Nine, News talks falter but revive Foxtel intrigue

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

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1.

Foxtel talks: Senior market sources told Capital Brief that Nine Entertainment engaged in exploratory talks with News Corp regarding a potential Foxtel deal, but discussions collapsed a few months ago over concerns about Nine's ability to fund any transaction. Neither Nine nor News Corp commented on the report, which came after News Corp chief executive Robert Thomson announced during the company's quarterly call with investors that it had fielded “third party” interest in the pay TV provider. John Buckley from Capital Brief reported senior figures from both sides privately downplayed the likelihood of a deal, with some casting doubt on its strategic value. It isn't the first time the two companies have explored merging their assets, having previously discussed a similar tie-up in 2019 and again in 2023. (Capital Brief)

2.

Trump hack: Donald Trump's 2024 US presidential campaign said it was hacked by foreign entities after news outlets received a vetting document on vice-presidential nominee JD Vance. In a statement to media, campaign spokesperson Steven Cheung suggested the hack was linked to Iranian actors, referencing a Microsoft report that last week described an Iranian attempt to breach a US campaign official's email. The claims followed a Politico report that an anonymous source had offered documents, including a report on Vance with “potential vulnerabilities.” Cheung said the documents, which were also received by The Washington Post, were obtained illegally to disrupt the election. Trump posted on social media that Microsoft had informed his campaign about the hack, blaming Iran. Iran denied the allegations. An intelligence official last month said foreign actors like Tehran and Moscow would seek to influence the US election, with Iran targeting Republicans and Russia aiming at Democrats. Meanwhile, Trump late last week said he’ll sit down with Elon Musk for an interview on Monday, and Vance said he supported Trump’s call for presidents to have a say in Federal Reserve Board policymaking decisions. (Capital Brief)(Reuters)(The Washington Post)(Politico)

3.

Cisco cuts: Cisco is set to announce a new round of layoffs, expected to impact thousands of employees, as it shifts its focus to growth in cybersecurity and AI, Reuters reported citing unnamed sources familiar with the matter. The layoffs are expected to be announced at the company's fourth-quarter results due Wednesday. The people cuts could exceed the 4,000 the company laid off in February, Reuters said. Cisco employed around 84,900 people as of July 2023, and has been struggling with weak demand and supply-chain issues in its core networking business. The company is diversifying through acquisitions like the USD28 billion ($42.55 billion) purchase of cybersecurity firm Splunk and a USD1 billion AI investment fund. (Reuters)

4.

Adani claims: US-based short-seller Hindenburg Research accused the head of India's market regulator SEBI, Madhabi Puri Buch, of previously holding investments in offshore funds linked to the Adani Group. In a statement to Reuters, Buch dismissed the claims as baseless, stating the investments in a fund referred to in the Hindenburg report were made in 2015, two years before her SEBI appointment. She said that her and her husband’s financial disclosures have always been transparent. The Adani Group also rejected the allegations, calling them "red herrings." Hindenburg's report, citing whistleblower documents, claims Buch and her husband had stakes in a Bermuda-based fund tied to Adani associates. Opposition parties in India are demanding a parliamentary inquiry. It comes after a previous 2023 Hindenburg report claiming improper use of tax havens and stock manipulation triggered a USD150 billion ($228 billion) sell-off in Adani shares and prompted an ongoing SEBI investigation. (Reuters)(The Financial Times)(Hindenburg Research)

5.

Sotherby’s deal: Abu Dhabi’s sovereign wealth fund ADQ and Sotheby's majority owner Patrick Drahi will jointly invest USD1 billion ($1 billion) in the auction house, with ADQ acquiring a minority stake, they said in a statement. The deal will help the company cut debt and fund expansion and is due to close by year-end. The Franco-Israeli entrepreneur acquired Sotheby’s in 2019 for USD3.7 billion and has shifted from his earlier stance against bringing in outside investors. Facing escalating debt on the estimated USD60 billion debt pile of his media and telecoms empire, Drahi has been selling, assets including French news channel BFM, RMC radio and video ad group Teads, but will retain majority control of Sotheby’s. The Financial Times reported speculation the deal might lead to a Sotheby’s opening in Abu Dhabi, given the Gulf states' growing influence in the art market. (Reuters)(The Financial Times)(ADQ statement)

6.

Biden’s concerns: In his first interview since ending his re-election campaign on 21 July, US President Joe Biden said he withdrew to avoid becoming a "real distraction" for Democrats but insisted he could still do the job despite concerns about his age and capacity. Speaking on CBS Sunday Morning, Biden said that defeating Donald Trump remained his highest priority, and that he was “not confident at all” that there will be a peaceful transition of power if Trump loses. He vowed to support Vice President Kamala Harris’s campaign and acknowledged earlier concerns that his candidacy could have harmed other Democrats. “A number of my Democratic colleagues in the House and Senate thought that I was going to hurt them in the races,” he said. “And I was concerned if I stayed in the race, that would be the topic… and I thought it’d be a real distraction.” Reflecting on his legacy, Biden said he regretted not taking more credit for his USD1 trillion infrastructure programme, calling the lack of promotion his "biggest mistake." (CBS news)

7.

Zelenskyy’s advance: Ukraine's President Volodymyr Zelenskyy acknowledged for the first time his country’s ongoing military incursion into Russia’s Kursk region, the deepest since Russia invaded Ukraine in February 2022. Ukrainian forces have advanced 30km into the region, occupying the town of Sudzha, despite Russian reinforcements, The Financial Times reported citing Ukrainian soldiers. In his late Saturday address, Zelenskyy indirectly acknowledged the operation, which has continued for six days, to “push the war out into the aggressor’s territory.” Over 76,000 civilians have been evacuated from Kursk, while Ukraine’s Sumy region has also seen evacuations. Analysts suggest Ukraine may be leveraging this offensive to strengthen its position in potential negotiations, amid ongoing struggles in eastern Ukraine. Russia rushed reinforcements to border regions and vowed a "tough response," while airstrikes in Kyiv killed two people, including a child, as Ukrainian air defences intercepted 53 out of 57 drones. (Associated Press) (The Financial Times)

8.

Gaza strikes: Israel issued new evacuation orders in Khan Younis in the southern Gaza Strip, forcing tens of thousands of Palestinians to evacuate amid tank shelling and ahead of a new raid targeting Hamas fighters, Reuters reported. The orders come amid international condemnation over an airstrike on a Gaza City school sheltering Palestinian families that killed almost 100 people over the weekend. The Israeli military told media outlets the strike had killed 19 militants, claimed the death toll numbers coming from Gaza were inaccurate, and said the evacuation orders were targeting areas used by Hamas militants. The attack drew sharp criticism from allies, including EU foreign policy chief Josep Borrell, who called it an unjustifiable “massacre.” Asked to react to the latest strike on a school, US presidential candidate Kamala Harris said, “yet again, far too many civilians have been killed,” as she called for an urgent hostage release and ceasefire deal. Meanwhile, Washington was set to send USD3.5 billion ($5.33 billion) in pre-approved weapons funding to Israel, as the US, Egypt and Qatar continue working on a ceasefire-for-hostages deal. Talks were set to resume on Thursday 15 August in Doha or Cairo. (Reuters)(Associated Press)