Musk, a Man of Second Chances

November 26, 2022

Good Morning,

Warehouse Group steps up security against ramraids, Fonterra confirms plans for new capital structure in March after law change, Elon Musk says Twitter will offer 'amnesty' to suspended accounts, UK airports could ditch luggage liquid rules by 2024 and NZ Teachers disappointed with Government pay offer.

Let's jump in.

Before The Bell

Markets

  • ASX gains, CBA posts 52-week high. Investors sought safety in blue-chip bank stocks on Friday, propelling Australia’s largest bank to a 52-week-high, as central banks continue to tighten interest rates, uncertainty about a global recession remains high and geopolitical risks persist. (AFR)

  • Australian, New Zealand dollars on track for big recoveries. (AFR)

  • Australian shares are poised to rise modestly at the open, following gains in Europe on hopes that the US Federal Reserve is nearing an end to its rate-rising cycle. (AFR)

Earnings and Data

  • Radius Residential Care reported a net profit increase for the period 29% on a year ago to $1.72m and the company’s preferred measure of financial performance, underlying ebitda, rose from $5.1m to $7m. (NBR)

  • EROAD today reported a big jump in revenue for the six months ended September 30 to $85.4 million from $48m, but that reflected a full half of its Coretex acquisition. Annualised monthly recurring revenue increased 18% to $158.3m. (NBR)

  • New Zealand retail sales were slightly weaker for the three months ending September, increasing 0.4 per cent instead of the expected 0.5 per cent. (Herald)

News Summary

  • Councillors boycott Gore mayor Ben Bell's Cromwell retreat. Some Gore district councillors boycotted mayor Ben Bell’s retreat for elected members, another left, and the council says it does not know what the final cost of the two-day meeting will be. (Stuff)

  • NZ PM Jacinda Ardern makes first Chatham Islands visit, with Ngāti Mutunga settlement and housing and cost of living crisis front and centre. (Herald)

  • The main suspect in the alleged murder of Queensland woman Toyah Cordingley has been arrested in India. Toyah Cordingley's body was found by her father Troy in sand dunes on Wangetti Beach, north of Cairns, in October 2018. (9 News)

  • A cleaner has died inside a Woolworths supermarket in the Newcastle suburb of Jesmond this morning. (9 News)

  • Security restrictions on liquids and laptops in airport hand luggage could be axed in the UK within two years thanks to high-tech 3D scanners.The government is considering rolling out the more advanced scanners by mid-2024, a source told the BBC, although a final decision has yet to be made. (BBC)

  • China reports new daily record COVID cases, curbs tighten across country. (RT)

  • A gauge of Asian equities fell amid a subdued tone in markets on Friday after Thanksgiving in the US. Treasuries rose as trading resumed after the holiday. (BBG)

Deal Flow

Investments/ M&A

  • Scottish multinational energy company SSE Plc has agreed to sell a 25% stake in its electricity transmission grid business to the Ontario Teachers’ Pension Plan Board for about £1.5 billion ($1.8 billion USD). (BBG)

  • Italian multinational manufacturer and distributor of electricity and gas Enel Weighs $5 Billion Peru Operations Sale to Cut Debt. (BBG)

  • India Considers Selling Stakes in Its Mammoth Coal, Zinc Miners. (BBG)

  • Brookfield Asset Management Inc. has acquired Hong Kong-based clothing label maker Trimco Group from buyout firm Affinity Equity Partners, according to people familiar with the matter. (BBG)

    VC & Fundraising

    • Gautam Adani’s plan to raise at least $5 billion in equity aims to shut down two of the most frequent criticisms levelled against the Indian tycoon’s swelling empire: high debt ratios and a limited investor base. (BBG)

    • ANZ doubled its $50 billion sustainable financing target to $100 billion by 2030, having already hit $40 billion within three years and finding itself on track to meet the $50 billion by the end of this financial year. (AFR)

    Equity Raises

    • The Middle Eastern operator of KFC and Pizza Hut outlets drew orders worth $105 billion for its initial public offering, raising $1.8 billion for its shareholders in the first-ever dual-listing in Riyadh and Abu Dhabi. (BBG)

    • Lygend Resources & Technology Co., a Chinese nickel producer and trader, raised about HK$3.67 billion ($470 million USD) in its Hong Kong initial public offering, according to people familiar with the matter. (BBG)

    • Sydney-based home lender Brighten Financial has hired JPMorgan, Natixis and Standard Chartered Bank to launch a $400 million residential mortgage backed security deal. (AFR)

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

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

    Reply

    or to participate.