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KiwiBank loses crown as cheapest one-year home rate champ

November 27, 2023

Good Morning,

Markets have improved since last week, HelloFresh triumphs My Food Bag as the make-it-yourself food delivery service, European bond yields are looking greener, Sam Altman is back as the CEO of OpenAI, KiwiBank increases rates, losing their spot as market cheapest.

Let’s jump in!

Before The Bell

Markets

  • NVIDIA surpassed Q3 earnings expectations but cautious guidance due to export restrictions to China led to a share decline, impacting the Nasdaq Composite Index, with growth stocks outperforming value stocks (TRP)

  • Japan's core CPI rose 2.9% YoY in October, marking the first acceleration in four months, slightly below the 3.0% consensus expectation. The consistent inflation above the Bank of Japan's 2% target for the 19th consecutive month sparked speculation about potential imminent tighter monetary policy (TRP)

  • European government bond yields inched up, with Germany's 10-year bond yield recovering from a level below 2.516%, which marked a low point lasting over two months earlier in the week, with French and Swiss bonds yields also seeing rises (TRP)

Earnings & Data

  • The parent company of online marketplace Trade Me has returned to profit, posting a $4.7 million gain for 2023 after a $2.3m loss in 2022. (NBR)

  • HelloFresh beats My Food Bag on revenue, profit (NBR)

  • Task Group has posted a 35% improvement in its net after-tax loss for the first half of its 2024 financial year, thanks to the full benefit of its renewed McDonald’s deal. (NBR)

  • USX-listed Syft Technologies has posted a 2024 financial half-year loss of $8.2 million – wider than the $6.5m it reported in the previous corresponding period – but is sticking to its circa-$30m revenue guidance. (NBR)

  • HelloFresh beats My Food Bag on revenue, profit (NBR)

News Summary

Monday

  • World in turmoil – the dangers to New Zealand’s security (NBR)

  • PwC hires new chief risk officer, commits to stronger controls (AFR)

  • Blouse worn by Diana in 1981 royal engagement portrait to be auctioned (Guardian)

Tuesday

  • Kiwibank increases one-year home loan rate, no longer market cheapest (Stuff)

  • Australia win sixth Cricket World Cup (Guardian)

  • Temu spending 'millions' to disrupt online shopping habits (Stuff)

Wednesday

  • A man has been jailed for using fake banknotes at businesses in Blenheim and Palmerston North. (Stuff)

  • About a third of Qantas, Jetstar and Virgin Australia domestic flights were late in October, new official statistics show. (AFR)

  • Defence Minister Richard Marles has described China as a source of both national wealth and anxiety, as the opposition demanded Anthony Albanese apologise for not raising with President Xi Jinping last week’s incident between the Australian and Chinese navies. (AFR)

Thursday

  • Act leader David Seymour has landed at Wellington Airport tonight declaring he does not believe either he or Winston Peters should be put in a position to voluntarily rule themselves out of the deputy PM role. (Herald)

  • Renowned macroeconomist Gerard Minack says Australian policymakers are “doubling down on a dumb strategy” by relying on population growth rather than increased investment to grow the economy. (AFR)

  • Sam Altman is set to make a return as chief executive of OpenAI after the ChatGPT developer said it had “reached an agreement in principle” for his reinstatement. (Guardian)

Friday

  • ANZ restructure to 'add more jobs in India' (Stuff)

  • ASX to slip, Wall Street higher, oil swings (AFR)

  • US prosecutors want Binance's Changpeng Zhao to remain in US until sentencing -filing (RT)

Weekend

  • Seymour and Peters to share Deputy PM role (NBR)

  • More than 70 anonymous bomb threat emails have been sent to schools, hospitals, courthouses and places of worship since Thursday morning (Stuff)

  • Amazon protests in Europe target warehouses. (RT)

Deal Flow

Investments / M&A

Australia & New Zealand

  • Embattled gaming groups Crown Resorts and Star Entertainment are no strangers to merger talk with the latter having launched a $12 billion bid to bring Australia’s biggest casino operators together in 2021. (AFR)

  • Influential shareholders in ASX-listed gold developer OreCorp are growing increasingly dissatisfied with Silvercorp Metals’ proposed takeover deal. (AFR)

