British Politics the New Reality TV Show

Good Morning,

The devaluation of the Australian dollar is likely to worsen, New Zealand CPI came in at 7.2% YOY, the chance of a US recession in the next 12 months is 100%, UK inflation has risen to 10.1% YOY, VC investment has dropped to $87B in Q3, Liz Truss has resigned as the UK PM, Jarden confirmed the split of its wealth and investment banking arms, there was a record winter spend in Queenstown, Rishi Sunak has confirmed his Tory leadership bid and is leading the way over Boris Johnson and Penny Mordaunt & Xi Jinping has announced his third term as China's leader.

Let's jump in.

Before The Bell

Markets

• It was a mixed week for the markets. However, US markets finished in the green after bets that rate rises will slow following comments from Mary Daly the Federal Reserve Bank of San Francisco President. (AFR)

Earnings

• Auckland Airport has lifted its profit guidance due to a stronger-than-expected rebound in travel. (Stuff)

• Goldman Sachs beat Q3 profit and revenue expectations. Their shares jumped 2.33% on Tuesday. (CNBC)

• Blackstone beat Q3 earnings estimates; however, it reported a 16% YoY drop on the same metric amid a sharp drop in asset prices. It also marked down the value of its investment portfolio, causing its stock to fall ~4.5% yesterday. (RT)

• IBM beat profit and revenue estimates. It also raised its FY revenue growth forecast as revenue grew 6.5% YoY; its stock jumped 4.4% in AH trading (CNBC)

• Mainfreight shares rallied 3.05% after a 66% increase in first-half profits and a 33% increase in revenue. (Stuff)

• Nasdaq reported strong Q3 EPS and revenue. After a 6% YoY increase in net revenues. It also relayed confidence in their positions amidst rising rates. However, their stock fell ~2.5% yesterday. (Nasdaq)

• Netflix smashed Q3 profit and revenue expectations as it added 2.41M subscribers (on 1.09M expected) and relayed high optimism about its new advertising business; its shares jumped over 14% immediately after the report. (CNBC)

• Procter & Gamble beat EPS and revenue estimates as higher pricing helped offset lower sales volume and currency headwinds. However, the company lowered guidance and expects a $1.3B FY blowout due to the rising US dollar; their stock rose 0.8% yesterday. (CNBC)

• Snap Inc. shares plummeted 25%+ AH after reporting weaker-than-expected Q3 revenue numbers. It also announced plans to cut 20% of staff as part of a major restructuring. (CNBC)

• Tesla beat Q3 profit but missed revenue estimates. It cited supply chain bottlenecks as why it delivered fewer vehicles than expected. Their shares fell 3.7% in immediate AH trading. (RT)

News Summary

Monday

• The devaluation of the Australian dollar is likely to worsen as the Federal Reserve increases interest rates. (AFR)

• Credit Suisse agreed to pay $495m to settle the case the New Jersey Attorney General had against them. (BBG)

• Goldman shook up its leadership ranks as the CEO unwound key changes. (BBG)

Tuesday

• New Zealand CPI came in at 7.2% YOY, a 2.2% QOQ jump. This was higher than expected. (Stuff)

• The national average asking price for houses in New Zealand has dropped for the sixth month in a row, which is a new record. (Stuff)

• The UK government has U-turned on more policies, including how long the energy cap will be in place. (BBC)

• According to Bloomberg, the chance of a US recession in the next 12 months is 100%. (BBG)

Wednesday

• Protesters glued themselves to Transmission Gully just outside Wellington this morning. (Stuff)

• A group is threatening to sell Medibank's customers' data after a cyber incident. (9 News)

• UK inflation has risen to 10.1% YOY. (BBC)

• The US could sell more oil from its emergency reserves. (RT)

Thursday

• Hundreds of Auckland homeowners could lose their properties to a proposed bus lane. (Stuff)

• Jarden Australia CEO Robbie Vanderzeil is set to move to chairman, with Sarah Rennie and Aidan Allen taking over as co-heads. (AFR)

• The Australian jobless rate stayed steady a 3.5%, but the number of people in work only increased by 900, which was well short of the expected 25,000. (AFR)

