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Tech-Heavy NAZDAQ Performs
Admin
May 01, 2023
Good Morning,
Inland revenue study finds the richest Kiwis pay around 10% tax after all income and GST is included, LVMH is closing in on Tesla for ninth spot on the list of the world’s biggest companies by market capitalisation, the Treasury estimates the repair bill from Cyclone Gabrielle and the Auckland floods that preceded it in January will add up to between $9 billion and $14.5b and Amazon proposes job cuts in NZ but is still committed to opening its $7.5b data centre next year.
Let’s jump in!
Before The Bell
Markets
A quarter into record layoffs, investors in U.S tech giants will scrutinise if the cost cuts boosted profits to their satisfaction, while the companies emphasise how artificial intelligence will be their next growth driver (RT)
A big splurge in spending in China after Beijing lifted COVID-19 lockdowns will help cushion quarterly results of the world's biggest companies, investors say, even as forecasts suggest the United States and Europe are heading into a corporate recession (RT)
Professional investors see the US dollar sliding even further from last year's two-decade highs, as the market has underpriced the Federal Reserve's oncoming easing cycle (BBG)
OPEC's share of India's oil imports fell at the fastest pace in 2022/23 to the lowest in at least 22 years, as intake of cheaper Russian oil surged, data obtained from industry sources show, and the major producers' share could shrink further this year. (RT)
U.S. equity futures gained as tech giants Alphabet Inc and Microsoft Corp publish strong earnings (BBG)
U.S. treasury yields climb as investors awaited the release of key economic data and assessed the impact it may have on interest rate policy (CNBC)
European shares ended higher on Thursday supported by positive earnings, especially reports from Deutsche Bank and Barclays that eased concerns about the banking sector's health, while Denmark's SimCorp surged on a deal with Deutsche Boerse (RT)
The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong update from Facebook parent Meta Platforms outweighed concerns over slowing U.S. economic growth (RT)
Spurred by Wall Street, the New Zealand sharemarket rebounded nearly one per cent, and Hallenstein Glasson reached a 12-month high on the likelihood that it will be included in the NZX top 50 (Herald)
Earnings & Data
Restaurant Brands total sales were up 12% to $308.6 million for the first quarter ended March 31 2023, from $275.4m year-on-year. The increase was largely attributed to price increases implemented across all markets, and sales recovery from the impact of lockdowns (NBR)
Nestle reported slightly better-than-expected first-quarter sales on Tuesday as the world's biggest packaged food company hiked prices to offset its tepid sales volume. (RT)
First Republic Bank shares sank more than 20% after the closing bell on Monday as it said deposits plunged by more than $100 billion in the first quarter and it was exploring options such as restructuring its balance sheet. (RT)
Citigroup's Asia wealth revenue surged 20% in the first quarter of 2023, backed by investment gains, insurance revenue and a jump in new private banking clients, according to a company spokesperson. (RT)
Synlait milk shares fall 27% to record low following earnings forecast downgrade (Stuff)
Microsoft shares jump 8% in after-market trading as profits exceed Wall Street estimates (RT)
Google parent Alphabet reports revenue and earnings exceeded expectations (CNBC)
Puma SE reports increasing sales in Europe and the first growth in China for the last two years, reflected in the 14% increase in revenue (BBG)
Spotify's shares increase 5% following the number of monthly active listeners exceeding estimates and increasing to 515 million (RT)
Meta, Facebook and Instagram's parent firm, has reported a profit of $5.7bn (£4.6bn) for the first quarter of this year, surpassing expectations for a period in which many jobs were cut (BBC)
Taiwan’s economy plunged into recession after shrinking at the fastest pace since the global financial crisis, a sign of how the drop-off in global demand for chips has shown little sign of abating (BBG)
Huawei Technologies Co.’s profit plunged 46% in the first quarter while revenue barely grew, as the Chinese telecom equipment maker spent heavily on research to try and get around US technology sanctions (BBG)
News Summary
Monday
Australia will speed up efforts to buy longer range missiles to counter the growing threat from China, a major defence review says. It warns the country can no longer be protected by its geographic location in the "missile age" (BBC)
The Reserve Bank has decided to incentivise commercial bank involvement in the Government’s planned Business Growth Fund by reducing the equity backing normally required for risky investments (NBR)
Investors in Restaurant Brands have devoured good news from the fast food investment company with relish. Their total sales for the first three months of the year jumped by $33.2 million NZD as its customers were forced to swallow price rises (Stuff)
Tuesday
The New Zealand Defence Force is facing an “unbelievable surge’ in people leaving the organisation. (Herald)
LVMH is closing in on Tesla for ninth spot on the list of the world’s biggest companies by market capitalisation, only days after entering the top 10. (AFR)
Xi Jinping had been on a winning streak of late, successfully rebuffing US attempts to portray China as a threat to the global order. Then an envoy in France instantly revived all those fears. (BBG)
Wednesday
Thursday
