Category: Business

• The King Island Dairy failure is attributed to a flawed business model and inability to compete in an ultra-competitive market, according to local cheesemakers.
• Saputo, which acquired King Island Dairy in 2019, announced its closure by mid-2025 after failing to find a buyer, citing the brand’s misalignment with its industrial-scale focus.
• The closure is expected to have significant negative impacts on the local community, which relies on the dairy for employment and economic stability.
• Industry experts suggest that a shift in consumer habits and rising costs have pressured regional manufacturers, contributing to King Island Dairy’s decline.
• There are calls for a new buyer to invest in the brand’s heritage and quality, with hopes that a different marketing strategy could revive the business.

https://www.abc.net.au/news/2024-09-06/why-did-tasmania-king-island-dairy-cheese-fail/104318364

• Gold Coast apartment approvals face significant challenges, with over 53% of approved projects at risk of being scrapped or delayed due to rising construction costs.
• A report indicates the supply of new apartments in the Gold Coast is expected to decrease, potentially dropping from 1,900 units in 2025 to 1,400 units in 2026.
• The escalating costs of construction materials and labor are major factors affecting the housing market, with some materials increasing in price by over 40%.
• The Gold Coast is projected to see a population increase of 388,000 over the next 22 years, necessitating the construction of 161,700 new dwellings, with apartments making up 62% of that requirement.
• Housing diversity is suggested as a solution to the housing crisis, advocating for more varied types of housing beyond high-rise apartments to accommodate different needs.

https://www.abc.net.au/news/2024-09-06/new-gold-coast-apartments-at-risk-of-being-scrapped-or-delayed/104318206

• RBA inflation costs speech by governor Michele Bullock will address the impact of high inflation on the economy.
• The Australian share market is expected to open flat, following significant losses on Wall Street.
• Wall Street’s main indices, including the S&P 500 and Nasdaq Composite, experienced further declines amid a weakening jobs market.
• Australia is nearing a critical gas supply shortfall, prompting plans to become a gas importer for the first time.
• The Australian economy’s growth is stagnant, with per capita recession and living standards declining for 18 months.

https://www.abc.net.au/news/2024-09-05/asx-markets-business-live-news/104313084

• Wall Street’s plunge and Nvidia wipeout have led to a significant drop in the ASX, with the Australian sharemarket sharply lower amid global economic slowdown concerns.
• The S&P/ASX 200 fell 1.8%, with all sectors in decline, particularly energy, mining, and IT, which saw losses between 2.4% and 3%.
• Australia’s GDP growth slowed to just 0.2% for the June quarter, raising fears of recession-like conditions as consumer spending decreases.
• Wall Street experienced steep losses, with the S&P 500 down over 2%, driven by fears of economic weakness and significant declines in tech stocks like Nvidia.
• The Australian dollar weakened to 67.02 US cents, while traders anticipate potential Federal Reserve rate cuts in response to economic indicators and rising unemployment rates.

https://www.smh.com.au/business/markets/asx-set-to-tumble-as-wall-street-plunges-20240904-p5k7no.html

• ASX Wall Street sell-off has led to expectations of a significant decline in the Australian share market following heavy losses in the US markets.
• Wall Street experienced its largest drop since early August, driven by weaker-than-expected manufacturing data raising concerns about the US economy.
• The Australian market is trading sharply lower, with all sectors declining, particularly materials, industrials, and information technology.
• Economic analysts predict weak GDP growth figures for the June quarter, with estimates ranging from 0.1% to 0.3%, indicating a sluggish economic environment.
• Investor anxiety is heightened as markets await crucial US economic readings, including the monthly jobs report, which may influence future interest rate decisions.

https://www.abc.net.au/news/2024-09-04/asx-markets-business-news-live-updates/104303652

• ASX live updates today indicate a decline despite a positive performance on Wall Street, driven by strong US consumer spending and moderate inflation.
• The ASX 200 opened down 0.5%, with widespread selling affecting all sectors except energy, while casino operator Star Entertainment faces a trading halt due to financial reporting issues.
• National home prices rose by 0.5% in August, but growth momentum is slowing, with supply and demand becoming more balanced according to CoreLogic.
• The August results season has shown a significant number of earnings downgrades, leading to a reduction in growth forecasts for FY25, particularly in Communications and Healthcare sectors.
• Upcoming economic data releases include Q2 business indicators and GDP figures, with expectations of subdued growth amid ongoing challenges in various sectors.

https://www.abc.net.au/news/2024-09-02/asx-markets-business-news-live-updates/104297142

