Russia Arrests WSJ Reporter

March 31, 2023

Good Morning,

A first case of rabies detected in New Zealand; person dead, Russia’s top security agency has said a reporter for the Wall Street Journal has been arrested on espionage charges, Bernie Sanders grills ex-Starbucks CEO Howard Schultz about alleged union-busting, and the world’s most important oil price is about to be transformed for good.

Let's jump in.

Before The Bell

Markets

  • The benchmark S&P/ASX 200 ended the day up 71.9 points, or 1 per cent, at 7122.3. The All Ords gained 76.40 points, to close firmer by a similar margin (AFR)

  • U.S. stock index futures rose on Thursday as easing fears of a banking crisis shifted the focus back to key consumer spending data due later in the week that could shape expectations for the Federal Reserve's future policy path (RT)

  • European stocks and US equity futures climbed, after a rally on Wall Street Wednesday that pushed the tech-heavy Nasdaq 100 into a bull market amid bets that a peak in interest rates is near and bank turmoil will continue to ease. The dollar declined in the risk-on mood (BBG)

Earnings and Data

  • satellite-imagery and data-analysis company Planet brought in $53 million in revenue during its fiscal fourth quarter, a 43% increase from $37.1 million a year prior (CNBC)

  • After a sharp gain in January, US pending home sales rose just 0.8% in February, according to the National Association of Realtors. The average rate on the popular 30-year fixed mortgage started February right around 6% and ended the month just over 7% (CNBC)

  • Primark's 26,000 retail assistants in Britain are to get an inflation-beating average pay rise of 12% from April 1, the fashion retailer said on Thursday (RT)

News Summary

  • Russia’s top security agency has said a reporter for the Wall Street Journal has been arrested on espionage charges (Guardian)

  • Trans activist Shaneel Lal believes their Young New Zealander of the Year award may receive some online backlash, but said the win is a result of hard work, not to, “fill a diversity quota” (Stuff)

  • First case of rabies detected in New Zealand, person dead (Stuff)

  • The person who tipped tomato juice over anti-trans activist Kellie-Jay Keen-Minshull – also known as Posie Parker – has been charged with common assault (Stuff)

  • Italy’s government has endorsed legislation that would outlaw laboratory-grown food and allow stiff fines for those who make it or sell it, a proposal that is part of Premier Giorgia Meloni's crusade to protect “made in Italy” products (Stuff)

  • Launched in Southland, Carbon Neutral Dipton is an aspirational, farmer-driven project aiming to balance environmental and economic sustainability through innovative on-farm change (Stuff)

  • Two West Coast farms severely flooded when a river broke through a hole in a stopbank last week now face a repair bill of at least $1 million – and with no insurance (Stuff)

  • A chief executive of a failed ticketing company Fortress Information Systems, has lost his appeal for an extension of time, after filing an application 13 months after the deadline (Stuff)

  • The administrator of Auckland-based earthmoving firm AH Construction Services is soon to launch what he said would be the country’s largest-ever auction of civil construction equipment since the start of the pandemic (NBR)

  • The Prime Minister expected the Government’s plan to build a new Waitematā Harbour crossing would have the backing from political parties across the spectrum, but this already looked unlikely (NBR)

  • Rumours of the imminent demise of Today FM, MediaWorks’ ‘middle of the road’ talkback station, appear to be turning into reality this morning with hosts Tova O’Brien and NBR columnist Duncan Garner telling audiences this morning “this is it folks”, after an earlier expletive and a claim of “betrayal” from Garner (NBR)

  • Ark Investment Management CIO Cathie Wood believes the market’s behaviour suggests investors are beginning to “see the other side” of the high inflation and interest rate environment – a promising sign for her portfolios which have underperformed for more than two years (NBR)

  • Bernie Sanders grills ex-Starbucks CEO Howard Schultz about alleged union-busting (CNBC)

  • JetBlue is preparing to trim New York flights in response to FAA staffing shortage, CEO says (CNBC)

  • United Airlines has reached tentative agreements with a union representing nearly 30,000 ground workers, the labor group said Wednesday (CNBC)

  • Australian investors are wagering the next move in interest rates is a hold, and the minority of traders who are backing a rate increase now think it is more likely to happen in May than in April (AFR)

  • China-driven growth seen helping emerging assets despite bank worries (RT)

  • The U.S. Federal Deposit Insurance Corp (FDIC) has informed collapsed lender Signature Bank's (SBNY.O) crypto clients that they have until April 5 to close their accounts and move their money (RT)

  • Bank of Japan Governor Haruhiko Kuroda changed the course of global markets when he unleashed a $3.4 trillion firehose of Japanese cash on the investment world. Now Kazuo Ueda is likely to dismantle his legacy, setting the stage for a flow reversal that risks sending shockwaves through the global economy (BBG)

  • After years of wrangling, the world’s most important oil price is about to be transformed for good, allowing crude supplies from west Texas to help determine the price of millions of barrels a day of petroleum transactions (BBG)

  • British raincoat maker Burberry Group Plc and German fashion brand Hugo Boss AG are among the luxury-goods firms being marked out as potential M&A targets this year in Europe (BBG)

