分类: business

  • ASX 200 gains for fourth month as miners like BHP ride global AI wave

    ASX 200 gains for fourth month as miners like BHP ride global AI wave

    The Australian equity market wrapped up a mixed trading session to notch its fourth straight month of gains in July, driven largely by a surge in materials stocks fueled by skyrocketing investor demand for copper—an critical raw material for the global rollout of artificial intelligence infrastructure. While the benchmark ASX 200 only posted a modest 0.1% gain, climbing 9.10 points to close at 8976.80, the performance marked a milestone for the local index that aligns with July’s historic reputation as one of the strongest calendar months for Australian equities. The broader All Ordinaries followed a similar trajectory, rising 14.30 points (0.16%) to settle at 9137.00, and the Australian dollar edged up to 70.32 U.S. cents by market close.

    Of the 11 major sectors tracked on the ASX, only five finished the trading day in positive territory. The standout growth came from the materials sector, which has increasingly acted as a domestic proxy for the global AI trade. Mining giants BHP and Rio Tinto led the rally, with BHP shares climbing 1.96% to $60.31 and Rio Tinto jumping 1.28% to $170.57, as copper prices climbed on growing investor recognition of copper’s non-substitutable role in manufacturing AI data center hardware, power infrastructure, and semiconductor equipment.

    Joseph Marassa, a strategist at Global X ETFs, explained that the local materials rally came on the heels of an overnight rally on the U.S. Nasdaq and a broad resurgence in investor optimism around AI development. “Materials continue to act as a local proxy for the AI trade, with investors seeking copper exposure – a key input to the AI build out – on the back of the overnight Nasdaq rally and renewed AI sentiment,” Marassa noted. Global tech markets echoed this optimism overnight: South Korea’s KOSPI index surged 17.91% led by major chip manufacturers SK Hynix and Samsung Electronics, while the U.S. Nasdaq 100 gained 3.36% to cap off a strong overnight trading session.

    The strong gains in materials were largely offset by downturns in defensive sectors, however. Healthcare stocks led the declines, with vaccine and biotech giant CSL dropping 3.81% to $123.06, Sigma Healthcare sliding 0.68% to $2.94, and medical device maker ResMed falling 1.52% to $29.79. Consumer staples also faced broad pressure, with major domestic supermarket chains both closing in the red: Woolworths dropped 1.73% to $39.77, while Coles slipped 0.70% to $24.09. Dairy producer A2 Milk also underperformed, dragging down 2.55% to $6.89.

    Despite the muted daily gain, market analysts highlighted that the ASX 200’s July performance delivered a solid 2.37% monthly return, not far off the 2.73% average July gain recorded over the past 10 years, reinforcing the month’s long-held reputation as the strongest for Australian equities. IG senior Market Analyst Tony Sycamore noted that the four-month winning streak has been supported by a combination of domestic macroeconomic factors and global sentiment shifts. “The ASX200’s gains this week have been supported by the cooler Australian inflation report for June and a more measured tone from the RBA Governor on Tuesday, which reinforced expectations the cash rate will remain at 4.35 per cent next month,” Sycamore explained, adding that “Solid trading updates from two of the major miners added further support.”

    In individual company news, several firms posted strong gains on positive corporate updates. Medical technology firm 4D Medical saw its shares jump 13.08% to $3.63 after releasing its quarterly activity report, which showed operating revenue hit $7.2 million, a 23% year-on-year increase. Energy giant Origin Energy added 0.94% to $10.76 after reporting that its June quarter revenue rose 6% from the prior quarter to $1.96 billion. The biggest single-day gain went to Energy One, whose shares rocketed 31.80% to $14.30 after the company revealed it had received an unsolicited, indicative, conditional acquisition proposal from Norwegian energy technology firm Volue AS.

  • Australian company behind Logan Paul’s Prime drink ceases trading amid $8m debt

    Australian company behind Logan Paul’s Prime drink ceases trading amid $8m debt

    The Australian subsidiary of the firm behind one of the most hyped influencer-led energy drinks of recent years has entered administration, leaving more than $8 million in outstanding debts and no clear path to a rescue buyout, new corporate filings confirm.

    Congo Brands Australia, the Melbourne-based license holder for Logan Paul and KSI’s viral Prime energy drink and Mr Beast’s Lunchily snack brand, has already terminated all of its employees amid the liquidation process, administrator Alice Ruhe of The Ruhe Group confirmed during the company’s first creditors meeting held July 17.

