Kiwi Dies Fighting in Ukraine

Good Morning,

Kane Te Tai, a Kiwi soldier fighting on the front line in Ukraine, This year is shaping out to be the worst since 2006 for investment banks involved in Australian deals, Block Inc. shares tumbled after Hindenburg Research said it’s betting on a decline in the stock, and U.S. lawmakers at a congressional hearing on Thursday accused TikTok of serving harmful content.

Let's jump in.

Before The Bell

Markets

• Wall Street's main indexes climbed on Thursday as major rate-sensitive technology and growth stocks advanced after the Federal Reserve hinted it was close to pausing interest rate hikes amid turbulence in the banking sector (RT)

• European stocks may open mixed on Thursday taking cues from Asian markets following broadly negative Wall Street trading overnight, amid U.S. Federal Reserve's rate hike move that was widely expected (RTT)

• The Chinese markets ended higher, extending recent gains, with technology stocks leading the surge. The Shanghai Composite Index advanced 0.6 percent to 3,286.65, and the Shenzhen Component Index climbed 0.9 percent to settle at 11,605.29 (RTT)

• The Bank of England pushed ahead with another interest rate increase despite turmoil in the banking sector, predicting the UK economy will avoid a recession for now and that inflation remains a risk (BBG)

Earnings and Data

• New Zealand’s currency could face further downward pressure, especially if a global recession eventuates, with declines being noted this week as investors watch the Fed and banking sector closely; The NZD fell to below 62 US cents this week, while also nudging below 93 Australian cents (NBR)

• The US Federal Reserve increased the benchmark overnight lending rate by 25 basis points, or 0.25 percentage points, this morning, meeting most expectations of a smaller raise. The move raises the Fed’s target range to 4.75%-5% – the highest level since 2007 (NBR)

• Westland Milk Products has posted record sales and increased its profit by $120 million in 2022. In a statement released on Thursday, the company said its revenue in the 12 months to December 31 increased by 27% to $1.04 billion (Stuff)

• The Warehouse Group stock took a nasty fall, plummeting about 13.5% on Thursday as shareholders responded to a set of disappointing results and uncertain outlook. A record first-half group sales haul, up 4.8% to $1.8 billion, was overshadowed by a 60.9% net profit drop, which fell to $17.4 million from $44.4m the same time the previous year (NBR)

• Initial filings for US jobless benefits fell by 1,000 to 191,000 in the week ended March 18, Labor Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for 197,000 applications (BBG)

News Summary

• The Government’s electric vehicle charging proposal has been labelled rushed and uncosted by Opposition, while newer petrol vehicles have been flagged as another option to help reduce the country’s emissions (NBR)

• Reserve Bank chief economist Paul Conway says Kiwis are poorer since the pandemic and the country risks a deeper recession if businesses and workers try to keep up with increasing costs (Stuff)

• Queenstown ratepayers are facing more leaky homes claims but none as large as those behind a proposed average 13.6% rate rise this year (Stuff)

• Kane Te Tai, a Kiwi soldier fighting on the front line in Ukraine, has died, the Ministry of Foreign Affairs and Trade (Mfat) has confirmed (Stuff)

• FMA boss asks insurers to welcome complaints as claims hit $890m (NBR)

• When an unnamed questioner at Eroad’s investor briefing earlier this week asked chair Graham Stuart whether the company would potentially sell and exit its North American business, Stuart had to dial back an earlier statement in which he said that all options were on the table for its strategy in that region (NBR)

• After a brush with disaster in the collapse of Silicon Valley Bank, the co-founder of Australian design software giant Canva has thrown his backing – and his money – behind Australia’s banking system, saying the bulk of the company’s $750 million war chest will remain onshore to avoid “wobbles” in the US financial system (AFR)

• Rio Tinto says the personal data of some past and present Australian staff may have been stolen as part of a criminal cyberattack of a supplier to the mining giant (AFR)

• This year is shaping out to be the worst since 2006 for investment banks involved in Australian deals, as they wrestle big drops in activity across M&A advisory, equity capital markets and (last year’s knight in shining armour) debt capital markets (AFR)

• New Zealand is reviewing its Emissions Trading Scheme to assess whether changes are needed to encourage businesses to accelerate a transition away from fossil fuels and not rely solely on carbon credits from forestry (AFR)

• American households will sell $750 billion of stocks this year in the first annual drop in demand since 2018, thanks to higher bond yields and lower savings, Goldman Sachs Group Inc. strategists say (BBG)

• US Senator Elizabeth Warren increased pressure on regulators to scrutinize CVS Health Corp.’s $9.5 billion deal to buy Oak Street Health Inc., as part of a broad critique of vertical consolidation in the industry that she says could increase costs and reduce quality (BBG)

Deal Flow

Investments / M&A

• Tokyo-based company Toshiba Corp.'s board approved on Thursday a bid of about 2 trillion yen ($15.3 billion) from a group led by domestic private equity firm Japan Industrial Partners Inc., or 4,620 yen per share, it said in a statement. The offer is at about a 9.7% premium to Toshiba’s closing price on Thursday (BBG)

• Tasman’s blue economy cluster has caught a half-a-million-dollar cash injection from the Government (Stuff)

• Regional Development Minister Kiri Allan announced a $2.9 million loan to help Scapegrace Distillery expand to help meet growing national and international demand. The government will also underwrite $4.5m of the Silverlight Studios’ film studio project (Stuff)

• A new company led by former publishing executive John Sandford is working on an offer to buy Turoa skifield from administrators for Ruapehu Alpine Lifts, which collapsed last October (NBR)

