☕ US inflation

Good morning. The latest US inflation numbers came out overnight and were below expectations (that's good!). Year-over-year inflation was 4.9% — slightly less than the 5% expected by the market.

Good morning. The latest US inflation numbers came out overnight and were below expectations (that's good!). Year-over-year inflation was 4.9% — slightly less than the 5% expected by the market.

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MARKET MOVERS

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

Market news: Around this time last year, Appen momentarily (for about 8hrs to be exact) had a $9.50/sh bid on the table. Now the company is trading near all-time lows after a trading update showed revenue was off 21% so far this year.

 Appen uses a massive human workforce to provide data collection and annotation services — but that is quickly being replaced by smarter technology.

The company reckons it'll be able to shift its services to support Generative AI companies. But the market clearly has its doubts. 

THE QUICK SYNC

  • US inflation rate eases to 4.9% in April, less than expectations. (CNBC)

  • Two more PwC leaders step down amid tax leaks scandal. (AFR)

  • How Bain Capital bought Virgin Australia for free. (Australian)

  • Lachlan Murdoch explains $1.2b settlement, says Fox News won’t change ‘successful strategy’. (SMH)

  • These maps show how far China’s freight railways are stretching across Asia. (CNBC)

  • Donald Trump ordered to pay writer $5mn in sexual abuse lawsuit. (FT)

TRADING FLOOR

 M&A:

  • Allkem, the lithium producer, has struck a $US10bn ($15bn) merger agreement with NYSE-listed Livent Corp. (AFR | The Australian)

  • An investor pamphlet has lifted the lid on 7-Eleven’s surging profits as the chain is put up for sale. (The Australian)

  • Herbert Smith Freehills expect private equity will start buying venture capital-backed tech businesses. (AFR)

  • InvoCare explains why it rejected TPG Capital’s $1.8bn buyout offer. (The Australian)

  • Minerva is pointed as the most likely buyer of Teys and Cargill Australian abattoir business. (The Australian)

 Capital Markets:

  • Virgin Australia's IPO is advancing as the company returns of $730m of capital (mostly to Bain). (SMH | AFR)

  • UBS put together a pathfinder prospectus for Redox. (AFR)

    • Redox is expected to make a call on Friday as to whether to proceed with its IPO plans. (The Australian)

  • Direct Couriers Group is exploring a refinancing with incumbent lender CBA while its sales process drags on. (AFR)

  • Nasdaq-listed Light & Wonder will begin trading on the ASX by May end as a dual-listed entity. (AFR)

VC:

  • None

Others:

  • Morgan Stanley Wealth Management’s co-head Matthew Nicholls has left the firm. (AFR)

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THE WATERCOOLER

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