Some superannuation funds are waking up to a harsh reality: they’ve been left behind by the market’s hottest rally. Investors are discovering they’re underexposed to names like Nvidia and Microsoft — both of which recently hit record highs. Now they’re shifting course.
Canva launched an employee stock sale at a valuation of $42 billion, marking a significant leap in value for the Australian design software startup that’s betting on artificial intelligence for growth.
Mining tycoon Gina Rinehart, Australia’s richest person, has urged the country to ditch its pursuit of net zero emissions, insisting the costs of climate action will devastate sectors from healthcare to logistics and defense.
New Zealand’s central bank cut interest rates to a three-year low and signaled further easing, saying the economy has stalled. The RBNZ resumed rate cuts after pausing in July as the sputtering economic recovery reduces concerns about an uptick in price pressures.
Christian Hawkesby, governor of the Reserve Bank of New Zealand (RBNZ). Photographer: Mark Coote/Bloomberg
Meanwhile, Australia’s central bank is facing an estimated A$1.2 billion overhaul of its 22-story Sydney head office — almost five times the original estimate — after the discovery of widespread asbestos turned a simple refurbishment into a near total rebuild.
A downbeat outlook on the US housing market from James Hardie sent shares of the building materials producer tumbling the most in five decades, the latest sign of caution around a pillar of the world’s largest economy.
And flush with cash after an unprecedented legal victory over Qantas Airways, union boss Michael Kaine is warning other big businesses: Break Australia’s employment laws at your peril.
What happened overnight
Here’s what my colleague, market strategist Mike “Willo” Wilson says happened while we were sleeping…
Tech stocks weighed sentiment, dragging the Nasdaq and S&P 500 Indexes lower, though value investors came in at the close to lift them off session lows. The dollar was steady and Treasury yields edged lower as markets await Fed chair Powell’s speech. The Aussie dollar declined a little but kiwi dollar is carrying heavy losses, after that RBNZ rate cut. Australia has a consumer inflation expectations reading while New Zealand has monthly trade data. ASX futures suggest a firm opening for local stocks.
Most Federal Reserve officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month, as tariffs fueled a growing divide within the central bank’s rate-setting committee.
In other Fednews, Governor Lisa Cook signaled her intention to remain at the central bank in defiance of calls for her resignation by President Donald Trump over allegations of mortgage fraud.
Fed Governor Lisa Cook Photographer: Al Drago/Bloomberg
Microsoft has curtailed Chinese companies’ access to advance notifications about cybersecurity vulnerabilities in its technology after investigating whether a leak led to a series of hacks exploiting flaws in its SharePoint software.
Elon Musk’s SpaceX has made highly visible test flights that sometimes fail in spectacular ways something of a calling card. Yet Starship’s recent struggles are revealing how rapidly updating rockets that cost hundreds of millions to make can lead to a cascade of expensive issues.
What to watch
All times Sydney: • Final day of government’s economic roundtable (Canberra) • 11:00 a.m. — Australia August consumer inflation expectations
One more thing...
Have you been queueing to get your very own Labubu? If so, then good news — there’s a new version on its way. Shares in Chinese toy maker Pop Mart International rose the most in nearly four months on Wednesday, after founder and Chief Executive Officer Wang Ning said the company could easily surpass its annual sales projection and announced plans to launch a new mini Labubu.
A statue of Pop Mart International Group's character Labubu at one of the company's stores in Beijing, China. Photographer: Na Bian/Bloomberg
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