Hacks, Attacks & Liz Truss Won't Go Away

Good Morning,

Japan seems to be using a new playbook for currency intervention, the New Zealand employment court has ruled that four Uber drivers are employees, Australian household energy bills are expected to rise 50% over the next two years, Australia's CPI increased by 1.8%, Xi Jinping has said China could work with the US, the US economy grew 2.6% in the three months ending in September, the Australian Federal government will hold a republic consultation tour next year, Russia has halted the grain export deal after a drone attack on the Black Sea fleet & Liz Truss has claimed her phone was hacked when she was foreign minister.

Before The Bell

Markets

• It was a week of green for the markets, despite some dismal reporting seasons for big tech, as there is hope the Fed might cool interest rate hikes.

• Australian shares are set to rally on Monday as the Australian S&P 200 is expected to open up 1.4% on the back of the Wall Street rally on Friday. (AFR)

Earnings

• Alphabet missed Q3 EPS and revenue estimates. After slow revenue growth and a 2% decline in YouTube ad revenue. Their stock fell 6%+ in immediate AH trading (CNBC)

• Amazon missed on Q3 EPS and revenue estimates due to the slowdown in their core retail business while also issuing weak Q4 sales guidance; their stock fell ~20% in immediate AH trading (CNBC)

• Ampol is forecasting record full-year profits. However, it posted a $21.3m (AUD) loss in its fuel and infrastructure business activities, excluding refineries and was well short of estimates for Q3 net profit. Its stock price was down 12.6%. (AFR)

• ANZ Bank posted a record full-year profit that rose 20% year on year after strong economic activity.

• Apple beat Q4 EPS and revenue estimates. However, it fell short on iPhone sales amid a rising dollar. It also provided no Q1 guidance citing uncertainty; its stock fell ~2% yesterday. (CNBC)

• Credit Suisse missed on Q3 estimates, posting a $4.09B net loss as the bank continues to be plagued by poor IBD revenues, losses from Russia withdrawal, and scandal-related litigation costs; their shares fell ~20% yesterday. (CNBC)

• McDonald's beat Q3 comparable sales and profit estimates, helped by higher menu prices and increased traffic from inflation-weary customers; their stock rose 3.3% yesterday. (RT)

• Meta's shares plunged after they issued a weak forecast for the fourth quarter.

• Philips beat Q3 EPS estimates. However, it missed revenue estimates amid operational and supply challenges and a ~$1.3B (USD) writedown on its respiratory business due to legal issues. Their stock fell ~1.4% yesterday. (FT)

• Reliance slipped 13.4% as EBIT was down 15%, and the EBIT margin also decreased. (AFR)

• Restaurant Brands' sales for the third quarter were up 32% YOY. Their shares increased by 2.07%. (Herald)

• Shopify beat Q3 revenue estimates and posted a smaller-than-expected loss on their growing tools and payment services and exploitation of offline retail opportunities; their stock gained 17.3% yesterday. (RT)

• Spotify beat Q3 revenue estimates. However, it posted worse-than-expected losses despite a 20% YoY increase in monthly active users and a 13% YoY increase in paid subscribers. This caused their stock to fall 7%+ in immediate AH trading. (CNBC)

• UPS beat Q3 EPS estimates but missed revenue estimates. This was due to softening global demand and declines within its supply chain solutions division. However, it reaffirmed its FY guidance of $102B in revenue. Their stock was relatively unchanged. (CNBC)

• Visa beat Q4 EPS and revenue estimates. After strong consumer payments and e-commerce and an ongoing recovery in cross-border travel. It increased its dividend by 20%. Their stock rose ~2% yesterday. (MW)

News Summary

Monday

• The Commonwealth Bank of Australia is entering the mobile sim space in Australia. (9 News)

• The major Australian banks are considering backing a social impact investment bank with $400m (AUD) in initial capital. (AFR)

• Japan seems to be using a new playbook for currency intervention. (BBG)

