(Bloomberg) —
Hello Australia, it’s Jackie here and this is what’s happening around our region this morning:
M&A Exclusive: Dexus is nearing an agreement to acquire AMP’s Australian real estate and infrastructure arm, sources say. The property firm is in advanced talks over terms of a deal for the local operations of AMP’s Collimate Capital unit, which could be valued at about A$300 million.
Crypto Crunch: We may have to wait a little longer for crypto ETFs. Cosmos Asset Management and 21Shares both aimed to roll out funds this week, but have been hit with delays.
Supersize Me: A small but growing band of economists predicts the RBA will begin interest-rate liftoff in June with a jumbo 40-basis-point hike. Most economists expect the RBA will hold pat next week to avoid becoming embroiled in next month’s election.
Fintech Funds: Melbourne-born payments startup Airwallex is looking to raise as much as $150 million in new funds. The Tencent-backed company is in talks with prospective investors and aims to complete the fundraising within the next few months, sources say. It’s also considering an IPO as soon as 2024.
Migrant Gains: Indians were the largest overseas migrant cohort coming to Australia in the past decade, according to government data. India also supplanted China as the second-biggest diaspora living here, with the latter’s immigrant population falling to third as ties between Beijing and Canberra deteriorated.
What Happened Overnight
Stocks Fall: U.S. stocks sank to the lowest in six weeks, with tech taking a big hit following disappointing earnings from Alphabet, Texas Instruments and Microsoft. In addition, Tesla wiped roughly $126 billion off its valuation after falling 12% on concern Elon Musk may sell shares for his $44 billion Twitter takeover. And Robinhood fell over 5% in after-hours trading — having tumbled 74% since its July IPO — after announcing layoffs as its pandemic-driven “hyper growth” cooled.
Oil Weaponized: Russia will cut Poland and Bulgaria off from its gas on Wednesday, making good on a threat to countries that refuse President Vladimir Putin’s demand to pay for its fuel in rubles. The EU has rejected the move in principle but now governments across Europe need to decide whether to accept his terms or lose crucial supplies — and face the prospect of energy rationing. European gas prices surged as much as 17%.
Twitter’s Right: A U.S. securities filing shows Twitter will be required to pay a termination fee of $1 billion under certain circumstances if it ends the agreement to be acquired by Musk. The billionaire’s emphasis on promoting free speech is making him particularly popular with the American right. The biggest change expected to come from the deal is reinstating banned accounts — including, perhaps, Donald Trump’s — putting him at odds with employees, left-leaning users and advertisers, who would in general prefer more content moderation.
Mystery Disease: An outbreak of acute hepatitis in children has killed one and required liver transplants in at least 17 others across the globe, according to the World Health Organization. Most of the cases so far have been in Europe, largely in the U.K., with one probable case in Japan so far. Here’s what we know about the mysterious liver disease.
Satellite Proof: Since China’s official numbers are released only monthly — and are increasingly coming under scrutiny — satellite imagery is becoming an important real-time tool to measure the impact of China’s worst outbreak since 2020. With port and construction activity plummeting, the images suggest economic figures will likely worsen.
What to Watch
- Australia’s core inflation is expected to breach the upper end of the RBA’s 2-3% target for the first time since 2010 — which would add more pressure on the RBA to raise rates during the election campaign
- Iluka, Northern Star and Coronado are among miners issuing production reports
One More Thing…
On the Market: Billionaire Robert Toll listed his NYC penthouse for $22 million. The triplex apartment is located less than a block away from Central Park on New York’s Upper East Side, and boasts 360-degree views of the city. The real estate developer and his wife, who bought the property in 1999, have been renting it out for $50,000 a month after becoming empty nesters.
And with that, have a great day.
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