Monday, February 24, 2025

Wisetech founder triumphs as board collapses

Good morning. It's Angus here in Sydney. Here's what you need to know to start your working day.Today's must-reads:• WiseTech's billionaire
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Good morning. It's Angus here in Sydney. Here's what you need to know to start your working day.

Today's must-reads:
• WiseTech's billionaire founder triumphs against board
• Perpetual chases wealth-management sale
Cost cuts loom at lithium and nickel miners

What's happening now

WiseTech Global's largest shareholder Richard White appears to have won a power struggle after most of the board quit in a disagreement over the billionaire's role at the company. Four of six directors including Chairman Richard Dammery will leave Feb. 26 due to "intractable differences" around White's position. The same day, White will present WiseTech's results as 'Founder and Founding CEO.' 

Perpetual said it will pursue the sale of its wealth management business after rejecting the latest offer from KKR, as the financial services firm attempts to lure new offers. Perpetual will maintain its push to establish more autonomous units. It will also implement a new operating model for its asset management division and deliver an improved cost-reduction program. 

A wave of cost cutting and potential consolidation looms for lithium and nickel miners after a poor earnings season. Three Australian-based lithium miners — PLS, IGO and Mineral Resources — each posted their largest first-half losses in more than six years and delivered no dividends to shareholders. 

Australia's drive to win over the Trump administration kicked off in Washington, with the nation's $2.6 trillion private pension industry hosting top US officials and executives including Treasury Secretary Scott Bessent and JPMorgan CEO Jamie Dimon. Starting in Australia's embassy in Washington and run over four days, the so-called Super Summit also takes in New York.

As the Philippines prepares to build an arbitration case against China over alleged breaches of international law in the South China Sea, other nations should join the cause or risk being vulnerable to China's expansionist ambitions, writes Bloomberg Opinion's Karishma Vaswani.

What happened overnight

Stocks stabilized after a late-week rout, with traders gearing up for Nvidia Corp.'s earnings and key inflation data this week. More than 300 companies in the S&P 500 advanced Monday — despite a slide in most big techs — as the US benchmark reclaimed its 6,000 mark. The US benchmark has gone 35 sessions without posting consecutive declines of more than 1% — its longest such streak since late December.

President Donald Trump deepened Washington's split with allies over Ukraine, withdrawing the US's condemnation of Russia's 2022 invasion at the United Nations and among Group of Seven nations. Trump said on social media he's in "serious discussions" with Russian President Vladimir Putin on ending the war. He also said Ukrainian President Volodymyr Zelenskiy may travel to Washington as soon as this week to sign a deal over natural resources.

Apple, seeking relief from US President Donald Trump's tariffs on goods imported from China, will hire 20,000 new workers and produce AI servers in the US.  The company plans to spend $500 billion domestically over the next four years, which will include work on a new server manufacturing facility in Houston, a supplier academy in Michigan and additional spending with its existing suppliers.

The UK has imposed sanctions on 10 China-based companies it says are enabling Russia's defense industry, as part of its largest package of economic measures against Vladimir Putin's regime since 2022. The fresh sanctions, which also apply to some firms in Thailand and India, target those who support Russia's military regime and the supply networks it relies on,

The Trump administration has taken aim at China with a series of moves involving investment, trade and other issues that risk worsening ties between the countries. In recent days, President Donald Trump has rolled out a memorandum telling a key government committee to curb Chinese spending on tech, energy and other strategic American sectors. The US also proposed fees on the use of commercial ships made in China.

JPMorgan Chase & Co. is dramatically ramping up its direct-lending effort, setting aside an additional $50 billion to capture a bigger chunk of the fast-growing market. The firm has teamed up with a group of co-lending partners, which have allocated nearly $15 billion more to the effort as well.

Starbucks is eliminating 1,100 corporate jobs in a move aimed at increasing efficiency and quickly enacting changes to revitalize the company. The cuts represent about 7% of the global employee base working outside of company-owned stores.

What to watch

• 1:45 p.m. RBA Assistant Governor (Financial System) Brad Jones speaks at industry forum
Woodside full-year results

One more thing...

Premier League team Manchester United is to cut up to 200 jobs, including reducing its London office, in an attempt to return to profitability after five years of losses.

The Unity Trinity statue outside the Old Trafford football ground, home of Manchester United Photographer: Anthony Devlin/Bloomberg
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