☕️Pull-out Method

Good morning.

Destination NSW pulled funding for SXSW Sydney after the festival's American owner Penske Media Corporation refused to offer a discount on the licensing fee, a source with direct knowledge of the issue told Capital Brief.

While SXSW’s Sydney tentpole was first pitched as a landmark moment for Australia's startup and tech sector, the event provoked a more ambivalent response than the hype suggested.

And when news of the cancellation broke yesterday, the public response on Reddit was largely… unsympathetic…while others were outright jubilant.

🏆 LOI Subscriber #TBD

Market movers

Shares in Treasury Wine Estates fell Thursday after Citi downgraded the stock to “sell”, warning fresh uncertainty around its key US distributor could weigh on earnings in the second half of FY26.

The quick sync

• Big banks say Meta is allowing Facebook groups to sell bank accounts used in scams. (Capital Brief)

• Microsoft’s AI deal with the ACTU highlights tech’s political pragmatism and unions’ fight for influence. (Capital Brief)

• 4DMedical raised $150m to speed US growth after regulatory wins and strong investor demand. (Capital Brief)

• US, Taiwan reach deal to cut tariffs, boost investment. (Bloomberg)

Trading floor

M&A

• ACTU–Microsoft AI deal helps ease fears about job losses. (Capital Brief) (Capital Brief)

• Rio Tinto and BHP plan joint extraction of 200m tonnes of iron ore. (Capital Brief)

• Hanes puts Aussie brands Bonds, Bras N Things, Sheridan, and Berlei up for sale. (AFR)

• VitrafyLife Sciences rallies after signing cryopreservation deal with IMV Technologies. (Capital Brief)

• Rio Tinto and Glencore consider ASX spin-off for coal amid $300b merger. (AFR)

• Cosette to appeal court ruling on Mayne Pharma takeover. (Capital Brief)

• TPG eyes Melbourne bus buy as Kinetic targets Dysons. (AFR)

• Boston Scientific to buy Penumbra for USD14.5b, boosting cardiovascular device portfolio. (Capital Brief)

• RP Infrastructure merges with Donald Cant Watts Corke to form $150m national consultancy. (AFR)

• US shale producers Devon Energy and Coterra Energy in merger talks. (Reuters)

Capital Markets

• Ryman Healthcare’s Q3 retirement living sales fell 5%. (Capital Brief)

• Household spending rose 0.7% in December, lifting rate hike concerns. (Capital Brief)

• Sass & Bide will pause operations as Myer works on reviving the brand. (AFR)

• The US slapped a 25% tariff on Nvidia chips over national security concerns. (Capital Brief)

• Waymo eyes Australia launch, talks with Chinese carmaker amid global robotaxi expansion. (AFR)

• Catalyst Metals shares climbed on record quarterly gold output. (Capital Brief)

• People First Bank breaks 2022 pledge, closing 15 branches and three agencies. (The Australian)

• Ora Banda shares lift on expanded high-grade mineralisation. (Capital Brief)

• Greensill Bank sues UK for $659m over cancelled COVID-era loan guarantees. (AFR)

• Port Hedland sets December iron ore shipment record at 50.9m tonnes. (Capital Brief)

• Choice The Discount Store to double size, rebrand 44 Cheap as Chips stores. (AFR)

• TSMC ramps up 2026 spending to USD56b amid booming AI demand. (Capital Brief)

• Amazon Web Services to source Rio Tinto’s bioleached copper for US data centres. (AFR)

• BlackRock assets reach USD14t in Q4, profit declines. (Capital Brief)

• Gas reservation scheme delays southeast LNG imports, but southern states still need supply. (AFR)

• Goldman Sachs equity traders hit USD4.31b Q4 record. (Capital Brief)

• Morgan Stanley Q4 profit up 18% on wealth inflows and trading gains. (Capital Brief)

• Rental housing, data centres, retail, and CBD offices top bankers’ 2026 property picks. (AFR)

• US jobless claims drop to 198K, layoffs stay low. (Capital Brief)

• SXSW Sydney ends after NSW funding pulled over licensing fee dispute. (Capital Brief)

• Big four banks slam Meta for Facebook “mule” accounts used in scams. (Capital Brief)

• Ford, BYD in talks for hybrid vehicle battery deal. (WSJ)

• Goldman Sachs explores prediction market opportunities, CEO Solomon says. (Bloomberg)

• Private credit drops safeguard to win deals on Wall Street terms. (Bloomberg)

• Carlyle Group says wealth business has doubled since 2023. (Bloomberg)

• Netflix inks global deal to stream Sony Pictures' films after theatrical window. (Reuters)

VC 

• Sendle investor Touch Ventures wrote down its $36m stake to zero before the startup’s sudden closure. (Smart Company)

People moves

• CBA loses top home loan staff and star manager as lenders jump to brokers and rivals. (AFR)

• Generation Development lifts CEO Grant Hackett’s pay by about $1m. (Capital Brief)

• Ex-HMC energy transition head Angela Karl to join GIP. (AFR)

• Sonic Healthcare’s new CEO Jim Newcombe is a doctor, but little is known about him. (AFR)

• Goldman Sachs appoints BlackRock's Lynam as chief credit strategist. (streetinsider.com)

The watercooler