ANZ’s costly clean up

Market overview

The ASX 200 closed flat at 8,882 capping off a volatile week. Gold miners stole the spotlight as bullion rebounded from a four-day slump. Investors also cheered news of a Trump-Xi trade truce which lifted hopes for stability… at least for now. The banks chipped in too with CBA up today keeping the broader market afloat.

But the good news stopped there. Retail stocks dragged after another round of weak updates as consumers continued tightening their belts. Meanwhile, corporate drama dominated the headlines: Mayne Pharma sank 31.5% after its takeover hit a regulatory wall and Steadfast dropped nearly 10% after its CEO stood aside amid misconduct allegations.

It was a fitting end to a week that summed up the market mood – flashes of optimism, bursts of fear and investors still searching for something solid to hold onto.

ANZ braces for billion dollar blow

The result: ANZ has warned of a $1.1 billion after tax hit in its upcoming results – the first under new boss Nuno Matos – as the bank draws a line under years of underperformance. The charges stem from 4,500 job cuts, a $240 million ASIC settlement and the closure of Cashrewards, along with impairments to legacy investments including a $285 million write-down in Indonesia. The total bill: a costly but calculated reset.

Why it matters: Matos is wasting no time reshaping ANZ. Since taking the reins in May, he’s been on a mission to simplify the business, exit low performing assets and rebuild credibility after a decade of lagging the other big banks.

These one off hits don’t affect ANZ’s capital ratios but they mark the start of a high stakes turnaround story. Investors will be asking one question: can Matos turn pain today into returns tomorrow?

What’s next: The real test comes November 10, when ANZ delivers its half-year results. The spotlight will be on early signs of progress, especially whether Matos’ cost cutting drive is beginning to lift margins and restore faith in ANZ’s strategy.

Mayne’s takeover pain

The result: Mayne Pharma crashed 30% after Treasurer Jim Chalmers warned that its proposed takeover by U.S.-based Cosette Pharmaceuticals “would be contrary to the national interest.” The deal, already tangled in months of legal and regulatory setbacks, is now hanging by a thread. FIRB has delayed its final ruling until December, while Cosette – facing pressure to prove its commitment – has asked for an earlier verdict.

Why it matters: For shareholders, it’s the latest blow in a drawn out saga. Treasury’s main concern is that Cosette could shutter Mayne’s Adelaide manufacturing hub, a key site for Australia’s pharmaceutical R&D. Without the deal, Mayne remains on uncertain footing, juggling declining margins and rising competition in generics. What looked like an exit strategy could now become a fight for survival and investors are pricing in the risk.

What’s next: The FIRB decision is due by 1 December though Cosette is pushing for an earlier call. In the meantime, Mayne is scrambling to reschedule court hearings and reassure markets it still has a future if the deal falls through.