• The Bank of England will respond to the new UK fiscal plan, and rates may not rise as much as the market expects. (RT)

• Lionel Messi has launched an investment firm targeting sports and tech. (BBG)

• VC investment has dropped to $87B in Q3, the lowest level since Q4 2017. (BW)

Friday

• A national public transport ticketing system is to be introduced in New Zealand. (Herald)

• Jarden has confirmed the split of its wealth and investment banking arms. (NBR)

• The Australian government is slapping a $500m (AUD) efficiency dividend on government departments in next week's federal budget. (AFR)

• Liz Truss has resigned as the UK PM. (BBC)

• Hong Kong's consumer inflation has hit its highest level since 2015. (BBG)

Weekend

• There was a record winter spend in Queenstown. (Stuff)

• Wellington have beaten Canterbury to claim the NPC title. (Stuff)

• The Black Caps have convincingly beaten Australia in the opening game of the T20 World Cup. (Stuff)

• Australia's Treasure Jim Chalmers has revealed there is a $33B (AUD) blowout. (9 News)

• Netball Australia has lost a $15m (AUD) sponsorship from mining magnate Gina Rinehart. (9 News)

• Australia and Japan have signed a bolstered security agreement. (9 News)

• Rishi Sunak has confirmed his Tory leadership bid and is leading the way over Boris Johnson and Penny Mordaunt. (BBC)

• Masimo investor Politan has sued the company. (BBG)

• Xi Jinping has announced his third term as China's leader. (BBC)

• Dietrich Mateschitz the Red Bull co-founder and owner has died aged 78. (BBC)

Deal Flow

Investments/ M&A

• Continental Resources, a US shale oil producer, will be taken private by its founder Harold Hamm at a $27B (USD) valuation. (RT)

• Philip Morris, an NYSE-listed tobacco company, has increased its offer for Swedish Match, a smokeless tobacco company, to $15.8B (USD). Philip Morris has also acquired the rights to sell Altria Group's IQOS device in the US for $2.7B (USD). (BBG)

• Telecommunication giant AT&T is in talks with investors to create a joint venture to invest in a fibre-optic network expansion. The deal is expected to be worth between $10B & $15B (USD). (BBG)

• India is seeking a $7.7B (USD) valuation for IDBI Bank in its 60.72% stake sale in the Mumbai-listed lender. (BBG)

• PE firm EQT has completed its acquisition of PE firm Baring Private Equity Asia for $6.7B (USD). (BBG)

• Jared Kushner's family retail-estate firm Kushner Cos has made a hostile bid for its rival Veris Residential that would value the company at $4.3B (USD). (RT)

• BP will acquire US Biogas producer Archaea for $4.1B (USD). (BBG)

• Iberdrola, a Spanish renewable energy company, is interested in acquiring CWP Renewables from Partners Group. A deal could be worth $4B (AUD) +. (AFR)

• Italian insurer Generali is progressing with its talks to buy US investment firm Guggenheim Partners' asset management business. The deal could be worth up to $4B (USD). (BBG)

• Ultra-low-cost US airline Spirit Airlines has received approval from its shareholders for its $3.8B (USD) sale to low-cost American airline JetBlue Airways. (BBG)

• Canadian energy company TC Energy is considering selling assets or divesting from its keystone oil pipeline in the Gulf Coast as it attempts to raise $2.9B (USD). (BBG)

• PE firm American Securities is exploring an exit from food equipment maker CPM. A deal could value CPM at over $2.5B (USD). (BBG)

• Qatar is in talks to invest $2.5B (USD) in Egypt via the purchase of state-held stakes in Egypt's biggest mobile network operator and other companies. (BBG)

• Fosun International, a Chinese conglomerate, said it intends to sell its 60% stake in the parent company of Nanjing Iron & Steel. It is expected to bring in as much as $2.2B (USD). (BBG)

• Orix Corp, a Japanese financial services group, decided it could invest $2B (USD) in the Toshiba buyout. (RT)

• Norwegian energy company Equinox is considering buying UK oilfields from China's CNOOC in a deal worth between $1.9B-$2.9B (USD). (RT)

• Animal food manufacturing company Darling Ingredients has agreed to buy collagen products manufacturer Gelnex for $1.2B (USD). (RT)

