RBNZ putting an early bird sale on USA goods

Good Morning,

Reserve Bank of New Zealand is expected to hike the official cash rate to 4.25% later today to mitigate raging inflation. Over 160 were killed and many are still unaccounted for after an Earthquake hit Java, Indonesia's main island. Finally, Coinbase shares tumble after Monday's close on the NASDAQ as cryptocurrencies continue to show fear from the FTZ collapse. 

Let's jump in.

Before The Bell

Markets

• Trade Me posts loss despite a rise in revenue, accounts show it also booked a $3.4m loss from its 13.5% investment in retail investor platform Sharesies. [NBR]

• The Reserve Bank of New Zealand is set to deliver the biggest hike in the official cash rate in more than 20 years on Wednesday, as it looks to step up its fight against rampant inflation. Many economists, including ANZ's Chief Economist, expects it will peak at 4.75%. [Stuff]

• In spite of China's recent moves to mitigate their zero tolerance COVID policy, Wall Street's main indexes closed on Monday down with fears China could resume its strict policy. [RT]

• Major stock markets in the Gulf fell in early trade on Tuesday on growth worries following China's ongoing COVID-19 flare-ups. Exacerbated by a weak oil demand. The Qatari index is on course to get punished by their sixth consecutive session loss. [RT]

Earnings and Data

• Argosy Property, a multibillion-dollar diversified landlord, saw last year’s $91 million revaluation gains turned to $23m devaluations or losses, pushing down bottom-line profit. [Herald]

• Automative retail and finance company Turners has reported a largely unchanged half-year profit, owing to ongoing growth in used car sales, despite a wider market slowdown. For the six months ending in September, it had made a net profit of $17.1 million, compared to $16.9m the year before. Its revenue was $185.3m compared to $166.8m and underlying earnings were $26.1m compared to $24.5m (NZD). [RNZ]

• Dell Technologies announces financial results for its fiscal 2023 third quarter. Revenue was $24.7 billion (USD), down 6%. Operating income was a record $1.8 billion [USD], up 68%. [Barron's]

• Zoom shares slumped more than 7% in extended trading on Monday after the video-chat company issued weaker-than-expected revenue guidance for its full fiscal year. Their earnings were $1.07 per share (USD). While revenue was $1.1 billion [USD] as expected by analysts. [CNBC]

News Summary

• Borrowers warned to brace for another cost-of-living blow from the Reserve Bank of New Zealand on Wednesday. Analysts expect recent inflation data will persuade RBNZ to raise the official cash rate by 75 basis points to 4.25%. The RBNZ will announce their latest adjustment at 11 am TODAY. [Stuff]

• Speculation is swirling around the health of Digital Currency Group, a sprawling $US10 billion ($16 billion) crypto empire which includes brokerage Genesis, asset manager Grayscale, and industry news website CoinDesk. [Herald]

• Indonesia Earthquake; Earlier on Tuesday Indonesia's national disaster response agency, the BNPB, put confirmed deaths at 103 with 31 people missing - but warned this number was likely to rise. Many casualties likely to be children. [BBC]

Deal Flow

Investments/ M&A

• The country’s biggest listed contracting/recruitment firm PeopleIN has called in the bankers to consider ways to unlock value for shareholders, including a potential private equity buyout. [AFR]

• Thoma Bravo’s pushing ahead with a $2.10 a share bid for aerial mapping business Nearmap, despite a worrying trading update and mounting litigation claims against the ASX-listed group. [AFR]

• A consortium led by Mark Stewart has made an offer to acquire Nelson-based fish oil refinery Sea Dragon. [NBR]

• P&G won’t rely on acquisitions to drive growth, CEO says. Higher financing costs and lofty expectations from sellers are among the factors standing in the way. [BBG]

VC & Fundraising

• Tech skills training and recruitment start-up Academy Xi’s investor Anthony Bohm has taken the reins as the chief executive officer, as the six-year-old business preps for growth and an equity raise in the coming year. [AFR]

• Citigroup Inc. joined Goldman Sachs Group Inc. in predicting that the Persian Gulf’s boom in initial public offerings is far from over. [BBG]

Equity Raises

• The Christchurch based outdoors hunting supplies company Bushbuck is looking for crowdfunding of approximately $2 million [NZD] for an overseas expansion into Australia. [NBR]

• Australian cryptocurrency exchange Swyftx has run to market for a short-term capital injection, seeking to shore up its balance sheet and ability to fund longer-term growth plans. [AFR]

• Dual listed natural gas and helium producer Renergen had stockbroker MST drumming up interest in a quick $10 million placement after market close on Tuesday. [AFR]

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