Macquarie shuts US debt capital markets desk

Good morning, it's Keira here in Sydney. Here's what you need to know to start your day.Today's must-reads: Macquarie shuts US debt capital

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Good morning, it's Keira here in Sydney. Here's what you need to know to start your day. Today's must-reads: Macquarie shuts US debt capital markets arm  Brookfield bids for Insignia Allianz and IAG mull insurer takeover

What's happening now

Macquarie is shuttering its US debt capital markets arm to focus resources on private credit, according to people with knowledge of the matter. The decision will impact around 80 staff, with some being moved to other roles and others leaving the firm. Brookfield Capital Partners entered the bidding frenzy for Insignia Financial, joining Bain Capital and CC Capital Partners with an offer for the Australian wealth management firm.  Allianz and Insurance Australia Group are considering bidding for the insurance arm of The Royal Automobile Club of Western Australia, according to people familiar with the matter. Australia's new bond attracted a record A$83 billion worth of bids as central bank policy easing, moderating inflation and trade tensions spurred a global rush for fresh issuance.  Australia's sovereign wealth fund is tilting its investment focus to domestic assets, such as infrastructure, private credit, and data centers, to seek inflation protection and adapt to a trend of global protectionism. US private credit manager Monroe Capital is expanding in Australia to tap the nation's fast-growing A$4.1 trillion pensions pool, opening of a new office in Sydney. The firm has appointed Galen Fu as director, business development.

What happened overnight

Stocks rose as gains in most major industries overshadowed underwhelming earnings from some tech heavyweights, while bonds climbed after a weak reading on US services. The S&P 500 advanced 0.2%. Australian equity futures ticked higher.  China's antitrust watchdog is examining Apple's policies, including taking a cut of up to 30% on in-app spending and barring external payment services and stores. If Apple resists making changes, the government may launch a formal investigation, which could pose challenges for Apple in its most important market after the US. Southeast Asian economies, often seen as beneficiaries of the US-China trade war, face a challenging outlook due to the erosion of faith in the free flow of goods and services, writes Bloomberg Opinion's Daniel Moss. Donald Trump suggested on Tuesday the US should "take over" and redevelop the Gaza Strip with Saudi Arabia's help. While Saudi's rejection has been swift, sources say that Crown Prince Mohammed bin Salman sees that a bargain with Trump could be an opportunity to get what he wants — a defense, technology, and nuclear cooperation agreement with the US.

What to watch

• December import and export data, 11:30 a.m.  • December trade balance, 11:30 a.m.

One more thing...

One of the world's leading providers of climate standards,  The Science Based Targets initiative, said it's looking for new sources of funding after the Bezos Earth Fund stopped providing support at the end of last year.  Photographer: Yuri Gripas/Abaca

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