• Investment firm Bain Capital is among the firms considering bidding for Indian polyester film-maker Polyplex Corp. The company is expected to be valued at $1B (USD) +. (BBG)

• GoTo,Indonesia's largest tech company, is in talks with its major owners, Alibaba and SoftBank, for a controlled sale of $1B (USD) of their stakes. (BBG)

• Investment firm EQT is exploring the sale of American bus operator First Transit which is expected to bring in less than $1B (USD). (BBG)

• Jewellery distributor Quality Gold will go public via a nearly $1B (USD) SPAC deal. (RT)

• Shale mogul Daniel Rice is set to receive $975m (USD) from BP for the sale of renewable gas company Archaea Energy. (BBG)

• Spanish renewable energy investor Everwood is in talks to sell its 6.1 GW solar asset portfolio. It could fetch a price of €750m. (RT)

• APA Group agrees on $773m (AUD) acquisition of Basslink. (AFR)

• British Land, a London-based real estate investment trust, is weighing the sale of three London properties, including Facebook's office, for $668m (USD). (BBG)

• Morgan Stanley's infrastructure investment arm is considering selling its 40% stake in German renewable firm PNE. It's believed to be valued at ~€560m. (RT)

• American pharmaceutical company Eli Lilly & Co will acquire Boston-based biotech company Akousos for $487m (USD) to gain their experience in developing gene therapies for inner-ear conditions. (BBG)

• Exxon Mobil, an oil and gas company, has sold its Montana oil refinery to oil and gas exploration and production company Par Pacific in a $310m (USD) deal. (RT)

• CPE,a PE firm, is looking to sell its Chinese hair treatment chain Zhuhai Hairology its believed to be worth between $300m & $400m (USD). (BBG)

• France's AXA and Credit Agricole are expected to submit bids by the end of the week for an insurance deal with Italy's Banco BPM. Bids are expected to be around $296m (USD). (RT)

• Brazilian meatpacker Minerva has acquired the Australian Lamb Company for ~$260m (USD). (RT)

• Russian conglomerate Sistema has bought a 47.7% stake in Melon Fashion Group for $256m (USD). (RT)

• Sequoia Financial Group,a US investment advisory group, has sold a minority stake in PE firm Valeas Capital Partners for $200m. (BBG)

• Australia's ADT security is up for sale a deal could be worth $100m (AUD) plus. (AFR)

• NZX-listed NZ Rural Land Co, a rural landowner, has acquired a 2400-ha pine forest estate in the Manawatū/Whanganui region for $63m. It will be leased for carbon farming. (NBR)

• U.S chipmaker Broadcom seeks early EU approval on a $61m (USD) deal with cloud computing company VMware. (RT)

• Nel receives a large$58.5m (USD)purchase order from Woolside.(RT)

• Renewable Energy Hub has acquired environmental commodity markets broker TFS Green APAC from Traditional Asia to create CORE Markets in a deal worth $50m + (AUD). (AFR)

• IMF-owned My Plan Manager has bought National Disability Support Partners in a deal worth ~$40m (AUD). (AFR)

• Challenger Ltd has sold its licensed Challenger Bank to New Zealand's Heartland Group for $36m (AUD). (AFR)

• Bitcoin Group SE is considering a bid for the 268-year-old German bank Bankhaus von der Heydt. A deal could be worth ~$19.6m (USD). (BBG)

• Distributor and health supplement marker Homart Pharmaceuticals is set to emerge with a $3m (AUD) stake in ASX-listed Wellnex Life. (AFR)

• Cathie Wood has been buying shares in Nurix Therapeutics,a small biopharmaceutical company. In total, her ARK Genomic Revolution ETF has purchased over 840,000 shares. (BBG)

• Australian rural supplies group Delta Ag is auctioning off a 70-80% stake in the company. (AFR)

• Amazon has been offered up to a 15% stake in Hawaiian Airlines as part of a new cargo deal. (BBG)

• Geely's Chinese billionaire owner Li Shufu is interested in increasing his stake in Aston Martin from 7.6% to 10%. (BBG)

• Activist investor Starboard Value has taken a 7.4% stake in data centre business Vertiv. (BBG)

