☕️ China Trouble

Good morning.

Turns out this week’s explosive spat between prominent US venture capitalist Keith Rabois and Airwallex CEO Jack Zhang doesn’t mark the first time the global payments fintech’s alleged China-ties have been raised.

By the time Airwallex officially moved its headquarters to Singapore in early 2023, the USD6.2 billion ($9.4 billion) Melbourne-founded unicorn had identified a serious problem: it was unable to quarantine access to existing customer data from China.

While the thorny situation, recounted to Capital Brief by three sources, was ultimately rectified and internal access permissions tightened, it contextualises questions around the quality of Airwallex’s compliance, intensity of its growth-at-all-costs culture, and the nature of its Chinese connections which spilled into full public view this week.

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Market movers

Shares in Capstone Copper jumped 8 per cent Thursday as record copper prices powered a broad rally in miners. That helped the ASX notch a third straight gain even as markets priced in rising odds of rate hikes by the RBA.

The quick sync

• A Webjet merger may be the only path forward as BGH and Helloworld remain deadlocked. (Capital Brief)

• Apple TV+ and HBO Max stand to be the hardest hit by Labor’s streaming quotas from January. (Capital Brief)

• Bruce Lehrmann rolled the dice on appeal, and ended up worse off (Capital Brief)

• Uber’s High Court appeal could reset how gig worker payments are taxed in Australia. (Capital Brief)

• Matt Berriman joins Xailient as it eyes a USD25m raise to grow its AI facial recognition business and workforce. (Capital Brief)

Trading floor

M&A

• Bendigo Bank is buying $5.2b of RACQ Bank’s retail assets to boost its Queensland footprint, with completion expected in early FY27. (Capital Brief)

• Nuix is buying French AI platform Linkurious for $35m to expand its analytics capabilities, funded partly by new debt, with completion expected in early 2026. (Capital Brief)

• ARN Media trims stake in Southern Cross Media; 19.1m shares traded via Barrenjoey. (AFR)

• Regis is selling two FNQ care homes to Ozcare for $25m, with completion by March 2026. (Capital Brief)

• Alvia Private Capital buys majority stake in The Automotive Group, partnering with CEO Petersen. (AFR)

• Mayne Pharma moves to terminate Cosette takeover, citing breaches that blocked FIRB approval. (Capital Brief)

• Swiss private equity firm Partners Group may join $1b Aidacare takeover after rivals exit. (The Australian)

• Rio Tinto to sell up to $15.1b in assets and cut decarbonisation spending, focusing on core mining operations. (Capital Brief)

• Blackstone eyes Steadfast buyout amid soft share price and slowed insurance premium growth. (The Australian)

• Webjet’s takeover battle may end in a compromise rather than a clear winner between BGH and Helloworld. (Capital Brief)

• Canada’s CSE confirms interest in buying Cboe’s Australia and Canada units to expand in both markets. (AFR)

Capital Markets

• Hachiko raised $2.5m to grow its battery storage optimisation software and expand its team. (Capital Brief)

• Locksley Resources seeks $15m via discounted placement after 1,375% YTD share surge. (AFR)

• Pro Medicus reported a July breach that may have exposed personal data of 100 employees but caused no operational or financial impact. (Capital Brief)

• APRA set a 2027–2032 phase-out of AT1 hybrids, replacing them with more effective capital and adjusting the leverage ratio to 3.25%. (Capital Brief)

• Andean Silver raises $30m at a discount to fund Cerro Bayo drilling. (AFR)

• Vulcan shares dropped after a steeply discounted $710m equity raise to help fund its Lionheart lithium project. (Capital Brief)

• Crikey staff secured 4% yearly pay rises, strong AI protections, and new leave entitlements under a three-year deal (Capital Brief)

• Sharon AI plans $100m pre-IPO round ahead of March ASX debut. (AFR)

• Household spending jumped 1.3% in October, led by discretionary goods and services, raising potential inflation concerns. (Capital Brief)

• Uber gains High Court leave to appeal $81.5m NSW payroll tax ruling. (Capital Brief)

• BGH Capital backs $200m TheirCare OSHC business, founder stays to expand. (AFR)

• NextDC begins building its first AI-ready Tokyo data centre, targeting completion in late 2030. (Capital Brief)

• Copper stocks jump as prices rise on supply concerns and possible US tariffs. (Capital Brief)

• Alphabet’s TPU chips fuel investor confidence and a 30% Q4 stock surge. (AFR)

• EU launches antitrust probe into Meta’s WhatsApp AI policy potentially limiting third-party providers. (Capital Brief)

• Queensland gas exporters offer cuts to local purchases and LNG shipments to avoid stricter supply rules. (AFR)

• Meta may slash its metaverse budget by 30%, with possible layoffs, amid ongoing losses and scrutiny. (Capital Brief) (Bloomberg)

• Airwallex tightened Chinese data access amid US expansion, drawing scrutiny over compliance and China links. (Capital Brief)

• HBO Max and Apple TV+ must boost Australian content under Labor’s new streaming quotas from January. (Capital Brief)

• Trump’s USD1,000 baby accounts are drawing fierce interest from Wall Street firms chasing future customers. (WSJ)

• US senators seek to block Nvidia sales of advanced chips to China. (FT)

• Reform UK receives record £9mn donation from Christopher Harborne. (FT)

• Japanese 10-year bond yields rise to highest level since 2007. (FT)

• Planet Earth has never had so many billionaires, says UBS. (CNN)

VC 

• OpenAI launches Australian startup program with six VCs, offering API credits, support, and AI education initiatives. (Capital Brief)

• Founder Institute ANZ backs eight startups in Spring accelerator with mentorship and global network access. (Startup Daily)

• Booie Beauty debuts in Woolworths with 10-product cosmetics range. (Smart Company)

• Bill Gates’ daughter Phoebe Gates is raising USD30m for her AI shopping startup Phia at a USD180m valuation after rapid early growth. (Bloomberg)

People moves

• ASX added Revolut Australia director Dee McGrath to its board as part of its ongoing board refresh. (Capital Brief)

• Shaw and Partners loses senior adviser Phil Zhou to Morgan Stanley Wealth. (AFR)

• Matt Berriman joins Xailient as executive chairman, guiding its $38m Series B while pursuing his Google legal fight. (Capital Brief)

• Siobhan McKenna attends Murdoch party despite abrupt News Corp exit, fueling speculation. (AFR)

• Citi names three new MDs as the role evolves with lower base pay and bonus focus. (The Australian)

• AirTrunk poaches Australia Post CFO Michael Bradburn, starting March 2. (AFR)

• ASA urges shareholders to oppose ANZ chair O’Sullivan’s re-election over regulatory failings and leadership concerns. (Capital Brief)

• Bendigo Bank trims staff and contractors amid AML failings and expected costs. (AFR)

The watercooler