☕️Irreconcilable Differences

Good morning.

Former Reserve Bank of New Zealand governor Adrian Orr’s sudden departure this week has been linked to his refusal to get on board with the government’s plans to water down strict capital requirements on Australian banks. According to sources cited by the AFR, Orr justified his demands that Australia’s four major banks continue to hold world-leading levels of capital as a necessary protection for NZ, as the country does not have major banks of its own.

Orr’s position feels particularly out of step with the current sentiment of governments around the globe which are cutting chainsawing through financial red tape with abandon.  

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Market movers

Gold stocks rallied Thursday, with West African Resources soaring 12% as surging bullion prices and fresh trade tensions drove investors to the safe haven asset.

The quick sync

• As James Hennessy writes, the grand bargain with Trump's MAGA movement, which gave Elon Musk the keys to American government, represents the tech industry coming of political age. (Capital Brief)

• Pearler’s “not Boomers” super fund locks out over-55s—a move that could put it in hot water under age discrimination laws. (Capital Brief)

• As Elli Hanson writes, in an AI-saturated world, the real competitive edge isn’t technology—it’s human taste, the ability to make bold, original choices that machines cannot. (Capital Brief)

• Star Entertainment scrambles for survival as Hong Kong investors close in on its Brisbane casino, with a coal baron’s $200m loan offering a brief reprieve. (AFR)(The Australian)

Trading floor

M&A

• Rio Tinto finalizes $9.9b Arcadium Lithium takeover, and renames it Rio Tinto Lithium. (Capital Brief)

• Brookfield has cooled on its takeover bid for Insignia Financial, with sources indicating a formal proposal at $4.60 per share is now unlikely. (The Australian)

• ACCC’s new merger laws bring strict approval rules from July 1. (Capital Brief)

• Fleet Space Technologies has acquired HiSeis to enhance its AI-driven mineral exploration platform, ExoSphere. (Fleet Space Technologies)

• InfraBuild faces collapse as buyers assess its growing debt. (The Australian)

• Microsoft drops some CoreWeave deals over delays before $35b IPO. (Capital Brief)

• Seven & i Holdings is restructuring by selling assets, changing its CEO, and buying back shares to block Couche-Tard’s $47.5b bid. (Bloomberg)

Capital Markets

• Australia will strengthen STEM diversity with new harassment oversight. (Capital Brief)

• Australia’s eSafety report highlights major gaps in how tech firms handle terrorist and extremist content, especially in livestreamed material. (Capital Brief)

• GoZero’s IPO faces trouble after amicaa withdraws $200m+ funding. (AFR)

• Estonia warns that Russia’s military buildup poses a growing threat to NATO, especially amid shifting US security policies. (Capital Brief)

• Discord is in early talks with banks about a potential IPO, signaling a possible rebound in the US IPO market. (FT)

• APRA plans first major governance update in 10 years for financial firms. (Capital Brief)

• James Grenon leads push for NZME board overhaul with 37% investor backing. (The Australian)

• Rio Tinto invests $2.8b to expand Brockman iron ore mine. (Capital Brief)

• Konvoy Kegs hires FTI Consulting after lender AquAsia pulls funding. (AFR)

• Capital Brief launches Ideas for guest essays and analysis. (Capital Brief)

• Klarna targets $1b US IPO after restructuring and AI focus. (Capital Brief)

• ASIC appeal challenges Block Earner’s reliance on legal advice in court ruling. (Capital Brief)

• De Grey Mining faces tensions with traditional owners over WA gold project. (AFR)

• Global bonds fall as Germany unveils major spending plans. (Capital Brief)

• ECB cuts rates to 2.50%, citing weak growth and trade uncertainty. (Capital Brief)

• Trump’s crypto venture World Liberty Financial made a US$20m token buy right before a key White House meeting, fuelling speculation about its motives. (Bloomberg)

• Donald Trump’s tariff crackdown is shaking US business confidence, with executives bracing for inflation, rising costs, and an uncertain future. (Bloomberg)

• APRA’s plan to limit board tenure and oversee succession planning has sparked backlash from directors, who accuse the regulator of overreach in its bid to fix governance failures. (AFR)

• US layoffs up 245%, driven by Trump’s federal job cuts, with 500,000 losses expected in 2025. (Capital Brief)

VC

• None

People moves

• Michael Grimes, ex-Morgan Stanley banker and Musk advisor, may lead Trump’s tariff-funded US wealth fund. (Capital Brief)(Reuters)

• Inghams names Matthew Easton as CEO of its NZ business. (Capital Brief)

• Michael Hill names Andrew Lowe as interim CEO after Bracken’s passing. (Capital Brief)

• Air New Zealand CEO Greg Foran to resign in October. (Capital Brief)

• TEG is searching for new executives amid allegations of a toxic workplace culture, with former employees accusing senior management of bullying and fostering fear. (AFR)

The watercooler