Tech Giants Signal Dark Outlook 🔮

Author

Barker Carroll
January 26, 2023

Good Morning,

Bank economists believe inflation has likely reached its worst, smaller interest rate hikes are on the horizon, Laybuy shareholders rush to exit as Laybuy's shares plummet as they announce plans to be delisted from the ASX, the U.S and Germany are poised to provide heavy battle tanks to Ukraine, the Kiwi-born Rocket Lab launches its first rocket from its United States pad without a hitch.

Let's jump in.

Before The Bell

Markets

  • New Zealand's share market nearly reached its highest level in 10 months, reflecting renewed hope that inflation has peaked (NZHerald)

  • Asian equities make 7-month highs following some regional markets re-opening after the holidays

  • Australian Dollar hits multi-month highs as inflation surges and makes higher interest rates more likely

Earnings and Data

  • Microsoft posts better than expected results driven by its strength in cloud computing for the December quarter. Although, this has been offset by disappointing guidance for the March quarter (RT)

  • Verizon's fourth quarter earnings met expectations but were let down by sluggish growth predictions in 2023

  • ASML beats earnings forecasts and is forecasted to produce a 25% increase in 2023 sales (RT)

News Summary

  • Prime Minister Chris Hipkins will be making his first public engagement visiting business leaders in Auckland later today (NBR)

  • Laybuy shareholders rush to exit as Laybuy's shares plummet as they announce plans to be delisted from the ASX (NBR)

  • The Kiwi-born Rocket Lab launches its first rocket from its United States pad without a hitch (NBR)

  • Bank economists believe inflation has likely reached it worst, smaller interest rate hikes are on the horizon (NZHerald)

  • The U.S and Germany are poised to provide heavy battle tanks to Ukraine (RT)

  • Thirteen crew member rescued from sinking ship off the coast of Japan, 9 still missing (RT)

  • U.S firm Hindenburg takes short position in Adani Group Companies causing Adani Groups stocks to fall (CNBC)

  • US Justice Departments sues Google to break up Alphabet Inc's ad-technology business after alleged illegal monopolisation (BBG)

Deal Flow

Investments / M&A

  • Matador Resources are set to buy Advance Energy for $1.6 billion. Additionally, Matador would have to pay $7.5 million of cash per month throughout 2023 if the average oil price is above $85 per barrel (RT)

  • Israel's NewMed energy LP proposed merger with Capricorn Energy Plc is less likely to go forward as the UK company loses several board members including it's CEO (BBG)

  • WiseTech has the support of the Bank of America on it's $US230 million acquisition of US-based transport management system software provider Envase Technologies

  • Mcwin has announced they have bought a majority stake in Germany's Italian themed restaurant chain L'Osteria for $434 million (RT)

  • News Corp is in talk to sell its online real estate company Move Inc to CoStar Group Inc. The deal is predicted to be worth around $3 billion (BBG)

  • Strava acquires European 3D mapping platform Fatmap (TC)

  • Several Middle Eastern investors such as IHC and ADIA are bidding for Adani's $2.5 billion share sale (BBG)

VC & Fundraising

  • Dubai-based Wafec raises $3 million in seed funding and is exploring opportunities to expand into Egypt and double down on existing markets (TC)

Equity Raises

  • Reddit Inc makes several changes to its executive ranks and adds Chief Revenue Officer a year after filing for an IPO (BBG)

  • Goldman Sachs and BOFA have relinquished their roles on Adnoc's IPO which is set to be one of Abu Dhabi's biggest listings (BBG)

  • New Zealand based property syndicate Centuria Penrose seeks to raise $8.6 million for a swap contract to defend against rising costs (NBR)

Debt & Restructuring

  • D&Z Media Acquisition Corp has decided to liquidate after raising $287.5 million in 2021. The company expects the pay out to be $10.17 per share (BBG)

  • Holders of bonds issued by the supermarket group Asda are worried as the EG Group Ltd.'s deal would saddle Asda with more debt which could cause a fall in ratings (BBG)

  • Goldman Sachs agrees to sell around $31 million of its Morrisons debt. A fraction of the $40 billion of debt stuck on banks balance sheets (BBG)

Daily Picks

  • Matador Resources are set to buy Advance Energy for $1.6 billion. Additionally, Matador would have to pay $7.5 million of cash per month throughout 2023 if the average oil price is above $85 per barrel (RT)

  • The Kiwi-born Rocket Lab launches its first rocket from its United States pad without a hitch (NBR)

Love our newsletter? Please share it with your friends, family, colleagues or anyone who needs to stay on top of the market via this link.

Also, if you have any feedback or questions, don't hesitate to hit us up via email or Instagram.

The Daily Deck is sponsored by Industrial Equity, LLC

Reply

or to participate.