US Debt Deal Reached 🤝

Author

Jay Geris
May 30, 2023

Good Morning,

3 arrested, over $1m in MDMA seized in Christchurch drug bust, PwC boss to take action as battle to release names heats up, World’s Most Valuable Chipmaker Nvidia Unveils More AI Products After $184 Billion Rally, and Biden, McCarthy reach final deal to prevent default, now must sell to Congress.

Let's jump in.

Before The Bell

Markets

  • Markets were up over the weekend. The NZX 50 gained +0.9%, to 11,935.65, the ASX 200 increased +0.9% to 7,217.40, the S&P 500 grew +1.3% to 4,205.45 and the Nasdaq gained +2.2%.

  • Markets wrap: Construction slowdown, rising debt and improving car sales (Stuff)

  • Oil prices rose on Monday after U.S. leaders reached a tentative debt ceiling deal, possibly averting a default in the world's largest economy and oil consumer, although concerns about further interest rate hikes capped gains (RT)

  • Bitcoin climbed to the highest level in more than two weeks amid a boost to investor sentiment from a deal on raising the US debt limit (BBG)

  • Philippine headline inflation could ease early next year below the central bank’s goal of 2% to 4%, Governor Felipe Medalla said, giving monetary authorities leeway on monetary policy (BBG)

Earnings and Data

  • Smartpay Holdings has reported a 62% increase in annual revenue and a 300% rise in net profit after tax, on the back of strong revenues from its Australian business (NBR)

News Summary

  • Three men have been arrested and MDMA valued at more than $1 million has been seized following a police operation in Christchurch last week (1 News)

  • An extra $11 million NZD will help extend the Government's "incredibly popular" fog cannon subsidy scheme for retailers, Prime Minister Chris Hipkins has announced (1 News)

  • The battle to release the names of PwC staff implicated in the tax scandal is set to intensify this week as the global consulting giant prepares to make its first significant announcement since effectively losing any further business with the Commonwealth (Stuff)

  • Western Australia Premier Mark McGowan has announced he is stepping down as premier and member for Rockingham after six years in the state's top job, stating he is "exhausted" (9 News)

  • E-commerce giant Amazon will launch a hiring blitz for more than 1000 seasonal workers across Australia as the company prepares for its busy mid-year sales period (9 News)

  • People selling unwanted or used items on websites such as Facebook Marketplace and Gumtree are at increased risk of being targeted by scammers. The warning came as the National Australia Bank (NAB) released new customer data today, showing goods and services scams have increased 66 per cent in the past three months. (9 News)

  • In a two-hour presentation in Taiwan, Nvidia Corp. Chief Executive Officer Jensen Huang unveiled a new batch of products and services tied to artificial intelligence, looking to capitalise on a frenzy that has made his company the world’s most valuable chipmaker (BBG)

  • Singapore President Halimah Yacob will not contest this year’s presidential election, she said in a Facebook post Monday (BBG)

  • Japan put its ballistic missile defences on alert on Monday and warned that it would shoot down any projectile that threatened its territory after North Korea notified Japan of a satellite launch between May 31 and June 11 (RT)

  • Chinese consumer spending won’t return to pre-Covid levels anytime soon, a problem for international brands such as Starbucks, Morgan Stanley said in a report Sunday (CNBC)

  • With days to spare before a potential first-ever government default, President Joe Biden and House Speaker Kevin McCarthy reached final agreement Sunday on a deal to raise the nation’s debt ceiling and worked to ensure enough Republican and Democratic votes to pass the measure in the coming week (CNBC)

  • A review of the Intelligence and Security Act has recommended a radical shake-up of the parliamentary committee that oversees the country’s intelligence services (NBR)

  • Go Airlines India Ltd. plans to raise salaries of captains by 100,000 rupees ($1,211 USD) a month and by 50,000 rupees for first officers as it tries to salvage its operations after filing for insolvency on May 2 (BBG)

Deal Flow

Investments / M&A

  • Boeing Co working on a deal to sell at least 150,737 Max jetliners to Saudi Arabian startup Riyadh Air. (RT)

  • Wesfarmers in talks to acquire online prescriptions biz InstantScripts (AFR)

  • British online estate agent Purplebricks Group Plc said on Friday it had received an indicative takeover proposal from one of its top shareholders Lecram Holdings (RT)

  • French tyre maker Michelin said on Friday it was selling its Russia Tyre Manufacturing Company (MRTMC) and Camso CIS in Russia to Power International Tires, a tyre distributor in the country (RT)

  • Investors in Aster DM Healthcare are in talks to sell a 30% stake in the company's India business for about $300 million USD, two sources with direct knowledge said, the latest potential deal in India's booming healthcare sector (RT)

  • German utility EnBW has sold around a quarter of its high-voltage transmission grid TransnetBW to a savings banks-led consortium for around 1 billion euros ($1.1 billion USD) (RT)

  • Liberty Mutual Insurance Co. agreed to sell its Latin American business to HDI International AG for about €1.38 billion ($1.48 billion USD) as it seeks to refocus on its core operations in the US (BBG)

  • ConocoPhillips exercised its right to acquire TotalEnergies SE’s 50% stake in the Surmont oil-sands field for as much as $3.33 billion USD, giving it full control of the Canadian operation and thwarting efforts by Suncor Energy Inc. to buy into the site (BBG)

VC & Fundraising

  • Japan Startup Gitai Raises $30 Million to Build Space Robot Workforce (BBG)

Equity Raises

  • Cummins Inc. spinoff Atmus Filtration Technologies Inc. rose 11% in its trading debut after raising $275 million USD in an initial public offering priced in the middle of a marketed range (BBG)

Daily Picks

  • Most New Zealanders are in favour of a shift to a four-day working week, the latest 1News Kantar Public Poll shows (1 News)

  • Tauranga CBD street parking free on Saturdays, after 5pm on weekdays (Herald)

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - 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

The Daily Deck is sponsored by Industrial Equity, LLC

Reply

or to participate.