• Elliott Investment Management, an American investment firm, has taken a stake that is less than 3% in German-based healthcare firm Fresenius SE & Co. (BBG)

• Telenor and True Corp's merger to form the largest telco in Thailand has received approval from Thailand's telecommunications regulator. (BBG)

• Bryon Trott's merchant bank, BDT & Co, will merge with Michael Dell's MSD Partners. (BBG)

• Microsoft is in advanced talks to increase its investment in OpenAI. (WSJ)

• Boost Mobile founder Peter Adderton wants to buy back the wireless service and keep current owner Dish Network Corp from merging with a blank-check company. (BBG)

• French engineering group Systra is looking to buy Australian rail companies. (AFR)

• Perth-based share-trading platform Marketech has acquired rival Opentrader's retail client book. (AFR)

• Momentive Global, the owner of SurveyMonkey, is considering selling the business after receiving interest. (BBG)

• Nestlé has acquired Seattle's Best Coffee brand from Starbucks. (WSJ)

• Link Group is looking to sell its UK unit Link Fund Solutions and has hired Macquarie Capital and UBS to run the process. (AFR)

• New Zealand winemaker Yealands Wine Group has hired Cameron Partners to court PE and other strategic buyers as its owner Marlborough Lines Ltd is considering a sale. (AFR)

• Buyout firms CDH and PAG are considering bidding for US-listed Chinese data centre company Vnet Group. (BBG)

• MTN Group, a telecommunications company, has walked from talks to buy Telkom SA SOC after not receiving assurances that talks were exclusive. (BBG)

• Lukoil is considering splitting its oil trading unit and selling an oil refinery in Italy to limit the impact of sanctions. (BBG)

• Salesforce stock has jumped 6.8% after activist investor Starboard Value has taken a stake. (BBG)

• Panmure Gordon, a British boutique investment bank controlled by Bob Diamond's PE vehicle, is in talks to acquire City of London rival finnCap Group. (BBG)

• CQS and Napier Park are among five funds preparing to rival Elliott Investment Management for struggling UK discount fashion retailer Matalan. (BBG)

• Three of Australia's top banks are considering bidding for payments firm Tyro. (RT)

• Spanish gas network operator Enagás SA may sell assets, including its stake in Tallgrass Energy LP, to fund pipeline build-out. (BBG)

• Abu Dhabi's Government has transferred ownership of Etihad Aviation Group to the Abu Dhabi sovereign wealth fund ADQ. (RT)

• BNP Paribas hired Barclays to sell its South African financial services business RSC. (BBG)

• Credit Suisse's loan portfolios are attracting interest from Mitsubishi UFJ Financial Group. (BBG)

• The American family of late billionaire Julian Robertson has sold Wairarapa's Dry River Wines to Wellington businessman Charlie Zheng. (Herald)

• SoftBank has sold its stake in struggling British online shopping platform THG to co-founder Matthew Moulding and the Qatar Investment Authority. (BBG)

• Credit Suisse has placed its US asset management arm up for sale. (RT)

• Kayne West is planning on acquiring social media site Parler. (AX)

• Credit Agricole and Santander look to secure a deal to buy RBC Investor Services' Europe unit. (RT)

• US good giant Hormel is in talks to acquire PE firm CVC Capital Partners' stake in Indonesia's top snack maker GarudaFood. (BBG)

• Banorte is no longer interested in Citi's Banamex Mexican Unit. (BBG)

• Institutional Shareholders Services are recommending shareholders of Turquoise Hill Resources reject the takeover proposed by Rio Tinto. (BBG)

VC & Fundraising

• Indian Edelweiss Wealth Management, backed by Hong-Kong based PE fund PAG, is seeking to raise $362m (USD) for a new venture debt fund. (BBG)

• India's ed-tech company Byju's raises $250m (USD) in funding following the firm's IPO being postponed. (TC)

• Ocean-climate VC Propeller has raised $100m for its new fund. (TC)

• BeReal raised $60m (USD) in a series B round earlier this year. (TC)