• Origin Energy is mulling developing an offshore wind project in the NSW Hunter region, as heavyweights that previously eyed developments in Victoria begin to look east (AFR)

• The air raid sirens should be ringing (again) at long-time takeover target Estia Health, with the group rocketing back into favour on seemingly little news in recent days (AFR)

• InvoCare’s pretty obvious decision to play slow in response to TPG Capital’s raid and indicative bid has given us plenty of time to think about what usually happens when a private equity suitor lands on a listed company’s doorstep (AFR)

• AMP Bank began taking indications of interest in a $500 million RMBS deal at 7:30pm on Thursday after Firstmac covered a transaction earlier in the day, in the first batch of securitisation deals to brew after the events between Silicon Valley Bank and Credit Suisse (AFR)

• Block Inc. shares tumbled after Hindenburg Research said it’s betting on a decline in the stock, alleging the payments company led by Jack Dorsey facilitated fraudsters who took advantage of government stimulus programs during the pandemic (BBG)

• Michael Jordan considering sale of Hornets; no deal imminent (BBG)

• Jumia Technologies AG made a deal to sell French retailer Leroy Merlin’s products in West Africa, part of a plan to expand its reach and cut losses in half by the end of 2023 (BBG)

• Finnish entrepreneur Thomas Zilliacus emerged as a surprise bidder for Manchester United Plc Thursday, saying he would give the team’s fans an equal say on all issues that relate to the football decisions at the club (BBG)

• Neptune Energy Pushes On With $5 Billion Sale as Eni Cools (BBG)

• Tata Group is considering injecting another $2 billion of fresh capital into its super app venture as the salt-to-software conglomerate seeks to bolster its digital business, according to people familiar with the matter (BBG)

• The family office linked to Nintendo Co Ltd.’s founder says it has a good chance in its battle for control of a 93-year-old Japanese construction company (BBG)

• Czech investor Daniel Kretinsky has further increased his stake in French retailer Fnac Darty (FNAC.PA) and is now its largest shareholder with a 25.03% stake, the AMF stock market watchdog said on Wednesday (RT)

VC & Fundraising

• Deep tech investor Outset Ventures is trying to raise between $30 million to $50m for its second fund which will cover the gamut from pre-seed to Series B investment (NBR)

• Minerals explorer Ora Banda Mining ia chasing fresh funds to develop its Riverina Underground mine, with a $30 million deal underway via stockbroker Euroz Hartleys (AFR)

• BlackRock Inc. and KKR & Co. are exploring bringing in new backers for their investment in Abu Dhabi National Oil Co.’s oil pipeline network, people with knowledge of the matter said (BBG)

• Billionaire Richard Branson's cash-strapped Virgin Orbit Holdings Inc (VORB.O) is nearing a deal for a $200-million investment from Texas-based venture capital investor Matthew Brown via a private share placement, according to a term sheet seen by Reuters (RT)

Equity Raises

• Newly elevated Weebit Nano’s has had a rude introduction to the ASX’s top grade, smashed by short sellers on the eve of its biggest ever equity raising (AFR)

• Electric bus company TrueGreen, which dazzled investors with its pre-IPO pitch of $1 billion revenue by FY25 just two years ago, has gone to investors for a shot in the arm while also trying to resurrect its parked IPO (AFR)

• WE Soda, the world’s largest producer of natural soda ash, is resuming preparations for a potential London initial public offering that could take place as soon as this year, people familiar with the matter said (BBG)

• SoftBank Group Corp. sees Colombian delivery app Rappi Inc. going public as soon as the end of this year or early next if global markets stabilize (BBG)

Debt

• Carvana Co. said it’s offering to exchange as much as $1 billion of bond principal at below-par prices as the struggling online car seller works to restructure its debt load (BBG)

• Apollo Global Management Inc. and Carlyle Group Inc. are zeroing in on a book of loans up for grabs now that the former parent company of Silicon Valley Bank has filed for bankruptcy (BBG)

Daily Picks

• U.S. lawmakers at a congressional hearing on Thursday accused TikTok of serving harmful content and inflicting "emotional distress" on young users, grilling the Chinese-owned app's CEO on the company's outsized influence on teens (RT)

Job Board

New Zealand

• BCG graduate roles - Apply here

• BDO graduate and intern roles - Apply here

• Bell Gully summer intern roles - Apply here

• BNZ graduate roles - Apply here

• Buddle Findlay summer clerkships - Apply here

• Chapman Tripp winter and summer clerkships and clerk roles - Apply here

• Deloitte intern roles - Apply here

• Deloitte graduate roles - Apply here

• DLA Piper insight programme,summer clerkships and clerk roles - Apply here

• Duncan Cotterill summer clerkships and grad roles - Apply here

• EY graduate and intern roles - Apply here

• Forsyth Barr associate analyst - Apply here

• Forsyth Barr associate analyst (global equities) - Apply here

• Grant Thornton graduate roles - Apply here

• KPMG graduate and intern roles - Apply here

• PWC graduate and intern roles - Apply here

• Russell McVeagh summer clerkships - Apply here

• Russell McVeagh clerks - Apply here

Australia

• Citadel Securities graduate and intern roles - Apply here

• Goldman Sachs Investment Banking Intern - Apply here

• IMC graduate and intern roles - Apply here

• Jarden

  • Women in banking scholarship - Apply here

  • Winter internships - Apply here

  • Graduate role - Apply here

  • Summer internships - Apply here

• Macquarie graduate roles - Apply here

• Optiver

  • Graduate role - Apply here

  • Internships - Apply here

The Daily Deck is sponsored by Industrial Equity, LLC