• CoreLogic house price data indicates that while Australian home values are rising, the growth rate is slowing down.
• The median house price increased to $802,357 in August, marking the 19th consecutive monthly rise.
• House price trends vary across capital cities, with some experiencing increases and others declines, highlighting a “multi-speed market.”
• Economic factors, including potential cash rate reductions and tax cuts, may influence future housing demand but affordability remains a significant constraint.
• Rent growth has stabilized, with national rent values unchanged for two months, attributed to decreased net migration and an increase in household sizes.

https://www.abc.net.au/news/2024-09-02/house-price-data-shows-values-rising-more-slowly/104291298

• The Rebel Sports litigation scandal involves Super Retail Group facing serious allegations from former top lawyers, potentially leading to a $50 million liability.
• CEO Anthony Heraghty has been accused of misconduct, including an affair with HR head Jane Kelly, which has raised concerns about governance and workplace culture.
• Allegations include a toxic work environment, bullying claims, and improper use of company funds, affecting employee morale and reporting.
• Former chief legal officer Rebecca Farrell claims her compliance role was undermined due to the alleged misconduct, leading to her eventual sick leave.
• Super Retail’s board, facing scrutiny, has committed to defending the legal claims while dealing with the fallout from the allegations and potential impacts on investor confidence.

https://www.smh.com.au/business/companies/behind-the-fight-club-clause-the-litigation-rebel-sports-bosses-don-t-want-to-talk-about-20240820-p5k3sm.html

• Air taxis south-east Queensland are being developed by businessman John Wagner in collaboration with Skyports, aiming for operation before the 2032 Brisbane Olympics.
• Wagner’s initiative focuses on constructing ports for electric vertical take-off and landing (eVTOL) aircraft at strategic locations around Brisbane.
• Companies like Wisk are actively pursuing certification for their air taxi technologies in both the US and Australia, emphasizing safety and reliability.
• The market for air taxi services is projected to grow, with an estimated 750,000 annual trips by 2043, driven by demand for efficient urban transport.
• Public acceptance and pricing will be crucial for the success of air taxis, as initial use may cater primarily to affluent individuals due to cost considerations.

https://www.abc.net.au/news/2024-09-01/john-wagner-invests-in-future-of-air-taxis/104285980

• Summer blackout threat eases as AEMO downgrades warnings about power shortages due to new generation and storage projects.
• AEMO emphasizes the importance of timely delivery of new projects to maintain reliability in the electricity system.
• The outlook has improved with 5.7 gigawatts of new generation and storage developments, including significant contributions from solar and battery projects.
• South Australia faces potential risks as it prepares to lose key gas plants in the coming years, while coal plants are also set to retire.
• Analysts urge caution regarding AEMO’s forecasts, suggesting they should not be viewed as definitive predictions of imminent blackouts.

https://www.abc.net.au/news/2024-08-29/australian-summer-blackout-threat-eases/104282206

• Woolworths plans to sell deforestation-free beef starting at the end of 2025, updating its sustainability target from net-zero deforestation.
• The retailer aims to work with farmers to define “deforestation-free” in the Australian context, applying this policy to various products including beef and palm oil.
• Woolworths emphasizes the importance of sustainable sourcing and adherence to land management laws for its suppliers.
• Cattle Australia supports the initiative, highlighting that Australian farmers already comply with stringent vegetation management laws.
• Conservation groups view this commitment as a significant step towards enabling consumers to make sustainable food choices, contrasting it with Coles’ net-zero deforestation target.

https://www.abc.net.au/news/2024-08-28/supermarket-commits-to-deforestation-free-beef/104282120

• ASX Woolworths financial results reveal a lower profit for 2024, primarily due to a $1.5 billion impairment in its New Zealand supermarkets.
• The Australian share market opened lower despite a positive close on Wall Street, with the ASX 200 down 36 points.
• Woolworths reported a 93.3% decline in after-tax profit, totaling $108 million, despite a nearly 6% increase in revenue.
• The supermarket’s performance was affected by rising wage costs, which increased by 19% over the last two years, outpacing sales growth.
• Woolworths remains optimistic about future improvements, citing better customer scores and item growth, though challenges persist in the trading environment.

https://www.abc.net.au/news/2024-08-28/asx-markets-business-news-live-updates-28-august/104277086

• ATS acquires Avidity Science, completing the acquisition of a designer and manufacturer of automated water purification solutions for biomedical and life science applications.
• The definitive agreement for the acquisition was announced on September 22, 2023.
• Avidity Science is recognized for its growth in the water purification sector.
• This acquisition aligns with ATS Corporation’s strategic expansion in the life sciences market.
• The announcement highlights ATS’s commitment to enhancing its product offerings in biomedical applications.