• Canberra-based food tech startup Nourish Ingredients has raised $45.3m (AUD). It added Hong Kong Billionaire Li Ka-Shing's Horizons Ventures, Main Sequence Ventures and Hostplus to its register. (AFR)

• Purpose Capital has led a $10m syndicate investment into Lodestone Energy, a utility-scale solar agri-voltaic company. (NBR)

• Nigerian (BaaS) platform Maplerad raises $6m (USD) in seed funding. (TC)

• Kiwi wireless electricity transmission start-up Emrod is trying to raise over $5m (AUD) in pre-series A funding. (AFR)

• Edtech company Clipboard has raised $3.1m (AUD) in a round led by Sydney-based VC firm EVP. (AFR)

Equity Raises

• Saudi Armco is pushing ahead with its IPO plans offering its energy trading business which is expected to come to fruition at the end of this year or early next year and value the unit at over $30B (USD). (BBG)

• Intel has slashed the IPO valuation of its self-driving technology company Mobileye to $16B (USD), down from ~$50B (USD). (BBG)

• Biotech firm Prime Medicine was valued at $1.8B (USD) in its NASDAQ debut. (RT)

• Australian parking garage operator Best in Parking is said to be seeking to raise between €300m and €400m via an IPO at a €1B valuation. (BBG)

• Bayanat, a geospatial and data analytics firm owned by Abu Dhabi's G42, is set to raise $171m (USD) in an IPO backed by US PE firm Silver Lake and Abu Dhabi's International Holding Co. (BBG)

• Bowen Coking Coal is seeking to raise $100m (AUD). (AFR)

• ASX-listed materials technology company Calix is seeking to raise $60m (AUD) at an 11.1% discount. (AFR)

• Care Corporation is seeking to raise $24.75m to $49.5m (AUD) via its proposed IPO, which would value the company at between $520m and $544.4m (AUD). (AFR)

• Beston Global Food Company seeks a $28m (AUD) equity injection. (AFR)

• Bell Potter files IPO documents for Richmond in the hope of raising $25m - $35m (AUD). (AFR)

• WA gold play Pantoro is seeking to raise between $25m & $30m (AUD) via a share placement at a 14.7% discount. (AFR)

• Video tech business Atomos is raising $18m (AUD) at a 33.3% discount. (AFR)

• Radiopharm is seeking to raise $10m (AUD) via a rights issue. (AFR)

• Frontier Energy asked investors' to chip in $9m (AUD) to fund a hydrogen project in Western Australia. (AFR)

• RV booking business Camplify launched a $8.5m raise (AUD). (AFR)

• Northern Territory resource company DeSoto Resources was asking for $8-$12m (AUD) to list on the ASX. (AFR)

• Toubani Resources,a West African gold explorer which is listed on the Toronto Stock Exchange, was asking investors for $5.5m (AUD) for its listing on the ASX. (AFR)

• State oil firm ADNOC has invited banks to pitch for roles in an IPO of its marine services and logistics unit. (RT)

• Instacart, a food delivery company, has shelved plans for its 2022 IPO. (BBG)

• Brazilian cosmetics maker Natura is considering an IPO for its high-end brand Aesop. (BBG)

• Reliance Industries will list a financial services unit in India called Jio Financial Services. (BBG)

• Polish retailer CCC is seeking to widen the investor pool for its upcoming share sale. (BBG)

Debt Raises

• Saudi Arabia has sold $5B (USD) in Islamic and conventional bonds in its first international bond sale for almost a year, for which demand topped $26.5B (USD). (RT)

• Carnival, a cruise operator, has offered a dozen ships as collateral in its latest $2B, 10.75% coupon bond offering. (FT)

• Emirates Central Cooling System Corp, known as Empower, a district cooling business, has borrowed $1.5B (USD) from the Emirates NBD Bank PJSC,which is expected to invite other lenders to participate in the loan. (BBG)

• Abu Dhabi's sovereign wealth fund Mubadala has sold $1B (USD) worth of bonds that mature in 10.5 years. (RT)

• Emirates NBD, the largest bank in Dubai, sold $500m (USD) worth of 5-year bonds in its first public debt offering of the year. (RT)

• Insurance Australia Group is set to follow the Commonwealth Bank of Australia to the hybrid market. (AFR)

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