  • Move over, Goldman Sachs Group Inc. Germany’s savings banks are emulating the titans of Wall Street to become an unconventional source of funding for private equity deals (BBG)

  • China’s capacity to manufacture electrolyzers – the equipment used to make green hydrogen – could grow about 20 times by 2028 as costs of the clean energy source plunge, according to CICC (BBG)

Deal Flow

Investments / M&A

  • Struggling buy now, pay later player Zip Co expects to receive a cash inflow close to $20 million in the second half of financial year 2023 as a result of plans to close its Middle East operations and divest its European business, Twisto, alongside its Payflex business in South Africa (AFR)

  • The Clean Energy Finance Corporation is back for a second helping at Artesian’s green and sustainable bond fund, led locally by portfolio manager David Gallagher (AFR)

  • Chad's parliament on Wednesday approved a bill to nationalise oil assets and rights acquired last year by Savannah Energy (SAVES.L) from ExxonMobil's (XOM.N) affiliate, Esso Exploration and Production Chad (RT)

  • ICU Medical Inc (ICUI.O) has teamed up with a private equity firm to challenge GE Healthcare Technologies Inc (GEHC.O) in its pursuit of two medical technology businesses that Medtronic Plc (MDT.N) is seeking to sell for between $8 billion and $9 billion, according to people familiar with the process (RT)

  • Britain said it would investigate Broadcom's (AVGO.O) acquisition of VMware (VMW.N) in depth after the U.S. chipmaker offered no immediate undertakings in response to its concerns about the impact of the $61 billion deal on the server market (RT)

  • Lufthansa CEO says final talks with ITA Airways focused on price (RT)

  • India's Jindal Stainless Ltd (JIST.NS) on Tuesday said it would acquire a 49% stake in Indonesia-based New Yaking Pte. Ltd for $157 million as it seeks to secure a supply of nickel, a key ingredient in the production of stainless steel (RT)

  • Australia’s government wants to create a market to preserve the habitats of koalas, emus and other native fauna — an effort that could be worth A$137 billion ($91.4 billion) annually (BBG)

  • Roark Capital Group is among potential buyers vying for sandwich chain Subway, according to people with knowledge of the matter (BBG)

  • SES SA is in talks to combine with rival Intelsat SA to create a satellite giant that can better compete with billionaire Elon Musk (BBG)

  • Forma Brands, the bankrupt owner of the Morphe makeup brand, reached an agreement with lenders Jefferies Finance LLC and Cerberus Capital Management to be acquired in exchange for $690 million in debt relief, according to a court filing (BBG)

  • Chinese regulators held a meeting with banks to gauge interest in taking over failed Silicon Valley Bank’s stake in a local joint venture in a bid to safeguard the banking system from the US lender’s collapse (BBG)

  • CVC Capital Partners and I Squared Capital are among bidders shortlisted for a stake in Edotco Group Sdn., the wireless tower business of Malaysian telecommunications group Axiata Group Bhd., according to people familiar with the matter (BBG)

  • Nestle SA made an offer to purchase BRF SA’s pet food division for around 1.7 billion reais ($330 million), slightly below the valuation of around 2 billion reais BRF is seeking for the asset, according to people familiar with the matter (BBG)

VC & Fundraising

  • Halter has raised $85 million in Series C funding in an over-subscribed round led by US-based Bessemer Venture Partners alongside existing investors Silicon Valley-based DCVC, Australasian VC firm Blackbird, Rocket Lab founder Peter Beck and Kiwi VC firm Icehouse Ventures (NBR)

  • Qantas, Airbus and the Queensland government will contribute to a $6 million feasibility study to explore the creation of a $400 million ethanol-based sustainable aviation fuel factory in North Queensland (AFR)

  • Sydney-based venture capital investor OneVentures is bankrolling an $18 million funding round for heart device company BiVACOR (AFR)

Equity Raises

  • HMC Capital and HealthCo Healthcare and Wellness REIT opened the books on their equity raisings on Thursday morning, as they look to bed down their $1.2 billion purchase of the 11 hospitals owned by Medical Properties Trust (AFR)

  • Credit Suisse Group AG’s role on a €3 billion ($3.3 billion) initial public offering of private equity-backed skincare group Galderma is under review following the bank’s rescue takeover, people with knowledge of the matter said (BBG)

  • Rasan, a technology company that operates online insurance platform Tameeni, is working with Morgan Stanley and Saudi Fransi Capital for an initial public offering in Riyadh, according to people familiar with the matter (BBG)

  • Saudi Arabia’s First Mills Co. is planning an initial public offering on the local stock exchange that could value the company at as much as $1 billion, according to people familiar with the matter (BBG)

  • Syngenta Caught Out by Eleventh Hour Delay to Mammoth China IPO (BBG)

  • Axiata Group Bhd., Malaysia’s biggest wireless company by revenue, is exploring a strategic review of its businesses with total assets of about 81.6 billion ringgit ($18.4 billion), according to people with knowledge of the matter (BBG)

Daily Picks

  • The Triumph of UBS Is Also the Humbling of Swiss Banking (BBG)

  • A plan to split Alibaba Group Holding Ltd. into six units sent the company’s stock soaring Tuesday while introducing a potential model for global tech giants facing mounting breakup pressures (BBG)

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

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