Russian Military Official Assassinated on Morning Run

Good Morning,

BNZ lowers home loan interest rates, rice prices in Asia soar, while the wholesale price of honey is shockingly low. In Iceland, a volcanic eruption slows, after spewing toxic gas. Six killed in a Chinese kindergarten following an attack by a 25 year old man. Big four companies force out over three dozen personnel due to misconduct over the past two years.

Let's jump in.

Before The Bell

Markets

• The benchmark S&P/NZX 50 Index slipped 2.925 points, or 0.02%, to 11909.810. On the broader market 67 stocks rose and 58 fell with $64.4 million shares traded. (Stuff)

• BNZ has increased a number of its home loan interest rates. (Stuff)

• The Reserve Bank of Australia’s decision last week to keep the cash rate on hold at 4.1 per cent appears not to have improved the mood, with consumer sentiment falling 0.8 points over the past week, according to the latest ANZ-Roy Morgan survey, released on Tuesday. (AFR)

• For the first time since July 2011, the three-year bond rate of around 4.2 per cent is equivalent to the nominal dividend yield on the benchmark S&P/ASX 200 Index. (AFR)

• The (US) dollar weakened to a two-month low on Tuesday after Federal Reserve officials signalled that the central bank was nearing the end of its tightening cycle, while the pound hit a 15-month high after pay growth exceeded expectations. (RT)

• Italian savers shifted 20 billion euros ($22.02 billion) out of deposits with domestic banks in May, while lenders continued to shrink credit to businesses and stepped up bond sales, Bank of Italy data showed on Tuesday. (RT)

• After bumpy start to the third quarter, stocks and bonds rallied together on Monday - with both two- and 10-year Treasury yields recoiling sharply back below 5% and 4% thresholds respectively. (RT)

• A “large pool of undervalued assets” in Hong Kong’s property market may spur more bargain hunting among their majority shareholders as valuations hit a 30-year low, according to JPMorgan Chase & Co. (BBG)

• Rice prices in Asia have surged to the highest level in more than two years as importers build up stockpiles on fears that the onset of El Niño will parch plantations and damage crops. (BBG)

Earnings and Data

• Foodstuffs North Island and South Island made $51.8 million in combined profit in their 2023 financial years, with the southern co-operative back in the black after two years of making a loss. (Stuff)

• Television channel Three owner Discovery NZ has reported a little-changed loss of $35 million for the year to the end of December as its costs and expenses rose in tandem. (Stuff)

• Meridian fell 0.72% to $5.54, Fisher & Paykel Healthcare rose 0.04% to $24.01 and Auckland Airport was 0.6% lower at $8.245. (Stuff)

• Summerset shares ended the day up 1.97% to $10.33. (Stuff)

News Summary

• Labour has well and truly lost its pandemic popularity, according to the latest political poll. (Stuff)

• A high profile radio host has admitted drink-driving and being almost four times over the legal breath alcohol limit. (Stuff)

• Me Today further hives off beekeeping operations - The wholesale value of honey for the 2023 season was less than the cost to produce it. (NBR)

• Big four consulting firms Deloitte, EY and KPMG have collectively forced out three dozen personnel over the past two years for misconduct, including at least 14 partners. (AFR)

• China's planned export controls on gallium have caused frantic stockpiling of speciality semiconductor wafers made from the metal, according to the world's largest gallium buyer. (RT)

• A Russian military official who had commanded a submarine in the Black Sea and appeared on a Ukrainian blacklist of alleged war criminals has been shot dead by an unknown assassin while on his morning run. (RT)

• Amazon has launched a legal challenge against its inclusion in a group of companies subject to tough European Union online content rules, in a move that technology experts have said may prompt other tech giants to follow suit. (RT)

• A volcanic eruption in Iceland close to the capital Reykjavik is slowing, experts said on Tuesday, hours after officials had warned it was spewing out "life-threatening toxic gas". (RT)

• France will join Britain in supplying Ukraine with long-range cruise missiles, which can travel 250 km (155 miles), a move that allows Ukrainian forces to hit Russian troops and supplies deep behind front lines, French officials said on Tuesday. (RT)

• Hyundai Motor Co. recruited female technicians for automobile manufacturing in South Korea for the first time, following union pressure to improve gender equality. (BBG)

• Six people were killed and one injured after a 25-year-old man attacked a kindergarten in southern China’s Guangdong province Monday, the local government said. (BBG)

• A group of Chinese female economists and entrepreneurs who dined with Treasury Secretary Janet Yellen have been blasted by online nationalists for betraying their country by interacting with the US official. (BBG)

Deal Flow

Investments / M&A

• Illion’s former chief executive, Simon Bligh, has teamed up with investors to buy family-owned firm Worthington Clarke, which helps trustees and lawyers match missing assets with their rightful owners. (AFR)

• Foxconn said it intends to apply for incentives under India's semiconductor production plan, a day after the Taiwanese firm split with Vedanta on a $19.5 billion chipmaking joint venture. (RT)

• U.S. Senator Elizabeth Warren, a Democrat and frequent merger critic, joined three other lawmakers on Tuesday to urge the Defense Department to thoroughly review defense contractor L3Harris Technologies' $4.7 billion deal for Aerojet Rocketdyne Holdings. (RT)

VC & Fundraising

• A 50% stake in Eastland Generation is on the market as the power company seeks capital for what it says are further generation opportunities totalling hundreds of millions of dollars. (NBR)

Equity Raises

• Listed medical device maker Atomo Diagnostics had its broker Bell Potter drumming up interest in an equity raising, after its shares climbed 136 per cent from 2.2¢ at June end to 5.2¢ on Monday’s close. (AFR)

Daily Picks

• Dozens of children across the world have been dying after drinking cough medicine, read more here.

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