☕ IB layoffs

UBS is gearing up to wield the axe to Credit Suisse’s workforce.

June 28, 2023

Good morning.

UBS is gearing up to wield the axe to Credit Suisse’s workforce, according to reports overnight.

The investment banking industry has been bracing for significant cuts ever since the shotgun marriage between the two Swiss investment banks was announced in March.

But the scale and severity of them is still pretty chilling - with UBS reportedly aiming to cut tens of thousands of jobs between July and October this year.

—

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: Australia’s biggest KFC franchisee Collins Foods was the standout performer on the ASX yesterday after it beat market expectations for both the top and bottom line in its full-year results.

Does the market think people are going to flock to cheap fast food as the economy deteriorates? Maybe. But this is probably more a case of a result being less worse than feared (a theme in itself to keep an eye on).

Despite the beat, profits were down 12% from a year earlier and the company warned its margins are facing pressure from cost inflation across its operations.

THE QUICK SYNC

  • UBS is preparing to cut half of Credit Suisse’s 45,000 strong workforce. (Bloomberg | Insider)

  • HSBC says the US will slide into a recession later this year, with Europe to follow in 2024. (CNBC)

  • Drinks giant Diageo has ended a 15 year partnership with rapper P Diddy following a racial discrimination lawsuit. (CBS)

  • Finally, a contrarian view on the “overblown and ideological” PWC scandal. (AFR)

  • Macquarie: The Australian group with a grip on global infrastructure. (FT)

TRADING FLOOR

M&A:

  • Saba Capital, an activist NY hedge fund, has emerged as a major shareholder in Regal Partners’ listed VGI Partners Global Investments vehicle. (AFR)

  • Silver Lake, CVC Capital and Tattarang were among the private equity firms shortlisted to invest in Rugby Australia and TEG Group. (AFR)

  • Sonic Healthcare strikes a deal to buy SYNLAB Suisse for $250m. (BNA)

  • Bega Group sells its Vegemite factory to Charter Hall for $115m. (BNA | SMH | The Australian)

  • Star Entertainment Group sells the Sheraton Grand Mirage Resort Gold Coast for $192m. (BNA)

  • ANZ’s acquisition of Suncorp could be followed by leadership changes at the top of the big four bank. (The Australian)

  • Star Car Wash has mandated Grant Samuel to kick off a search for interested buyers. (AFR)

  • Brisbane Airport Corporation shareholder brings in Macquarie Capital bankers to help offload its stake. (AFR)

  • 1Komma5° is already in discussions for more acquisitions of solar battery suppliers in Australia. (AFR)

Capital Markets:

  • Western Melbourne Group is seeking investment for its $2bn sports and recreation-driven precinct. (AFR)

  • Adamantem Capital has netted more than $150m for its Environmental Opportunities Fund. (AFR)

  • Mondiale VGL’s IPO has been given backing from Australian institutional investors. (The Australian)

VC:

  • Stacked Farm, an agdat-tech startup, has raised another $40m in a funding round led by Tayside Investments Australia. (SmartCompany)

  • Baresop, a health and wellness brand, made a $360,000 investment and strategic partnership with Alita Sales. (SmartCompany)

Others:

  • Collins Foods still believes Taco Bell can succeed in the Australian market despite the brand’s results hitting the group’s full-year profits. (SMH)

  • Credit Suisse’s Larry Gandler is set to replace outgoing Shaw and Partners research analyst Danny Younis. (AFR)

  • Credit Suisse veteran James Disney is getting ready to premiere his own advisory boutique. (AFR)

  • Sidley Austin’s Robert Meyers is retiring on Friday. (AFR)

  • Waave has recruited former Qantas exec and eBay Australia chair Belinda Jonovska as COO. (StartupDaily)

THE WATERCOOLER