European Central Bank Hikes Rates With More to Follow...

Good Morning,

Race Relations Commissioner Feng Moon has stepped down from the role. The Australian share market rises for a fifth session, marking it’s highest streak since April. The Bank of England sets to raise interest rates again, to a 15 year high of 4.75%. In the US, AI steals the spotlight from TikTok in congress. Japan reforms laws surrounding sexual consent.

Let's jump in.

Before The Bell

Markets

• The S&P/NZX 50 rose 1.0% this Friday, along with a 1.1% rise in the ASX 200 and a 1.2% rise in the S&P 500.

• New Zealand’s economy is cooling faster than expected, with businesses and consumers expected to belt tighten further over the months ahead. (NBR)

• The Australian sharemarket climbed for a fifth session, its longest winning streak since April, boosted by gains in energy companies and a surge in AGL Energy shares. (AFR)

• Major global investment banks lifted their terminal rate forecast for the European Central Bank to 4% in September, after the ECB raised borrowing costs and indicated further hikes. (RT)

• The Bank of England looks set to raise interest rates by a quarter point to a 15-year high of 4.75% on June 22, its 13th straight rate rise as it fights unexpectedly sticky inflation that risks making it a global outlier. (RT)

• The U.S. Federal Reserve this week paused its most aggressive interest rate rise cycle in decades, but laced the decision with a warning of more hikes to come. The European Central Bank hiked again on Thursday and the Bank of England is widely predicted to follow suit next week. (RT)

• Global stocks were headed for the best week in more than two months, buoyed by bets on Chinese stimulus and exuberance surrounding artificial intelligence firms. (BBG)

Earnings and Data

• Meridian Energy was up 3 cents, or 0.7%, to $5.42, Vector edged up 2 cents, or 0.5%, to $4.01 and Mercury rose 3.5 cents, or 0.6%, to $6.365. (GR)

• Contact Energy was flat at $7.83 per share. Genesis Energy fell 4 cents, or 1.5%, to $2.70 and Manawa Energy was down 2 cents, or 0.4%, to $4.73 and Infratil was down 24.5 cents, or 2.5%, to $9.625. (GR)

• A2 Milk rose 8 cents, or 1.4%, to $5.63, and Synlait Milk was down 7 cents (4%) to $1.70. (GR)

News Summary

• Race Relations Commissioner Meng Foon has resigned from his role this afternoon over a failure to disclose a conflict of interest. (Herald)

• Eftpos provider Smartpay says criminals stole customer data in a ransomware attack. (Herald)

• An expert on landslides and natural hazards warns much of New Zealand may become "uninsurable" in the future. (RNZ)

• The High Court has ruled – in a judicial review sought by competing pharmacy providers – that pharmacies operating in Countdown supermarkets were granted licences illegally. (NBR)

• Russia accused Australia of “Russophobic hysteria” for cancelling the lease on the land where Moscow wanted to build its new embassy, which the Australian government judged to be a security risk because it was too close to Parliament House. (Stuff)

• Beijing resident Hu Yongwei bought more than a dozen apartments in the small central Chinese city of Hebi for about $31,000 in all, betting they will be financially more rewarding than other investments. (RT)

• Sweden's government is ready to step in to stem the fallout from a property rout if tumbling prices cause a wider crisis - a potential harbinger of trouble across Europe. (RT)

• Roofs were blown off houses and trees and electric poles uprooted, leaving thousands without power as a severe cyclone made landfall and rain lashed both the Indian and Pakistani coasts early on Friday. (RT)

• Russia's dominant lender Sberbank on Friday said it had finalised the sale of its Austrian subsidiary to an Austrian company controlled by Stefan Zochling, withdrawing completely from the European banking market. (RT)

• Forget TikTok, AI Is the latest obsession in congress (BBG)

• Iran is shipping the most crude in almost five years, fortifying its re-emergence on the geopolitical stage while posing risks for a fragile global crude market. (BBG)

• Japan raises age of consent to 16 in sex crime law reforms (RNZ)

Deal Flow

Investments / M&A

• Mid-market private debt investor, Epsilon Direct Lending, is asking potential investors to think about 10 per cent annual returns as it looks to raise its new fund. (AFR)

• U.S. memory chipmaker Micron said on Friday it was committed to China and would invest 4.3 billion yuan ($603 million) over the next few years in its chip packaging facility in the Chinese city of Xian. (RT)

• Intel is to invest up to $4.6 billion in a new semiconductor assembly and test facility near Wrocław, Poland, as part of a multi-billion-dollar investment drive across Europe to build chip capacity, it said on Friday. (RT)

• Britain's competition regulator on Friday cleared Amazon.com Inc's planned $1.7 billion acquisition of iRobot Corp, maker of the Roomba vacuum cleaner. (RT)

Daily Picks

• Woman who posed as a man to deceive ‘short-sighted girlfriend’ could face prison. Read more about it here.

• Crusaders dominate Blues in Super Rugby Pacific semi-final. See more here.

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