    Documents filed with the Australian Securities and Investments Commission (ASIC) lay bare the firm’s steep financial decline, which accelerated far beyond the worrying results disclosed in its last 2023 annual filing. The bulk of the outstanding debts are owed to related international entities: parent company Congo LLC is owed $8.85 million, while international arms of the brand including Congo Brands Korea, Japan and Switzerland are owed $361,900, $39,987, and $854,327 respectively. Third-party vendors that handled logistics, manufacturing and packaging for the brand are also out of pocket, with claims totaling more than half a million dollars from firms including BR International Logistics, Refresco Australia and CCL Label.

    Against its more than $8 million in total liabilities, the company holds just $12,000 in cash reserves, alongside $400,000 in remaining inventory and $265,000 in outstanding trade receivables, according to administrator filings.

    The collapse caps a dramatic two-year fall from grace for the Prime brand in Australia, which exploded into mainstream popularity after its 2022 launch, driven by massive social media hype from co-founders Logan Paul and KSI, two of the world’s biggest digital content creators. At the height of its popularity, the drink developed a cult following among Australian schoolchildren, with resold bottles sometimes fetching as much as $30 per can amid widespread retail shortages.

    Financial filings show the brand’s domestic sales have plummeted since that peak. In the 2023 financial year, revenue halved from $31 million the previous year to just $14.5 million, with the firm posting a net loss of $1.42 million for the 2024 fiscal year. Over the 12-month period between 2023 and 2024, the company wrote down $4.57 million in unsold inventory, cutting its total stock holdings from $28.9 million to just $1.7 million. By the end of the last reporting period, the firm held only $84,855 in cash reserves against $7.92 million in already accumulated debts, setting the stage for its eventual collapse.

  • South Korean shares surge after chip stock rout

    South Korean shares surge after chip stock rout

    After a brutal three-day sell-off that erased hundreds of billions of dollars in market capitalization from South Korea’s equity markets, share prices staged a dramatic rally on Friday, clawing back a large portion of the recent losses. By the afternoon trading session, the country’s benchmark Kospi index surged nearly 17%, with the uptick fueled almost entirely by outsized gains from the nation’s two leading semiconductor manufacturers, SK Hynix and Samsung Electronics.

    This sudden turnaround came on the heels of two key developments that restored investor confidence in AI-linked assets. First, positive earnings updates from United States tech giants Amazon and Microsoft rekindled market optimism around the massive capital inflows pouring into artificial intelligence research and infrastructure. Second, South Korean financial regulators rolled out targeted emergency measures designed to curb the aggressive sell-off that had shaken the market earlier in the week.

    The rally in AI chip stocks spilled over into other regional markets, lifting benchmark indices in both Japan and Taiwan as bullish sentiment spread across the Asia-Pacific tech sector. For SK Hynix, a key memory chip supplier to AI industry leader Nvidia, share prices closed more than 17% higher on Friday, while Samsung, the world’s largest memory chip maker, notched a 23% gain.

    Both companies had seen sharp valuation declines earlier in the week, as a global pullback in AI-related equities gathered steam. Investors had grown jittery over the scale of AI investments being made by large technology firms, with many questioning whether the sector’s sky-high valuations were justified by near-term revenue prospects.

    South Korea’s equity markets have seen extraordinary volatility in recent months, driven in part by a surge in participation from retail investors who have piled into tech stocks amid the global AI boom. So far this year, the tech-heavy Kospi has triggered market-wide circuit breakers multiple times; these mechanisms are designed to pause trading temporarily to halt uncontrolled panic selling.

    Despite the sharp pullback from the index’s all-time high set in mid-June, the Kospi still holds significant year-to-date gains: after more than doubling in value between January and mid-June, the index remains 50% above its closing level at the end of 2025, underscoring the dramatic run-up that preceded this week’s correction.

  • Banking giant HSBC sells $36bn mortgage portfolio to Blackstone, announces retail banking arm will close

    Banking giant HSBC sells $36bn mortgage portfolio to Blackstone, announces retail banking arm will close

    Global banking giant HSBC has unveiled a landmark deal that will end its four-decade-long retail banking operations in Australia, confirming it will offload its $36 billion domestic home and personal loan portfolio to private equity leader Blackstone. The transaction, announced publicly on Friday, forms the core of a planned 18-month wind-down of HSBC’s Australian retail banking division, a process that will wrap up with the deal’s expected closure in the first half of 2027.

