Banks weigh down ASX, but miners keep head above water
The ASX200 was 65.5 points, or 0.8 per cent lower, at 8677.3 just after midday, with 9 of 11 sectors in the red, with healthcare and financial stocks the biggest losers.
Trump issued an executive order on Thursday night, Washington time, confirming new tariff rates for several trading partners following 'deals' struck with their leaders, as well as revised tariffs for a number of other countries.
Australia received the lowest rate, 10 per cent, when the so-called reciprocal tariffs were announced on April 2. Australia was not named among the changes on Friday (AEST), and a White House fact sheet confirmed any countries not on the new list would remain on 10 per cent.
Financial stocks slumped, with NAB falling 1.7 per cent, Commonwealth Bank lost 1.5 per cent, Westpac shed 1.3 per cent and ANZ Bank slipped 0.2 per cent in early afternoon trade.
Gaming giant Star Entertainment Group was 4.5 per cent lower as it announced a deal to sell its 50 per cent stake in its Queen's Wharf hotel and casino complex had collapsed.
Mining stocks are higher. BHP gained 0.9 per cent, Rio Tinto added 0.6 per cent and Fortescue rose 0.4 per cent.
Healthcare stocks declined as Trump shook up the industry, after it was revealed the US government sent letters to 17 of the world's largest drugmakers demanding they charge the US what other countries pay for new medicines. CSL was 2.3 per cent lower.
The ASX lost 0.2 per cent on Thursday. The Australian dollar was fetching US64.29¢ at 12.12pm.
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7NEWS
41 minutes ago
- 7NEWS
Working from home could be a legal right for millions of Aussies under new plan
A state government has revealed plans to enshrine the right to work from home for both public and private-sector employees. The premier behind the Australian-first push hails its as the next frontier in worker rights that would benefit working parents. However a legal right to work from home would be divisive and likely send jobs elsewhere, business groups say. The Victorian government has promised to introduce legislation in 2026 for the right to work from home on two days per week, in contrast to other states that want public servants to spend more time in the office. The proposed law would apply to all public and private sector employees in Victoria who can reasonably do their job from home. Details are yet to be worked through and Premier Jacinta Allan signalled the changes could come into effect under Victoria's Equal Opportunity Act, as private workplaces are regulated by federal laws. Allan promoted the plan as beneficial to both the economy and families, likening it to other significant workplace changes in recent decades including more women entering the workforce. 'There's been many, many gains over many, many generations that have supported women's opportunity to increase their workforce participation, this is just another important, big step,' she told reporters. Issues such as the definition of remote work, who can do it, how it would affect part-time workers and the types of businesses to which the law would apply, will be figured out through a consultation process. Allan said the decision had gone through cabinet and brushed off suggestions it could trigger a court challenge. The plan drew sharp criticism from business groups, with Australian Industry Group Victorian head Tim Piper describing it as serious government overreach that undermines business autonomy. He described it as 'pure political theatre' designed to wedge the opposition while also running counter to both global trends and business best practice. 'These policies foster an 'us versus them' dynamic, privileging some white-collar workers while leaving blue-collar employees with no choice,' he said. 'It's divisive, disruptive, and dangerous.' Victorian Chamber of Commerce and Industry chief executive Paul Guerra claimed businesses would move interstate and jobs would be lost if Victoria moved away from the legislated national system. '(Work from home) certainly works well in some contexts, but that should be determined by the employer in consultation with the employee,' he said. Allan promised to introduce the law in 2026 prior to the state election. Polls indicate Labor is on track to win a fourth term but the November 2026 poll will be the first as premier for Allan, who lags opposition leader Brad Battin as preferred state leader. Battin said working from home was a valuable option for many workers and families. 'We support measures that help Victorians enjoy a better work-life balance, and will review any legislation closely, to ensure it supports flexibility, productivity and personal choice,' he said. The federal coalition's push to end to working-from-home for public servants was partly blamed for its unsuccessful result at the May federal election, despite abandoning the policy before polling day. NSW Premier Chris Minns has described remote-work provisions as a thing of the past but stopped short of seeking an end to working from home, instead ordering public servants to work principally in offices. More than one third of Australian employees usually work from home but that number swells to 60 per cent of managers and people in professional services, according to the Australian Bureau of Statistics. The bureau says 43 per cent who work from home do overtime, compared to one quarter of those who do not.
