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NVIDIA tops $2 trillion valuation to cement spot as world’s fourth most valuable company

Author

Maren Ishak
February 26, 2024

Good Morning,

Global markets continued their upward trend this week, with major US indexes reaching new highs and European markets hitting record levels. China also saw strong gains, with the Shanghai Composite and CSI 300 rising over 4%. In company news, a2 Milk surged on positive earnings, while Ryman Healthcare and BHP saw their share prices fall significantly on profit downgrades. Other notable news includes KMD's sales decline, Move Logistics' revenue drop, and Port of Tauranga's profit decrease.

Let’s jump in!

Before The Bell

Markets

  • Major US equity indexes rose except for the small-cap Russell 2000, with S&P 500 and Nasdaq reaching new highs, fueled by Nvidia's record market cap gain of $277 billion (TRP)

  • European markets surged, with the STOXX 600 reaching a record high, France's CAC 40 up 2.56%, Italy's FTSE MIB gaining 3.05%, and Germany's DAX advancing 1.76% (TRP)

  • Chinese markets surged, with the Shanghai Composite gaining 4.85% and the CSI 300 rising 3.71%. Hong Kong's Hang Seng Index advanced 2.36% (TRP)

Earnings & Data

  • Global marketer a2 Milk surged, and leading retirement village operator Ryman Healthcare tumbled on contrasting earnings updates as the company reporting season heated up (GR)

  • Air NZ guides ‘adverse’ 2H due to competition and costs (NBR)

  • Electricity generator Contact Energy has expressed confidence in securing a new supply deal for its mega-customer in Southland, the Tiwai Point aluminium smelter, which would otherwise be closing at the end of this year. After Contact announced their half year earnings (NBR)

  • Auckland’s councillors have approved a budget consultation document that includes a 25.8% rise for Watercare fees, and presents options for a rates rise from 5.5% to 14%. (Stuff)

  • Expectational losses totalling US$5.7 billion ($9.28b) – from the failure of Samarco dam, where the disaster killed 19 people, and the bottom dropping out of the nickel market – has dropped BHP’s profit for the half year by 86% to US$900 million. (NBR)

  • KMD stock was down more than 14% to 53 cents per share by early Tuesday afternoon but fell as low as 47c after the update. The company behind Kathmandu, Rip Curl, and Oboz expected group sales for the six months ended January 31 to be down 14.5% to $469 million as a result of ongoing lower consumer demand. (NBR)

  • Ryman Healthcare’s shares fell more than 11% to an 11-year low on the news that it expects full-year earnings to come in 13% lower than previously guided. (NBR)

  • Mining giant BHP Group set the tone early in the session after reporting a slump in underlying profit to $US6.6 billion ($10.1 billion), forcing it to cut its interim dividend to US72¢ from US90¢ and sending its shares down 1.1 per cent to $45.54. (AFR)

  • Worries over whether Nvidia Corp. can deliver another blockbuster earnings beat sent US equity futures lower on Wednesday, with investors questioning the durability of the frenzy over artificial intelligence. (BBG)

  • NZX-listed transport company Move Logistics has gone further into the red, amid tough economic trading conditions. Revenue was down more than 11 per cent to NZ$158.3m. (NBR)

  • Port of Tauranga announces 25 per cent drop in first-half profit. (RNZ)

News Summary

Monday

  • NZ Parliament is considering legislation to regulate residential property managers (NBR)

  • At $40 a pack and the deadly risks, who are Australia's 2.5 million smokers? (9 News)

  • Lunar New Year: China tourism spending tops pre-Covid level (BBC)

Tuesday

  • Auckland’s councillors have approved a budget consultation document that includes a 25.8% rise for Watercare fees, and presents options for a rates rise from 5.5% to 14%. (Stuff)

  • Mining giant BHP Group set the tone early in the session after reporting a slump in underlying profit to $US6.6 billion ($10.1 billion), forcing it to cut its interim dividend to US72¢ from US90¢ and sending its shares down 1.1 per cent to $45.54. (AFR)

  • Expectational losses totalling US$5.7 billion ($9.28b) – from the failure of Samarco dam, where the disaster killed 19 people, and the bottom dropping out of the nickel market – has dropped BHP’s profit for the half year by 86% to US$900 million. (NBR)

Wednesday

  • Delivering the roads and public transport National campaigned on ahead of the October 2023 election could end up costing more than twice as much as the party said it would, leaving a potential fiscal hole of $24 billion. (Herald)

  • Members of Melbourne's Jewish community claim they were shoved to the ground and punched during a fiery protest outside the Melbourne Town Hall. (9 News)

  • China is one of the world's most expensive places to raise a child, relative to its GDP per capita, a prominent Chinese think tank said on Wednesday as it detailed the time and opportunity costs for women who opt to have children in the country. (RT)

Thursday

  • ‘It’s just war’: What’s really behind the face-off between Air NZ and Auckland Airport (Stuff)

  • Tabcorp blames states for $732m write-down as shares crash (AFR)

  • Nvidia Surges After Company Proclaims AI Has Hit 'Tipping Point' (BBG)

Friday

  • Up to 50 roles may go at PwC New Zealand as demand falls. (RNZ)

  • SkyCity ordered to pay A$13m in unpaid casino duty. (RNZ)

  • JPMorgan CEO Dimon sells about US$150 million of his shares, SEC filing says. (RT)

Weekend

  • Air NZ reports $129 million first-half profit, down 39% (Stuff)

  • Perseus eyes Newmont’s gold mine for sale (AFR)

