PM backs down on defence sales; On’s big plans for Aussie runners; midterms fallout
Published: November 08, 2026
PM backs down on defence sales; On’s big plans for Aussie runners; midterms fallout
News in brief
Housing auctions struggle after fifth rate hike
Australia's housing market remains under pressure following the Reserve Bank's fifth interest rate increase this year. Just 51.5 per cent of capital city auctions recorded a preliminary sale over the weekend. Auction volumes were down 43.5 per cent from a year earlier, highlighting weak buyer demand.
David Jones attracts potential buyers
Administrators of David Jones say credible Australian and overseas buyers have expressed interest in the collapsed department store chain. Expressions of interest close Friday. Stores have experienced a surge in customers since administration began, with one outlet doubling sales compared with a year earlier. A rescue could involve substantial store closures.
Roger Federer-backed On targets Australian expansion
Swiss sportswear brand On is planning a major Australian expansion ahead of the Brisbane Olympics. The company wants to increase its local store network from two to four or five by the end of next year. Australian sales almost doubled to $76 million last year, reflecting strong demand for its premium running shoes.
US election result threatens AI data centre boom
The Democrats' midterm election victories could slow America's data centre construction boom. New Democratic governors in Texas and Ohio have supported restrictions on new developments, potentially affecting billions of dollars in planned investment. Elon Musk, a major Republican donor, could also face setbacks to his companies' expansion plans.
Fear-o-meter
AMP Chief economist Shame Oliver on asset prices
Global and Australian share markets are at risk of a correction given the oil shock, the risk of further increases in bond yields and stretched valuations, sticky inflation and central bank rate hikes, uncertainty associated with what the blue wave from the midterm elections will bring and worries about AI. However, returns should still be okay for a while yet thanks to continuing economic growth with recession likely to be avoided, albeit it’s a rising risk in Australia, and strong global profit growth and likely rate cuts next year.
Bonds are likely to see subdued returns.
Unlisted commercial property returns are likely to be solid helped by strong demand for industrial property associated with data centres. Higher bond yields are a constraint.
Australian home prices are expected to fall around 15% top to bottom, of which they have already done 6.7%, out to the September quarter next year as a result of RBA rate hikes, reduced investor demand flowing from the winding back of negative gearing and the capital gains tax discount and poor confidence. Rising distressed sales risk also becoming a drag.
Cash and bank deposits are expected to provide returns around 4-5%.
Fear & Greed Q+A today
The Week Ahead with NAB: Chief Economist Sally Auld on what the US midterm election results mean for the global economy, and whether interest rates have now reached their peak:
“We've now had five interest rate rises over the course of this year, which is a lot. And actually, if you go back in history and you look at the frequency of central bank moves here in Australia, whether they're hikes or cuts, getting five or six in a 12-month period is basically, outside of COVID, pretty much as many as you ever get, even looking back a couple of decades.
We've had our fill of rate rises this year. We actually think policy is now genuinely restrictive. So the RBA has taken monetary policy to a setting where it is going to exert a meaningful headwind on the domestic economy. And ultimately that is what is required to get inflation back into the target band.
The governor said we're possibly at a point where we could take stock and just see what happens. Markets took that as quite a strong signal that from here on in the Reserve Bank just wants to sit back and watch how the economy transpires. So we think the RBA are done.”
Albanese defends battery subsidies, reverses Defence sales
Prime Minister Anthony Albanese is facing growing pressure over government spending, with Treasury reportedly considering cuts to the $7 billion home battery subsidy scheme as part of a broader budget savings drive.
The scheme has already supported 600,000 households and small businesses, according to Albanese, who argues it is also helping reduce pressure on the electricity grid.
But reports suggest Treasury is examining reductions to upfront subsidies, potentially putting it at odds with Energy Minister Chris Bowen. Albanese has declined to rule out changes.
Meanwhile, the government has reversed plans to sell four historic Defence properties, including Victoria Barracks in Sydney and Melbourne, Fort Queenscliff and RAAF Williams at Point Cook.
The sites will be preserved, with the Australian War Memorial helping improve public access. Defence Minister Richard Marles insists the broader property sales program remains financially unchanged.
The decisions come as the government grapples with persistent inflation, higher interest rates and pressure to find budget savings.
Greed-o-meter
| # | Model | Sales | Annual change |
|---|---|---|---|
| 1 | Toyota HiLux | 5,954 | +34% |
| 2 | Ford Ranger | 4,841 | +10% |
| 3 | Toyota RAV4 | 4,718 | +7.2% |
| 4 | Tesla Model Y | 3,105 | +322.4% |
| 5 | BYD Sealion 7 | 2,524 | +88.2% |
| 6 | Toyota Prado | 2,397 | +64.4% |
| 7 | Chery Tiggo 4 | 2,178 | +10.3% |
| 8 | BYD Atto 2 | 1,943 | New |
| 9 | BYD Shark 6 | 1,843 | +72.2% |
| 10 | Geely EX5 | 1,789 | +421.6% |
Source: FCAI and Electric Vehicle Council, via Drive. October 2026.
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Despite rising interest rates and cost-of-living pressures, Australians bought more new cars in October than in any previous October on record. Sales rose 6.8 per cent to 107,493 vehicles, with the Toyota HiLux topping the charts. But the bigger story is the changing mix of cars Australians are buying: electric vehicles accounted for almost one in four sales, while six of the ten best-selling models were built in China.