☕️Lip-Bu Coup

Good morning.

Australian government-backed PsiQuantum has appointed Intel CEO Lip-Bu Tan to its board of directors as the window for meeting plans to build the world’s first commercially useful quantum computer in Brisbane by 2027 narrows, Capital Brief reports.

Tan was also an early investor and adviser to PsiQuantum from at least 2021, describing the tech they’ve developed as “exceptional, and their focus on fault-tolerant systems that can be manufactured at scale using the semiconductor industry sets them apart.”

In April 2024, the federal and Queensland state governments invested about $940 million in the company to bring its APAC headquarters to Brisbane and the company has committed to building the world’s first fault-tolerant quantum computer in Brisbane by the end of 2027, although construction is yet to begin.

🏆 LOI Subscriber #TBD

Market movers

Shares in Woolworths plunged 7.8% on Thursday after the company warned that rising fuel costs linked to the Iran war would drag on full-year earnings, with Australian food EBIT growth now expected to come in at the mid to high single-digit range rather than the upper end of that guidance.

The quick sync

• CBA and Macquarie opt out of industry push for free regional ATMs. (Capital Brief)

• Canva's new AI competency framework sets the bar staff must clear as headcount growth slows to 5%. (Capital Brief)

• Blackbird's Rick Baker warns Australia risks missing AI wealth by defaulting to data centres over software. (Capital Brief)

• Australia's revamped media bargaining code risks rewarding the same incumbents it failed to fix five years ago, writes Scott Purcell. (Capital Brief)

• Rebel Wilson held her own against a relentless cross-examination in her Federal Court defamation trial this week. (Capital Brief)

• Australia has abandoned the fiscal rules that built its prosperity and risks leaving the next generation with the bill, writes Paula Gadsby. (Capital Brief)

Trading floor

M&A

• DCC rejected a USD6.7bn takeover bid from KKR-led consortium as undervaluing the company. (WSJ)

• IFM Investors pursues a $7b project bid, boosting Jarden deal activity. (AFR)

• KKR explores selling Flora Food Group at a $10b valuation. (Reuters)

• Apollo Global Management, Blackstone, and KKR compete for a stake in Shell’s LNG Canada project. (Reuters)

• Danone becomes a potential target in a deal involving TPG Capital. (AFR)

• Marathon Digital Holdings to acquire an Ohio gas plant for $1.5b to diversify operations. (Reuters)

• Bill Ackman buys shares in Pershing Square Holdings on its first trading day. (Bloomberg)

• Lazard to buy private capital advisory group in USD575m deal. (FT)

Capital Markets

• Apple’s total second-quarter revenue beat estimates. (Bloomberg)

• Alphabet‘s Google Cloud posts record revenue growth. (Capital Brief)

• Meta shows rising AI spending and child safety concerns. (Capital Brief)

• Amazon’s cloud revenue beats expectations amid AI demand. (Capital Brief)

• A.H. Beard collapse highlights pressure on Australian manufacturers. (Smart Company)

• APRA warns financial institutions are lagging on AI risk preparedness. (Capital Brief)

• Capstone Copper boosts Q1 earnings with record production. (Capital Brief)

• DAZN invests USD100m in ViewLift. (WSJ)

• Leonardo AI founders invest proceeds into a new venture capital fund. (AFR)

• Stockland reaffirms FY26 guidance on strong leasing demand. (Capital Brief)

• South32 blames tariffs for cost blowout at its US mine. (AFR)(Capital Brief)

• SoftBank secures broader bank support for a USD40b loan tied to an OpenAI stake. (Bloomberg)

• Sydney considers banning short-term rentals like Airbnb. (Smart Company)

• Imricor Medical Systems launches a $60m capital raising. (AFR)

• Mineral Resources shares rise after upgrading production guidance. (Capital Brief)(AFR)

• PwC accused of overlooking risk signals in Corporate Travel audits. (AFR)

• JBS faces a $268m tax bill following an audit despite strong profits. (AFR)

• Regis Healthcare tracks toward the top end of earnings guidance. (Capital Brief)

• AirTrunk invests $4.2b in Malaysia expansion. (AFR)

• Energy stocks climb as oil prices hit wartime highs. (Capital Brief)

