☕️ Yield rebel

Good morning.

The US Fed and Jay Powell’s jumbo rate cut were the equity market’s hero last week. But with the 10-year Treasury yield jumping from 3.64% to 3.73%, it hasn’t exactly eased the pressure on those with a corporate bond hanging over their head.

The bond market doesn’t always play by the Fed’s rules. The sharp move up in yields is being read as investors suspecting the Fed won’t be as aggressive in cutting rates going forward, as well as their demand for more compensation for long-term risk, especially with inflation still lurking and a mountain of Treasury issuance on the horizon.

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Market movers

Tabcorp’s shares soared on Friday as Brett Chenoweth took the chair reins. Jarden analysts kept their 65-cent price target after the announcement, suggesting Chenoweth might just be the house's lucky charm.

Finalising the board and C-suite teams after long-standing CEO and CFO vacancies "should help create much needed clarity," Jarden said.

The quick sync

• Scalare Partners' plan to list on the ASX through a reverse takeover of Candy Club Holdings hit regulatory roadblocks as CEO insists all on track. (Capital Brief)

• Labor eyes TikTok’s US legal battle as the social video platform shuffles local board. (Capital Brief)

• One of the new wave of private credit funds, the Smorgon-backed Arrowpoint Capital, tips private credit yields to hold up despite rate cuts. (Capital Brief)

• BOQ prepares for showdown setting aside $125m to buy out branch owners in an abrupt strategy reversal. (AFR)

• HSBC's exposure to defaulted commercial property loans in Hong Kong surged almost sixfold to more than US$3bn in the first half of this year. (FT)

• The US Fed’s high-rates era handed $1tn windfall to US banks. (FT)

Trading floor

M&A

• Chipmaker Qualcomm has in recent days approached rival Intel for a potential acquisition, according to media reports. (Capital Brief)

• TSMC and Samsung are exploring building major chip-making complexes in the UAE. (WSJ)

• After Regional Express entered administration, its assets, including properties and its fleet of Saab 340 aircraft, are being sold off. (AFR)

• Incitec Pivot is seeking buyers for its fertiliser business, with Elders, Nutrien, and Ridley approached. (The Australian)

• Mercury Capital has purchased a 60% stake in JMC Academy, valued at $150m, continuing its expansion into the education sector. (AFR)

• Rightmove has turned down REA Group's enhanced $11.5bn takeover offer, feeling it undervalues the business. (AFR)

• The Cranlana estate on Toorak’s Clendon Road, which the Myer family has owned since 1921, is the first Melbourne home with a $100m price tag. (AFR)

Capital Markets

• Star Entertainment's refinancing plan announcement may be delayed, with $100m in new funding offered after restrictions on a previous $150m working capital facility. (The Australian)

• Fletcher Building is moving forward with an equity raise of up to $NZ700m, after earlier dismissing such plans, with the price set at $2.40 per share. (The Australian)

• E&P Financial Group is preparing a $10m placement and voluntary buyback as it plans to delist from the ASX, with details awaited by investors. (AFR)

• Affinity Equity Partners has secured the $750m deal to buy Lumus Imaging from Healius, with TPG Capital and Pacific Equity Partners exiting the race. (The Australian)

• Select Harvests is raising $80m through an entitlement offer and placement, driven by record almond sales and favorable crop conditions in California. (BNA)

VC

• None

People moves

• Global X Australia has appointed Alex Zaika as its new CEO after Evan Metcalf's resignation. (AFR)

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The watercooler