World Cup 2022. (Stuff)

  • People at a club in the US state of Colorado have been hailed as heroes for subduing a gunman and preventing a deadly shooting from being even worse. (BBC)

Deal Flow

Investments/ M&A

  • Sydney-listed mining company BHP bumps up its August cash offer price for local rival OZ Minerals by 13 per cent to $28.25 AUD per share. (AFR)

  • A consortium led by Mark Stewart has made an offer to acquire Nelson-based fish oil refinery SeaDragon. (NBR)

  • A thawing of Australia-China relations could spur heightened merger and acquisition interest from Beijing, the new chairman of the Australian Foreign Investment Review Board says. (AFR)

  • US infrastructure investor Stonepeak has swooped in to take GeelongPort, the second largest port in Victoria, in a joint bid worth $1.1 billion AUD with Australia's Spirit Super. (AFR)

VC & Fundraising

  • Businessman, angel investor, and government adviser Rob Fyfe says he is pouring half his life's savings into a new company, Recorp, set up to manufacture aluminium beverage cans. The company's mission is to eliminate single-use plastic bottles from the New Zealand marketplace by the end of the decade.(NBR)

Equity Raises

  • Auckland-based medicinal cannabis firm Organic Genetics has finally secured early-stage investment, after raising $5 million NZD from local private investor, GCO Pharmaceuticals. (NBR)

  • App-owner Life360 is seeking an equity top-up via stockbrokers Bell Potter and MST. The company and its brokers have started rustling up buyers for what's expected to be a $50 million AUD institutional placement at $6.30 a share. (AFR)

  • Christchurch based outdoors and hunting company Bushbuck is undertaking crowdfunding to go toward growth and overseas expansion. (NBR)

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