☕️ Arms race

The robots are ready to see you now.

August 30, 2023

Good morning.

Artificial intelligence has been all the rage this earnings season as companies talk up its potential impact on their businesses – even if its often hot air.

Now OpenAI has something for them, releasing an enterprise version of ChatGPT to further monetise it and cover the considerable running costs.

Offering encrypted queries and faster responses, the product is expected to push major investor Microsoft even further ahead in the AI arms race.

At the same time, Google is rushing to sign up its own business customers at US$30 a pop.

LOI Subscriber #TBD

MARKET MOVERS

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

Market News: Mineral Resources is in direct discussions with automakers as it looks to make big moves in lithium.

It’s early days but the Aussie miner says it has a number of credible names that want to buy directly from it, potentially subsidising processing outside of China.

While company profits fell, lithium earnings hit a new record as the company doubles down on the market.

THE QUICK SYNC

  • The Biden administration has named the first 10 drugs it will target with price controls, affecting Pfizer, J&J and Merck and others. (WSJ)

  • US regulators will force smaller regional banks to issue more debt to protect against potential losses (CNBC)

  • US job vacancies shrank for the third consecutive month, falling below 9 million for the first time since 2021. (CNN)

  • A court ruling has opened the door for spot Bitcoin ETFs to trade in the US (CNBC)

  • 3M has agreed to a US$6 billion settlement to resolve a claim its earplugs didn’t prevent hearing loss. (Financial Times)

TOGETHER WITH SWYSH

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To make selection easy for you, we've picked out a few top stars for Father's Day:

TRADING FLOOR

M&A:

  • Andrew Hansen, the managing director and heir of Hansen Technologies, was actively seeking to sell a portion of the company, aiming to raise $37.8m. (AFR)

  • Zenith Energy has secured a $320m debt agreement from a combination of both current and new lenders. (AFR)

  • Goldman Sachs Group struck a deal to sell an investment-advisory business targeting the mass-affluent market to Creative Planning LLC. (AFR)

  • Invictus Developments is targeting a portfolio of hotels worth $500m with its recent acquisition in Sydney. (SMH)

  • The possibility of Qube acquiring Brookfield's share in Patrick Terminals is becoming less likely due to the high valuation, as analysts suggest. (The Australian)

  •  Qatar Airways is speculated to have been holding talks about acquiring a stake in Virgin Australia. (The Australian)

  • Speculation is mounting that IFM is likely to emerge as the buyer of Igneo’s stake in Brisbane Airport. (The Australian)

  •  Coronado Global Resources is said to have been in bilateral talks with South32 about an acquisition of its $1bn-odd Illawarra Metallurgical Coal operations. (The Australian)

Capital Markets:

  • Next Science started a $28.9m fundraising on Tuesday, divided into five parts. (AFR)

  • Chariot Corp has initiated its planned IPO, arranging meetings with fund managers and securing $15.5m in new equity from investors. (AFR)

  • Australian Pacific Coal was actively seeking investor interest on Tuesday for a $12m equity raise, aimed at funding the reactivation of its Dartbrook mine in Hunter Valley. (AFR)

  • Northern Minerals and Ardea Resources concluded the series of additional fundraising activities on the ASX. (AFR)

VC:

  • Dell for Startups empowers Australian startups through its new program, offering them a significant boost. (StartupDaily)

  • Despite facing staffing challenges, the agricultural technology startup Bardee continues to supply Bunnings. (SmartCompany)

Others:

  • The Star reported a $2.4bn loss due to expensive legal expenses and casino-related impairments. (BNA)

  • The former head of Bulla will take over as the CEO of Bubs, charting a new direction for the company. (BNA)

  • Shine Justice reported an 89% decrease in net profit to $3.31m. (BNA)

  • BlueScope Steel has been fined $57.5m for its attempt to manipulate prices for flat steel products supplied within Australia. (BNA)

  • ANZ head expressed concerns about the government's interference in stopping Qatar Airways flights to ensure the profitability of the national carrier Qantas. (AFR)

THE WATERCOOLER