☕️Special Situations

Good morning.

Gold hit new highs on Monday as investors fled roiling markets to shore up whatever they can from the great unknown that is Trump’s incoming ‘Liberation Day’ tariffs on Wednesday. While gold and gilts are garnering the usual attention amid chaotic markets, Oaktree Capital Management is exploiting the turmoil with a new and improved US$4 billion ($6.35 billion) ‘Special Situations Fund IV.’ The fund will invest in assets including distressed debt, structured equity or direct equity, according to Bloomberg sources.

The fund has invested in fund manager Australian Alternative Asset Partners. Could the Trump brothers’ latest crypto venture be next in the portfolio? 👀

🏆 LOI Subscriber #TBD

Market movers

Orora clawed back some losses Monday after the company distanced its French glass bottler Saverglass from an antitrust probe and moved to reassure investors over past pricing practices.

The quick sync

• Fair Work flagged governance flaws at StrongRoom AI long before its dramatic collapse and EVP-triggered police probe.(Capital Brief)

• As Elli Hanson writes, AI is replacing entry-level startup roles, raising questions about how tomorrow’s founders will be trained without traditional on-the-job apprenticeships. (Capital Brief)

• Deloitte cops Trump’s biggest blow yet as 129 deals are axed in a consulting cull also hitting Accenture, IBM and Booz Allen. (FT)

• Rate cut lifts Aussie home prices to a new peak, but shaky affordability could stall the rally. (Reuters)

• Peter Dutton pledges to ease strict lending rules and tackle mortgage inequality to boost home ownership. (The Australian)

Trading floor

M&A

• Anacacia sells Force Fire stake for $53.5m to close Core Fund IV. (AFR)

• Fletcher Building's review may lead to the sale of its Australian insulation business, valued around $200m, due to competition from larger market players. (The Australian)

• CoreWeave’s underwhelming IPO on the Nasdaq raises concerns for Australian tech companies like Canva, as it missed its expected debut price range. (AFR)

• GlobalFoundries and UMC explore merger to strengthen US semiconductor industry. (Capital Brief)

• Rennie Advisory, backed by Pemba Capital, plans to spend tens of millions on at least two acquisitions this year to expand into a national firm. (AFR)

• James Hardie investors unhappy with $14b Azek deal, share price falls. (AFR)

• Clean Seas Seafood has entered into a Scheme Implementation Deed (SID) with Yumbah Aquaculture, marking the beginning of their partnership. (ASX)

Capital Markets

• Downer EDI wins a NZ$600m Powerco contract for maintenance and repairs. (Capital Brief)

• The RBA and ASIC are taking action over ASX’s CHESS failure, with the RBA reassessing compliance and ASIC ordering a technical review. (Capital Brief)

• Goldman and Forsyth Barr launch Tower Limited block trade as Bain Capital exits. (AFR)

• Accent Group is in ongoing talks with Frasers about a potential deal to expand Sports Direct in Australia. (Capital Brief)

• Sigma, owner of Chemist Warehouse, is considering a convertible bond raising to manage debt after its merger, boosting its market value. (The Australian)

• Ventia extends $270m defence contract for base services. (Capital Brief)

• Next Capital is launching a continuation fund for SilverChef, aiming to extend its investment and support the company’s North American expansion. (AFR)

• Incitec Pivot rebrands as Dyno Nobel, shifting focus to explosives. (Capital Brief)

• Dutton promises $1.5b more for Melbourne Airport Rail, opposes state rail loop. (Capital Brief)

• Opthea enters funding talks after second trial failure for eye disease treatment. (AFR)

• Stocks drop ahead of Trump tariffs; Goldman Sachs raises recession risks. (Capital Brief)

• France fines Apple €150m over App Tracking Transparency feature. (Capital Brief)

• Biotech stocks slump as Trump and RFK Jr plot health shake-up after FDA vaccine chief forced out. (Reuters)

• Rocket Companies’ US$9.4 billion takeover of Mr Cooper aims to supercharge its mortgage business as US housing demand rebounds. (Reuters)

• Retail frenzy sends loss-making Newsmax up 683% in wild NYSE debut echoing meme stock mania. (Bloomberg)

• Google spin-off Isomorphic Labs pulls US$600m to push AI drugs into trials by 2025. (Reuters)

• As tariffs bite and inflation expectations soar, investors are piling into energy stocks—outperforming oil prices and the broader market. (Bloomberg)

• Woolworths narrows price gap with Aldi to a two-year low as supermarkets brace for ACCC scrutiny and political heat over grocery costs. (AFR)

• Warner Bros Discovery’s global streaming boss says Max will turn a profit fast and challenge top rivals as it launches into Australia’s crowded market. (AFR)

VC

• Sydney-based adtech startup Blend AI opens US office to expand e-commerce ad optimization platform. (BNA)

People moves

• ANZ’s new CEO Nuno Matos will start on May 12 instead of July 2. (Capital Brief)

• Todd Sampson will leave the Qantas board on July 31, with former HP CEO Dion Weisler joining immediately as a non-executive director. (Capital Brief)

• WiseTech has appointed two new independent directors and is advancing a CEO succession plan in response to investor concerns. (Capital Brief)

• Grant Thornton names Said Jahani CEO, replacing Greg Keith. (Capital Brief)

The watercooler