Australia Buys More Missiles 🚀

Good Morning,

Australia will speed up efforts to buy longer range missiles to counter the growing threat from China, Credit Suisse has revealed that 61.2 billion Swiss francs left the bank in the first three months of 2023, the RBNZ has decided to incentivise commercial bank involvement in the Government's planned Business Growth Fund and US retail giant Bed Bath & Beyond has filed for bankruptcy.

Let's jump in.

Before The Bell

Markets

• A quarter into record layoffs, investors in U.S tech giants will scrutinise if the cost cuts boosted profits to their satisfaction, while the companies emphasise how artificial intelligence will be their next growth driver (RT)

• A big splurge in spending in China after Beijing lifted COVID-19 lockdowns will help cushion quarterly results of the world's biggest companies, investors say, even as forecasts suggest the United States and Europe are heading into a corporate recession (RT)

• Sydney house prices are expected to rise 1 per cent overall this year, Westpac has stated in its latest forecast, a sharp reversal from its earlier prediction that the city's homes were set for an 8 per cent decline (AFR)

• Professional investors see the US dollar sliding even further from last year's two-decade highs, as the market has underpriced the Federal Reserve's oncoming easing cycle (BBG)

• The biggest two-day slide in Chinese stocks this year suggests traders may be losing faith in the market's rebound as they reassess inherent risks including geopolitical tensions and a fragile economy (BBG)

• Analysts are expecting US tech profits to register the biggest drop since 2009, with businesses curbing spending on software, cloud and advertising services as they’re pinched by inflation and higher borrowing costs (BBG)

Earnings and Data

• Restaurant Brands total sales were up 12% to $308.6 million for the first quarter ended March 31 2023, from $275.4m year-on-year. The increase was largely attributed to price increases implemented across all markets, and sales recovery from the impact of lockdowns (NBR)

News Summary

• Australia will speed up efforts to buy longer range missiles to counter the growing threat from China, a major defence review says. It warns the country can no longer be protected by its geographic location in the "missile age" (BBC)

• The Swiss banking giant Credit Suisse has revealed the scale of the bank run that triggered its state-backed rescue in March. They stated 61.2 billion Swiss francs left the bank in the first three months of 2023 (BBC)

• The Reserve Bank has decided to incentivise commercial bank involvement in the Government’s planned Business Growth Fund by reducing the equity backing normally required for risky investments (NBR)

• Microsoft is putting ChatGPT-4 technology to use in powering a new cybersecurity product that can help organisations protect themselves from threats "at machine speed and scale" (NBR)

• Growing concerns that China may be facing a new Covid wave fuelled a surge in shares of the nation's drugmakers Monday as the public fretted over waning immunity (BBG)

• US retail giant Bed Bath & Beyond plans to liquidate all inventory and go out of business as they filed for bankruptcy on Sunday (Newshub)

• Investors in Restaurant Brands have devoured good news from the fast food investment company with relish. Their total sales for the first three months of the year jumped by $33.2 million NZD as its customers were forced to swallow price rises (Stuff)

Deal Flow

Investments / M&A

• Whiteware maker Haier, owner of Fisher & Paykel Appliances, has acquired further land in Auckland for $47.3 million, with the transaction settling on March 7 (NBR)

• Shares in Australia's largest funerals group, InvoCare, plummeted almost 17 per cent in early trading on the ASX on Monday after private equity group TPG officially withdrew its $1.8 billion AUD buyout proposal (AFR)

Daily Picks

• Read here about NBR's take on eternal economic growth and whether or not it is a feasible target

• Learn a bit more about the $1.1 trillion USD the world spent on climate technology last year here

Job Board

New Zealand

• ASB rural banking graduate - Apply here

• Waterman Capital investment analyst - Apply here

Australia

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