  • Long-suffering lender Macquarie has sold its entire exposure in the pub and hotel roll-up to another senior lender, Archibald Capital. (AFR)

  • Family-owned KEE Group, a prominent Western Australia road maintenance firm, has drafted in Azure Capital to help find a cashed-up capital partner to fuel its growth ambitions. The owners have been working with Azure to prepare a sale process, hoping to capitalise on big spending in the resources sector and on the state’s infrastructure projects. (AFR)

Key Global

  • The U.S. Federal Trade Commission (FTC) is investigating whether Roark Capital's purchase of Subway for $10 billion is legal under antitrust law given that the private equity firm already owns Jimmy John's and Arby's, Politico reported Tuesday. (RT)

  • Trans-Tasman pharma distributor EBOS will pay $3.75 billion to acquire TPG Capital-backed pets and vets business Greencross, details of which were first revealed by this column last week. (AFR)

  • Fortescue will proceed with its first three projects under the iron ore group’s ambitious plans to become a major force in hydrogen and renewable energy, committing to investments worth $US750 million ($1.14 billion) in Australia and the United States. (AFR)

  • KPMG seeks buyers for private equity backed artisanal bread maker, Noisette (AFR)

  • Capital Power Corp. agreed to buy two US natural gas-fired power plants in a $1.1 billion deal that’s partly backed by BlackRock Inc. and would make the Canadian company one of North America’s largest generators. (BBG)

  • US private firm TA Associates is ready for its payday at Fisher Funds, six years after it bought a 33.9 per cent stake in the now-$NZ22 billion Kiwi investing giant. (AFR)

  • Minority stake in Fisher Funds reportedly for sale (NBR)

  • Goldman Lures Hedge Funds to Bet on €22 Billion German Grid Deal (BBG)

  • CRH to sell European Lime Division for $1.1 Billion (BBG)

Other Global

  • Listed healthcare imaging software business Pro Medicus’ two founders began selling down $176 million worth of stock on-market just before midday, after a strong run in the company’s share price. (AFR)

  • JPMorgan launches $70m SG Fleet block trade (AFR)

VC & Fundraising

  • ImpexDocs, a Sydney-headquartered software business that sells export management software solutions to the likes of Inghams and Blackmores, is getting ready to meet investors for the first time. (AFR)

  • Los Angeles-based private equity firm Platinum Equity, fresh from its acquisition of Jeld-Wen Australasia, is actively seeking investors for its A$12 billion buyout fund, Fund VI. The firm has enlisted the services of Sydney's Whiteoak to secure commitments, with a focus on mid-market assets and a fundraising target set to conclude by mid-December. (AFR)

Equity Raises

Australia & New Zealand

  • Westpac to raise $488 million in additional Tier 1 capital (RT)

  • Earlywork, an online careers platform that began to help laid off tech start-up workers find new roles, has closed a A$1.5 million seed funding round, after expanding its services into professional training. (AFR)

Other Global

  • Terms out for pathology business, Healius’ $187m rights issue (AFR)

  • The board of Appen is considering selling the troubled data services business after a 30 per cent drop in revenue, triggering more cost-cutting and a $30 million equity raising. (AFR)

  • Fallen tech darling Appen had its broker, Barrenjoey, drumming up interest in a circa $25 million equity raising on Tuesday morning. (AFR)

  • BlackRock-backed EV charging firm, JOLT Charge seeks fresh funds (AFR)

  • Bubs had its broker, Bell Potter, launch a $28 million raising on Wednesday morning, split evenly across a placement and a share purchase plan. (AFR)

Debt, Restructuring & Bankruptcy

  • Private credit funds are providing a record €4.5 billion ($4.9 billion) loan to back the buyout of Adevinta ASA, marking the latest win for a market that’s increasingly become the go-to funding source for private equity firms. (BBG)

  • With all the focus at Rugby Australia on the boardroom politics which ended the chairmanship of Hamish McLennan, it would be easy to forget the sport is in the midst of a long-running debt process. (AFR)

  • Debt deadline looms for Kerr’s Pyne Gould Corp (NBR)

  • China's Zhongzhi Enterprise Group, a leading wealth manager, told investors it is heavily insolvent with up to US$64 billion in liabilities, threatening to reignite concerns that the country's property debt crisis is spilling over into the broader financial sector. (RT)

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