A former student has failed in his bid to claim $10.5 million in compensation from a Christchurch polytech over its Covid-19 vaccine policy (Stuff)
The Treasury estimates the repair bill from Cyclone Gabrielle and the Auckland floods that preceded it in January will add up to between $9 billion and $14.5b (Stuff)
Qantas will be able to maintain strong profits in the domestic market because Virgin Australia’s private equity owners will not allow fare-cutting to get out of hand ahead of its planned share market listing, the airline’s largest institutional investor says (AFR)
Friday
Of the $12.6 million earmarked to help fight homelessness this year, just a tiny fraction has been spent - only $900,000 (1 News)
Amazon proposes job cuts in NZ but is still committed to opening its $7.5b data centre next year (Stuff)
Russia hurled missiles at cities across Ukraine as people slept early on Friday, killing at least 12 people in the first large-scale air strikes in nearly two months (RT)
Weekend
Deal Flow
Investments / M&A
Australia & New Zealand
Whiteware maker Haier, owner of Fisher & Paykel Appliances, has acquired further land in Auckland for $47.3 million, with the transaction settling on March 7 (NBR)
Shares in Australia's largest funerals group, InvoCare, plummeted almost 17 per cent in early trading on the ASX on Monday after private equity group TPG officially withdrew its $1.8 billion AUD buyout proposal (AFR)
The $1.6 billion takeover of digital donation service Pushpay looks to have finally made it over the line after shareholders voted in favour of a higher offer (Stuff)
The NSW government has picked a consortium including Endeavour Energy and Lendlease’s Cappella Capital as its preferred bidder for the first Renewable Energy Zone in Central-West Orana in a tender tipped to be worth more than $5 billion (AFR)
Fortescue Metals Group is set to acquire the country’s largest sheep property, Western Australia’s Rawlinna Station, from the MacLachlan family’s Jumbuck Pastoral and consider using it for renewable energy generation (AFR)
Key Global
Netflix Inc said on Tuesday it plans to invest $2.5 billion in South Korea over the next four years to produce Korean TV series, movies and unscripted shows, doubling the amount the company has invested in the market since 2016. (RT)
General Motors Co and Samsung SDI are set to announce as early as Tuesday the plan to build a joint venture electric vehicle battery manufacturing plant in the U.S., as the automaker diversifies its component suppliers, sources said. (RT)
First Republic Bank is considering divesting $50 billion to $100 billion of assets (BBG)
Burgundy Diamond Mines reduces its underwritten placement from $231 million to $126 million, as the current owners of Ekati hold on to 19.9% of the company (AFR)
Vonovia is set to sell its $1.1 billion minority stake in its Suedewo residential portfolio to U.S. investor Appolo (RT)
India's Godrej Consumer Products Ltd(GOCP.NS) said on Thursday it is acquiring the consumer goods business of Raymond Consumer Care Ltd for $345 million, bolstering its portfolio of brands in the country's fast-growing retail market (RT)
Binance has called off its $1.3 billion deal to buy assets of bankrupt crypto lender Voyager Digital, citing a "hostile and uncertain regulatory climate (RT)
Deutsche Bank said on Friday it had agreed to buy Numis Corp, a London-based institutional stockbroker and corporate adviser, for about 410 million pounds ($511.2 million USD) as the German company deepens links with the UK corporate client segment (RT)
Singapore sovereign wealth fund GIC said on Friday it would buy a portfolio of six logistics assets in Japan for more than $800 million from Blackstone Inc reflecting a strong appetite for logistics real estate (RT)
Suncor Energy Inc. is set to boost its carbon-intensive oil sand reserves after agreeing to buy TotalEnergies SE’s Canada unit in a C$5.5 billion ($4 billion USD) all-cash deal (BBG)
VC & Fundraising
Vendanta Biosciences raises $106.5 million in funding to develop a potential new category of oral therapies (FN)
Finland based electric vehicle charging provider Virta, raises $94 million in total funding led by Jolt Capital (FN)
Sydney start-up Eucalyptus seems to have hit on to a winner with its weight-loss brand Juniper, with venture capital investors loosening their purse strings to fork out $50 million at a $560 million post-money valuation (AFR)
Pinecone Systems Inc., a startup whose platform supports artificial intelligence software, has raised $100 million USD in a funding round that values the company at $750 million USD (BBG)
Equity Raises
Key Global
Following a profitable year, Drax Group Plc announces its plan to buy back up to $186 million worth of shares (BBG)
Sinochem Holdings Corp. is exploring ways to salvage a planned Shanghai listing of its unit Syngenta Group, including a smaller initial public offering for the agrochemical giant, people with knowledge of the matter said (BBG)
Kenvue Inc. is serving as a spearhead to reopen the US IPO market as gains by its publicly traded peers show that the company can buck the macro headwinds holding back other potential listings (BBG)
Personal training and connected hardware company Interactive Strength Inc. has priced its US initial public offering at the top of a marketed range, according to people familiar with the matter (BBG)
Debt, Restructuring & Bankruptcy
Mitsubishi UFJ Financial Group Inc. said its brokerage venture sold Credit Suisse Group AG’s riskiest bonds to help clients diversify their portfolios, as the firm tries to explain what led to $700 million USD of losses for customers (BBG)
Job Board
New Zealand
Australia
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