☕️Champagne Problems

Good morning.

The third son of billionaire Bernard Arnault has his work cut out for him, having been handed the reins to LVMH’s worst performing unit, Moët Hennessy. While the 33-year-old Alexandre Arnault has already done stints at Tiffany and Rimowa, Moët Hennessy went from generating €1 billion ($1.74 billion) in cash in 2019 to burning through €1.5 billion last year, the FT reports.

It remains to be seen whether Moët Hennessy will be Alexandre’s poisoned chalice or the test that slingshots him to the front of the queue in the family’s looming succession contest.

🏆 LOI Subscriber #TBD

Market movers

Shares of family-safety app company Life360 soared Wednesday on surging ad revenue, despite warnings from Morningstar the stock now “screens as materially overvalued”.

The quick sync

• ASIC sues Macquarie over 14 years of short sale misreporting, laying bare a culture of compliance complacency, putting its leadership under scrutiny and its risk model in doubt. (Capital Brief)

• Sydney is booming as a high frequency trading hub — not for Aussie stocks, but to cash in on the market frenzy in China and India. (Capital Brief)

• Angel investors freeze startup funding as Labor’s super tax proposal triggers liquidity fears and threatens early-stage capital flow. (Capital Brief)

• Telstra is set to launch Starlink-powered satellite text messaging within months, escalating its rural coverage battle with Optus and TPG. (The Australian)

Trading floor

M&A

• Bruce Gordon lifts Nine stake to 19.98%, nearing takeover threshold. (Capital Brief)

• Bain exits Insignia bid, citing global market uncertainty. (Capital Brief)

• Seidler Equity Partners acquires minority stake in Sydney childcare operator Young Academics. (AFR)

• Woodside and Aramco have signed a non-binding deal to explore joint opportunities. (Capital Brief)

• Private equity and trade buyers eye Telstra's IT services unit, with Macquarie Capital managing the sale. (AFR)

• Sev.en may revisit buying Coronado, whose market value has plummeted. (The Australian)

• Perplexity teams up with PayPal for seamless in-chat purchases, expanding its e-commerce tools (Capital Brief)

• Downer EDI nears sale of 49% stake in Keolis Downer, ending its involvement in key public transport contracts. (AFR)

Capital Markets

• CBA’s profit rose to $2.6b as lending grew and margins held steady. (Capital Brief)

• Aristocrat profit dips 22%, but lifts dividend on stronger underlying performance. (Capital Brief)

• Centuria REIT keeps outlook after strong Q3 leasing, 41% rental growth. (Capital Brief)

• United Airlines is targeting more Australian customers with upgraded business class offerings, despite global uncertainties. (AFR)

• NRW halts trading amid SA bill on Whyalla Port ownership. (Capital Brief)

• Perth IT consultant StepChange, backed by Geoff Lewis, launches IPO with Ord Minnett's support. (AFR)

• Mayne Pharma halts trading after FDA risk warning on birth control pill. (Capital Brief)

• Unibail-Rodamco-Westfield (URW) plans to return €3.1b to shareholders through 2028, supported by asset sales and a focus on organic growth. (Capital Brief)

• Tencent's revenue jumps 13% in Q1, driven by gaming and AI advertising growth. (Capital Brief)

• Yowie is caught in a dispute between Nick Bolton and Keybridge Capital over plans to issue $500k in new shares, which Bolton’s critics say is aimed at maintaining control. (AFR)

• Foxconn's Q1 profits rise 91%, but it cuts guidance due to trade tariff uncertainty. (Capital Brief)

• EToro surged 43% on Nasdaq debut after upsizing its IPO to US$620m, cementing a US$6b valuation and signalling renewed momentum in US listings (Bloomberg)

• Panic grips SMSFs as wealthy Australians rush to sell down assets before Labor’s $3m super tax hits on 1 July. (AFR)

VC

• Plexus raises $6m to fuel global expansion and AI innovation, marking its first institutional partnership with Lighter Capital. (Plexus)

• YSB raises $2m in a Series C round for the launch of Bouf and plans international expansion, starting with the UK. (Smart Company)

People moves

• Sam Prentice moves from Rothschild & Co to Jarden as senior managing director. (AFR)

• Microsoft to cut up to 100 Australian jobs in global reduction of 6,000 roles, affecting staff across all levels. (AFR)

The watercooler