Trump Surrenders 📸

Good Morning,

China Eases Home Purchase Rules in New Push to Boost Economy, Donald Trump Surrenders in Georgia Election Plot Case, Kmart Sales Booming during Cost of Living Crisis, and ‘Barbie’ is now the highest-grossing domestic film release in 2023.

Let's jump in.

Before The Bell

Markets

• Markets were mostly down over the past two days. The NZX 50 lost 0.2%, to 11,485.26, the ASX 200 decreased -0.1% to 7,121.60, the S&P 500 dropped -0.6% to 4,403.44 and the Nasdaq decreased -0.6%. All treasury bond yields decreased.

Earnings and Data

• Kmart Group, owned by Australian retail giant Wesfarmers, on Friday reported annual revenue of AUD$10.6 billion (NZ$11.5b), up 16.5%, and earnings of $769 million, up 52.3% (Stuff)

• Port of Tauranga increased its annual profit 5.2% after raising prices to offset higher costs (Stuff)

• Media company NZME has warned investors its operating profit is likely to be at the lower end of its previous forecast after reporting a 76% drop in its net profit to just under NZD$2 million for the six months to the end of June (Stuff)

• The Watches of Switzerland Group lost a quarter of its value on Friday morning, heading for the stock’s worst day ever, after luxury watchmaker Rolex announced a deal to buy watch retailer Bucherer (CNBC)

News Summary

• Former US President Donald Trump has surrendered in Georgia to be arrested on charges of plotting to overturn the 2020 election results in the state (RNZ)

• Former prime minister Dame Jenny Shipley​ has failed in her bid to get the Supreme Court to throw out an award of more than NZD$6 million in compensation against her for her role in the collapse of construction company Mainzeal (Stuff)

• Maui County has sued the Hawaiian Electric Company on Thursday over the fires that devastated Lahaina, saying the utility negligently failed to shut off power despite exceptionally high winds and dry conditions (9 News)

• China unveiled a further easing of its mortgage policies to halt a slump in its residential property market and revive growth in the world’s second-largest economy (BBG)

• China’s securities regulator plans to convene a meeting with some of the world’s biggest asset managers on Friday, its latest attempt to shore up confidence after a record stretch of outflows by foreign funds (BBG)

• Pacific Investment Management Co. says the Federal Reserve may not be done raising interest rates just yet (BBG)

• Nvidia's move to buy back USD$25 billion of its shares after its stock has more than tripled this year caught some investors off-guard, even as they cheered a stellar second-quarter report (RT)

• Dubai’s luxury home prices surged by nearly 50% in the year up until June, maintaining its top ranking for the eighth consecutive quarter (CNBC)

• Warner Bros. Discovery and Mattel’s “Barbie” has topped USD$575.4 million at the domestic box office, making it the highest-grossing movie of the year in North America (CNBC)

• The US Justice Department is urging regulators to take a closer look at Vistra Corp.’s planned USD$6.8 billion acquisition of a rival power producer because it may be anti-competitive (BBG)

Deal Flow

Investments / M&A

• Dutch brewer Heineken said on Friday it had completed its exit from Russia by selling its operations there to Russia's Arnest Group for a symbolic one euro (RT)

• Australian Venue Co, the operator of dozens of hotels and bars including The Esplanade in St Kilda and Bungalow8 and Cargo in Sydney, will be acquired by PAG Asia Capital for about AUD$1.4 billion, sources say (AFR)

• Roark Capital Group has won the race to acquire US sandwich chain Subway after seeing off a late challenge from a rival bid group led by TDR Capital and Sycamore Partners (BBG)

• Sony Interactive Entertainment is buying audiophile gear maker Audeze LLC in a bid to advance the sound experience of its PlayStation products (BBG)

• Crescent Point Energy Corp. agreed to sell its position in the oil fields of North Dakota for USD$500 million (C$678 million) as it shifts its focus into the Canadian province of Alberta (BBG)

• Engie SA agreed to buy Broad Reach Power LLC, a private equity-backed US battery company, as part of a strategy to expand in electricity storage and renewables (BBG)

• An investor consortium is pushing again to acquire Hollysys Automation Technologies Ltd. in a deal that values the Beijing-based industrial company at about USD$1.6 billion (BBG)

• Private equity firm PAI Partners said on Thursday it agreed to buy Alphia Inc from its owner J.H. Whitney Capital Partners, in a deal that people familiar with the matter said values the pet food manufacturer at about USD$1 billion, including debt (RT)

• Paytm shareholder Antfin is likely to sell a 3.6% stake in the Indian payments firm through a block deal on Friday as it further reduces its stake in the company (RT)

Daily Picks

• Everything China Is Doing to Juice Its Flagging Economy (BBG)

Job Board

New Zealand

• ASB rural banking graduate - Apply here

• Waterman Capital investment analyst - Apply here

Australia

• Citadel Securities graduate and intern roles - Apply here

• Goldman Sachs Investment Banking Intern - Apply here

• IMC graduate and intern roles - Apply here

• Jarden

  • Graduate role - Apply here

  • Summer internships - Apply here

• Macquarie graduate roles - Apply here

• Optiver

  • Graduate role - Apply here

  • Internships - Apply here

The Daily Deck is sponsored by Industrial Equity, LLC