☕️ Fee squeeze

Good morning.

Stock markets caught a break after Donald Trump hit pause on 25% tariffs for Mexican imports.

But asset managers weren’t so lucky. Vanguard just hit the industry with its biggest-ever fee cut—slashing costs on 87 funds and handing investors an estimated US$350 million windfall this year.

Not happy with already being the low-cost leader, the US$10 trillion giant is turning the screws even further, particularly in fixed income, where actively managed bond funds will cost just 0.10%—a fraction of the industry’s 0.44% average.

With rivals already haemorrhaging assets, new CEO Salim Ramji knows this only accelerates the inevitable and is making a play for bond dominance.

🏆 LOI Subscriber #TBD

Market movers

Westgold’s shares plunged Monday after it slashed gold production guidance and hiked cost forecasts, as engineering setbacks at its key WA mines hit output.

The quick sync

• Australia’s startups raised $4b in 2024, but cracks are showing—early-stage funding is drying up, IPOs remain difficult and women-led ventures are still fighting for capital. (Capital Brief)

• While Trump-backed meme coins surge in the US, Australia’s regulators are sitting on the sidelines, letting speculative crypto tokens thrive unchecked. (Capital Brief)

• Trump's escalating tariffs send shockwaves through the ASX, with Bluescope, ResMed, WiseTech and Cettire among the companies set to win or lose in the unfolding trade war. (Capital Brief)

• Seven and Ten poured $87,000 into Labor and Liberal coffers last year—right as the government pushed ahead with media reforms. (Capital Brief)

• Receivers step in at Nautique, a $300m Rushcutters Bay apartment project, despite raking in $140m in early sales—another sign of turmoil in Sydney’s luxury property market. (The Australian)

Trading floor

M&A

• Barrenjoey enters Hong Kong with Forsyth Barr Asia acquisition. (Capital Brief)

• Nippon Steel and US Steel accuse Biden of blocking their merger through a biased review process. (Bloomberg)

• Blackstone is eyeing a potential acquisition of Star Entertainment, possibly after voluntary administration (The Australian)

• North Queensland Airports begins a $3B sale, with offers due by April. (AFR)

• China is preparing a trade proposal to the Trump administration in a bid to avoid further tariffs and technology restrictions. (Capital Brief)

• NAB has assessed acquiring Scottish Pacific but is not pursuing it for now, as part of broader mergers and acquisitions plans (The Australian)

• AustralianSuper invested $500M in Nvidia before its January 2025 crash. (AFR)

• Ontario cancels Starlink deal and bans U.S. firms in retaliation for Trump’s tariffs. (Reuters)

• Meta's investment in VR and AR exceeds $80B, with a focus on smart glasses and VR headsets, and expects 2025 to be key for its AR products. (FT)

Capital Markets

• Australian private equity funds face a $25b valuation hit as rising interest rates, shrinking profit margins and lower valuations wipe out gains from the sector’s rapid expansion. (AFR)

• Donald Trump signs order to create a US sovereign wealth fund, with commerce secretary pick suggesting it could aid a TikTok sale. (Reuters)(Bloomberg)

• ASIC probes ASX CHESS outage amid replacement program issues. (Capital Brief)

• Westgold cuts output forecast due to mine ramp-up delays. (Capital Brief)

• The US Agency for International Development (USAID), responsible for over $40B in global aid, faces collapse under Trump, sparking global aid uncertainty. (Bloomberg)

• Novonix backs US probe into China’s graphite pricing tactics. (Capital Brief)

• BP halts $600M renewable fuel project in Perth, reassessing demand and returns. (AFR)

• ASX falls 2% after Trump tariff news. (Capital Brief)

• Trump's trade policies threaten Chinese firms like Shein and Temu, with Shein’s planned London listing in jeopardy. (Bloomberg)

• Cybercrime costs risk rising as surcharging debate hampers security investment. (Capital Brief)

• Green hydrogen projects in WA and Tasmania push forward despite Queensland’s CQ-H2 project collapse. (AFR)

• Star Entertainment shares rise as JP Morgan boosts stake. (Capital Brief)

• GoZero Group and Carlyle Group are working on a $200M debt deal for NSW electric buses. (AFR)

• Regis Resources secures $300M credit facility after early loan repayment. (Capital Brief)

• Orezone Gold and Discovery Silver are considering Australian IPOs, following the success of ASX-listed West African Resources. (AFR)

• Network Ten and Seven donate $87,000 to major political parties in 2024. (Capital Brief)

• Elon Musk vows to cancel government grants after reportedly gaining access to the US Treasury's payment system, claiming it was being misused for fraudulent and terrorist payments. (FT)

• Trump’s tariffs cause global market slump, with currencies and oil prices hit. (Capital Brief)

• Trump delays tariffs on Mexico after border security deal, as negotiations with Canada continue. (Capital Brief)

• Trump pledges to stop US aid to South Africa over its land expropriation policies, criticizing the government’s actions. (FT)

• The ASX is feeling the effects of Trump's trade war, with some companies benefiting (like Bluescope) and others at risk. (Capital Brief)

• Deloitte settles with Noumi shareholders for $31M over audit failure. (AFR)

VC

• SoftBank and OpenAI launch SB OpenAI Japan, investing heavily in AI technology. (Reuters)

• Kashcade, an R&D lender, is raising $50M to fund Australian startups, seeking term sheets from private credit funds. (AFR)

• Five Australian startups got $3.6M in grants for NASA's Moon to Mars program, including entX’s $1M for a temperature-protecting unit. (Startup Daily)

• LaunchVic's Basecamp program supports startup founders in leadership, focusing on hiring and retaining talent to address a shortage of non-technical senior roles. (Smart Company)

People moves

• Fletcher Building names Peter Crowley as chair amid leadership changes and financial woes. (Capital Brief)

• Perennial hires Luke Fay as co-head of private investments to strengthen its team. (AFR)

• Resolute Mining CEO Terry Holohan departs after his detention in Mali, with acting CEO Chris Eger as his replacement. (Capital Brief)

• Samsung's Jay Y. Lee was cleared of fraud and stock-rigging charges by the Seoul High Court, allowing him to focus on revitalizing the company. (Bloomberg)

• Alpha HPA appoints Rob Williamson as managing director, shifting Rimas Kairaitis to chief commercial officer, as it prepares for growth in Queensland. (Capital Brief)

• Angus Mann resigns from Mutual Trust, leaving behind $500M in client assets. (AFR)

• Magellan shares continue to fall as UBS warns of potential outflows after key investment leader Gerald Stack’s departure. (Capital Brief)

• Anna Bligh is leaving the banking lobby after eight years, having steered the sector from scandal to stability and through a pandemic-era public relations reset. (AFR)(Capital Brief)

The watercooler