First Republic shares were briefly halted this morning amid the news JPMorgan won the bid to acquire the bank and most of its assets in a government-led intervention. This development came after a weekend of negotiations.
JPMorgan will make a payment of US$10.6 billion to the US Federal Deposit Insurance Corp. First Republic bank is said to be the second-largest US bank in history to fail.
Meta Platforms is reportedly looking to raise US$8.5 billion (NZ$13.8b) in its second bond offering. The longest 40-year security in part of the five part bond issue could yield 215 basis points over treasuries. Meta last week beat expectations for first-quarter profit and revenue.
Global Payments was down 8.1 per cent at the time of writing following a quarterly results release. Despite revenue and earnings exceeding the market’s expectations, the announcement of a new CEO effective June 1 appears to have sent the company into the red today.
Rest of World
European, United Kingdom and Hong Kong markets were closed Monday for various holidays. Eurozone CPI is released today which has been hotly anticipated.
Commodities
Brent Oil was trading down 2.3 per cent at US$78.5 a barrel, and gold also traded lower by 0.4 per cent to US$1981.8 per ounce.
The US 10-year Treasury bond lifted 13 basis points to a yield of 3.57 per cent.
New Zealand
The NZX 50 ended the day down yesterday, moving 0.1 per cent lower following a quiet start to the week.
Vista Group International announced yesterday that Everyman Media Group, an existing customer, will transition to its cloud platform.
Everyman Media Group has 40 cinema sites with over 130 screens, and the transition is expected to be completed before the end of the year.
The agreement will see Everyman transition its circuit from Vista’s on-premise software to Vista’s platform over the course of 2023. Vista rose 1.6 per cent yesterday.
AFT Pharmaceuticals has said that the US FDA expects to respond to its Maxigesic IV registration application by 17 October 2023. AFT declined 1.2 per cent yesterday.
Air New Zealand in a press release that its alliance partner Air China will land in Auckland for the first time in three years today, providing a direct route to Beijing, while the company’s daily Auckland-Shanghai flights resume tomorrow.
The combination of the two services will deliver about 6,500 seats a week between Auckland and China. Air New Zealand traded flat yesterday.
According to figures from Stats New Zealand’s latest household living-costs price index, the cost of living for New Zealand households rose 7.7 per cent in the year to March 2023.
Two key drivers were the increase in food costs of 12 per cent, and a 38 per cent rise in mortgage interest costs. This movement is higher than the Consumer Price Index inflation figure for March of 6.7 per cent.
Australia
The ASX 200 started the week in the green, trading 0.4 per cent higher at close yesterday.
Ahead of the Reserve Bank of Australia’s interest rate decision at 2.30pm AEDT today, the financial sector ended the day among the best performers with gains across major banks. National Australia Bank gained 1.2 per cent, Commonwealth Bank rose 1.1 per cent, ANZ lifted 0.7 per cent, and Westpac was up 0.4 percent.
Oil and Gas company Santos announced that Papua New Guinean national oil company, Kumul Petroleum Holdings Limited, has extended its offer to acquire a 5.0 per cent interest in the PNG LNG project.
The extension is now until 31 August 2023, previously outlined as 30 April 2023, and estimated at an asset value of US$1.4 billion. Santos ended the day 2.3 per cent higher.
The total income for financial technology company Sezzle Incorporated was up 25 per cent year on year to US$34.7 million (A$51.9 million). In the first quarter of 2023, the company saw a net income of US$1.7 million, compared to a US$28 million loss in the first quarter of 2022.
Coming up today
US: Institute for Supply Management (ISM) manufacturing, Job Openings and Labor Turnover Survey job openings, Construction Spending, S&P Global Manufacturing purchasing managers’ index.
Eurozone: CPI.
Australia: RBA Cash Rate Target, Woolworths Q3 Sales, Endeavour Group Q3 Sales, Sims Limited Investor Day.
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