☕ Cops called on PwC

Good morning. Inflation in the UK fell far less than expected, which led markets to predict further rate rises and, thereby, a selloff in bonds. Inflation was expected to be 8.2% but clocked in at 8.7%.

May 25, 2023

Good morning. Inflation in the UK fell far less than expected, which led markets to predict further rate rises and, thereby, a selloff in bonds.

Inflation was expected to be 8.2% but clocked in at 8.7%.

—

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MARKET MOVERS

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

Market News: Despite guiding to record sales and EBIT, Universal, the youth fashion retailer, copped a 24% share price drop after painting a tough picture for the short term.

The company noted, “trading conditions observed throughout April and May to date have further tightened, indicating that some customers are reducing their spending”.

THE QUICK SYNC

  • PwC tax: Aussie government refers PwC scandal to police. (SMH | AFR)

  • Handing over $127 trillion: The greatest wealth transfer in history is here. (SMH)

  • Company earnings guidance is wrong about 70pc of the time. (AFR)

  • Why this billion-dollar Rich Lister values cold-calling and being kind. (AFR)

  • CBA rolls out shiny new tech tools - here’s what to expect. (AFR)

  • UK inflation: Food prices 'worryingly high' as sugar and milk soar. (BBC)

TRADING FLOOR

M&A:

  • Fortescue has hired Citi to run a strategic review of its entire power plant operations. (AFR)

  • Johnson Controls announced it will acquire Gordon Brothers Industries, Australia’s largest industrial refrigeration (IR) solutions. (FM)

  • Fortitude Investment Partners has taken a majority stake in electricity equipment supplier The Energy Network. (AFR)

  • Soul Patts will outlay as much as $100m to acquire Carlile Swimming. (AFR)

  • Duncan Saville and Phil King’s Regal Funds Management have emerged with sizeable stakes in personal lender MoneyMe. (AFR)

  • A $3bn takeover battle playing out in Europe has thrown the spotlight on Reliance Worldwide as a potential takeover target. (The Australian)

  • Kindred Co has hit the market with sales documents for its lifestyle brands currently in the market. (The Australian)

  • What communities sale means for Lendlease & Stockland: analysts. (The Australian)

Capital Markets:

  • Education Centre of Australia Group has Macquarie Capital and Bank of America teeing up investor meetings for a potential $500m ASX listing. (AFR)

  • Redox has staffed Ord Minnett as a joint lead manager alongside UBS for its mooted billion-dollar-plus IPO. (AFR)

  • Ixom is believed to be working on a refinancing of the operation. (The Australian)

VC:

  • Fleet Space Technologies has raised $50m in a Series C round

    led by Blackbird. (StartupDaily)

Others:

  • None

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