Big business says it will transform productivity. Unions say it will destroy jobs. Labor's in the middle
Big business and unions are on a collision course over Labor's plans to curb the use of artificial intelligence – a policy with potential to create another flashpoint with the Trump administration.
The federal government has been mulling new laws or regulations to limit the potentially damaging effect of some automated tools, mirroring moves in Europe. The EU attracted the wrath of US Vice-President JD Vance, who said in February that 'excessive regulation of the AI sector could kill a transformative industry'.
Australia's most influential corporate lobby group, the Business Council of Australia, is calling on Prime Minister Anthony Albanese to shun calls for heavier regulation stemming from the ethics debates surrounding advances such as OpenAI.
The argument to avoid curbs puts the business lobby on the side of Treasury secretary Steven Kennedy, who said last week that AI presented immense economic opportunities and existing regulations should be favoured instead of new rules. But unions are pushing for federal regulations to protect workers, setting up a fresh contest on industrial relations in Labor's second term.
BCA boss Bran Black wants schools to teach about AI in primary school and is arguing for large boosts to research in the sector to drive up Australia's sagging rate of productivity and material living standards.
Australia must avoid EU-style laws which are too broad, according to Black, a former adviser to ex-NSW premier Dominic Perrottet.
'We should always start from the premise that the application and use of AI is overwhelmingly positive and will increase our collective prosperity,' Black told this masthead.
The BCA is pointing to existing applications of AI to prove its potential as an economic boon, including Commonwealth Bank using machines to read documents, BHP using the technology to manage resources and save water, and Salesforce addressing 84 per cent of customer inquiries without human involvement.
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Perth Now
25 minutes ago
- Perth Now
Chip stocks lift Wall St as investors await trade talks
US stock indexes have edged higher, helped by gains in Nvidia and other chipmakers, as investors awaited possible negotiations between the United States and its trading partners for more clarity on tariff plans. US President Donald Trump and Chinese leader Xi Jinping are set to speak this week, the White House said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. Trump's administration wants countries to provide their best offer on trade negotiations by Wednesday as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to negotiating partners seen by Reuters. Trump said last week he planned to double tariffs on imported steel and aluminium to 50 per cent starting on Wednesday, fuelling fresh concerns among investors and hampering global stocks as they approached record highs. A softening of Trump's harsh trade stance allowed a recovery in risky assets in May, with the benchmark S&P 500 and the tech-heavy Nasdaq posting their biggest monthly percentage gain since November 2023. The S&P 500 remains less than 4.0 per cent away from its record peak touched in February. "The markets are still trading with a decent level of uncertainty because they're not sure how everything's going to turn out," said Chris Zaccarelli, chief investment officer at Northlight Asset Management. "Having a best and final offer deadline and a framework to move forward should be positive for the markets." In early trading on Tuesday, the Dow Jones Industrial Average rose 10.40 points, or 0.02 per cent, to 42,315.12, the S&P 500 gained 10.39 points, or 0.17 per cent, to 5,946.18 and the Nasdaq Composite gained 87.28 points, or 0.46 per cent, to 19,330.74. Six of the 11 major S&P 500 sub-sectors fell. Communication services declined the most with a nearly 0.7 per cent fall. On the flip side, information technology stocks led gains with a 0.8 per cent rise, helped by a 2.7 per cent rise in Nvidia. Chipmaker Broadcom rose 2.1 per cent ahead of its results later this week. Constellation Energy rose 2.9 per cent after Meta Platforms said it had struck a power agreement with the utility's nuclear plant. It lifted other nuclear stocks such as Vistra Corp, up 4.4 per cent, GE Vernova, up 1.8 per cent, and NuScale Power, up 2.1 per cent. A US Labor Department report showed job openings increased in April but lay-offs picked up, signalling a slowing labour market as tariffs impact the economic outlook. Central bank officials including Fed Board governor Lisa Cook, Chicago Fed president Austan Goolsbee and Dallas president Lorie Logan are due to speak through the day. Monthly jobs data on Friday will offer more signs on how trade uncertainty is affecting the world's biggest economy. Pinterest rose 4.7 per cent after JPMorgan raised its rating to "overweight" from "neutral". Dollar General jumped 12.9 per cent as the discount retailer raised its annual sales forecast after surpassing quarterly sales expectations. Advancing issues outnumbered decliners by a 1.61-to-1 ratio on the NYSE and by a 1.67-to-1 ratio on the Nasdaq. The S&P 500 posted 24 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 66 new highs and 41 new lows.
