Goodman raids NextDC; ASX hits two month high; Collins Dictionary word of the year

Goodman raids NextDC; ASX hits two month high; Collins Dictionary word of the year

News in brief

David Jones enters administration

David Jones has entered voluntary administration after its owner, Anchorage Capital, exhausted efforts to rescue the 188-year-old retailer. Chief executive Erica Berchtold blamed weak consumer confidence, changing shopping habits and an oversized store network. Staff have been told stores will continue operating.

 

NAB recession warning

National Australia Bank has warned of increasing recession risks after reporting a 13 per cent fall in annual cash profit to $6.14 billion. Bad debt charges almost doubled to $1.5 billion, reflecting pressure on businesses and mortgage holders. NAB expects economic growth of just one per cent next year.

 

Federal public service wages bill hits $44 billion

The federal government's public service wages bill has climbed to almost $44 billion, rising 7.2 per cent over the past financial year. Employee costs have jumped 35 per cent in four years. Economists are calling for spending restraint to help contain inflation, while the government points to reduced reliance on external consultants.

 

ASX surges to two-month high

Australian shares recorded their strongest session in months, with the ASX 200 jumping 2.6 per cent to 9,065 points following the US midterm elections. Technology and mining stocks led the rally.

 

'Mogging' named Collins Dictionary word of the year

Collins Dictionary has selected 'mogging' as its word of 2026, meaning to outshine or outclass someone. Usage of the term jumped 210 per cent this year. Originating in bodybuilding communities, it has spread through social media. Other shortlisted terms included 'ghost jobs', 'friendslop' and 'P(doom)'.

Fear-o-meter

Former US Ambassador Joe Hockey, writing on LinkedIn:

 

I don't think Donald Trump's relationship with the Republican Party is going to change much after the midterms. He has always been more focused on controlling the party than even controlling the Congress. What he has now is a more identifiable opponent: the Democrats in the House and the Senate.

I suspect he would like a relationship with [Democrats] Hakeem Jeffries and Chuck Schumer similar to what Bill Clinton had with Newt Gingrich. Public battles, but privately pragmatic. I know Trump speaks quite a bit to Bill Clinton.

On [ABC’s] 7.30, Sarah Ferguson raised reporting from inside the administration about preparations to work around the Congress. I think that's absolutely right. [White House deputy chief of staff] Stephen Miller would've been working away on a range of executive orders that will flow over the next two years. You'll see him [Trump] issue more executive orders than even Franklin Delano Roosevelt did during World War II.

He'll be vetoing a large range of bills out of the House, and he will say "take me to court, where I nominated most of the Supreme Court judges".

I think he'll double down.

Fear & Greed Q+A today

On the bank's full year results, the risk of recession, how far house prices could fall, and why some businesses are thriving while others struggle:

 

"Housing and the value of your home is a big driver of your confidence and your net worth as a person. And so if the price of the home is falling, our customers will feel less wealthy. And if they feel less wealthy, they're less likely to spend money. And that therefore will impact all types of businesses that rely on consumer spending to sell their goods and services. And we are seeing that to some extent right now.

 

What our experience in that sector has been, if you're a retailer that's doing luxury or has a really compelling proposition, you're doing very, very well. If you're a retailer that's focused on value and providing real value to your customers in this cost of living environment, you're doing very, very well. But if you're a retailer that does neither of those things particularly well, you're stuck in no man's land with a legacy business model or a proposition that doesn't quite hit the mark, you're really struggling right now, and I think you're seeing that play out."

Goodman raids NextDC as data centre takeover battle looms

 

Property giant Goodman Group has joined forces with US data centre operator Digital Realty to launch a surprise raid on Australian data centre company NextDC, raising the prospect of a takeover battle.

 

The two companies are seeking to acquire up to 9.9 per cent of NextDC at $9.50 a share, sending its shares soaring 48 per cent to $9.67.

 

NextDC's share price had slumped in recent weeks after the company delayed construction of a Melbourne data centre because of difficulties securing electricity and downgraded its earnings forecasts.

 

NextDC's board has described the move as opportunistic and appointed financial and legal advisers.

 

Goodman has been aggressively expanding into data centres, which now account for around 80 per cent of its construction pipeline. However, it has faced criticism over slow progress in securing tenants.

 

Despite growing concerns about the enormous cost of artificial intelligence infrastructure, the move suggests investors still see considerable value in data centres.

Greed-o-meter

What Canva is offering departing staff
6 months' salary Minimum payout, including statutory entitlements. Recent hires also have their one-year share vesting cliff for equity removed.
12 months' health support Continued healthcare coverage where provided, plus wellbeing support for employees and their families.
Career assistance Personal coaching, resume and interview help, a year of LinkedIn Premium and access to an alumni talent network.
US$10,000 grants Departing staff can apply for funding to start a business or community project. Canva takes no equity.
Keep the MacBook Employees can take their Canva laptop with them.

Source: Canva

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This week Canva announced it's cutting 22 per cent of its workforce in a major restructure, aimed at returning the Australian tech giant to smaller teams and faster decision-making. Around 1,270 employees will be affected, either losing their jobs, changing roles or being asked to relocate. Co-founder Melanie Perkins has been widely praised for her statement announcing the changes - and also for the support being offered to those affected, which includes $US10,000 grants to start their own business.

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