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Market Summary

London, Monday, 24 October 2022



Summary


Boris Johnson withdrew from the UK PM contest, retail investors will be down significantly in 2022, China's Xi Jinping will serve a second term, Japan will purchase $30 billion more yen, Goldman will focus more on wealth management, and Facebook threatened to censor news material in Canada.



News in Headlines

  • Boris Johnson drops out of UK Prime Minister race (NYT)

  • US budget deficit was cut in half in its biggest drop ever in FY 2022 (CNBC)

  • Retail investor portfolios are down 44% YTD (FT)

  • Xi Jinping will serve a third term as China's leader (WSJ)

  • Nasdaq halted IPOs of small Chinese firms as it probes stock rallies (RT)

  • US firms are seeing a mass CFO exodus amid economic uncertainty (WSJ)

  • Japan spent $30B to buy yen for second time in a month after yen hit a 32-year low against the dollar (FT)

  • South Korea will expand its corporate bond-buying program among other liquidity measures amid credit crunch (RT)

  • Saudi Arabia launched a bid to attract $10B in supply chain investment (RT)

  • UK's financial regulator is inquiring with PE firms over knock-on effects of market turmoil (FT)

  • Goldman Sachs will double down on wealth management after ditching retail banking plans (FT)

  • Goldman executives clashed over consumer bank before retail retreat (FT)

  • Facebook threatened to block news content over Canada's revenue-sharing bill (RT)

  • PE firm Siris Capital will close its Bay Area office amid lack of deals (BBG)

  • Credit Suisse's Chief Compliance Officer is leaving the firm (BBG)

  • Formula One and Walt Disney extended their ESPN streaming deal until 2025 (RT)

  • Formula One will create a new all-female championship with a potential 2023 debut (CNBC)


Markets


  • Mixed corporate earnings led stocks to end Friday on a high note with all three major averages closing positive in their best week since June

  • Treasury yields fell from their highs after a report that some Fed officials are concerned about over tightening with large rate hikes

  • The pound rallied on news that Rishi Sunak may become UK PM as soon as today

  • On Thursday, the Commerce Department will release US Q3 GDP numbers, and the ECB will announce its latest monetary-policy decision

  • Bank of Canada and Bank of Japan will also announce their latest monetary policy decisions on Wednesday and Thursday respectively


Earnings

This week:

  • Today: Philips

  • Tuesday: Alphabet, Visa, Spotify, UPS

  • Wednesday: Boeing, Meta, Hilton

  • Thursday: Credit Suisse, Apple, Amazon, Shopify, McDonald's

  • Friday: ExxonMobil


Deal Flow

M&A / Investments


  • Saudi PIF-owned Agricultural and Livestock Investment Company and Brazilian meat packer Minerva acquired Australian Lamb Company for $258M (RT)

  • Shipping giant Mediterranean Shipping agreed to buy Italian international towage operator Rimorchiatori Mediterranei (BBG)

  • Shell agreed to buy a 9.375% stake in North Field South, Qatar’s latest liquified natural gas development (BBG)

  • US food giant Hormel Foods Corp. is in advanced talks to buy a minority stake in Indonesia’s top snack-food maker GarudaFood, that could be worth 'a few hundred million dollars' (BBG)

  • PE firm American Securities is considering a sale of food equipment maker CPM Holdings (BBG)

  • NBA legend Magic Johnson is pursuing ownership stake in NFL's Las Vegas Raiders, at a potential record valuation for the team (AX)

  • Financial media brand Litquidity acquired a meme account on twitter with 500k+ followers, according to sources close to the matter. Deal terms were not disclosed.


VC

  • Odyssey Interactive, an independent game development studio, raised a $19M Series A led by Makers Fund (BW)

  • Sun Metalon, a startup developing an ultra-fast metal 3D printer, raised a $5.6M pre-Series A led by Globis Capital Partners (PRN)

  • Cloud networking startup Netmaker raised $2.3M in funding led by Lytical Ventures, Uncorrelated Ventures and SaxeCap (PRN)


IPO / Direct Listings / Issuances / Block Trades


  • Indian conglomerate Reliance Industries will create Jio Financial Services, a financial services unit to feed its consumer business, and list it in India (BBG)

  • Food delivery company Instacart is putting off its IPO plans until at least next year amid turbulent market conditions (BBG)

  • Dubai is planning to sell a 10% stake in Emirates Central Cooling Systems Corp. The company is currently 70% owned by Dubai Electricity. Emirates NBD Capital and EFG Hermes are joint lead managers of the IPO (BBG)


Crypto

  • Ethereum NFT creators have earned $1.8B in royalties to date (DC)

  • Japan is losing its place as world's gaming capital because of crypto hostility (CD)


(Source: Exec Sum // Report and edit by: The Decision Maker - Finance editors)