ANZ wants advice comeback; RBA warns on AI, rates; Trump backs Huang over affair

ANZ wants advice comeback; RBA warns on AI, rates; Trump backs Huang over affair

News in brief

RBA warns AI could keep rates higher

Artificial intelligence could push inflation and interest rates higher in the short term, according to Reserve Bank chief economist Sarah Hunter. Surging investment in data centres, semiconductors and skilled workers is driving up costs. The RBA also warns AI could widen income inequality, although widespread job losses have yet to emerge.

 

Albanese heads to global climate summit

Prime Minister Anthony Albanese and Energy Minister Chris Bowen are heading to Turkey for the COP31 climate summit. Negotiators from almost 200 countries will discuss emissions reductions, climate finance and adaptation. Bowen will serve as President of Negotiations, while Australia seeks to strengthen its international climate credentials.

 

Goodman and Digital Realty secure NextDC stake

Goodman Group and US data centre giant Digital Realty have acquired 9.9 per cent of NextDC, paying an average of $9.22 a share. The investment follows a sharp fall in NextDC's value after an earnings downgrade. The investors deny having immediate takeover plans but have reserved the right to make an offer.

 

Australian shares edge higher as banks retreat

The ASX 200 finished slightly higher at 9,030 points, with mining and technology stocks offsetting weakness among the major banks. Ventia plunged 16 per cent after warning of weaker revenue, while Dyno Nobel fell ten per cent. Lendlease and Westfield owner Scentre Group each lost around five per cent.

 

Trump backs Nvidia boss amid spying investigation

US President Donald Trump has backed Nvidia chief executive Jensen Huang following revelations of an affair with a woman suspected of links to Chinese intelligence. Huang has apologised to his family, while Nvidia's board investigates whether sensitive information was compromised. The company says it currently has no evidence that secrets were exposed.

Fear-o-meter

RBA chief economist Sarah Hunter on the economic impact of AI:

 

The increase in demand for investment, potentially at the same time as global savings falls, could push up the neutral rate of interest – the rate that balances demand and supply of savings globally. Firms want to invest to take advantage of the new technology and to expand their capacity to meet faster future growth. Given this is happening globally, they’ll be competing for scarce savings, pushing up interest rates.

Such dynamics would be consistent with previous periods of strong productivity growth associated with past general-purpose technologies.

 

One example is the late 1990s and early 2000s, when the internet spread across the world. This period was characterised by robust economic growth and higher interest rates globally. There is tentative evidence of this happening with AI; our estimates for the neutral rate have risen in recent years, and bond yields have increased over the past couple of months with market participants citing strong demand for capital as a key driver. But as with all aspects of AI’s impact, the extent of the increase is hard to quantify at this stage, and we will continue to assess the economic implications of these moves in yields.

ANZ pushes for return to financial advice

 

ANZ wants Australia's major banks to return to wealth management, arguing that their withdrawal from financial advice following the banking royal commission has left customers worse off.

 

The push comes as ANZ reported a full-year cash profit of $7.6 billion, up ten per cent excluding significant items, following a major restructuring under chief executive Nuno Matos.

 

Since taking charge last year, Matos has cut 3,500 jobs, removed more than $1 billion in annual costs and abandoned underperforming projects.

 

Now he's looking towards growth. His biggest ambition could be taking ANZ back into wealth management, a sector the major banks largely exited after the royal commission exposed conflicts of interest, misconduct and customers being charged for advice they never received.

 

Matos argues that financial advice has become too expensive and inaccessible, and that keeping banks out of the industry is hurting Australians.

Greed-o-meter

Who is responsible?	Share %
Federal government	42
Global factors outside Australia's control	26
Unsure	12
Reserve Bank of Australia	7
State and territory governments	5
Businesses	3
Consumer spending	2
AI data centre construction	2

Source: Resolve Political Monitor in Nine newspapers

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Australians are overwhelmingly blaming the federal government for the cost-of-living crisis, with 42 per cent holding it responsible for rising prices, according to a new Resolve Political Monitor survey. That's well ahead of the 26 per cent who blame global factors outside Australia's control, while 7 per cent point the finger at the Reserve Bank. The findings suggest Treasurer Jim Chalmers' argument that international pressures are driving inflation isn't cutting through with voters.

Listen to today's episode 🎧 

Fear & Greed Q+A today

In the third episode of Extraordinary Business Stories, a special four-part Fear & Greed Q+A series brought to you by Telstra, Sean Aylmer and Michael Thompson speak with Laura Jeffery from TUNDRA Resource Analytics and Payal Kapoor from Anchor Impact Group, two Growth Award State Winners in the 2026 Telstra Best of Business Awards, about scaling a business, managing the challenges of growth and why success is about more than the bottom line.

 

Laura Jeffery on what growth really means: "For us, growth is about financial success, but it's about the scale of impact we can have at clients. It's about the number of opportunities that we have to employ people and create opportunities for people to fulfil their goals. And it's about the scale of impact that we can have within our communities."

 

Payal Kapoor on the importance of productivity and processes: "I think it is fundamental to driving efficiency, and this is the productivity conversation that we as a country actually are avoiding. I think it comes down to doing it at the micro level and then taking it up right to that country level."