Biden Set to Visit Israel on Wednesday

October 18, 2023

Good Morning,

As coalition negotiations get under way there are already signs of disagreement over the Act Party’s proposal to hold a referendum on the principles of the Treaty of Waitangi. Police chase a lead after a homicide incident in Wellington of a mother of 3. Biden to visit Israel amid attacks in Gaza.

Let's jump in.

Before The Bell

Markets

  • Statistics New Zealand data showed inflation eased to an annual rate of 5.6% in the September quarter, much better than economists expected. (NBR)

  • The local stock market has had a tepid response to Saturday night’s election result, although the change in government is expected to benefit energy and retirement stocks in the future. (NBR)

  • Westpac’s chief economist, Luci Ellis, has warned that a subtle change in language from the central bank’s last meeting implies it is prepared to increase interest rates if the inflation outlook drifts further from target. (AFR)

  • The S&P/ASX 200 closed 29.6 points, or 0.4 per cent, higher to 7056.1, bouncing after two sessions of moderate declines. (AFR)

  • The 1%-plus rally in the S&P 500, which was the best start to the week since February, was matched by a retreat in crude oil, gold and Treasury bond prices and the dollar. (RT)

  • China has rolled out a flurry of support measures in recent months to revive its property sector which has been in crisis since policymakers began cracking down on the industry's debt levels in 2021. (RT)

  • China has told state-owned banks to roll over existing local government debt with longer-term loans at lower interest rates, two sources with knowledge of the matter said, as part of Beijing's efforts to reduce debt risks in a faltering economy. (RT)

Earnings and Data

  • Last year, HelloFresh had posted higher revenue than My Food Bag but its net profit after tax of $13.6m was below My Food Bag’s $20m. (NBR)

  • After a trading halt was lifted yesterday, Fletcher shares sank 57c, or 12%, as the market reacted to the risk Fletcher could be exposed to remediation costs for leaky pipes in thousands of homes in Western Australia. (NBR)

  • Goldman Sachs’ net profit slumped 33% to $2.06 billion, or $5.47 per share, it said on Tuesday. Analysts on average had expected a profit of $5.31 per share, according to LSEG data. (RT)

News Summary

  • The Labour Party is taking its time after suffering a heavy defeat in Saturday’s election. (NBR)

  • As coalition negotiations get under way there are already signs of disagreement over the Act Party’s proposal to hold a referendum on the principles of the Treaty of Waitangi. (NBR)

  • A youth driving a stolen car collided with a train on Tuesday morning, leaving a major Christchurch road closed during rush hour. (Stuff)

  • Police say they are following “positive leads” in the hunt for the person who killed a mother-of-three found dead in her Wellington home. (Stuff)

  • Audible sobs could be heard as CCTV footage was played in court of 18-year-old Connor Boyd’s final moments as he was run over in Auckland’s CBD. (Stuff)

  • Fiji’s Prime Minister Sitiveni Rabuka has expressed alarm over the “intensifying” rivalry between the United States and China and risk to global peace, warning that the Pacific doesn’t want to be forced to choose between the two superpowers. (AFR)

  • Swiss mining giant Glencore is set to close its copper mining operations in Mount Isa by the end of 2025 - which will result in the loss of about 1000 jobs - but it will keep its refinery and smelters open in North Queensland. (AFR)

  • DoorDash has warned that the average food delivery cost for families could more than triple under the Albanese government’s laws for minimum gig worker pay and conditions, in a worst-case scenario analysis. (AFR)

  • U.S. President Joe Biden will make a high stakes visit to Israel on Wednesday to show support for its war on Hamas, after Washington said Prime Minister Benjamin Netanyahu had agreed to let humanitarian aid reach besieged Gazans. (RT)

  • Jordan's King Abdullah on Tuesday warned against trying to push Palestinian refugees into Egypt or Jordan, adding that the humanitarian situation must to be dealt with inside Gaza and the West Bank. (RT)

  • A passenger on a rubber boat adrift in the Mediterranean Sea called a rescue hotline on June 23 to plead for help. The boat – carrying 14 migrants from the Middle East and Africa – was out of fuel in choppy waters. And a male passenger had just drowned. (RT)

  • A Tunisian gunman suspected of killing two Swedish football fans in Brussels died on Tuesday after being shot by police in a cafe, while Sweden's prime minister said Europe must bolster security to protect itself. (RT)

  • Russian President Vladimir Putin arrived in Beijing on Tuesday to meet with Chinese President Xi Jinping on a widely watched trip aimed at showcasing the trust and "no-limits" partnership between the countries even as the war in Ukraine raged on. (RT)

  • The Israeli military is getting ready for the next phase of its campaign against the Gaza Strip but plans may not conform to widespread expectations of an imminent ground offensive, an army spokesperson said on Tuesday. (RT)

  • Egyptian aid trucks moved closer on Tuesday to the only crossing to Gaza not controlled by Israel, but with no agreement in place to deliver relief and the Palestinian side still closed due to strikes it was unclear when they might pass through. (RT)

Deal Flow

Investments / M&A

  • KIIS FM’s owner ARN Media is working with buyout fund Anchorage Capital Partners to lob a bid for rival radio station owner Southern Cross Media, Street Talk can reveal. (AFR)

  • A for-sale sign is up at one of Australia’s last remaining car parts manufacturers, Ballarat-based Bendix Brakes, which is half-owned by German engineering juggernaut Bosch. (AFR)

VC & Fundraising

  • Electric truck maker Volta Trucks said on Tuesday it has decided to file for bankruptcy proceedings in Sweden, after difficulties at suppliers made it hard for the startup to raise funds. (RT)

Daily Picks

  • ‘We are hurting’: The remote town that voted 92pc Yes - Read more here.

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