Rising tension in the NZ housing market again?

April 05, 2023

Good Morning,

New Zealand to expect an increase in the living wage in September to $26, among some difficulties in the housing market currently. Dogecoin jumps in value after Elon Musk replaces Twitter logo with a Shiba Inu. Italy becomes the first Western country to ban ChatGPT, & Australia bans app Tiktok on all government phones and devices.

Let's jump in.

Before The Bell

Markets

  • New property listings around the country last month plunged to a 16-year record low for the month of March, according to latest figures. (RNZ)

  • Signs of stress are emerging in New Zealand’s housing market, with the number of people behind on loan repayments jumping as surging interest rates bite. (AFR)

  • The Reserve Bank of Australia (RBA) has pressed pause on its historic cycle of interest rate hikes, keeping the cash rate target on hold at 3.6 per cent. (9 News)

  • Petrol prices across Australia are continuing to rise, with experts saying prices are not expected to drop until ANZAC day weekend. (9 News)

  • Dogecoin jumps after Elon Musk replaces Twitter bird with Shiba Inu (9 News)

  • Oil prices have surged after several of the world's largest exporters announced surprise cuts in production. (BBC)

  • MSCI Inc.’s Asia-Pacific benchmark fell 0.2%, with notable weakness in Hong Kong, where Alibaba Group Holding Ltd. was one of the biggest contributors to the decline. (BBG)

  • The Reserve Bank (RBNZ) has finished designing a new type of mortgage lending restriction, which it could impose on banks from March next year. (Herald)

  • U.S. Treasury yields rose slightly Tuesday as traders weighed the prospects of higher Federal Reserve rates going forward. (CNBC)

  • European markets were modestly higher Tuesday, as investors continue to weigh the impact of a surprise production cut by the OPEC+ alliance. (CNBC)

  • Australian shares advanced for a seventh consecutive session on Tuesday after the Reserve Bank kept interest rates on hold as the central bank assesses whether it has tightened policy enough to bring down inflation. (AFR)

  • The Dow and S&P 500 are coming off their fourth straight day of gains, rising nearly 1% and 0.4%, respectively, on Monday. The Nasdaq, meanwhile, slipped 0.3%. (CNBC)

Earnings and Data

  • Dairy giant Fonterra has lowered its forecast milk price payout for the current season to a range of $8.00 to $8.60 per kilogram of milk solids (kgMS). (RNZ)

  • Italian luxury sneaker brand Golden Goose reported a 30% rise in revenues last year and sees scope for further growth by expanding beyond its core product range. (RT)

News Summary

  • A 19-year-old man's name will remain secret after he shared drugs that led to the “unfortunate death” of a West Coast teen. (Stuff)

  • TVNZ says Simon Power has advised its board of his intention to step down as chief executive at the end of the company’s financial year, on June 30. (Stuff)

  • Massey University students say a shift to controversial online recorded exams could disadvantage students and invade their privacy. (Stuff)

  • The latest NZIER Quarterly Survey of Business Opinion suggests the economic rebalancing being engineered by the Reserve Bank is underway, with signs that labour shortages were easing. (Herald)

  • Business confidence has recovered slightly from record low confidence in the previous quarter, according to economic consultancy NZ Institute of Economic Research. (NBR)

  • A third baby has died from whooping cough this year, with a warning there may be an undetected spread in the community. (RNZ)

  • Cameras made by Hikvision and Dahua - both of which are partly state-owned by the Chinese Communist Party - have been found in New Zealand government buildings. (RNZ)

  • The government deficit is tracking higher than forecast on the back of a lower tax take. (RNZ)

  • More Queenstown businesses are looking to buy accommodation for their staff with the rental shortage causing some employees to leave before their first day. (RNZ)

  • A large drop in the amount of coal being burned to make power, and record wind generation, is behind a fall in the latest greenhouse gas emissions figures. (RNZ)

  • Attorney-General Mark Dreyfus has confirmed that TikTok will be banned on government phones and devices "as soon as practicable" in Australia. (9 News)

  • Thousands of New Zealand nurses are registering to work in Australia in pursuit of better pay and conditions, amid staffing shortages and industrial action in their home country. (Guardian)

  • Fast food chain McDonald's is temporarily closing its US offices this week ahead of an expected announcement on corporate job cuts. (BBC)

  • Sultan Al Jaber was selected to lead COP28 — the most important climate summit. He also runs the oil and gas behemoth Adnoc. (BBG)

  • Italy last week became the first Western country to ban ChatGPT, the popular AI chatbot. (CNBC)

  • The living wage is being increased to $26 per hour from 1 September. (RNZ)

  • China's largest banks will see near-term revenue and margin pressures on a persisting property sector downturn, higher costs and a worsening global macro outlook, analysts said, clouding growth prospects for the world's second-largest economy. (RT)

