Australia's Rates Further Increasing

June 07, 2023

Good Morning,

Australia experiences another increase in interest rates - marking an 11-year high with expectations to increase rates again in the future. Meanwhile a dam is blown up in the South of Ukraine, with both Russia and Ukraine pinning the blame on each other. In Hong Kong, the government is seeking a court order to ban protest song “Glory to Hong Kong”.

Let's jump in.

Before The Bell

Markets

  • Asian stocks nudged higher on Tuesday as soft U.S. economic data reinforced expectations that the Federal Reserve may skip an interest rate hike when it meets next week. (RT)

  • Australia's central bank on Tuesday raised interest rates by a quarter-point to an 11-year high, and warned that further tightening may be required to ensure that inflation returns to target. (RT)

  • UK investors backed money market funds in May at the fastest rate since the country's failed 'mini-budget' last year, opting for caution after a volatile period in global banking, funds network Calastone said on Tuesday. (RT)

  • Singapore’s latest property tax — now one of the highest among global markets — has dented foreign demand. Foreign buyers bought 57 private apartments in May, down 50% from April, according to Savills Singapore’s analysis of data from the Urban Redevelopment Authority. (BBG)

Earnings and Data

  • Oil prices edged lower early on Tuesday, coming off gains made the previous day as concerns about the global economic backdrop outweighed supply worries raised when Saudi Arabia announced its biggest output cut in years. (RT)

  • Shares in dual listed healthcare product company Ebos have plummeted on news the company has missed out on a lucrative supply agreement with Chemist Warehouse Australia to its smaller trans-Tasman rival, Sigma Healthcare. (NBR)

News Summary

  • Dell Technologies Inc's Australian unit has been found guilty by the country's Federal Court to have misled customers about the prices or discounts on its add-on monitors on its website, Australia's competition regulator said on Tuesday. (RT)

  • The Hong Kong government said on Tuesday that it asked a court to ban a protest song in a bid to prevent people from inciting secession or insulting China's national anthem. (RT)

  • Microsoft will pay $20 million to settle U.S. Federal Trade Commission charges that the tech company illegally collected personal information from children without their parents' consent, the FTC said on Monday. (RT)

  • Apple on Monday unveiled a costly augmented-reality headset called the Vision Pro in its riskiest bet since the introduction of the iPhone more than a decade ago, barging into a market dominated by Meta. (RT)

  • Ukraine and Russia accused each other on Tuesday of blowing up a dam and causing widespread flooding in southern Ukraine, while Russia said it had thwarted another Ukrainian offensive in eastern Donetsk and inflicted heavy losses. (RT)

  • Chinese authorities asked the nation’s biggest banks to lower their deposit rates for at least the second time in less than a year, according to people familiar with the matter, marking an escalated effort to boost the world’s second-largest economy. (BBG)

  • Twitter Chief Executive Officer Linda Yaccarino has started her job at the social media company, she said on the site. (BBG)

  • The Securities and Exchange Commission on Monday sued Binance, the world’s largest cryptocurrency exchange, alleging the overseas company operated an illegal trading platform in the U.S. and misused customers’ funds. (WSJ)

  • Thirty-nine New Zealand athletes are on Wednesday boarding a plane for Berlin to compete in the Special Olympics. (RNZ)

  • New Zealand women in mid-life are being let down by Pharmac, say two doctors specialising in women’s health. (RNZ)

Deal Flow

Investments / M&A

  • Panasonic Holdings plans to expand production of electric vehicle batteries at a factory in Nevada jointly operated with Tesla by 10% within three years, a spokesperson for the Japanese company said on Tuesday. (RT)

  • A2 Milk’s infant formula has been approved for export to China by China’s State Administration for Market Regulation under new registration rules applying from late February. (NBR)

VC & Fundraising

  • A Swedish startup backed by the venture arm of EQT AB wants to chip away at the dominance of US cloud providers in Europe by building eight large data centers across the region. (BBG)

Daily Picks

  • See this article for more details on new regulations surrounding vapes in New Zealand.

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - Apply here

Australia

  • Citadel Securities graduate and intern roles - Apply here

  • Goldman Sachs Investment Banking Intern - Apply here

  • IMC graduate and intern roles - Apply here

  • Jarden

    • Graduate role - Apply here

    • Summer internships - Apply here

  • Macquarie graduate roles - Apply here

  • Optiver

    • Graduate role - Apply here

    • Internships - Apply here

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