Rate Hikes Hurt Markets

September 26, 2022

Good Morning,

Global economies risk falling into a recession on the back of rate hikes, NZ bank economists increase terminal rate forecast, Taupo volcano alert level increased following hundreds of small earthquakes, Grant Robertson is still committed to creating a state income insurance scheme before the next election, Link Market services have been hit with an extra $85m (AUD) fine, Norwegian Central Bank and the Hong Kong Market Authority all followed the Fed and raised rates, Ford will restructure its supply chain, FedEx is raising its shipping rates 6.9% & Singapore's core inflation in August was a nearly a 14-year high.

Before The Bell

Markets

  • Global markets were in the red last week as central banks around the world hiked interest rates.

News Summary

Monday

  • Sam Uffindell cleared by independent KC report (NBR)

  • Climate risks are 'here and now' says RBNZ Governor Adrian Orr (NBR)

  • Volkswagen valuing Porsche at $75 billion (USD) in upcoming IPO (BBC)

  • More Americans are stuck with long term credit card debt (BBG)

  • Stockland CEO says housing market will return to balance in 2024 (AFR)

  • Thousands more $2 million-plus (NZD) mortgages than in 2019 (Herald)

Tuesday

  • PepsiCo fulfils promise to Ukraine and ends production of Pepsi and 7UP in Russia (RT)

  • ANZ continues to increase fixed home loan rates as interest rates rise (Stuff)

  • Treasury Two Year Yield climb towards 4%, heading towards its steepest increase since 1994 (BBG)

  • Japanese Yen shows weakness at 24-year lows (CNBC)

Wednesday

  • A fortune 350,000+ Aucklanders will receive $303 (NZD) from the Entrust Dividend. (Stuff)

  • Santos has been blocked from drilling on its $5.4B (AUD) Barossa Gas Field after a federal court in Australia ruled they had failed to consult with the local Indigenous community. (AFR)

  • The Reserve Bank of Australia took a $44.9B (AUD) hit on bonds during the pandemic. (BBC)

  • Canadian inflation eased in August down to 7% YOY despite the fastest food price rise in 41 years. (RT)

  • US VC firms are sitting on $290B (USD), which is about to revive startup investing. (TI)

Thursday

  • The New Zealand Government has proposed a law to parliament to create a deposit guarantee scheme to protect up to $100,000 per person. (Stuff)

  • New Zealand Consumer confidence remains weak, but it did rise 8.9 points to 87.6 in the Westpac McDermott Miller Consumer Confidence Index. (NBR)

  • The Bank of England has raised rates by 0.5% to 2.25%, the highest level for 14 years and warned the UK might already be in a recession. (BBC)

  • The Norwegian Central Bank raised rates by 0.5% to 2.25% and expected small hikes ahead. (RT)

  • The Fed hiked rates by 0.75% to a range of 3-3.25% and indicated it would keep hiking. (CNBC)

Friday

  • Boeing will pay $200m (USD) in fines for misleading investors about two 737 Max crashes. (BBC)

  • Tesla has been ordered to recall nearly 1.1m US cars due to an issue with the windows. (BBC)

  • Ford will restructure its supply chain following $1B (USD) in unexpected costs in quarter three. (CNBC)

  • Australian consumer spending remains strong, up 25% YOY and up 27.4% to pre-pandemic levels. (AFR)

  • Singapore's core inflation was 5.1% YOY in August, a near 14-year high. (BBG)

Weekend

  • ComCo gives tick to THL Apollo merger (NBR)

  • Health tech entrepreneur furious over Endeavour Fund grants (NBR)

  • Residential listings plunge as landlords sell up (AFR)

  • The great bond bubble is gone, in worst year since 1949 (BBG)

  • Porsche may be worth 33% less than touted IPO price (BBG)

Deal Flow

Investments/ M&A

  • Prudential Financial is considering buying a minority stake in ABC Life at a potential $3-4B (USD) valuation. (BBG)

  • OZ Minerals has pressed start on a $1.7B (AUD) copper-nickel mine. This could see them partner with a heavyweight vehicle company which would further complicate the potential deal with BHP. (AFR)

  • Fonterra could gain $840m (NZD) from the sales of its Chile business. (Stuff)

  • Pentair is mulling the $800m (USD) sale of one of its units. (BBG)

  • Brazilian power company Equatorial Energia has agreed to buy Celg-D, a local electricity distribution company owned by Italy's Enel SpA, for $309m (USD). (RT)

  • French EV charging operator Bump has received a $180m (USD) investment from DIF Capital Partners. (TC)

