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National potentially facing a $24 billion fiscal hole

February 22, 2024

Good Morning,

More than 500 staff have now been made redundant at Health New Zealand, Delivering the roads and public transport National campaigned on ahead of the October 2023 election could end up costing more than twice as much as the party said it would, Air New Zealand claims the redevelopment of Auckland International Airport will make flying unaffordable for many and Multi-billionaire Jeff Bezos has sold another 14 million Amazon shares, worth around $2.4bn (£1.9bn).

Let's jump in.

Before The Bell

Markets

  • The $US3.8 trillion ($5.8 trillion) wealth unit of UBS says the Australian dollar is one of the best ways to trade the US Federal Reserve’s impending rate cuts, as the Reserve Bank of Australia lags its peers in easing monetary policy. (UBS)

Earnings and Data

  • Worries over whether Nvidia Corp. can deliver another blockbuster earnings beat sent US equity futures lower on Wednesday, with investors questioning the durability of the frenzy over artificial intelligence. (BBG)

News Summary

  • More than 500 staff have now been made redundant at Health New Zealand - Te Whatu Ora as part of major reforms of the healthcare sector. (Herald)

  • Delivering the roads and public transport National campaigned on ahead of the October 2023 election could end up costing more than twice as much as the party said it would, leaving a potential fiscal hole of $24 billion. (Herald)

  • Air New Zealand claims the redevelopment of Auckland International Airport will make flying unaffordable for many. (Stuff)

  • The European Union has agreed to set stricter limits on the toxic particles and dangerous gas that dirty its air, but will not aim for the levels that doctors and economists recommend. (Guardian)

  • Members of Melbourne's Jewish community claim they were shoved to the ground and punched during a fiery protest outside the Melbourne Town Hall. (9 News)

  • Multi-billionaire Jeff Bezos has sold another 14 million Amazon shares, worth around $2.4bn (£1.9bn). (BBC)

  • China is one of the world's most expensive places to raise a child, relative to its GDP per capita, a prominent Chinese think tank said on Wednesday as it detailed the time and opportunity costs for women who opt to have children in the country. (RT)

  • The Russian State Duma has banned British ships from fishing, including cod, in Russia’s Arctic waters and along the coast of the Kola Peninsula.(BBG)

Deal Flow

Investments / M&A

  • ASX-listed toll road giant has mandated Goldman Sachs’ bankers in the United States to steer it through a sale process at Denver’s Northwest Parkway. (AFR)

  • CSR is working with UBS bankers after the building materials group received a takeover bid from French construction giant Saint-Gobain. (AFR)

  • Pacific Equity Partners has its eye on regional NSW’s top garbo JR Richards & Sons. (AFR)

  • Australian Unity has taken the country’s largest private home care business off Quadrant Private Equity’s hands, marking the buyout firm’s second exit this month. (AFR)

  • Orica raising $400m to acquire chemicals biz; Goldman Sachs on ticket. (AFR)

  • British telecoms group BT said Wednesday it had agreed to sell London’s iconic BT Tower — once an important piece of network infrastructure — to developer MCR Hotels for £275 million ($346.6 million). (CNBC)

VC & Fundraising

  • Los Angeles-based startup Arc on Tuesday launched a new mass-market electric sport boat, months after the company backed by basketball player Kevin Durant and Hollywood star Will Smith raised $70 million in early-stage funding. (RT)

Equity Raises

  • Canaccord Genuity’s desk launched a $60 million block trade in Sayona Mining after market close on Wednesday, seeking buyers for about 11.2 per cent of the company. (AFR)

  • Chipmaker Astera Labs filed for an initial public offering in the United States on Wednesday. (RT)

Debt

  • Goldman Sachs Asset Management LP has launched its first European private credit fund for wealthy individuals, joining the race to draw the region’s rich into a rapidly-expanding industry. (BBG)

  • President Joe Biden’s administration announced that more than 150,000 borrowers will receive $1.2 billion in student loan forgiveness under a program unveiled in January seeking to provide relief for Americans who had been making payments for at least a decade. (BBG)

Daily Picks

  • New Zealand v Australia result: Black Caps fall to Australia in Chappell-Hadlee Trophy Twenty20 opener. (Herald)

  • New Zealand is currently experiencing the fastest immigration net gain in its history - and the country is likely not prepared. (Herald)

The Daily Deck is sponsored by Industrial Equity, LLC

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