Iran war hits consumer prices, Woolies v ACCC, FBI director’s $US250m lawsuit
News in brief
The competition watchdog’s case against Woolworths kicked off in Federal Court yesterday, following February’s case against Coles. The ACCC alleges that prices on certain grocery items that were advertised as one sale, were not actually lower prices than a few weeks earlier.
The Albanese government says it will invest up to $7bn in counter-drones in the next decade as it seeks to plug a key weakness in the capability of the Australian Defence Force.
Tim Cook, the CEO of Apple for the past 15 years, is stepping down. Since taking over, its share price has risen by around 2,000 per cent, helped by the sale of hardware like iPhones, and the shift into services, like Apple Music and Apple TV.
FBI director Kash Patel filed a $US250 million defamation lawsuit against The Atlantic magazine following the publication of an article alleging his excessive drinking and unexplained absences were putting his job in jeopardy and could pose a threat to national security.
Amazon is investing another $US5 billion in the artificial intelligence giant Anthropic and may inject $US20 billion more over time, deepening the companies’ ties in an increasingly competitive AI industry.
Fear-o-meter
Tim Cook’s enthusiastic statement on leaving the Apple CEO job
“It has been the greatest privilege of my life to be the CEO of Apple and to have been trusted to lead such an extraordinary company.
“I love Apple with all of my being, and I am so grateful to have had the opportunity to work with a team of such ingenious, innovative, creative and deeply caring people who have been unwavering in their dedication to enriching the lives of our customers and creating the best products and services in the world.
“John Ternus has the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honour. He is a visionary whose contributions to Apple over 25 years are already too numerous to count, and he is without question the right person to lead Apple into the future.
“I could not be more confident in his abilities and his character, and I look forward to working closely with him on this transition and in my new role as executive chairman.”
Fear & Greed Q+A today
On Tim Cook's decision to step down as Apple CEO after 15 years, what the appointment of Apple insider John Ternus means for investors, and why AI is the big unknown for the tech giant:
"I think that’s absolutely the biggest challenge. Apple has lagged behind some of its competitors when it comes to AI — if you look at what Amazon, Microsoft and Google are doing, they’re clearly ahead.
We’ve seen some movement — smart devices, AirPods with translation features — but the real AI capability hasn’t fully landed yet. There have been delays, particularly around Siri, and even leaning on external technology doesn’t exactly scream confidence in Apple’s own AI.
The real test is going to be the developer conference in June. That’s where investors are going to scrutinise Apple’s AI credibility. And for Ternus, there’s no settling in period — he has to hit the ground running."
Rio Tinto has become the latest large ASX-listed company to warn of a potential hit to earnings because of the war in the Middle East, saying there is limited visibility around costs and supply chains. Australia’s second biggest miner joins a growing list of companies warning of earnings downgrades. Two of the big banks, NAB and Westpac, have said they will put aside more money for potential credit impairments as the economy slows. Manufacturers like bottle maker Orora have warned of disruptions due to material costs and supply chains. Transport and logistics companies, such as Cleanaway, have said higher fuel charges will hit the bottom line. In recent days, building companies have told customers they will be charging more as the price of plastic rises. Boral has more than doubled the surcharge it charges customers for concrete, as a result of the war. Of concern is that the warnings are coming from companies across all sectors of the economy.
Greed-o-meter
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