  • Indian oil-to-chemical conglomerate Reliance Industrials has announced one of its units will buy a 20% stake in Caelux, a solar technology company, for $12m (USD). (RT)

  • Greece has received two binding bids for a 67% stake in its Alexandroupolis port. (RT)

  • Initial offers for RTL's 48% stake in French TV channel M6 are expected today. (RT)

  • South African Billionaire Johann Rupert's investment vehicle Remgro plans to sell its 25% stake in the local unit of TotalEnergies. (BBG)

  • Octopus Energy Generation, a renewable energy investor, will increase its stake to 23.25% in Britain's Lincs Offshore Wind Farm. (RT)

  • Link's Dye and Durham's deal is off. (AFR)

  • Cano Health, a senior health care operator, has received buyout interest from Humana and CVS Health Corp. (RT)

  • Aveva's investors plan to reject Schneider's takeover offer. (RT)

  • Bachoco's buyout deal is stuck whilst it waits for regulatory approval. (BBG)

  • Credit Suisse is weighing up the sale of its Latin American, excluding Brazil's wealth business. (BBG)

  • French company Schneider Electrical will purchase UK software company Aveva for £31 per share, making the deal worth ~£9.48B. (RT)

  • The German Government will nationalise gas giant Uniper by taking a 98.5% stake in a deal worth €8.5B. (BBC)

  • PE firm Genstar Capital is considering strategic options for software maker Prometheus. One option is a sale at a valuation of ~$6B (USD). (BBG)

  • First Sentier is planning the sale of French district heating operator Coriance for $1.5B (USD). (BBG)

  • Walgreens announced it would buy the remaining stake in speciality pharmacy company Shields Health Solutions for $1.37B (USD). (RT)

  • UK supermarket chain Sainsbury's is in talks to sell 18 stores to property investor LXi REIT for an ~$568m (USD). (RT)

  • An arm of Macquarie Group is nearing an ~$400m (USD) deal for a portfolio of ~1,350 phone towers owned by Philippine provider Global Telecom. (BBG)

  • Blackrock will sell Butlins Holiday Camps back to the former owner, the Harris Family, for ~$343m (USD). (BBG)

  • Viva Energy, an Australian fuel company, will buy the Coles Express fuel network in a $300m (AUD) deal. (AFR)

  • The two rival bidding groups have joined in their bid for Australia Pacific Capital. (AFR)

  • Mubadala is considering investing in PE firm EQT AB's fibre network operator GlobalConnect in a deal that could value the company at more than $7B (USD). (BBG)

  • STAS, a Singaporean catering and gateway service provider, is in talks to purchase air cargo handler Worldwide Flight Handlers from PE firm Cerberus Capital Management in a deal that could be worth up to $3B (USD). (BBG)

  • French utility Suez is set to buy back its old waste management unit for $2.3B (USD) from Veolia. (BBG)

  • International Holding Co, the Abu Dhabi Royal's investment firm, has offered up to $2.15B (USD) for a 25-31.25% stake in Columbian food manufacturer Grupo Nutresa. (BBG)

  • Talos Energy, an oil and gas company, will purchase EnVen Energy, a deepwater producer based, in the US Gulf of Mexico in a $1.1B (USD) deal. (RT)

  • French billionaire Xavier Niel has acquired a 2.5% stake in British telecom Vodafone via his investment fund Atlas Investissement for $917m (USD). (BBG)

  • UK commercial property development and investment company Landsec has sold 21 Moorfields to an investment vehicle managed by Australian company Lendlease for $917m (USD). (RT)

  • Ball Corp, a packaging company, has sold its Russian business for $530m (USD) to Arnest Group, a Russian-based aerosol producer. (RT)

  • Spanish bank Sabadell is in talks with US firm Fiserv, French firm Worldline & Italian firm Nexi to sell its payment arm in a deal worth up to $394m (USD). (RT)

  • Genex Energy has locked in Skip Capital and Stonepeak Partners in a 25c a share deal making the deal on an equity value worth $346.3m (AUD) and at enterprise level worth $670m (AUD). (AFR)

  • Abu Dhabi National Oil Co is considering a bid to buy a stake or all of the commodity trading house Gunvor Group. (BBG)

  • The German Government will nationalise gas importer Sefe. (RT)

  • Federal judge rules against $15 billion (USD) deal for UnitedHealth Group Inc to acquire Change Healthare Inc (WSG)

  • Zendesk shareholders have approved a $10.2B (USD) bid by a group of PE firms led by Hellman & Friedman and Permia to take the company private (RT)

