☕️Crypto Backflip

Good morning.

In a great coming together of crypto bros and finance bros (🤝), Morgan Stanley is working on plans to add crypto trading to its E*Trade platform, one of the most significant moves by a major US bank to buy into the asset class. MS’ crypto pivot comes as Trump works to make the US the ‘crypto capital of the planet,’ and signals a u-turn on historical shunning of the volatile asset by traditional institutions.

On the old guard front, Warren Buffett will hold his annual meeting in Omaha, Nebraska this weekend, marking his 60^th year at the helm of the notoriously prudent Berkshire Hathaway. In 2018 Buffett (the single largest holder of US Treasuries) famously said that Bitcoin is “probably rat poison squared.”

🏆 LOI Subscriber #TBD

Market movers

Judo Capital shares plunged Thursday after it downgraded full-year loan growth guidance, citing market volatility and slower lending.

The quick sync

• Banks are bleeding mortgage customers to brokers because their branches and digital channels don’t talk to each other—fixing that gap could be worth billions. (Capital Brief)

• As Diane Tate writes, Australia's next treasurer must back efficient markets over regulation to unlock long-term growth and resilience. (Capital Brief)

• As Elaine Stead writes, without urgent reinvestment in fundamental science, Australia’s tech sector faces stagnation, job losses and strategic decline. (Capital Brief)

• Lightspeed joins top Silicon Valley VCs in ditching the traditional model to chase bigger, AI-driven bets as a registered investment advisor. (Bloomberg)

• Bruce Gordon is poised to tighten his grip on Nine Entertainment by converting equity swaps into voting shares, as a $2.8b Domain sale to CoStar nears completion. (Capital Brief)

Trading floor

M&A

• Amcor finalised Berry deal and trimmed earnings forecast amid soft Q3 demand. (Capital Brief)

• Resolute to buy two Côte d’Ivoire gold projects from AngloGold for $234m. (Capital Brief)

• AUSIEX acquires FIIG Securities to expand trading footprint in Australia. (AFR)

• L1 buys into Platinum and enters merger talks to form $18b fund group. (Capital Brief)(AFR)

• Healius completed the sale of Lumus Imaging to Affinity Equity Partners, boosting its stock price. (Capital Brief)

• WiseTech has confirmed its interest in acquiring US-based e2open as part of a broader strategic review, with no deal assured (Capital Brief)

• Tetra Tech acquires Adelaide's SAGE Group, known for contracts with top brands. (AFR)

• Denise Coates eyes $18b Bet365 sale amid rising US demand. (AFR)

Capital Markets

• Apple beats 2Q estimates but China sales disappoint. (Capital Brief)

• Amazon Q2 profit forecast disappoints as tariffs bite. (Capital Brief)

• Microsoft beat estimates thanks to strong Azure cloud growth. (Capital Brief)

• Meta beat forecasts and boosted AI spending amid ad growth and regulatory challenges. (Capital Brief)

• Lenders to Bingo Industries, which owes $800m, are set to hire an investment bank amid uncertainty over Macquarie’s potential additional equity. (The Australian)

• Rox Resources raises $40m with a 16.7% discount in new share placement. (AFR)

• Woolworths Q3 sales rose 3.2%, but Big W remains under pressure. (Capital Brief)

• KKR posts quarterly loss due to $1b hit from insurance unit, despite strong private equity fundraising. (FT)

• Multiplex posted a $122.4m loss in 2024 due to cost blowouts on the Queen’s Wharf project, but auditors confirmed the company can continue operating. (The Australian)

• Sims scraps plastics tech project, resulting in a $25m financial hit. (Capital Brief)

• Worley wins two-year extension for services at Woodside’s WA gas plants. (Capital Brief)

• Greenhill Australia posted a $1.4m loss in 2024, down from an $8.6m profit, due to accounting changes and higher expenses. (The Australian)

• Rio Tinto rejects push to review dual-listing structure. (Capital Brief)

VC

• Antler backs 8 AI-focused startups in its 12th cohort, offering follow-on funding via its ARC model. (Startup Daily)

People moves

• Tesla denies CEO search, backs Musk amid WSJ report and profit concerns. (Capital Brief)

• HSBC Chairman Mark Tucker to step down by 2025, successor search begins. (Bloomberg)

• Aware Super CIO Damian Graham to lead international arm from London. (Capital Brief)

The watercooler