North Korea's Spy Satellite - Coming in June

Author

Sophie Wood
May 31, 2023

Good Morning,

There were some lower daily changes to the markets yesterday among more action in the U.S. regarding the debt-ceiling. As a result of this, oil prices fell 3% on Tuesday. Economists for ANZ predict the housing market could rebound later this year but also that the Reserve Bank will increase rates once again. In the UK, lenders are taking mortgage deals off the market and increasing interest rates they charge.

Let's jump in.

Before The Bell

Markets

  • Small losses in the market today, with NZX dropping 0.5% and ASX dropping as well. Bitcoin falls again along with NZ and Aussie bonds.

  • Gold started off at a loss but quickly gained to 0.6% growth at close.

  • ANZ Bank economists are picking the housing market may start to rebound in the second half of the year but the Reserve Bank will surprise with one more rate rise as inflation remains stubborn. (RNZ)

     

  • The S&P/ASX 200 shed 8.1 points to 7209.3 on Tuesday and the broader All Ordinaries Index lost 7.8 points to 7387.3. (AFR)

  • Wall Street was tipped for a strong open on Tuesday, while the cost of insuring against a U.S. debt default fell and the safe-haven dollar weakened in a sign of broad optimism across markets that a U.S. debt ceiling crisis might be averted. (RT)

  • A bipartisan deal to raise the $31.4 trillion U.S. debt ceiling faces its first test in Congress on Tuesday, setting up what could be a nail-biting week of voting before the United States runs out of money to pay its bills. (RT)

  • Relief over the likely lifting of the U.S. debt ceiling this week is being reined in by the uncomfortable prospect of even higher Federal Reserve interest rates - and the further evaporation of any 2023 easing hopes. (RT)

  • The euro zone's top banks may take a hit if their financial clients, such as funds, insurers and clearing houses, withdrew their deposits or otherwise ran into trouble, the European Central Bank warned on Tuesday. (RT)

  • Chinese stocks are facing one grim milestone after another, with waning investor confidence signaling that things will likely get worse before getting better. (BBG)

  • Nigeria’s dollar bonds and equities rallied after President Bola Tinubu said he’ll end the nation’s $10 billion fuel-subsidy program and announced plans to adopt a uniform exchange rate. (BBG)

  • US Home Prices Climb as Tight Market Collides With Demand Uptick (BBG)

Earnings and Data

  • Oil prices fell by about 3% on Tuesday as concerns about the U.S. debt ceiling pact cooled the market's risk-on sentiment and mixed messages from major producers clouded the supply outlook ahead of their meeting this weekend. (RT)

  • Trade Window Holdings has reported a net loss after tax of $9.8 million for its 2023 financial year to the end of March, having narrowed from a $10.8m loss in FY22. (NBR)

News Summary

  • Retirement village provider Arivda Group has criticised the Government’s effort to address long-standing pay issues amongst aged care nurses, saying it has had no “discernible impact” on addressing worker shortages. (NBR)

  • Businesses and households expect to face multiple economic headwinds and uncertainty for the rest of the year, according to fresh predictions out today. (NBR)

  • Changes to New Zealand's surrogacy laws are set to be fast-tracked, with the government deciding to adopt a member's bill. (RNZ)

  • Deepfaking it: America's 2024 election collides with AI boom (RT)

  • Thailand’s Move Forward Party-led coalition set up a power transition team as it prepares to form the next government after sweeping the May 14 election. (BBG)

  • The Neom hydrogen project, part of a $500 billion industrial and tourist development on Saudi Arabia’s Red Sea coast, will begin producing fuel for transportation next year, according to the head of the venture. (BBG)

  • UK lenders are removing mortgage deals from the market again and increasing the rates they charge borrowers for fixed-rate products. (BBG)

  • Mercuria Energy Group’s ship-fueling business Minerva Bunkering started deliveries in Egypt, becoming the first international service to enter the market after being awarded a license to do so earlier in May. (BBG)

  • European natural gas fluctuated near the lowest level in two years as traders assessed the impact on demand from record German solar output while new outages were announced at a Norwegian facility. (BBG)

  • North Korea said Tuesday it would launch its first military spy satellite in June and described space-based reconnaissance as crucial for monitoring US “reckless” military exercises with South Korea. (Stuff)

  • A bus carrying Hindu pilgrims to a shrine in Indian-controlled Kashmir skidded off a highway bridge into a Himalayan gorge Tuesday, killing at least 10 people and injuring 55, police said. (Stuff)

Deal Flow

Investments / M&A

  • Tesla Inc CEO Elon Musk told Chinese foreign minister Qin Gang on Tuesday that he was willing to expand business in the country, the Chinese foreign ministry said on Tuesday after a meeting between the two in Beijing. (RT)

  • Asda has struck a deal to buy EG Group’s UK and Ireland gas-station business in a move that aims to create a convenience retailing empire. (AFR)

VC & Fundraising

  • Messer SE secured an investment from GIC Pte that values the industrial gas maker at more than €12 billion ($12.9 billion) including debt, marking the second mega deal in as many months for a century-old, family-owned company in Germany. (BBG)

Daily Picks

  • There are growing calls for tighter regulations on vaping as teachers and experts say the problem is spiralling out of control. Read more here.

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