☕️ Inflation fight

The Fed’s annual get-together at Jackson Hole took place over the weekend.

August 28, 2023

Good morning.

The Fed’s annual get-together of central bankers at a ski resort in the former wild west outpost of Wyoming took place over the weekend. Fed chair Jerome Powell used his speech to signal that rates in the world’s largest economy might not be high enough yet - and that the fight against inflation is not over. That’s despite recent signs that consumer prices are stabilising, but also amid signs growth in the US is picking up. It’s a finely balanced situation, but if you are hoping for lower rates in the US, don’t hold your breath.

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MARKET MOVERS

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

Market News: Wesfarmers, the last of the ASX conglomerates, had a swell day after it reported a result that ticked all the boxes. The sprawling company behind a host of well known retail brands like Bunnings, Kmart and Officeworks - and a host of less known chemicals, energy and fertiliser assets - reported a better than expected $2.47 billion profit. The outlook for its retail businesses was a bit meh in a tough economy, but the company said it expects to generate the first earnings from its lithium mines in the second half of the financial year.

THE QUICK SYNC

  • China cut taxes on stock trading to boost investor confidence (Bloomberg)

  • US supply chains are being threatened by China’s dominance in rare earths (CNBC)

  • Former US president Donald Trump has returned to the site formerly known as Twitter and now known as X (Reuters)

  • How Elon Musk’s Tesla price war is disrupting Australia’s used EV market (Capital Brief)

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TRADING FLOOR

M&A:

  • ANZ appeals rejected $4.9b Suncorp deal (Capital Brief)

    • ANZ anticipates finalising its $4.9bn Suncorp banking arm acquisition by mid-next year. (AFR)

  • Orora readies $1B-plus fundraising to acquire offshore glass business. (AFR)

  • Ex-Domain CEO Antony Catalano and Melbourne billionaire Alex Waislitz work discreetly on raising their View.com.au stake. (AFR)

  • Jorg G Bucherer is selling Bucherer AG to Rolex. (AFR)

  • FleetPartners is regaining interest after SG Fleet and McMillan Shakespeare delivered impressive 2023 results last week. (The Australian)

  • Affinity Equity Partners, BGH Capital, and Carlyle are reportedly discussing a potential acquisition of Australia's Journey Beyond. (The Australian)

  • The receivers of Halo Food Co are intensifying the sale process for the struggling health and sports nutrition products business. (The Australian)

Capital Markets:

  • None

VC:

  • Medigrowth, a Victorian medical cannabis biotech, has secured nearly $3.45m from over 2000 investors in its six-year history. (StartupDaily)

  • Sans Drinks is set for a revival as online retailer Just Wines acquires the business from its administrators. (StartupDaily)

Others:

  • Optus' CEO still wants to cut a network sharing deal with TPG (Capital Brief)

  • National Australia Bank plans to issue redundancies to approximately 10% of its 600-strong markets division workforce. (AFR)

  • Credit Suisse’s Hamish Kelly is headed to CBA. (The Australian)

  • Why biodiversity is the next investment frontier (Capital Brief)

THE WATERCOOLER