Qantas faces $100M payout 🛩

G’day.  

Welcome to Point Blank – here’s the latest ☕️

 💼 Practice Points

• Qantas faces $100m-plus bill as the Federal Court has ordered the airliner to compensate hundreds of illegally sacked workers, with individual payments capped at a year's salary and "non-economic loss" amounts between $30k and $100k.

• Former Noumi Limited CFO has been fined $100k by ASIC and disqualified for four years of severe breaches of continuous disclosure obligations, inaccuracies in inventory valuations and overstated revenues and profits.

• The AFR urges the Senate to reconsider the proposed superannuation tax, deeming it “grossly unfair” to tax unrealised gains that may disappear in subsequent years. This policy risks disincentivising riskier investments and may prematurely compel individuals to liquidate assets.

• Australia’s Privacy Commissioner warns that using personal data in generative AI tools like ChatGPT could violate privacy laws. This warning follows the OVIC finding that a child protection worker improperly disclosed sensitive information to ChatGPT while drafting reports, resulting in a breach of privacy laws.

 📢 Talking Points

• An Indigenous elder scolds Victorian Senator Lidia Thorpe for her ‘disrespectful’ outburst at King Charles. The Senator heckled: "You are not my King" at their Majesties after a clash with police. The Senator then blamed a staffer for her now-deleted Instagram story of a decapitated King. Politicians on both sides of the aisle have condemned the protest, while a First Nations man argues it is a last resort.

• Day one of one of the biggest class actions in English history goes underway, as 620,000 Brazilians seek £36 billion ($70bn) in reparations from BHP. Pogust Goodhead, representing the claimants, accused the miner giant of being “driven by a relentless pursuit of profits” at the expense of safety.

• Australia is to buy $7bn worth of long-range missiles from the US in a deal approved by the US Congress. AU Defence Minister claims: “We live in the greatest arms race in our region since 1945”. Australia spends roughly 2% of its GDP on defence.

• The Albanese government is raking in hefty fees for ministerial access—$1,500 to $5,000 per person and up to $18,000 for a table of eight with a VIP guest. While reforms to political donations are on the horizon, these fees currently dodge donation regulations.

 🏦 The Treasury

 🤝 Deal Room

• Cuscal (owned by MasterCard, Bendigo Adelaide Bank and most big credit unions) is seeking to raise $338m from its ASX listing.

• Asia is set for its busiest week of listings in over two years, driven by companies seeking to raise capital before potential market uncertainties linked to the upcoming US election.

• Auckland Council may sell its $1.1bn stake in Auckland Airport.

• Market experts warn that Minerals Resources may need to raise $1.5bn to $2bn worth of equity to combat declining share price after the company board began investigating undeclared payments made to companies owned by its tycoon founder, Chris Ellison, sending its shares down as much as 14%.

🏗 Sector Specific

Diggers

• Australian Renewable Energy Agency warns that solar power costs must drop by about two-thirds for green hydrogen to become economically viable. Meanwhile, energy executives warn that nuclear power won't replace aging coal plants in Australia in time, emphasising the urgent need for renewables investment.

• BHP struggles to meet its copper production targets as its SA Olympic Dam mine faces a 14-day shutdown, potentially resulting in a 12k tonne production loss.

• The Victorian Labor government faces scrutiny for concealing deals with AGL and EnergyAustralia to extend coal power operations despite committing to 95% renewables by 2035.

• Worksafe has slapped Twiggy's Minderoo Foundation with an $8bn improvement notice after an employee took extended leave due to psychosocial trauma. Worksafe also brings actions against three mining companies over worker deaths, with potential fines totalling up to $3.5 million.

Tech & Fin

• AMP will launch a business bank in early 2025, targeting start-ups, sole traders, and small businesses to diversify beyond low-margin mortgage lending.

• WiseTech shares tumbled after its board announced it is investigating media allegations against billionaire co-founder and CEO Richard White regarding historical inappropriate conduct, prompting Australian super funds like AussieSuper and Future Fund to consider ditching their holdings.

Retail & Media

• Recent court docs lodged by the ACCC reveal a pattern of Woolies and Coles inflating prices before offering "discounts".

• Deep-rooted cultural issues at Nine and the failed Fairfax merger are driving calls for a split of the TV empire.

🏘️ Word on the Street 

• Top US law firm Skadden closes its Shanghai office, highlighting a broader trend of US law firms downsizing in China amidst economic uncertainties and geopolitical tensions.