Wild Weather Strikes the North Again

February 25, 2023

Good Morning,

Plane struck by lightning amid wild weather at Auckland Airport, Crusaders stunned by Chiefs' second-half blitz in Christchurch, People rescued from cars by boat as Auckland, Northland struck by another deluge, China Set to Overhaul Financial System Giving Xi More Control, Malaysia’s Anwar Expects Growth to Exceed 4.5% This Year, and US Likely to Put a Tech Cap on South Korean Chipmaking in China.

Let's jump in.

Before The Bell

Markets

  • Key markets were up on the day. The NZX 50 gained +0.1% to 11,905.75, the ASX 200 gained +0.3% to 7,307.00, the S&P 500 increased +0.5% to 4,012.32 and the Nasdaq rose +0.7%. All treasury bond yields decreased.

Earnings and Data

  • Fonterra cuts milk price forecast as demand from China slackens. Fonterra has reduced and narrowed its 2022/23 season forecast to $8.20 - $8.80 per kg of milk solids, with a midpoint of $8.50, due to softer demand out of China (Herald)

  • TVNZ profit slumps by two-thirds, CEO looks beyond abandoned merger. TVNZ has reported a net profit of $4.8 million for the six months to December 31 (Herald)

News Summary

  • A plane has been struck by lightning on the tarmac at Auckland Airport as wild weather hits the city (1 News)

  • The Chiefs have announced themselves as a huge Super Rugby Pacific threat by scoring 24 second-half points to thrash the Crusaders 31-10 in Christchurch tonight (1 News)

  • People rescued from cars by boat as Auckland, Northland struck by another deluge (Stuff)

  • Sydney woman handed $362 fine for driving with mobile - but that's not what's in her hand (9 News)

  • Optus threatened with legal action over name of new plan. Less than 24 hours after launching a new service for its customers, Optus is under pressure to make changes to the name for its plans for an app-based service allowing customers to get short-term improvements in service and speed on their mobile and NBN networks. (9 News)

  • China Set to Overhaul Financial System Giving Xi More Control. Chinese President Xi Jinping is set to bring decision-making of the financial system further under his control with the likely revival of a powerful committee to coordinate financial policy and the possible appointment of a key ally in a top position at the central bank (BBG)

  • Malaysia’s Anwar Expects Growth to Exceed 4.5% This Year. Malaysian Prime Minister Anwar Ibrahim is confident the economy will expand faster than expected in the current year, he said in a budget speech to parliament on Friday (BBG)

  • Plane Forced to U-Turn Minutes Before Landing Sends Passengers Back Home. A Japanese domestic flight turned into a seven-hour ordeal for more than 300 passengers after narrowly missing a curfew then being sent on a roundabout route back to its starting point (BBG)

  • The US is likely to impose a limit on the chip production capabilities of Samsung Electronics Co. and SK Hynix Inc. in China, a senior American official said, as Washington works with allies to curb Beijing’s access to cutting-edge technologies (BBG)

  • After a year of death and destruction, Ukraine braces itself for a major escalation in the war (CNBC)

Deal Flow

Investments / M&A

  • Newmont Corp.’s $17 billion USD push to buy Newcrest Mining Ltd. comes as miners wrestle with the reality that gold deposits are small, costly and short in life — while making the case for more diversification (BBG)

  • Exchange operator Euronext has submitted a preliminary offer to buy fund distribution firm Allfunds for 5.5 billion euros ($5.85 billion USD) in a deal that would help the Paris Stock Exchange operator advance diversification (RT)

  • British biotech firm Redx Pharma plc and U.S.-based Jounce Therapeutics Inc will merge to create a $425 million USD entity specialised in treating cancer and fibrotic disease (RT)

  • Iberia-owner International Airlines Group has agreed to pay 400 million euros ($423.84 million USD) to Spain's Globalia for the remaining 80% of airline Air Europa it did not already own, the company said in a statement on Thursday (RT)

  • Orix Weighs Cutting Contribution to JIP’s Toshiba Offer, Sources Say. One of the biggest members of the Japan Industrial Partners Inc.-led group pursuing a takeover of Toshiba Corp. intends to reduce its financial contribution, according to people familiar with the matter, adding another potential hurdle to the buyout of one of the country’s most iconic companies (BBG)

  • China Southern Power Grid Co. is considering a binding bid for Enel SpA’s distribution operations in Peru, according to people familiar with the matter, in what could be one of the largest cross-border deals by a Chinese buyer this year (BBG)

  • Characters line up for Pengana, E&P private equity funds battle. Pengana confirmed on Friday morning that it lobbed an indicative bid on December 16, and followed it up with a second “enhanced” offer on February 3 (AFR)

Equity Raises

  • World’s Third-Largest IPO This Year Ends Flat in Jakarta Debut. PT Pertamina Geothermal Energy ended flat in its Jakarta trading debut after a 9.06 trillion rupiah ($596 million USD) initial public offering, Indonesia’s largest over the past year (BBG)

  • Philippines’ GIC-Backed Metro Pacific Hospital Reviving $1 Billion IPO, Sources Say. Metro Pacific Hospital Holdings Inc. is considering reviving an initial public offering in Manila, according to people with knowledge of the matter, after shelving its original plan in 2019 (BBG)

Debt

  • An Indian appeals court halted the insolvency proceedings against Zee Entertainment Enterprises Ltd. in a major respite for the media after a local bankruptcy court initiated the process two days back (BBG)

Daily Pick

  • Spy Plane Pilot Takes Selfie With China Balloon at 60,000 Feet. The US Air Force pilot glances back as a camera focuses on the white airship floating below — a Chinese balloon on a flight across the US that not only worsened already fraught Beijing-Washington relations but touched off a political firestorm for the Biden administration (BBG)

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