☕️ Mixed messages

There's plenty to digest from China this week.

August 29, 2023

Good morning.

A lot of economic rumbling is coming from China right now and as earnings kick off there this week we might actually hear what it all means.

Evergrande shares slumped 87% yesterday and analysts expect other big names the property, industrial and financial sectors to send the clearest signal yet that there’s more turbulence ahead. At times like these, it’s good to indulge in some contrarian commentary that suggests markets aren’t signalling the doom and gloom you might think. Food for thought.

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MARKET MOVERS

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

Market News: Fortescue has had a people problem for a while now but it’s starting to get ridiculous.

Minutes before releasing results on Monday, FMG announced CEO Fiona Hick was leaving after less than six months in the top job. She’s the latest in a long string of high-profile departures that are becoming hard to ignore.

The iron miner also cut its final dividend to $1 as cost blowouts and delays on its Iron Bridge project dragged its full year profit lower.

THE QUICK SYNC

  • OpenAI has launched its business version of ChatGPT (CNBC)

  • In its latest retreat from the consumer market, Goldman Sachs is selling a financial advice unit. (Financial Times)

  • Google will begin selling environmental map data to companies like Tesla and Zillow. (CNBC)

  • PwC has been entering into strange “joint engagement relationships” with startups. (Capital Brief)

  • Trump will face court on subversion charges March 2024, right in the midst of the Republican primaries. (The Guardian)

  • Apple is looking to kickstart iPad sales with its first major update in five years (Bloomberg)

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TRADING FLOOR

M&A:

  • Bundaberg Sugar owners have hired two banks to search for potential buyers, possibly leading to a significant deal this year. (AFR)

  • Orora is seeking to acquire high-end glass bottle manufacturer Saverglass. (AFR)

    • The Carlyle Group is understood to be working with Rothschild & Co on a sale of Saverglass. (The Australian)

  • Suncorp’s technology and operations chief says he is hopeful the ACCC’s rejection of ANZ’s acquisition of its banking division could be reversed. (AFR)

  • Sprout Organic has successfully negotiated a distribution agreement with Australian Pharmaceutical Industries (API). (BNA)

  • TerraCom is reportedly assessing its listed competitor, Bowen Coking Coal, which is valued at $256m. (The Australian)

  • Fresenius is understood to have pushed back the sale of its Australian day hospital provider Cura Group. (The Australian)

Capital Markets:

  • Inside Out enlists E&P Corporate Advisory to secure a growth capital partner to fuel its expansion into fresh ventures. (AFR)

  • Black Cat Syndicate is seeking $7m from investors through a share placement to finance additional exploration at its Paulsens project in the Pilbara region. (AFR)

  • Chorus has enlisted ANZ, Citi, and Westpac to generate interest for a potential seven-year medium-term note. (AFR)

  • Matsa Resources sought a $1.5m equity injection from investors to support its exploration projects. (AFR)

  • Team Global Express has appointed UBS in a broad-ranging advisory role. (AFR)

  • Tribeca Investment Partners attracts a significant Asian sovereign wealth fund through a newly established fund. (AFR)

VC:

  • None

Others:

  • Maggie Beer Holdings (MBH) is striving to persuade Australians that its higher-priced products are justified, even in the face of a challenging economic outlook. (SMH)

  • Close the Loop’s circular economy business approach has led to a remarkable 70% increase in earnings, reaching $24.3m for FY23. (BNA)

  • NEXTDC is capitalizing on the growing demand for AI and cloud services, resulting in an upsurge in underlying profit for FY23. (BNA)

  • Helloworld Travel has reported a substantial resurgence in underlying profit for FY23, fueled by a more than doubling of travel volumes. (BNA)

  • Bardee is currently under investigation for failing to provide former employees with their owed entitlements. (AFR)

  • Citi banker Jon Gidney has retired from investment banking after almost 30 years in the industry. (The Australian)

THE WATERCOOLER