Tuesday

• The New Zealand employment court has ruled that four Uber drivers are employees. (Stuff)

• Australian household energy bills are expected to rise 50% over the next two years. (9 News)

• The Australian federal budget has been released, and Treasurer Jim Chalmers has said harder days are to come. (AFR)

• Rishi Sunak is meeting the King to officially become the prime minister of the UK. (BBC)

• US business activity contracted for the fourth consecutive month as the PMI fell from 49.5 to 47.3 in October. (RT)

Wednesday

• ANZ has forecasted that house prices will fall 27% in New Zealand. (Stuff)

• Australia's CPI increased by 1.8% in the September quarter, bringing YOY inflation to 7.3%. This was higher than expected. (AFR)

• US home prices have cooled at a record pace. (CNBC)

• The Hong Kong stock market rout is threatening $15B (USD) of losses on complicated structured products linked to that market. (BBG)

Thursday

• ANZ are probing for mortgage stress. (AFR)

• Rishi Sunak has delayed announcing the UK's economic plan to give himself more time. (BBG)

• Xi Jinping has said China could work with the US before his possible meeting with Biden. (BBG)

Friday

• Air New Zealand has had a cyber breach leading to multiple accounts being compromised. (Stuff)

• Australian tradies' wages are up 10.4%. (9 News)

• The US economy grew 2.6% in the three months ending in September. This was higher than expected. (BBC)

Weekend

• The New Zealand government will spend $61m (NZD) to raise bus drivers' wages. (Stuff)

• New Zealand's alcohol laws are set for change. (Stuff)

• The Green Party in New Zealand has called for a one-off windfall tax on record profits in the banking, energy and supermarket sectors. (Herald)

• The Australian Federal government will hold a republic consultation tour next year. (9 News)

• The Australian Federal government might put a price cap on gas. (AFR)

• Liz Truss has claimed her phone was hacked when she was foreign minister. (BBC)

• Russia has halted the grain export deal after a drone attack on the Black Sea fleet. (BBC)

• The European Central Bank has lifted its rates by 75 basis points. (ECB)

• A crowd crush in Seoul has led to 153 deaths and 82 injuries. (BBC)

• US House of Representatives speaker Nancy Pelosi's husband was attacked with a hammer. (BBC)

• PE firms are being probed in the US about a potential overlap in board seats. (BBG)

Deal Flow

Investments/ M&A

• Elon Musk has completed his $44B (USD) takeover of Twitter. (BBG)

• PT Telkom Indonesia has picked its advisors for the merger of its broadband and wireless business, which will create an entity with a valuation of over $30B (USD). (BBG)

• Toshiba has been valued at $16.1B (USD) in a takeover bid for a consortium led by Japan Industrial Partners. (BBG)

• The Canadian government has imposed new conditions on Rogers Communications' $14.7B (USD) takeover of rival Shaw Communications. (BBG)

• Telefonica, a Spanish telecommunications company and Liberty Global, a multination telecommunications company, are weighing the sale of their 50% stake in a UK towers venture, Cornerstone. Cornerstone is believed to be valued at $11.5B (USD). (BBG)

• Chinese conglomerate Fosun International is planning $11B (USD) in asset sales next year. (BBG)

• Saudi wealth fund PIF has offered to buy a 51% stake in Telecommunications Towers Co. Saudi Telecom Co is assessing the offer and said the entire business had been valued at $5.8B (USD). (BBG)

• UK's competition watchdog is considering the remedies for the $5.1B (USD) Sika-MBBC merger after the companies proposed to sell MBCC's chemical admixture business in the UK, Europe and serval other countries. (RT)

• Gold Fields, a gold mining company, is seeking investor approval for its $5B (USD) deal to acquire Canadian miner Yamana Gold. However, some shareholders have baulked at the premium and structure of the deal. (BBG)

• Aegon, a dutch insurance company, has agreed to merge with the Dutch arm of insurance company A.S.R in a $4.9B (USD) deal. (BBG)

