All Eyes on Jackson Hole

August 27, 2022

Good Morning,

Worst quality export kiwifruit in decades, Judge orders release of Trump search court papers, Tourism Holdings wants Government to invest more in tourism, Adrian Orr says to prepare for 'anaemic' economic growth, South Korea records the world's lowest birth rate, Audi to join Formula 1 and Stephen Perofeta to make his All Blacks debut.

Let's jump in.

Before The Bell

Markets

  • The Kiwi markets were down slightly as all eyes are on Jackson Hole ahead of Jerome Powell's keynote speech.

  • The ASX was up after another busy day of earnings.

Earnings

  • Just Life Group (JLG) net profit down 32% despite company directors being satisfied with overall results (NBR)

  • Port of Tauranga (POT) recorded a 8.7% increase in net profit up to $111.3 million NZD (NBR)

  • Delegat (DGL) set a new case sales record as the winemaker recorded net profit of $63 million NZD (NBR)

  • Tourism Holdings (THL) recorded another loss but have seen it narrowed compared to the previous year (NZX)

  • Wesfarmers (WES) increased its final dividends despite a fall in group profits to $2.35 billion AUD (AFR)

  • Ramsay Health Care's (RHC) revenue down 3% to $13.75 billion AUD (AFR)

  • PolyNovo (PNV) made strides even through limited hospital access as revenue surged to $41.9 million AUD (AFR)

News Summary

  • Auckland dams reach 100% capacity for the first time since 2017 (Stuff)

  • The UK faces an 80% spike in energy bills, the country's energy regulator announced (Stuff)

  • Kiwifruit quality concerning for the industry (Stuff)

  • Tourism Holdings wants the Government to invest more in tourism (NBR)

  • Adrian Orr says to prepare for anaemic economic growth speaking from the global central banking conference in Jackson Hole (NBR)

  • The cost of building is still rising despite housing slowdown (NBR)

  • Biden student-loan forgiveness raises inflation concerns again (WSJ)

  • Sony will raise the price of its PlayStation 5 console across all major non-US markets by up to 20% (WSJ)

  • US and China are nearing agreement to allow US regulators to travel to Hong Kong and  inspect audit records of US-listed Chinese companies (WSJ)

  • South Korea records world's lowest fertility rate (BBC)

  • Judge orders release of Trump's redacted search court papers (BBC)

  • Audi to join Formula 1 in 2026 (BBC)

  • Warriors thumped by the Panthers in penultimate game of the season (Stuff)

Deal Flow

Investments/ M&A

  • Healthcare company Ramsay rejected KKR-led alternative bid to its original $14B AUD takeover offer (AFR)

  • A consortium led by Palisade Investment Partners walks away from deal to buy Ports of Geelong (AFR)

  • PE firm Silver Lake acquired 10 Minor League Baseball teams from talent agency and live-events business Endeavor Group for $280M USD; teams include affiliates of the Yankees, Dodgers and Braves (BBG)

  • Monumental Sports & Entertainment and Carlyle co-founder David Rubenstein are both weighing a bid for MLB team Washington Nationals (valued at $2.23B USD) and interested in acquiring Baltimore Orioles (valued at $1.63B USD) (BBG)

VC & Fundraising

  • Andrew Forrest invests in rare earths developer Hastings Technology Metals (AFR)

Equity Raises 

  • Splitit asks investors to pour $8 million AUD into the business (AFR)

Editors' Note

  • Big week of earnings across Australasia ended relatively positive on the whole. By the time this newsletter goes out, J Pow would have spoken at Jackson Hole and the markets will have to find the next best thing to obsess over.

  • Another big weekend of sport, Premier League, Formula 1 and of course the All Blacks. Will be good to see Liam Lawson get a ride in the Alphatauri and Perofeta make his debut off the bench.

  • Song of the Day: Not a song but if you're into UK garage give this a listen https://www.youtube.com/watch?v=pPYo9-hIecc

  • As always, stay safe this weekend and have fun storming the castle.

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