https://www.news-medical.net/news/20240827/ATS-completes-acquisition-of-Avidity-Science.aspx

• Coles reports higher profit with an 8.3% rise in full-year net profit to $1.1 billion, leading to increased dividends.
• The S&P/ASX 200 index saw a slight increase of 0.1% amid mixed results from major companies.
• Energy and mining sectors performed well, offsetting losses in six other sectors, particularly technology.
• Woodside and BHP also experienced gains following better-than-expected profit results.
• Property services firm Johns Lyng Group and jewellery retailer Lovisa faced significant declines despite some companies reporting strong profits.

https://www.afr.com/markets/equity-markets/asx-to-rise-bhp-coles-top-results-agenda-20240827-p5k5j8

• Wall Street Powell speech is causing US stocks to slip as investors prepare for insights on interest rates from the Federal Reserve Chair.
• The ASX has opened lower, losing 23 points or 0.3%, with most sectors in negative territory, indicating a potential end to its recent winning streak.
• ANZ shares dropped 0.7% due to a regulatory announcement requiring additional capital reserves, while other major banks showed slight gains.
• US economic data reveals a mixed outlook, with unemployment claims rising slightly and the manufacturing sector contracting, while services business growth accelerates.
• Despite overall market declines, some companies like Peloton and Zoom reported better-than-expected profits, contributing to stock fluctuations on Wall Street.

https://www.smh.com.au/business/the-economy/asx-set-to-slip-as-wall-street-weakens-ahead-of-powell-speech-20240823-p5k4nm.html

• ASX Medibank BoQ dividends see Medibank increasing its dividend by 13.7% amid a 14.1% rise in net profit for fiscal 2024.
• ASX futures are up 0.35%, tracking gains from US stocks on expectations of a rate cut.
• Bank of Queensland plans to cut approximately 400 jobs as part of a restructuring effort, incurring a $25 million to $30 million charge.
• Super Retail reports record sales of $3.9 billion and declares a special dividend of 50¢ per share.
• Megaport shares drop 15% after missing profit expectations, while Collins Foods and G8 Education also face significant declines in share value.

https://www.afr.com/markets/equity-markets/asx-to-rise-super-retail-medibank-whitehaven-coal-to-report-20240822-p5k4bi

• Wall Street ASX gains results as US stocks remain steady following strong profit reports from major companies.
• The Australian sharemarket opened higher, with the S&P/ASX 200 gaining 23.30 points to 8033.80, marking nine consecutive positive sessions.
• Whitehaven Coal led large cap advancers, up 4.3%, while Medibank was the biggest decliner, down 2.6%.
• In the US, the S&P 500 rose 0.4%, boosted by strong earnings from retailers like Target and TJX, despite concerns over consumer spending.
• Federal Reserve officials are expected to cut interest rates next month, contingent on cooling inflation, as the job market shows signs of slowing.

https://www.smh.com.au/business/markets/asx-set-to-rise-as-wall-street-advances-on-results-20240822-p5k4b0.html

• Australia-Asia Power Link project by SunCable has received environmental approval from the Albanese government, marking a significant step forward.
• The project includes a 10-gigawatt solar farm and an 800-kilometre transmission line to transport electricity from the Northern Territory to Singapore.
• Approval was granted by Minister for the Environment and Water Tanya Plibersek, with strict conditions to protect local biodiversity.
• A final investment decision for the project is anticipated by 2027, despite concerns about its long-term profitability.
• The project is expected to create 1,750 construction jobs and 350 ongoing positions, contributing to Australia’s renewable energy goals.

https://www.abc.net.au/news/2024-08-21/suncable-receives-environmental-approval-for-power-link-project/104250094

• Supermarket price inquiries are ongoing, but their effectiveness in helping customers at the check-out remains uncertain.
• National and state committees are investigating rising grocery costs, with costs continuing to exceed inflation rates.
• The federal government plans to enforce the Food and Grocery Code to protect suppliers, following recommendations from a senate committee.
• Multiple inquiries have highlighted the need for transparency in pricing, but no specific recommendations have been made to directly aid consumers facing high grocery bills.
• A significant portion of Australians report struggling to afford basic grocery items, indicating a pressing need for increased competition in the supermarket sector.

https://www.abc.net.au/news/2024-08-21/supermarket-inquiries-impact-on-customers-grocery-bills/104246438

