Foreign investors banned

👋 G’day

Today’s brief:

• Labor looks to ban foreign investors from buying homes.

• Grad job market looks stable despite AI concerns, says top IBs.

• ACCC can’t stop card transaction fees because of Square.

And we’re back for another week.

Here’s the latest while you sip your morning coffee ☕️

(Oh, and we’ve doubled our list of things that might be making you a bad lawyer👇)

PRACTICE POINTS

First major AI case

• Thomson Reuters has scored a win in the first major AI copyright case in the US. In 2020, the media and tech giant sued legal AI startup Ross Intelligence, accusing it of using materials from its Westlaw legal research platform without permission. The court ruled that Ross Intelligence’s use of the data didn’t qualify as fair use, noting the AI firm was attempting to create a market substitute for Westlaw. The “fair use” doctrine (differs from the Aussie “fair dealing”) allows limited use of copyrighted works without permission. Chris Mammen, a partner at Womble Bond Dickinson, said the ruling "puts a finger on the scale" against fair use, making it harder for AI companies to defend themselves in similar suits: The Wired

• ASIC takes aim a small business directors in Q4 2024:

  • Four company directors disqualified, two for the maximum five years

  • One director charged for misleading ASIC

  • One director sentenced for false statements to ASIC

  • 58 individuals charged with 107 offences for failing to assist liquidators after company collapses.

  • Small business owners are urged to keep accurate financial records, stay informed, and seek professional advice to ensure compliance.

• Aus vs US: As Trump pushes back against workplace diversity initiatives, Labor is moving to entrench them in Australia. A bill read for a second time in the Senate could block large employers from securing government contracts if they fail to meet gender equality targets. Companies with 500+ employees would be deemed non-compliant with the Workplace Gender Equality Act and barred from contracts worth $80k or more unless they show progress over 3 years. This would push Australian businesses in the opposite direction of their US counterparts, with firms like Accenture and Google ditching gender targets: AFR

WORD ON THE STREET

DLA Piper poaches M&A star

• M&A partner David Holland, known for his work with AirTrunk and HMC Capital, has been hired by rival firm DLA Piper. After his time at Hogan Lovells, Holland is set to join DLA Piper’s corporate partnership on February 24. Win for DLA: AFR

• President Trump’s former lawyer, now in the running for a major U.S. Justice Department role, has earned a cool US$2.16m (A$3.4m) in legal fees over the past year. His clients? A mix of high-profile names, including Trump himself and Chinese fast-fashion titan Shein: Reuters

• Another government partner is on the move. Kristina Mihalic has joined NRF, after more than 13 years at HWLE. Mihalic brings deep expertise in administrative law, statutory interpretation, and extensive experience with royal commissions and public inquiries: Lawyers Weekly

TALKING POINTS

Grad jobs safe—for now

• AI hasn’t taken over the graduate job market—at least not yet. Despite fears that AI could shrink the ranks of junior bankers, investment banks are still hiring new graduates. UBS and Bank of America have increased their intake, while Goldman Sachs is holding steady: AFR

• The federal Labor government is aiming for renewable energy to make up 82% of the country’s electricity by 2030, but a new report commissioned by the Alliance for Responsible Citizenship Research warns that this target could push electricity bills up by 69%. While, the Coalition remains intent on its plan to build 7 nuclear power stations, citing significant upfront costs but “stable, low emission energy source”: The Australian

• The government will ban foreign property investors from buying established homes for the next two years, starting April 1 until 2027. Sydney homes are the second-least affordable in the world, with an avg of $1.2m per dwelling. The move is part of an effort to curb rising home prices, says Housing Minister Clare O’Neil: Bloomberg

• In a poll literally no one asked for: “Kind regards” was the clear fan favourite in email sign-offs at 70% of responses. Only 6% of people opt for “Best”. So now you know.

