Citadel On Top

Good Morning,

Citadel churned out a record $16 billion USD in profit for clients last year, outperforming the rest of the industry and one of history's most successful financial plays, California police have identified the gunman suspected of killing 10 people in a ballroom dance studio near LA, who was later found dead in a white van, incoming prime minister Chris Hipkins has vowed to protect his family from what he called the "abhorrent" abuse that his predecessor, Jacinda Ardern, received while in office and Novak Djokovic's 'smuggled' note sparks controversy at the Australian Open.

Let's jump in.

Before The Bell

Markets

• The S&P/ASX 200 added 5.1 points, or 0.1 per cent to 7457.3 on Monday, buoyed by gains across the energy and technology sectors (AFR)

• The eurozone will avoid a recession this year according to a widely watched survey of economists which illustrates the sharp about-turn in global economic sentiment in the past couple of weeks (AFR)

• Brazil and Argentina are in the preliminary stages of renewing discussions on forming a common currency for financial and commercial transactions, reviving an often-discussed plan that would face numerous political and economic hurdles (BBG)

• Oil edged lower, with many Asia-based traders offline for holidays to mark the Lunar New Year, as investors assessed the outlook for demand following China's reopening and risks to Russian output in 2023 (BBG)

• Upcoming consumer price index (CPI) data will be in focus this week as New Zealand winds up toward another Reserve Bank monetary policy statement and official cash rate (OCR) decision next month (NBR)

• Spotify Technology is planning layoffs as soon as this week, according to people familiar with the plans, joining a slew of technology companies in announcing job cuts to lower costs (BBG)

Earnings and Data

• The Australian Foundation Investment Co Ltd has reported revenues of $178.1 million AUD, up 10.1% over the previous corresponding period (Fool AU)

• In January 2023, DG ECFIN's flash estimate of the consumer confidence indicator continued its recovery, improving by 1.4 percentage points, improving by 1.4 percentage points in the EU and 1.1 percentage points in the euro area. At -22.4 (EU) and -20.9 (EA), however, consumer confidence remains at well below its long-term average (EFEC)

News Summary

• The man suspected of killing 10 people at a California dance studio is dead, police say (BBC)

• Incoming prime minister Chris Hipkins stated on Sunday, the "small minority" of Kiwis responsible for abusing Jacinda Ardern "do not represent who we are as a country". He said he realised that putting himself forward as a leader meant that he was "public property" - but that his family were not, and he wanted his children to live a "typical Kiwi kid life" (BBC)

• The top 20 hedge fund firms collectively generated $22.4 billion USD in profit after fees last year, however Citadel's gain was the largest annual return for a hedge fund manager, surpassing the $15 billion that John Paulson generated in 2007 on his bet against subprime mortgages (BBG)

• A viral TikTok shows a member of Novak Djokovic's team passing a water bottle to ATP tour supervisor Gerry Armstrong during the Serbian's second-round defeat of Enzo Couacaud at the Australian Open on Thursday. A paper note is attached to the bottle, and the alleged message is smuggled across the court by the unwitting mule into Djokovic's outstretched hand during a changeover (Stuff)

• Germany's foreign minister Anna Baerbock has said she "would not stand in the way" of Poland if they were to send Leopard 2 tanks to Ukraine (BBC)

• China has reported its Covid-related death toll topped more than 12,600 in the week before the Lunar New Year holiday, while a top health official suggested more than 1.1 billion people had been infected since virus controls were abruptly dismantled late last year (BBG)

Deal Flow

Investments / M&A

• Perpetual chief executive Rob Adams has pleged to retain all Pendal's investment personnel, but warned overall headcount will reduce, after officially completing the $2 billon takeover of rival Pendal (AFR)

• Private equity newcomer Glow Capital is going green for its first acquisition, homing in on a controlling stake in garden bed kits company Vegepod (AFR)

• IFM Investors' private equity team locked and loaded its $330 million debt package to finance its acquisition of Crescent Capital backed radiology business PRP Diagnostic Imaging (AFR)

• The private equity firm KKR, which already owns biscuit maker Arnott's, is keen to stitch up a deal for Kraft Heinz Australia Pty Ltd (AFR)

VC & Fundraising

• Airbus SE is seeking outside investment for its high altitude solar-powered drone program called Zephyr in order to accelerate the commercialisation of the technology. The plane-maker has hired Morgan Stanley to lead to the process of finding investors, a spokesman said in an email (BBG)

• Bill Gates has joined a slew of billionaires investing in an Australian climate technology startup that has plans to disrupt to methane-emitting animal agriculture industry with a lab-grown feed additive. Breakthrough Energy Ventures LLC, led by the Microsoft Corp. founder took part in a $12 million Phase 2 seed funding round for Rumin8 Pty, according to a statement on Monday. The Perth based firm is developing a supplement for livestock made form synthetically-replicated bromoform, the active ingredient found in a red seaweed (BBG)

Daily Picks

• Bloomberg reporter Jess Menton has compiled an article highlighting the current concerns of investors in the US stock market. Check it out here

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