    Under the terms of the agreement, non-bank lending specialist Pepper Money Ltd has been tapped to serve as the portfolio’s servicer once the sale is finalized, with the firm tasked with delivering consistent, uninterrupted support to both borrowers and mortgage brokers throughout the transition. HSBC stressed that for the immediate future, existing retail customers will face no disruption to their everyday banking services, and no immediate action is required from account holders. The company confirmed it will proactively reach out to customers in coming months with detailed updates on upcoming changes to their product terms and access.

    HSBC officials framed the decision as the outcome of a full strategic review of the Australian retail business, noting it aligns with the HSBC Group’s broader global push to simplify its operations and streamline its core focus areas. The local review launched shortly after George Elhedry took over as chief executive of HSBC Australia at the end of 2024, with internal leadership signaling the bank’s intent to exit the Australian market more than 12 months ago.

    First entering the Australian market in 1986, when then-treasurer Paul Keating opened the domestic banking sector to foreign competition, HSBC never managed to capture a substantial share of the country’s competitive retail and mortgage market despite decades of operation. This exit is the latest in a string of global downsizing moves for the London-headquartered bank: in July, it completed the $2.1 billion sale of its Singaporean insurance business to European financial firm Allianz.

    For Blackstone, the acquisition builds on the private equity firm’s rapidly expanding footprint in Australia, coming less than a year after it purchased data center operator AirTrunk for $23.5 billion in 2024. Mike Culhane, Blackstone’s Head of International Business Development, said the firm was eager to add the high-quality Australian home loan portfolio to its assets, while committing to delivering a seamless transition for all stakeholders. “This investment is a testament to the power of our franchise and our conviction in the growing opportunities in credit,” Culhane noted in a statement following the deal’s announcement.

  • Major oil companies reap massive profits as US and Iran fighting drives energy prices higher

    Major oil companies reap massive profits as US and Iran fighting drives energy prices higher

    Six months of escalating conflict between Iran and the United States has upended global energy markets, triggering sky-high fuel prices, widespread supply shortages, and historic windfall profits for major American and European oil and gas producers. The disruption has completely choked off most commercial shipping through the Strait of Hormuz, the critical Persian Gulf chokepoint that historically carried roughly 20% of the world’s daily oil and natural gas supplies.

    With global energy supplies sharply constrained, benchmark Brent crude prices surged from a pre-conflict level of around $70 per barrel to trade consistently above $100 throughout the second quarter of this year, peaking at $126 per barrel. This market upheaval has delivered extraordinary financial gains to large Western energy firms, even as households and businesses across the globe grapple with soaring fuel costs and emergency supply measures.

    In recent quarterly earnings reports, two of America’s largest energy producers posted staggering results. Texas-based Exxon Mobil announced Friday that its second-quarter net profit doubled year-over-year to $14.53 billion, with total revenue jumping 42% to $116.02 billion, driven in large part by record high diesel production. Houston-based Chevron reported even stronger relative growth, with net profits nearly quadrupling to $12.07 billion and revenue rising 56% to $70.06 billion. Across the Atlantic, six of Europe’s biggest oil companies recorded a combined $22 billion in first-quarter profits, a more than 40% increase from the same period last year.

    The massive windfalls have drawn intense public and political scrutiny, as consumers around the world face the fallout of constrained supplies. Some countries have already been forced to implement emergency measures: Australia has introduced sporadic fuel rationing, while Nepal and Sri Lanka shut down government offices to conserve fuel. In the United States, the average price of regular gasoline has climbed to $4.11 per gallon, up $1 from a year ago and well below the sub-$3 average seen before the conflict disrupted Hormuz shipping. For working households that rely on vehicles for commuting and work, the price spike has become a major financial burden.

    In response to public anger over the profiteering, Congressional Democrats have introduced legislation to impose a windfall profits tax on large oil producers, with the revenue targeted for direct redistribution to American consumers. “It’s fair to put a windfall profits tax on inordinate windfall profits rather than cut off children’s food programs,” said Sen. Sheldon Whitehouse of Rhode Island, sponsor of the Senate bill. The legislation, paired with a House version introduced by Rep. Ro Khanna of California, would amend the U.S. tax code to place a per-barrel tax on any company that produces or imports at least 300,000 barrels of oil daily starting in 2025. The proposal follows similar measures adopted by the UK and other European nations, which implemented temporary windfall taxes on fossil fuel firms in 2022; the UK has since extended its tax through 2030.

