Play Lotto for Cyclone Gabrielle 🎰

Good Morning,

The death toll in a migrant shipwreck near the southern Italian coast has risen to 61, an investment business linked to a Russian billionaire has failed in its court action against Westpac Bank, Downer EDI has been blasted by one of its biggest investors after another profit warning caused its stock to plummet 24 per cent on Monday, PM Chris Hipkins launches a Lotto fundraiser for Cyclone Gabrielle and Michael Hill reports an increase in net profits despite losses to ram raiders.

Let's jump in.

Before The Bell

Markets

• The aftermath of Covid has masked concrete trends from the swath of New Zealand corporate results reported over the past two weeks, but overall numbers have been "average to soggy, but they weren't dramatically bad," said Forsyth Barr analyst Aaron Ibbotson (NBR)

• Global markets are back to inflation watching. Just as global economic growth worries ease and labour markets remain tight, price trends have become the main focus for investors. A slew of strong U.S. economic data has reinforced the view that interest rates will stay higher-for-longer (RT)

• Shares in Downer EDI had their biggest one-day decline in more than a decade on Monday, dragging the S&P/ASX200 to a seven-week low as investors dumped the services group (AFR)

• Oil prices fell in volatile trade on Monday, as a stronger U.S. dollar and fears of recession risks offset gains arising from Russia's plans to deepen oil supply cuts (RT)

• Westpac has forecast Australian interest rates will be cut seven times over 2024 and 2025, but not before more hikes heap further pain on households (9News)

• Two and a half years after Chinese trade restrictions hit Australian products from coal to wine, a diplomatic thaw between Beijing and Canberra has raised hopes for a revival of exports and spurred businesses to take steps to rebuild ties (RT)

Earnings and Data

• Jeweller Michael Hill has reported a net rise in profits of 1.2 per cent from $37.1 million NZD to $37.6 million NZD despite crime impacting earnings (NZ Herald)

• Power company Genesis Energy reported a 42 per cent lift in its operating earnings for the first half - boosted by increased hydro-power generation - and raised its earnings outlook for the year to June. The company delivered earnings before interest, tax, depreciation, amortisation and financial instruments of $298 million NZD, up from $210m in the previous comparative period (NZ Herald)

News Summary

• Prime Minister Chris Hipkins launched an international appeal and Lotto fundraiser for the Cyclone Gabrielle recovery (Stuff)

• A total of 61 people have been found dead so far after a wooden sailing boat carrying migrants to Europe crashed and sank on Sunday (RT)

• A New Zealand investment business linked to Russian billionaire Alexander Abramov has failed in its court action against Westpac Bank to stop it closing its bank account (NBR)

• Wall Street is clamping down on ChatGPT as a slew of global investment banks impose restrictions on the fast-growing technology that generates text in response to a short prompt (BBG)

• Bitcoin's subsiding two-month rally contains a warning for investors if history is any guide (BBG)

• Tesla's plant in Brandenburg, Germany is now producing 4,000 cars per week, three weeks ahead of schedule (RT)

• China said on Monday it sought dialogue and peace for Ukraine despite U.S. warnings that it might be considering weapon supplies for its ally Russia's invasion (RT)

Deal Flow

Investments / M&A

• Pfizer Inc is in early talks to acquire drugmaker Seagen Inc, the Wall Street Journal reported late on Sunday, citing people familiar with the matter (RT)

• Solomon Lew's Premier Investments has snaffled another 3 per cent stake in the department store chain Myer Holdings to take its holding towards 26 per cent (AFR)

• Geelong battery-making start-up Recharge Industries has closed the deal to buy Britishvolt, the struggling owner of a massive $6.7 billion AUD gigafactory scheme in northern England (AFR)

VC & Fundraising

• South Australian copper and gold explorer Hillgrove Resources was asking fundies to chip in $35 million AUD on Monday morning, with expectations of a US commodity trader popping up with a 19.9 per cent shareholding via the raise (AFR)

Equity Raises

• New York-based investor New Holland, which is best known for running Dutch pension manager APG's hedge fund kitty, is getting ready for meets and greets with deep-pocketed Aussies. New Holland is understood to have hired Sydney's Channel Capital to show its Tactical Alpha strategy to local investors (AFR)

Debt

• Commonwealth Bank of Australia has kicked off syndication of a $225 million AUD debt facility to fund Retail Zoo's buyout, and will make its first pitch to banks and other potential lenders this week (AFR)

Daily Picks

• NBR has produced a report highlighting the complex relationship between minimum wage and inflation. Check it out here

Job Board

New Zealand

• Craigs Investment Partners Investment Banking Intern

  • To apply, please send an email including a cover letter, your CV and your academic transcript as attachments to [email protected] by 12pm on Friday, 3rd March 2023

• Forsyth Barr Investment Banking Summer Internship. To apply, please email a cover letter, your CV and your university transcript by 12pm, Friday 3rd March 2023, to: [email protected](please ensure that the subject line reads ‘Investment Banking Internship’)

• Goldman Sachs Investment Banking Intern

  • Apply here by 4th March

• Jarden Investment Banking Intern and Grad Role

  • Apply here

• Macquarie Intern role

  • Apply here

• Murray & Co Investment Banking Intern and Grad Roles

  • Apply here for internships

  • Apply here for graduate roles

• UBS Investment Banking Intern

  • Apply here

Australia

• Goldman Sachs Investment Banking Intern

  • Apply here by 18th July for Melbourne and Perth and August 1 for Sydney

• Macquaire gradate roles

  • Apply here

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