☕ Inflation twist

Good morning.

England lost the first Test in the Ashes, and the UK is also losing the global inflation battle. UK annual CPI printed at 8.7% overnight, higher than economists expected (consensus was 8.4%).

The stubbornly figure is at odds with subsiding inflation in both the US and Australia and could force the BoE to hike interest rates later tonight.

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MARKET MOVERS

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

Market News: Flight Centre shares were whacked yesterday after the company merely reaffirmed its guidance at its annual investor day.

That would normally be a good thing in a faltering economy, but the stock has run pretty hard this year and the market was expecting more given other travel exposed companies are doing so well - e.g. Qantas which recently forecast a record full-year profit, and Virgin, which is also back in the black ahead of a run at the ASX boards.

But maybe the travel boom on the ASX starting to fade? REX shares also tumbled yesterday after it downgraded its earnings guidance and said it expects to report another loss.

THE QUICK SYNC

• UK inflation shocker: Higher than expected CPI may force the BoE to raise interest rates. (BBC)

• A bipartisan Senate committee has lashed PWC, accusing the firm of deliberately covering up its tax leaks scandal. (AFR | The Australian | SMH)

• US regulators are suing Amazon for allegedly tricking users into subscribing to Prime. (SMH)

• Regional Express Holdings expects to lose $35m this financial year because of disruptions to its network. (BNA | SMH)

• TPG Telecom’s regional network sharing deal with Telstra has been blocked, once and for all, by regulators. (SMH | Guardian)

• The CBA cut loan buffers for some borrowers. (Reuters)

• Dexus cut the value of its property portfolio by $1bn. (The Australian)

TRADING FLOOR

M&A:

• Silver Lake has launched an auction for Ticketek owner, TEG. (AFR)

  • Kohlberg Kravis Roberts could be entering the race to buy TEG Group. (The Australian)

• Equity Trustees is reportedly looking to offload its UK corporate and trustee services business. (AFR)

• Mike Cannon-Brookes sold a portion of his stake in AGL Energy to free up funds for more "exciting" projects in sustainable energy. (AFR | SMH)

• Harvest Lane Asset Management has gone hostile in its tilt at ASX-listed Morphic Ethical Equities. (AFR)

• De Grey Mining has struck a deal to acquire 50% of Novo Resources’ Becher gold project. (AFR)

• Westpac has abandoned a sale process for its investment platforms BT Panorama and Asgard (AFR)

• Ernest Hillier’s Melbourne manufacturing site stood down and operations paused as administrators urgently seek a buyer. (SMH)

• Suncorp and AMA Group's contract negotiations are expected to heat up in the upcoming weeks. (The Australian)

• Hobson Wealth Partners is understood to have been approaching Australian firms to test their interest in an acquisition. (The Australian)

Capital Markets:

• Lithium Energy was pitching a $6m raising to small-cap investors. (AFR)

VC:

• None

Others:

• Robbie Vanderzeil is set to leave Jarden, which he co-founded. (AFR | The Australian )

• Guzman y Gomez’s CFO Rebecca Lowde has departed the Mexican fast food chain. (AFR)

• Andrew Forrest’s Squadron Energy is confident the government’s renewable energy targets are on track, despite growing doubts. (SMH)

• Kite Magnetics has teamed up with H3 Dynamics to evaluate its technology for commercial applications. (BNA)

• Universal Studios has canceled Metropolis, a sci-fi series set to be filmed in Victoria, because of rising costs and the writers' strike in the United States. (BNA)

• Elon Musk says Tesla may make a “significant” investment in India after meeting with PM Modi (Bloomberg)

THE WATERCOOLER