• ASX S&P 500 rise indicates that Australian shares are set to open higher, following a strong performance in the US market.
• The S&P 500 has risen for eight consecutive sessions, closing 1% higher, reflecting investor optimism regarding potential Fed rate cuts.
• The S&P/ASX 200 index has surpassed 8000 points, recovering over 4.5% since earlier sell-offs.
• Dexus shares plummeted 7.3% after reporting a significant statutory loss, while Reliance Worldwide Corporation saw an 8.9% increase due to better-than-expected results.
• Monadelphous reported a 16% increase in annual net profit, and Baby Bunting shares surged 15.1% despite cutting its final dividend.

https://www.afr.com/markets/equity-markets/asx-to-rise-s-and-p-500-rises-for-eighth-session-in-a-row-20240820-p5k3nq

• Iron ore price slump due to China’s economic slowdown could significantly impact WA’s budget, potentially costing $3 billion.
• WA’s government has prepared for price volatility by maintaining conservative budget forecasts and banking surpluses in recent years.
• Despite the decline in iron ore prices, experts believe WA’s overall economy remains strong and well-positioned to handle the downturn.
• Economic diversification from iron ore dependency is essential, with calls for investment in processing, manufacturing, and new markets.
• The cooling iron ore prices may benefit WA’s housing market by allowing skilled workers to return, easing labor shortages in construction.

https://www.abc.net.au/news/2024-08-20/wa-braces-for-iron-ore-price-slump-as-china-demand-reduces/104243872

• SMSF property investment involves understanding compliance requirements and exploring strategic opportunities, as discussed in an upcoming webinar.
• The webinar is scheduled for Thursday, 22 August 2024, at 11:00 am AEST and includes a Q&A session for attendees.
• Participants can join without downloading software, as the webinar is accessible through modern web browsers.
• Garth, a professional with over 20 years in the Australian Superannuation industry, will lead the session, providing valuable insights and support.
• SuperGuide emphasizes that all information is general and recommends seeking personal financial advice before making investment decisions.

https://www.superguide.com.au/smsfs/buying-property-in-an-smsf

• Bundaberg Brewed Drinks has made a sad announcement regarding the death of co-founder Lee Fleming.
• Lee Fleming, who co-founded the company in the 1960s with her husband Cliff, passed away at the age of 82.
• The company expressed its deep sorrow and highlighted her passion and kindness in contributing to the success of Bundaberg Ginger Beer.
• Under her leadership, the company expanded internationally, with products now available in over 60 countries.
• Bundaberg Brewed Drinks has become a major employer in Queensland, with a workforce of 240 and a recent investment in a $150m ‘super brewery’ to enhance production.

https://www.dailymail.co.uk/news/article-13752195/Bundaberg-ginger-beer-Lee-Fleming.html

• DIY cheesemaking has transformed into a thriving dairy business for a South West WA couple who started making cheese during COVID lockdown.
• David Doepel and Barbara Connell purchased a historic farm with a disused dairy, turning it into an artisanal cheese factory.
• The couple emphasizes the importance of time, investment, and learning from mistakes in their cheesemaking journey.
• They source milk from a local dairy farmer and use a 500-litre cheese kettle for production, ensuring handmade quality.
• Their venture not only keeps them engaged in retirement but also strengthens their connection to the community and local food sourcing.

https://www.abc.net.au/news/2024-08-18/cheesemaking-sparks-new-career-south-west-farmers/104227696

• Fossil fuel lending ban implemented by Commonwealth Bank targets companies without genuine emissions reduction plans, pressuring other banks to follow.
• The bank will no longer provide loans to fossil fuel firms not aligned with the Paris Agreement, having already reduced its fossil fuel lending by 92% from 2018 to 2022.
• CBA’s new policy is seen as a significant victory for climate advocacy groups, potentially influencing the lending practices of other major Australian banks.
• Transition plans are central to CBA’s strategy, requiring clients to outline credible emissions reduction strategies to qualify for loans.
• Other banks like ANZ and Westpac are also adjusting their policies, indicating a growing trend towards responsible lending in the fossil fuel sector.

https://www.abc.net.au/news/2024-08-17/cba-stops-lending-to-climate-culprits/104219812

• Wall Street shopping data indicates a strong US economy, driven by increased consumer spending, leading to significant gains in stock markets.
• The S&P 500 rose 1.6%, marking its fourth-best day of the year, while the Dow Jones and Nasdaq also saw notable increases.
• Positive reports on retail spending and unemployment benefits contributed to optimism about a potential economic “soft landing” despite previous concerns.
• Major companies like Walmart and Deere & Co. exceeded profit expectations, boosting market confidence and stock prices.
• Global stock markets, including Asia and Europe, responded positively to the US economic signals, with Japan’s Nikkei and the UK’s FTSE 100 both rising.

