Grotesque Grocery Price Growth

Good Morning,

The prices New Zealand supermarkets had to pay suppliers to stock their shelves were 10.2% higher in November compared with a year ago, data from economists at Infometrics shows. Covid is rapidly spreading through Chinese households and offices after the country's pandemic rules were unexpectedly unwound last week, and SpaceX launches Japanese startup Ispace's lunar lander to the moon.

Let's jump in.

Before The Bell

Markets

• Chinese stocks slid on Monday amid some profit-taking following their sharp recent gains and as general caution prevailed in equity markets ahead of global central bank meetings. (BBG)

• Oil advanced as a crucial North American pipeline remained shut and the market digested the latest virus developments in China. (BBG)

• The S&P/ASX 200 fell 0.5 per cent, or 32.4 points on Monday, dragged lower by steep losses across the utilities sector. (AFR)

• The prices supermarkets had to pay suppliers to stock their shelves in New Zealand were 10.2% highest in November compared with a year ago, data from economists at Infometrics shows. (Stuff)

Earnings and Data

• Morgan Stanley plans to slash investment bankers' annual bonuses by as much as 50% in Asia, said two people with direct knowledge of the matter, as the Wall Street firm reins in costs to tackle tough market conditions that have hit its revenue. (RT)

• Monthly GDP in the UK grew by 1.5% in October 2022 compared with the same month last year. For comparison, monthly GDP grew by 1.3% between September 2021 and September 2022. (Office for National Statistics UK)

News Summary

• Russian forces pounded targets in eastern and southern Ukraine with missiles, drones and artillery, while millions remained without power in subzero temperatures after further strikes on key infrastructure. Queues form at fever clinics as China wrestles with COVID surge. Three women were killed in a cafe shooting in Italy. Snow forces UK's Stansted Airport to suspend all flights. Experts predict U.S inflation to be much lower by the end of 2023.

Deal Flow

Investments/ M&A

• Investment funds managed by Morrison & Co have agreed to sell 11 New Zealand schools, a prison and student accommodation to a UK-listed investment company for $200 million NZD. (NBR)

• A consortium of investors, led by major Seadragon shareholder Mark Stewart, now owns 90% or more of voting rights in Omega-3 and marine refinery company Seadragon. (NBR)

• Microsoft is to take a 4% equity stake in London Stock Exchange Group as part of a 10-year commercial deal to migrate the exchange operator's data platform into the cloud, the British company said on Monday. (RT)

• Amgen Inc. has agreed to buy Horizon Theraputics Plc, offering around $116.50 for each Horizon share at a valuation of about $26 billion. (BBG)

• Scott Farquhar and his wife Kim Jackson are understood to be inching towards a deal to take a material stake in Australian born-and-bred Mexican fast food chain Zambrero. (AFR)

Equity Raises

• Mobile Tyre Shop, founded by Challenger's former head of leasing, is parading its wares to potential investors for a $20 million AUD pre-IPO round that is expected to be shopped as far as Tokyo Stock Exchange-listed tyre manufacturing giants. (AFR)

Debt

• Country Garden Holdings Co. Ltd and Longfor Group Holdings Ltd. are among the first private Chinese developers being lined up to receive offshore loans that could help their debt repayment, in the latest sign of support for the stricken property sector. (BBG)

• Credit Suisse provided an emergency $US140 million loan to Greensill Capital based partly on invoices to companies that deny ever doing the business stated on the documents. (AFR)

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