Devastating Floods Strike Again

Author

Sophie Wood
May 10, 2023

Good Morning,

Extreme flooding has struck the Auckland region again, resulting in schools closing and some cancellations of railway lines. Auckland is now in a state of emergency, with more expected rain to come across the upper North Island. A year-11 student on a school trip has been lost in the flooding while on a caving school trip. His remains are yet to be found. In Australia, the budget has been released, with $15 billion being put towards cost-of-living relief.

Let's jump in.

Before The Bell

Markets

  • China's imports contracted sharply in April, while exports rose at a slower pace, reinforcing signs of feeble domestic demand despite the lifting of COVID curbs and heaping pressure on an economy already struggling in the face of cooling global growth. (RT)

  • A key OPEC+ minister played down the need for further cuts to balance supply and demand, weeks after the organization shocked the oil market by announcing a round of large output reductions. (BBG)

  • The US sharemarket has rebounded strongly from last year’s lows, but the gains mask wild swings in stock prices as investors weigh the prospects of a recession, or a deepening banking crisis in the world’s largest economy. (AFR)

  • Shares traded lower on Tuesday on the Australian stock exchange, weighed down by property and gold miners before Treasurer Jim Chalmers was to announce the country’s first budget surplus in 15 years. (AFR)

Earnings and Data

  • Palantir Technologies Inc. rallied as much as 21% in premarket trading Tuesday after giving a strong earnings forecast and saying that demand for its new artificial intelligence tool due this month is “without precedent.” (BBG)

  • Apollo Global Management Inc said on Tuesday its first-quarter adjusted net income fell 8% year-on-year, missing estimates, as a jump in management fees and investment income could not offset the impact of a drop in asset sales. (RT)

News Summary

  • Torrential rain, thunderstorms and gale-forced winds that caused a local state of emergency in Auckland on Tuesday are easing as the storm front moves east. (Stuff)

  • A student swept away on a school caving trip was meant to be rock climbing, but bad weather forced the trip underground instead, Stuff can reveal. (Stuff)

  • Torrential rain has hit the Bay of Plenty, with Rotorua recording more than 65mm between 3pm and 5pm. (RNZ)

  • Kaipara District Council's push to build a controversial waste to energy plant in or near Auckland involves the 41 percent Chinese-owned company aiming to build a $350 million equivalent in Canterbury. (RNZ)

  • Many South Island secondary and area schools are closed as teachers take strike action, with their union saying the latest pay offer isn't good enough. (RNZ)

  • Country's biggest tourism business event set to bring $2.5 million to Christchurch economy (RNZ)

  • The Government’s discount on efficient vehicles should be phased out and a scrappage scheme be introduced for older vehicles, according to the Motor Trade Association. (NBR)

  • The federal government will provide up to $3 billion in relief in Australia, in partnership with state and territory governments. (9 News)

  • Doctors in Australia will be paid three times as much to bulk-bill families with young children, pensioners and concession cardholders, as part of a plan to improve GP access with no out-of-pocket costs for 11.6 million people. (AFR)

  • PricewaterhouseCoopers (PwC) said the CEO of its Australian business had stepped down effective immediately after the auditor became embroiled in a scandal that involved leaking confidential government tax plans. (RT)

  • Russia fired cruise missiles at Kyiv on Tuesday and paraded troops and vintage equipment across Red Square in a curtailed celebration of victory in World War Two, while Kyiv fended off the air strikes and hosted the head of the European Union. (RT)

  • Goldman Sachs Group Inc has agreed to pay $215 million to settle a long-running class-action lawsuit that alleged widespread bias against women in both pay and promotions, a joint statement from the company and the plaintiffs said. (RT)

  • China has launched a nationwide anti-espionage crackdown on consulting firms, according to state media, accusing one global company of leaking state secrets and having ties with foreign intelligence agencies. (BBG)

  • LinkedIn has become the latest tech firm to axe jobs, closing 716 roles out of a 20,000 workforce. (BBC)

  • Social media users in Vietnam must soon verify their identities, in what the government says is a bid to crack down on online scams. (BBC)

Deal Flow

Investments / M&A

  • Tourism Holdings expects international travel volumes for most markets to return to pre-Covid levels in late 2024, but has warned the recovery of inbound travel from China will take longer. (NBR)

  • JD Sports Fashion has proposed buying France's Groupe Courir for an enterprise value of 520 million euros ($572 million), in what would be the British group's first acquisition since setting out ambitious expansion plans in February. (RT)

  • U.S. private equity group KKR & Co Inc and Australia's Macquarie Asset Management are among potential bidders for the waste and recycling management arm of Singapore's energy group Sembcorp in a deal that could value the unit at around $500 million, said two sources with knowledge of the matter. (RT)

  • South African specialist logistics property group Equites said on Tuesday that it plans to sell its logistics business in the United Kingdom as a way to unlock value amid rising interest rates impacting asset valuations. (RT)

Debt

  • U.S. President Joe Biden and top Republican lawmakers will declare their positions face to face on Tuesday on raising the $31.4 trillion U.S. debt ceiling, with an unprecedented default looming in three weeks if Congress does not act. (RT)

Daily Picks

  • See the Auckland flood in pictures here.

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - Apply here

Australia

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  • Goldman Sachs Investment Banking Intern - Apply here

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