https://www.smh.com.au/business/markets/asx-set-to-jump-as-wall-street-bounces-on-bright-economic-data-20240816-p5k2v5.html

• ASX200 inflation trends show a jump after US inflation declines below 3%, despite Telstra profits dropping 12.8%.
• Telstra’s net profit-after-tax for the fiscal year ended June 30 was $1.78 billion, down from $2.05 billion.
• The US reported a continued decline in inflation, with consumer prices showing tame readings for three consecutive months.
• Origin Energy reported a significant profit increase of 32%, reaching $1.39 billion for 2023-24.
• Commonwealth Bank’s full-year net profit was $9.48 billion, marking a 6% decrease compared to the previous year.

https://www.abc.net.au/news/2024-08-15/asx-markets-business-live-news-august15-2024/104226320

• Wall Street inflation data shows results in line with expectations, supporting ASX gains as the market opens stronger.
• The S&P/ASX 200 rose 0.3% to 7,875.20, with communications sector leading gains.
• Netwealth group and Magellan saw significant increases, while Origin Energy and Cochlear faced declines.
• The US S&P 500 and Dow Jones also posted gains, bolstered by stable treasury yields and positive inflation figures.
• Anticipation builds for potential Federal Reserve interest rate cuts in September, influenced by consumer spending trends.

https://www.smh.com.au/business/markets/asx-eyes-gains-as-wall-street-rises-on-inflation-data-20240815-p5k2j6.html

• ASIC sues stock exchange for allegedly making misleading announcements regarding the CHESS technology upgrade progress.
• The legal action marks the first time ASIC has pursued a case related to this matter.
• ASX had assured the market that the CHESS project was on track until February 2022, which ASIC claims was misleading.
• The ASX has since taken steps to replace the CHESS system and is reviewing the allegations while cooperating with ASIC.
• ASIC aims to hold ASX accountable for significant corporate governance failures that have impacted market trust and investment.

https://www.abc.net.au/news/2024-08-14/asic-takes-stock-exchange-to-court-for-alleged-failure/104223784

• ASIC sues ASX over trading project disaster, claiming misleading statements regarding the CHESS project’s progress were made to the market.
• The lawsuit alleges that ASX’s February 10, 2022, announcements falsely indicated the project was on track for an April 2023 go-live date.
• ASIC asserts that ASX did not have a reasonable basis for its claims, which undermined trust in the integrity of the markets.
• ASX CEO Helen Lofthouse acknowledged the serious nature of the allegations and stated the company is reviewing them while cooperating with ASIC.
• The delay in the CHESS project has incurred significant costs for ASX and market participants who relied on the ASX’s assurances.

https://www.smh.com.au/business/companies/asic-sues-asx-over-trading-project-disaster-20240814-p5k296.html

• Commonwealth Bank earnings drop to $9.5 billion, a 6% decrease from last year’s record profit.
• Profits before provisions for bad debts fell 2% to $14.9 billion, attributed to inflationary operating expenses.
• Operating expenses rose 3% due to inflation, increased staff costs, and technology investments.
• The bank’s net interest margins decreased by 8 percentage points to 1.99%, reflecting competitive pressures and inflation.
• CBA anticipates continued mortgage stress but does not expect a recession, with low levels of arrears observed despite rising costs.

https://www.abc.net.au/news/2024-08-14/commonwealth-bank-earnings-drop-to-9-5-billion/104195736

• Wall Street steadies, ASX set to inch up as global markets stabilize after a volatile week.
• US stocks experienced a mixed session, with the S&P 500 finishing little changed while the Dow Jones dropped 0.4% and the Nasdaq rose 0.2%.
• The Australian sharemarket is expected to rise by 0.1% at the open, following a 0.5% gain on Monday.
• Market concerns include a slowing US economy and upcoming inflation and retail sales reports that could influence Federal Reserve actions.
• Nvidia’s 4.1% gain helped offset losses on Wall Street, while Hawaiian Electric’s stock fell 14.5% due to disappointing results and financial uncertainty.

https://www.smh.com.au/business/markets/asx-set-to-inch-up-as-wall-street-treads-water-ahead-of-big-week-20240813-p5k1vm.html