• Boaz Weinstein wins a dispute over a fund holding a SpaceX stake. (WSJ)

• Augustus Minerals reports strong gold results in Western Australia. (SMH)

• Sarytogan Graphite secures European funding for its Kazakhstan project. (SMH)

• New South Wales launches a $4m program to support women startup founders. (Smart Company)

• Stellantis returns to profit driven by strong Jeep and Ram sales. (Bloomberg)

• Puma posts Q1 profit above expectations. (Reuters)

• Australia’s AI push may be too focused on data centres instead of higher-value opportunities. (Capital Brief)

• Alceon advances a $250m private capital strategy under new leadership. (AFR)

• Banks’ bad debt provisions may be weaker than they appear. (AFR)

• Siren Gold expands a large antimony-gold system in New Zealand. (SMH)

• Airwallex losses widen despite revenue surpassing $100m. (AFR)(The Australian)

• Nine Network unveils a plan to make TV news more efficient and cost-effective. (AFR)

• Dalaroo Metals gains full control of a Greenland rare earths project. (SMH)

• Xpansiv seeks up to $150m in a new funding round backed by Blackstone. (AFR)

• EMR Capital’s Ravenswood gold mine nears insolvency/receivership. (AFR)

• Cliff Obrecht discusses surviving amid AI-driven tech layoffs. (Capital Brief)

• BNK Banking Corporation achieves record margin performance. (SMH)

• SoftBank plans to create and list a new AI company in the US. (Bloomberg)

• State governments oppose Big Bash League privatisation plan led by Todd Greenberg. (AFR)

• Infini Resources begins drilling in a Canadian uranium region. (SMH)

• Hershey beats expectations by raising prices. (Bloomberg)

• Prada meets sales expectations as growth slows at Miu Miu. (Bloomberg)

• Mastercard beats estimates on stronger consumer spending. (Bloomberg)

• Merck & Co. posts a quarterly loss due to charges despite rising sales. (Reuters)

• Eli Lilly beats Q1 estimates on strong drug sales. (Capital Brief)

• European Central Bank and Bank of England hold rates steady, following the Federal Reserve. (Capital Brief)

• United States GDP growth misses expectations while core inflation rises. (Capital Brief)

• Australian house price growth slows to its weakest pace since January 2025. (Capital Brief)

• Iona Gas Storage plans major expansion to support future gas demand. (AFR)

• Citigroup scales back its physical metals trading business. (Bloomberg)

• KKR prepares a new USD10b AI-focused company led by a former AWS executive. (Bloomberg)

• News organizations oppose use of web archives for AI training. (Bloomberg)

• Commonwealth Bank of Australia and Macquarie Group withdraw from a regional ATM initiative. (Capital Brief)

VC 

• New AI startup called Flourish aims for a USD2.5B valuation to build energy-efficient AI. (Bloomberg)

• 137 Ventures raises USD700m ahead of a SpaceX-linked IPO. (Bloomberg)

People moves

• ASX appoints Darren Yip as interim CEO. (Capital Brief)

• Super Retail Group names Sarah Hunter as CFO. (Capital Brief)

• Gadens hires eight partners from rival firms. (AFR)

• Puma SE appointed Mark Langer as its new CFO and posted slightly strong Q1 results amid its turnaround. (Bloomberg)

• Domino's Pizza Enterprises chairman Jack Cowin challenges US parent over royalties. (AFR)

• Fair Work Commission upholds dismissal over excessive phone use. (Smart Company)

• Australian Retirement Trust’s chief risk officer Darryl Burke has left after about a year in the role. (AFR)

• Apple’s earnings call is being watched for signals on incoming CEO John Ternus’ strategy. (Bloomberg)

• Peter Freedman loses another director from his company’s board. (AFR)

• Eric Trump exits public leadership role in a troubled fintech venture. (Bloomberg)

• Warren Buffett steps aside as Greg Abel takes over leadership of Berkshire Hathaway. (Reuters)(Bloomberg)

• JPMorgan Chase hires Chris Mihok for its banks team. (Bloomberg)

• Lip-Bu Tan joins the board of PsiQuantum. (Capital Brief)

The watercooler