☕️Undercover Bankers

Good morning.

Tinker Tailor Soldier Spy Banker. Top firms including Goldman and Lazard are increasingly recruiting ex-spies, diplomats and soldiers to help banks navigate thorny macro-economic events that threaten to destabilise markets. Bloomberg reports that in such an election-heavy year, companies are desperate to distinguish themselves with talent that offers unique geopolitical expertise.

Given the meat-grinder-esque hazing process that junior bankers are routinely subjected to in their early years, perhaps they’d be better off getting experience in MI6 or the CIA before making a tactical lateral move.

🏆 LOI Subscriber #TBD

Market movers

Shares in Nanosonics plummeted by over a third during trading Wednesday, after the ultrasound disinfectant maker flagged a 72% earnings drop in its H1 update ahead of final results to be released on Friday. Earnings before interest fell from $10.7 million to $3 million, while operating expenses rose by 12%. The trading update says NAN is experiencing ongoing uncertainty in the sector, leading to lower sales and delayed equipment upgrades.

The quick sync

• Albanese is set to blame Labor’s stage 3 tax cut overhaul on inflation and the cost-of-living crisis during his National Press Club address later today. (Capital Brief)

• Microsoft’s market value hit US$3 trillion for the first time on Wednesday as tech stocks continue to rally. (CNBC)

• Despite optimism that we’d see an uptick in listings, the subdued IPO market looks set to continue in 2024. (Capital Brief)

• Australian growth funds outperformed in Mercer’s investment performance tables for 2023, buoyed by incoming rate cuts, a global soft landing and boom in AI. (The Australian)

• Bill Ackman and wife Neri Oxman have bought a 4.9% stake in the Tel Aviv stock exchange for US$25 million, as part of a wider stake sale worth US$95 million. (Financial Times)

• The ‘big four’ banks are sitting on billions in cash that they are keen to deploy quickly, potentially in the form of share buybacks. (Capital Brief)

• Shares in SAP jumped 7% to a record high on news that the software giant would restructure 8,000 jobs and focus growth in AI with a €2b investment. (Reuters)

Trading floor

M&A

• As Seven Group's CEO, Ryan Stokes grapples with a majority 71.6% stake in cement maker Boral, markets ponder the possibility of a block trade in the pipeline. (AFR)

• Westpac and ANZ finalise multi-billion dollar bond deals, reflecting strong investor demand and reduced funding costs. (AFR)

• Jefferies Australia was appointed sell-side adviser for TPG Capital's Novotech, leveraging its global franchise to find a buyer for the $4b sale. (AFR)

• Founders of Sparro, Morris and Cameron Bryant, have sold their business to UK's Brainlabs, which handles $200m in advertising. (AFR)

• Body Catalyst has been saved from collapse as creditors approved a deed of company arrangement (DOCA). (BNA)

• BWP Trust, the owner of 75 Bunnings Warehouses, is set to acquire Newmark Property REIT in an all-share deal valued at $246.8m. (AFR | AFR)

• Woodside CEO Meg O’Neill has tempered expectations regarding a potential merger with rival Santos, indicating that discussions are still in the early stages. (SMH)

Capital Markets

• Square Peg's returns show provisions for write-downs as exits struggle in 2023. (AFR)

VC

• Ultra Violette secures a $15m investment from Aria Growth Partners for North American retail expansion. (BNA)

People moves

• JPMorgan operator Andrew "Art" Tanner is poised to join E&P Capital as a managing director and senior adviser in the capital business. (AFR)

• Linktree hires machine learning experts to enhance user monetisation. (Smart Company)

The watercooler