NZ in recession tomorrow?

March 15, 2023

Good Morning,

Global bank stocks continue to slump despite reassurance from US officials, US, UK and Australia agree on a multilateral nuclear submarine project, China to reopen doors to foreign tourists, Bitcoin continues to benefit from the banking fallout in the US and the last ditch efforts to keep teachers from striking tomorrow fails. 

Let's jump in.

Before The Bell

Markets

  • U.S. stock futures rose on Tuesday morning after the Dow Jones Industrial Average notched a fifth day of losses. Traders also looked ahead to a key inflation report due Tuesday (CNBC)

  • Bitcoin continued to gain momentum in Tuesday morning trading in Asia after a bounce back yesterday as regulators acted to backstop the U.S. banking industry (YH)

  • Global financial stocks have lost $465 billion in market value due to the Silicon Valley Bank collapse. The MSCI Asia Pacific Financials Index dropped around 2.7 per cent to the lowest since November 29, widening losses early Thursday (BT)

  • The pan-European STOXX 600 index closed the day 2.3% lower, with bank, financials and insurer stocks, along with energy stocks, bearing the brunt of selling pressure (RT)

Earnings and Data

  • Tomorrow morning, fourth quarter GDP figures will be released, with a 0.3% quarter-on-quarter contraction expected by ANZ and a 0.5% fall expected by ASB (NBR)

  • DocGo Inc, a home healthcare service company came out with quarterly earnings of $0.11 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items (Nasdaq)

News Summary

  • The blame game is on for who caused Silicon Valley Bank’s collapse, and the tech sector is pointing the finger at SVB CEO Greg Becker for allowing his company to go down in history as the second-biggest US banking failure on record (CNN)

  • The US, UK and Australia have unveiled details of their plan to create a new fleet of nuclear-powered submarines, aimed at countering China's influence in the Indo-Pacific region (BBC)

  • China will reopen its borders to foreign tourists for the first time in the three years since the COVID-19 pandemic erupted by allowing all categories of visas to be issued from Wednesday (RT)

  • Bitcoin continued to gain momentum in Tuesday morning trading in Asia after a bounce back yesterday as regulators acted to backstop the U.S. banking industry following failures at California-based lenders (YH)

  • Primary teachers will still strike tomorrow after today’s meeting between the New Zealand Educational Institute (NZEI) negotiation team and the Ministry of Education led to a stalemate (Herald)

Deal Flow

Investments / M&A

  • Australian ferry and bus operator Kelsian Group is set to enter the United States market via the acquisition of coaches and charter bus business All Aboard America! Holdings (AFR)

  • Volkswagen plans to invest 180 billion euros ($192.76 billion) over the next five years in areas including battery production and its North American operations, it said on Tuesday, with spending on combustion engines to fall from 2025 (RT)

  • O’Keeffe’s Burgundy Diamond Mines has signed a $US136 million ($209 million) deal to acquire the Ekati Diamond Mine in Canada and is seeking to fund it with a $US150 million ($231 million) equity raising (AFR)

Equity Raises

  • Canadian lithium explorer Patriot Battery Metals was gearing up to put a $25 million odd raising to investors, in its first cash call since it listed CDIs on the ASX in December (AFR)

  • Chinese driverless technology startup Guangzhou WeRide Technology Co. has filed confidentially for an initial public offering in the US and is looking to raise as much as $500 million (BBG)

Daily Picks

  • Check out NBR's analysis on the economic cost of NZ's natural disasters here

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

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