J Powell's Massacre becomes Global

August 30, 2022

Good Morning,

The market saw red after J Powell's warnings, electric vehicles could soon charge faster than your phone, fixed mortgage rates may have peaked, according to Kiwibank, Australian retail sales smashed expectations, Elon Musk is focused on getting self-driving Teslas ready for a wide-release by year-end, store closures are at the lowest level in 7 years in the UK, and Max Verstappen came from 14th to win the Belgian Gran Prix.

Let's jump in.

Before The Bell

Markets

  • NZ and Aussie markets dropped following J Powell's Speech on Friday. Aussie markets suffered their worst single-day decline in two months. (AFR)

  • US and UK markets hadn't yet closed for the first time this week. US markets were set to fall even lower after futures fell on Monday before the opening bell. (RT)

  • Asian markets were also down on Monday again due to J Powell's Speech. (BBC)

Earnings

  • A2 Milk shares jumped 9.7% after announcing a $150m (NZD) share buyback, net profit growth and an increase in revenue of 20%. (NBR)

  • NZX-listed, Restaurant brands fell 4.8% after net profits after tax decreased by 56%. (NBR)

  • Tyro was up 11% after guiding for greater operating leverage this financial year. (AFR)

  • Fortescue dropped 4.93% despite better-than-expected results. Shareholders will receive a $1.21 (AUD) final divided. (AFR)

  • Adore Beauty tumbled down 10.6% despite record revenue as they warned that higher costs and reduced consumer sentiment would lead to squeezed margin growth. (AFR)

News Summary

  • Electric vehicles could soon charge faster than your phone. (Stuff)

  • Purex Manufacture Essity is threatening employees who are locked out with more than $500k (NZD) in damages. (Stuff)

  • The auditor general has raised concerns that the NZ government is unaware of how many ineligible people received the cost of living payment. (Stuff)

  • Sam Uffindell's suspend for a few more weeks due to a delay in the investigation. (Stuff)

  • Fixed mortgage rates may have peaked, according to Kiwibank. (Stuff)

  • Australian retail sales smashed expectations, with a record $34.7B (AUD) spent in July. (AFR)

  • Nasa cancels new moon rocket launch due to engine problems. (BBC)

  • Elon Musk is focused on getting self-driving Teslas ready for a wide release by year-end. (RT)

  • Store closures are at the lowest level in 7 years in the UK. (BBC)

  • EU minister warns of 5-10 awful winters if gas prices can not be lowered. (BBC)

  • A change in the law in Brazil has meant Brazilian football clubs can seek outside investment. (RT)

  • Tottenham beat Nottingham Forest 2-0 in the English Premier League.

  • Max Verstappen came from 14th to win the Belgian Gran Prix.

Deal Flow

Investments/ M&A

  • Private equity firm PAG Asia Capital is in talks to acquire Patties Foods in a deal worth ~$350-400m (AUD). (AFR)

  • Contract miner Thiess has increased its bid for MACA to $1.075 per share. Valuing MACA at $367.3m (AUD). (AFR)

  • Ampol, an Australian fuels company, is selling a share of 51 Z stations to Charter Hall for ~$132m (NZD). (Herald)

  • Dual-listed (NZX & ASX) Evolve Education is closing in on a deal to sell its NZ centres to PE firm Anchorage Capital Partners. (AFR)

  • Sony will acquire the mobile game business Savage Games Studio for an undisclosed amount. (RT)

VC & Fundraising

  • Matt Berriman has raised a seed-focused $50m (AUD) fund called RealVC. (AFR)

  • Off-Piste Provisions, an NZ-based plant protein company, is attempting to raise $15m (NZD). (NBR)

  • Xero founder Rod Drury is back with a new tech venture called Atomic.io. It has just closed a $4.5m (AUD) series A funding round led by NZ VC Movac. (AFR)

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