Will Orr's Term be Long Orr Short

November 09, 2022

Good Morning,

Adrian Orr has been reappointed as the Reserve Bank of New Zealand governor, New Zealand wage inflation expectations are at a record 5.34%, Medibank hackers have threatened to release the data within 24 hours, consumer sentiment has plummeted to recession levels in Australia, US consumer confidence in the housing market has hit a new low, voting for the US midterms has begun & Meta is expected to announce large job cuts as it follows Twitter.

Let's jump in.

Before The Bell

Markets

  • The New Zealand market was dragged down after low-than-expected consumer sentiment across the Tasman and China's persistence with its Zero covid policy.

  • The ASX gained after Macquaire increased its price target for lithium. (AFR)

  • All three major indexes in the US increased. Today's attention is all on the Midterms.

  • PT Global Digital Niaga, the owner of the Indonesian e-commerce group Blibli, has ended its first day of trading flat. (BBG)

Earnings

  • Berkshire Hathaway reported a ~$2.7B Q3 loss on investment drop. However, it saw operating income jump 20% to $7.8B; its stock rose 1.52% yesterday. (FT)

  • James Hardie reported a 22% rise in profits after tax for the half year and a 10% increase in global net sales in Q2. However, it downgraded full-year profit expectations by around 10% due to a sharp downturn in new home construction. Its shares fell 13.72%. (AFR)

  • Lyft missed its Q3 EPS, revenue and active rider estimates as the ride-hailing industry struggles to hit pre-pandemic levels. Its stock fell 14%+ in AH trading after gaining ~3% during the day. (YH)

  • Check out these links if you want more information on how KiwiSaver funds have been performing. (Stuff & NBR)

News Summary

  • Adrian Orr has been reappointed as the Reserve Bank of New Zealand governor despite opposition from National, other political parties and economists. (Stuff)

  • Christchurch Cup day was back to normal for the first time in two years. (Stuff)

  • New Zealand's anti-money laundering regime will be tweaked. (Stuff)

  • The New Zealand government has said they have no plans to introduce annual boosters against Covid 19 for most people. (Stuff)

  • A business survey in New Zealand conducted by the reserve bank has wage inflation expectations at a record 5.34%. (NBR)

  • The Medibank hackers have threatened to release the data within 24 hours. (9 News)

  • Consumer sentiment has plummeted to recession levels in Australia. (AFR)

  • German automotive supplier Schaeffler has axed 1,300 jobs. (RT)

  • The EU has raised concerns about the US inflation reduction act, saying it has breached international trade rules. (CNBC)

  • Voting for the US midterms has begun. (BBC)

  • The US has confirmed it is in communication with the Kremlin. (BBC)

  • US consumer confidence in the housing market has hit a new low. (CNBC)

  • Canadian Prime Minister Justin Trudeau has accused China of aggressive election interference. (BBC)

  • Meta is expected to announce large job cuts as it follows Twitter. (BBC)

Deal Flow

Investments/ M&A

  • Philip Morris International, a tobacco company, has received approval from its shareholders to acquire nicotine pouch maker Swedish Match for $16B (USD). (BBG)

  • PE Firm Japan Industrial Partners has submitted a $15B (USD) bid for Toshiba without bank banking. (RT)

  • VillageMD, a primary-care provider which Walgreens control, has agreed to acquire fellow primary-care provider Summit Health-CityMD in an $8.9B (USD) deal. (BBG)

  • Ritchie Bros Auctioneers, a Canadian industrial asset disposal and management company, has agreed to buy US auto retailer IAA in a ~$6.2B (USD) deal. (BBG)

  • Fenway Sports Group Holdings, who are the US owners of Liverpool FC, is considering selling the UK football club. A deal could fetch more than $5B (USD). (BBG)

  • T-Mobile US, a mobile telecommunications company, is seeking to create a fibre-optic venture through either a joint venture or commercial partnership. A joint venture could be worth $4B (USD). (BBG)

  • Saudi Arabia's Public Investment Fund is among the potential bidders for the network towers being sold by Qatari telecom firm Ooredoo QPSC. A deal could be worth between $3B and $5B (USD). (BBG)

  • Ouster and Velodyne will merge in an all-stock deal. Ouster and Velodyne currently compete in producing LiDAR sensors. The merger will give the new entity a market cap of ~$400m (USD). (BBG)

  • Ireland has sold a 5% stake in the Allied Irish Banks for ~$396m (USD). (RT)

  • PE firm Adamantem Capital is in talks to acquire Bain Capital's Retail Zoo, which owns Boost Juice and Betty's Burgers. A deal is expected to be worth upwards of $300m (AUD). (AFR)

  • Clough Group, an Australian engineering and construction company owned by South African firm Murray & Roberts, has been sold to Italy's Webuild for $350m (AUD). It leaves Webuild in charge of building hydropower project Snowy 2.0. (AFR)

  • Gap, a US apparel retailer, will sell its greater China units to e-commerce firm Baozun for $40m (USD). (RT)

  • Qantas Airways has sold a 12.1% stake in travel agent Helloworld for $33m (AUD) via Jarden. (AFR)

  • Capricorn Energy, a British oil and gas exploration and development company, is sticking with its proposed merger with Israeli oil and gas exploration, development and production company NewMed Energy despite investors coming out against the deal. (BBG)

  • Greece will cancel the sale of its Alexandroupolis port. (RT)

  • The German government is likely to block the Chinese takeover of Elmos' chip production. (RT)

  • Renault, a French multinational automobile manufacturer, and Geely, a Chinese multinational automobile manufacturer, have agreed to launch a new equally held joint venture that will supply gasoline engines and hybrid technology. (RT)

VC & Fundraising

  • Zitcha, a retail media platform startup, has received $4.7m (AUD) in a funding round led by OIF Ventures which valued the company at $14.7m (AUD). (AFR)

  • Darwinium, an Australian cybersecurity firm set up by Alisdair Faulkner, the co-founder of fellow Australian cybersecurity firm ThreatMetrix has raised $10m (AUD). The funding round was led by Blackbird Ventures and AirTree Ventures. (AFR)

  • Software startup Sauce has raised a $2.3m (AUD) seed round led by Blackbird Ventures. (AFR)

  • Punakaiki Fund and the Climate Venture Capital Fund are offering investors $400 (NZD) to overcome compliance pain as they struggle to raise their desired capital. Punakaiki Fund has currently raised $1.24m (NZD) of the $10.5m (NZD) goal, and the Climate Venture Capital Fund has raised $10.5m (NZD) of the $20m (NZD) goal. (NBR)

  • Cardrona Distillery, a spirits producer, is raising capital for an international expansion. (NBR)

Equity Raises

  • Dubai is set to raise $724m (USD) as it prices Emirates Central Cooling Corp's IPO at the top of the range. (BBG)

  • Southeast Asian grocery retailer Big C Supercenter is weighing up an IPO in Thailand that could raise more than $500m (USD). (BBG)

  • Jervois Global, an ASX-listed nickel and cobalt supplier, is expected to launch a $200m (AUD) raise on Wednesday morning. (AFR)

Debt

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  • ANZ hit the euro bond market with a short two-year covered bond and raised $3.1B (AUD). (AFR)

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