• The Ontario Teachers' Pension Plan Board is considering selling Busy Bees, a UK nursery group. Any deal could value Busy Bees at more than $3.5B (USD). (BBG)

• Blackstone, an alternative investment company, is exploring options, including a sale of its 50% stake in healthcare software company HealthEdge Software. The company is valued at ~$3B (USD). (BBG)

• Swedish investment giant EQT is preparing a $2B (AUD) + bid for Australian chemicals company Ixom. (AFR)

• A unit of Japanese drugmaker Sumitomo has acquired drugmaker Myovant Sciences after increasing its bid to $1.7B (USD). (BBG)

• Mobile donations company Pushpay has received a $1.54B (NZD) takeover offer from PE firm BGH Capital and investment firm Sixth Street. (RNZ)

• Shell has invested $1.5B (USD) in Qatari liquefied gas project North Field South. It will take a 9.375% stake. (BBG)

• Brookfield Business Partners, a US investment firm, is renewing a sale of UK biofuel supplier Greenergy after it received interest from potential buyers. A deal could be worth $1.4B (USD). (BBG)

• NextEra Energy, an American renewable energy company, has spent $1.1B (USD) to acquire ~30 facilities that allow gas produced from landfills to be turned into electricity from PE firm Energy Power Partners. (BBG)

• UserTesting, a digital customer insights business, will be acquired by PE firms Thoma Bravo and Sunstone Partners for ~$1.1B (USD). (BBG)

• Comcast Corp, a US broadcaster, is considering the sale of its German unit Sky Deutschland. It is valued at $1B (USD). (BBG)

• Mike Ashley's retail company Fraser Group has increased its exposure to luxury fashion brand Hugo Boss to $954m (USD). It has also bought a greater than 5% stake in struggling British online fashion retailer ASOS. (RT)

• Suncor Energy will acquire a further 21.3% in the Fort Hills oil sands mine from Teck Resources for $734m (USD). (BBG)

• TotalEnergies buys $580 USD million stake in Brazil Wind and Solar. (BBG)

• Crypto Exchange Binance has committed $500m (USD) in equity financing for Musk's Twitter deal. (BBG)

• K1 Investment Management, a US investment firm, has acquired Australian software company Elmo Software for close to $500m (AUD). (AFR)

• The UK competition watchdog has cleared the London Stock Exchange's $314m (USD) takeover of Quantile. (RT)

• Macquarie Group’s expected to hit reverse on a $NZ220 million long-term deal to own and operate the car parks at SkyCity Entertainment Group’s flagship casino in Auckland. (AFR)

• PE firm General Atlantic has bought a $100m (USD) stake in Mobileye Global, an Intel-controlled self-driving technology company. (BBG)

• Danish football club Bronby has received an offer from US investor group Global Football Holdings. The offer is for 0.55 kroner a share which is an 8.9% premium and values the share capital at $32m (USD). (BBG)

• Mason Stevens, an Australian wealth manager, sold a 38% stake in the company to pre-IPO investors and clients for $55m (AUD). (AFR)

• Germany has allowed China's Cosco to take a 24.9% stake in one of logistics firm HHLA's three-terminal at Germany's largest port in Hamburg. (RT)

• US PE firm Paine Schwartz Partners sought to buy a 15% stake in Australian citrus and berries company Costa Group. They were willing to pay up to a 16.67% premium. (AFR)

• Saudi National Bank is set to become one of Credit Suisse's biggest shareholders with a 9.9% stake. (BBG)

• UBS's equities desk handled a trade of 20m Superloop shares representing a 4% stake in the telco infrastructure company. The shares changed hand at 73¢ a share. (AFR)

• A 5% stake in listed asset manager Pacific Current was cleared at a 3% premium via Barrenjoey's desk. (AFR)

• Potentia Capital, a PE firm, has made a $1.80 (AUD) per share offer for software company Nitro Software. (AFR)

• Air France-KLM said it could be interested in Portuguese airline TAP. Other interested parties could include Lufthansa and IAG, the partner of British Airways. (BBG)

