Minters nabs 7 PwC partners

G’day.  

Welcome to Point Blank – We hope you get served with an excellent cup of coffee this morning as you peruse today’s insight and news. Enjoy. ☕️

 💼 Practice Points

• What’s a company board to do when it’s pulled in two different directions? In response to the Ellison scandal, MinRes' board’s "compromise" involves fines but no immediate action to remove Ellison—yet, no one is happy. Long-term investors back Ellison, seeing him as crucial to the company’s success, while external critics, including corporate governance groups like ACSI, are calling for deeper scrutiny. It’s a classic case of the tightrope boards walk when shareholders are split, and it isn’t always as easy as picking a side.

• The Federal Circuit and Family Court makes it clear: unreasonable additional working hours under the Fair Work Act aren’t just about employers flat-out demanding overtime. They also cover those dreaded tight deadlines that have you working late just to get everything done—we’ve all been there…

• Insurers are legally required to act in good faith, but complaints have been piling up in recent years—everything from sky-high premium hikes to lowball cash settlements. The Actuaries Institute is now calling on insurer boards to set clear risk appetites, corporate values, and cultures to make sure customers actually get a fair deal.

 📢 Talking Points

• There’s nothing worse than trekking to the GP just for a referral. A proposed overhaul of Australia’s healthcare system aims to cut out the middleman—and the cost—by letting non-GP professionals, like midwives, nurses, and physiotherapists, directly refer patients to specialists.

• The top challenges faced by law students today are:

  • rising concerns about AI replacing learning opportunities in the workplace, calling for integrating AI literacy into the curriculum; and

  • juggling clerkship apps, uni deadlines, and work, all while trying to achieve the elusive "work-life balance".

• Australia is sweating the US election, warning of a potential trade war with China. Hefty trade tariffs imposed by the US on Chinese goods could hurt China’s economy, reducing demand for Aussie exports like commodities and agricultural goods.

• Israel’s PM Netanyahu has fired Defence Minister Yoav Gallant over significant differences over the war effort. Gallant has publicly challenged Netanyahu’s failure to prioritise a deal to release Israeli hostages held in Gaza.

• Voting began overnight in the tightly contested US presidential election, with initial results coming from the tiny town of Dixville Notch, New Hampshire – Harris and Trump each received 3 votes, which took 2 billables units to count (as any partner would say, seems a bit slow…). The Presidency will come down to seven battleground states (and their College votes): Arizona (11), Georgia (16), Michigan (15), Nevada (6), North Carolina (16), Pennsylvania (19) and Wisconsin (10). If everyone plays by the rules, these will likely rustle up enough votes to tip over the 270 Electoral College votes needed to claim victory. Georgia is the earliest to close its booths at 11am AEDT, while Nevada is the latest at 2pm AEDT – the winner of Nevada has gone on to win the White House 27/30 past presidential elections.

 🏦 The Treasury

• The RBA held rates at 4.35%. RBA governor Michele Bullock gave a stark warning to Treasurer Chalmers on pre-election spending promises. Ms Bullock hinted that rate rises are still in play if Labor’s spending habits persist.

• Across the pond in NZ, its central bank has warned the economic downturn could get worse: “Households have reduced their discretionary spending and businesses have put investment plans on hold…significant further weakening in the economy remains a risk.”

• Nvidia surpasses Apple to become the largest company in the world with a market cap of US$3.43 trillion. ASX to rise on US tech rallies.

• Iron ore climbed 2% to US$105.95 a tonne overnight ahead of a key policy meeting in Beijing that is expected to announce more stimulus to bolster the economy – BHP and Rio Tinto rally over the commodity spike.

 🤝 Deal Room

• LeBron James’ production company (the one behind The Kardashians series… yep, that one) is in talks to merge with Fulwell 73 – the company behind Carpool Karaoke. Go LeBron.

• Anglo American's coal portfolio sale is looking more like a yard sale rather than a one and done. It’s looking like Peabody may buy Anglo's smaller Capcoal and Dawson mines, leaving Stanmore and Glencore to battle it out for the prized Grosvenor and Moranbah North mines, while Yancoal will bid for the lot.

• Rumour has it that Italy’s Moncler, known for its puffer jackets, was eyeing a bid for British luxury brand Burberry. Moncler shot that down quickly—but, with Burberry’s share price down 40% this year, it could do with a pick-me-up.

• Cuscal, the Aussie payments infrastructure provider, is prepping for a $340m IPO, working the investor circuit to secure backing in a cautious market.

• Japan’s the new hot spot—deal flow is up 20% this year, and Aussie PE, super funds, and investment firms are all eyeing it. But in a market that still values tradition, with face-to-face meetings and formalities like business card exchanges, foreign investors need more than just deep pockets to win over the locals.

🧐 Wednesday Wisdom

🏗 Sector Specific

Diggers

• Snowy Hydro and Cedar Pacific are urgently calling for the Electrical Trades Union’s work bans to be lifted, as delays pile up on crucial NSW projects—like Snowy Hydro’s $950m gas power station, which is kind of important for keeping the lights on this summer. The ETU’s industrial action has already stalled over $25bn worth of projects.

• It’s bonus season again: Major pension funds aren’t thrilled about the hefty bonus packages being handed out to Fortescue’s top execs—think $4.6m and $5.46m worth of performance rights on top of their already impressive salaries. While Fortescue is seeking shareholder approval, it’s not legally bound by the vote outcome, so if shareholders say no, they’re still considering cash-equivalent incentives.

• Since when did private schools get a say in energy policy? Geelong Grammar is opposing Viva Energy’s proposed LNG import plant, citing environmental concerns for Corio Bay. With a network of influential parents, this opposition could have a real impact on the Victorian state government’s review of the project.

Fin

• CBA has hired News Corp to help launch Commbank Connect, its new media arm. The plan? To cash in on ad revenue by selling space in branches, on ATM screens, and through its mobile apps. And they’re not wasting time—Qantas, Kayo Sports, and Myer are already on board.

Tech & Media

• Crimson Education, the NZ-based online education platform helping students into top universities like Oxford and Ivy League schools, has hit unicorn status with a $1bn valuation after a $61m funding round. The company offers everything from mentoring and tutoring to admissions consulting and international high school qualifications.

• French and Dutch authorities raided Netflix offices in Paris and Amsterdam, kicking off a preliminary investigation into tax fraud and money laundering. This comes just after Netflix shelled out €55.8m (A$91.7m) to Italy in 2022 to settle a similar tax dispute.

Retail & Real Estate

• Who says employees’ strikes won’t make a difference? Boeing workers just scored a 38% pay rise after a 7-week strike that brought jet production to a screeching halt and put serious strain on the company’s finances.

🏘️ Word on the Street 

• While the Federal Police raids PwC headquarters, MinterEllison has swooped in to secure 7 PwC partners to its consultancy branch. Established in 2017, the Minters’ consultancy partnership now sits at 18 strong.