BHP makes fresh play for Anglo ahead of Teck vote

Good morning. Here's what happened overnight and what you need to know today.

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1.

BHP-Anglo saga: BHP has made a fresh takeover approach to Anglo American in recent days, Bloomberg reported citing unnamed people familiar with the matter. The move could disrupt Anglo’s proposed USD57 billion ($88.3 billion) all-share merger with Canada’s Teck Resources. The offer is reportedly a mix of cash and stock and structured more simply than BHP’s USD49 billion bid last year, which Anglo had rejected as too complex and undervaluing its business. The new approach also comes less than three weeks before Anglo and Teck shareholders vote on their deal on 9 December. Anglo has informed Teck of BHP’s bid, Bloomberg reported citing two of the sources. The merger, announced in September, has broad investor support and includes a USD330 million break fee for accepting a competing offer. Reuters noted the Anglo-Teck combination would produce about 1.2 million tonnes of copper annually, compared to 1.9 million tonnes from a potential BHP-Anglo merger, which would make the combo the largest copper producer. BHP, Anglo and Teck declined to comment. (Capital Brief)(Bloomberg)

2.

The Signal: The Albanese government is racing to legislate its streaming quotas in the final sitting week of 2025, as pressure mounts from the US and within Canberra. With only five days left in the parliamentary year, Arts Minister Tony Burke was expected late Friday to turn to the Greens to secure Senate support. The bill is scheduled for debate in the lower house on Tuesday and in the Senate on Thursday. Labor is expected to keep negotiating until the last minute, aiming to bypass an inquiry and avoid a political blow-up with the US. If passed, the legislation would come into effect on 1 January. Opposition is growing in the US, with the National Taxpayers Union and 12 other conservative and libertarian policy groups sending a letter to US officials urging them to discourage Australia from proceeding. Republican congressman Lloyd Smucker has publicly called for the government to “reverse course”. The Motion Picture Association also reiterated its longstanding concerns last month. Meanwhile, local media companies have engaged the government privately, warning the policy could drive up production costs and expose other reforms to US retaliation. (Capital Brief)

3.

Trust lending: Commonwealth Bank has joined Macquarie in scaling back lending to property investors using trust and company structures, amid growing concern about risky borrowing and a surge in speculative behaviour in the housing market. On Friday, CBA told brokers it would impose tighter restrictions, requiring a six-month loan or credit card history from new investor applicants using trusts. The decision came after Macquarie halted new lending to investors using those structures, citing emerging risks in its mortgage portfolio and a preference for dealing directly with individuals. Macquarie CEO Shemara Wikramanayake told Capital Brief the move reflected the bank’s focus on risk management and understanding its customers. Macquarie also pointed to a spike in TikTok videos promoting the use of trusts and companies to obscure leverage and boost borrowing power as a key reason behind its change. In a letter viewed by Capital Brief, the Property Investors Council of Australia warned that trusts were being used to circumvent responsible lending obligations. PICA chair Ben Kingsley said easy credit was fuelling speculative buying, which he described as unsustainable. Last week, APRA highlighted high-risk investor lending as a key vulnerability and said it may use macroprudential tools if needed. ASIC declined to comment on whether it had concerns. (Capital Brief)

4.

Putin's list: US, Ukrainian and European officials were in Geneva for closed-door talks on a controversial 28-point peace plan tabled by the US to end Russia’s war in Ukraine, and which was developed without Kyiv or its allies and includes many of Russia’s key demands. The plan reportedly requires Ukraine to cede territory, reduce its military and abandon NATO aspirations. Confusion over the plan’s origins escalated when senators critical of the plan said Secretary of State Marco Rubio told them it was “essentially the wish-list of the Russians”, and not what the US government was recommending. Rubio later denied that, saying the plan was US-authored, with input from both Russia and Ukraine. European leaders submitted a counter-proposal rejecting forced territorial concessions and proposing stronger security guarantees and a higher military cap, according to a document seen by Reuters. The US has reportedly threatened to withdraw all support from Ukraine if it does not accept the deal, ABC News reported. Meanwhile, Trump again accused Ukraine of showing “zero gratitude” for its efforts, prompting Zelenskiy to publicly thank him. (Bloomberg)(Reuters)(NYT)(ABC)

5.