• The UK government has agreed on a deal to sell power supplier Blub to UK-based Octopus Energy. (BBG)

• Apollo and Pimco in talks to buy Credit Suisse's SPG assets. (BBG)

• Dabur India to buy minority stake in spice-maker Badshah Masala. (BBG)

• ESPN sells a majority stake in X Games to an investor group that includes Tony Hawk. (BBG)

• Ford sells stake in Russian business. (BBG)

• CVC said to mull cutting contribution to JIP-led Toshiba bid. (BBG)

• Inditex, the world's biggest textile retailer and the owner of Zara, has sold its Russian business to UAE conglomerate Daher Group. (BBG)

• The Della Valle family has failed to reach the 90% approval target it needed to take luxury shoemaker Tod's private. (RT)

• Canadian pot producer Canopy Growth has acquired three US pot producers. (BBG)

• British Gas has acquired the customers of AvantiGas ON's natural gas business. (RT)

• Asia Pacific Healthcare Group, a New Zealand lab testing service company, has acquired New Zealand biotech company Rako Science. (NBR)

• Australian IT services group Ericom has hired KPMG to sell the business and has started a two-part auction. (AFR)

• Australian headquartered courier, warehousing and logistics provider Direct Couriers is looking for potential buyers. (AFR)

• EU antitrust regulators will rule on French media company Vivendi's proposed acquisition of French peer Lagardere by November 30th. (RT)

• Philip Morris is likely to receive a nod from the EU for its Swedish Match takeover after they offered to sell the targets logistics business. (RT)

• KFC owner Yum has exited Russia and is selling its business there to local franchises Smart Services. (BBG)

• Atos, a French technology company,says it has received interest from multiple bidders for its legacy IT outsourcing unit. (BBG)

• A consortium of Abu Dhabi state-backed entities is considering making an offer for a stake in Dubai-based GEMS Education which is one of the world's largest private school operators. (BBG)

• Cash Converters, a personal finance and secondhand retail company, have tapped up EY to help it identify M&A targets. (AFR)

• Affinity Equity Partners, a PE firm, has called in law firm Corrs Chambers Westgarth to help them with their bid for clinical research company George Clinical. (AFR)

• Container giant Mediterranean Shipping Co has agreed to buy international towage company Rimorchiatori Mediterranei. (BBG)

VC & Fundraising

• Bain Capital, a PE firm, has raised $2B (USD) for its latest tech fund and plans to use part of it to expand its deal-making in Europe. (BBG)

• Square Peg Capital, a VC firm, has closed the largest VC fund in Australia at $861m (AUD). (AFR)

• Bilt Rewards, a New York-based start-up which operates a loyalty program and credit card that converts rent payments to points, has raised $150m (USD) at a $1.5B (USD) valuation. Left Lane Capital led the round. (BBG)

• Music licensing group Songtradr is seeking $52m (AUD) at a 17% valuation cut to their previous raise. (AFR)

• The Coterie, a financial technology platform, has raised $40M (USD) in its latest funding round, which Andreessen Horowitz led. (BBG)

• Dog food start-up Lyka has raised a $30m (AUD) Series B. Led by renowned Israeli entrepreneur and investor Itai Tsiddon. (AFR)

• Fundabl, an emerging Australian fintech, has received $16m (AUD) in a mixture of debt and equity. (AFR)

• Melbourne-based renewable energy retailer start-up Amber has raised $13.5m (AUD) and added insurance company NRMA as an investor in its Series B extension round. (AFR)

• Bay of Plenty based medicinal cannabis firm Eqalis raised $6 million NZD. (NBR)

• Crypto-based web3 fund UpsideDAO has locked up $5m (AUD) in funding. It is backed by Apollo Capital Management, a Melbourne-based digital asset manager, crypto payments operator Banxa, crypto broker Caleb & Brown and digital horse racing game Zed Run. (AFR)

