☕️ House of cards

Good morning.

Holding Star Entertainment shares now must feel like clutching casino chips at a table where the house has folded.

With only $79 million in cash, the casino operator is circling insolvency. Sources close to secured lenders (arguably the real shareholders at this point) told the AFR administration is the likely next step, as relentless cash burn—fuelled by Queen’s Wharf overruns and debt costs —and regulatory fines yet to be determined by AUSTRAC erode the company’s chances of survival.

Bruce Mathieson, the biggest shareholder out of those holding $372 million worth of chips – sorry, shares – told The Australian he’s not prepared to throw good money after bad as things stand. While regulators and governments could step in to save 9000 jobs and stabilise operations, no rescue plan has been tabled, leaving creditors to call the shots.

🏆 LOI Subscriber #TBD

Market movers

Lovisa lost a fair bit of its sparkle yesterday, with shares tanking after UBS downgraded its investment recommendation to ‘sell’ and slashed its 1-year price target to $27, from $29.

They also called out store openings seem to be stalling, with ex-CEO Shane Fallscheer’s Harli + Harpa turning up the heat, intensifying the competitive pressure on Lovisa.

The quick sync

• Labor vows to force Meta to pay for news after Mark Zuckerberg signals resistance by aligning with Donald Trump to resist the efforts of foreign regulators. (Capital Brief)

• Swyftx faces ethical backlash for using its secret-owned news site to promote itself without clear disclosure. (Capital Brief)

• US banks abandon net-zero alliance under Donald Trump’s influence, a shift that could eventually reach Australia shores despite current resistance. (Capital Brief)

• BlackRock's private equity fund faces a US$600m loss as restructuring of Alacrity Solutions hands control to creditors, highlighting risks in private credit amidst rising interest rates. (FT)

• Bronte Capital seeks journalists to revitalise its struggling short-selling strategy after its second-worst losing streak, seeking to sharpen its focus on profitable opportunities. (AFR)

Trading floor

M&A

• UBS nears settlement of Credit Suisse US tax case for hundreds of millions. (WSJ)

• Swyftx criticized for lack of transparency in promoting itself via its owned news site. (Capital Brief)

• Darktrace buys Cado Security for up to $161m, backed by Malcolm Turnbull. (AFR)

• Arcadium Lithium shares jump as Rio Tinto acquisition clears major approvals. (Capital Brief)

• Star Entertainment settles legal dispute and agrees to sell luxury yacht to Cypriot businessman. (AFR)

• US banks exit climate alliance as ESG commitments wane under Trump-era pressures. (Capital Brief)

• Dutton and Queensland Premier oppose CFMEU on $9bn highway project, matching Labor's pledge. (AFR)

• Telstra and SpaceX's Starlink partner to bring satellite-to-mobile text messaging to Australia, enhancing remote connectivity. (Telstra)

Capital Markets

• Gold stocks rise on ASX amid bond sell-offs and US tariff concerns. (Capital Brief)

• Monark Property raises $45m for debt fund, capping size to manage risk. (AFR)

• Weak macroeconomics and commodity prices hinder Australian miners' recovery, Citi says. (Capital Brief)

VC

• Daniel Willis launches One03 Ventures, focusing on scaling Australian startups with revenues between $2.5m and $25m. (Startup Daily)

People moves

• Emma Shipley named MD and George Kostas executive chair of Roberts Co after CEO departure. (AFR)

• David Blight named executive chair at Lifestyle Communities amid CEO search. (Capital Brief)

• AI may cut 200,000 bank jobs but could also augment roles, boosting efficiency. (Capital Brief)

• Titanium Ventures restructures after Telstra's LP exit and leadership changes. (Capital Brief)

• Security researcher Ben Sadeghipour discovered a bug in Facebook's ad platform that gave him internal server access, earning him a $100,000 bug bounty after reporting it to Meta. (TechCrunch)

• Carlton president Luke Sayers under fire after an explicit photo was sent from his social media account to a sponsor’s executive. He denies involvement, claiming his account was hacked. (AFR)

• Novak Djokovic claims he was "poisoned" with heavy metals during his 2022 Melbourne detention, ahead of his return for the Australian Open. (AFR)

The watercooler