☕️ China's big zero

While most of the western world is freaking out about surging inflation, China has the opposite problem.

July 11, 2023

Good morning.

While most of the western world is freaking out about surging inflation, China has the opposite problem.

Consumer prices printed at 0% in June in the world’s second largest economy, which is also Australia’s second largest trading partner and increasingly, the engine of global growth. The risk of deflation there is something to keep an eye on.

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Are theme parks back? Ardent Leisure was the standout gainer yesterday on the ASX, with beaten down shares in the Dreamworks owner rocketing after it said its theme parks business recorded its highest revenue and ticket sales since 2016. The company also floated potential capital management initiatives, which always excites the punters on the dividend hungry ASX.

The theme park revival might be an exclusively Australian phenomenon though, as reports in the US suggest Disney is currently experiencing the exact opposite trend.

THE QUICK SYNC

  • China’s CPI rose by 0% in June, sparking deflation fears (Reuters)

    • China has moved to extend support to property developers to prop up its struggling real estate sector (Bloomberg)

  • McKinsey, Deloitte and EY have banned the use of TikTok on work-issued devices in Australia (AFR)

  • UK Chancellor Jeremy Hunt is set to announce a deal to get the country’s largest pension funds to invest 5% of their assets, or £75bn into startups (Guardian)

  • Twitter’s traffic is tanking as Meta’s Threads surpasses 100m users (CNBC)

  • The era of the rockstar research analyst is long gone (Financial Times)

TRADING FLOOR

M&A:

  • Hanwha, a Korean conglomerate, is working through due diligence in Austal’s data room. (AFR)

  • InvoCare and TPG Capital were thrashing out the final details of the scheme implementation deed. (AFR)

  • An opportunistic fund suggested to be either Oaktree Capital Management or Apollo Global Management is in the mix for 7-Eleven. (The Australian)

  • HPS Investment Partners is believed to be in the process of refinancing Fitness and Lifestyle Group. (The Australian)

Capital Markets:

  • Lindian Resources had Euroz Hartleys rounding up investors for a $30m raising. (AFR)

  • Cyprium Metals was asking investors for a $35m cash injection. (AFR)

  • Next Capital has locked in $375m for its latest fund led by founding partners John White and Patrick Elliott. (AFR)

  • Wollemi Capital has raised $220m in one of the country's largest Series A capital rounds of 2023 to date. (BNA | AFR)

  • Regis Healthcare may be an obvious candidate for a potential privatisation. (The Australian)

VC:

  • Lyre’s, a non-alcoholic giant, has just closed a $34.5m funding round led by DSquared and Morgan Creek Consumer Fund. (SmartCompany)

Others:

  • Partners Group has tapped ex-ANZ M&A banker Toby Mannock as its next local managing director and head of private equity. (AFR)

THE WATERCOOLER