☕️ Lending Vacuum

Good morning.

National Australia Bank and Westpac are actively reviewing their lending to property investors using trusts and company structures to boost their borrowing power, Capital Brief reports, after Macquarie ceased lending to trusts and companies and after Commonwealth Bank tightened its rules around the practice.

With the big four banks all in retreat, to varying degrees, from one of the riskiest corners of the property investing market, second-tier lenders may begin emerging to fill the void.

Brokers say relatively recent entrant, Apollo, which is co-owned by Athena, is well-placed to write more volume, but a rapidly changing lending environment may raise the stakes for those borrowers who will look to refinance down the track.

🏆 LOI Subscriber #TBD

Market movers

Shares in online retailer Temple & Webster crashed 33% on Wednesday, marking its steepest drop in a decade after reporting first-half sales growth of 18% and even as it reaffirmed its full-year forecast. Investors ran for the exits as the result came in below market expectations and fell short of the company’s earlier guidance.

The quick sync

• US criticism of Canada’s streaming laws intensifies pressure on Australia as Labor’s quotas face Senate and trade scrutiny. (Capital Brief)

• Ted O’Brien tied the Coalition’s net zero reversal to its AI pitch, escalating the debate over energy, climate and the economy. (Capital Brief)

• Blackbird’s markdowns of Culture Amp and SafetyCulture show how market pressure is reshaping startup valuations. (Capital Brief)

• Crypto hoarders dump tokens as shares tumble. (FT)

Trading floor

M&A

• KKR seeks buyers for Laser Clinics’ ANZ business, its revenue-heavy division. (AFR)

• Northwest Healthcare Properties has signed an agreement to transfer operating rights of 12 Healthscope hospitals to Calvary Health. (AFR)

• Everlight Radiology seeks $1b sale, targeting UK and European PE buyers. (The Australian)

• Macquarie’s $11.6b Qube bid backed by some investors despite ASX exit concerns. (AFR)

• National Storage REIT got a $4b takeover offer from Brookfield and GIC and is in a trading halt pending a deal announcement. (Capital Brief)

• Barrenjoey grows via Trefor Credit Fund acquisition and diversified investments in its fifth year. (The Australian)

• Buyers eye Saint-Gobain’s Hebel unit, potentially worth $250m. (AFR)

• Naver buys Upbit operator Dunamu in a $10.3b deal to deepen its role in South Korea’s payments and crypto markets. (Capital Brief)

Capital Markets

• Fisher & Paykel lifts FY26 guidance after 39% H1 profit jump, boosting shares. (Capital Brief)

• Eucalyptus nears $1.4b valuation after $190m funding round. (AFR)

• Industry super funds, led by Aware Super, spend heavily on marketing despite regulator warnings. (AFR)

• Tyro Payments keeps its FY26 guidance as Q1 payment volumes rise 6% and leadership transitions to a new CEO. (Capital Brief)

• SkinKandy targets a $400m IPO, following Lovisa’s ASX success. (AFR)

• ASIC is penalising EOS and suing ex-CEO Ben Greene for delaying disclosure of a major revenue downgrade. (Capital Brief)

• Zoë Foster Blake’s babycare brand Gro-To will close as the company shifts focus to its main Go-To skincare range. (Smart Company)

• Ruminant Biotech raised $15m to roll out its cattle methane-reduction tech and expand globally. (Capital Brief)

• Australia lags Asia by ~18 months in data centre approvals, says AirTrunk. (AFR)

• Harvey Norman’s early FY26 sales rose 9.1% across all markets. (Capital Brief)

• Homart Pharmaceuticals plans IPO, targeting $300m valuation post-Blackmores buyout. (The Australian)

• Economists say the new monthly CPI measure is volatile and confusing, making RBA decisions harder. (Capital Brief)

• Beach Energy eyes co-investment in Santos’ $3.6b Narrabri gas project. (AFR)

• Blackbird’s write-downs for Culture Amp and SafetyCulture reflect market shifts, not poor performance. (Capital Brief)

• RBA uncertain if the neutral cash rate is rising amid fiscal, productivity, and global financial shifts. (Capital Brief)

• US jobless claims unexpectedly fell to their lowest level since April, showing employers are holding on to workers even as hiring slows. (Capital Brief)

• Australia’s emissions fell 2.2% last year, mainly due to more renewable energy replacing coal, though rising transport emissions partly offset the gains. (Capital Brief)

• Big banks are tightening or cutting lending to property investors using trusts due to rising risk. (Capital Brief)

• NYC comptroller urges city pensions to pull USD42b mandate from BlackRock over climate. (FT)

• Tether’s assets get junked by S&P. (FT)

• ‘Steroid Olympics’ organiser to go public in USD1.2b Spac deal. (FT)

VC 

• A new $55m Pacific Channel fund will invest in early-stage Australian deep-tech startups. (Capital Brief)

• Ochre Ventures raises $30m first close for First Nations-focused VC fund. (Startup Daily)

• Sea Forest, an Australian livestock feed startup using seaweed to reduce methane emissions, is valued at $112 million ahead of its ASX listing. (Smart Company)

People moves

• CBA hires Ranil Boteju from Lloyds as chief AI officer for 2026. (Capital Brief)

• Eley Griffiths’ small-cap fund manager Nick Guidera departs after nine years. (AFR)

• Optus CEO Stephen Rue goes off-grid in Antarctica amid Triple Zero criticism. (AFR)

The watercooler