☕️Bloated Canva(s)

Good morning.

Is Canva's move to be everything to everyone all at once risking becoming nothing to anyone in particular?

Dissecting the overnight announcement of Canva’s 'Creative Operating System', Capital Brief’s Bronwen Clune observed that the move confirms what many observers of the company suspected: the spate of AI related strategic acquisitions it has made over the past two years were part of a bigger plan.

Canva bought Leonardo to help build a proprietary, design-aware AI — a foundational model trained to understand composition, layout, and brand context. It acquired Magic Brief to build out advertising and marketing capabilities (now rebranded as Canva Grow). And it picked up Affinity (which it will now offer to users for free, forever) for professional credibility. Each acquisition fills a specific gap in the Canva ecosystem, enabling it to construct an integrated creative platform.

This is about fortifying its moat as IPO talk gets louder.

🏆 LOI Subscriber #TBD

Market movers

Shares in diversified miner Mineral Resources jumped on Thursday after stronger-than-expected quarterly earnings and record iron ore shipments confirmed it remains on track to meet FY26 targets. Gains were driven by the Onslow project hitting nameplate capacity and unlocking a $200 million milestone payment, alongside rising lithium price forecasts and an upgrade from JPMorgan.

The quick sync

• Startups are ditching software sales to rebuild services firms with AI at the core, writes Jackie Vullinghs. (Capital Brief)

• Vague terms and ministerial powers in Labor’s environment laws expected to prompt legal challenges, lawyers say. (Capital Brief)

• Albanese’s rapport with Trump is reshaping the politics of Labor’s AI and Big Tech reforms. (Capital Brief)

• KWM has left its global CEO role unfilled four months after Sue Kench’s exit, raising fresh questions over its China alliance. (Capital Brief)

• Big Tech tests investors’ patience with USD80b AI investment spree. (FT)

Trading floor

M&A

• China, US to cooperate on TikTok, broader trade issues; no deal yet. (Capital Brief)

• Roc Partners plans $1b sale of egg giant Pace Farm via Morgan Stanley, just 2.5 years after buying it for under $350m. (AFR)

• Igneo leads the race to buy Vector’s NZ fibre business, worth NZD150m, while Connexa is also interested. (The Australian)

• Novo Nordisk counters Pfizer with USD6.5b bid for obesity biotech Metsera, calling it a strategic fit for its diabetes and weight-loss drug portfolio. (Capital Brief)

• Japan’s Sojitz and private equity is eyeing UGL’s $1b transport division, though lower margins may deter some buyers. (The Australian)

• PE giants PEP, Warburg Pincus, and EQT to battle for Quadrant’s $1b Aidacare sale. (AFR)

• Salter Brothers and Kilara Capital formed a $200m JV, KSB Sustainable Investments, targeting decarbonisation projects. (AFR)

Capital Markets

• Alphabet beat earnings forecasts and lifted capex to USD93b to boost AI amid rising competition. (Capital Brief)

• Microsoft beat forecasts but shares fell on a sharp rise in AI-driven capex. (Capital Brief)

• Ex-KPMG dealmaker Brendan Larsen’s 29North seeks $50m to invest in founder-led firms after deploying $100m in three years. (AFR)

• Meta profit slumps 83% on Trump tax charge despite strong revenue. (Capital Brief)

• JB Hi-Fi Q1 sales rise, driven by NZ strength; The Good Guys slow. (Capital Brief)

• Coles Q1 sales up 3.9% on supermarket, eCommerce gains; liquor, tobacco drag. (Capital Brief)

• Woolworths narrows the gap with Coles as Q2 sales rise and customer sentiment improves. (Capital Brief)

• AI infrastructure firm Firmus Technologies is preparing a pre-IPO funding round ahead of a planned IPO in H1 next year, expected to raise over $1b. (The Australian)

• Lynas revenue up 17.6% to $200m on higher output, supporting magnet manufacturing expansion plans. (Capital Brief)

• Aware Super and others urge WiseTech to strengthen governance after ASIC and police raid. (AFR)

• Ampol sales down 7.6% on refinery downtime, offset by stronger margins from global outages. (Capital Brief)

• StrongRoom AI owner Joe Zhou raises $1.2m to aid company comeback. (Capital Brief)

• CryptoLink fined $56k by AUSTRAC over AML lapses after $50k scam victim fees. (AFR)

• MinRes jumps 9% on strong Q1 update and Onslow performance. (Capital Brief)

• Wesfarmers shares drop 5.3% on chair’s criticism of proposed cash flow tax. (Capital Brief)

• Healthscope moves to repay deferred rent ahead of talks on permanent rent reductions. (AFR)

• Data#3 shares drop 6.7% on Macquarie downgrade amid soft SME IT demand. (Capital Brief)

• Human Health raises $8.5m to expand chronic condition tracking platform. (Capital Brief)

• Rio Tinto to decentralise power to mines under CEO Trott, prompting possible senior exits. (AFR)

• Woolworths sees green shoots with 2.1% Q1 supermarket growth amid AGM pressure. (Capital Brief)

• BYD profit drops 33% amid fierce China EV price war, offset partly by 160% overseas sales growth. (Capital Brief)

• Canva launches new Creative Operating System, unifying AI, design, and analytics tools across seven new products. (Capital Brief)

• Navan shares fall in biggest IPO during shutdown. (WSJ)

• BlackRock stung by loans to business accused of ‘breathtaking’ fraud (WSJ)

VC 

• Redactive founders debut new AI onboarding startup Quarterzip after RecordPoint sale. (Capital Brief)

People moves

• News Corp exec Siobhan McKenna, key Lachlan Murdoch ally, to retire end of year. (Capital Brief)

• FSU blasts Westpac for axing 134 jobs before Christmas, calls move premature. (Capital Brief)

• Three managing directors — Jeffrey Largier, Jeremy Trouncer, and Chris Koeck — are set to leave Allegro Funds as the $5b private equity firm pitches its fifth buyout fund. (AFR)

• Karoon names Carri Lockhart CEO amid move to Brazil and US. (Capital Brief)

• Whitehaven chair Mark Vaile to retire within two years, begins search for successor. (Capital Brief)

• KWM faces leadership uncertainty as ex-global CEO Sue Kench joins EY amid doubts over its China-Australia alliance. (Capital Brief)

• James Hardie investors oust chair, demand new independent leader after $14b Azek fallout. (AFR)

• Steadfast CEO Robert Kelly steps aside during workplace complaint probe; trading halt in place. (Capital Brief)

• Simon Warner named Aware Super CIO, leading $205b investment team. (Capital Brief)

• Santos under pressure over CFO Sherry Duhe’s sudden exit, raising succession concerns. (AFR)

• Qantas digital chief Catriona Larritt quits months after major cyber breach.(Capital Brief)

The watercooler