The Climate Crisis Cannot be Ignored

July 19, 2023

Good Morning,

Things heat up all around the world with high temperatures affecting countries all over the globe. NZ, the US and China all take steps towards addressing climate change, with the US and China agreeing that cooperation between the two countries is a need for addressing climate change, and New Zealand commits to regulations around reducing emissions in the advertising industry.

Let's jump in.

Before The Bell

Markets

  • The benchmark S&P/NZX 50 Index slipped 0.05%, or 6.107 points, to 11,932.81. On the broader market 71 stocks rose and 58 fell with $88 million shares traded. (Stuff)

  • Australia’s sharemarket fell on Tuesday for a second day, led by a sell-off in Lendlease after the property giant announced plans to cut about 10 per cent of its workforce. (AFR)

  • World shares were steady near their recent 15-month highs and the dollar held close to a one-year low on Tuesday as investors paused to take stock of weak economic data from China and waited for U.S. retail sales data and earnings. (RT)

  • The spectre of rising corporate debt defaults exacerbating a global economic slowdown has for months been largely brushed aside by resilient credit markets. (RT)

  • Treasury Secretary Janet Yellen said a cooling — but not faltering — labor market is playing a key role in helping to slow US inflation, among a raft of factors imposing disinflationary pressures. (BBG)

Earnings and Data

  • Regal Partners has exceeded its annual $1 billion target for new client money, boosting funds under management to $5.8 billion as of the end of June – and picking up $7 million in performance fees for the last half. (AFR)

  • Novartis on Tuesday raised its full-year earnings forecast on strong drug sales and mapped out the planned separation and stock market debut of its generic medicines division Sandoz for early October. (RT)

  • Taiwanese chipmaker TSMC is expected to report a 27% fall in second-quarter net profit on Thursday, as global economic woes dent demand for semiconductors, though analysts say business performance is likely to improve in the current quarter. (RT)

  • Ford deepened a price war in the electric-vehicle industry on Monday by slashing the prices of its F-150 Lightning trucks, including a 17% cut for the base model, as it aims to boost its share of an EV market dominated by Tesla. Ford's shares closed down 6% at $14.09. (RT)

  • QatarEnergy’s net income rose 58% in 2022 to reach 154.6 billion riyals ($42.4 billion) on surging international energy prices, according to latest reported data. (BBG)

News Summary

  • Toy company Zuru, owned by the richlister Mowbray siblings, has lost a court battle where it fought to use the name of Danish toy company Lego on the packaging for its own plastic bricks. (Stuff)

  • New Zealand linen and homewares retailer Bed Bath & Beyond (BBB) has lost its trademark battle against an Australian competitor with a similar name. (Stuff)

  • The Dunedin-based director of two restaurants faces multiple charges of allegedly underpaying staff. (Stuff)

  • Countdown will soon revert back to Woolworths, as part of a multi million dollar 'transformation programme' announced today. (NBR)

  • New Zealand’s advertising industry will be the world’s fourth to commit to measuring and reducing its emissions as part of a public, science-based net zero target programme starting soon. (NBR)

  • The Financial Services Council has criticised the National Party’s policy proposing to allow young people to use their KiwiSaver savings to pay the bond on a rental property. (NBR)

  • Goldman Sachs is doubling the number of advisers in its local private banking arm after identifying the country’s 400 wealthiest families as one of the “biggest opportunities” in Asia. (AFR)

  • A low-cost, low tech model of education support for university students that has been shown to dramatically improve retention and completion rates will be rolled out across the country, including to the outer suburbs of big cities, as part of the federal government’s review of higher education. (AFR)

  • Defence and Social Services will be forced to cut spending on consultants, advertising, lawyers and labour hire by around $600 million apiece as part of the Albanese government’s crackdown on outsourcing. (AFR)

  • Jim Chalmers has held a breakthrough meeting with China’s Finance Minister, Liu Kun, as the government continued to fret over the consequences of a rapidly flatlining Chinese economy, which could include a downgrade of Australia’s economic forecasts. (AFR)

  • Soaring summer temperatures across southern Europe could prompt a lasting shift in tourist habits, with more travellers choosing cooler destinations or taking their holidays in spring or autumn to dodge the extreme heat, tourism bodies and experts predict. (RT)

  • China is entering an era of much slower economic growth, raising a daunting prospect: it may never get rich. (RT)

  • British Prime Minister Rishi Sunak's highly contested plan to make it easier to send asylum seekers to Rwanda is set to become law after the government defeated attempts by parliament's upper house to make changes to the legislation. (RT)

  • Russia struck Ukraine's port of Odesa with missiles and drones on Tuesday, a day after pulling out of a U.N.-backed deal to let Kyiv export grain, and Ukrainian officials said Moscow was attempting to go back on the offensive in the east. (RT)

  • Singapore's ruling People's Action Party (PAP) has long prided itself on its high ethical standards but two political entanglements within a week have some wondering if the party's reputation of "whiter than white" stands. (RT)

  • China's CITIC Securities plans to move dozens of bankers from its offshore platform CLSA in Hong Kong to the mainland to cut costs and meet Beijing's call to bridge income inequality in the financial sector, people with knowledge of the matter said. (RT)

  • US climate envoy John Kerry was resolute as he sat across from his Chinese counterpart in Beijing on Monday: The global warming crisis “cannot be solved” without both nations working together, he said. (BBG)

Deal Flow

Investments / M&A

  • The board of Metro Performance Glass has rejected an 18 cents a share bid for all shares in the company made by a consortium led by NBR Listers Peter Masfen and Peter Wells, saying it “significantly undervalues” the business. (NBR)

  • Former Nissan Motor chairman Carlos Ghosn said on Tuesday the Japanese automaker and Renault are trying to go for "very small and reduced" cooperation between them with a deal to overhaul their long-standing alliance. (RT)

  • Dutch e-bike maker VanMoof has been declared bankrupt and curators are researching whether it can sell assets and restructure, the company said on Tuesday. (RT)

  • Warren Buffett's Berkshire Hathaway sold 70% of its investment in Activision Blizzard in the second quarter, appearing to miss out on some gains when a federal judge said Microsoft can complete its $68.7 billion purchase of the video game maker. (RT)

  • Chinese automaker Zhejiang Geely Holding Group Co. declined to confirm whether it plans to invest $10 billion in the Malaysian town of Tanjung Malim, as Prime Minister Anwar Ibrahim said Tuesday. (BBG)

  • India’s Vistara airline has begun making plans to merge its staff into Air India Ltd., as the country’s industrial Tata family combines the two carriers to rebuild its aviation empire and take on market leader IndiGo. (BBG)

  • US retail trading platform Robinhood Markets Inc is looking to fill key roles in the UK as it prepares to renew its push to win over local investors. (BBG)

Equity Raises

  • Glow Capital, the investment house run by former Quadrant Private Equity deal maker Justin Ryan, has closed its first deal after acquiring a controlling stake in Melbourne-headquartered clothing supplier Cargo Crew. (AFR)

Daily Picks

  • An American national has crossed the border into North Korea without authorisation and is now in North Korean custody. Read more here.

  • Inside an Adidas Veteran’s Plan to Make Sneakers Free From Plastic. See more here.

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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