Markets Back to the Green 🟢

Good Morning,

'Brain drain' warning as number of young people working in NZ drops, Hallenstein Glasson lifts profit 25%, warns of softer sales amid cost-of-living pressures, China’s Economy Improves in September, Satellite Data Shows and BlackRock CEO Larry Fink Sees US 10-Year Yields Heading Above 5%.

Let's jump in.

Before The Bell

Markets

• Markets were up over the past day. The NZX 50 grew +1.1%, to 11,296.43, the ASX 200 increased 0.3% to 7,048.60, the S&P 500 grew +0.6% to 4,299.70 and the Nasdaq gained +0.8%

• Stocks rose on the last trading day of the quarter and global bonds rebounded after dovish-leaning comments from Federal Reserve policymakers and signs that European inflation is finally slowing (BBG)

Earnings and Data

• Clothing retailer Hallenstein Glasson reported a 25% lift in profit last year but warned sales had softened this year as cost-of-living pressures impacted spending (Stuff)

• China’s economy showed signs of a stronger recovery in September, according to several early indicators and a firm analyzing the global economy using satellite data (BBG)

• Inflation in the euro zone fell to its lowest level in two years in September, suggesting the European Central Bank's steady diet of interest rate hikes was succeeding in curbing runaway prices albeit at a growing cost for economic growth (RT)

News Summary

• A "brain drain” of young New Zealanders offshore could become more of a problem as migration into the country slows, economists say (Stuff)

• A financially strapped father-of-five who created a fake company in order to defraud the Government of more than $120,000 in Covid-19 wage subsidies has been sentenced to two years and three months’ imprisonment (Herald)

• Te Pāti Māori candidate Hana Maipi-Clarke's home was broken into twice today in what her party is calling a "politically motivated attack" (1 News)

• The newly appointed grocery commissioner is waiting on a response from Sanitarium, after the Weetbix manufacturer made the call to pull Weetbix from The Warehouse shelves from tomorrow (1 News)

• Australian record petrol prices are likely to head even higher and motorists should get used to paying more than AUD$2 a litre as global oil prices continue to climb, further complicating the fight to tame persistently high inflation (AFR)

• Huawei Takes Revenge as China Catches Up on Semiconductors (BBG)

• Sam Bankman-Fried's upcoming trial on fraud charges marks a major test for a broader crackdown on white collar crime led by Manhattan's top federal prosecutor: Damian Williams (RT)

• Supply cuts from heavyweight crude producers have helped drive oil prices near USD$100 per barrel — fueling some to consider the potential for future demand destruction (CNBC)

• BlackRock Inc.’s CEO Larry Fink expects 10-year Treasury yields to top 5% as shifts in geopolitics and supply chains make inflation more persistent (BBG)

Deal Flow

Investments / M&A

• Aston Martin Lagonda Global Holdings Plc shares jumped after Executive Chairman Lawrence Stroll’s Yew Tree Consortium agreed to boost its stake in the carmaker to 26.2% (BBG)

• Cellnex Telecom SA agreed to sell a stake in its businesses in Denmark and Sweden for about €730 million (USD$772 million) in a drive to cut debt (BBG)

• Cinven agreed to buy out Synlab AG for about €1.27 billion (USD$1.3 billion) two years after listing the German laboratory operator, which has been suffering from reduced demand for its testing facilities (BBG)

• Fenway Sports Group has ended its search for new investment in Liverpool FC by selling a minority stake in the English football club to New York-based private equity firm Dynasty Equity (BBG)

• Microsoft Corp. discussed selling its Bing search engine to Apple Inc. around 2020, a deal that would have replaced Google as the default option on the iPhone maker’s devices, according to people with knowledge of the matter (BBG)

VC & Fundraising

• Blackstone Inc. is looking to raise over USD$10 billion across two private loan funds in Europe and the US, according to people with knowledge of the matter, as the firm seeks to further capitalize on the growth of private credit (BBG)

Daily Picks

• Dad who has been able to take paid parental leave says Kiwis don’t have enough flexibility (Stuff)

• Couple given parking fine for overstaying by 12 minutes as mum gave birth (9 News)

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

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