☕ US inflation

Good morning. Old mate J Powell is probably breathing a little easier today after the 10 consecutive rate hikes by him and the US Fed have finally helped slow inflation. The overnight US inflation print for May came in at 4% — well below the June 2022 peak of 9%+.

June 14, 2023

Good morning. Old mate J Powell is probably breathing a little easier today after the 10 consecutive rate hikes by him and the US Fed have finally helped slow inflation.

The overnight US inflation print for May came in at 4% — well below the June 2022 peak of 9%+.

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MARKET MOVERS

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

Market News: Domino’s announced it’s closing about 2% of its stores — including a complete withdrawal from the Danish market — to help deliver about $25-30m in EBIT improvements for FY24.

The company trading update flagged a tough trading period, with the CEO warning it’ll probably miss the FY23 NPAT consensus of $144m.

THE QUICK SYNC

  • US inflation rose at a 4% annual rate in May, the lowest in 2 years. (CNBC)

  • Leaked documents reveal David Jones’ sales plummet as shoppers retreat. (Australian)

  • JPMorgan feels heat over Epstein emails amid $430m deal. (SMH)

  • Famed hedge fund manager ousted in wake of sexual misconduct allegations. (SMH)

  • Saudi Arabia spends billions to dominate global games industry. (FT)

  • UK short-term borrowing costs shoot past 'mini-budget' crisis levels on strong labor data. (CNBC)

TRADING FLOOR

M&A:

  • Tesserent is set to sell itself to French defence giant Thales for $176m. (AFR | BNA | SMH)

  • Alinta is seeking an equity and co-development partner for its 1000MW Victorian offshore wind project, Spinifex. (AFR)

  • Sandfire Resources has become the latest prospective buyer for Botswana's Khoemacau Copper Mining. (AFR)

  • Glencore offered to acquire Teck Resources' coal division instead of a full takeover offer. (AFR)

  • Recharge Industries has quickly changed course from its original intention to build a gigafactory in Geelong. (AFR)

  • Humanforce has announced plans for more acquisitions and global expansion. (AFR)

  • Armaguard and Prosegur merger has been cleared by ACCC. (AFR)

  • Intelligent Monitoring Group will more than 3x in size through the acquisition of ADT Security in Australia and New Zealand. (AFR)

  • Wesfarmers has agreed to purchase InstantScripts in a $135 million deal. (BNA)

  • CEO of Domino's claims that closing failing locations and eliminating delivery fees will help the pizza giant get back on track. (SMH)

  • Bain Capital is doing exclusive due diligence on Estia Health and is faced with some significant challenges. (The Australian)

  • Pacific Equity Partners bid just over $700m to acquire the Hoyts. (The Australian)

  • Kalium Lakes has had investment banks pitching for a defence advisory position. (AFR)

  • Endeavour Group has Citi and Luminis Partners in its roster of advisers. (AFR)

Capital Markets:

  • Macquarie Technology Group and Challenger Gold are in the market to raise $130m and $10m, respectively. (AFR)

  • Resimax Property Group has secretly completed a $350m refinancing of its Eynesbury development west of Melbourne. (AFR)

  • Education Centre group strives to pass the IPO test. (The Australian)

VC:

  • Rezdy, a tour booking software startup, exits to private equity for A$120m. (AFR)

  • Australia's largest VC funds are looking to extend the deadline for paying investors on their initial funds due to depressed valuations. (AFR)

Others:

  • Jarden has recently been searching for a top resources investment banker headquartered in Perth. (The Australian)

THE WATERCOOLER