Ardern Out, Who Next Week?

January 20, 2023

Good Morning,

Jacinda Ardern has announced she will resign, the World Economic Forum continues into its fourth day in Davos Switzerland, Anatoly Legkodymov, the Bitzlato crypto founder, was charged with $700m in financial crimes and the European Central Bank policymakers are reportedly considering a slower pace of rate rises.

Let's jump in.

Before The Bell

Markets

  • The S&P/NZX 50 index fell 35 points, or 0.3%, to 11,885.64. The turnover was $91.3 million

  • The NZD took the Prime Minister's notice in stride by staying resilient

  • The ASX 200 brings itself just up a mere 0.6%

  • The S&P 500 and the Dow lost almost 2% on Wednesday, their biggest daily drops in more than a month, after weak economic data fuelled recession worries while hawkish comments from Federal Reserve officials soured investor moods further (RT)

Earnings and Data

  • Figures from the Australian Bureau of Statistics (ABS) on Thursday showed net employment fell 14,600 in December from November, when it surged by a revised 58,200, and missed forecasts for an increase of 22,500 (RT)

  • The producer price index for final demand fell 0.5% last month, the most since April 2020, and was up 6.2% from a year earlier, Labor Department data (BBG)

News Summary

  • “This has been the most fulfilling five and a half years of my life,” utters the outgoing 40th Prime Minister Jacinda Ardern just after she had dropped her 'bombshell' announcement to media at her caucus retreat in Hawkes Bay. New Zealand's general election will take place on October 14th (Herald)

  • The cockpit voice recording from flight QF144 has been secured as part of the investigation into the mid-flight engine failure (9 News)

  • McKinsey have appointed Melbourne-based transformation specialist Wesley Walden as their new managing partner for Australia and New Zealand (AFR)

  • Ukraine's president Zelensky addressed the Davos forum after a fatal helicopter crash, citing there are "no accidents at wartime" after 14 people died in a helicopter crash in the capital, Kyiv (BBC)

  • Bitzlato crypto founder, Anatoly Legkodymov, was charged with $700m in financial crimes (BBC)

  • China’s growth forecasts have been raised for next year as the country reopens. Economists in a Bloomberg survey predict 5.1% growth in 2023 and for consumer spending to rebound after Covid waves ease (BBG)

  • China may be one step closer to losing its place as the world’s most populous country to India after its population shrank for the first time since the 1960s (CNN)

Deal Flow

Investments / M&A

  • Discussion about a potential sale of Global Switch has slowed down in recent weeks as there is a struggle to bridge a significant valuation gap. The initial valuation wanted was $10B (USD) (BBG)

  • Nordic Capital is weighing the sale of Sunrise Medical, which could value the German wheelchair maker at as much as $2B (USD). Additionally, Nordic Capital's attempt to sell European Dental Group at $2B has stalled over price (BBG)

  • Shell USA is acquiring EV charging firm Volta for about $169m (USD) (RT)

  • Mayfield Childcare’s investor-turned-bidder Genius Education Holdings has done some soul-searching (and due diligence) over the holidays and is ready to hit back with a higher offer (AFR)

  • Chris Ellison’s Wednesday night declaration that Mineral Resources does not intend to bid for Warrego Energy leaves it in an envious spot, even if it has left investors with more questions than answers for now (AFR)

  • Mad Paws has hired advisers to gauge M&A interest amid record sales (AFR)

  • Chinese brokerages are in a race to raise billions of dollars in capital to meet regulatory requirements, jumping on a market upturn to bolster operations as they brace for the tougher competition from Wall Street banks on their home turf (RT)

VC & Fundraising

  • WeMoney, a financial wellness app, has hit profitability two and half years after launching. It is looking to raise another $5m - $10m (AUD) this year (AFR)

Equity Raises

  • Walmart-owned Indian digital payments app PhonePe has raised $350m (USD) at a valuation of $12B (USD) in a funding round led by private-equity firm General Atlantic (RT)

Debt & Restructuring 

  • Oaktree Capital Management has set its sights on restructuring candidate GenesisCare, lobbing a funding proposal that would help the Australian born-and-bred cancer care provider pay down existing debt and re-set its capital structure (RT)

  • FTI Consulting, the administrators for Sun Cable, are currently trying to lock in near-term funding to keep the lights on whilst the auction plays out. They will meet creditors for the first time today (AFR)

Daily Picks

  • What is Ardern's economic legacy? (Stuff)

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