The Week Ahead
Key market and corporate announcements
AGM: Pro Medicus Limited
Economic: S&P Global PMIs (Aus), RBA Governor Philip Lowe speech at annual CEDA dinner (Aus), US FOMC Minutes (US)
AGMs: BlueScope Steel Limited, Brickworks Limited, Fortescue Metals Group Ltd, Liontown Resources Limited, Monadelphous Group Limited, The Star Entertainment Group Limited
Economic: National Skills Commission Skilled Job Vacancies (Aus), RBNZ interest rate decision (NZ)
AGMs: Abacus Group Holdings, Austal Limited, Hills Limited, Integrated Research Limited, Mesoblast Limited, Netwealth Group Limited, Shopping Centres Australasia Property Group, WiseTech Global
AGMs: Arena REIT, Evolution Mining Limited, Hansen Technologies Limited, Harvey Norman Holdings Limited, Karoon Energy Australia Ltd, Kogan.com Ltd, New Hope Corporation Limited, Nick Scali Limited, Qube Holdings Limited, Ramelius Resources Limited, Regis Resources Limited, Ridley Corporation Limited
Public holiday: Thanksgiving Day (US)
Economic: GDP Growth Rate Q3 (Singapore)
AGMs: Beston Global Food Company Limited, EML Payments Limited, Silver Lake Resources, Westgold Resources Limited
Graph of the Week:
The Australian Dollar has historically played the role of an economic ‘shock absorber’
The A$ has not bottomed. While the currency has already fallen around 15% against the US$ year to date, widening differentials between Australian and US interest rates are likely to remain a strong headwind for any sustained upside. In addition, a reset in expectations for a Chinese economic rebound are also likely to weigh on the commodity price outlook (iron ore prices have come back sharply) and reduce the A$ tailwind.
The Weekly Wrap
Some economic news from last week
- Australia's unemployment rate decreased to 3.4%, participation rate remained at 66.6% and employment increased to 13,623,700.
- Reuters reports that signs of weakness are emerging across the Chinese economy - exports have declined, new bank lending is down and inflation has slowed. This is despite authorities bucking the global trend so far this year by deploying monetary and fiscal easing.
- Regulators around the world opened investigations into ftx, after the crypto exchange and its sprawling network of affiliated firms filed for bankruptcy protection. Traders withdrew $6bn from the platform in just 72 hours amid claims that it had mishandled customers’ investments. ftx could owe money to as many as 1m people.
Some corporate highlights from last week
Energy & Resources
BHP has taken price out of the equation in its pursuit of OZ Minerals with a $28.25 per share best and final offer, but the target’s board stopped just short of giving the bid full throttle recommendation (18 November 2022).
Pemba Capital to take MSL Solutions, a point of sale software provider, private in $120m scheme implementation agreement. It comes a mid a wave of ASX-listed small cap software company take-privates. Others to receive bids in the past six months including Nearmap, Tyro Payments, Nitro Software, ELMO Software and ReadyTech (15 November 2022).
Macquarie and SG Hiscock-backed buy now, pay later player BizPay has gone cap in hand to investors with a recapitalisation that sources reckon is at a $3.4 million pre-money valuation, a long way from the $151 million it raised at last year (16 November 2022).
One of Australia’s biggest asset managers, IFM Investors, has teamed up with industry superannuation fund UniSuper to buy a majority stake in radiology business PRP Diagnostic for a price sources said was about $800 million (17 November 2022).
Cancer care group GenesisCare has bought a bit more time in its quest to secure a broader recapitalisation involving existing and potential new investors, as it secured a waiver on pre-payment of shareholder loans and an extension to November 2023 (16 November 2022).
Infrastructure & Construction
Restructuring firm FTI Consulting has taken control of tunnelling services business The Bothar Group, global subsurface engineering services provider, specialising in the tunnelling industry, and will quickly try to get on top of its fledgling financial situation (15 November 2022).
NSW is developing new policies for infrastructure projects to encourage companies to cut both operational and embedded carbon emissions as the state grapples with surging costs and skills shortages (18 November 2022).
Other news of interest