☕️ Swinging Axe

Good morning.

Spotify has swung the axe, slashing 1,500 jobs globally – including in Australia where it will impact the local playlists team.

But is there a right way to sack swathes of employees in 2023?

The WSJ artfully analysed Spotify CEO Daniel Ek’s delivery of yesterday’s brutal news, noting the mea culpas, emphasis on efficiency, and future-focused framing that have become tropes of the ‘CEO layoff letter’.

Alternatively, you can check out today’s Watercooler below for a more direct take on the cuts.

🏆 LOI Subscriber #TBD

Market movers

A good chunk of Australian lithium stock is experiencing a stinging sell-off, spurred on in no small part by news that many Aussie mines could miss out on subsidies from the US Inflation Reduction Act (IRA) due to partial Chinese ownership.

US guidance released on the weekend explained that entities with high levels of Chinese, North Korean, Iranian or Russian ownership or processing would not be eligible for the IRA subsidies. Under Biden’s green agenda, US battery and car makers are incentivised to source minerals like lithium from Australia.

While some non-Chinese lithium businesses like Liontown Resources look to be relatively protected, Core Lithium closed down 9.80%, carrying a year-to-date loss of 77%. Ouch.

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The quick sync

• Fool me once: Bitcoin is booming again but are retail punters ready to HODL after being burned? (Capital Brief)

• UBS dominated block trade action in 2023, overseeing 20% of all trades for the year. (AFR)

• ASIC chastises neobrokers after probe found firms mishandled client money and internal compliance, raising the risk of fraud. (Capital Brief)

• US job openings fall to lowest level since 2021. (Wall Street Journal)

• If Aussie M&A timelines are anything to go by, Brookfield’s turbulent pursuit of Origin could just be getting started. (Capital Brief)

• EU proposes delaying tariffs on electric vehicles traded with the UK by three years. (Bloomberg)

• CFTC official says US crypto enforcement action might have peaked with Binance’s US$4.3 billion settlement. (Reuters)

Trading floor

M&A

• Gina Rinehart acquires iconic Australian brand Driza-Bone. (BNA)

• Medibank Private is set to become the majority shareholder in Myhealth after reaching a binding agreement. (AFR)

• Evolution Mining has enlisted Macquarie Capital to facilitate the acquisition of an 80% stake in the Northparkes copper and gold mine from China Moly. (The Australian)

• Barristers lean on fried chicken analogies to cut through on day two of the ANZ-SunCorp competition Tribunal. (Capital Brief)

• Pon Group finalises trio of sale processes worth a combined $100 million-thanks to dealmakers it poached from BDO two months ago. (AFR)

• Crionet has acquired a majority stake in Sydney-based scale-up LIGR. (BNA)

• Whisper board rejects private equity offer, Soprano Design enters takeover battle with 48¢ per share bid. (AFR)

• Metcash eyes potential acquisitions in the hardware sector, with speculation focusing on online business HBT. (The Australian)

CAPITAL MARKETS

• Navigator Global Investments launches $120m equity raise and proposes $182m placement to GP Strategic Capital. (AFR)

• Boss Energy seeks almost $200m in fresh equity for M&A move with Aitken Mount Capital Partners and Sternship Advisers. (AFR)

VC

• French AI startup Mistral AI nears $2bn valuation with €450M funding round. (Capital Brief)

People moves

• GCQ Funds Management expands with a new hire from Magellan Financial Group. (AFR)

• LGT Crestone recruits five advisers, including Mason Allamby and Stephen Collins, from rival Escala Partners. (AFR)

The watercooler