☕️S(AI)do Maasochists

Good morning.

The unusual step taken by industrial conglomerate Maas Group to agree to a billion-dollar sale of its core construction materials business without using any financial advisers as part of a radical pivot into AI infrastructure, perhaps unsurprisingly, prompted shares in the ASX small cap to plummet nearly 25% on Thursday.

But despite the brutal market response, one of Maas' biggest investors Wilson Asset Management has backed the moves, confidently telling Capital Brief that management has made the right call.

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Market movers

Shares in Neuren Pharmaceuticals fell almost 10% Thursday after the company disclosed it had received only written feedback from the US Food and Drug Administration on its NNZ-2591 treatment for rare neurological disorders, disappointing investors looking for stronger regulatory signals.

The quick sync

• Trump’s critical minerals push killed Ivanhoe’s $300m ASX float but may drive future listings. (Capital Brief)

• The High Court will rule on whether Bitcoin counts as property that can be possessed. (Capital Brief)

• With Sarah Court leading ASIC from June, a tougher enforcement agenda looms as the government decides who will back her as deputy. (Capital Brief)

• Canberra dampens EU trade deal hype, as real progress hinges on unresolved agricultural barriers. (Capital Brief)(Capital Brief)

• Anthropic releases new AI model that’s adept at financial research. (Bloomberg)(Reuters)

• Anthropic takes aim at OpenAI’s ChatGPT in Super Bowl ad debut. (WSJ)

Trading floor

M&A

• Regal Partners announces a $75m buyback to return capital and signal confidence. (Capital Brief)

• Rio Tinto abandons USD260b Glencore merger over valuation disputes. (Capital Brief)

• KKR to buy sports investment group Arctos for USD1.4b. (FT)

Capital Markets

• Alphabet beat expectations on revenue as AI growth accelerates, backing it with far higher-than-expected AI investment. (Capital Brief)

• Horizon Nexus launches with Big Four veterans to compete in professional services. (AFR)

• Qualcomm stock slid after a soft outlook spooked investors, overshadowing modest revenue growth. (Capital Brief)

• UBS posts $1.2b profit as investment banking rebounds. (The Australian)

• Maas stock sank as investors reacted negatively to a major asset sale and AI-focused reinvestment. (Capital Brief) (Capital Brief)

• CoStar preps Domain for REA fight, hiring 125 photographers and eyeing price cuts. (AFR)

• Arm stock slid as its outlook failed to impress an AI-hyped market. (Capital Brief)

• Insurers profit from inflation, sparking M&A talk; Suncorp eyed in Australia. (The Australian)

• Beach Energy slid after floods and lower prices hit profits. (Capital Brief)

• KKR backs HMC Capital’s green push with $600m investment. (AFR)

• APRA partly lifts liquidity requirements on Macquarie as controls improve. (Capital Brief)

• Koala Furniture IPO hit by sell-off in small-cap industrials. (The Australian)

• Neuren slid as FDA feedback raised additional study requirements. (Capital Brief)

• Australia-EU free trade deal “not done yet,” says Trade Minister Farrell. (Capital Brief)

• OpenAI launches Frontier to coordinate AI agents for business tasks. (AFR)

• CBA plans AI limits for customers and sets strict internal AI safety rules. (Capital Brief)

• New Australian retail council targets Temu and Shein over compliance. (Smart Company)

• Resolute Mining wins long-term permit for Côte d’Ivoire gold project. (Capital Brief)

• Healthscope lenders back plan to become not-for-profit, keeping 32 hospitals open. (AFR) (The Australian)

• Australia’s trade surplus rises $776m in December on higher iron ore exports. (Capital Brief)

• Ardea Resources wins $1b funding for nickel-cobalt project from US and Australia. (AFR)

• High Court to decide if cryptocurrency counts as property in Bitcoin dispute. (Capital Brief)

• Ivanhoe scraps ASX float, shifts to US listing tied to Trump’s minerals plan. (Capital Brief)

• OpenAI unveils platform to help companies deploy ‘AI coworkers’ (Bloomberg)(Axios)(WSJ)

• Bitcoin drops below USD70,000, wiping out gain since Trump’s win. (Bloomberg)

• How Anthropic achieved AI coding breakthroughs — and rattled business. (FT)

• Anthropic releases new AI model that’s adept at financial research. (Bloomberg)

• Top Goldman Sachs lawyer referenced Jeffrey Epstein’s ‘Russians’ in email. (FT)

• Epstein fallout hits British pound. (WSJ)

• Private capital giants warn AI risks could slow growth. (FT)

• Barrick to spin off North American gold assets through IPO. (Bloomberg)

VC 

• Sydney startup Advanced Navigation clears US Army GPS-jamming test. (Startup Daily)

• Perth-based mining software startup CorePlan raises $5m to grow mining software operations globally. (Startup Daily)

People moves

• Stone & Chalk’s CEO Chris Kirk will step down after 10 years, triggering a leadership transition. (Capital Brief)

• Citi hires Kriss Pachauri from Houlihan Lokey as director in ANZ asset management deals. (AFR)

• Ivanhoe Atlantic is being sued by former CEO Bronwyn Barnes for unfair dismissal, seeking damages and legal costs. (AFR)

• Elders names ex-Fonterra executive René Dedoncker as incoming CEO. (Capital Brief)

• Lance Rosenberg appears at scandal-hit TerraCom. (AFR)

• A&O Shearman poaches Clayton James from Herbert Smith Freehills to boost private equity practice. (AFR)

• Viva Energy names Teresa Rendo as new CEO of convenience and mobility. (Capital Brief)

• Argonaut hires ex-Citi vice chairman Jon Gidney as strategic adviser. (AFR)

• Paul Weiss chair Brad Karp resigns amid Epstein email controversy. (AFR)

• US January layoffs hit 108,000, the highest since 2009. (Capital Brief)(FT)

• Ainsworth execs got $15m secret bonuses after Novomatic stake sale. (AFR)

• Gemini cuts 200 jobs, exits UK, EU, and Australia to focus on key markets. (Capital Brief)

• John Overdeck’s divorce and co-founder dispute are converging, creating new risks for the stability and secrecy of Two Sigma. (Bloomberg)

• HSBC is cutting bonuses and culling staff in a hard-edged overhaul under CEO Georges Elhedery. (Bloomberg)

• Brad Karp quits as Paul Weiss chairman after Epstein emails expose social ties and job-seeking requests. (CNN)(FT)(WSJ)

The watercooler