Credit 'Lehman' Suisse 🇨🇭🤯

Good Morning,

Thousands of university staff in New Zealand are striking, Air New Zealand has had a phenomenal start to the year, Optus has commissioned Deloitte to conduct an independent forensic review, Australia and New Zealand's reserves banks are expected to increase rates by 50 basis points this week, Kwasi Kwarteng has u-turned on plans to scrap the 45% tax rate, Credit Suisse Group's credit risk rose to record highs & Drax, a UK power station owner has been cutting down primary forests in Canada.

Let's jump in.

Before The Bell

Markets

• Australian and New Zealand markets were down as investors await expected rate rises by central banks today and Wednesday, respectively. (AFR)

  • Both countries' reserve banks are expected to lift rates by 50 basis points.

• Oil prices have jumped on the back of OPEC+ weighing output cuts. (RT)

• Chinese property stocks and bonds railed after an $85B (USD) lifeline was reported. (BBG)

• Global stocks fell to a two-year low amid concerns hawkish policy from central banks will spark a recession and earnings contraction. (BBG)

News Summary

• Thousands of university staff in New Zealand are striking as wages have not kept up with inflation. (Stuff)

• The healthy homes initiative has helped 142,000 people, according to New Zealand PM Jacinda Ardern. (Stuff)

• Air New Zealand has had a phenomenal start to the year and is heading for a significant profit. (Stuff)

• According to a world index, New Zealand's brand is now worth $440B (NZD), up 11% from pre-pandemic levels. (Stuff)

• ASB has given away a $150m (NZD) farm it owns in Auckland to Mount Albert Grammar. (Herald)

• The president of the NZ Law Society has resigned after aggressive and irrational behaviour. (NBR)

• The New Zealand Institute of Economics Research's shadow board expects a 50-point basis rate by the RBNZ on Wednesday. (NBR)

• Optus has commissioned Deloitte to conduct an independent forensic review. (9 News)

• The RBA is likely to lift rates by 50 basis points in their meeting today. (AFR)

• Australian property prices have fallen a further 1.4% in September. (Guardian)

• Kwasi Kwarteng has u-turned on plans to scrap the 45% tax rate. (BBC)

• Drax, a UK power station owner who has received billions in government subsidies for green energy initiatives, has been cutting down primary forests in Canada. (BBC)

• Credit Suisse Group's credit risk rose to record highs, and the stock price hit a low. (BBG)

• Turkey's inflation has hit a 24-year high of 84.63% YOY after a 3.08% MOM rise. (RT)

• Lula and Bolsonaro are to face a run-off in the Brazilian election. (BBC)

Deal Flow

Investments/ M&A

• Vodafone and CK Hutchison, the owner of Three UK, have accelerated talks of combining their UK business. A deal could be worth ~$6.7B (USD). (RT)

• Prosus, a global internet group, has cancelled its $4.7B (USD) acquisition of Indian payments firm BillDesk after conditions were not met. (BBG)

• Sumitomo, a Japanese conglomerate, has offered to buy the remaining shares of pharmaceutical company Myovant at $22.75 (USD), implying a $2.4B (USD) equity value. (BBG)

• Australian mid-market buyout firm Next Capital has purchased online comparison business Compare Club in a deal worth upwards of $100m (AUD). (AFR)

• Chinese automotive company Zhejiang Geely has bought a 7.6% stake in Aston Martin. (RT)

• Affinity Equity, a pan-Asian PE firm, is interested in at timezone and bowling alleys owner TEEG. The Carlyle Group are also said to be interested. (AFR)

• Australian-based sales software group Bigtincan has made an offer for software company LiveTiles. It is believed to be a cash or scrip deal offering 8¢ (AUD) a share which is a 50% premium. It would value the equity at $70m (AUD). (AFR)

• ASX-listed VC firm Powerhouse Ventures have had its shares suspended after it failed to provide audited financial statements. The CEO said the statements should be with the exchange by or before the 5th of October. (NBR)

• Sydney buyout firm Crescent Capital is looking for an exit out of Hall Contracting. (AFR)

VC & Fundraising

• Venture capital firm 83North has raised $400m (USD) for a new fund. (BBG)

• An Australian couple who founded the Global Voluntary Disclosure Project has received $3m (AUD) to roll out their smartwatches across the US. These watches allow disabled and vulnerable people to share data with first responders. They have also hired Clinton Capital Partners to raise a $10m (AUD) series A next year. (AFR)

• Entrepreneur Anna Mowbray has invested in NZ healthcare startup Health Now which allows consumers to split the payment of medical visits. (Herald)

Debt 

• Carsales have raised a record $1.6B (AUD) debt package. It is split into 18-month, three and five-year facilities. The debt package was from a syndicate of 10 banks with Mizuho, SMBC and BNP Paribas joining the seven existing banks, which are made up of the Australian big four, MUFG, HSBC & the Bank of China. (AFR)

• Candian seafood company Cooke Inc has raised a senior debt facility worth $957.5m (AUD). Two-thirds will be used to complete the acquisition of Australian salmon farmer Tassel Group. Norway's DNB Bank is leading the debt facility along with Rabobank and Export Development Canada. (AFR)

• QIC's Pacific Energy, a remote power play, has a new debt facility worth $860m (AUD). It refinanced its existing $500m debt facility with Westpac, Canadian Imperial Bank of Commerce and Industrial and the Commercial Bank of China into a larger multi-tranched loan. Mizuho and the Bank of China provided additional capital. The debt facility has $460m (AUD) maturing in 2025 and $400m (AUD) maturing in 2027. (AFR)

• NZX listed publican Good Spirits has amended its loan with Nomura to extend the term to the end of 2023. The deal is dependent on Good Spirits hitting certain milestones. (NBR)

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