The Taxman is Back

August 31, 2022

Good Morning,

The NZ government announced it plans to charge GST on KiwiSaver management fees, the Australian cabinet will discuss shortening the COVID isolation period, Australian building approvals fell 17.2%, the Australian Federal Education Minster proposed a foreign student work visa extension, USD hit a 20 year high, the Fed's quantitative tightening is set to ramp up, US consumer sentiment increases, the Taliban are close to buying Russian gas & Indian company Reliance will develop a new smartphone with Google.

Let's jump in.

Before The Bell

Markets

  • The NZX rose 1.2%, helped by A2 Milks' 6% rise and more positive earnings results. (Stuff)

  • The ASX was up 0.5% as tech and energy stocks made gains. (AFR)

  • The US markets dropped further due to the continued fear around aggressive policy tightening by the Fed, and both averages have now wiped off all gains they had made in August. (RT)

  • The US two-year treasury rate hit a 15-year high as rate hike fears preserve.

  • The UK market was shut due to a bank holiday.

Earnings

  • ASX listed Woodside Energy beat analysts' forecasts and reported an underlying interim profit of $1.82B (USD) and revenue of 5.81B (USD). It also announced a $1.09 (USD) interim dividend, up on the 30¢ (USD) dividend last year. (AFR)

News Summary

  • The NZ government announced it plans to charge GST on KiwiSaver management fees, which would bring in an additional $225m (NZD) a year and reduce total KiwiSaver savings by $103B (NZD) in 2070. (Stuff)

  • The NZ government announced GST would be added to all Uber and Airbnb bookings from April 2024. (Stuff)

  • The NZ government announced public transport would be exempt from fringe benefits tax. (Stuff)

  • Fletcher Living has struck a new joint venture deal with Ngā Maunga Whakahii o Kaipara Whenua Hoko Holdings to build 160 new homes in Albany. (Herald)

  • NZ oat milk firm All Good has entered the South Korean market. (Herald)

  • The Australian cabinet will discuss shortening the COVID isolation period to 5 days at today's meeting. (Guardian)

  • Perth Mint has been probed by the financial crimes regulator. (AFR)

  • The Australian Federal Education Minster proposed a foreign student work visa extension. (AFR)

  • Australian building approvals fell 17.2% in July. (AFR)

  • LIV golf signed up world number two Cameron Smith & fellow Australian Marc Leishman. (Fox)

  • The US dollar hit a 20-year high. (RT)

  • The Fed's quantitative tightening is set to ramp up with the cap on unwinding set to increase to $95B (USD) a month. (BBG)

  • US consumer sentiment increased, and near-term inflation expectations declined. (RT)

  • Honda & LG Energy plan to build a $4.4B EV battery factory in the US. (WSJ)

  • The WHO thinks the Monkeypox outbreak could be eliminated in Europe. (RT)

  • The Taliban are nearing an agreement for the purchase of gas from Russia. (RT)

  • Singapore introduces new work visa rules in an attempt to attract foreign talent. (RT)

  • Indian company Reliance will develop a new smartphone with Google in a $25B (USD) 5g push. (RT)

  • Pakistan's flood disaster could cost the country more than $10B (USD). (BBC)

Deal Flow

Investments/ M&A

  • Woodside, an Australian gas firm, is in talks to sell a $5.7B (USD) stake in its Scarborough gas field. (RT)

  • HAL, a Dutch investment firm, raised its offer for Dutch marine firm Dredger Boskalis to ~4.24B (USD). (BBG)

  • Software firm Concentric and SPAC North Mountain terminated their $1.2B (USD) deal. (RT)

  • Blackstone and burrito maker Zambrero are closing in on exclusive talks. If a deal does take place, it is expected to be at a $500m + (AUD) valuation. (AFR)

  • PE firm Potentia has made a $1.58 (AUD) per share bid for Australian signing software company Nitro Software valuing it at ~400m (AUD). Nitro Software has readied its defence, believing this bid is too low. (AFR & AFR)

  • Ingka Group, the biggest owner of Ikea stores globally, has agreed to buy a 49% stake in 3 Swedish wind farm developments by OX2 for $57.5m (USD). (RT)

  • PE firm Allegro increased its sell down of Best & Less to 11.1% of the company worth $32m (AUD) from 6.1%. (AFR)

  • Walmart plans to take Massmart private, buying the remaining shares at a 53% premium. (BBG)

  • Flower Power, an Australian garden centre chain, is trying to find a buyer or investor.

VC & Fundraising

  • Device, a Sydney cyber start-up, has raised $14m in series A funding from New York-based PE and VC firm Insight Partners. There is also participation from the Australian cybersecurity firm CyberCX. (AFR)

Equity Raises

  • Dicker Data has announced a $50m (AUD) placement via Barronjoey. (AFR)

  • Pro-pac is considering a $50m (AUD) equity raise by the end of the week. (AFR)

  • Bod Australia, a cannabis drug company, is seeking to raise $4.1m (AUD) via a placement and rights offering. (AFR)

  • Alicanto Minerals, a base metal explorer with operations in Sweden, is raising 3m (AUD) via placement. (AFR)

Love our newsletter? Please share it with your friends, family, colleagues or anyone who needs to stay on top of the market. 

Also, if you have any feedback or questions, don't hesitate to hit us up via email or Instagram. 

Reply

or to participate.