Today’s News

The Big Picture

• Renewables and batteries drop power prices by up to 10%. Households and small businesses across NSW and south Queensland will face 10% lower energy bills as cheap solar and wind power and grid-scale batteries reduce demand for expensive gas generation. Victorian customers can expect bills to fall by 5-6%. (Guardian)
  
  

• US launches new “self defensive” strikes on Iran. The US military struck minelaying ships and missile strikes despite the existing ceasefire, claiming the strike were protecting US troops. This comes after Trump told representatives not to rush into a deal that would end the conflict. (ABC)
  
  

• Chinese investors flee cross-border crackdown. China is cracking down on stock brokers accused of illegally moving money out of the country. Chinese stocks fell as the affected brokers will only be allowed to sell stocks, not buy them, for two years, reducing demand and market liquidity. (Reuters)
  
  

• UK business loans fall to 28-year low amid economic slowdown. Business lending hit 59% of GDP, the lowest level since 1998, as weak economic growth and tightened regulations restrict capital to businesses. Small and medium-sized enterprises (SMEs) were most affected, with SME lending being cut by almost half. (FT)
  
  

• Japanese market rises 9% in fastest 3-day gain in 6 years. Japan is heavily impacted by oil prices, so falling oil prices disproportionately benefit Japan and Japanese companies. The news of a potential Iran peace deal, plus global AI market optimism after strong Nvidia earnings, propelled the Nikkei up 9%. (Nikkei)
  
  

• Pope criticises AI and calls for regulation. In his first papal manifesto, Pope Leo XIV called for AI to be disarmed and heavily regulated, saying it reduces humans to cogs in an efficiency-obsessed machine. The document was titled “Magnifica Humanitas”, or magnificent humanity. (Capital Brief)

Companies in the news

• NAB cuts down lending for negative gearing investors. NAB joins Macquarie and Westpac in reducing lending to investors using negative gearing following the federal budget’s restriction of future negative gearing to new builds. The restriction is expected to reduce new investor loan growth by 25%. (Capital Brief)
  
  

• Commonwealth Bank warns of impending AI layoffs. CEO Matt Comyn said CommBank will see some work be done by smaller teams as the bank invests $2.4 billion annually into technology. CBA is encouraging AI use internally and rolling out a new external AI tool called Companion for customers to ask questions. (Capital Brief)
  
  

• Disney’s Mandalorian tops box office in $165m opening weekend. “Star Wars: The Mandalorian and Grogu” marks the first Star Wars film in seven years and sold $165 million of tickets globally. Despite harsh reviews from critics, viewers loved it, giving the film an 89% on Rotten Tomatoes. (NYT)
  
  

• ASX forecasts rising costs, sending stock down 13%. The exchange operator is forecasting higher expenses due to technology cost inflation. Capital expenditure forecasts also rose $20 million to $180-$200 million. Already wary from ASX Limited’s ongoing operational failings and punishments, investors pulled out, driving the stock down over 13%. (AFR)
  
  

• Mineral Resources approves $490m lithium expansion. The miner is betting on continued strong lithium demand from EVs and batteries as it expands its Mt Marion lithium operation. The past year has been massive for both the stock (up 197%) and lithium prices (up 190%). (ARI)
  
  

• Leaked documents reveal BHP climate struggles. ABC’s Four Corners discovered the world’s largest miner is bailing on emission-reduction projects and considering delaying climate investments. Renewable energy plants and electric trucks and trains are among the delayed projects. (Guardian | ABC)
  

What the…?

Woolworths: The Fresh Frog People. A group of friends received a shock when they found a small green frog in a bag of lettuce from Woolies. It’s not clear how the frog, named Greg by its discoverers, ended up in the bag, but it was alive and was released into a nearby pond.

Woolies has previously had snakes appear on its shelves and lettuce packaging, but a live frog is apparently a first. Woolworths apologised and claimed the incident was isolated, so hopefully Greg will be the first and last to face the lettuce treatment. (AP)

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Today’s Insight

Don’t overhype the budget

We asked financial adviser Julie Bullen from Fox & Hare about the real implications of the latest federal budget and its impacts on investing and taxes.

Now you've had time to sit with it, what's your read a couple of weeks post-budget?

Julie: Yeah, there was a lot of hype going into it. There was a lot of talk and honestly, I feel like it's a little bit of a non-event. I think there's been a lot of media discussions about how big these changes are going to be. If we were to quote Jim, it's the most controversial budget of the decade. And the reality is that for most people and the everyday person, it's not going to change materially the way that we should be investing.

Negative gearing is not gone. If these legislations come through, it's just kind of diverted to a different time period. Capital gains, there is a change there, but for anyone earning over $45,000, you're paying 30% tax anyway. And let's remember if you are paying capital gains, it's because you've made money. So that's kind of the point of investing.

Want to work with an adviser like Julie to understand new tax implications for your investments? Fill out the form on our website and we’ll match you with one of our hand-picked advisers to help you get started.

Today in Equity Mates