Summary: Global stocks fell 2-to-4% overnight on fears the US Federal Reserve is about to pull the rug of easy money out from under investors and signs Russia is about to invade Ukraine.
Market mayhem US stocks were down as much as 4% this morning on dual fears the Fed will hike interest rates four or more times this year and that Russia is about to invade Ukraine. German stocks fell 4% and Russian stocks fell 8%. The S&P 500 was down 3.8% at 6.30 am NZT, which extended its fall this year into official ‘correction’ territory of being down more than 10%. It bounced somewhat to be down 1.8% at 8.30 am NZT. (CNBC)
In bits Bitcoin fell 4% to under US$33,000 and Ethereum fell 7% to US$2,339, wiping US$130b off crypto valuations in a day and extending their falls to more than 50% from their peaks. Given values are partially a bet on the ultimate devaluation of the US dollar due to continued money printing, the imminent end of money printing has hit them hard. (CNBC)
‘Get out now’ US, UK and Australian diplomats evacuated their families from embassies in Ukraine overnight and Nato sent fresh troops and ships to reinforce positions in Eastern Europe as fears grow of an imminent Russian invasion of Ukraine. (Reuters)
‘Get over there now’ US President Joe Biden is hardening his resolve to push back at Russia by looking at sending more ships and troops to Europe to reinforce Nato. (NY Times)
Fulton Hogan deal The AFR’s StreetTalk column reports this morning Fulton Hogan is about to buy half of New South Wales-based roading contractor Stabilised Pavements of Australia (SPA) for an unspecified sum. SPA has 200 workers.
Cancer sale The Australian-$$$’s Bridget Carter reports this morning British private equity investor Intermediate Capital Group has agreed to buy New Zealand’s largest private oncology clinic group, Canopy Cancer Care, from Waterman Private Equity for over A$300m. Carter also reports the sale of Tamaki Healthcare to private equity bidders for NZ$400m has been put on hold because the price wasn’t high enough.
‘We won’t cope’ Employers are calling for shorter self-isolation periods for close contacts to avoid Australian-style supply chain carnage in an omicron surge (Newshub, RNZ). Lab workers also doubt they’d be able to handle the 62,000/day PCR test capacity for more than a few days and see real capacity at half that level (Stuff).
Fresh on BusinessDesk this morning
Cameron Bagrie returns with his weekly column to talk about how boomers want to spend their newly created wealth, rather than save it.
Brent Melville reports searches for property online exploded 30.5% last year.
Brent Melville also reports Oyster Capital’s Waihoehoe Precinct development at Drury East has been referred for fast-track consent.