☕️ Rate wait

Good morning.

The Fed's latest meeting left investors with a sense of cautious unease. The Jerome Powell-led central bank unanimously held rates steady, but the omission of any mention of inflation progress raised eyebrows, hinting at a longer wait for potential cuts.

Markets reacted predictably—stocks slipped, and Treasury yields climbed as traders recalibrated expectations for the year ahead.

At the press conference, Powell struck a less hawkish tone, deftly sidestepping questions about Donald Trump’s push for lower rates, his administration’s plans to shrink the federal workforce, his strategy to curb inflation by expanding energy production and his tariff agenda.

His main message was, the bank feels “like we don't need to be in a hurry to make any (interest rate) adjustments,” he said.

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Market movers

Star Entertainment’s $60m Sydney asset sell-off sparked an 8.7% share surge on Wednesday. Financial woes persist, of course, with shares trading at 13 cents, down from about $3 in 2022.

The quick sync

• DAZN’s $2.2b loss hasn’t slowed its sports rights spree, with the Foxtel buyer banking on big bets and billionaire backing to fuel its global push. (Capital Brief)

• Gold traders, spooked by Donald Trump’s tariff threats, have shifted billions in bullion to New York, choking London’s supply and leaving BoE vaults struggling to meet demand. (FT)(Capital Brief)

• DeepSeek's AI breakthrough rattled Nvidia’s stock, but Australian investors argue it could drive more chip sales, not fewer—validating Jensen Huang’s strategy. (Capital Brief)

• ANU cleared a student of making a Nazi gesture, but not before Indonesia’s ambassador Siswo Pramono stepped in to defend her against explosive accusations. (Capital Brief)

Trading floor

M&A

• Star Entertainment is selling Sydney assets to Foundation Theatres for $60M amid financial struggles. (Capital Brief)

• Fabric Group seeks growth partner as PwC markets $20M-revenue firm. (AFR)

• DroneShield wins $11.8M APAC contracts for countering Chinese drones. (Capital Brief)

• Brennan pulls out of AUCyber takeover after 5G Networks ups bid. (BNA)

• DAZN posts $2.2B loss amid global expansion and Foxtel acquisition. (Capital Brief)

• Sigma shareholders approve $5.5B merger with Chemist Warehouse. (Reuters)

• Publicis Groupe acquires Atomic 212° to expand in Australia. (BNA)

• Oaktree revives interest in Star Entertainment amid financial struggles. (AFR)

• TPG partners with Optus to target Telstra customers and boost mobile services. (AFR)

Capital Markets

• Boss Energy's Honeymoon uranium project is meeting targets after its 2025 production launch. (Capital Brief)

• Fat Prophets LIT to be wound up after investor backlash. (AFR)

• NRFC invests $32M in Harrison.ai to boost AI medical diagnostics and support expansion. (Capital Brief)

• Mosaic Brands to close Millers and Noni B, cutting 900 jobs. (AFR)

• Alibaba unveils Qwen2.5 Max, escalating China’s AI race against DeepSeek. (Capital Brief)

• Review launched into $940M government deal with PsiQuantum for quantum computer. (Startup Daily)

• HPX Group launches ESG consulting business, Materra Consulting. (AFR)

• Microsoft and OpenAI probe potential data theft by DeepSeek-linked group. (Reuters)

• Donald Trump-backed Truth.Fi to invest $250M in Bitcoin, sparking ethics concerns. (Capital Brief)

• Merricks Capital’s flagship fund posts first negative return in 5 years due to Sydney office loans. (AFR)

• Super Bowl ads are pricier than ever, packed with AI, big-name stars, and laughs—while Hollywood sits this one out. (Bloomberg)

VC

• LaunchVic offers grants to attract VC and angel investors to Victoria. (Capital Brief)

• MyGigster raises $1.1M to help gig workers manage finances. (Startup Daily)

• SoftBank eyes a US$4b bet on Skild AI, backing its vision of a ‘brain’ for robots in a high-stakes push into AI-powered automation. (FT)

People moves

• Opera Australia CEO Fiona Allan resigns amid financial challenges and leadership changes. (The Australian)

• Dan Loeb is taking on Ron Burkle over Soho House’s US$1.7b buyout, slamming the deal as a giveaway and demanding a fairer sale. (WSJ)

• Mark Zuckerberg eyes Washington DC real estate in a bid to cosy up to Donald Trump and shape tech policy. (FT)

• ASIC launched a formal investigation into Mineral Resources and its founder Chris Ellison, issuing Section 19 notices that compel him and CFO Mark Wilson to face questioning. (AFR)

The watercooler