• ASX to open flat after a mixed day on Wall Street, with rising geopolitical risks driving energy prices higher.
• The Australian share market is flat this morning, with the ASX 200 down 0.11% to 7804 points.
• Key inflation and jobs data are anticipated from both the US and Australia, impacting market sentiment.
• Energy and real estate stocks are performing well, while Seek’s share price has dropped significantly due to declining annual profits.
• Geopolitical tensions, particularly in the Middle East and Ukraine, are contributing to soaring oil and gas prices.

https://www.abc.net.au/news/2024-08-13/asx-markets-business-live-news-month-day-year/104216886

• Pilbara iron ore union deal marks the beginning of negotiations between unions and BHP for the first time in over a decade, facilitated by recent industrial law changes.
• The Australian Workers’ Union, Electrical Trades Union, and Australian Manufacturing Workers’ Union are initiating bargaining without needing to demonstrate worker support.
• BHP’s WA iron ore business employs around 14,000 people, with negotiations covering the South Flank and Area C mines where previous agreements have expired.
• The Minerals Council of Australia criticized the new laws as a “union power grab,” expressing concerns over potential economic risks amid declining commodity prices.
• The AWU, in collaboration with the Mining and Energy Union, aims to strengthen union presence in the Pilbara, drawing parallels to successful union initiatives in other sectors.

https://www.smh.com.au/national/western-australia/unions-launch-push-for-rare-deal-with-a-pilbara-iron-ore-giant-20240809-p5k14b.html?ref%5C%5Cu003drss%5C%5Cu0026utm_medium%5C%5Cu003drss%5C%5Cu0026utm_source%5C%5Cu003drss_feed

• Armidale wind farm project shelved by Ark Energy after landholders changed their minds, rejecting financial incentives to host turbines.
• Approximately 40% of approved renewable projects do not reach construction, highlighting a significant trend in the industry.
• Farmers express concerns about the impact of renewable energy projects on their land and local communities, prompting calls for better community engagement.
• The NSW government is developing mapping to assess the impact of renewable developments on farming land, though it is not yet finalized.
• Rising costs and policy changes may threaten the viability of renewable energy projects, as they struggle to meet financial expectations in regional communities.

https://www.abc.net.au/news/2024-08-12/wind-farm-renewable-project-shelved-ark-energy-armidale/104142328

• Australian super fund fast food lobbying is exemplified by Hesta and Texan nuns advocating for McDonald’s to reduce antibiotic use in meat production.
• The coalition seeks to address antimicrobial resistance (AMR), which poses significant health risks and economic threats globally, as highlighted by the World Bank’s projections.
• Hesta and the Benedictine Sisters of Boerne have engaged in shareholder activism, lodging resolutions urging McDonald’s to comply with WHO guidelines on antibiotic use in food animals.
• While McDonald’s claims to be taking steps to reduce antibiotic use, it faces criticism for not fully committing to policies for pork and beef, with its current measures deemed insufficient by activists.
• The ongoing efforts by Hesta and the nuns illustrate the growing influence of shareholders in pushing for corporate accountability regarding public health and environmental issues.

https://www.abc.net.au/news/2024-08-12/the-surprising-shareholders-taking-on-mcdonald-s/104189802

• Australia is currently declared the worst place in the world to start a business due to high costs, according to café owner Adam Thomson.
• Adam and his wife Rejoice run Dovetail Social Cafe in Brisbane, working 60-hour weeks and taking pay cuts to keep the business afloat.
• The high cost of living, inflation, and rising interest rates have created a challenging environment for small businesses, with many failing within three years.
• Thomson emphasizes the importance of creating a strong workplace culture and warns potential business owners about the demanding nature of running a business.
• CreditorWatch forecasts that one in 13 hospitality businesses may fail in the coming year, with conditions expected to worsen until consumer spending improves.

https://www.dailymail.co.uk/news/article-13686957/Cafe-owner-adam-thomson-brisbane-dovecote-social-australia-start-business.html

• Major bank law ties Cigno Australia to a controversial payday lending operation that targets “any consumer and every consumer.”
• ASIC is investigating Cigno’s lending model, which has been criticized for exploiting legal loopholes and charging excessive fees.
• Cigno Australia has connections to major institutions like ANZ and law firm Piper Alderman, raising concerns about the legality of their practices.
• The operation reportedly processed nearly $34.7 million in loans while accumulating over $70 million in fees from customers, often in financial distress.
• Despite ongoing investigations and court rulings against them, Cigno and its associates continue to operate, with new ventures emerging in the same industry.

