Twiggy halts hydrogen

👋 G’day

Today’s brief:

• Twiggy backtracks on green hydrogen projects amid uncertainty.

• A Tribunal clears solicitor over office romance + firing combo.

• And Breaking News: Federal Court expands its Court Dog Program.

Happy Friday!

We’ve got some killer insights this morning to close out your week 👇

PRACTICE POINTS

Cbus crackdown

• The trustee of the $94bn construction industry super fund Cbus, United Super, is under investigation by the regulator over possible breaches of superannuation legislation. Now APRA is whipping Cbus into shape, including by:

  • accepting a court-enforceable undertaking from Cbus to implement a comprehensive risk transformation program to tackle issues around risk managment

  • requiring Cbus to publish a rectification plan to address weaknesses in its governance and expenditure processes.

• ASIC is providing some extra help for Australian financial services and credit licensees. They’re proposing relief from reporting misleading and deceptive conduct breaches and certain contraventions of civil penalties where:

  • the breach is fixed within 30 days

  • affects fewer than five customers

  • the financial damage doesn’t exceed $500

  • the breach doesn’t contravene client money reporting rules, clearing and settlement rules.

• As the great Bob the Builder once said: Can we fix it? The Productivity Commission also asked that in its Housing Construction Productivity Paper. The paper examines the decades of poor productivity growth in the housing construction sector, offering 7 reform directions to boost efficiency. Key proposals include reducing regulatory burdens, speeding up approval processes, supporting innovation, and enhancing workforce flexibility.

WORD ON THE STREET

Kendrick’s no 1 fan

• Richard Niall, Victoria’s 13^th Chief Justice, isn’t like other judges. Alongside his legal prowess, he’s got a penchant for Japanese punk, a regular spot at the Meredith Music Festival, and a deep love for Wu-Tang Clan and Kendrick Lamar: AFR

• A tribunal has ruled that a solicitor who had an affair with a law firm employee and then fired her did not engage in misconduct. They do say office romances never ends well… Lawyerly

• KPMG expects approval for its license to launch a law firm in Arizona, and one top exec predicts US corporations will increasingly turn to the Big Four for legal work. Why? Their tech game is on another level, able to tackle massive data sets and multiple contracts. With their tech, you can “do large-scale data extraction from unstructured documents”. Watch out, Big Law: Bloomberg

TALKING POINTS

Court’s pup program

• Big news at the Federal Court: they’ve just expanded their Court Dog Program, adding three new pups to the Sydney, Parramatta, and Newcastle registries. If that’s not a reason to be an associate at the Federal Court, what is?

• The ASX has scrapped its controversial new governance standards, which would have required directors of listed entities to disclose their sexual orientation, religious beliefs, race, and socio-economic background. Wesfarmers CEO welcomed the decision, saying the proposed guidelines “went a bit too far”: Capital Brief, AFR

• Microsoft unveiled Majorana 1, a chip that could enable quantum computers to solve “meaningful, industrial-scale problems” in years, not decades. Powered by a topological superconductor, the chip controls Majorana fermions, a theorised subatomic particle that scientists have struggled to prove exists: Reuters

• Not so fast. RBA Governor Michele Bullock stressed that while inflation is heading in the right direction, the RBA's work isn't finished. She highlighted uncertainties within the global and domestic economy, including the possibility of a tight jobs market pushing up wages and inflation. The board remains cautious about further interest rate cuts to avoid stalling disinflation: AFR

TREASURY

DEAL ROOM

Real estate shake-up

• US property giant CoStar has made a $2.7bn bid for Domain, Australia’s second-largest real estate platform, marking the first big move for Greg Ellis as Domain's interim CEO. The bid eclipses Domain’s market cap of $1.9bn. Capital Brief also revealed CoStar acquired a 7.5% stake in Domiain from a single shareholder. Domain's board is now assessing the proposal, which would require FIRB approval. This move puts Nine Entertainment, Domain's owner, in a tough spot as it weighs its options, including possibly selling or taking Domain private: Capital Brief, AFR