The Advertiser
3 hours ago
- The Advertiser
US economic growth to slow to 1.6 per cent, OECD says
US economic growth will slow to 1.6 per cent this year from 2.8 per cent last year as President Donald Trump's erratic trade wars disrupt global commerce, leaving businesses and consumers paralysed by uncertainty, the OECD says. The Organisation for Economic Cooperation and Development forecast the US economy - the world's largest - will slow further to just 1.5 per cent in 2026. Trump's policies have raised average US tariff rates from around 2.5 per cent to 15.4 per cent, the highest since 1938, according to the OECD. World economic growth will slow to just 2.9 per cent this year and stay there in 2026, according to the forecast. It marks a substantial deceleration from growth of 3.3 per cent global growth last year and 3.4 per cent in 2023. The world economy has proven remarkably resilient in recent years, continuing to expand steadily in the face of global shocks such as the COVID-19 pandemic and Russia's invasion of Ukraine. But global trade and the economic outlook have been clouded by Trump's sweeping taxes on imports, the unpredictable way he's rolled them out and the threat of retaliation from other countries. Reversing decades of US policy in favour of freer world trade, Trump has levied 10 per cent tariffs on imports from almost every country. He's also threatened more import taxes, including a doubling of his tariffs on steel and aluminium to 50 per cent. Without mentioning Trump by name, OECD chief economist Álvaro Pereira wrote in a commentary to accompany the forecast that "we have seen a significant increase in trade barriers as well as in economic and trade policy uncertainty. This sharp rise in uncertainty has negatively impacted business and consumer confidence and is set to hold back trade and investment." China - the world's second-biggest economy - is forecast to see growth decelerate from five per cent last year to 4.7 per cent in 2025 and 4.3 per cent in 2026. Chinese exporters will be hurt by Trump's tariffs, hobbling an economy already weakened by the collapse of the nation's real estate market. Some of the damage will be offset by help from the government: Beijing last month outlined plans to cut interest rates and encourage bank lending as well as allocating more money for factory upgrades and elder care, among other things. The 20 countries that share the euro currency will collectively see economic growth pick up from 0.8 per cent last year to one per cent in 2025 and 1.2 per cent next year, the OECD said, helped by interest rate cuts from the European Central Bank. The Paris-based OECD, comprising 38 member countries, works to promote international trade and prosperity and issues periodic reports and analyses. US economic growth will slow to 1.6 per cent this year from 2.8 per cent last year as President Donald Trump's erratic trade wars disrupt global commerce, leaving businesses and consumers paralysed by uncertainty, the OECD says. The Organisation for Economic Cooperation and Development forecast the US economy - the world's largest - will slow further to just 1.5 per cent in 2026. Trump's policies have raised average US tariff rates from around 2.5 per cent to 15.4 per cent, the highest since 1938, according to the OECD. World economic growth will slow to just 2.9 per cent this year and stay there in 2026, according to the forecast. It marks a substantial deceleration from growth of 3.3 per cent global growth last year and 3.4 per cent in 2023. The world economy has proven remarkably resilient in recent years, continuing to expand steadily in the face of global shocks such as the COVID-19 pandemic and Russia's invasion of Ukraine. But global trade and the economic outlook have been clouded by Trump's sweeping taxes on imports, the unpredictable way he's rolled them out and the threat of retaliation from other countries. Reversing decades of US policy in favour of freer world trade, Trump has levied 10 per cent tariffs on imports from almost every country. He's also threatened more import taxes, including a doubling of his tariffs on steel and aluminium to 50 per cent. Without mentioning Trump by name, OECD chief economist Álvaro Pereira wrote in a commentary to accompany the forecast that "we have seen a significant increase in trade barriers as well as in economic and trade policy uncertainty. This sharp rise in uncertainty has negatively impacted business and consumer confidence and is set to hold back trade and investment." China - the world's second-biggest economy - is forecast to see growth decelerate from five per cent last year to 4.7 per cent in 2025 and 4.3 per cent in 2026. Chinese exporters will be hurt by Trump's tariffs, hobbling an economy already weakened by the collapse of the nation's real estate market. Some of the damage will be offset by help from the government: Beijing last month outlined plans to cut interest rates and encourage bank lending as well as allocating more money for factory upgrades and elder care, among other things. The 20 countries that share the euro currency will collectively see economic growth pick up from 0.8 per cent last year to one per cent in 2025 and 1.2 per cent next year, the OECD said, helped by interest rate cuts from the European Central Bank. The Paris-based OECD, comprising 38 member countries, works to promote international trade and