Deal Flow

Investments / M&A

  • A US class action led by the New Zealand Methodist Trust Association, alleging false and misleading statements by executives at one of the world’s biggest tech companies, has won a US$75 million settlement. (NBR)

  • Listed carpet-maker Bremworth's Napier yarn spinning plant will be offline for a "significant" amount of time after being flooded during Cyclone Gabrielle. (NBR)

  • Iconic online retailer EziBuy, founded in the 1970s by former NBR Rich Listers the Gillespie family, has gone into administration. (NBR)

  • The power company Mercury has inked a long-term deal with tech giant Amazon for renewable energy for its Auckland data centres, due to launch next year. (RNZ)

  • A new entity wants to set up a publicly owned company to buy the Turoa skifield on Mount Ruapehu and its assets in Ohakune. (RNZ)

  • UBS is planning a return to wealth management in Australia – some eight years after it exited the local market with a spin-off – as it works through last month’s 3 billion Swiss franc ($4.9 billion) takeover of rival Credit Suisse. (AFR)

  • Melbourne-based skincare group Aesop has been offloaded by its Brazilian parent, Natura & Co, to global giant L’Oreal in a deal that values the Australian-founded company at $US2.53 billion ($3.7 billion), including debt. (AFR)

  • World Wrestling Entertainment Inc (WWE.N) will combine with Endeavor Group-owned (EDR.N) mixed martial arts franchise UFC to form a new, publicly listed entertainment giant valued at about $21 billion, the companies said on Monday. (RT)

  • Brookfield Asset Management has sold down its 2.65% stake in AGL for $149m (AUD) at an 8c a share premium (AFR)

  • PE firm Navis Capital has taken a majority stake in Caring Group a provider of in-home and complex care. The deal was worth ~$150m (AUD) (AFR)

  • Skincare brand BWX stake in Go-To is on the sale block. They are attempting to sell their stake for ~$105m (AUD) (AFR)

VC & Fundraising

  • KKR & Co Inc (KKR.N) on Tuesday said it had closed its sixth and largest European private equity fund at $8.0 billion, a significant boost for the investment firm at a time of market volatility and sinking interest in major acquisitions. (RT)

  • Software startup Clear Dynamics is trying to raise $20m (AUD) at a $40m pre-money valuation (AFR)

  • The U.S International Development Finance Corporation (DFC) has made equity investment to the tune of $25 million in a new fund by Pan-African venture capital firm Novastar Ventures, to back founders building agriculture and climate solutions (TC)

  • Zyod, an Indian startup offering apparel sourcing and manufacturing to fashion brands globally, has raised $3.5 million in a seed funding led by Lightspeed Venture India Partners. (TC)

  • New funding shows the chill of Australian start-up funding winter (AFR)

Equity Raises

  • Uranium mining company ERA has put a $369m (AUD) rights issue to shareholders (AFR)

  • Gas play Hartshead Resources was seeking $20m (AUD)

  • African oil and gas explorer Invictus Energy was seeking $10m (AUD) (AFR)

  • Biotech Cynata Therapeutics was trying to raise $10m to $12m (AUD) (AFR)

Debt, Bankruptcy and Restructuring 

  • Rising costs, interest rates and ultimately recession could break a rising number of small- and medium-sized businesses (SME), according to a new survey. (RNZ)

  • More than 30 jobs will be lost in Hawke's Bay with Ngāti Kahungunu announcing the closure of struggling fisheries company Takitimu Seafoods after years of losses. (RNZ)

  • BWX has entered receivership (AFR)

Daily Picks

  • For some information on Donald Trump's indictment, see this article by AFR.

  • Electric carmaker Tesla has been ordered to pay almost $3.2m (£2.6m) to a black former worker after he won a racial harassment lawsuit. (BBC)

Job Board

New Zealand

  • BDO graduate and intern roles - Apply here

  • Deloitte intern roles - Apply here

  • Deloitte graduate roles - Apply here

  • Forsyth Barr associate analyst - Apply here

  • Forsyth Barr associate analyst (global equities) - Apply here

  • Grant Thornton graduate roles - Apply here

  • KPMG graduate and intern roles - Apply here

  • PWC graduate and intern roles - Apply here

Australia

  • Citadel Securities graduate and intern roles - Apply here

  • Goldman Sachs Investment Banking Intern - Apply here

  • IMC graduate and intern roles - Apply here

  • Jarden

    • Graduate role - Apply here

    • Summer internships - Apply here

  • Macquarie graduate roles - Apply here

  • Optiver

    • Graduate role - Apply here

    • Internships - Apply here

The Daily Deck is sponsored by Industrial Equity, LLC

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