Aussie Sharemarket Shrinks

Author

Euan Marshall
June 06, 2023

Good Morning,

Former Prime Minister Jacinda Ardern was awarded one of New Zealand’s top honours, Australia’s sharemarket is set to shrink this year for the first time since 2005, inflation in Turkey has decreased to the lowest rate since 2021, and at least one Pak’nSave supermarket is trialling the use of body cameras as retail crime continues to rise.

Let's jump in.

Before The Bell

Markets

  • The accelerating rate of takeovers of ASX-listed companies and a two-year drought of new floats means Australia’s sharemarket will shrink this year for the first time since 2005 to the tune of $43 billion AUD (AFR)

  • The ASX200 jumped 1 per cent to 7216.3 on Monday, as gains across the mining and consumer discretionary sectors offset losses by tech stocks (AFR)

  • Market watchers are shifting their attention to the United States for any clues that inflation pressures are easing, as the dust all but settles on the local corporate reporting season (NBR)

  • A strong U.S. economy is giving an unexpected boost to the U.S. dollar, frustrating bearish investors betting on its decline (RT)

  • Asian shares surged, extending a rally in global equities that defies concerns about risks to economic growth and elevated interest rates (AFR)

  • Morgan Stanley anticipates a sudden pullback in corporate earnings will slam the brakes on a US equity rally, a call at odds with Wall Street estimates (BBG)

  • Turkey’s inflation decelerated to the slowest since 2021 as President Recep Tayyip Erdogan made good on a pre-election promise to give natural gas to households for free last month (BBG)

News Summary

  • Former Prime Minister Jacinda Ardern received one of New Zealand’s top honours, recognising her efforts for leading the country through the COVID-19 crisis, the Christchurch mosque attacks and the White Island volcanic eruption (RT)

  • The United States scrambled F-16 fighter jets in a supersonic chase of a light aircraft with an unresponsive pilot that violated airspace around Washington D.C. and later crashed into the mountains of Virginia (RT)

  • Swedish retailer Ikea broke ground on its first New Zealand location in the Auckland suburb of Mount Wellington this morning, however its senior management isn’t sweating about uncertainty in the retail market and decreased consumer spending (NBR)

  • Flooding collapsed a gold mine in southern Venezuela, killing at least 12 miners, local authorities say (RT)

  • Saudi Arabia will make a deep cut to its output in July on top of a broader OPEC+ deal to limit supply into 2024 as the group seeks to boost flagging oil prices (RT)

  • New vehicle sales in Australia jumped 12 per cent to a record for May as a big backlog of deliveries arrived. Two ute brands were the biggest sellers, followed by the Tesla Model Y (AFR)

  • President Joe Biden’s signature of legislation suspending the federal debt ceiling has given the Treasury Department the green light to resume net new debt issuance after months of disruption (BBG)

  • The coders who maintain Bitcoin’s blockchain are clashing over whether to stamp out the meme tokens swarming the network (BBG)

  • At least one Pak’nSave is trialling the use of body cameras as retail crime continues to rise (Stuff)

Deal Flow

Investments / M&A

  • UBS expects to complete its takeover of Credit Suisse “as early as June 12”, which will create a giant Swiss bank with a balance sheet of $1.6 trillion following a government-backed rescue earlier this year (RT)

  • Mid-market private equity investor Greenwich Capital Partners and industry specialist Conplant have acquired Sydney’s 24/7 Fuels, which is expecting to top $50 million AUD in revenue this financial year (AFR)

  • Pre-IPO investor Bombora Investment Management says it has stumbled on a hidden gem, ploughing $2 million AUD into autism management tool Autism 360, a provider on the Australian National Disability Insurance Scheme (AFR)

  • Brazilian travel operator CVC said on Friday it has reached an agreement with its founder for a 75 million reais ($15.13 million USD) investment in the company, as well as electing a new CEO (RT)

Equity Raises

  • Brookfield India Real Estate Investment Trust has appointed eight investment banks for its planned equity raising of around $400 million USD, and is targeting the deal’s closure by July (RT)

Debt

  • Byju’s, India’s most valuable startup, plans to make a quarterly interest payment of about $40 million USD on a loan that has been at the center of the beleaguered firm’s financial troubles, according to people familiar with the matter (BBG)

Daily Picks

  • Have NZ house prices really hit the floor? Check out this analysis by Stuff to find out

Job Board

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