☕️ Great expectations

But can artificial intelligence really deliver?

Good morning.

Artificial intelligence (AI) is the trend that keeps on giving – at least to Nvidia.

Investors have piled in, briefly pushing the share price to a new record. Priced in is the expectation the chipmaker will more than double quarterly revenue on the back of soaring tech demand. Evidently, much hinges on its results tonight.

“Nvidia [and the] AI story is what is driving the market right now. If Nvidia were to miss [expectations], this market would be in a world of pain,” one analyst warned.

LOI Subscriber #TBD

MARKET MOVERS

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

Market News: There’s no denying it. Inflation and rate hikes are beginning to bite as more Australians turn to shoplifting.

Yesterday Coles posted a $1 billion profit on the back of bumper sales, but its share price sunk. The culprit? Shrinking profit margins and a 20% spike in theft.

Organised crime and cost of living pressures were fingered as two major catalysts. As food inflation flirts with 6%, it’s going to get worse before it gets better.

THE QUICK SYNC

  • Investors are anxious about the Arm IPO as its prospectus reveals significant exposure to China amid global tensions (Financial Times)

  • The Bank of England is warning of rising corporate defaults (Financial Times)

  • After being knocked back by regulators, Microsoft has resubmitted a refreshed takeover bid for Activision. (CNBC)

  • Nike has notched a record nine-day losing streak, over soft demand in China and a merchandise glut. (Bloomberg)

  • The BRICs countries are moving away from the US dollar in a bid to build a multipolar international financial system. (Financial Times)

  • Memestock AMC shares sink 20% as markets brace for a stock conversion. (CNBC)

TOGETHER WITH SWYSH

Looking for an epic Father's Day gift this year? Swysh has every sporty dad covered.

Surprise your Dad this Father's Day with a personalised video message from his favourite sports star on Swysh. You'll not only make his day when he blushes, laughs or cries from the message, but you'll also help support men's health as 10% from every Swysh video leading into Father's Day is raising funds for Movember.

To make selection easy for you, we've picked out a few top stars for Father's Day:

TRADING FLOOR

M&A:

  • National Australia Bank’s latest hybrid issuance had gathered $1.45bn in bids. (AFR)

  • Avada Group is signing a deal to pick up the assets and business operations of STA Traffic Management. (AFR)

  • Yancoal Australia’s interest in BHP’s Queensland coal mines Blackwater and Daunia is cooling. (AFR)

  • Goldman Sachs is looking to sell the personal financial management business. (AFR)

  • Allkem is determined to build on its presence in Australia either through acquisitions or exploration. (AFR)

  • APA Group is acquiring Alinta Energy's Pilbara portfolio for $1.5bn. (AFR)

  • Harmac Group enters voluntary administration with Cor Cordis as administrators. (BNA)

  • Seven Group is actively pursuing acquisitions. (The Australian)

  • Taiwan’s CPC is poised to secure a stake in Dorado Project. (The Australian)

  • Zip Co is suggested to be considering exiting the US market. (The Australian)

  • Equity raising radar is scanning abundant acquisition opportunities. (The Australian)

Capital Markets:

  • Fund managers were assessing four capital raisings - Rox Resources, Pantera Minerals, Battery Age Minerals, and Ecofibre. (AFR)

  • Abu Dhabi's wealth fund invests $1.4B in Qualitas for Commercial Investments (BNA)

VC:

  • HEO Robotics, a Sydney-based startup, raised $12m in a Series A round led by Airtree Ventures. (BNA)

Others:

  • UBS’ Richard Wilks has been named head of equity capital market syndicate for Asia Pacific. (AFR)

  • Kogan executives get $31m in share options as revenue dives by $229m in FY23. (BNA)

  • Megaport founder reflects on startup journey to ASX200 and confidence in company's future. (BNA)

  • BHP’s profits decline amid inflation impact. (SMH)

THE WATERCOOLER