prosperity and issues periodic reports and analyses. US economic growth will slow to 1.6 per cent this year from 2.8 per cent last year as President Donald Trump's erratic trade wars disrupt global commerce, leaving businesses and consumers paralysed by uncertainty, the OECD says. The Organisation for Economic Cooperation and Development forecast the US economy - the world's largest - will slow further to just 1.5 per cent in 2026. Trump's policies have raised average US tariff rates from around 2.5 per cent to 15.4 per cent, the highest since 1938, according to the OECD. World economic growth will slow to just 2.9 per cent this year and stay there in 2026, according to the forecast. It marks a substantial deceleration from growth of 3.3 per cent global growth last year and 3.4 per cent in 2023. The world economy has proven remarkably resilient in recent years, continuing to expand steadily in the face of global shocks such as the COVID-19 pandemic and Russia's invasion of Ukraine. But global trade and the economic outlook have been clouded by Trump's sweeping taxes on imports, the unpredictable way he's rolled them out and the threat of retaliation from other countries. Reversing decades of US policy in favour of freer world trade, Trump has levied 10 per cent tariffs on imports from almost every country. He's also threatened more import taxes, including a doubling of his tariffs on steel and aluminium to 50 per cent. Without mentioning Trump by name, OECD chief economist Álvaro Pereira wrote in a commentary to accompany the forecast that "we have seen a significant increase in trade barriers as well as in economic and trade policy uncertainty. This sharp rise in uncertainty has negatively impacted business and consumer confidence and is set to hold back trade and investment." China - the world's second-biggest economy - is forecast to see growth decelerate from five per cent last year to 4.7 per cent in 2025 and 4.3 per cent in 2026. Chinese exporters will be hurt by Trump's tariffs, hobbling an economy already weakened by the collapse of the nation's real estate market. Some of the damage will be offset by help from the government: Beijing last month outlined plans to cut interest rates and encourage bank lending as well as allocating more money for factory upgrades and elder care, among other things. The 20 countries that share the euro currency will collectively see economic growth pick up from 0.8 per cent last year to one per cent in 2025 and 1.2 per cent next year, the OECD said, helped by interest rate cuts from the European Central Bank. The Paris-based OECD, comprising 38 member countries, works to promote international trade and prosperity and issues periodic reports and analyses. US economic growth will slow to 1.6 per cent this year from 2.8 per cent last year as President Donald Trump's erratic trade wars disrupt global commerce, leaving businesses and consumers paralysed by uncertainty, the OECD says. The Organisation for Economic Cooperation and Development forecast the US economy - the world's largest - will slow further to just 1.5 per cent in 2026. Trump's policies have raised average US tariff rates from around 2.5 per cent to 15.4 per cent, the highest since 1938, according to the OECD. World economic growth will slow to just 2.9 per cent this year and stay there in 2026, according to the forecast. It marks a substantial deceleration from growth of 3.3 per cent global growth last year and 3.4 per cent in 2023. The world economy has proven remarkably resilient in recent years, continuing to expand steadily in the face of global shocks such as the COVID-19 pandemic and Russia's invasion of Ukraine. But global trade and the economic outlook have been clouded by Trump's sweeping taxes on imports, the unpredictable way he's rolled them out and the threat of retaliation from other countries. Reversing decades of US policy in favour of freer world trade, Trump has levied 10 per cent tariffs on imports from almost every country. He's also threatened more import taxes, including a doubling of his tariffs on steel and aluminium to 50 per cent. Without mentioning Trump by name, OECD chief economist Álvaro Pereira wrote in a commentary to accompany the forecast that "we have seen a significant increase in trade barriers as well as in economic and trade policy uncertainty. This sharp rise in uncertainty has negatively impacted business and consumer confidence and is set to hold back trade and investment." China - the world's second-biggest economy - is forecast to see growth decelerate from five per cent last year to 4.7 per cent in 2025 and 4.3 per cent in 2026. Chinese exporters will be hurt by Trump's tariffs, hobbling an economy already weakened by the collapse of the nation's real estate market. Some of the damage will be offset by help from the government: Beijing last month outlined plans to cut interest rates and encourage bank lending as well as allocating more money for factory upgrades and elder care, among other things. The 20 countries that share the euro currency will collectively see economic growth pick up from 0.8 per cent last year to one per cent in 2025 and 1.2 per cent next year, the OECD said, helped by interest rate cuts from the European Central Bank. The Paris-based OECD, comprising 38 member countries, works to promote international trade and prosperity and issues periodic reports and analyses.
