Aussie inflation comes in low

July 27, 2023

Good Morning,

Rent in New Zealand is hitting record highs, Australian inflation was lower than expected, CBA is cutting jobs, Tottenham owner Joe Lewis has been charged with insider trading, Naren Modi is set to face a no-confidence vote & Australia and New Zealand have agreed to try and work towards more seamless travel between the two countries.

Let's jump in.

Before The Bell

Markets

  • The ASX hit a five-month high as lower inflation sparked hope that the RBA would hold interest rates next week (AFR)

  • The lower inflation in Australia also flowed into the NZ market

  • US stocks climbed higher, led by the tech stocks

  • The NZ government announced changes to Emissions Trading Scheme, which had a large impact on carbon market spot prices (NBR)

Earnings and Data

  • Australian inflation was lower than expected, coming in at 6% YoY in June, down from 7% in March (AFR)

News Summary

  • Home building costs are up 9.5% YoY in New Zealand (Stuff)

  • Rent in New Zealand is hitting record highs (Stuff)

  • Bremworth has offered staff of its Napier factory voluntary redundancy or redeployment (Stuff)

  • Australia and New Zealand have agreed to try and work towards more seamless travel between the two countries (NBR)

  • Digital ID could be in use within 12 months in Australia (9 News)

  • Alcohol tax in Australia will become over $100 per litre of pure alcohol on August 1st (9 News)

  • Australian rent was also on the rise (9 News)

  • The Commonwealth Bank of Australia (CBA) is cutting jobs (AFR)

  • Lactalis has got a 950k (AUD) fine from the ACCC (AFR)

  • Jarden has extended its strategic alliance with Nomura (AFR)

  • Tottenham owner Joe Lewis has been charged with insider trading (BBC)

  • NatWest boss Dame Alison Rose has resigned (BBC)

  • China’s foreign minister has been removed (BBC)

  • Cambodia’s PM Hun Sen is set to retire after nearly 40 years in charge (BBC)

  • Indian PM Naren Modi is set to face a no-confidence vote (BBC)

  • IMF believes travel recovery will boost the global economy (BBC)

  • Spotify has raised premium subscription prices (BBC)

Deal Flow

Investments / M&A

  • Skincare company L’Occitane’s owner is said to be mulling a buyout of the $4.2B (USD) firm (BBG)

  • French company Thales is purchasing US cybersecurity company Impreva in a $3.6B (USD) deal (RT)

  • TotalEnergies has purchased the remaining shares in clean-power developer Total Eren for $1.66B (USD) (BBG)

  • PacWest Bancorp is being sold to rival Banc of California for ~ $1.1B (USD) (BBG)

  • Qatar’s sovereign wealth fund, the QIA is in early talks to acquire a $1B (USD) stake in Reliance Retail (BBG)

  • Nissan will invest $663m (USD) in Renault EV unit Ampere (BBG)

  • Regal Partners are joining forces with River Capital to make a $586m (AUD) bid for ASX-listed investment company Pacific Current Group (AFR)

  • Stockland, a residential developer in Australia, will pay ~$210m (AUD) for part of the Living Gems Portfolio (AFR)

  • TA Associates have been auctioning their 80% stake in Honan Insurance, an NZ and Australian insurance broking roll-up (AFR)

  • Pacific International Insurance has taken a 5.82% stake in Tower (NBR)

  • ASX funeral business InvoCare’s takeover talks with PE firm TPG have become a bit slow (AFR)

  • IFM’s private equity unit is closing in on a stake in Tally Group, a utilities-focused software business (AFR)

VC & Fundraising

  • Future Super, an Australian ESG superannuation and investments start-up, is aiming to raise $10m (AUD) at a $225m (AUD) fully diluted pre-money valuation (AFR)

Equity Raises

  • Malaysian renewable energy company reNIKOLA Holdings is seeking to raise $438.4m (USD) over the next 3 years (RT)

  • Panoramic Resources, a West Australian nickel, copper and cobalt explorer, is trying to raise $40m (AUD) at a 45.7% discount. Its largest shareholder IGO won’t be investing (AFR)

Debt and Restructuring

  • Carlyle has offered iRobot a $200m (USD) bridge loan (BBG)

  • Jack Ma-backed Ant plans to break off overseas and crypto units (BBG)

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