UK to Become Bonus Central 💷💷

September 24, 2022

Good Morning,

UK Chancellor Kwasi Kwarteng has announced income tax cuts, stamp duty cuts and the removal of the cap on bankers' bonuses, Tesla has been ordered to recall nearly 1.1m US cars, Qantas will increase vegetarian meal options on domestic flights, Ford will restructure its supply chain, FedEx is raising its shipping rates 6.9% & Singapore's core inflation in August was a nearly a 14-year high.

Let's jump in.

Before The Bell

Markets

  • Markets were down again on the back of recession worries being raised by central banks.

Earnings

  • Accenture reported a 15% increase in revenue in Q4 to $15.4B (USD), and EPS was also up 17% for the fiscal year. They did, however, issue lower-than-expected guidance for 2023. (BW)

  • Costco topped earnings estimates and met revenue expectations for their 4th quarter results. (IBD)

  • EasyJet said its holiday units would make a pretax profit of £35m for the year-end September. (RT)

  • FedEx fell short of both revenue and earnings expectations. They also announced price hikes and cost-cutting efforts. (CNBC)

  • Manchester United announced a net loss of £115.5m for the 2021-22 season even though revenue rose by 18%. (BBC)

News Summary

  • Property developer Chris Meehan has lost a $14m extortion claim against Arrowtown neighbours. (Stuff)

  • Grant Robertson announced a $19m package to boost sports venues before next year's Fifa Women's World Cup. (Stuff)

  • New Zealand PM Jacinda Ardern has said she would make an anti-nuclear plea to world leaders. (Stuff)

  • A new wine Bill in New Zealand would allow small wineries to charge for tastings without on-license chargers if passed. (Stuff)

  • The New Zealand Commerce Commission has approved the merger of Tourism Holdings and Apollo. (Herald)

  • Qantas will increase vegetarian meal options on domestic flights after backlash. (9 News)

  • Barrenjoey has predicted a short and shallow Australian recession is probable. (AFR)

  • Australian consumer spending remains strong, up 25% YOY and up 27.4% to pre-pandemic levels. (AFR)

  • The UK Chancellor Kwasi Kwarteng has announced income tax cuts, stamp duty cuts and the removal of the cap on bankers' bonuses. (BBC)

  • A cancer-killing virus trial run in the UK has shown promise in patients. (BBC)

  • Dame Hilary Mantel, the author of Wolf Hall, has died. (BBC)

  • Mercedes Benz has recalled more than 100,000 C-class models. (RT)

  • Boeing will pay $200m (USD) in fines for misleading investors about two 737 Max crashes. (BBC)

  • Tesla has been ordered to recall nearly 1.1m US cars due to an issue with the windows. (BBC)

  • Ford will restructure its supply chain following $1B (USD) in unexpected costs in quarter three. (CNBC)

  • FedEx is raising its shipping rates by 6.9%. (WSJ)

  • China has a $501B (USD) fund to bail out its property market if required, according to CSLA. (BBG)

  • The Hong Kong Government has announced from Monday, there will be no more hotel quarantine on arrival. (BBC)

  • Singapore's core inflation was 5.1% YOY in August, a near 14-year high. (BBG)

  • Japan will open its door to foreign tourists on the 11th of October after more than two years of closed borders. (BBC)

  • Bosses think workers do less work from home, according to a Microsoft survey. (BBC)

  • Goldman Sachs insiders are saying there are growing concerns about CEO David Solomon's push to build his personal brand, pointing to staff help for his DJing and the use of the firm's planes. (BI)

Deal Flow

Investments/ M&A

  • Prudential Financial is considering buying a minority stake in ABC Life at a potential $3-4B (USD) valuation. (BBG)

  • OZ Minerals has pressed start on a $1.7B (AUD) copper-nickel mine. This could see them partner with a heavyweight vehicle company which would further complicate the potential deal with BHP. (AFR)

  • Fonterra could gain $840m (NZD) from the sales of its Chile business. (Stuff)

  • Pentair is mulling the $800m (USD) sale of one of its units. (BBG)

  • Brazilian power company Equatorial Energia has agreed to buy Celg-D, a local electricity distribution company owned by Italy's Enel SpA, for $309m (USD). (RT)

  • French EV charging operator Bump has received a $180m (USD) investment from DIF Capital Partners. (TC)

  • Indian oil-to-chemical conglomerate Reliance Industrials has announced one of its units will buy a 20% stake in Caelux, a solar technology company, for $12m (USD). (RT)

  • Greece has received two binding bids for a 67% stake in its Alexandroupolis port. (RT)

  • Initial offers for RTL's 48% stake in French TV channel M6 are expected today. (RT)

  • South African Billionaire Johann Rupert's investment vehicle Remgro plans to sell its 25% stake in the local unit of TotalEnergies. (BBG)

  • Octopus Energy Generation, a renewable energy investor, will increase its stake to 23.25% in Britain's Lincs Offshore Wind Farm. (RT)

  • Link's Dye and Durham's deal is off. (AFR)

  • Cano Health, a senior health care operator, has received buyout interest from Humana and CVS Health Corp. (RT)

  • Aveva's investors plan to reject Schneider's takeover offer. (RT)

  • Bachoco's buyout deal is stuck whilst it waits for regulatory approval. (BBG)

  • Credit Suisse is weighing up the sale of its Latin American, excluding Brazil's wealth business. (BBG)

VC & Fundraising

  • Apax Partners have raised $10B (USD) of its $13.3B (USD) target for a new buyout fund. (BBG)

  • FTX, a crypto conglomerate, is in talks to raise $1B (USD) at $32B (USD) valuation. (CNBC)

  • Berlin's Visionaries Club, a VC firm, has raised €400m in fresh capital for B2B investments. (TC)

  • Abel Odor, a New Zealand natural perfume company, has raised $2.2m (NZD). (NBR)

  • Pillar Performance, an Australian sports supplement business, has raised $2m (AUD). (AFR)

Equity Raises

  • Metals Acquisition Corp will list on the ASX and has tapped up Canaccord Genuity and Barrenjoey as lead managers. (AFR)

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