☕ WFH debate settled

Good morning.

The post-COVID WFH / return to the office adjustment continues with most big employers wanting their staff back at work due to concerns about culture and productivity and employees (particularly in the US) begrudgingly coming to grips with it.

But one of NYC’s biggest office landlords admitted this week that Fridays in the office are “dead forever” and even Mondays are “touch and go”. Those candid comments come against the backdrop of serious weakness in the commercial property market and as the landlord that made them - Vornado Realty Trust - prepares to spend US$1.2bn revamping two key buildings in midtdown Manhattan, which it freely expects will only be occupied 3 days a week.

So does that settle it then? Is the 3 days in the office / 2 days at home split where we have landed on this? Let us know what you think.

—

ps. if this was forwarded to you, you can sign up for LOI at letterofintent.com.au

LOI Subscriber #TBD

MARKET MOVERS

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

Market News: Weaker than expected CPI figures boosted the ASX on Wednesday but one glaring exception to the broader market rally was Bega Cheese. Shares in cheesemaker (and Vegemite owner) tumbled after it downgraded its earnings forecasts due to higher farmgate milk prices.

Inflation may be subsiding across the economy but it’s obviously still a problem in the wholesale milk market, with Bega bemoaning the fact that it takes a long time for higher prices to trigger a supply response from dairy farms.

THE QUICK SYNC

• Nvidia shares took a hit amid reports the US is considering restrictions on exports of AI chips to China. (WSJ | CNBC)

• Jerome Powell signalled that Fed could raise interest rates at consecutive upcoming meetings. (CNN)

• Blackrock has raised $500m from co-investors for the Waratah Super Battery project in NSW, which will play a critical role in the shift from coal to renewables. (SMH | Renew Economy)

• The federal government has suspended an aged care contract with PwC. (The Guardian)

• WFH means Fridays in the office are “dead forever” while Mondays are “touch and go”, according to one of NYC’s biggest landlords. (Yahoo | WSJ )

TRADING FLOOR

M&A:

• Bega sells Vegemite factory to Charter Hall for $115m. (BNA)

• KKR could team up with Qantas Loyalty in a potential bid for TEG. (AFR)

• Quadrant has been linked with skincare brand Sukin which is owned by collapsed cosmetics group BWX (The Australian)

• Brisbane Airport Corporation stake sellers were revealed to be Igneo Infrastructure Partners' clients. (AFR)

• Barings Private Equity is weighing a potential tilt at Link Administration Holdings. (The Australian)

• AustralianSuper is in discussions to sell its stakes in two infrastructure funds run by Foresight Group. (AFR)

• Vegan infant formula company, Sprout Organic has signed an agreement with Drakes. (BNA)

• Fanatics won the 11th-hour battle for PointsBet’s US operations by upping its bid by more than $100m. (SMH)

• Ramsay Health Care has received bids for its Sime Darby Health Care business in Asia. (The Australian)

Capital Markets:

• Pet Circle is expected to raise fresh capital after one investor topped up its stake. (AFR)

• IPO hopeful Mondiale VGL warns its investors that the industry’s market conditions are set to worsen. (The Australian)

VC:

• None

Others:

• Trident Plastics appointed voluntary administrators as a result of difficulties in manufacturing and its supply chain. (BNA)

• Perpetual claims that a third-party provider suffered a data breach that exposed the personal information of thousands of its customers. (AFR)

• Rob Marcolina will take Vanessa Hudson's post as CFO as Qantas prepares to restructure its group management committee. (AFR)

• IFM’s Valentina Abbott has joined Stafford as its global head of client solutions. (AFR)

• Layoffs at Credit Suisse are expected to hit its senior bankers in Australia. (AFR)

THE WATERCOOLER