    Oil industry leaders have pushed back hard against the proposal, arguing that they do not set global oil prices, which are determined by market supply and demand dynamics and trading activity. Exxon CEO Darren Woods argued that windfall taxes discourage future investment, telling investors on a Friday call that the company canceled planned European investments after the region introduced its first windfall tax, calling such policies “very short-sighted.”

    Energy analysts note that integrated energy firms that own both production operations and refineries have been the biggest winners of the current market crisis. Global refining capacity is already stretched thin, with key suppliers Russia and China having pulled back on exports, while many refineries in the Middle East have been damaged by the conflict. American refineries, which have secure access to crude supplies, are currently operating near full capacity, and their profit margins have exploded. Chevron reported that its second-quarter refinery profit was six times higher than pre-conflict levels, even as the company processed less crude and sold fewer finished products. “The return on refining, on a percentage basis, has skyrocketed,” said Tom Seng, assistant professor of energy finance at Texas Christian University. “Oil right now is priced what it is priced because of the Iran war. But in the meantime, the refineries are making money hand over fist.” Rob Thummel, senior portfolio manager at Tortoise Capital, added that global shortages of jet fuel, diesel, and gasoline are likely to persist, keeping refining profits high for the foreseeable future.

    Timothy Fitzgerald, a business economics professor at the University of Tennessee who studies the petroleum industry, explained that U.S. refiners with ample crude access are reaping extraordinary gains, particularly from jet fuel and diesel – which currently trade at a 41% premium to pre-blockade prices in the U.S. The higher energy costs ripple through every sector of the global economy, he noted, since almost all goods have embedded energy costs that get passed on to consumers. “Ultimately, users of the energy services pay,” Fitzgerald said. “Consumers, people like you and me buying retail motor gasoline or diesel fuel or airplane tickets. But it also means that almost everything else we buy has an embedded energy content to it … and this is where you start to worry about it driving increases in costs.”

    Analysts emphasize that not all oil and gas companies have benefited equally from the current crisis. U.S.-based producers and international firms with large production holdings outside the Persian Gulf have seen profits surge, as they sell existing supplies at elevated global prices. By contrast, Middle Eastern producers trapped by the Hormuz blockade and facing damaged infrastructure have seen sharp revenue declines, as their export volumes are drastically curtailed and they face much higher transportation and security costs. Additionally, the timing of price gains benefited different firms unevenly: European companies with large volumes of stored oil available for spot market sales were able to capitalize on March’s price surge, while U.S. majors like Exxon and Chevron only began capturing higher prices starting in April, due to standard oil trading timelines.

  • China’s factory activity unexpectedly slips into contraction in July

    China’s factory activity unexpectedly slips into contraction in July

    After a five-month streak of expansion, China’s manufacturing sector shrank unexpectedly in July, casting fresh uncertainty over the growth trajectory of the world’s second-largest economy, official data released Friday shows.

    The National Bureau of Statistics reported that the official manufacturing Purchasing Managers’ Index (PMI) dropped to 49.2 this month, down from 50.2 in June. This reading fell far below economist forecasts, marking the first contraction in factory activity since February 2024.

    Breakdowns of the survey data show key underlying metrics also moved into contraction territory. The sub-index tracking new domestic and international orders fell to 48.5 in July, its lowest level since the start of 2023, down from 51.2 in June. Similarly, the production sub-index slipped to 49.9 from 51.4 over the same period.

    On the PMI scale, which ranges from 0 to 100, any reading above 50 signals expanding activity, while a figure below 50 indicates a contraction. The July downturn offers the first major insight into China’s economic performance for the second half of 2024, and experts warn the outlook remains challenging.

    “This latest PMI reading is an unpromising opening for the first wave of second-half economic data,” Lynn Song, chief economist for Greater China at ING Bank, noted in a recent analysis.

    Economists from Capital Economics point to multiple factors driving the unexpected contraction. Softening domestic demand, including a slowdown in construction-related manufacturing output, was the primary drag. Additionally, multiple severe typhoons that hit coastal and southern China in July disrupted port operations, factory production and supply chain logistics, exacerbating the monthly decline.