• Peter Thiel-backed investment platform Syfe has thrown down a 28c per share bid for Self Wealth, outbidding Bell Financial Group’s offer by 12%. Syfe’s now got the green light for detailed due diligence to solidify its bid. Let the takeover battle begin: AFR

• Mayne Pharma Group announced it has entered into a SID with Cosette Pharmaceuticals Inc., under which Cosette will acquire Mayne for a cash bid of $7.40 per share. That’s a handsome 37% premium to a previous closing share price of $5.41. The deal totals $672m. G+T acts for Mayne Pharma, while Cosette has Corrs on its side.

• Brookfield sells its $330m Connect Central Sydney logistics estate to a Gateway Capital consortium, including Ontario Teachers’ Pension Plan and Korea Investment Corporation. This marks Sydney's largest logistics deal in five years. The 12.6-hectare site spans 69,000 square metres and is 75% leased, with a focus on last-mile storage. Gateway Capital aims for 11-15% returns by repositioning the asset and securing higher-quality leases: AFR

SECTOR SPECIFIC

Banks’ bonus backlash

🚜 DIGGERS

• Two major miners are rethinking their future projects. Rio Tinto has flagged the Tomago aluminium smelter's viability. It says power prices will make it unsustainable beyond 2028, and will decide on the smelter's fate in 6 months. Meanwhile, Twiggy’s Fortescue is hitting pause on its green hydrogen ambitions, delaying timelines for projects in Arizona and Gladstone. They’re blaming everything from Donald Trump and European policy uncertainty to Australia’s looming federal election: The Australian, AFR

• Meanwhile, Twiggy’s making moves elsewhere. Wyloo Metals is set to take control of Hastings' rare earths mine, in exchange for wiping out a $200m debt owed by Hastings—effectively settling last year’s debt drama, when Wyloo threatened to push Hastings into administration. It also means Wyloo’s now in control of Hastings' assets at a far cheaper price than if it had gone for a full takeover: AFR

🏦 FIN

• The House of Reps Economics Committee is raising eyebrows over big bank bonuses, warning that the return of risky remuneration practices could lead to “inappropriate conduct” and worse outcomes for consumers. If the industry doesn’t clean up its act, the government may legislate bonus caps. This all kicked off last year when CBA decided to jack up its home loan bankers’ bonuses from 50% to 80% of base pay: AFR

• The number of companies listed on the ASX is shrinking, with just 2,113 companies on the board in January 2025, down from 2,187 a year earlier, suggesting investors are favouring private investments over IPOs: ASX

🏡 RETAIL & REAL ESTATE

• Mirvac reports a 51% jump in new home sales over the December half, driven by demand for developments in Sydney’s outer suburbs like West Pennant Hills and Milperra. Despite a 40% slump in lot settlements, the company’s sales momentum and $830m Highforest project signal a recovery in the housing market. Shares rose 5.3%: AFR

• Charter Hall sold Lake Macquarie Square in Mount Hutton for $122.5m in an off-market deal, with Revelop buying at a 1.2% premium to book value. Charter Hall acquired the asset for $33 million in 2010, investing an additional $60 million in refurbishments. Revelop has been active recently, securing two Sydney retail investments in the past six months: Real Estate Source

📱 TECH

• WiseTech shares are in a trading halt ahead of a governance review update involving former CEO Richard White. White transitioned to a consultancy role last year following allegations he exchanged business advice for sex. The halt will last until Monday, 2 weeks after the company revealed it had received 2 additional complaints about White: The Australian

• Xero and software engineer Ann Montagu-Navarrete have been ordered by the Federal Court to enter mediation talks in her Fair Work lawsuit. Montagu-Navarrete alleges Xero breached the Fair Work Act by paying higher salaries to two male colleagues and subjecting her to systemic bullying. Xero denies the breaches and has outlined its defence in recent documents: Capital Brief

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