☕️ Glass houses

Elon Musk and Tesla are under investigation.

August 31, 2023

Good morning.

US regulators are investigating whether Tesla used company funds for the personal benefit of Elon Musk as part of an internal secret project.

The SEC and Department of Justice are both looking into the world’s richest man and a claim that the EV company was building a glass house for him.

The “dramatic” glass residence was intended to be built next to Tesla’s Austin gigafactory. What’s that old saying again?

LOI Subscriber #TBD

MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Mining hopeful Chalice Mining lost a quarter of its value in a single session yesterday after making the market uneasy with its accounting.

Chalice sits on a bonanza of nickel, copper and platinum but says it will cost more to mine and the be slower to extract than anyone expected.

With higher commodity prices baked into its estimates, not even the promise of paying back the capex within two years could soothe investors.

THE QUICK SYNC

  • Chinese property developer Country Garden warns it could default after posting a US$7 billion loss. (CNN)

  • Imports of Russian gas into the EU have jumped 40% since the invasion of Ukraine. (The Guardian)

  • The Bank of England will require the UK Treasury to backstop higher than expected bond losses to prop up economy. (CNBC)

  • China is approving its first wave of generative AI for public rollout, opening the door for local tech companies like Baidu. (Bloomberg)

  • Markets are pricing in another European rate rise after sticky inflation reported in Germany and Spain. (Financial Times)

TRADING FLOOR

M&A:

  • Roc Partners has acquired the nation's second-largest egg supplier, Pace Farm, in a deal estimated at around $350m. (AFR)

  • Chinova Resources, a Queensland-based company focused on gold and copper, is up for sale with a price tag of $300m. (Capital Brief)

  • Premier Investments purchased a batch of 24.6 million Myer shares. (AFR)

  • Accolade Wines has sold its House of Arras sparkling wines brand, along with the associated vineyards, as well as the Bay of Fires winery and cellar door in Tasmania. (AFR)

  • Mighty Craft is planning to sell its star performer Better Beer as part of a divestment program to reduce debt. (BNA)

  • Hume Partners has acquired an Avondale Heights childcare centre for approximately $8m. (SMH)

  • Pacific National is reportedly considering the acquisition of Brookfield's Linx Cargo Care business. (The Australian)

  • Several major shareholders of Orora are reportedly voicing their worries regarding the company's acquisition of Saverglass from The Carlyle Group. (The Australian)

  • Paine Schwartz Partners is speculated to have cooled on its $2.3bn acquisition of Costa Group. (The Australian)

Capital Markets:

  • Seven Group Holdings had UBS's equities desk gather potential buyers for a stake of up to 3% in Boral Limited. (AFR)

  • Phoenix Lithium has enlisted Macquarie Capital to seek out a strategic partner. (AFR)

  • Bermuda-based Duncan Saville has invested in Listing Loop. (AFR)

  • 29Metals' raised $151m through Macquarie Capital and Jarden, surpassing initial expectations. (The Australian)

VC:

  • Till Payments is facing difficulties, adding to a series of local payment companies facing uncertainty. (AFR)

Others:

  • Burger King faces a lawsuit over allegations of undersized Whopper burgers. (SMH)

  • Clean energy visionary Richard Turner takes on the role of Advisory Board Chair at Coraggio. (BNA)

  • CVC Capital Partners has recently made a significant hire as part of its return to Australian M&A. (AFR)

  • Flight Centre achieves a $70m profit, surpassing expectations for its turnaround, and in response, rewards investors. (BNA)

  • Sectors like fashion, clothing, footwear, and jewellery within specialty retail are experiencing a robust recovery from the challenges posed by COVID-19. (SMH)

  • ASIC cautions banks against neglecting stressed borrowers. (SMH)

TOGETHER WITH SWYSH

Need a last minute Father's Day gift? Surprise Dad with a personalised video message on Swysh.

There's still time to get Dad a Father's Day gift that he'll remember with a personalised video message from one of his favourite sports stars on Swysh. With superstars like Reece Walsh and Scott Pendlebury or Aussie legends like Michael Clarke or Joel Selwood available, you'll be sure to find a star that your Dad will love.

Booking is quick and easy. Simply visit Swysh, find Dad's favourite star and provide your instructions for the video. Swysh will take care of the rest!

In honour of Father's Day, 10% of the price of every Swysh video message is being donated to Movember to help fund men's health programs like Family Man.

THE WATERCOOLER