☕️MinRes Mess

Good morning.

Two independent directors suddenly departed the Mineral Resources board on Wednesday, and proxy advisors and super funds are demanding answers. Institutional Shareholder Services (ISS), the powerful proxy advisor to super funds and other large fund managers, told Capital Brief the lack of explanation for why Susie Corlett and Jacqueline McGill had resigned raised serious questions about what they had seen internally.

🏆 LOI Subscriber #TBD

Market movers

Zip Co shares jumped 12.5% on Wednesday as its strong Q3 results prompted an earnings upgrade, extending gains to 42% over the past five trading days.

The quick sync

• Australia’s biotech sector sees Trump’s pharma shake-up as a rare opening to attract top talent, secure FDA wins and boost exports—if Canberra moves fast. (Capital Brief)

• Robert French walking away from Hong Kong’s highest court casts a long shadow over the future of foreign judges in a city that has tightened its grip on dissent. (Capital Brief)

• Mineral Resources faces mounting investor pressure to explain shock director exits as governance concerns deepen and support erodes. (Capital Brief)

• Australian quantum startups like Diraq, SQC and Q-CTRL are positioned to ride out Trump’s tariff storm. (Capital Brief)

Trading floor

M&A

• Australian footwear retailer Wittner has entered administration due to rising costs and declining sales, and is seeking a new buyer. (Capital Brief)

• Aristocrat Leisure is in negotiations to acquire Interblock, a leading electronic table gaming company, in a deal potentially worth $1b. (The Australian)

• Equity Story Group is acquiring Baker Young for $4.2m, following a strategic investment from Capital Haus and the appointment of Brendan Gow as executive chairman. (ASX)

• Stonepeak has acquired a 75% stake in IOR as part of its expansion into infrastructure and energy investments in Asia. (The Australian)

• OpenAI is negotiating to buy Windsurf, an AI coding tool, for $3b, marking its largest acquisition to date. (Bloomberg)

• South African billionaire Nathan Kirsh and Public Storage are pushing to take over Abacus Storage Property Trust, but minority shareholders are criticizing their bid for offering an 8% discount to the trust’s underlying assets. (The Australian)

Capital Markets

• Nvidia didn’t warn key customers about US export rules on its H20 chip, triggering a $5.5b charge and share slump. (Capital Brief) (Reuters)

• NSW has approved BHP’s plan to close its Mount Arthur coal mine by 2030, shifting focus to clean energy projects like hydro-electricity. (AFR)

• Dry weather slashes Mercury NZ’s hydro output, prompting a cut to its earnings forecast. (Capital Brief)

• Western Sydney University plans to cut up to 400 jobs to address an $80m deficit caused by declining student demand and increased competition. (AFR)

• Trump launches probe into imported critical minerals, eyes possible new tariffs. (Capital Brief)

• China’s Q1 growth beats forecasts, but US trade war casts shadow. (Capital Brief)

• UK inflation drops more than forecast, boosting hopes for BoE rate cuts. (Capital Brief)

• US retail sales jump in March, boosted by a surge in car purchases ahead of tariffs. (Capital Brief)

• Bank of Canada halts rate cuts amid US tariff uncertainty, prepares for possible action. (Capital Brief)

• BoQ CEO Patrick Allaway will stay for 18 months to drive a digital overhaul, cutting costs and restructuring operations. (AFR)(Capital Brief)

• Australia’s insurers posted a record $6.1b profit in 2024, driven by rising premiums and fewer weather-related claims, marking a significant rebound from previous years of costly disasters. (The Australian)

• Bellevue Gold rebounds as record gold prices lift ASX miners. (Capital Brief)

• A $2m grant will fund Australian researchers to use 3D printing and AI to personalize cancer treatments, especially for rare or difficult cancers. (Smart Company)

• The World Trade Organization cuts 2025 trade forecast, expecting a decline due to Trump’s tariffs and retaliatory measures. (Capital Brief)

• ASIC has transitioned its inquiry into WiseTech Global founder Richard White's share trading and market disclosures from a preliminary review to a formal investigation. (AFR)

• US Fed chairman Jerome Powell warns Trump’s tariff surge threatens inflation control and job growth. (Capital Brief)

• Trump’s tariffs push global trade into reverse, says WTO, with 2025 forecast slashed from 2.7% growth to a 0.2% decline and deeper pain looming if retaliation escalates. (Capital Brief)

• China demands respect and clear terms for trade talks as the Trump administration reportedly moves to box Beijing in by pressuring its trading partners. (Bloomberg)(Bloomberg)

• CBA blocked a $30,000 crypto investment by an experienced accountant, spotlighting growing tensions between scam prevention and financial freedom. (AFR)

• Regal’s Phil King backs bold strategy overhaul after $220m biotech blowup, tipping hedge fund rebound and gold-driven gains. (AFR)

• Australians are ditching US travel plans as Trump’s harsh border crackdowns fuel fear, paranoia and horror stories of detentions and deportations. (AFR)

• UK Supreme Court draws a hard legal line on sex and gender, ruling trans women aren’t ‘women’ under equality law. (Capital Brief)

• Labor edges ahead in the federal election campaign as Dutton stumbles and voter expectations swing sharply towards a hung parliament. (AFR)

VC

• Blackbird backs AI film startup Wonder in $6m round to cut production costs. (Capital Brief)

People moves

• Two Mineral Resources directors, Jacqueline McGill and Susie Corlett, resigned amid governance concerns and legal challenges, including an ASIC investigation and class action lawsuits. (Capital Brief)

• Regal Partners plans to add two executives to its investment committee and limit the size of positions in its listed funds after experiencing a double-digit loss. (AFR)

• WiseTech reappoints founder Richard White to lead innovation, hires Zubin Appoo as chief of staff. (Capital Brief)

• Flynn Group appoints Richard Wallis, ex-KFC executive, to lead regional growth for Pizza Hut and Wendy's in Australia. (AFR)

The watercooler