The Advertiser
3 hours ago
- The Advertiser
Polish PM says confidence vote will held on June 11
Poland's Prime Minister Donald Tusk says parliament will hold a confidence vote on his government on June 11. He called for the vote after his political ally, the liberal Warsaw mayor, lost Poland's presidential election to conservative Karol Nawrocki. "We are starting the session in a new political reality," Tusk said, at the start of a cabinet meeting in Warsaw. "The political reality is new, because we have a new president. But the constitution, our obligations and the expectations of citizens have not changed. In Poland, the government rules, which is a great obligation and honour." Tusk's government runs most of the day-to-day matters in Poland. It also exists separately from the presidency, but the president holds power to veto laws and influence foreign policy, and Nawrocki's win will make it extremely difficult for Tusk to press his pro-EU agenda. There are already questions about whether Tusk's fragile coalition can survive until the next scheduled parliamentary election at the end of 2027. The decision to call a confidence vote is apparently an attempt by Tusk to try to reassert authority in a shifting political situation where some of his coalition partners might be less likely to want to stick with him. Tusk oversees a coalition of several parties spanning an ideological divide, from left-wing progressives to centrists to agrarian conservatives. The divided coalition has failed to agree on some issues and the government has failed to fulfil some of Tusk's key promises, including a liberalisation of the restrictive abortion law. Nawrocki, who was supported by US President Donald Trump, won 50.89 per cent of votes in a tight race against Warsaw Mayor Rafał Trzaskowski, who received 49.11 per cent. The election revealed deep divisions in the nation along the eastern flank of NATO and the European Union. Nawrocki, who is set to take office on August 6, is expected to shape Poland's domestic and foreign policy in ways that could strain ties with Brussels while aligning the central European nation of nearly 38 million people more closely with the Trump administration. Trump welcomed his election, saying on his social media platform Truth Social: "Congratulations Poland, you picked a WINNER!" Nawrocki replied to Trump on X, saying: "Thank you, Mr President. Strong alliance with the USA, as well as partnership based on close co-operation are my top priorities." AP Poland's Prime Minister Donald Tusk says parliament will hold a confidence vote on his government on June 11. He called for the vote after his political ally, the liberal Warsaw mayor, lost Poland's presidential election to conservative Karol Nawrocki. "We are starting the session in a new political reality," Tusk said, at the start of a cabinet meeting in Warsaw. "The political reality is new, because we have a new president. But the constitution, our obligations and the expectations of citizens have not changed. In Poland, the government rules, which is a great obligation and honour." Tusk's government runs most of the day-to-day matters in Poland. It also exists separately from the presidency, but the president holds power to veto laws and influence foreign policy, and Nawrocki's win will make it extremely difficult for Tusk to press his pro-EU agenda. There are already questions about whether Tusk's fragile coalition can survive until the next scheduled parliamentary election at the end of 2027. The decision to call a confidence vote is apparently an attempt by Tusk to try to reassert authority in a shifting political situation where some of his coalition partners might be less likely to want to stick with him. Tusk oversees a coalition of several parties spanning an ideological divide, from left-wing progressives to centrists to agrarian conservatives. The divided coalition has failed to agree on some issues and the government has failed to fulfil some of Tusk's key promises, including a liberalisation of the restrictive abortion law. Nawrocki, who was supported by US President Donald Trump, won 50.89 per cent of votes in a tight race against Warsaw Mayor Rafał Trzaskowski, who received 49.11 per cent. The election revealed deep divisions in the nation along the eastern flank of NATO and the European Union. Nawrocki, who is set to take office on August 6, is expected to shape Poland's domestic and foreign policy in ways that could strain ties with Brussels while aligning the central European nation of nearly 38 million people more closely with the Trump administration. Trump welcomed his election, saying on his social media platform Truth Social: "Congratulations Poland, you picked a WINNER!" Nawrocki replied to Trump on X, saying: "Thank you, Mr President. Strong alliance with the USA, as well as partnership based