Basically pushers: Meta shut down internal research after it found “causal” evidence that using Facebook worsened mental health, and internally acknowledged harmful impacts while publicly denying them, according to newly unsealed court filings in a US lawsuit. The plaintiffs’ brief, which was part of ongoing multidistrict litigation involving over 1,800 parties, alleges Meta misled users, parents and Congress, resisted safety changes that might harm growth, and permitted sex trafficking content with a policy requiring 17 violations before account removal. The filings reported by media cite internal documents and testimony, including from former Instagram head of safety Vaishnavi Jayakumar, who testified there was no specific way to report child sexual abuse content on Instagram in 2020 and described the 17-strike policy as “a very, very high strike threshold.” Other internal messages described Instagram as “a drug,” with one employee allegedly writing, “we’re basically pushers.” Meta allegedly declined to implement teen safety features, such as making accounts private by default, due to projected drops in engagement. Meta disputed the allegations in statements to media, calling them “cherry-picked quotes and misinformed opinions” and said it has introduced teen protections, including Teen Accounts and improved parental controls. A hearing is scheduled for 26 January. (Politico)(Reuters)(Time)(USA Today)

6.

DOGE disbanded: Donald Trump’s Department of Government Efficiency (DOGE) was quietly disbanded earlier this month with eight months left on its mandate, after failing to provide public proof of its claimed savings. Office of Personnel Management director Scott Kupor told Reuters the unit “doesn’t exist” and is no longer a “centralised entity”. Created by executive order in January 2025 under then Trump adviser Elon Musk, DOGE aggressively cut budgets, axed over 200,000 federal workers and claimed billions in savings, although multiple reports said the figures were inflated, overstated or unauthenticated due to a lack of public accounting. Musk had pledged to cut USD1 trillion. Musk left Washington in May after a public feud with Trump. His former staff now hold roles across the government, including at the new National Design Studio, led by Airbnb co-founder Joe Gebbia, who has been tasked with beautifying government websites. (Reuters)

7.

Beirut target: Israel carried out a rare airstrike on a southern Beirut suburb on Sunday, targeting Hezbollah’s chief of staff Ali Tabtabai. It was the first Israeli strike on Beirut since June and came nearly a year after a US-mediated ceasefire with Hezbollah. The strike hit a main road in the Haret Hreik/Dahieh area, according to media reports. Medical sources cited by Reuters said four people were killed and around two dozen wounded; Lebanon’s Health Ministry reported one dead and 21 injured. It was unclear if Tabtabai was among the casualties. An Israeli government spokesperson said the strike aimed to prevent Hezbollah from rebuilding military capabilities. Prime Minister Benjamin Netanyahu said Israel would continue acting against Hezbollah. Lebanon’s president called on the international community to "intervene with strength and seriousness to stop the attacks on Lebanon and its people." It comes as the ceasefire between Israel and Hamas in Gaza, in place since October 10, is reportedly holding despite continued Israeli airstrikes. Ambassador to the UN Mike Waltz said that at least 300 Palestinians have been killed since it began. (Capital Brief)(Axios)(AP)(Reuters)

8.

Climate deal? Brazil’s COP30 presidency secured a compromise climate agreement that avoids any reference to fossil fuels but calls for tripling climate finance for developing nations by 2035. The deal, achieved in overtime after two weeks of tense negotiations in Belém, drew objections from Colombia, Panama and Uruguay, who demanded language on transitioning away from fossil fuels. Colombia said it could not support a deal that “ignores science”. Sierra Leone’s climate minister criticised a new list of adaptation indicators as “unclear, unmeasurable, and in many cases, unusable”. COP30 president André Corrêa do Lago said side texts on fossil fuels and forests would proceed outside the main agreement due to lack of consensus. Nearly 200 countries endorsed the final text, which also launches a voluntary initiative to accelerate existing emissions pledges and a process to align trade policy with climate goals. The EU supported the deal but said it did not agree with its conclusion. The US did not attend. (Bloomberg)(Reuters)(AP)