TREASURY

• The RBA is set to cut interest rates for the first time in four years, with a 25 basis-point reduction expected tomorrow, bringing the cash rate to 4.1%. Economists and traders alike see this easing as a potential boost for PM Albanese – a potential snap election could follow: Bloomberg

DEAL ROOM

Perpetual-KKR: Round 2

• Perpetual and KKR could be back in play. Two months after KKR’s $2.bn bid for the 139-year-old investment house’s corporate trust and wealth units stalled over an unexpected tax bill, the PE firm has returned with a revised all-cash offer above $8 a share. But this morning’s announcement says the latest proposal and its quantum “are not accurately described in the media”. Perpetual has HSF on its side, while KKR is backed by G+T: AFR

• The $1.7bn online real estate group Domain has reportedly been pitched to a range of private equity firms, including TPG Capital and KKR, to gauge their interest in taking a stake. None have bitten, according to sources. Meanwhile, Domain is still searching for a new CEO. Tough times for Domain: The Australian

• KKR is making more moves. Alinta Energy’s strong performance in the east coast electricity and gas supply market (52% surge in net profit to $1.45bn and a 21% jump in sales to $9.26bn) has likely caught the eye of potential buyers, including KKR: AFR.

• Oaktree, the New York-listed asset management firm known for taking on debt-laden companies, has approached Star Entertainment's lenders with an offer to take over their debt at a discount. If accepted, it would dilute Star's shareholders and make Oaktree a significant stakeholder. However, the lenders are expected to reject the offer: AFR

SECTOR SPECIFIC

WiseTech’s trouble

🚜 DIGGERS

• Iron ore giants Rio, BHP, Fortescue, and other major miners have dodged the worst of Cyclone Zelia. The cyclone veered away from a direct hit on Port Hedland and Rio’s ports, sparing the LNG sector as well. BHP reported that its mines, rail, and infrastructure at Port Hedland fared better than expected. Though now, Rio will be playing catch-up with its port operations having been offline for almost 2 weeks: The Australian

• New York-listed Albemarle has announced it will place its Chengdu lithium hydroxide plant in China into care and maintenance by mid-year, as the downturn in battery ingredient prices drags on. The company will also shift production from lithium hydroxide to lithium carbonate, responding to stronger demand for the latter. Meanwhile, China’s Tianqi and its partner IGO are reportedly considering shutting down their loss-making lithium hydroxide plant at Kwinana: The Australian

🏦 FIN

• Wealth and banking group AMP has slashed its final dividend after statutory profits for the financial year plunged 43% to $150m. The company was hit hard by the cost of selling its advice business, booking a $36m loss on the deal. AMP CEO says the company is now focusing on its wealth, superannuation, and banking arms: The Australian

• ACCC Chair says passing on blended card transaction fees doesn’t breach Australia’s surcharging rules. Blended pricing plans, popularised by Square (a Block subsidiary), bundle payment and software costs into a flat fee, typically around 1.6%, with debit card users subsidising credit card costs. Square argues the model boosts competition, but rivals like Tyro and Westpac say it forces consumers to pay extra, pushing for stricter rules on "bundling" costs.

🏡 RETAIL & REAL ESTATE

• Property trust GPT Group posted a $200.7m loss for the year after taking a hit from $770.7m in property write-downs, but believes the worst is behind it. The company is shifting focus to funds management to drive earnings, reporting $616.3m in funds from operations. With a gearing of 28.7% and liquidity of $1.1bn, GPT feels confident moving forward.

• Meanwhile, Mirvac shares are up 5% as its first half of the FY beats estimates. The property developer reported a statutory profit of $1m due to a boost in residential sales.

📱 TECH

• WiseTech founder Richard White is in trouble yet again. The billionaire is accused of providing financial support and assisting with the visa of female employee Caroline Heidemann, but not out of the goodness of his heart—in exchange for a continued sexual relationship. Court documents filed this week claim Heidemann was told the financial help was contingent on her engaging in a sexual relationship with White. White "intends to vigorously defend all allegations”: SMH

• Uber is suing DoorDash for anticompetitive practices, claiming it drives up costs for both consumers and restaurants. The lawsuit, filed in California, accuses DoorDash of forcing restaurants into exclusive deals and threatening higher commissions for using competitors like Uber. Both companies dominate the US food delivery market, with DoorDash holding 63% and Uber at 25% in 2024: Capital Brief

• Billionaire Elon Musk has announced that his xAI’s ChatGPT competitor, Grok 3, will be released tomorrow at 12pm (Sydney time). Dell is reportedly close to securing a $5bn AI server deal for xAI: Reuters, Bloomberg

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