Government Funds NZ Ski Season

Author

Euan Marshall
June 27, 2023

Good Morning,

The Government has announced $6 million in funding for food banks and $5 million for the Mt Ruapehu ski season, Aston Martin has struck a deal that adds EV producer Lucid to its band of shareholders, U.S. banks are expected to fare well in their annual health checks and crypto-currency exchange Binance is reeling under the impact of an increased regulatory scrutiny.

Let's jump in.

Before The Bell

Markets

  • The New Zealand sharemarket weakened amid concerns that interest rates may stay higher for longer, dampening the appeal of equities (Stuff)

  • The Australian sharemarket fell for its fourth consecutive session, as nine out of 11 sectors recorded losses (AFR)

  • Investors in the Asia session were circumspect after an extraordinary weekend in Russia, briefly bidding up oil a little bit but otherwise standing back to wait for clarity (RT)

  • The rapid adoption of generative artificial intelligence has boosted markets this year, after but after the initial euphoria, investors are waking up to the possible risks, including the need to be highly selective in stock-picking (RT)

  • Crypto exchange platform Binance is reeling under the impact of an increased regulatory scrutiny, with the exchange platform’s market share languishing near a one-year low, according to data from research-firm Kaiko (BBG)

  • European equities dropped for a sixth day on Monday after falling the most since mid-March last week, as investors mulled the risks from an attempted armed uprising in Russia and focused on the outlook for economic growth and monetary policy (BBG)

  • China’s consumer-driven recovery is showing more signs of losing momentum as spending slows on everything from holiday travel to cars and homes, adding to expectations for more stimulus to support the economy (AFR)

Earnings and Data

  • ANZ’s Business Outlook Index is due out on Thursday afternoon. The index increased to -31.1 in May, up from -43.8 in April, but still marking the 23rd straight month of negative readings (NBR)

News Summary

  • The Government has announced a $6 million top-up for food banks just as across-the-board cost-of-living subsidies are about to end (NBR)

  • Having previously been determined not to underwrite a ski season at Mt Ruapehu, the Government has announced $5 million of funding to ensure it can go ahead (NBR)

  • H&J Smith has confirmed it will close its department store doors for the last time later this year (NBR)

  • Surveys of consumer and business confidence are expected to show “more of the same” this week thanks to continued high costs and low demand (NBR)

  • Australian wholesale distributor Metcash has announced shoppers at its IGA and Foodland stores are trading down from fresh ingredients to cheaper frozen goods, and the wholesalers is still witnessing suppliers push price increases through despite some input costs easing (AFR)

  • Moscow has lifted counter-terror measures put in place during mercenary leader Yevgeny Prigozhin’s short-lived-mutiny (BBG)

  • Over 150 new build-to-rent apartments developed through a partnership between a KiwiSaver provider and a home building company have started to hit the Auckland market (Stuff)

  • Australia’s Federal Housing Minister Julie Collins has signalled support for further regulatory “interventions” in the short term rental market, arguing Airbnb is reducing the availability of homes in regional and tourism areas (AFR)

  • PwC Australia staff who are found to have acted improperly in a scandal over the leaking of government tax plans will face “severe” consequences, acting chief executive Kristin Stubbins told a state parliament inquiry on Monday (AFR)

  • Big U.S. lenders are expected to show they have ample capital to weather any fresh turmoil in the banking sector during this week’s Federal Reserve health checks (RT)

Deal Flow

Investments / M&A

  • Luxury carmaker Aston Martin has struck an EV supply deal that adds US company Lucid to its growing band of shareholders (BBG)

  • Berkshire Hathaway, the investment company owned by Warren Buffett, has sold 2.53 million Hong Kong-listed shares of electric vehicle maker BYD for $86.3 million USD (RT)

VC & Fundraising

  • Syft Technologies has again warned of “a material loss” for its 2023 financial year, and is now asking investors to approve a convertible note issuance to raise a further $5.5 million in capital (NBR)

  • Elon Musk’s SpaceX is offering to sell insider shares at a price that would raise the closely held company’s valuation to about $150 billion USD, according to people familiar with the matter (BBG)

Equity Raises

  • Black Pearl Group has closed a $2.2 million capital raise via an over-subscribed private placement at 42 cents per share (NBR)

Daily Picks

  • Check out Bloomberg’s coverage of the worlds most (and least) liveable cities in 2023 here 

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - Apply here

Australia

  • Citadel Securities graduate and intern roles - Apply here

  • Goldman Sachs Investment Banking Intern - Apply here

  • IMC graduate and intern roles - Apply here

  • Jarden

    • Graduate role - Apply here

    • Summer internships - Apply here

  • Macquarie graduate roles - Apply here

  • Optiver

    • Graduate role - Apply here

    • Internships - Apply here

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