Elon Musk & Mark Zuckerberg Agree to a Cage Fight

June 23, 2023

Good Morning,

An explosion in China kills 31, fears of a civil war are rising in India, Jetstar continues with it’s poor reputation of being unreliable, the BoE increases interest rates to 5%, numerous people denied entry at co-governance meeting, Singapore imports high levels of used cooking oil from China and Credit Suisse executives have a class action lawsuit filed against them.

Let's jump in.

Before The Bell

Markets

  • Gold miners and the technology sector dragged the S&P/ASX 200 Index 1.6 per cent lower on Thursday, as the benchmark index suffered its worst day since March, retreating 119.4 points to a one-week low of 7195.5 points. (AFR)

  • Global shares eased on Thursday after Federal Reserve Chair Jerome Powell indicated U.S. rates had further room to rise, while the dollar held steady against the pound ahead of the Bank of England’s decision on monetary policy later on. (RT)

  • Chinese exports of used cooking oil to Singapore jumped to a record last month, likely due to more demand from Neste Oyj’s renewable fuel refinery. (BBG)

  • The yen fell to a record low against the franc amid the growing monetary policy divergence between Japan and Switzerland, with the latter’s central bank expected to raise interest rates Thursday. (BBG)

  • The Bank of England increased rates to 5% from 4.5%, the highest level in 15 years. Most had expected a smaller rate rise. (BBC)

Earnings and Data

  • USX-listed tourism company Skyline Enterprises has more than doubled underlying profit as tourism has rebounded in New Zealand, despite high inflation and on-going labour shortages. (NBR)

  • Ocado Group shares surged by over 40% on Thursday after The Times newspaper reported speculation of possible bid interest in the online supermarket and technology group recently squeezed by a cost of living crisis in the UK. (RT)

News Summary

  • Campaigners urging the government to take a hard line on retail crime are saying parents should be held accountable for children too young to face prosecution. (RNZ)

  • A Te Tauihu iwi member who tried to enter an anti co-governance meeting in Blenheim was stopped at the door, as were other whānau who showed up. (RNZ)

  • It is positive that New Zealanders now see Asia as an important region for the country to engage with, but more action is needed from governments, businesses, educators and individuals to translate that interest into efforts to learn more about the region, academics say. (RNZ)

  • Labor has bowed to pressure from business over its plans to force multinational companies to disclose an unprecedented level of tax information, opting to follow less onerous international standards. (AFR)

  • Jetstar continued its months-long run as Australia’s most unreliable airline in May with more cancellations and delays than any of its rivals, though the sector overall significantly improved its performance compared with 2022. (AFR)

  • Spirit AeroSystems on Thursday will suspend factory production at its plant in Wichita, Kansas, the company said, after workers rejected a proposed four-year deal and announced a strike to begin on June 24. (RT)

  • A group of Credit Suisse AT1 bondholders has filed a class action suit accusing former executives at the Swiss bank, including three past chief CEOs, of being responsible for the bank's downfall. (RT)

  • As the auto industry scrambles to produce more affordable electric vehicles, whose most expensive components are the batteries, lithium iron phosphate is gaining traction as the EV battery material of choice. (RT)

  • British banks are gearing up to share more data with their peers on suspected serious economic crime as part of wider efforts to stem dirty money flows into the country from Russia and elsewhere, four sources with knowledge of the matter told Reuters. (RT)

  • Fast-fashion giant Shein will strengthen its presence in Europe and Mexico, including selling more locally made products, in a bid to diversify its China-centric supply chain. (BBG)

  • Thailand plans to tighten listing rules as a major accounting scandal, debt defaults and unexplained share gyrations rattle investors, putting the nation’s key stock index on course for its first back-to-back quarterly loss in three years. (BBG)

  • India plans to widen the range of steel grades covered by a government incentive program in a bid to boost output and back Prime Minister Narendra Modi’s goal to establish the nation as a global manufacturing hub. (BBG)

  • A gas explosion at a restaurant in northwestern China killed 31 people on the eve of a long holiday weekend, causing anger in the Asian nation and President Xi Jinping to call for better safety supervision. (BBG)

  • Singapore's financial regulator has fined four companies over breaches related to the Wirecard scandal. (BBC)

  • Australia's cyber watchdog has called on Twitter, which is owned by multi-billionaire Elon Musk, to explain its handling of online hate. (BBC)

  • Last week, a retired lieutenant general in India's army bemoaned the volatile situation in his native Manipur, a violence-wracked state in the north-east of the country. (BBC)

Deal Flow

Investments / M&A

  • The acquisition of an Auckland-based plumbing company helps pave the way toward one business owner’s grand growth ambitions while safeguarding what was built before him. (NBR)

  • A deal on Whakapapa ski field has been delayed rather than halted, says a director of would-be buyer Whakapapa Holdings after rescue plans for Ruapehu skifields failed to garner the required level of support at a creditors’ meeting on Tuesday. (NBR)

  • Dual-listed telematics business Eroad has received a full takeover bid from Canadian company Volaris Group at $1.30 per share in cash, representing a 69% premium to its closing share price yesterday and valuing the company at $146.8 million. (NBR)

  • Northern Star will spend $1.5 billion by the end of the decade to double the amount of gold it will produce at its massive Super Pit mine by Kalgoorlie. (AFR)

VC & Fundraising

  • Hillfarrance Venture Capital’s new general partner Andrew Leahy says he is excited by the firm’s approach to investing, particularly the kind of community-mindedness that sees it share 20% of its carried interest or profits to its portfolio company founders. (NBR)

Daily Picks

  • Two of the world's most high-profile technology billionaires - Elon Musk and Mark Zuckerberg - have agreed to fight each other in a cage match. Read more here.

  • See this link for live updates on the missing submersible ‘Titan’.

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - Apply here

Australia

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