https://www.abc.net.au/news/2024-08-11/cigno-australia-payday-lenders-asic-investigation/104204316

• Elizabeth car manufacturing Australia has a history of over 50 years, primarily producing Holden cars until the plant’s closure in 2017.
• The Australian manufacturing sector has declined significantly, now comprising less than 6% of the country’s GDP, down from 29% in 1960.
• The federal government is promoting the Future Made in Australia policy to revitalize manufacturing, focusing on clean energy technologies and economic resilience.
• Experts suggest that Australia should learn from countries like South Korea and Japan to rebuild its manufacturing capabilities and competitive advantages.
• Local leaders, such as the mayor of Playford, see potential in northern Adelaide for future manufacturing growth, leveraging the region’s industrial land.

https://www.abc.net.au/news/2024-08-11/manufacturing-future-made-in-australia/104141360

• Priced out of home ownership, many young Australians like Erin and Jack feel hopeless about ever affording their own homes amid rising house prices and stagnant wages.
• House prices have increased at nearly three times the rate of income growth since the 1990s, leading to a significant decline in home ownership among young people.
• The rental market in Australia is fragmented, with most rental properties owned by individuals with only one or two investment properties, making long-term renting challenging.
• Young renters are increasingly concerned about their future, with many feeling they may never own a home and expressing worries about climate change and economic stability.
• Experts suggest that without significant reforms in housing policy and rental assistance, future retirees will face greater financial burdens as home ownership rates continue to decline.

https://www.abc.net.au/news/2024-08-10/young-people-priced-out-of-home-ownership/104202602

• Foxtel sale Australia is being considered by News Corp as it struggles to compete in the streaming era led by Netflix and faces challenges from reduced household spending.
• News Corp’s chief executive mentioned that potential buyers have shown interest in the Foxtel business during an asset review.
• The Foxtel Group includes streaming services like Kayo and Binge, but has been losing subscribers on its legacy Foxtel Now platform.
• The competitive landscape for pay TV is intensifying due to the rise of free services and increasing living costs, prompting speculation about offloading the business.
• Despite challenges in its news media division, News Corp reported an overall revenue increase, driven by its business-focused units and real estate portal.

https://www.theguardian.com/media/article/2024/aug/09/news-corp-foxtel-sell-off-streaming

• ASX set to jump as US stocks rally on a better-than-expected unemployment report, easing economic concerns.
• The S&P 500 experienced its best day since 2022, rising 2.3% and recovering from earlier losses.
• Futures indicate an 81-point, or 1.1%, rise for the ASX at the open, following a 0.2% loss on Thursday.
• Major US companies reported stronger-than-expected profits, with Eli Lilly leading the market with a 9.5% increase.
• Mixed performances were noted in international markets, with the Nikkei 225 down 0.7% amid volatile trading.

https://www.smh.com.au/business/markets/asx-set-to-jump-as-wall-street-surges-on-jobs-report-20240809-p5k0y6.html

• Foxtel for sale News Corp, as the company is undergoing a strategic review and has received third-party interest in a potential transaction.
• News Corp’s global CEO Robert Thomson announced the sale during an investor call, highlighting the company’s focus on maximizing returns for shareholders.
• Foxtel, which owns Kayo and Binge, has seen significant growth in streaming subscribers and revenue per user, reflecting a positive transformation in recent years.
• The majority owner of Foxtel is News Corp with 65%, while Telstra holds the remaining 35%, and the company recently launched a new streaming service called Hubbl.
• A potential sale of Foxtel could significantly impact Australia’s media landscape, given its influential role in sports and entertainment broadcasting.

https://www.smh.com.au/business/companies/news-corp-puts-foxtel-up-for-sale-20240809-p5k0z0.html

• S&P 500 records best day since 2022, with a strong rally erasing most losses from earlier in the week.
• Australian shares are also rising, with the ASX 200 up 0.6% as most sectors show gains.
• News Corp’s shares increased by 8.5% after announcing plans to sell Foxtel alongside their quarterly results.
• Rex Airlines is holding its first creditors’ meeting after entering voluntary administration, with significant job cuts already made.
• The market rally is attributed to positive US jobs data, calming fears that had previously affected global financial markets.

