The NZD Fights Headwinds Along With AIR NZ

September 28, 2022

Good Morning,

Bearish sentiment is high worldwide, the NZ dollar has hit its lowest levels since 2009, National has a slight advantage over Labour in the latest polls, the Australian federal government has announced the details of the proposed national anti-corruption commission, the Bank of England has said it will not hesitate to hike interest rates, Nord Stream 2 is leaking, Japan has bid farewell to its assassinated former prime minister Shinzo Abe & the new iPhone is being produced in India not China.

Let's jump in.

Before The Bell

Markets

  • The New Zealand market dropped on the back of sell-offs in the US.

  • The US 2Y treasury passed 4.3%, its highest level since 2007, and the US 10Y was at its highest level since 2010.

  • The NZ Dollar was trading at its lowest levels against the USD since 2009.

Earnings

  • Synlait Milk has returned to profit. It reported a profit of $38.5m (NZD) and revenue of $1.66B (NZD). (NBR)

News Summary

  • The NZ dollar has hit its lowest levels against the USD since 2009. (Stuff)

  • Christchurch Casino will bypass NZ law by setting up an online gambling platform in Malta. (Stuff)

  • The New Zealand government will allow a further 3,000 seasonal workers into the country. (Stuff)

  • Air New Zealand is struggling with its new Auckland-New York flight due to strong than predicted winds. (BBG)

  • The latest political poll in New Zealand has National at a slight advantage over Labour. (Stuff)

  • New changes in state law in Australia have been made to allow driver's license numbers to be changed for Optus victims. (9 News)

  • The Australian federal government has announced the details of the proposed national anti-corruption commission. (9 News)

  • The royal cypher for King Charles has been released. (BBC)

  • The Bank of England has said it will not hesitate to hike interest rates to curb inflation. (BBC)

  • The market chaos in the UK has forced UK lenders to pull mortgage products. (RT)

  • The Russian gas pipeline Nord Stream 2 is leaking into the Baltic Sea. (BBC)

  • Mazda will follow Toyota and cease production in Russia. (Stuff)

  • Putin is set to announce the annexation of the Russian-occupied regions of Ukraine. (BBC)

  • Putin has granted Russian Citizenship to whistleblower Edward Snowden. (AX)

  • Chicago Fed president Charles Evans has said the Fed would need to raise rates by another 1% this year. (RT)

  • Nasa has got a direct hit on an asteroid via its flying spacecraft. (BBC)

  • Japan has bid farewell to its assassinated former prime minister Shinzo Abe via a state funeral. (BBC)

  • The new iPhone is being produced in India, not China. (BBC)

  • Qatar has conscripted civilians for compulsory military service to operate security checkpoints at World Cup stadiums. (RT)

  • Magnus Carlsen, the world chess champion, has accused fellow player Hans Niemann of cheating. (BBC)

Deal Flow

Investments/ M&A

  • Indonesian conglomerate Astra is weighing up the options for its life insurance unit. A sale could fetch a valuation of as much as $500m (USD). (BBG)

  • American Airlines and JetBlue are heading to court to fight an antitrust battle about their joint venture against the US DOJ. (BBG)

  • A consortium led by former Berkshire Hathaway executive David Sokol and Canadian investment firm Fairfax has raised its bid to $4.4B (USD) for Atlas Corp, the holding company in charge of shipping firm Seaspan Corp. (BBG)

  • GEMS, a Dubai school operator, is considering its options. This includes the potential sale of a controlling stake at a $6B (USD) valuation. (BBG)

  • Energy Capital Partners, a PE firm, has bought Biffa, a UK waste management firm, for $1.4B (USD). (BBG)

  • Philippines' Globe Telecom has sold 1,350 telecoms towers for $340m (USD) to Phil-Tower Consortium. It will lease the towers back. (RT)

  • India's Torrent Pharmaceuticals will acquire Sequoia-backed Indian dermatology company Curatio Health in a $245m (USD) deal. (RT)

  • Indicative bids were in for Infratil & NZ Super owned RetireAustralia. The bids were understood to be much higher than the $618m (AUD) the two paid for the business in 2014. Bidders included AusUnity and ASX-listed Lendlease. Bids are expected to be shortlisted next week and a binding deal signed before the end of the year. (AFR)

  • Australian superannuation fund Aware has become a lead investor in Mexican food chain Guzman y Gomez's $100m (AUD) sell down at a $1.35B (AUD) valuation. (AFR)

  • NZ-listed Scales Corporation is investing $27m (AUD) into its protein division. Part of this investment is buying a 50% stake in Fayman International, a meat exporting company. (NBR)

  • Thiess, an Australian mining company, has gone unconditional on its offer for MACA. (AFR)

VC & Fundraising

  • Real estate fundie Valore Investment Partners is seeking to raise $1B (AUD) for a new fund. It started with an initial $250m (AUD) raise. (AFR)

  • Geely's EV Truck brand Farizon Auto is said to be seeking a $300m (USD) funding round. (BBG)

  • Sydney fintech start-up Shaype has raised a $33m (AUD) series C round led by Regal Funds Management. (AFR)

  • Checkmate, an online shopping start-up, has raised $7.7m (AUD). (AFR)

Equity Raises

  • Oman oil driller Abraj Energy a unit of Oman energy firm OQ SAOC has hired banks for its ~$500m (USD) IPO that is planned for 2023. (BBG)

  • Hydrogen Fuel Cell Maker SinoSynergy is considering an IPO on the Hong Kong stock exchange as early as next year. The IPO would aim to raise a few hundred dollars. (BBG)

  • WA gold explorer Yandal Resources is seeking to raise $4.7m (AUD) at a 20% discount. (AFR)

  • The Porsche IPO is likely to be priced at the top end of the initial range. (BBG)

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