Consolidation time?

Author

Sophie Wood
March 29, 2023

Good Morning,

Economists in New Zealand pencil a 25bp OCR hike for next week, Stuart Nash gets fired as a minister, pay freeze on public servants in NZ relaxed, Queensland to limit rent price increases, claims made of a future recession in the US & North Korea shows first evidence of nuclear weapons.

Let's jump in.

Before The Bell

Markets

  • The NZX was up 1.4% on the back of a strong day for the retirement and energy sectors (GR)

  • The ASX rose 1% at the close as the material and energy sectors enjoyed a strong day (AFR)

  • Bitcoin falls by 3.4% from 27,913.06 to 26,970.43 (USD). Decreases in Gold Future of 1.1% and a small decrease in Nasdaq of 0.5% also recorded for the day. Both still sit at an overall increase since the start of the year.

  • Recession vibes linger as economic conditions head south, but latest Stats NZ data shows this is not yet weighing on employment. (NBR)

  • US stock-index futures and European equities struggled for direction Tuesday as concern eased about wider contagion from turmoil in the banking sector. (BBG)

Earnings and Data

  • Private Land and Property announced their Marlborough based vineyards had increased in value by $6.5m (NZD) (NZX)

News Summary

  • Stuart Nash has been sacked as a minister, after Stuff revealed he had emailed business figures, including donors, detailing private Cabinet discussions. (Stuff)

  • The prominent political figure charged with historical sexual assault, including against underage boys, is now facing 9 charges. (Stuff)

  • A new boiler system has cut Christchurch Hospital's carbon emissions by more than 50 percent, Te Whatu Ora Waitaha says. (RNZ)

  • A public pay freeze introduced during the Covid-19 pandemic has been relaxed, after the government received updated advice. (RNZ)

  • A 14-hour standoff between police and a suspect holed-up in a house in Stratford has ended peacefully. (RNZ)

  • Retired Australians are returning to the workforce as the cost of living crisis makes it harder for older people to live off the pension. (9 News)

  • Landlords will only be able to raise rent once a year, under new reforms announced by the Queensland government. (9 News)

  • Santos’ $5.8 billion Barossa gas project in the Timor Sea has emerged as the biggest target of the escalated restrictions on gas projects, under Labor’s deal with the Greens, because of its high carbon content. (AFR)

  • North Korea has revealed small nuclear warheads, which it says can be fitted on to short-range missiles. (BBC)

  • An uneasy calm is returning to Israel after Prime Minister Benjamin Netanyahu announced he would delay a key part of controversial plans to overhaul the justice system. (BBC)

  • A deadly fire has spread through a migrant processing centre in Ciudad Juárez on the US-Mexico border. (BBC)

  • South Korea needs to adopt an “emergency mindset” to reverse its fertility rate that ranks as the lowest in the world, its president said, calling for new initiatives to fix past policies that he sees as broken. (BBG)

  • Doubleline Capital’s Jeffrey Gundlach said on CNBC that he expects a US recession will start in a few months, and that the Federal Reserve will need to respond “very dramatically.” (BBG)

Deal Flow

Investments / M&A

  • Alibaba Group Holding Ltd. plans to split its $220B (USD) empire into six units that will individually raise funds and explore initial public offerings, the biggest overhaul of China’s online commerce leader since its inception more than two decades ago. (BBG)

  • Brookfield Asset Management Inc. will prioritize wind power projects over solar farms as it begins a $20B (AUD) renewables investment blitz in Australia following the takeover of utility Origin Energy (BBG)

  • Liontown Resources have rejected a $5.5B (AUD) bid from lithium royalty Albemarle (AFR)

  • Suntory Beverage and Food are targeting $5B (USD) worth of M&A activity in the next few years (BBG)

  • Saudi Aramco is buying a 10% stake in Chinese refinery giant Rongsheng Petrochemical for $3.6B (USD) (BBG)

  • BP and Abu Dhabi National Oil plan to take private Israel's NewMed Energy via a joint venture. The deal is expected to be worth ~$2B (USD) (BBG)

  • London PR firm Camarco has been bought by US firm Apco for ~$24.5m (USD) in the latest corporate communications consolation play (BBG)

  • United Malt have received a $5 a share bid from Soufflet Malteries (AFR)

  • The Australian Competition and Consumer Commission is investigating Transurban Group's plan to buy a 55% stake in Horizon Roads (AFR)

  • First Citizens BancShares said it would take on the deposits and loans of failed Silicon Valley Bank (BBG)

  • Greymouth Gas Turangi has today been granted an offshore petroleum exploration permit following the High Court ordering a review. (NBR)

VC & Fundraising

  • NZ pet food company Huntaway is seeking $1m (NZD) for international growth (NBR)

  • Canva co-founder Cliff Obrecht says employees are still clamouring to get their hands on the design company’s private stock, in a signal that slumping valuations and a lack of any public float on the horizon have not dampened the unicorn’s secondary market value. (AFR)

Equity Raises

  • Ares is considering raising $400m (USD) for a new SPAC (BBG)

  • Singapore's state-owned investment firm Temask Holdings is considering an IPO for Advanced MedTech Holdings after sale talks stalled. The IPO could raise between $200m and $300m (USD) (BBG)

  • Chemicals group Redox have started IPO meetings in Melbourne (AFR)

Debt

  • ANZ Banking Group’s first big debt markets trip in a post-Silicon Valley World has turned out to be a thumping hit, with investor bidding for more than $6B (AUD) worth of bonds to let the bank print $4.25B (AUD) at slightly tighter pricing than it had expected (AFR)

  • PE firm QIC has raised $4.5B (AUD) in debt from seven different banks for their acquisition of Origin (AFR)

Daily Picks

  • A student sues polytech for $10m after career "came crashing to a halt" due to vaccine mandates. Read more here.

  • Martine Vik Magnussen: Billionaire’s son admits role in death to BBC. See this article for more.

  • If you want to read more on America's Zombie Banks, see this article by NBR.

Job Board

New Zealand

  • BDO graduate and intern roles - Apply here

  • Bell Gully summer intern roles - Apply here

  • Buddle Findlay summer clerkships - Apply here

  • Chapman Tripp winter and summer clerkships and clerk roles - Apply here

  • Deloitte intern roles - Apply here

  • Deloitte graduate roles - Apply here

  • DLA Piper insight programme,summer clerkships and clerk roles - Apply here

  • EY graduate and intern roles - Apply here

  • Forsyth Barr associate analyst - Apply here

  • Forsyth Barr associate analyst (global equities) - Apply here

  • Grant Thornton graduate roles - Apply here

  • KPMG graduate and intern roles - Apply here

  • PWC graduate and intern roles - Apply here

  • Russell McVeagh summer clerkships - Apply here

  • Russell McVeagh clerks - 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

The Daily Deck is sponsored by Industrial Equity, LLC

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