    The July manufacturing downturn comes as China’s broader economy has been grappling with persistent headwinds for months. A years-long downturn in the country’s massive property sector has eroded household consumer confidence, while stagnant wage growth and tight labor market competition have made consumers more cautious about discretionary spending. Sluggish domestic investment and consumer spending have further held back overall growth.

    In the April-June second quarter, China’s economy expanded at an annual rate of 4.3%, the slowest year-on-year pace in more than three years. This result falls short of the Chinese government’s official full-year growth target of 4.5% to 5%, putting additional pressure on policymakers to roll out new stimulus measures.

    Up to this point, robust export growth, particularly for high-tech goods such as semiconductors and electric vehicles, has been a key pillar supporting China’s overall economic momentum this year. But these sectors are highly capital-intensive, meaning they have generated limited new job growth to ease domestic labor market pressures.

    China’s strong export surge has also sparked international trade tensions. The U.S. and other major economies have criticized Beijing for supporting excess industrial capacity across sectors from solar panels to electric vehicles through large state subsidies. These countries argue that as domestic demand slows in China, heavily subsidized cheap Chinese exports are flooding global markets, threatening manufacturing sectors and employment in other economies. Beijing has repeatedly rejected these claims.

    Gary Ng, senior economist at French investment bank Natixis, noted that China’s current economic policy framework continues to prioritize productivity growth over expanding domestic household consumption, a structural dynamic that keeps the economy reliant on external demand.

    Most economists forecast that China will continue to lean on export growth to prop up overall output for the remainder of 2024. At the same time, top Chinese policymakers have signaled a new push to boost domestic consumption: the ruling Communist Party’s Politburo, the top decision-making body, pledged Thursday to introduce new measures to lift household spending and support sluggish sectors of the economy.

  • South Korea’s Kospi index jumps more than 16% on a surge of chipmaking stocks

    South Korea’s Kospi index jumps more than 16% on a surge of chipmaking stocks

    A massive, market-shaking reversal unfolded across Asian equities on Friday, as AI-linked technology stocks mounted a dramatic double-digit rebound just three days after a steep sell-off driven by bubble fears. The recovery was triggered by stronger-than-expected quarterly earnings from Microsoft, which reassured investors that massive corporate investments in artificial intelligence are already translating into solid bottom-line growth.

    South Korea’s benchmark Kospi Index led the surge, rocketing 16.5% higher to 6,515.40 by mid-session after opening sharply up and extending gains through early trading. The jump came on the heels of a 17% cumulative drop over the prior three trading days, when investors rushed offload tech holdings amid growing concerns that the global AI boom had become overinflated, and that rising competition from Chinese chip and AI developers would erode the profits of industry leaders.

    Blue-chip tech stocks in South Korea led the rebound: Samsung Electronics, the world’s largest memory chip manufacturer, jumped 24.8%, while rival SK Hynix soared 27.8%. Both companies are key suppliers to major AI firms including Microsoft and Google, whose demand for high-performance memory chips has driven their revenue growth over the past two years.

    The market turnaround traces directly to Microsoft’s quarterly earnings release Thursday, which reported $90 billion in revenue — beating Wall Street consensus forecasts. The company’s shares surged 15.5% in U.S. trading overnight, marking their best single-day performance in nearly 18 years. The strong results dispelled widespread investor anxiety that heavy AI capital spending would not deliver near-term returns, drawing bargain hunters back to battered tech shares across global markets.

    “The market went from throwing AI stocks overboard to fighting for the remaining seats before most traders had finished writing the obituary,” Stephen Innes, senior market analyst at SPI Asset Management, noted in a client commentary Friday.

    Even with the historic one-day jump, the Kospi remains far below its June peak of more than 9,000 points, leaving room for continued volatility as investors reassess AI valuations. The rally extended across other major Asian markets as well: Japan’s Nikkei 225 climbed 5.5% to 65,282.21 in early trading, with SoftBank Group — a major early investor in OpenAI — rising 15%, and leading chip equipment manufacturer Tokyo Electron gaining nearly 11%. Taiwan’s Taiex index, heavily weighted toward AI chipmakers, jumped more than 7%, while Australia’s S&P/ASX 200 added a modest 0.5% to 9,015.60.

    Beyond equities, currency markets saw significant action driven by suspected intervention by Japanese authorities to prop up the slumping yen. After weeks of trading above 160 yen to the dollar, the greenback plummeted more than 2.4% overnight before bouncing back 0.6% early Friday to 160.59 yen. Japan’s Nikkei financial newspaper reported the intervention was coordinated, with the Federal Reserve Bank of New York conducting a so-called “rate check” to support the move.

