☕️ Heartburn

Markets are digesting the potential of a hard landing.

Good morning.

Soaring bond yields have introduced some market volatility this week as investors and households brace for “higher for longer” interest rates.

US share markets bounced overnight, likely setting the ASX up for a good day. But there’s more to the story than one-day equity moves.

The bond market has delivered a plot twist to the soft landing story that has underpinned a rally in equities this year- that central banks could avoid breaking something even as they rapidly lifted rates.

Can they really? Who knows. But it’s something the market may not be taking on faith any longer.

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

LOI Subscriber #TBD

MARKET MOVERS

Market News: What is Gina Rinehart playing at?

Australia’s richest person has upped her stake (again) in Liontown Resources, bringing her ownership in the company to nearly 15% and making her the second largest shareholder.

But as the lithium explorer continues to be courted by US battery giant Albemarle, Rinehart’s intentions remain unclear. Is she looking to block the sale or does she just want a seat the table? Whichever it is, we expect she’ll have plenty to say.

Together with Stake | Invest on Wall St and the ASX

THE QUICK SYNC

  • America’s biggest airlines are searching for fake jet-engine parts (WSJ)

  • GM has secured a new US$6 billion credit line as it braces for further strikes. (CNBC)

  • The oil price has dropped 5% overnight as forecast demand weakens. (Reuters)

  • Brookfield is set for a showdown with Origin shareholders (Capital Brief)

  • Ford hybrids take off to push third quarter sales up (WSJ)

TRADING FLOOR

M&A:

  • Octopus Investments Australia has purchased Queensland's largest planned battery project, known as Blackstone. (AFR)

  • Westpac has abandoned its intentions to sell off its businesses in Fiji and Papua New Guinea. (Capital Brief)

  • Temasek taps Goldman Sachs to seek a purchaser for its 40% stake in Jemena. (AFR)

  • WiseTech Global has acquired MatchBox Exchange, a platform enabling logistics firms to recycle and exchange shipping containers. (BNA)

  • Smart Energy is actively seeking an investor to support its rapid business expansion. (AFR)

  • MinterEllison acquired Wells Advisory to establish a comprehensive legal and advisory higher education practice. (AFR)

  • TPG Telecom and Vocus Group are anticipated to extend their discussions regarding the potential sale of approximately $6bn in assets, even though the exclusive due diligence period has ended. (AFR)

  • A national private hardware products supplier has acquired a new standalone office and warehouse in the competitive Dandenong South industrial area for $31.5m. (SMH)

Capital Markets:

  • Karoon Energy is in discussions with international banks to expand its loan facility within the next few weeks. (Capital Brief)

  • Masons Stevens is advancing its efforts to list by the year's end. (AFR)

  • Midwest Lithium is poised to debut on the ASX by the end of the month after successfully concluding its IPO at the lower end of the price range. (The Australian)

  • Tasmea is in discussions with institutional investors in preparation for a possible listing of over $400m, potentially as soon as next month. (The Australian)

VC:

  • Eden Brew has secured $25m in Series A funding backed by Bernard Fanning and Angus Stone. (BNA)

  • Fortescue is set to become the primary investor in the Series C funding round of the U.S. green hydrogen startup, Electric Hydrogen. (Capital Brief | The Australian)

Others:

  • Canva is betting big on AI and enterprise. (Capital Brief)

  • Mills Oakley has added four new partners to its ranks. (AFR)

  • Barrenjoey, UBS, and Macquarie are vying for a leading position in the equity capital markets league table following a Q3 fundraising surge. (AFR)

  • Zenith has downgraded VGI Partners Global Investments from a "Recommended" rating to "Approved." (AFR)

  • Newcastle's $100m West Village project has received approval to move forward. (BNA)

  • Qantas is encouraging the government to maintain its stance on rejecting Qatar Airways. (SMH)

  • Slater and Gordon’s CEO John Somerville is handing over the reins to the current chief client officer Dina Tutungi. (The Australian)

  • Analysts hold divergent views on the future trajectory of oil prices for the next year or beyond. (The Australian)

THE WATERCOOLER