7/10 Aussie companies cut costs ✂️💳

G’day.  

Welcome to Point Blank – ready for that Friday team coffee? 

 💼 Practice Points

• Federal Court emphasises that when extending a security registration period, the main concern is its effect on unsecured creditors.

• Businesses can breathe a little easier with the new ACCC reforms, as the laws put before Parliament are less restrictive than expected. The ACCC's "stop-the-clock" power is limited, and the burden of proof stays with the regulator.

• Supreme Court finds that Uber is not liable for payroll tax on driver wages as Uber is merely “a payment collection agent” for the drivers. Oh, what a feeling it is to skirt past a $81 million tax concern.

 📢 Talking Points

• Albanese shifts the blame for cost-of-living pressures onto Coles and Woolies, turning them into convenient scapegoats for political finger-pointing. These supermarket giants should tread carefully: if found guilty of deceptive discounting, they risk hefty penalties and potential corporate breakups, much like the recent actions taken against Google.

• With 70% of big Aussie companies cutting costs, nearly half are eyeing salary cuts and 41% are ready to hand out pink slips—no one’s wallet is safe.

• Is the 9-to-5 job really on its deathbed? LinkedIn co-founder Reid Hoffman thinks so, pointing to a growing gig economy and AI reshaping our workplaces.

• Labor tries to nuke the Coalition’s plans for nuclear energy with a new inquiry, which will report its findings on the eve of the next poll.

 🏦 The Treasury

US inflation data was worse than expected, sitting at 2.4% in September. Here’s the market 👇

 🤝 Deal Room

• Rio Tinto’s CEO teases a possible share issuance to tackle the $9.9b Arcadium deal, which will balloon net debt to $12b —the highest for Rio since 2016—all while still vowing to keep the dividends flowing and maintain a $10b annual spend.

• Canada's Alimentation Couche-Tard has sweetened its offer for Japan's Seven & i Holdings to $47b, potentially marking the largest overseas buyout of a Japanese firm.

• The Takeovers Panel dismisses minority shareholders’ application to delay ERA’s $880m entitlement offer, citing no reasonable grounds for intervention.

🏛 Policy Watch

• US volatility on foreign policies, driven by deep partisan divides, makes it hard for countries to strategise around the US, while allowing the likes of Putin to delay decisions until a potentially more favourable administration

• Labor's early March budget is set to dish out pre-election cost-of-living sweeteners.

🏗 Sector Specific

Diggers

• The Federal Court has acquiesced to Santos's demands, ordering the EDO to hand over 3,200 documents revealing the funding behind its failed challenge to Santos's Timor Sea gas project, raising eyebrows over big corporate using litigation to silence the little guy.

• Crisafulli vows to keep Queensland’s coal-fired power stations running indefinitely—apparently, his roadmap to net zero by 2050 relies on a generous dose of wishful thinking.

The Fin

• Federal police raids four locations in their investigation into ANZ traders accused of pulling a fast one on a $14b government bond sale by driving down the price of bond futures contracts, which increased the cost of borrowing.

Property & Retail

• GYG, with shares soaring 72% since its listing, is under increasing pressure to deliver on its ambitious expansion plans—launching 31 new locations and reaching $428 million in revenue. While the Cali burrito craze is heating up, analysts caution that such rapid growth might be unsustainable, risking a fast fizzle out.

• In a dramatic shake-up, the hospitality empire behind Rockpool and Sake has fallen into the hands of lenders, as heavy debt forced Quadrant Private Equity to walk away. Now under the control of Metrics Credit Partners, the restaurant group will continue serving up its popular dining experiences despite its financial woes.

• Lendlease signs Japanese partner for $500m build-to-rent tower in Melbourne’s Docklands.

🙉 Hearsay 

• Complaints against NSW barristers have surged by 43%, with most centred on ethical issues, closely followed by concerns over competence, diligence, costs, personal conduct, and communication.