Thanksgiving in US, COVID in China

November 25, 2022

Good Morning,

In NZ recession fears are boosted by RBNZ rate hikes and predictions. US Markets will be closed for thanksgiving in the US. Chinese covid cases see no slow down despite harsh zero-COVID policy efforts. Most of Kyiv was left without power last night after the missile attack.

Let's jump in.

Before The Bell

As of 23/11/2022 market close, US and UK share and treasury data as of market close 22/11/2022

All data off Yahoo Finance expect bonds yields which is off Marketwatch. Currency based on location.

News Summary

  • News from the day including general, financial and sports

Unless you’ve spent the past few days under a rock, your ears are probably ringing with the word “recession”. In a pretty grim update on Wednesday the Reserve Bank predicted New Zealand will tip into a recession next year, albeit a “shallow” one. (Stuff) 

The chief executive of dual-listed diagnostics company Pacific Edge is confident the worst-case scenario in ongoing uncertainty over the continued reimbursement of its tests in the US is “low probability” and that it would be “unprecedented” for them to lose coverage. (NBR)

Whitehaven boss Paul Flynn sold 900,000 shares in a move that shook investor confidence, as shares posted their third straight day of gains. (AFR)

Russia's Federal Security Service (FSB) said on Thursday that it had prevented Ukrainian special services from carrying out what it said was sabotage on the "South Stream" gas pipeline. (Reuters)

Deal Flow

Investments/ M&A

  • A pair of Australia’s biggest homegrown whisky labels, Tasmania’s Lark Distilling Co and Sullivans Cove, have held exploratory talks about a merger and the chance to create a national whisky champion. (AFR) 

  • It’s down to the short strokes at CWP Renewables, with Partners Group and its bankers finally set to bring the auction to a close. After a drawn out process, delays getting information into the data room and the like, binding bids are due on Monday with expectations of offers with a “4” in front of them. (AFR)

  • Ad fraud prevention software company Adveritas is in the crosshairs of NASDAQ-listed Integral Ad Science, which wants to buy the company for about $50 million. (AFR)

  • Saudi Aramco Base Oil Gets Nod for $1 Billion Riyadh IPO, Veon Ltd. decided to sell its Russian unit to some senior members of its management team in the country as the mobile operator attempts to limit the fallout from the war in Ukraine on its business. (BBG)

  • Vista Equity Partners is exploring an acquisition of Coupa Software Inc., according to people familiar with the matter. The stock rose as much as 36% on the news. (BBG)

VC & Fundraising

  • Chinese nickel producer Lygend Raises $470 Million in Hong Kong IPO, Sources Say (BBG)

  • Tech company Blackpearl Group first direct NZX listing this year Company waits on final approvals before planned listing on December 2, with a $45m market capitalisation. (NBR)

Equity Raises

  • S&P Global Ratings has cut its rating on Indian conglomerate Adani Group’s North Queensland Export Terminal’s senior secured debt to B- from BB-, saying the risk of it refinancing its debt had heightened. In a note sent to its credit rating clients, S&P said the coal port was yet to finalise funding to refinance a $US500 million bond due on December 15. (AFR)

  • Business lender Prospa has kicked off meetings with institutional investors in a bid to drum up interest in a new $200 million securitisation deal. (AFR)

  • Indian billionaire Gautam Adani is courting sovereign wealth funds to raise roughly $5 billion in equity across his sprawling business empire and reduce leverage, people familiar with the matter said. (BBG)

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