Summer Storms Create Chaos for Victoria Power

February 14, 2024

Good Morning,

A Macquarie Group banker who earned more than their chief executive last year leaves Macquarie abruptly, resulting in a fall in Macquarie shares. JB Hi-Fi’s three new stores in New Zealand drive sales growth to $168.7 million. Russian forces build a 30km barricade made from old train carriages. The longest Super Bowl game will also go down as the most-watched TV programme in US television history.

Let's jump in.

Before The Bell

Markets

  • The Reserve Bank’s top brass fronted MPs yesterday afternoon to discuss financial stability, out-of-the-box inflation, as well as the future of cash, and the coalition Government’s plans for public sector cuts. (NBR)

  • The S&P/ASX 200 fell 11.3 points, or 0.2 per cent, to 7603.6 at the close, with four of the 11 industry groups finishing in the green. The All Ordinaries also shed 0.2 per cent. (AFR)

  • Australian shares are poised to rise, tracking further, though moderating, gains in New York. The S&P 500 reset in morning trade its record high, with Meta and Nvidia extending their stunning respective surges to start 2024 before pulling back. Bitcoin briefly topped $US50,000. (AFR)

  • The prospect of Donald Trump securing a second term as president of the United States stirs passionate responses. A significant portion of people believes Trump’s re-election would be disastrous for the economy and markets; a similar number thinks the same about the potential re-election of Democrat President Joe Biden. (AFR)

Earnings and Data

  • A 17% increase in net profit after tax (npat) to A$1.94 billion ($2.07b) for the six months to December 2023 has done little to slow the slide in CSL’s share price following an announcement yesterday that a new heart drug failed its trial. (NBR)

  • Nicholas O’Kane, who earned A$58m in 2023 as head of the commodities and global markets division (CGM), will step down from the role this month to “pursue opportunities outside Macquarie”. (NBR)

  • The opening of three new stores help drive JB Hi-Fi’s total sales growth in New Zealand by 5.1% to $168.7 million, even as comparable sales – which assess established stores sales success with previous comparable periods – fell by 1.2%. (NBR)

News Summary

  • Russian forces have constructed a nearly 20-mile (30km) barricade made of old train carriages in eastern Ukraine, thought to be a defensive fortification designed to slow any Ukrainian counterattack. (Stuff)

  • Catastrophic summer storms have wreaked havoc on Victoria’s electricity system, taking down transmission lines and forcing the state’s biggest coal power station offline, leaving half a million customers without power and stoking fears about the vulnerability of the grid. (AFR)

Deal Flow

Investments / M&A

  • Fletcher Building’s shock disclosure of further impairment charges and the possible resignation of chief executive Ross Taylor has left analysts questioning the board’s accountability for continuing bad news at the building and materials giant. (NBR)

  • Australian fund manager Betashares has marked $100 million under management sourced through New Zealand-based financial advice platforms and has signalled its intention to list some of its exchange-traded funds on the NZX in future. (NBR)

  • Famed property developer Tim Gurner has taken time away from taunting tradies. Street Talk understands the Gurner Group founder is in discussions with Roberts Co, the Sydney-based building contractor founded by Rich Lister Andrew Roberts. (AFR)

  • Incitec Pivot’s protracted $1.5 billion fertiliser sale process has underbidders champing at the bit. (AFR)

VC & Fundraising

  • Corporate adviser 333 Capital, best known for advising Bain Capital on its acquisition of Virgin Australia during the pandemic, has secured a role on Wiggins Island Coal Export Terminal’s monster refinancing. (AFR)

Equity Raises

  • Street Talk understands UBS’ bankers are on hand to canvass takeover interest, which sources said had amounted to half a dozen inbound inquiries, The Swiss investment bank was a joint lead manager on the company’s 2022 sharemarket float alongside Goldman Sachs, Bank of America and Credit Suisse. (AFR)

Daily Picks

  • The longest Super Bowl game will also go down as the most-watched TV programme in US television history. See more here.

  • Timeline of Israeli raid in Gaza that rescued two hostages and killed dozens of Palestinians. See this article for more.

The Daily Deck is sponsored by Industrial Equity, LLC

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