3 July 2023

3 July 2023

Aus Little newsflow. Malteries Soufflet has signed a deal to buy United Malt Group for $5.00 per share (currently trading at $4.40). The deal will make Malteries Soufflet the world’s largest malt producer, with a ~28% market share. Malteries Soufflet trades at ~18x fwd earnings. We think the deal is good for the French group and less good for United Malt Group shareholders – the stock has moved nada since listing at +$6.00. Better as a bolt-on deal. We don’t love the malt industry as beer has declined in consumption on a ten-year basis. Prefer being positioned in the spirits space – higher margins and more brand differentiation. Buy rated on Diageo (DGE).


US For the first half of the year the Nasdaq soared by 32% – its best performance since 1983. For any half year, first or second, the Nasdaq recorded its strongest performance since the peak of the dotcom bubble in the second half of 1999. We have our own thoughts on this – a lot of enthusiasm here in a rising-interest rate environment.


Week Ahead

Monday

US: ISM Manufacturing, Construction Spending, S&P Global Manufacturing PMI; Eurozone: HCOB Manufacturing PMI; China: Caixin PMI Manufacturing; Australia: Home Loans, CoreLogic House Prices, ANZ Job Ads, Building Approvals; NZ: CoreLogic House Prices. Building Permits.

Tuesday

Australia: RBA Cash Rate.

Wednesday

US: FOMC Meeting Minutes, Factory Orders; Eurozone: PPI, HCOB PMI Composite; China: Caixin PMI Composite; Australia: Nickel Industries EGM.

Thursday

US: ISM Services Index, ADP Employment, Trade Balance, Initial Jobless Claims, S&P Global PMI Composite, JOLTS Job Openings; Eurozone: Retail Sales; Australia: Trade Balance.

Friday US: Nonfarm Payrolls.

Do You Want Daily Market Insights?

If you’re interested in staying up-to-date with the latest news and analysis on stocks, be sure to sign up to BlackBull Research.

1 Month Free Trial

Access our expert stock market research Free of charge with no obligation

Free 1 Month Free Trial

Unlock this article & access our expert stock market research

ASX, NZX & USD Stock Buy, Hold, Sell recommendations. Model Portfolios. Daily news and more

[pmpro_checkout]