☕️ Donezo

Is the Fed now done with interest rate hikes?

Good morning.

Is the Fed now donezo with US interest rate hikes? A weaker-than-expected inflation print overnight suggests the answer to that question is maybe yes. At the very least, it increases the likelihood that the FOMC will sit on its hands at its next meeting in September.

The bigger question is whether the cycle of tightening that began in March last year is now over. Could the Fed now wait to let the effects of that tightening seep through the economy? Will its next move on rates actually be to cut sometime next year?

Questions the Fed watchers and rate geeks can endlessly debate over the coming weeks.

ps. if this was forwarded to you, you can sign up for LOI at letterofintent.com.au

LOI Subscriber #TBD

MARKET MOVERS

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

Market News: It never ceases to amuse me that there is a company on the ASX called Downer, and that company is also a perennial underperformer, only ever in the news for the wrong reasons. Downer was the worst performer on the ASX yesterday (just one week after a pre-earnings confession, its actual numbers also disappointed). But it’s Friday, it’s been a long week, so lets zero in on one of the winners.

Shares of Boral, the building materials company now controlled by Kerry Stokes, hit a 5-year high after its results yesterday. Boral’s (controversial) CEO has won a lot of fans in the market for his discipline on costs and his ability to pass through price increases, which is becoming a theme this earnings season, both here and in the US. More expensive cement and concrete — the feel good news you want to read heading into the weekend.

THE QUICK SYNC

US CPI rose by a lower-than-expected 3.2% in July, compared to a year earlier. (CNBC)
- Slowing inflation should ease pressure on the Fed to raise interest rates. (Bloomberg)
Shares in UK-based estate agent Savills tumbled after it warned about the health of the British housing market. (City Index)
Disney shares were up after the company pushed through price increases for its streaming products. (WSJ)
- The era of cheap streaming is officially over. (CNN)

TRADING FLOOR

M&A:

Coronado Global Resources has reportedly pulled out of the contest to buy BHP’s Queensland coal mines. (The Australian)
Domestique and Morrow Sodali are working through the final details of a sale agreement and are yet to agree on terms. (AFR)
South32 and Sandfire Resources could possibly be allies in the Khoemacau race. (The Australian)
Carbon Resilience is kicking off a sales process for its 14-gigawatt development portfolio in Queensland. (AFR)
Frasers Property and Stockland are said to be targeting 100% of Lendlease’s Australian Communities business. (AFR)

Capital Markets:

Nido has Canaccord Genuity, MA Financial, and Wilsons rounding up cornerstone commitments for its IPO. (AFR)
Liontown’s focus shifts from a buyout to an equity raising to fund its Kathleen Valley project. (The Australian)
Dean Mintz was selling $100m worth of Cettire shares in the company via Barrenjoey. (AFR)
Rumble Resources has drafted in Wilsons for a $10 million capital raising to fund exploration. (AFR)

VC:

Awayco, an omnichannel retail software startup, has raised $11m. (BNA)
Kivera, a cloud security startup, has raised $5.1m in a fresh seed round led by Canada’s Round 13 Capital. (StartupDaily)
Alex Waislitz has led an $11m raise via his Thorney Investment Group into an ecommerce startup. (StartupDaily)

Others:

E&P Financial brings on Credit Suisse head of ECM Hamish Whitehead. (AFR)
Cettire has recorded its first-ever statutory net profit after tax as an ASX-listed company. (AFR)
Daniel Petre was appointed to the $15bn National Reconstruction Fund board. (StartupDaily)

SPONSOR LETTER OF INTENT

Reach execs and business leaders from every top Aussie corporate, law firm, investment bank, big 4, VC and PE firm with Letter of Intent.