    The suspected intervention came ahead of the Bank of Japan’s policy meeting concluding later Friday, where the central bank is widely expected to hold interest rates at current levels. Analysts say the timing was designed to head off speculative currency moves tied to the central bank’s policy announcement. Jonas Golterman, emerging markets economist at Capital Economics, noted that past interventions have had limited sustained impact on yen valuations. “Intervention in support of the yen may not work any better now than it has previously, but the persistence of the Japanese authorities suggests to us that the yen will remain around the 160 level this year before staging a more sustained rebound next year,” Golterman wrote in a note. The euro slipped slightly to $1.1515 from $1.1524 against the dollar in early Friday trading.

    Oil prices edged higher Friday amid ongoing geopolitical tensions between the U.S. and Iran, which have disrupted shipping through the Strait of Hormuz — the critical chokepoint that carries roughly a fifth of global oil supplies. Brent crude, the global benchmark for oil prices, rose 0.3% to $87.14 per barrel, up from roughly $72 per barrel before the outbreak of conflict between Israel and Iran in late February.

    On Wall Street, the rally in tech shares spilled over from Microsoft to the broader market overnight. The benchmark S&P 500 gained 1.7% to close at 7,437.63, the Dow Jones Industrial Average added 1.2% to 52,208.06, and the technology-heavy Nasdaq Composite rose 2.8% to 25,122.18. The positive U.S. session set the stage for the rally across Asian markets when they opened for trading Friday.

  • BHP faces $120m loss as unions plan 24-hour Pilbara strike

    BHP faces $120m loss as unions plan 24-hour Pilbara strike

    Major Australian mining conglomerate BHP is on the brink of new operational disruptions at its iron ore facilities in Western Australia’s Pilbara region, after a coalition of trade unions formally notified regulators of planned 24-hour work stoppages set to kick off in early August. The industrial action comes after months of slow-moving, unproductive negotiations over a new enterprise bargaining agreement, with union leaders accusing BHP management of using deliberate stalling tactics to avoid addressing worker demands.

    Unions have officially filed industrial action notice with Australia’s Fair Work Commission, scheduling a two-stage stoppage for August 8 and 9. On August 8, workers will implement a full 24-hour ban on all ship loading operations at Pilbara ports. From 5:30 a.m. local time on August 9, all site workers will down tools for a further 24-hour work stoppage, unless BHP agrees to return to good-faith negotiations before the deadline.

    The financial impact of even a single 24-hour stoppage in the Pilbara is substantial: industry estimates put BHP’s lost revenue at roughly $120 million per day of halted operations, while the Western Australian state government stands to lose approximately $6.85 million in foregone mineral royalty payments each day work is stopped.

    The joint union action is led by the Combined Port Unions, which counts the Electrical Trade Union (ETU) and the Australian Manufacturing Workers Union (AMWU) among its member organisations, alongside the Western Mine Worker Alliance. Union representatives unanimously criticized what they describe as the “glacial pace” of talks with BHP leadership, saying the company has dragged out negotiations for months without meaningful progress.

    Craig Beveridge, a spokesperson for the Western Mine Worker Alliance, said BHP has had ample opportunity to engage in good-faith collective bargaining but has instead prioritized delay and obstruction. “Our members are fed up and ready to fight harder and longer, if that is what it takes to secure a fair and reasonable agreement,” Beveridge stated. “BHP rakes in billions of dollars in profits each year, thanks to the hard work and dedication of our members. It’s only right that they receive their fair share.”

    Adam Woodage, state secretary of the WA branch of the ETU, expanded on worker frustrations, noting that BHP posted a staggering $15 billion in net profit last year. Despite that massive windfall, Woodage said the company is pushing a controversial pay proposal that includes a “false floor” structure that would cut base pay below what workers currently earn, while offering unregulated off-agreement backdoor payments that lack transparency.

    “That isn’t a real agreement. It isn’t fair or transparent,” Woodage said. “The people who enable this company’s exorbitant profits are sending a message with this action: We want an honest deal, in black and white, and we are not going to entertain what the company is pushing.”

    If the planned strike goes ahead, it will mark the second round of industrial action at BHP’s Pilbara operations in just two months. In mid-July, 100 workers walked off the job for an eight-hour stoppage to protest the stalled negotiations. BHP has not yet issued a public response to the latest strike notice, and requests for comment from the company remain unanswered as of press time.

