☕ AI anxiety

Australia’s corporate regulator has told traders, hedge funds and banks it is worried about the risks generative AI poses to market integrity.

June 20, 2023

Good morning. Australia’s corporate regulator has told traders, hedge funds and banks it’s worried about the risks generative AI poses to market integrity.

Meanwhile, investors in the US are questioning whether the unfolding AI-powered rally in tech stocks can sustain itself.

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Shares of PointsBet rocketed by nearly 22% on their first day of trading since the company found itself at the centre of an unexpected bidding war.

The ASX listed wagering outfit agreed back in May to sell its US operations to Florida-based Fanatics for $US150m. Then on Friday, Nasdaq-listed DraftKings entered the fray with an unsolicited $195m bid of its own. Fun.

PointsBet had previously been in talks to sell its Australian assets to News Corp-backed operator Betr but that deal fell apart in April.

THE QUICK SYNC

  • ASIC has warned traders, banks and hedge funds against using generative AI technology without appropriate controls. (The Australian | AFR)

  • AI vs the Fed: Investors can’t decide whether this AI fuelled tech rally is for real or not. (WSJ)

  • Embattled accounting firm PWC has been caught up in a Russian cyber-attack. (SMH)

  • Warren Buffet has doubled down on Japan, lifting his stakes in five businesses in the country. (CNBC)

  • Goldman Sachs analysts cut their forecasts for Chinese economic growth, citing concerns over its property market. (Reuters)

  • Mining billionaire Andrew Forrest unveiled plans to transform the Formula 1 designer he recently acquired into a global battery player. (AFR)

TRADING FLOOR

M&A:

  • ARN Media was looking to acquire a 14.8% stake in listed rival Southern Cross Media Group. (AFR | AFR | The Australian)

  • I Squared Capital was chosen as the preferred bidder for Repurpose It with a bid of about $250m. (AFR)

  • CLP Holdings is looking for “a long-term committed partner" for EnergyAustralia. (AFR)

  • PointsBet gave DraftKings nine days to formalise the $283m bid it made on Friday. (AFR)

  • Sydney’s Flinders Hotel in Darlinghurst, a property to be worth approximately $7m, is up for sale. (SMH)

  • Westpac attracts $3.6bn from bond investors. (The Australian)

  • EFG International is eyeing local acquisition opportunities. (The Australian)

  • Fortescue Metals has been invited back into the race for stake in Alinta Energy’s assets. (The Australian)

Capital Markets:

  • Nido is believed to be primed for an IPO book build as early as July. (AFR)

  • Toys ‘R’ Us launched an $8m capital raising in hopes of generating cash for new growth plans. (SMH)

VC:

  • Frntlne, an education technology company, closed a $4.6m seed funding round led by RealVC. (AFR)

  • WeVolt, an EV charging startup, has just closed $2m in pre-seed funding. (SmartCompany)

Others:

  • Neil Pathak jumps from Gilbert + Tobin to be Ashurst’s new head of M&A in Australia. (AFR)

  • Skip Lipman arrives at Taylor Collison to represent director and shareholder, Scott Dolling. (AFR)

  • Entain and BlueBet were issued show-cause notices after alleged breaches of anti-harm tagline rules. (SMH)

THE WATERCOOLER