☕ ECB hikes rates

Good morning. Unlike the US, the ECB kept at it overnight with another 25bps rate hike to take its deposit rate to 3.5% — the highest level in more than 20yrs. The global economy has divided in two when it comes to interest rates, with most advanced economies increasing (or at best, pausing) rate hikes while countries like China are cutting rates.

June 16, 2023

Good morning. Unlike the US, the ECB kept at it overnight with another 25bps rate hike to take its deposit rate to 3.5% — the highest level in more than 20yrs.

The global economy has divided in two when it comes to interest rates, with most advanced economies increasing (or, at best, pausing) rate hikes while countries like China have been cutting rates.

—

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 was DGL’s turn to revise guidance yesterday, lowering its EBITDA guidance for FY23 from around $72m to around $65m.

The industrial group’s been running hard at the roll-up playbook — picking up around 8 acquisitions in 12 months. But like most rollups, it seems DGL hasn’t extracted the synergies it might have expected or as fast as it expected.

The company had 3x its share price after it listed last year but is now back trading below its list price.

THE QUICK SYNC

  • ECB raises rates by 25 basis points after Fed opts to pause. (CNBC)

  • RBA office renovation blows out to almost $500m. (AFR)

  • The Guardian will stop accepting gambling advertising. (SMH)

  • AI automation could take over 50% of today’s work activity by 2045 according to McKinsey. (CT)

  • Ex-Goldman VP gave drunk squash buddy insider tip, jury hears. (CNBC)

  • Donald Trump’s legal woes cast shadow over field of 2024 rivals. (SMH)

  • U.S. withdraws charges in Sam Bankman-Fried case, punts them to 2024. (CNBC)

TRADING FLOOR

M&A:

  • Lightsource BP is marching ahead with a two-part auction with non-binding indicative offers due by mid-July for the $1bn solar farm. (AFR)

  • SapuraOMV is understood to be working with JPMorgan to run its mooted selldown of New Zealand and Malaysian assets. (AFR)

  • Cerberus Capital is considering a bid for Austal. (AFR)

  • Invast Global is rebranding to 26 Degrees and ceasing to offer full-service retail brokerage services in order to concentrate on institutional clients. (AFR)

  • Bandwidth or Sinch are considered the likely buyers of the New Zealand-based messaging platform Modica. (The Australian)

  • Eagers Automotive has taken a 5.7% stake in McMillan Shakespeare. (The Australian)

  • Stanmore Coal is believed to be back in the race for BHP’s coal assets after initially failing to make the cut. (The Australian)

Capital Markets:

  • Abacus Storage King’s demerger bookbuild starts with $1.41 floor. (AFR)

  • Navigator Global Investments is expected to launch a raising and a restructuring program, including an agreement with Dyal Capital. (AFR)

VC:

  • None

Others:

  • KKR director Louis Casey will join Quadrant Private Equity as a partner. (AFR)

  • Credit Suisse Australia’s investment banking team had almost halved since the UBS takeover. (The Australian)

THE WATERCOOLER