☕️ Peso pain

Spare a thought for anyone borrowing money in Argentina.

Good morning.

We complain about interest rates a lot in Australia, but spare a thought for anyone borrowing money in Argentina. Its central bank hiked interest rates by 21 percentage points (that’s percentage points, not basis points) to 118% overnight, and devalued the peso against the US dollar. The move aims to soothe markets before another bout of turmoil threatens to erupt in the notoriously unstable South American economy.

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MARKET MOVERS

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

Market News: Lendlease is being hurt by the slowdown in the US commercial property market. The property developer’s annual results yesterday underwhelmed the market and may give the activist investors circling the business more ammunition in their campaigns against the company.

LendLease also said it was suspending one of its biggest projects, a $1 billion office and residential development in San Francisco, as it seeks funding partners or anchor tenants. It might have a tough time finding that given the challenges commercial property is facing in the US, and in particular in San Francisco. Occupancy rates are down across the country as workers resist the return to the office.

THE QUICK SYNC

Argentina’s central bank devalued the peso by 18% and jacked up interest rates by 21% to 118% after a populist candidate won a primary election. (CNBC)
European private equity giant CVC has revived plans for a multi-billion dollar public listing in Amsterdam by the end of the year. (Financial Times)
Australia could impose “green tarriffs” on imports of steel and cement from India and China. (AFR)
American companies such as Netflix are paying up to US$900,000 a year for AI specialists, amid a recruiting frenzy over top talent. (WSJ)

TRADING FLOOR

M&A:

Yancoal remains the favourite to win control of two of BHP’s Queensland coal mines. (The Australian)
Clara has reportedly been running due diligence on Sutherlands. (AFR)
HMC Capital has moved on from Ingenia after not being able to amass enough shares to hold a meaningful stake. (The Australian)
The Riverside Company hires Lazard to sell Energy Exemplar. (AFR)
Sportsbet is close to negotiating an exclusive deal to run Western Australia’s TAB. (The Australian)
QMS denies Quadrant is looking to cash in as the sector goes from strength to strength. (SMH)
PAG Asia is in the process of locking in funding for its purchase of Australian Venue Co from KKR. (The Australian)
Strike Energy and Talon Energy are set to ink a deal to merge the companies and project interests. (AFR)

Capital Markets:

Far East Gold had Canaccord Genuity and Ord Minnett fronting investors with a share placement. (AFR)
Brokers crossed a line worth 11% of Delta Lithium at a 23% premium. (AFR)

VC:

SafetyCulture, a health and safety software start-up, has raised $34m from investors at a $500m uplift from its previous valuation. (AFR)
Future Super has ruled off its series C round at a $225m valuation. (AFR)
Pendula, a customer communications start-up, has closed a $14.5m funding round led by Octopus Ventures. (AFR)

Others:

Alvarez & Marsal says the timing is “perfect” for it to bring its consulting business to Australia and compete with its larger rivals. (AFR)
Medcan Australia officially opens a $12m vertical farming facility in Brisbane’s outer south-west. (BNA)
Zena Sport has highlighted a growing awareness of the need for specialist protective gear catering to women playing contact sports. (BNA)
SkyCity Entertainment Group has factored a financial hit of more than $90m to the bottom line in the expected fallout from AUSTRAC. (BNA)

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