ASIC v Rex directors

G’day.

Welcome to Point Blank.

Today’s brief:

• ASIC sues Rex for misleading forecasts.

• CFMEU faces High Court challenge over Labor laws.

• Business confidence drops, mining hits hardest. Meanwhile, Goldman Sachs predicts a 2025 M&A boom.

We’re speeding through the week, counting the days until the office closure Christmas.

Here’s what you should know today 👇

 💼 Practice Points

• ASIC is suing Regional Express (Rex) and four former directors, alleging misleading conduct and breaches of continuous disclosure laws. ASIC claims Rex’s ASX announcement projecting FY23 profits lacked basis, as the airline had suffered losses and no financial forecast was prepared – a $35m loss was later revealed in June. ASIC alleges “serious governance failure” and seeks penalties and disqualification orders against the directors. The case adds to the director duty saga, with ASIC ramping up proceedings against directors for failures.

• The Joint Ore Reserves Committee is updating the JORC Code with key changes, including tighter Competent Person requirements, an improved disclosure threshold for reasonable prospects, expanded public reporting, and several ESG-related updates. Check out G+T’s update for the details.

• Corrs warns the new privacy bill will ramp up regulator action. The OAIC has only launched a few civil penalty cases under the Privacy Act so far. Still, with bigger penalties and expanded investigation powers, we can expect much more from the OAIC.

🏘️ Word on the Street 

• Two former lawyers suing Super Retail (the parent company of Supercheap Auto) have been hospitalised for stress during proceedings. The two claim the company backed out of a payout, fostered a toxic culture of bullying and accused the CEO of having a workplace affair with the head of HR.

• A barrister who failed to disclose his contempt conviction while renewing his practising certificate—and decided that a trip to China was more appealing than attending a court date, has had his practising certificate denied. At least now he’ll have more time for travel..

• Maddocks adds a new partner to its ranks. Dr Wolfgang Hellman will lead the firm’s competition law practice, joining across from Johnson Winter Slattery. Dr Hellman practised German and European law in Düsseldorf before relocating to Australia.

🧐 Wednesday Wisdom

📢 Talking Points

• The CFMEU High Court proceedings are underway, and here’s the need to know:

  • Australia’s top barristers Bret Walker SC and Craig Lenehan SC argue that Labor's legislation forcing the CFMEU into administration is constitutionally invalid. Labor’s laws came after an investigation into bullying, intimidation, and corruption within the union.

  • Walker and Lenehan say the laws lack constitutional authority, infringe on political communication, and encroach on the judiciary’s role. Walker pointed out that none of the media-fuelled investigations have resulted in adverse court findings, commenting, “We don’t do trial by media” and “We don’t do trial by parliament”.

  • Now, the Electrical Trades Union is threatening to withdraw support for Labor in the federal election in retaliation for the CFMEU laws.

• In case you missed it yesterday, the TV drama Succession was always inspired by the Murdochs, but now it's playing out in real life. Rupert Murdoch sought to amend the family trust to give Lachlan control of his empire and sideline his other children—James, Elisabeth, and Prudence—but they’ve fought back for the throne. In a win for his children, a Nevada probate commissioner has rejected Murdoch’s attempts. This family drama is far from over, with Murdoch planning to appeal.

• In a complete WTF moment, the jacket allegedly used by Luigi Mangione, the suspect in the United Healthcare CEO killing in New York, has exploded in popularity on Macy’s website – selling over 700 jackets in 48 hours. Seriously WTF…

  

🏦 The Treasury

• RBA held the interest rate steady at 4.35% – a 13-year high. There is growing confidence that inflation is moving within the central bank’s 2-3% target.

• A February rate cut is now looking more likely, with even RBA Governor Michelle Bullock saying she reckons inflation will continue to drop.

  

  ASX as at market close. Commodities and crypto in US dollars.

🤝 Deal Room

• Goldman Sachs boss David Solomon predicts M&A and equity deals will surge in 2025, surpassing 10-year averages. Speaking at a Reuters event, he cited potential pro-growth policies under Trump but flagged the first 100 days as key for clarity on trade, energy, and tax.

• Vulcan Energy is chasing $184m to kickstart phase one of its Lionheart lithium and renewable energy project in Germany. They’re raising $164m through an institutional placement, issuing 28m shares at $5.85— an 11.9% discount to the last close. Another $20m will come from a share purchase plan.

• Fat Zebra is on the move, scooping up Pin Payments in its second acquisition this year. No word on the price tag, but it’s a bold play in the payments tech game.

• It’s a great time to work at AirTrunk. With Blackstone’s acquisition wrapping up at the end of the month, the data centre company is handing out $22m in bonuses to 330 employees. As for founder and CEO Robin Khuda? He’ll pocket over $1bn in cash and keep a stake worth about the same.

• Macquarie’s dropping $US2.4bn (A$3.7bn) for a stake in gas, power, and storage assets at Dow’s Texas and Louisiana sites. It’s one of Macquarie’s biggest US investments, adding to its $US21 billion in 54 portfolio companies.

🏗 Sector Specific

Diggers

• South32 has scrapped its production guidance for the Mozal aluminium smelter in Mozambique, citing widespread and deadly protests. The unrest, sparked by disputed October elections, has led to over 100 fatalities and widespread disruptions.

• Newmont’s trimming the fat. The world’s top gold miner has axed nearly a dozen managers, including an exec, as part of a major restructure. The moves come after a lacklustre earnings report, with the company struggling to rein in costs and make the most of soaring gold prices.

• Business confidence nosedived in November, erasing October’s gains, according to NAB’s latest survey. Mining and retail bore the brunt of the downturn, underscoring mounting pressure on the private sector. The sharp drop signals businesses are bracing for tougher economic conditions ahead.

Fin

• Revolut has applied for a New Zealand banking licence. Since launching in New Zealand in 2023, Revolut has seen strong growth momentum, with over NZ$350m (A$320m) in transactions processed to date. If approved, Revolut will become the first global digital bank in New Zealand.

• ANZ’s exec pay is facing a revolt. Proxy advisers are urging shareholders to reject the bank’s rem report, saying execs haven’t slashed pay enough to show “genuine accountability” for the bond trading scandal.

• Westpac’s chief audit exec, Scott Kieran, is packing up his things. His exit follows a Federal Court case brought by former risk head Samantha Aitken, who claims she was stigmatised for blowing the whistle on financial crimes at RAMS. Amongst her claims, Aitken calls out Kieran for failing to respond to her complaints.

Tech

• Apple is gearing up to launch satellite connectivity for the Apple Watch in 2025, targeting adventurers and health enthusiasts. The next-gen Apple Watch Ultra will let users send texts via Globalstar satellites without Wi-Fi or cellular. Also in the works: a blood-pressure feature to further boost its health tech appeal.

Retail

• New Zealand’s competition watchdog is jumping on the anti-Woolies bandwagon, filing criminal charges over claims the supermarket giant misled shoppers with specials that "aren't really specials".

• Any wine lovers with us? Well, Chinese wine might just be the next thing to add to your collection. Penfolds’ owner just dropped $27.5m on a winery in China, betting that Chinese wine will be the new Bordeaux.