on close co-operation are my top priorities." AP Poland's Prime Minister Donald Tusk says parliament will hold a confidence vote on his government on June 11. He called for the vote after his political ally, the liberal Warsaw mayor, lost Poland's presidential election to conservative Karol Nawrocki. "We are starting the session in a new political reality," Tusk said, at the start of a cabinet meeting in Warsaw. "The political reality is new, because we have a new president. But the constitution, our obligations and the expectations of citizens have not changed. In Poland, the government rules, which is a great obligation and honour." Tusk's government runs most of the day-to-day matters in Poland. It also exists separately from the presidency, but the president holds power to veto laws and influence foreign policy, and Nawrocki's win will make it extremely difficult for Tusk to press his pro-EU agenda. There are already questions about whether Tusk's fragile coalition can survive until the next scheduled parliamentary election at the end of 2027. The decision to call a confidence vote is apparently an attempt by Tusk to try to reassert authority in a shifting political situation where some of his coalition partners might be less likely to want to stick with him. Tusk oversees a coalition of several parties spanning an ideological divide, from left-wing progressives to centrists to agrarian conservatives. The divided coalition has failed to agree on some issues and the government has failed to fulfil some of Tusk's key promises, including a liberalisation of the restrictive abortion law. Nawrocki, who was supported by US President Donald Trump, won 50.89 per cent of votes in a tight race against Warsaw Mayor Rafał Trzaskowski, who received 49.11 per cent. The election revealed deep divisions in the nation along the eastern flank of NATO and the European Union. Nawrocki, who is set to take office on August 6, is expected to shape Poland's domestic and foreign policy in ways that could strain ties with Brussels while aligning the central European nation of nearly 38 million people more closely with the Trump administration. Trump welcomed his election, saying on his social media platform Truth Social: "Congratulations Poland, you picked a WINNER!" Nawrocki replied to Trump on X, saying: "Thank you, Mr President. Strong alliance with the USA, as well as partnership based on close co-operation are my top priorities." AP Poland's Prime Minister Donald Tusk says parliament will hold a confidence vote on his government on June 11. He called for the vote after his political ally, the liberal Warsaw mayor, lost Poland's presidential election to conservative Karol Nawrocki. "We are starting the session in a new political reality," Tusk said, at the start of a cabinet meeting in Warsaw. "The political reality is new, because we have a new president. But the constitution, our obligations and the expectations of citizens have not changed. In Poland, the government rules, which is a great obligation and honour." Tusk's government runs most of the day-to-day matters in Poland. It also exists separately from the presidency, but the president holds power to veto laws and influence foreign policy, and Nawrocki's win will make it extremely difficult for Tusk to press his pro-EU agenda. There are already questions about whether Tusk's fragile coalition can survive until the next scheduled parliamentary election at the end of 2027. The decision to call a confidence vote is apparently an attempt by Tusk to try to reassert authority in a shifting political situation where some of his coalition partners might be less likely to want to stick with him. Tusk oversees a coalition of several parties spanning an ideological divide, from left-wing progressives to centrists to agrarian conservatives. The divided coalition has failed to agree on some issues and the government has failed to fulfil some of Tusk's key promises, including a liberalisation of the restrictive abortion law. Nawrocki, who was supported by US President Donald Trump, won 50.89 per cent of votes in a tight race against Warsaw Mayor Rafał Trzaskowski, who received 49.11 per cent. The election revealed deep divisions in the nation along the eastern flank of NATO and the European Union. Nawrocki, who is set to take office on August 6, is expected to shape Poland's domestic and foreign policy in ways that could strain ties with Brussels while aligning the central European nation of nearly 38 million people more closely with the Trump administration. Trump welcomed his election, saying on his social media platform Truth Social: "Congratulations Poland, you picked a WINNER!" Nawrocki replied to Trump on X, saying: "Thank you, Mr President. Strong alliance with the USA, as well as partnership based on close co-operation are my top priorities." AP
