☕️ Stokes’ last

Good morning.

In what may be Kerry Stokes’ last major play in media, Seven West is set to be absorbed by Southern Cross Austereo in an all-scrip merger - technically. On paper, Southern Cross shareholders will hold a narrow 50.1% majority, but Seven’s CEO Jeff Howard will take the chief executive role, and the combined board will be weighted toward Seven, with Stokes himself chairing until 2026.

As Capital Brief’s John Buckley reports, the deal was struck quickly and quietly, with serious talks starting just a month ago between Howard and Southern Cross CEO John Kelly, after a planned TV asset sale to Australian Digital Holdings fell over in February. A small group kept the process tightly held without leaks. Investors, including Sandon Capital, are fuming, but with support from major shareholders like Antony Catalano, who backed it from Fiji, many are confident it will get done.

🏆 LOI Subscriber #TBD

Market movers

Shares in IDP Education jumped over 16% on Tuesday, the strongest gain on the ASX 200 despite no fresh announcements from the company itself. It came after Jefferies upgraded the stock to buy and raised its price target to $8.60. The broker pointed to a turnaround in IELTS web traffic as a positive signal for demand. Despite the rally, IDP remains the third most shorted stock on the ASX.

The quick sync

• OpenAI becomes a member of the Tech Council of Australia as it ramps up its local presence. (Capital Brief)

• The RBA’s strongest signal yet suggests further rate cuts may not come as quickly as expected. (Capital Brief)

• Anthony Albanese’s decision to laud his “great mate” Keir Starmer at the UK Labour conference is controversial but potentially pragmatic. (Capital Brief)

• US vows to maintain tariffs regardless of Supreme Court ruling. (FT)

• Global currency market swells to USD10 trillion a day in tariff turmoil. (FT)

Trading floor

M&A

• Southern Cross and Seven West to merge, with Jeff Howard as CEO and cost savings of up to $30m. (Capital Brief)

• KKR hires Jefferies to explore sale of Pepper Money stake. (AFR)

• Pentagon to back AUKUS sub deal before Albanese’s US visit. (Capital Brief)

• Finaccess launches $553m takeover bid for NZ KFC operator. (Capital Brief)

• Healthscope sale delayed as bidders target premium hospitals, but landlord lease approvals remain a hurdle. (The Australian)

• Nippon Steel buys 30% of Canada’s Kami iron ore project in JV with Champion Iron and Sojitz. (Capital Brief)

• Chinese owners of Alinta and EnergyAustralia may cut stakes to lure buyers, with Sembcorp weighing Alinta despite coal exposure. (The Australian)

• CoreWeave jumps on USD14.2b Meta AI deal, boosting diversification from Microsoft. (Capital Brief)

Capital Markets

• ASII launches to replace SmartSat CRC, driving space tech for agriculture, defence, and disaster resilience. (Capital Brief)

• PolyNovo says US drug tariffs won’t affect its devices, only existing 10% export tariff applies. (Capital Brief)

• Alcoa to shut WA’s Kwinana refinery, taking $1.35b hit and reducing refining capacity. (Capital Brief)

• Saturn Metals and James Bay Minerals launch capital raises amid gold rally. (AFR)

• Aware Super and Goodman launch $2b LA logistics platform. (Capital Brief)

• Alphabet pays $37m to settle Trump YouTube lawsuit. (Capital Brief)

• Cibus launches $300m Australian carbon fund. (Capital Brief)

• Spee3d targets $230m ASX float with $50m raise in November. (AFR)

• Star wins debt reprieve, secures waivers to 2026. (Capital Brief)

• China’s manufacturing slump extends to sixth month. (Capital Brief)

• RBA holds rates at 3.6%, signals cautious stance, raising doubts over November cut. (Capital Brief)

• Argonaut predicts US$4500 gold and lithium rebound, after record $1.7b mining raises. (AFR)

• Oil stocks drop as prices slide before OPEC+ meeting. (Capital Brief)

• Macquarie closes 37 super funds amid weak demand, regulatory pressure. (Capital Brief)

• Australia keeps AAA rating as debt, deficit improve. (Capital Brief)

• Bloomberg says China halts all BHP iron ore cargoes in pricing standoff. A Chinese news site disputed the report. (Capital Brief)(AFR)

• Pfizer cuts drug prices via TrumpRx, gains tariff relief and pledges USD70b US investment. (Capital Brief)

• Amber secures $10m to expand energy automation tech internationally. (Startup Daily)

• US job openings edge up, hiring slows to lowest since 2024, signaling softer labour market. (Capital Brief)

• Australian home prices jump 0.8% in September, biggest rise since 2023, driven by low supply and rate cuts. (Capital Brief)

• Wych raises NZD1.5m to expand open banking with Kiwibank and CDR services. (Startup Daily)

• OpenAI joins Tech Council of Australia, expanding local presence and pushing for strategic investments. (Capital Brief)

VC 

• Brisbane startup Enhance Labs raises $2.3m for voice-first AI platform backed by Blackbird. (Startup Daily)

• AI HealthTech startup Indi raises $1.46m to expand app for complex care families. (Capital Brief)

• TEN13 wins $130m state VC mandate, backing OneMRI in first deal. (Startup Daily)

People moves

• CSL names Ken Lim as new CFO, replacing retiring Joy Linton. (Capital Brief)

• Bank of America has promoted senior Australian dealmakers Dan Janes, Tom Barsha, Karl Rozman, and Kate Stone as part of leadership changes. (AFR)

• Natascha Viljoen to succeed Tom Palmer as Newmont CEO in 2026. (Capital Brief)

• Tom Snow exits Canberra Airport board, ending family chairmanship. (AFR)

• Spotify names Söderström and Norström co-CEOs as Daniel Ek shifts to chairman role. (Capital Brief)

The watercooler