  • KnowBe4, a cyber security firm, has received a $4.22B (USD) go-private offer from Visa Equity Partners (RT)

  • German football governing body DFL will launch the sale of media rights for the Bundesliga later in October with an aim to get $3.6B (USD) in the sale (RT)

  • Telecom firms TIM, Telefonica Brasil and Claro are seeking to lower the price they paid for rival telecommunication firm Oi's mobile division by ~$605m (USD) (RT)

  • South African listed gold mine AngloGold Ashanti will pay $150m (USD) to acquire Coeur Mining's Nevada gold projects (RT)

  • Move Logistics slam on the brakes on its $15m deal to acquire Fluidex Transport (NBR)

  • Momentum Markets set to acquire Money Management (AFR)

  • Frank Makryllos and his partners have purchased Tabcorp's eBet for $62m (AUD) (AFR)

  • Abu Dhabi's IHC buys 15% stake in healthcare provider Burjeel (BBG)

  • Starboard builds stake in website platform Wix (RT)

  • Czech energy investment business Sev.en has bought bankrupt ASX-listed Salt Lake Potash (AFR)

  • PE group Whiteoak has acquired stakes in NSW-based engineering consulting firm MIEngineers and its sister company Benchmark Estimating Software (AFR)

VC

  • Apax Partners have raised $10B (USD) of its $13.3B (USD) target for a new buyout fund. (BBG)

  • FTX, a crypto conglomerate, is in talks to raise $1B (USD) at $32B (USD) valuation. (CNBC)

  • Berlin's Visionaries Club, a VC firm, has raised €400m in fresh capital for B2B investments. (TC)

  • Abel Odor, a New Zealand natural perfume company, has raised $2.2m (NZD). (NBR)

  • Pillar Performance, an Australian sports supplement business, has raised $2m (AUD). (AFR)

  • C Capital plans to raise $500m to invest in crypto and PE investments. (BBG)

  • Seaglider, an electrical seaglider manufacturer, had a successful test flight of a replica prototype and is now looking to secure more funding. (NBR)

  • Property start-up Brickfloor is looking to raise $5m (AUD). (AFR)

  • Retail startup Swifty systems raise $100m taking their value to $1 billion (TC)

  • DTCP makes use of SoftBank for its next $300-$600m fund (TC)

  • New Zealand startup Kitea Health raises $6 million (NZD) for breakthrough implantable medtech (Herald)

Equity Raises

  • Metals Acquisition Corp will list on the ASX and has tapped up Canaccord Genuity and Barrenjoey as lead managers. (AFR)

  • Dubai's Salik drew $50B (USD) worth of bids for its $1B (USD) IPO. (BBG)

  • SoftBank has cut the valuation of the 2023 IPO-bound hotel booking firm Oyo to $2.7B (USD). (BBG)

  • Battery maker CALB is seeking $1.7B in its Hong Kong IPO, where it will sell 265.8m shares. (BBG)

  • China's Vanke Unit is hoping to raise $739m (USD) in its IPO on the Hong Kong market, where it is offering 116.7m shares. (BBG)

  • Firefinch, an ASX-listed African gold play, has raised $90m (AUD) and plans to raise an additional $30m via a share purchase plan. (AFR)

  • Burjeel has scaled down its IPO after Abu Dhabi'sroyal family took a 15% stake via International Holding Co. (BBG)

  • Fonterra will no longer IPO in Australian. (NBR)

  • VinFast, an electrical car maker, is set to IPO in the US in 2023. (BBG)

  • The $9.4B (USD) Porsche IPO was covered within hours, and there is excess demand. (BBG)

  • Indian drone maker IdeaForge is seeking to raise $125m (USD) in an IPO at a $900m (USD) valuation in 2023. (BBG)

  • ASX-listed African gold play Firefinch launched a $90m (AUD) equity raise at a 70% discount. (AFR)

  • Volkswagen seeks $9.4 billion (Euro) from the Porsche IPO (BBG)

  • The grocery delivery app Instacart focuses IPO on selling employees' shares (WSG)

  • Encounter Resources was seeking to raise $3m (AUD) at a 17.2% discount (AFR)

  • Victory Goldfields was seeking to raise $1.5m (AUD) at a 9.1% discount (AFR)

  • 90 seconds a video creation business has plans for a 2023 IPO (AFR)

  • Property management firm Onewo Inc seeks up to $784 million (USD) in Hong Kong IPO (BBG)

  • Gas business Tamboran Resources has launched a $133 million (AUD) equity raising (AFR)

  • Printer IVE Group raising $30 million (AUD) (AFR)

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