☕️Chief Litquidity Officer

Good morning.

AustralianSuper has backed the prudential regulator’s year-long stress test of Australia’s financial system, as it says funds need to do more to manage the rising risks facing the $4.2 trillion superannuation sector, Capital Brief reports.

Pension funds champing at the bit to see the initial results of APRA's year-long stress test later this week, which is expected to recognise key weaknesses.

With these results looming, AustralianSuper’s very own (and industry-first…v lit) chief liquidity officer Chandu Bhindi said more could be done to safeguard funds: “This is not a risk-free system and that is why funds and regulators are working closely together to identify where the real risks lie so we can solve for these.”

🏆 LOI Subscriber #TBD

Market movers

Shares in enterprise software company Technology One plunged Tuesday after it reported record annual profit and revenue growth but missed consensus expectations on recurring revenue and withheld guidance for FY26. Despite delivering its 16th consecutive year of record profit and declaring a special dividend, the stock fell as investors reacted to an 18% rise in annual recurring revenue.

The quick sync

• Matt Comyn backed higher taxes, lower migration and a bank levy in parliament, despite the costs to CBA. (Capital Brief)

• Energy performance is now driving home prices, loan decisions and national climate policy, writes Lisa Jennings. (Capital Brief)

• Culture Amp cuts 6% of jobs to focus on AI Coach as HR software demand weakens. (Capital Brief)

• Labor’s streaming bill draws Senate concern over trade compliance and second run content impact. (Capital Brief)

• Ex-Biden aide Ben LaBolt backs affordability messaging post-Mamdani as BPI partners with Mandala to expand into Asia. (Capital Brief)

• Catapult targets profit in 18 to 24 months as CEO downplays 30% share fall and cites record earnings. (Capital Brief)

Trading floor

M&A

• Ashurst and Perkins Coie merged to form a major global law firm with broad sector strengths and USD2.7b in revenue. (Capital Brief)

• ASIC’s stop order delays La Trobe sale, but a Warburg Pincus dealmaker is working to keep the 2026 deal on track. (AFR)

• One Investment Group is for sale to repay lenders after the iProsperity fraud. (AFR)

• Sandfire targets BHP’s West Musgrave mine to grow copper and nickel assets. (The Australian)

• ATOM, backed by Pacific Equity Partners, adds a bolt-on acquisition to grow its industrial supplies business. (AFR)

• AkzoNobel and Axalta to merge, forming a USD25b global paint giant. (Capital Brief)

• Newmark Capital, led by Langford, eyes Midtown Bourke St property amid prior project cost concerns. (The Australian)

• Australia won’t veto Turkey’s COP31 bid to prioritise Pacific interests and prevent a less favourable outcome. (Capital Brief)

• EY re-launches Experteeth Dental sale, targeting $120m valuation amid strong growth. (AFR)

• EMR Capital may relist Ravenswood gold mine, though high gold prices complicate the sale. (The Australian)

• Microsoft and Nvidia are investing heavily in Anthropic, which will spend USD30b on Azure in a major circular AI deal. (Capital Brief)

• NZX considers buying Cboe Australia to boost market competition. (AFR)

• StraitNZ ferry business could sell for NZD500m–1b, appealing to core-plus investors. (The Australian)

• Ben LaBolt’s firm partners with Australia’s Mandala as he pushes US Democrats to campaign on affordability. (Capital Brief)

Capital Markets

• Catapult’s revenue and customer metrics rose strongly, but depreciation led to a net loss; the company is targeting higher free cash flow and expanding through acquisition. (Capital Brief)

• Ten Cap will list its first active ETF using its long/short Alpha Plus strategy to deliver equity-like returns with lower volatility. (Capital Brief)

• The Memo raises $20m to grow its Millennial-focused parenting brand. (AFR)

• James Hardie’s stock rose on strong Q2 results, higher guidance, and new leadership despite a reported net loss. (Capital Brief)

• Technology One stock plunged after an ARR growth miss and lack of FY26 guidance despite strong profit and dividends. (Capital Brief)

• Jon Adgemis secured $135m against a $4.5m property, fueling $1.7bn debt and Australia’s largest personal bankruptcy since Alan Bond. (AFR)

• CBA refuses ASIC’s $285m compensation push, unlike other major banks that agreed to refund customers. (Capital Brief)

• ALS delivered strong results and raised guidance, but shares still dipped. (Capital Brief)

• Mayne Pharma shares ticked up after another FIRB delay and updated clarity on Cosette’s funding, though takeover uncertainty remains. (Capital Brief)

• Cloudflare outage knocks major platforms offline; services now gradually recovering. (Capital Brief)

• Regulations are limiting super funds’ investment in PE/VC, costing retirees thousands in missed returns. (Capital Brief)

• My Muscle Chef issues $23m dividend despite flat earnings. (AFR)

• CSL is spending USD1.5b to grow its US plasma-therapy operations. (Capital Brief)

• Home Depot lowered its outlook after softer demand led to missed earnings and sales. (Capital Brief)

VC 

• Edrolo’s Ben Sze raises $1.85m for Teacher’s Buddy, an AI tool used by 12,000 teachers to cut workload. (Capital Brief)

• Australia’s top female-founded sexual wellness brand, Normal, seeks growth capital through Birchal after five years of self-funding. (Startup Daily)

• Australian-led AI startup Sphere eases tax compliance, valued at $150m after one year. (AFR)

People moves

• After 1835i’s closure, ex-ANZ ventures chief David Rowe joined fintech start-up GXE. (AFR)

• DroneShield CEO Oleg Vornik goes missing after executives’ share sell-off triggers 31% stock plunge. (AFR)

• Amanda Laing takes over Nine’s streaming and broadcast division amid staff cuts and consolidation. (AFR)

• EY Oceania cuts 90 roles amid advisory market pressures, including at Future Friendly. (AFR)

• Rio Tinto to cut 180 jobs at Yarwun refinery, with closure planned by 2035. (AFR)

• Culture Amp cuts 6% of staff to focus on new AI products. (Capital Brief)

• Alan Joyce re-emerges to celebrate Sydney’s seaplane and Qantas history. (AFR)

The watercooler