☕️ Citi’s brass

Good morning.

A band of ex-Citi MDs wants CEO Jane Fraser’s transformation crew to feel the heat. Bloomberg reports they’ve written to Citi’s board urging them to claw back bonuses they see as “unwarranted”.

The former execs aren’t buying into payouts for unfinished business and want tighter purse strings, claiming loyalty, not results, is currently driving Fraser’s ship. Apparently, they’re also over the cash drain on consultants.

As Bloomberg points out, Citi’s shares have edged up 25% this year, but that’s weak tea against its US banking giants, all of which, unlike Citi, trade at or above book value.

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Market movers

MinRes shares jumped on Thursday after it inked a $1.1 billion deal with Gina Rinehart’s Hancock Prospecting for its Perth Basin assets, which RBC had valued at $600 million.

Jarden analysts called out MinRes’ weak 1Q results but said they were “overshadowed” by the Hancock deal, with the $804 million upfront more than double their $400 million valuation.

The quick sync

• Fortescue’s $60b green shift faces tech and production hurdles as it races to cut emissions without offsets, balancing massive investments in electric fleets and AI-driven energy optimization amid falling iron ore prices. (Capital Brief)

• Main Sequence expands healthcare investments, with a focus on women’s health, diagnostics and therapeutics, leveraging new expert hires to target high-return innovations in Australia's growing medtech sector. (Capital Brief)

• Federated Hermes' Lewis Grant reflects on selling Nvidia just before its 200% surge, explaining his firm's quant-driven approach, London’s cautious stance on a Trump presidency, and evolving risk models to capture market shifts like the AI boom. (Capital Brief)

• Australian home values grew for the 21st straight month in October, rising 0.3% with declines in capitals like Sydney and Melbourne but gains in Perth and Adelaide. (Capital Brief)

• IFM Investors’ executive pay surged 48% to $15.5m in 2023-24, despite flat revenue and a 12.5% profit drop, largely due to payouts from long-term incentives. (AFR)

• The Fed’s preferred inflation gauge edged up in September, keeping inflation’s downward trend intact, but steady core price pressures may slow the central bank’s rate-cutting plans. (Capital Brief)

• Canva’s valuation surged to $48b after a secondary sale, but limited disclosure on buyers, sellers and deal specifics leaves investors with more questions than answers. (Capital Brief)

• ACCC chair Gina Cass-Gottlieb calls for banking competition reform. (The Australian)

• Chinese sanctions cut off critical battery supplies to Skydio, a major US drone maker supplying Ukraine.  (FT)

Trading floor

M&A

• Whitehaven Coal is preparing to bid for the $3bn Kestrel coal mine while skipping the $4.5bn Anglo American coal sale. (The Australian)

• Southern Cross Austereo reported a revenue boost and is advancing the sale of regional TV assets to pay down debt amidst an ad market slump. (Capital Brief)

• EMR Capital plans to hire an adviser to consider options for its 45% stake in 29Metals, which has underperformed in public markets despite strong investment results. (The Australian)

• Private equity has acquired Brisbane software company MEX for over $100m, advised by RBC Capital Markets. (AFR)

• Syrah Resources gains US loan for its Mozambique graphite project, lifting shares and supporting US-Africa development goals. (Capital Brief)

• Flight Centre acquires Cruise Club UK to boost growth in the UK leisure market. (Capital Brief)

• As Chris Ellison faces scrutiny at Mineral Resources, talks of a breakup arise, with speculation that Wesfarmers could acquire some of its assets, despite a full buyout being unlikely. (The Australian)

• Alignment Growth Management has acquired a stake in Melbourne's PMY Group, which specializes in technology for live sports and entertainment. (BNA)

Capital Markets

• Bowen Coking Coal struggles to raise $70m as its shares remain suspended, with the settlement date for its shortfall offer extended to November 4. (The Australian)

• Epiminder, a Melbourne medtech firm backed by Cochlear, aims for a $200m valuation in a pre-IPO raise as it nears FDA approval for its seizure-detecting device, set to launch in the US by 2027. (AFR)

• Barings has launched its first Australia-focused private credit fund, securing $230m and having over $690m for senior lending. (AFR)

• The ASX 200 dropped 0.83% as supermarket stocks fell over cost-of-living impact concerns. (Capital Brief)

• Burrendong Minerals seeks to raise $5m for a December IPO on the ASX, despite a slowdown in larger IPOs. (AFR)

• Pilbara Minerals cuts production guidance and delays projects, causing a 1.1% share drop amid tough market conditions. (Capital Brief)

• Capricorn Metals pauses ASX trading before releasing major capital raising results. (Capital Brief)

• Red Metal's share plan attracted $6.6m in applications, surpassing its $2m target, fully funding its exploration efforts for the year. (SMH)

• Roblox shares surged as strong daily user growth and bookings beat expectations, prompting an outlook boost amid Hindenburg’s disputed claims on user metrics. (WSJ)

• Peloton shares jumped as new CEO Peter Stern brings hopes for a profitable turnaround, though FY25 revenue guidance trails consensus. (CNBC)(Bloomberg)

• Estée Lauder shares plunged as the cosmetics giant slashed its dividend, pulled financial forecasts and warned of ongoing sales declines in China and Asia travel markets amidst a leadership shake-up. (WSJ)

VC

• EQT has led a $45m funding round for Australian AI startup Neara, which creates digital replicas of critical infrastructure for power companies. (AFR)

• Fusion startup HB11 Energy is raising significant funding to scale its technology, with Big Tech interest spurred by demand for sustainable energy for AI. (Capital Brief)

• WaveX is seeking $3.5m to fund a prototype of its wave energy technology off Albany, attracting government interest. (AFR)

• Juliet Kirby launched Gentoo.earth, an AI platform for carbon removal companies, in Sydney and has moved to San Francisco to scale it internationally. (Smart Company)

• ELumina has opened a $20m EV charger factory on the Gold Coast, designed to improve charging infrastructure in regional Australia. (BNA)

• California drone startup Shield AI’s autonomous V-BAT drones passed Ukraine’s rigorous electronic warfare tests, securing Ukraine’s request for hundreds of units (WSJ)

People moves

• Cbus is restructuring, resulting in the redundancy of several senior staff, amid concerns over turnover and performance, alarming Morningstar. (AFR)

• ANZ's new executive role aims to unify operations teams for greater efficiency and divisional alignment. (Capital Brief)

• Super Micro Computer's auditor EY resigned over integrity concerns amid delayed filings and revenue overstatement allegations under investigation. (Capital Brief)

• Brad Banducci starts his post-Woolworths life. (AFR)

• ANZ ramps up search for CEO replacement (The Australian)

The watercooler