News.com.au
an hour ago
- News.com.au
Donald Trump's tariffs have a large role to play in Australia's interest rates cycle
When the RBA handed down its most interest rate decision last month, it shocked economists and the public by holding the cash rate at 3.85 per cent. The widely held consensus had been strongly in favour of another 0.25 per cent cut to follow the previous one in May. In the weeks since the Reserve Bank's decision, economic data has been mixed, with some elements such as the recent retail sales report providing support for the RBA's message of caution, while on the other hand, the recent substantial rise in unemployment was far more supportive of the cash rate being cut. In several important ways the RBA's uncertainty about the path forward for interest rates is arguably justified. Trump, Trade And Global Uncertainty At a global scale, the implementation of the Trump Administration's various tariffs and threats of even greater trade barriers to nation's not willing to make a swift agreement with the United States remains a source of major questions for central banks around the world. The challenge posed by tariffs to the path of interest rates was recently summed up by JPMorgan Chase (the world's most valuable bank) CEO Jamie Dimon at an event hosted by the Irish government. 'The market is pricing a 20% chance (of rising interest rates). I would price in a 40-50% chance I would put that as a cause for concern,' Dimon said. Dimon went on to cite the Trump administration's tariffs, the restructuring of global trade and the growing U.S government budget deficit as inflationary forces impacting the path forward for interest rates. While U.S interest rates can and do rise and fall independently of those of other nations, they are also the most important global benchmark. Theoretically, the U.S Federal Reserve holding a higher interest rate than the RBA can have two major knock on effects for Australia. It can force a repricing of Australian interest rates to better reflect the global benchmark. Or if the RBA chooses to allow the distance between the RBA cash rate and the U.S federal funds rate to expand, it places downward pressure on the value of the Australian dollar in a vacuum. A Mixed Bag For Australia At a domestic level, there is also a high degree of uncertainty impacting the path forward for interest rates. With government currently the driving force behind broader economic growth and employment growth in generally taxpayer funded sectors of the economy (public administration, education and, healthcare and social assistance) the main driver of the resilience of the labour market, it's challenging for the RBA to know exactly when a rate cut would be appropriate. Meanwhile, the deeply mixed nature of retail sales growth depending on the lens with which it is viewed also complicates matters. For example, looking at the latest headline retail sales showing a 1.2 per cent rise in turnover or June in a vacuum, it would be hard to justify a rate cut. 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With the growth in the domestic consumer economy concentrated in the 65 and over age demographic and otherwise reliant on population growth, the level of migration set by the Albanese government will be vital in determining to what degree aggregate consumer demand is weak enough to warrant further cuts in interest rates. Meanwhile, the level of employment growth stemming from government policy will also be a key consideration. If the current pullback continues without a corresponding increase from the private sector, the urgency and magnitude with which the RBA approaches the ongoing rate cut cycle may intensify significantly. Ultimately, it's entirely possible that events beyond our shores end up playing a significant role in the direction of Australian interest rates, whether that be as a result of President Trump's tariffs or the Chinese economy slowing more swiftly than expected due to the ongoing trade conflict and still simmering domestic economic issues.
