Students!! - Watch out for scabies!

April 14, 2023

Good Morning,

Scabies cases are rising among New Zealand students and ointment stock is running low. Elsewhere in the world, North Korea launches a ballistic missile landing in the waters between North Korea and Japan. In South Australia, plans to roll out bans on smoking and vaping in some public areas are being developed, and a laundromat for $5 is on the market in Melbourne.

Let's jump in.

Before The Bell

Markets

  • Decreases were experienced by ASX200, S&P500, Nasdaq and US treasury bonds over the last day with Nasdaq dropping by nearly a whole percentage point.

  • Bank of America clients sold US equities of all sizes last week, pulling roughly $US2.3 billion ($3.5 billion) despite the relative quiet in the sharemarket. (AFR)

  • An upbeat jobs report lifted bond yields and the Australian dollar, supporting the case for the Reserve Bank to resume its cash rate increases after a pause this month. (AFR)

  • China's exports unexpectedly surged in March, with officials flagging rising demand for electric vehicles, but analysts cautioned the improvement partly reflects suppliers catching up with unfulfilled orders after last year's COVID-19 disruptions. (RT)

  • U.S. stock index futures were subdued on Thursday ahead of fresh economic data that could offer clues on the Federal Reserve's monetary tightening plans, while investors also waited for earnings from big banks after turmoil in the sector last month. (RT)

  • A sale of UK benchmark bonds attracted the strongest demand in more than two years, as investors brace for an end to the Bank of England’s monetary tightening cycle. (BBG)

  • UK economy will avoid recession despite no growth in February, says Hunt (BBC)

Earnings and Data

  • Whitehaven Coal shares plummet as production guidance downgraded (AFR)

  • Delta Air Lines (DAL.N) on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips. Shares of the company rose 4.45% to $35.20 in early trading. (RT)

  • Ebos Group, up 80c or 1.78% to $45.80, and Mainfreight, gaining 54c to $70.99, led the market higher. Vector increased 11c or 2.78% to $4.06. (GR)

  • Other decliners were Michael Hill down 3c or 2.75% to $1.06; Gentrack falling 12c or 3.69% to $3.13; Rakon shedding 2c or 2.3% to 85c; Steel & Tube decreasing 2c or 1.82% to $1.08; and NZ Oil & Gas down 2c or 5.26% to 36c. (GR)

News Summary

  • Scabies cases are spreading among student populations, but access to treatment is proving difficult, with topical creams in short supply around the country. (RNZ)

  • How many billions will it cost to protect New Zealand against future weather disasters? The government is allocating extra science funding to find out. (RNZ)

  • Nearly 40 percent of respondents in a new survey are unable to access emergency funds within a week without sliding into debt, fuelling concerns people are not ready to weather the potential recession. (RNZ)

  • The Government has scrapped a major part of its unpopular Three Waters reforms, ditching the four mega entities that would have delivered Three Waters (freshwater, wastewater, and stormwater) services to households. (Herald)

  • A ferry crowded with passengers has sunk and its skipper has been critically injured after a collision with a pleasure boat in the Bay of Islands. (Herald)

  • Labour chooses teen candidate for Waitaki electorate (Herald)

  • Nearly 2000 probation officers and other Community Corrections staff have begun industrial action after nine months of negotiations failed to get a deal on pay and workloads. (RNZ)

  • Instinct took over when a grandmother on an early morning coffee run in Cambridge noticed a ramraid in progress on the main street. (Stuff)

  • Westpac has become the second bank to raise interest rates after the official cash rate (OCR) was increased last week – but it has also reduced a range of rates. (Stuff)

  • It seems like a deal too good to be true: an entire laundrette, recently renovated and in a central urban location in Melbourne, on sale for the bargain price of $5. (9 News)

  • Smoking and vaping will soon be banned in more public settings under a new plan to curb smoking and e-cigarette use in South Australia. (9 News)

  • North Korea launched a ballistic missile that landed in the waters between the Korean Peninsula and Japan on Thursday, prompting Japan to order residents on an island to take shelter as a precaution. The order has been lifted. (9 News)

  • Two Hong Kong men have been arrested for disorderly conduct after they shot water guns at policemen during an event celebrating Songkran, the Thai new year. (BBC)

  • E-cigarette manufacturer Juul Labs has agreed to pay $462m (£372m) to settle claims by six US states after being accused of targeting teenagers. (BBC)

Deal Flow

Investments / M&A

  • The Maritime Union has rejected the findings of a new report pushing privatisation at the Ports of Auckland, saying mixed ownership would not be good for Auckland. (NBR)

  • Fund manager Fisher Funds has announced an end to performance fee charging on its KiwiSaver funds, saying its acquisition of Kiwi Wealth had created economies of scale. (NBR)

  • According to The Australian, Sydney-based private equity investor Quadrant Private Equity was “moving towards” a sale of the more than 50 Jetts fitness gyms in New Zealand, the bulk of them in Auckland. (NBR)

  • Dexus has hung up the for-sale sign at its Sydney CBD office towers at 1 Margaret Street and 44 Market Street in separate sale processes that are expected to test unlisted office asset valuations. (AFR)

Equity Raises

  • Australian superannuation fund UniSuper has gained approval from the Crown to acquire more than 10% of fibre network owner Chorus, according to a disclosure to the NZX and ASX today. (NBR)

  • TPG Capital-backed Greencross is bulking up its pet retailing empire, acquiring a smaller, Melbourne-based rival Habitat Pet Supplies. (AFR)

Debt

  • Sydney Airport and Telstra have both teed up roadshows for the coming week, which investors expect will roll into euro-denominated investment-grade debt deals. (AFR)

  • Global creditors, debtor nations and international financial institutions on Wednesday agreed ways to jumpstart and streamline long-stalled debt restructuring efforts, including through improved data sharing and clearer timetables. (RT)

Daily Picks

  • Public charging stations may not be as safe or reliable as you think; see this article for more.

  • Read here for a summary on the Pentagon leaks that occurred online in March.

  • See here to read about Elon Musk's opinion on rising hate speech on Twitter.

Job Board

New Zealand

  • BDO graduate and intern roles - Apply here

  • Bell Gully summer intern roles - Apply here

  • Buddle Findlay summer clerkships - Apply here

  • Chapman Tripp winter and summer clerkships and clerk roles - Apply here

  • Deloitte intern roles - Apply here

  • Deloitte graduate roles - Apply here

  • DLA Piper insight programme,summer clerkships and clerk roles - Apply here

  • EY graduate and intern 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

  • Russell McVeagh summer clerkships - Apply here

  • Russell McVeagh clerks - 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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