☕️Bad Look

Good morning.

AUSTRAC has appointed an external auditor to investigate whether Airwallex is complying with its AML/CTF obligations, citing concerns over its designated business group.

While Airwallex said it welcomed the audit, it’s yet another bout of bad news for the company that has been hurtling toward an IPO in the coming couple of years.

In December, Airwallex fended off accusations that it was effectively operating a "Chinese backdoor into sensitive American data" — allegations co-founder Jack Zhang has strongly denied — raising historic concerns over the company's internal data controls.

Earlier this week reports circled that the startup was offering to pay influencers to praise Zhang’s “thought leadership” as the company scrambles to rid the internet of negative media coverage.

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Market movers

Shares in oil and gas giant Santos jumped Thursday after it began loading the first cargo from its Barossa LNG project, easing investor concerns over commissioning risks. The update helped offset softer 2026 production guidance, with analysts at Citi saying the milestone de-risks Santos’ growth portfolio and supports its balance sheet despite higher capital expenditure.

The quick sync

• Surprise jobs growth has economists bracing for a possible February RBA hike. (Capital Brief)

• Ex-eSafety chief warns Meta could face criminal liability over Facebook bank account trade. (Capital Brief)

• A second Nationals exit in nine months has pushed the Coalition into its most serious internal crisis in decades. (Capital Brief)

• DroneShield’s 150% rebound sets up a high-stakes push for major defence deals in 2026 despite past investor fallout. (Capital Brief)

• Littleproud’s attack on Ley exposes Coalition split, raising risks for both leaders. (Capital Brief)

Trading floor

M&A

• HESTA buys stake in Grow after APRA steps in following platform switch. (AFR)

• Auriga minority investors are preparing to sell a stake as Queensland helicopter business tops $30m earnings. (AFR)

• Tahmoor coal mine hits the market as Gupta’s LPMA seeks sale after administration. (AFR)

• Paramount extends tender offer for Warner Bros shares. (Bloomberg)

Capital Markets

• Generation Development Group posts strong FUM growth across Evidentia and Generation Life. (Capital Brief)

• Fortescue shares slide on cost pressures and Iron Bridge shipment miss. (Capital Brief)

• Insignia Financial FUMA rises slightly despite $73m net outflows. (Capital Brief)

• LinQ Minerals taps investors for drilling funds following a 220% share price rise. (AFR)

• Netwealth FUA climbs to $125.6b on strong December-quarter inflows. (Capital Brief)

• South32 holds guidance as first-half alumina output rises 3%. (Capital Brief)

• Northern Star shares drop 8% as investors question recent downgrades; MD says market is fixated on minor issues. (AFR)

• Santos lifts December-quarter production by 5%. (Capital Brief)

• Dateline Resources taps investors for California exploration after 12,000% share surge. (AFR)

• Pantoro shares drop after FY26 production forecast cut. (Capital Brief)

• Social media ads for GLP-1 weight-loss drugs spike in Australia, raising concerns over regulatory loopholes. (AFR)

• NAB leads bank rally after Macquarie upgrades sector outlook. (Capital Brief)

• DroneShield rallies as Bell Potter lifts price target. (Capital Brief)

• AI launch rattles software giants: Atlassian shares fall 16% on Anthropic Cowork disruption fears. (AFR)

• Surprise December jobs data pushes banks to expect February RBA rate hike. (Capital Brief)

• ANZ backs “no net job losses” pledge after Suncorp layoffs. (Capital Brief)

• Qantas hikes points needed for Emirates flights, up to 32% for premium economy and 20% for first-class. (AFR)

• Seek reported a 1.2% drop in job ads in December and a 3.5% fall year-on-year, but advertised salaries inched up. (Capital Brief)

• ReFresh secures $1.3m to support organisations with new psychosocial safety rules. (Capital Brief)

• Cato & Clive closes after eight years as partner Clive Mathieson takes a new role. (AFR)

• Airwallex welcomes AUSTRAC audit, confident in AML/CTF compliance, as regulator probes oversight gaps. (Capital Brief)

• DroneShield surges 150% after CEO and board selldown sparked investor backlash. (Capital Brief)

• Optus to bring all 240 stores in-house, citing accountability and potential sale benefits. (Capital Brief)

• US Q3 GDP revised up to 4.4%, led by exports and consumer spending. (Capital Brief)

• Trump sues JPMorgan and CEO Jamie Dimon for $5b, alleging political debanking and unfair treatment of him and his businesses. (Capital Brief)

• Ex-eSafety chief warns Meta could face criminal charges over Facebook groups trading Australian bank accounts. (Capital Brief)

• Bank of America, Citigroup weigh new credit cards with 10% rate. (Bloomberg)

• Bessent urged by Warren to probe ‘opaque’ data centre financings. (Bloomberg)

• Tesla to sell Optimus robots to public next year, Musk says. (Bloomberg)

• Alibaba is said to plan IPO for ai chipmaking unit T-Head. (Bloomberg)

• Mammoth said to weigh IPO as soon as second half of this year. (Bloomberg)

• Elon Musk’s SpaceX lines up banks to lead mega-IPO. (Bloomberg)

• Jared Kushner sets out USD30b vision for ‘New Gaza’. (FT)

• Trump threatens ‘big retaliation’ if Europe dumps us assets. (Bloomberg)

• Musk expects Europe, China to approve Tesla's FSD system next month. (Reuters)

• Blackrock’s Larry Fink not worried about a bubble forming in AI. (Bloomberg)

• OpenAI’s Altman meets Mideast investors for USD50b round. (Bloomberg)

VC 

• Digital learning start-up Nexefy raises $5m to grow AI training platform for corporate clients. (AFR)

• Orlando Bravo sees VC firms ‘piling into any AI story they can’. (Bloomberg)

• Andreessen-backed Inferact raises USD150m in seed round. (Bloomberg)

• LiveKit, seller of voice tools to OpenAI, raises USD100m. (Bloomberg)

People moves

• Allens loses ECM partner Bryn Hardcastle to Clayton Utz, hires replacement from HSFK. (AFR)

• Ex-EY partner Cameron Bird slams firm as “autocratic” and self-interested, departing after 10 years amid culture concerns. (The Australian)

• ANZ integration cuts 66 Suncorp Bank jobs, mostly in Brisbane, despite previous no-net-loss promises. (The Australian)

• Apple expands hardware chief’s role in latest sign of CEO candidacy. (Bloomberg)

The watercooler