BHP dominates ASX; RBA warns rates could rise; ARIA bans AI music
News in brief
Australia’s biggest oil and gas producer, Woodside Energy, has dropped its $US5bn low-carbon investment target and will review its newly built Beaumont New Ammonia project, in a sharp reversal on its clean-energy ambitions.
Coles reported a better-than-expected profit and grocery turnover online was up 26 per cent and $1 out of every $6 in the supermarket division comes from online sales. Chief executive Leah Weckert said it could eventually end up at 20 per cent of sales.
Westfield owner Scentre Group has posted a 4 per cent lift in its 2026 interim earnings to $612 million in funds from operations, the industry’s standard earnings metric. But its growth might be in residential, not retail.
Real estate development group Bathla, which builds budget-friendly housing estates, townhouses and apartments in Sydney suburbs, has been put into administration owing more than $3 billion to private credit funds.
Songs that are largely or wholly created by AI have been banned from Australian music charts. From this week, all releases must be "substantially human made" to be eligible, according to a new code developed by the Australian Recording Industry Association.
Fear-o-meter
Warren Hogan, MD and Principal Forecaster, EQ Economics:
It has been a busy few months, travelling the country and speaking with business leaders across every corner of industry. The mood out there is best summed up by the line: “not happy, Jan.” Between the fallout from Trump’s adventures in the Middle East and the sudden lift in interest rates, our business community is genuinely aggrieved at what it sees as this government’s lack of respect for the economy, private business, and the community that depends on it.
The changes to tax arrangements that underpin long-term wealth creation and retirement saving strategies may well have merit for many economists. But springing these changes on the country, sight unseen, in the middle of a period of elevated domestic and international uncertainty is arrogant and, frankly, poor judgement.
The economic case for the removal of the capital gains tax discount and negative gearing concessions is straight from the orthodox economic rationalist’s toolkit. This is becoming typical of this government, and Treasurer: pointing to orthodox economic analysis to justify policy choices when it suits them, only to dismiss mainstream economic arguments that run counter to their political objectives.
These ‘reforms’ have been implemented without a proper electoral mandate, and in my judgement, it will come at a high political price for this ALP government. Much has happened since the election last May.
Fear & Greed Q+A today
On the property group's full year results, including why land lease is booming, Stockland's data centre strategy, and why Australia is lagging so far behind its target for new homes:
“Clearly on supply at the moment Australia is undersupplied, right, on a spot basis by about 250,000 homes. Right now, to meet demand and equilibrium, that’s what we’re short. Now what we’re doing is we’re structurally adding to that every year because population growth is high and, you know, in the near term our sales are going to go down so we’ll produce less homes. So that’s the fundamental issue.
What’s causing that? Well, it’s years, decades of planning restrictions that have made approval of new precincts and new homes very difficult. That is improving. I’ve gotta say the state governments across the country have really leant in and are starting to improve it, but that takes time to flow through.”
BHP’s share price hit another new high yesterday as copper prices keep climbing. The world’s biggest miner’s share price passed through $68 a share, before closing just below that level. A little over 12 months ago, it was Commonwealth Bank hitting record levels. Back then CBA swamped BHP in terms of market cap, though now the Big Australian is worth about $80 billion more than the country’s largest lender.
BHP has rallied 13 per cent in the past month while CommBank is down 11 per cent on the back of fears about credit quality, falling property prices and strong competition in the lending market.
BHP now comprises about 12 per cent of the ASX200, while CBA makes up 10.5 per cent. This goes across financial and miners. Three of the big four banks – the exception being ANZ – have gone backwards over the past 12 months.
In contrast, BHP and Rio Tinto are up around 55 per cent, gold miner Evolution has risen 89 per cent and Northern Star is up 32 per cent and both are now top 20 stocks while South32 has jumped 75 per cent and is a top 30 stock.
The strength of the miners BHP and Rio alongside Woodside, means the top 10 stocks on the ASX comprise nearly half the total value of the ASX200.
Greed-o-meter
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It's fifteen years this week since Steve Jobs handed over the reins as CEO of Apple to Tim Cook. During that fifteen years, Cook has overseen remarkable growth at Apple, now one of the world's biggest companies. Next week, he'll be succeeded in the role by John Ternus. No pressure, John.