The Advertiser
4 hours ago
- The Advertiser
PM says Indigenous partnership to unlock true potential
A "real economy" is needed in Arnhem Land, say Indigenous leaders addressing a major Australian cultural gathering. Yothu Yindi Foundation chair Djawa Yunupingu has told crowds at Garma Festival at Gulkula in northeast Arnhem Land his people plan on being part of the future. "Yolngu people are not suddenly going to stop and rest and think everything is OK," he said on Saturday. "We intend to use our lands and waters for our own future and the future of our children, and the future of our nation." His comments came as Prime Minister Anthony Albanese used his Garma address to unveil an economic partnership with the Coalition of Peaks. "Our government also wants to work with communities as economic decision-makers, to unlock the true potential of their land and their endeavour beyond passing transactions to lasting partnerships that create and share wealth," he said. The approach would allow traditional owners to advocate for infrastructure, housing and energy projects on their land and to build equity beyond the land itself. Mr Albanese also announced $70 million for Indigenous clean energy projects, $75 million for native title reforms and $31 million for a mobile TAFE program under the partnership. The prime minister said, "we have made a start but there is more to do". "We must end the stalemate that arises when native title organisations with little in the way of back-of-house, or legal and commercial expertise are expected to negotiate with multinational firms." Mr Albanese said the partnership builds on agreements made under Closing the Gap, saying it is a "new way of doing business". Closing the Gap has been a major topic of discussion at Garma, which has become a ground for political conversations and policy announcements while also focusing on culture and empowerment of the local Yolngu people. Data released on Thursday revealed just four of 19 targets are on track to be met, with another four goals going backwards - adult incarceration, children in out-of-home care, suicide rates and child development. Mr Albanese said Closing the Gap data underlined the fact that a different, dedicated approach was required to address these issues. "Reports and reviews have their place but they are not a substitute for outcomes, results," he said. "Creating a process matters but it is not the same thing as making progress." Mr Yunupingu closed his address by telling the prime minister he was open to doing business together. "My brothers and sisters are telling me now, we have serious business," he said. "They are reminding me that making hard decisions with serious people is what leadership is all about." 13YARN 13 92 76 Lifeline 13 11 14 A "real economy" is needed in Arnhem Land, say Indigenous leaders addressing a major Australian cultural gathering. Yothu Yindi Foundation chair Djawa Yunupingu has told crowds at Garma Festival at Gulkula in northeast Arnhem Land his people plan on being part of the future. "Yolngu people are not suddenly going to stop and rest and think everything is OK," he said on Saturday. "We intend to use our lands and waters for our own future and the future of our children, and the future of our nation." His comments came as Prime Minister Anthony Albanese used his Garma address to unveil an economic partnership with the Coalition of Peaks. "Our government also wants to work with communities as economic decision-makers, to unlock the true potential of their land and their endeavour beyond passing transactions to lasting partnerships that create and share wealth," he said. The approach would allow traditional owners to advocate for infrastructure, housing and energy projects on their land and to build equity beyond the land itself. Mr Albanese also announced $70 million for Indigenous clean energy projects, $75 million for native title reforms and $31 million for a mobile TAFE program under the partnership. The prime minister said, "we have made a start but there is more to do". "We must end the stalemate that arises when native title organisations with little in the way of back-of-house, or legal and commercial expertise are expected to negotiate with multinational firms." Mr Albanese said the partnership builds on agreements made under Closing the Gap, saying it is a "new way of doing business". Closing the Gap has been a major topic of discussion at Garma, which has become a ground for political conversations and policy announcements while also focusing on culture and empowerment of the local Yolngu people. Data released on Thursday revealed just four of 19 targets are on track to be met, with another four goals going backwards - adult incarceration, children in out-of-home care, suicide rates and child development. Mr Albanese said Closing the Gap data underlined the fact that a different, dedicated approach was required to address these issues. "Reports and reviews have their place but they are not a substitute for outcomes, results," he said. "Creating a process matters but it is not the same thing as making progress." Mr Yunupingu closed his address by telling the prime minister he was open to doing business together. "My brothers and sisters are telling me now, we have serious business," he said. "They are reminding me that making hard decisions with serious people is what leadership is all about." 