Meta Continuing the Job Cut

March 08, 2023

Good Morning,

The Reserve Bank of Australia has increased it official cash rate to 3.6% in a record 10th consecutive rise, China warns U.S. against suppression or risk 'conflict', Meta plans to layoff thousands more in as soon as this week, Japan’s new rocket fails on debut launch in setback for space program and all people feared missing after Cyclone Gabrielle now accounted for.

Let's jump in.

Before The Bell

Markets

  • The S&P/ASX 200 rose 0.5 per cent, or by 36 points, to 7364.7; the benchmark was flat at 7328.1 points heading into the RBA’s decision meeting in the early afternoon (AFR)

  • US stock futures ticked up Tuesday as investors avoided large bets before the two-day testimony of Fed Chair Jerome Powell (BBG)

  • China, the world’s second-biggest oil consumer is snapping up crude after reversing its strict Covid-19 policies. Against a backdrop of tight supply, the demand boost has many predicting a rally to $100 a barrel later this year (BBG)

  • The pan-European Stoxx 600 index provisionally ended up 0.5% after dipping into negative territory during morning deals. Food and beverage stocks led the gains, up 1.8%, while banks slipped 0.8% (CNBC)

Earnings and Data

  • AerSale Corporation came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.31 per share a year ago (ND)

  • Cargojet, a Canadian air transportation services company, reported its Q4-2022 earnings results. The stock finished 10.8% lower, revenue reached C$267 million compared to the consensus estimate of about C$260.6 million, representing a 13.2% growth rate. (TR)

  • South Port, Bluff-based port company has reported a net profit of $5.2 million for the six months ended December, compared with $5.9m a year ago. Revenue for the period rose 7% to $24m, while operating costs grew at a faster rate of 14% to $16.4m on the back of higher finance and administrative expenses (NBR)

News Summary

  • The Reserve Bank has heaped more pain on borrowers, extending its record run of interest rate rises to a 10th consecutive increase in its bid to drive down inflation. It signaled, though, that the peak may not be far off (Guardian)

  • China’s new foreign minister warned that soaring US-China tensions risk blowing past any guardrails in the relationship, showing that divisions between the world’s biggest economies are becoming more entrenched (BBG)

  • The world’s largest social networking company, Meta is eliminating more jobs, on top of a 13% reduction in November, in a bid to become a more efficient organization (BBG)

  • Japan’s maiden launch of its new flagship space rocket ended in failure on Tuesday when controllers issued a destruct command just 15 minutes after liftoff, the country’s space agency said (CNN)

  • The number of people recorded as uncontactable following Cyclone Gabrielle is now officially at zero, with police saying all those previously listed are now accounted for (Suff)

Deal Flow

Investments / M&A

  • Shares in dual-listed church payment and management software company Pushpay have dropped 12 cents today after shareholders formally blocked a $1.539 billion takeover offer last week (NBR)

  • Mining giant Sibanye-Stillwater is a hair’s breadth away from delisting New Century Resources from the ASX, after five big lines of New Century shares sold into Sibanye’s hostile takeover offer in Tuesday’s trading and lifted its stake to more than 73 per cent (AFR)

  • Altria Group Inc said on Monday it would buy startup NJOY Holdings Inc for about $2.75 billion USD in cash, in a fresh bet by the Marlboro maker on the e-cigarette market after losing billions through its investment in Juul (RT)

Equity Raises

  • SoftBank Group Corp.’s Arm Ltd. is seeking to raise at least $8 billion in a US initial public offering (BBG)

  • Embattled Indian conglomerate Adani Group said it prepaid share-backed financing of 73.74 billion rupees ($901.16 million), as it looks to allay fears over leverage and debt since a U.S. short seller's critical report sparked a stock rout (RT)

Debt 

  • London Stock Exchange-listed banking mutual Nationwide Building Society has held investor calls with Australian debt investors this month, in what could be laying the groundwork for its maiden Australian dollar deal (AFR)

Daily Picks

  • Have a look at this article highlighting Anew, a bottled water company with a new way of tackling a world of water bottle waste

Job Board

New Zealand

  • Murray & Co Investment Banking Intern and Grad Roles

    • Apply here for internships

    • Apply here for graduate roles

Australia

  • Goldman Sachs Investment Banking Intern

    • Apply here by 18th July for Melbourne and Perth and August 1 for Sydney

  • Macquarie gradate roles

  • Add poll in here

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