Fonterra Predict Milk Price Drop 📉

Author

Jay Geris
August 05, 2023

Good Morning,

Fonterra slashes milk price forecast, Trump pleads not guilty of plotting to overturn election loss, India imposed restrictions on the imports of personal computers and tablets, and US economy adds 187,000 July jobs in sign labour market is cooling.

Let's jump in.

Before The Bell

Markets

  • Markets were down over the past two days. The NZX 50 lost -0.2%, to 11,940.44 the ASX 200 decreased -0.4% to 7,354.60, the S&P 500 dropped -1.6% to 4,576.73 and the Nasdaq decreased -2.3%. All treasury bond yields increased.

  • The New Zealand sharemarket slipped but held up against declining overseas markets on optimism local interest rates may have peaked (Stuff)

Earnings and Data

  • Apple Inc. grew revenue in China a surprisingly strong 8% while setting a record for Indian iPhone sales, bright spots in an otherwise disappointing quarterly check-in from the world’s most valuable company (BBG)

  • Japan’s state pension fund, the world’s largest, posted a record gain of ÂĄ18.98 trillion (USD$133 billion) during the three months through June on returns from domestic stocks and overseas bonds (BBG)

  • The U.S. economy maintained a moderate pace of job growth in July, but solid wage gains and a decline in the unemployment rate pointed to continued tightness in labour market conditions (RT)

  • Danish shipping giant Maersk on Friday reported a sharp fall in second-quarter earnings on the back of plunging container rates, but still managed to beat market expectations and upgrade its full-year guidance (CNBC)

News Summary

  • Fonterra has slashed its forecast milk price for the 2023/24 season by $1 as demand slumps (Stuff)

  • This year’s winners of The Arts Foundation Te Tumu Toi Laureate Awards will receive a $5000 bonus thanks to a new partnership (Stuff)

  • Genesis Energy said an outage at its Unit 5 combined cycle gas plant at Huntly would cost $20-$30 million (Herald)

  • China will scrap import tariffs on Australian barley from Aug. 5 in the latest sign of improving ties between the two countries (BBG)

  • China’s financial regulator asked some banks to report additional foreign-exchange transaction data on top of its routine quarterly requests, according to people familiar with the matter, adding to earlier surveys on currency trading and capital flows (BBG)

  • India’s top court stayed Rahul Gandhi’s conviction in a high-stakes defamation case, enabling the opposition leader to seek his reinstatement as a lawmaker and to contest general elections due next year (BBG)

  • Two US Navy sailors have been arrested on charges of providing sensitive US military information to China in exchange for money in what the Justice Department called a relentless effort by China to get US secrets (BBG)

  • Donald Trump pleaded not guilty on Thursday to charges he orchestrated a plot to try to overturn his 2020 election loss in what U.S. prosecutors call an unprecedented effort by the then-president to undermine the pillars of American democracy (RT)

  • Huawei on Friday announced the latest version of its mobile operating system HarmonyOS 4 and an enhanced A.I assistant, as the embattled giant ramps up efforts to re-establish strength for its smartphone business (CNBC)

  • India imposed restrictions on the imports of personal computers and tablets, citing security reasons and the need to boost domestic manufacturing — in a move that could impact Samsung and Apple hardware sales in one of the world’s largest markets for consumer electronics (CNBC)

Deal Flow

Investments / M&A

  • ANZ Group Holdings Ltd.’s A$4.9 billion (USD$3.2 billion) deal to buy Suncorp Group Ltd.’s banking arm was blocked by the Australian regulator, citing competition concerns (BBG)

  • Shearer’s Foods, a snack maker backed by Ontario Teachers’ Pension Plan, is exploring a sale that could fetch about USD$3 billion including debt (BBG)

  • Ares Management is investing an extra USD$75 million in Inter Miami CF, the Major League Soccer club that’s riding high following the arrival of superstar Lionel Messi (BBG)

  • Ontario Teachers’ Pension Plan Board is considering making a USD$100 million investment in Indian e-commerce logistics startup Xpressbees (BBG)

VC & Fundraising

  • Four-year-old telco GigaComm, which is run and backed by former Macquarie Capital suits, is sounding investors for a chunky raising to bankroll the infrastructure it needs to get into a million Australian homes (AFR)

  • ASX-listed lithium, copper and gold explorer Mont Royal Resources was in front of fund managers on Thursday, seeking to raise AUD$2 million (AFR)

  • Juul Labs Inc., the e-cigarette company that almost went bankrupt last year, is seeking to raise about USD$1 billion (BBG)

Equity Raises

  • Crown LNG Holdings, which develops liquefied natural gas terminals to operate in harsh weather conditions, on Thursday agreed to go public in New York through a merger with a blank check firm, in a deal that values the combined company at USD$685 million (RT)

Daily Pick

  • Inside the exhibition of 500 Barbie dolls you can see for free (Stuff)

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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