☕️Br(AI)ns Trust

Good morning.

Fund managers have entered the AI talent fray, pitting them against tech giants in the scramble to arm themselves with the best minds in what has become the decade’s space race equivalent.

Sydney-based portfolio manager, research, Zhe Chen of Acadian Asset Management told Capital Brief that: “When you're hiring these people, what ends up happening is you are actually also competing with the Googles, the Metas, and the Amazons of the world. And so, there is increased competition for talent in the space as well.”

As it turns out, even Meta is struggling to secure the best talent – with Aussie AI expert Andrew Tulloch turning down billions to defect from his post at Thinking Machines Lab to join Mark Zuckerberg’s ‘superintelligence’ team.

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Market movers

Shares in GQG Partners tanked Friday after the fund manager said funds under management fell 3.4% in July and warned outflows could persist.

The quick sync

• Foxtel to keep NBA, NFL and more in multi-year ESPN deal under DAZN. (Capital Brief)

• After crossing $1 trillion and becoming a truly national platform, PEXA is pushing into the UK and compliance markets while fending off monopoly critics. (Capital Brief)

• CoStar’s $3b Domain takeover sets the stage for a high-stakes clash with REA as sweeping leadership shifts hit both sides. (Capital Brief)

• After July’s on-hold shocker, the RBA is widely expected to cut rates this week, and all eyes are on the vote split and fresh forecasts. (Capital Brief)

• Hedge funds are piling into the AI trade, and the rush led by Aschenbrenner’s US$1.5 billion debut shows how quickly fortunes (and risks) can rise. (WSJ)

Trading floor

M&A

• Andy Florance’s Domain takeover sets up a leadership-shifting battle with REA Group. (Capital Brief)

• PEP nears majority stake in Spark NZ data centres. (AFR)

• Igneo considers sale of bulk liquid storage firm Quantem. (The Australian)

• Aurizon may sell 49% of $4b Queensland rail network. (AFR)

• Foxtel keeps ESPN’s NBA and NFL in new Disney deal. (Capital Brief)

• Billionaire winemaker John Casella is selling eight premium South Australian vineyards in McLaren Vale and Adelaide Hills. (AFR)

• GIC backs Invesco’s $845m Retire-Australia buy, eyes Keyton. (The Australian)

• Lactalis leads bid for Fonterra’s Australian food business. (AFR)

Capital Markets

• CBA set for record profit and bigger dividend. (AFR)

• Global fund managers like Acadian Asset Management join tech giants in race for AI talent. (Capital Brief)

• Urbnsurf seeks $75m recapitalisation with iPartners backing. (AFR)

• Liontown shares may jump after $316m raise limits short covering. (The Australian)

• Matt King, a markets veteran formerly from Citi, worries AI is pushing us to breaking point. (AFR)

• Sushi Hub targets $1b valuation as it opens its 200th store and pushes into New Zealand and the US. (AFR)

• Datt Capital is buying into Monash IVF, arguing two embryo errors don’t justify its steep share price fall. (AFR)

VC 

• Sam Kroonenburg launches $44.5m AI ad startup Cuttable. (AFR)

• $7m-a-year Corrs CEO Gavin MacLaren starts consulting side venture. (AFR)

People moves

• Former Citi ECM head Rob Jahrling joins Bell Potter. (AFR)

• Iress CEO Marcus Price is set to exit as board rejects sub-$15 takeover bids. (The Australian)

• Westpac CEO Anthony Miller pushes cultural shake-up amid mass layoffs. (AFR)

The watercooler