Published at 00:57 (GMT) 28 Aug
More on Fonterra strategy news out on Wednesday; NZ Herald: Fonterra says it plans to spend about NZD1.17 billion on taking a 20% stake in China's Beingmate Baby & Child to boost its baby formula aspirations there and on a major expansion of its New Zealand processing facilities.
In a move that follows several other significant strategic investments over the last 18 months, Fonterra said it would spend about NZD615 million on taking a 20% stake in Beingmate, which has a 10 per cent share of China's infant formula market, and NZD555 million on installing new processing capacity in the Waikato and in Southland.
When asked whether Fonterra had done sufficient "due diligence" to avoid a repeat of the Sanlu experience, chief executive Theo Spierings said Fonterra was "completely" different to what it was six years ago.
On FX, ongoing focus on the huge Fonterra plans, revealed on Wednesday. Also the decision to maintain farmgate milk payout at NZD6 per Kg, despite expectation of another cut after the NZD1 per kg cut. Fonterra also expects firmer dairy prices, giving support to NZD. NZD rose to 0.8381 from 0.8330-35 on Fonterra news. Though good to watch for any M+A related sales linked to Fonterra 20% stake in Beingmate. Bids now 0.8340-50/ more at 6-month lows 0.8311.
AUD/NZD back up at 1.1150-52, with AUD steady at 0.9334-37, ahead of Aust Q2 Capex data for Q2 at 0130GMT. For any fall, AUD/NZD offers at 1.1180-00, bids at 1.1120-30/1.1100. WL
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.