☕️Crypto Comprehension

Good morning.

The FT’s Alphaville delved into a hot-yet-existential topic for those absorbed by the digital assets scene. A stablecoin may be a stablecoin, but which non-crypto instrument or thing does it most closely resemble? They can do things that banks do, like issuing runnable liabilities and facilitating payments, but should they be regulated as banks for that reason??

Alphaville says that the definition of a bank seems to be based on two key traits: taking deposits for the public, and making loans. The FT designed an ever-so helpful lawful good to chaotic evil chart to help us most effectively answer these important questions (scroll down to Watercooler for the goods).

🏆 LOI Subscriber #TBD

Market movers

Web Travel’s shares soared Wednesday after it posted a 22% surge in transactions for the year ending 31 March, shrugging off the macro gloom.

The quick sync

• As Anthony Liveris writes, Australia’s world-class science is failing to deliver startups. An overhaul of funding and commercialisation models could unlock global opportunities. (Capital Brief)

• Australia faces hard choices, with the Productivity Commission warning tax cuts, less red tape and AI are key to counter global volatility and low investment. (Capital Brief)

• Vinyl Group accuses ex-Brag Media CEO Luke Girgis of falsifying salary records to secure a loan. (Capital Brief)

• Labor’s $3 million super tax will hit 80,000 rich Aussies, including Steven Kennedy, Treasury’s own chief. (Capital Brief)

• Australia’s startup sector risks missing trillion-dollar opportunities if it fails to build political clout amid the super tax row that exposed its limited influence. (Capital Brief)

Trading floor

M&A

• IGO quit a WA copper JV, leaving the project to Encounter after major exploration work. (Capital Brief)

• Lumus Imaging buys Newcastle’s In Focus Radiology to fuel growth under Affinity ownership. (AFR)

• Cantor Fitzgerald buys UBS hedge fund unit O’Connor to boost asset management. (Capital Brief)

• Constellation Software presses sell on EROAD shares, offering up to 21.3m. (AFR)

• Morrison plans to sell Qscan by 2026, valuing it close to NZ$1b. (The Australian)

• Accolade Wines and Pernod Ricard push $700m debt deal to back turnaround plan following Bain Capital takeover. (AFR)

Capital Markets

• Fisher & Paykel profit up 43% to NZ$377m; lifts dividend, forecasts more growth in FY26. (Capital Brief)

• Infratil hit earnings targets but posted a loss amid market challenges. (Capital Brief)

• James Hardie’s $14b Azek deal faces rising debt costs, with bridging loan expenses climbing to $467m , fueling shareholder concerns. (AFR)

• Goodman held its growth forecast despite trade uncertainty, backed by tight supply and loyal customers. (Capital Brief)

• Tetratherix lists on ASX with a $115m IPO for regenerative therapy. (AFR)

• Telstra upgraded by Macquarie after $4.5b cost-cut plan and new network strategy. (Capital Brief)

• Eagers sticks to 2025 profit goal despite early headwinds, backed by steady growth. (Capital Brief)

• Good & Fugly has stopped trading under its founders but will continue with backing from OzHarvest and chef Matt Moran. (Smart Company)

• Citi cuts South32 rating as weak global demand outweighs China’s support. (Capital Brief)

• SecondQuarter urges super funds to boost funding amid strong startup liquidity demand. (Capital Brief)

• Centuria divests $71m in Central Coast retail to close funds amid strong investor interest. (Capital Brief)

• Shein pivots from London to Hong Kong IPO amid Beijing’s blocking and market pressures. (Capital Brief)

• UBS launches $880m block trade in EBOS for Sybos Holdings. (AFR)

• Nvidia posts record-breaking Q1 revenue of US$44.1b but braces for an US$8b H20 revenue hit in Q2 due to new export curbs. (Capital Brief)(Bloomberg)

VC

• Australia’s science struggles to become startups due to funding gaps and VC structure mismatches. (Capital Brief)

• CalcTree raised $3.8m to modernise engineering, with first-ever startup backing from Standards Australia. (Smart Company)

• Eucalyptus, a weight-loss pill healthcare startup, nears $1b valuation after $150m funding round. (AFR)

• AI video firm Unleash Live raised $17m to expand globally and improve its platform. (Startup Daily)

People moves

• BTC Markets CEO Caroline Bowler resigns after 5 years amid plans for renewed growth. (Capital Brief)

• McKinsey cut 10% of staff as consulting demand slows. (AFR)

• RBC hires Mark Wilson as head of equity research for Australia and NZ. (The Australian)

The watercooler