13YARN 13 92 76 Lifeline 13 11 14 A "real economy" is needed in Arnhem Land, say Indigenous leaders addressing a major Australian cultural gathering. Yothu Yindi Foundation chair Djawa Yunupingu has told crowds at Garma Festival at Gulkula in northeast Arnhem Land his people plan on being part of the future. "Yolngu people are not suddenly going to stop and rest and think everything is OK," he said on Saturday. "We intend to use our lands and waters for our own future and the future of our children, and the future of our nation." His comments came as Prime Minister Anthony Albanese used his Garma address to unveil an economic partnership with the Coalition of Peaks. "Our government also wants to work with communities as economic decision-makers, to unlock the true potential of their land and their endeavour beyond passing transactions to lasting partnerships that create and share wealth," he said. The approach would allow traditional owners to advocate for infrastructure, housing and energy projects on their land and to build equity beyond the land itself. Mr Albanese also announced $70 million for Indigenous clean energy projects, $75 million for native title reforms and $31 million for a mobile TAFE program under the partnership. The prime minister said, "we have made a start but there is more to do". "We must end the stalemate that arises when native title organisations with little in the way of back-of-house, or legal and commercial expertise are expected to negotiate with multinational firms." Mr Albanese said the partnership builds on agreements made under Closing the Gap, saying it is a "new way of doing business". Closing the Gap has been a major topic of discussion at Garma, which has become a ground for political conversations and policy announcements while also focusing on culture and empowerment of the local Yolngu people. Data released on Thursday revealed just four of 19 targets are on track to be met, with another four goals going backwards - adult incarceration, children in out-of-home care, suicide rates and child development. Mr Albanese said Closing the Gap data underlined the fact that a different, dedicated approach was required to address these issues. "Reports and reviews have their place but they are not a substitute for outcomes, results," he said. "Creating a process matters but it is not the same thing as making progress." Mr Yunupingu closed his address by telling the prime minister he was open to doing business together. "My brothers and sisters are telling me now, we have serious business," he said. "They are reminding me that making hard decisions with serious people is what leadership is all about." 13YARN 13 92 76 Lifeline 13 11 14 A "real economy" is needed in Arnhem Land, say Indigenous leaders addressing a major Australian cultural gathering. Yothu Yindi Foundation chair Djawa Yunupingu has told crowds at Garma Festival at Gulkula in northeast Arnhem Land his people plan on being part of the future. "Yolngu people are not suddenly going to stop and rest and think everything is OK," he said on Saturday. "We intend to use our lands and waters for our own future and the future of our children, and the future of our nation." His comments came as Prime Minister Anthony Albanese used his Garma address to unveil an economic partnership with the Coalition of Peaks. "Our government also wants to work with communities as economic decision-makers, to unlock the true potential of their land and their endeavour beyond passing transactions to lasting partnerships that create and share wealth," he said. The approach would allow traditional owners to advocate for infrastructure, housing and energy projects on their land and to build equity beyond the land itself. Mr Albanese also announced $70 million for Indigenous clean energy projects, $75 million for native title reforms and $31 million for a mobile TAFE program under the partnership. The prime minister said, "we have made a start but there is more to do". "We must end the stalemate that arises when native title organisations with little in the way of back-of-house, or legal and commercial expertise are expected to negotiate with multinational firms." Mr Albanese said the partnership builds on agreements made under Closing the Gap, saying it is a "new way of doing business". Closing the Gap has been a major topic of discussion at Garma, which has become a ground for political conversations and policy announcements while also focusing on culture and empowerment of the local Yolngu people. Data released on Thursday revealed just four of 19 targets are on track to be met, with another four goals going backwards - adult incarceration, children in out-of-home care, suicide rates and child development. Mr Albanese said Closing the Gap data underlined the fact that a different, dedicated approach was required to address these issues. "Reports and reviews have their place but they are not a substitute for outcomes, results," he said. "Creating a process matters but it is not the same thing as making progress." Mr Yunupingu closed his address by telling the prime minister he was open to doing business together. "My brothers and sisters are telling me now, we have serious business," he said. "They are reminding me that making hard decisions with serious people is what leadership is all about." 13YARN 13 92 76 Lifeline 13 11 14