https://www.abc.net.au/news/2024-08-09/asx-markets-business-live-news/104203770

• Qantas boss remuneration package for former CEO Alan Joyce included a multi-million dollar payout, but has been significantly reduced by nearly $10 million due to legal issues faced by the airline.
• Joyce’s total remuneration for the 2022-23 financial year was $23.6 million, including a base salary of $2,145,000 and additional bonuses tied to company performance.
• The Qantas board decided to claw back $14.4 million of Joyce’s payout, with $9.26 million specifically cut from his final remuneration due to ongoing scrutiny and legal challenges.
• An independent review criticized Qantas’ leadership culture, highlighting a “command and control” style that contributed to reputational damage and poor decision-making during the COVID-19 pandemic.
• Following the announcement of the remuneration cuts, Qantas’ share price fell by 2.2%, reflecting investor concerns, and shareholder dissatisfaction may lead to further scrutiny at the upcoming annual general meeting.

https://www.abc.net.au/news/2024-08-08/what-alan-joyce-was-owed-and-what-was-cut/104199592

• Mosaic Brands financial trouble is highlighted as the retailer seeks refinancing advice from a Big Four accounting firm, raising concerns about its future.
• The company owns popular budget clothing brands including Millers, Katies, Noni B, and Rockmans, and has paused trading on the ASX.
• Following the announcement, Mosaic Brands’ share price dropped 13%, and the company has closed hundreds of stores in the past year.
• Complaints from overseas suppliers regarding unpaid debts are under investigation by the Australian Competition and Consumer Commission.
• Retail expert Professor Gary Mortimer criticized the company’s strategy of targeting the same customer demographic with multiple brands, leading to market cannibalization.

https://www.dailymail.co.uk/news/article-13721889/Mosaic-Brands-Millers-Katies-Noni-B-Rockmans-Grave-sign-major-Aussie-retailer-trouble.html

• Qantas CEO payout reduction for former chief executive Alan Joyce amounts to nearly $10 million following recent controversies.
• Joyce’s total remuneration package, originally valued at $23.6 million, will be reduced by $9.26 million due to lost legal battles and settlements.
• The reduction includes $8.36 million in lost shares and a 33% cut to his short-term incentive bonus, now totaling $900,000.
• The Qantas board also reduced short-term bonuses for current and former senior executives by approximately $4.1 million.
• A governance review revealed mistakes by the board and management that harmed Qantas’ reputation, prompting commitments to improve accountability and trust.

https://www.abc.net.au/news/2024-08-08/alan-joyce-multi-million-dollar-payout-reduced/104198930

• Qantas CEO pay cut: Former CEO Alan Joyce’s compensation has been reduced by $9.2 million following a governance review amid scandals and reputational damage.
• The governance review highlighted poor decision-making and a lack of robust challenge from the board, contributing to significant customer service issues.
• Qantas faced legal challenges, including breaches of the Fair Work Act and issues related to “ghost flights,” further damaging its public perception.
• Recommendations from the review include changes to executive pay structures and improved oversight of share trading by senior management.
• The Australian share market is experiencing fluctuations, with the ASX 200 index expected to open lower amidst broader market volatility.

https://www.abc.net.au/news/2024-08-08/asx-markets-business-live-news-august8-2024/104197882

• ASX AMP Mirvac surge slump: The Australian sharemarket fell 0.3% as AMP shares surged 11% following a 5.4% rise in net profit, while Mirvac slumped 10% due to lower earnings forecasts.
• Wall Street’s failed rally influenced the ASX decline, with all three US benchmarks closing down, particularly the tech-heavy Nasdaq.
• Former Qantas CEO Alan Joyce is set to lose over $9 million in bonuses due to management mistakes affecting the airline’s reputation.
• Myer’s profit is expected to drop significantly to between $50 million and $54 million for FY24, impacted by challenging trading conditions and inflation.
• IGO is considering divesting its nickel assets while Transurban’s shares fell despite forecasting a higher dividend after a significant profit increase.

https://www.afr.com/markets/equity-markets/asx-to-slip-as-wall-st-struggles-to-advance-20240808-p5k0m3

• ASX Wall St volatility rebounds as Australian shares are set to open lower following a choppy New York session with late selling.
• The S&P/ASX 200 eased 0.3% to 7656, influenced by the Reserve Bank’s decision to maintain a high cash rate of 4.35% and its outlook on inflation.
• Mining giants like Rio Tinto and BHP experienced declines due to lower iron ore prices, making materials the biggest laggard.
• Interest rate-sensitive sectors, including retail and property, faced pressure with notable drops in shares of Wesfarmers and Commonwealth Bank.
• The Australian dollar gained against the US dollar, while bond markets indicate a 59% chance of an interest rate cut by November, challenging the RBA’s stance.

https://www.afr.com/markets/equity-markets/asx-to-slip-wall-st-rebounds-though-volatility-persists-20240807-p5k07a