• Christchurch-based waste recycling tech company Zincovery has raised $3m (NZD) in a round led by Icehouse Ventures & Outset Ventures. (NBR)

• GenesisCare, a KKR-backed cancer care company, is seeking to raise additional capital from either new or existing investors. (AFR)

Equity Raises

• Credit Suisse to raise $4B (USD) to fund sweeping overhaul. (BBG)

• Saudi Arabian utility Marfiq formally known as Power and Water Utility Co has priced its IPO at the top end of the range to rise $897m (USD). After the IPO, draw $52.5B (USD) in interest. (BBG)

• Mobileye Global, an Intel-controlled self-driving technology company, has priced its IPO above the range at $21 (USD) per share to raise $861m (USD). (BBG)

  • Mobileye gains 38% in the year's best IPO debut. (BBG)

• Credit Suisse has drawn $500m from investors for its First Boston Spinout. (BBG)

• UK northern sea oil and gas producer Ithaca Energy said it plans to go ahead with its London listing. It could be valued at between $2B & $3B (USD) and raise between $300m & $500m (USD). (RT)

• Global Lithium Resources, a lithium explorer, is launching a $121.5m (AUD) equity raise. It will be done via a $111.4m (AUD) underwritten share placement and a $10.1m (AUD) share purchase plan. (AFR)

• Minemet Recycling, a scrap metal business, is testing funds ahead of a potential $70m (AUD) IPO on the ASX. (AFR)

• Eureka chases a $28m (AUD) equity raising. (AFR)

• Gold Hydrogen, a South Australian green hydrogen play, is seeking $25m (AUD) in an IPO. (AFR)

• Australian-listed bricklaying robot maker FBR is seeking $20m (AUD) via a share placement at a 20% discount. (AFR)

• Tulla Resources, an ASX-listed gold play, is seeking to raise $20m (AUD) in a placement via Petro Capital to fund its portion of the Norseman project. (AFR)

• Australian water treatment and metals treatment company Clean TeQ Water is attempting to raise $5m (AUD) via a two-tranche placement. (AFR)

• Dubai plans to sell a 10% stake in district cooling firm Emirates Central Cooling Systems,known as Empower, via an IPO this year. (BBG)

• PE firm VMG has sold a minority stake to PE firm Bonaccord Capital Partners. (BBG)

• Investment company Welkin China Private Equity has decided to halt its IPO due to macroeconomic uncertainty and market volatility. (BBG)

SPAC

• A unit of Australian miner European Lithium has agreed to merge with the Sizzle SPAC to go public on the Nasdaq. It will give the combined entity a market value of $972m (USD). (BBG)

• Flair Airlines, a low-cost Canadian airline, is in talks to go public via a merger with New Vista Acquisition Corp, a blank cheque company. (BBG)

Debt

• Elon Musk has told debt bankers who are providing $13B (USD) in debt funding that he plans to close the Twitter deal on Friday. (BBG)

• Singapore Airlines have said they will spend $2.7B (USD) to redeem the convertible bonds they issued in 2020. The redemption will occur at a price that is 110.4% of the principal amount. (RT)

• Bain Capital Credit, MS Capital Partners, Jefferies Credit Partners & Carlyle Global Credit Investment Management will tip in $369m (AUD) to back PE firm Thoma Bravo's bid for Australian mapping company Nearmap. (AFR)

• South Korea's Mirae Asset Financial Group is planning to commit $208m (USD) to help finance Elon Musk's $44B (USD) buyout of Twitter. (RT)

• SoftBank backed business View raised $200m (USD) in convertible notes. (BBG)

• ANZ seeking buyers for new bond deal. (AFR)

• The Bank of Queensland has put out a hybrid offer. It launched at a 3.4% to 3.6% margin above swaps for an estimated 6.43% to 6.63% running yield. Insurance Australia Group is expected to be next, and then potentially ANZ. (AFR)

• The bid led Japan Industrial Partners to acquire Toshiba is likely to miss the lending deadline. (RT)

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