☕️ Give it a Myth(os)

Good morning.

Australia’s largest banks, insurers and super funds are in live discussions with financial regulators over Anthropic’s powerful new model Mythos, with the Claude maker having openly warned that Mythos has the power to circumvent existing cybersecurity defences.

The AI market leader last week granted 40 US companies early access to Mythos to give them a headstart in securing their systems before the model is released more widely.

While early access to Mythos has not been granted in Australia, both APRA and ASIC confirmed to Capital Brief that they have been extensively engaging with the big banks and other market participants behind closed doors as they look to shore up their defences.

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Market movers

Shares in Westpac fell on Tuesday after Australia's second-largest bank said war-driven interest rate swings had weighed on its markets business and prompted it to set aside additional funds to cover potential loan losses.

The quick sync

• Australians want distance from Trump as support for the US alliance collapses, new Capital Brief/DemosAU poll shows. (Capital Brief)

• Clean Slate Clinic raises $4.3m to expand its virtual alcohol detox model to the UK. (Capital Brief)

• Firmus and Sharon AI are rattling toward ASX floats with big valuations, but public investors may be less willing to overlook the gaps in their narratives. (Capital Brief)

• Qantas faces a $500m earnings hit and analysts say higher fares and more flight cuts are still to come. (Capital Brief)

• Australia risks ceding a $24b annual digital finance opportunity to faster-moving rivals unless industry and government coordinate now, writes Talis Putnins. (Capital Brief)

• Illicit tobacco is set to drain $65b from Australia's budget by decade's end as experts warn enforcement alone cannot fix the problem. (Capital Brief)

Trading floor

M&A

• Nvidia denies acquisition rumors, sending Dell and HP shares down after earlier surge. (Capital Brief)

• Angus Aitken increases stake in ARN Media amid Kyle Sandilands legal dispute. (AFR)

• Shell in talks to sell South African fuel stations to ADNOC for about USD1b. (Reuters)

• Yancoal to acquire 80% stake in Kestrel coal mine for up to USD2.4b. (Capital Brief)

• Goldman Sachs private credit fund to sell USD500m bond to fund portfolio activity. (Bloomberg)

• Potentia Capital’s Storypark buys Xap to expand its edtech and childcare software platform. (AFR)

• Microsoft takes over OpenAI-linked Norway data centre capacity to expand AI infrastructure. (Bloomberg)

• Amazon to acquire Globalstar for USD11.6b to boost satellite internet ambitions. (Capital Brief)

• Ashurst and Perkins Coie approve merger to form $3.9b global law firm. (AFR)

• Caterpillar to acquire electric tractor startup Monarch in push into autonomous agri-tech. (Bloomberg)

Capital Markets

• ECB president Lagarde warns Iran war is straining the global economy and rules out an early exit. (Bloomberg) (Bloomberg)

• Westpac boosts provisions amid geopolitical risks, flags $75m hit from RAMS sale. (Capital Brief)

• Cleanaway lowers FY26 outlook on rising costs and weaker activity, sending shares down. (Capital Brief)

• BlinkLab raises funds to support clinical trials for its smartphone diagnostic platform. (AFR)

• Future Fund to cut costs and review jobs as part of efficiency drive. (Capital Brief)

• Cuscal launches equity raise to fund Paymark acquisition in New Zealand. (AFR)

• Qantas trims flights amid fuel cost pressure, sending shares lower. (Capital Brief) (Capital Brief)

• Neurizon launches $11.3m shortfall raise after weak uptake of rights issue. (AFR)

• Humm Group founder Andrew Abercrombie has secured a temporary pause on forced share sale pending review. (Capital Brief)

• Consumer sentiment plunges amid fuel price spikes and cost-of-living stress. (Capital Brief)

• Illegal tobacco market threatens $65b budget hit and weakens enforcement efforts. (Capital Brief)

• Dual-track IPO and sale strategies are making a comeback as ASX listing conditions improve. (AFR)

• Australia must act quickly to seize a $24b digital finance opportunity. (Capital Brief)

• SiteMinder rolls out AI tools amid steep share price decline and tech sector recovery. (AFR)

• Business confidence sinks to pandemic-era lows after Iran war impact. (Capital Brief)

• Armaguard delays regulator submission of cash distribution pricing model amid cost concerns. (AFR)

• Firmus and Sharon AI surge ahead of IPOs amid AI chip boom but face investor scepticism. (Capital Brief)

• Kelly+Partners CEO hit with margin calls after pledging shares amid stock decline. (AFR)

• Boeing beats Airbus in Q1 deliveries, signalling continued recovery momentum. (Bloomberg)

• Telix Pharmaceuticals raises USD550m convertible notes to refinance debt at lower cost. (Capital Brief)

• Domain rolls out drone-powered 3D property listings to boost competitiveness in real estate classifieds. (AFR)

• JPMorgan Q1 profit jumps 13% on record trading revenue, despite cautious outlook. (Capital Brief)

• Westpac lifts bad debt buffers as fuel costs and market volatility pressure earnings. (AFR)

• Gucci sales fall as recovery under Kering remains slow amid weak luxury demand. (Bloomberg)

• IMF cuts global growth forecast to 3.1%, warns Middle East war could trigger downturn. (Capital Brief)

• Chinese steel mills relax restrictions on BHP iron ore purchases after months-long dispute. (AFR)

• Citigroup Q1 profit jumps 42% on strong trading, lifting shares to post-crisis highs. (Capital Brief)

• Pay.com.au delays IPO and raises $20m privately amid market volatility. (The Australian)

• Tory Burch plans USD700m loan to buy back General Atlantic stake. (Bloomberg)

• BlackRock profit jumps 46% on record ETF inflows despite private credit outflows. (Capital Brief)

• Lufthansa pilots call two more strike days amid ongoing dispute over pensions and working conditions. (Bloomberg)

• Clean Slate Clinic raises $4.3m to expand virtual alcohol addiction treatment. (Capital Brief)

• EQT plans dual ASX/NZX IPO of Metlifecare amid strong retirement sector demand. (The Australian)

• Banks and regulators warn Anthropic’s Mythos AI model could pose cybersecurity risks to financial system. (Capital Brief)

• US Treasury seeking access to Anthropic’s Mythos to find flaws. (Bloomberg)

• PwC plans overhaul of global consulting business. (FT)

• Trump Jr and Conor McGregor's Aussie MMA firm pitch to train the US military. (Bloomberg)

VC 

• Caruso raises $9.3m at $80m valuation in fintech funding round. (AFR)

• DryFlow Magnetics reopens seed raise to scale waterless iron ore processing tech. (Startup Daily)

• Altman-backed Glydways raises USD170m to expand robocar network and eyes further funding. (Bloomberg)

People moves

• Federal Reserve chair nominee Kevin Warsh discloses $100m+ wealth and SpaceX, Polymarket stakes. (Capital Brief)

• Renault to cut up to 20% of engineers in cost drive to stay competitive against Chinese rivals. (Bloomberg)

• Infinity Pharmacy founder Ameet Jeraj dies at 45 amid company’s administration and sale process. (AFR)

• Disney to cut 1,000 jobs in first layoffs under new CEO amid cost-cutting push. (Bloomberg)

• BP’s new chief executive to overhaul company into two units. (FT)

• Lucid Names CEO as Saudi PIF, Uber commit another USD750m. (Bloomberg)

The watercooler