NZX Gains - "The Calm Before the Storm"

Good Morning,

Rescuers are racing to save people trapped beneath the rubble after a 7.8 magnitude earthquake killed hundreds in Turkey and Syria, China has stated the balloon the Pentagon spotted over Latin America was blown off course, echoing an explanation for a vehicle seen over US military sites that the Biden administration has rejected, Adani Group shares continued their freefall, initially triggered by U.S.-based short-seller Hindenburg Research's Jan. 24 report that accused the Adani group of stock manipulation, and a new tropical cyclone threatens the North Island.

Let's jump in.

Before The Bell

Markets

• Craigs Investment Partners investment director Mark Lister suggests the relative stability of the NZX50 so far in 2023 could be the 'calm before the storm', with earnings reporting season just around the corner. However, he states "It's been a fantastic start to the year - we've had New Zealand shares rising 6% to 7%, while the US is up about 9%" (NBR)

• Dell Technologies Inc. are facing plummeting demand for personal computers, and plan to eliminate about 6,650 jobs, becoming the latest technology company to announce it will let thousands of employees go (BBG)

• The S&P/ASX200 fell 0.25 per cent on Monday, weighed down by losses from the property sector.

• European stocks and US equity futures retreated as an unexpectedly strong US jobs report raised the prospect of more rate hikes from the Federal Reserve. Concern over US-China geopolitical tensions also weighed on sentiment (BBG)

• Bitcoins 2023 rally is stalling after coming tantalisingly close to forming a trading signal last seen when the token was setting records (BBG)

Earnings and Data

• Homeware and sports goods retailer Briscoe Group has reported revenue for the 12 months ended January 29 rose 5.6% on a year ago to $785.9m NZD, although last year's result was affected by various Covid-19 lockdowns (NBR)

• New Zealand's largest general insurer IAG, the ASX-listed company whose brands include AMI, State and NZI Insurance, says it expects the cost of the severe storms and flooding in Auckland and the North Island to exceed A$350 million (NBR)

News Summary

• Hundreds of people are dead and several hundred more injured after a huge earthquake struck south-eastern Turkey, near the Syrian border. The death toll is currently at just over 500, and is likely to rise (BBC)

• Chinese Foreign Ministry spokeswoman Mao Ning told a regular news briefing on Monday that the Chinese balloon found had "mad an unintended entry into the airspace of Latin American countries" and was "for civilian purposes, and is affected by the weather due to limited self-steering capability" (BBG)

• The crisis engulfing the Adani group intensified on Monday as dozens of members of India's main opposition party were detained by police during protests, and parliament was suspended again due to disruptions over the saga (RT)

• Saturated parts of the upper North Island look likely to be able to continue drying out during the week ahead, but a new tropical cyclone could be looming on the horizon (Stuff)

• Five have died on New Zealand roads this Waitangi Day, following a number of crashes in the North Island (Stuff)

Deal Flow

Investments / M&A

• Newcrest shares rallied 9.3 per cent after the world's biggest gold miner, Newmont, proposed a share-based merger with the ASX's largest gold company. The all-scrip deal would give Newcrest shareholders 0.38 shares in Newmont for each Newcrest share they own, and paves the way for securities in the enlarged Newmont to trade in Australia via Chess Depositary Interests (AFR)

• Rich Lister Arthur Laundy and his family have joined the spending bonanza in the hospitality sector after agreeing to pay about $150 million to acquire full ownership of five trophy pubs that they had previously owned jointly with long-term business partner Fraser Short. The hotels are the Watsons Bay Boutique Hotel, Northies at Cronulla, Park House Mona Vale, all in Sydney, the Lennox Head Hotel and Illawong Hotel on the NSW north coast as well as The Farm, a 32ha working farm and hospitality venue near Byron Bay (AFR)

• Adamantem Capital has snapped up a majority stake in the Boost Juice and Betty's Burgers chains in a deal valuing parent company Retail Zoo at around $350 million AUD, becoming the third private owner in a decade (AFR)

VC & Fundraising

• ANZ Bank has its band of investment banks and brokers back together for another trip to capital markets, this time chasing $970 million AUD via the sale of hybrid securities. The deal, slated to launch as early as this week, will replace ANZ Capital Notes 3, which were sold at a 3.6 per cent margin in February 2015 and raised the bank $850 million (AFR)

Daily Picks

• Check out AFR reporter Emma Rapaport unpacking Goldman Sachs' list of stocks most likely to surprise the market this earnings season here

• Stuff has produced a report highlighting the possible reasoning for the strange January weather we have been experiencing. Check it out here

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