  • NVIDIA tops $2 trillion valuation to cement spot as world’s fourth most valuable company (Stuff)

Deal Flow

Investments / M&A

Australia & New Zealand

  • ANZ will proceed with the A$4.9 billion ($5.27m) acquisition of the banking arm of Queensland-based financial services Suncorp, after winning an appeal against a ruling by Australia’s competition regulator the ACCC. (NBR)

  • The Warehouse Group sells Torpedo7 for $1 (Stuff)

  • Japan invested $US1.4 billion in Woodside Energy’s Scarborough gas project in Western Australia, securing a 15.1 per cent stake, with JERA, Japan’s top LNG importer, leading the investment. (AFR)

  • Aware Super's private equity team co-invested with Macquarie Asset Management in Galway Sustainable Capital, acquired for $US250 million. Alex Satchcroft, Aware Super’s private equity portfolio manager, led the investment of $US50 million alongside MAM's Green Investment Group (GIG). (AFR)

  • Armed with a strong balance sheet, Steel & Tube is on the acquisition trail and is looking out for firms that can help accelerate its growth. (NBR)

  • ADTY is preparing to get off the ground, engaging Ord Minnett to find it an investor to inject up to $50 million of equity into the acquisition-hungry healthcare group. (AFR)

  • Suitors revving up to bid for a controlling stake in Queensland Airport Limited will have to wait a little longer for the auction to begin. (AFR)

  • Shaw and Partners has dipped into Morgan Stanley Wealth Management’s ranks for the third time in less than six months. (AFR)

  • E&P Financial Group’s stock price spike has put the stockbroker and wealth manager on Street Talk’s watch list. (AFR)

  • PAG Asia Capital had to wait longer – and spend a little more – to acquire KKR’s Australian Venue Co. But as they say, good things come to those who wait. (AFR)

  • HMC Capital set to tap QIC dealmaker for energy transition unit (AFR)

  • ASX-listed toll road giant has mandated Goldman Sachs’ bankers in the United States to steer it through a sale process at Denver’s Northwest Parkway. (AFR)

  • CSR is working with UBS bankers after the building materials group received a takeover bid from French construction giant Saint-Gobain. (AFR)

  • Pacific Equity Partners has its eye on regional NSW’s top garbo JR Richards & Sons. (AFR)

  • Australian Unity has taken the country’s largest private home care business off Quadrant Private Equity’s hands, marking the buyout firm’s second exit this month. (AFR)

  • Orica raising $400m to acquire chemicals biz; Goldman Sachs on ticket. (AFR)

Key Global

  • AbbVie Eyes Selling at Least $13 Billion of Bonds to Fund M&A (BBG)

  • Saint-Gobain’s $4.3b bid for CSR two years in the making (AFR)

  • Precious metal producer Polymetal International agrees to sell Russian assets in $3.69 billion deal (RT)

  • Dominion Energy Inc. agreed to sell a 50 per cent non-controlling stake in the offshore wind farm it’s building in the Atlantic Ocean to infrastructure-focused private equity fund Stonepeak for US$3 billion. (BBG)

Other Global

  • Systems to invest US$277m in Indian state of Karnataka (RT)

  • British telecoms group BT said Wednesday it had agreed to sell London’s iconic BT Tower — once an important piece of network infrastructure — to developer MCR Hotels for £275 million ($346.6 million). (CNBC)

  • CVC Asia Pacific approach at $1.60 a share puts APM Human Services in play (AFR)

  • Air India, Tata Advanced Systems to invest US$277m in Indian state of Karnataka (RT)

  • Stokes’ Seven Group bids to take full control of Boral (AFR)

  • Integral Diagnostics tops Pacific Equity Partners’ Secure Assets Fund’s radiology hit list (AFR)

  • Whitehaven kicks off mini-BHP coal auction; eyes on AvidSys (AFR)

  • Comvita receives non-binding bid at ‘significant premium’ (NBR)

VC & Fundraising

  • Partech closes its second Africa fund at $300M+ to invest from seed to Series C (TC)

  • Molecular farming startup Miruku secures $8m in cap raise (NBR)

  • SG Fleet Group’s second-largest shareholder, LeasePlan Corporation, sent out JPMorgan to seek buyers for a circa $30 million stake after Tuesday’s closing bell. (AFR)

  • ANZ is expected to upsize its $1 billion hybrid deal by at least $500 million, after the bank succeeded in overturning the competition regulator’s opposition to its $4.9 billion for Suncorp’s banking business on Tuesday. (AFR)

  • Los Angeles-based startup Arc on Tuesday launched a new mass-market electric sport boat, months after the company backed by basketball player Kevin Durant and Hollywood star Will Smith raised $70 million in early-stage funding. (RT)

  • CVC Adds to Fundraising Spree With $6.8 Billion Asia Fund (BBG)

Equity Raises

Australia & New Zealand

  • Canaccord Genuity’s desk launched a $60 million block trade in Sayona Mining after market close on Wednesday, seeking buyers for about 11.2 per cent of the company. (AFR)

Key Global

  • Chipmaker Astera Labs filed for an initial public offering in the United States on Wednesday. (RT)

  • EV play Electromotiv launches funding round (AFR)

Debt, Restructuring & Bankruptcy

  • Goldman Sachs Asset Management LP has launched its first European private credit fund for wealthy individuals, joining the race to draw the region’s rich into a rapidly-expanding industry. (BBG)

  • President Joe Biden’s administration announced that more than 150,000 borrowers will receive $1.2 billion in student loan forgiveness under a program unveiled in January seeking to provide relief for Americans who had been making payments for at least a decade. (BBG)

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