☕️ Vampire Kangaroo

Good morning.

It’s still tough out there for investment banks.

Almost straight after LOI pondered whether the worst was over for Wall Street last week, industry giant Goldman Sachs posted its weakest quarterly profit in three years, sparking questions about the future of its CEO.

Now Australia’s biggest and most US-exposed investment bank, Macquarie, has for once underwhelmed the market with a weak outlook. It’s just one quarter and few would doubt Macquarie’s long term credentials. But despite signs the macro picture is improving, i-banks are not out of the woods yet.

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: It’s so rare to see Macquarie Group wrongfooted by the markets. But that’s what appears to be playing out right now. The millionaire’s factory (or Vampire Kangaroo as it is known these days in the UK) admitted at its AGM yesterday that basically none of its businesses are firing on all cylinders at the moment.

Investment banking is suffering from the well discussed deals drought, its trading businesses are being affected by relatively calm markets and facing tough comps to the same period last year. Meanwhile, its annuity businesses (banking and asset management) are merely plodding along, for once.

But the Macquarie critics better enjoy it while it lasts. History would suggest this is just a blip and one way or another, Mac Bank will bounce back.

THE QUICK SYNC

• The European Central Bank lifted rates for the ninth consecutive month to 3.75% - a joint record high. (City AM)

• Microsoft is being investigated by EU officials over its bundling of Teams with Office software. (CNN)

• The (Australian) head of private bank Coutts has resigned over a scandal involving UK politician Nigel Farage. (Guardian)

• Westfield’s owner is looking to capitalise on shopper traffic by expanding its in-mall advertising business. (Reuters)

• US airlines are grappling with a post pandemic shift in business travel (WSJ)

TRADING FLOOR

M&A:

• State Super and Australian Retirement Trust wanted to exit Queensland Airport Limited in full and The Infrastructure Fund was keen for a partial sell down. (AFR)

• Regal Partners lobs a $555m bid for Pacific Current Group. (BNA)

• Yowie Group signed a deal to develop, manufacture and sell products based on the children's TV series Bluey. (BNA)

• Jarden Group is understood to be involved in corporate activity related to its wealth management division. (The Australian)

• MA Moelis is understood to have been sounding out possible buyers for Besix Watpac. (The Australian)

• Allegro’s unsuccessful attempts to gain panel assurances from government departments are one of Scyne Advisory’s sticking points. (The Australian)

Capital Markets:

• Pivotel taps TMT Partners to oversee a capital partner search. (AFR)

• IAG acquires Mums & Co for an undisclosed sum. (StartupDaily)

VC:

• Cartelux, an advertising software start-up, has secured early-stage backing from QIC and TEN13. (AFR)

• Q-CTRL raises an additional $3.83m for its long-running Series B round. (StartupDaily)

Others:

• Macquarie Group’s shares fell following the report that its net profit took a hit over the first quarter of the 2024 financial year. (AFR)

• Chatime store closures are ‘absolutely’ coming, according to the CEO. (SMH)

• Bubs Australia investors decided not to oust the board or install new leadership. (BNA | SMH)

• BHP has claimed that the government’s new labour hire laws could cost it billions (AFR)

• Immerse Projects gets approval for its second Coolangatta apartment block. (BNA)

• Jarden logged $71m in firm-wide revenue for its first quarter. (AFR)

• Credit Suisse’s Tim Foy is set to join JPMorgan. (AFR | The Australian)

• Commonwealth Bank of Australia backs RLF AgTech to generate soil carbon credits through its technology. (BNA)

THE WATERCOOLER