    Federal government minister Matt Keogh, speaking to reporters, acknowledged that the breakdown in talks is disappointing, but noted that worker frustrations stem from BHP’s failure to engage in meaningful negotiations. “I understand that this strike action is because the workers there feel that the employers are not engaging with them properly in the negotiations,” Keogh told media. “We want to see good negotiated outcomes, enterprise agreements to support the workforce, support business, and the best outcome for Australia.”

    Keogh also highlighted the unique challenges Pilbara mining workers face, including long-distance rotational rosters that require extended periods away from home, alongside broader cost-of-living increases that have put extra pressure on worker wages across the country. “It’s important that workers are able to do that when they’re in the process of bargaining,” he said. “But we want to see the employers properly engaging with their workforce to get to good outcomes.”

  • India wants to join the strawberry superpowers

    India wants to join the strawberry superpowers

    Nestled in the mountainous terrain of western India, Mahabaleshwar stands as the beating heart of India’s strawberry cultivation. More than 85% of the country’s total strawberry output grows across its slopes, where an elevation exceeding 1,000 meters creates the ideal cool growing window from November to March, and light, well-drained soil offers the perfect foundation for the delicate fruit. But for the thousands of smallholder farmers who call this region home, strawberry farming is far from a straightforward livelihood.

    The industry is inherently labor-intensive, and its profitability hangs on the whims of unpredictable weather. “If sudden heavy rains arrive when your field is full of fruit, the entire crop is destroyed, and we face catastrophic losses,” explains Sheetal Danavle, who alongside her husband devotes half of their 3-acre family farm to strawberries. Unlike many staple crops, strawberry plants must be replaced entirely every growing season, and they are not propagated from seed. This means farmers must purchase new young starter plants from licensed suppliers each year, a major upfront expenditure that costs Danavle roughly $2,500 annually. While a strong, dry season can deliver returns double the initial investment, erratic climate patterns turn the entire enterprise into what Danavle describes as “a huge gamble.”

    Despite these challenges, strawberries have emerged as one of western India’s most profitable horticultural crops, supporting tens of thousands of livelihoods across the region. Yet a critical gap remains in the domestic supply chain: India’s entire industry relies exclusively on patented strawberry varieties bred in the United States, Italy, Spain, and other foreign nations, with no commercially competitive indigenous cultivar available to local farmers. It takes 10 to 15 years for international breeders to develop high-yield, high-quality varieties suited for commercial production, and these cultivars are strictly protected by intellectual property patents.

    Nelson Sequeira, founder and director of Tara Farms Fresh, one of India’s licensed strawberry propagators, explains that the domestic supply chain starts with imported certified mother plants from foreign breeders. After clearing mandatory government quarantine, the imported mother plants are grown in specialized nurseries, where they produce runners that develop into daughter plants sold directly to farmers. “One imported mother plant is like an engine,” Sequeira notes. On average, a single mother plant produces 20 daughter plants, with experienced operations able to coax 30 to 40 plants per mother. His nursery uses advanced precision agriculture techniques to grow new stock: plants are suspended in half-cut industrial pipe troughs filled with coconut husk-derived coco-peat substrate, rather than planted in open ground, with a carefully calibrated drip irrigation and fogging system to maintain ideal growing conditions.

    For now, dependency on foreign mother plants remains the industry standard, but a collaborative research project led by two leading Indian institutions could soon upend this status quo. Mahatma Phule Krishi Vidyapeeth (MPKV), an agricultural university based in Maharashtra, has partnered with the Bhabha Atomic Research Centre (BARC) to develop India’s first homegrown strawberry variety. Researchers are using controlled low-dose gamma irradiation on plant tissues to induce stable genetic mutations, a technique designed to cut down the decades-long breeding timeline.

    Dr. Darshan Shashank Kadam, assistant professor of horticulture at MPKV, explains the project’s core goal: to create an indigenous cultivar that matches the large fruit size and firm texture of popular imported varieties, while being naturally resilient to India’s increasingly frequent heatwaves. Kadam acknowledges that full development of a commercially viable variety could still take 10 to 15 years, but the university is already supporting local farmers in the near term by creating region-specific growing guidelines, including standardized planting schedules, customized fertilizer recommendations, and tailored growth regulator protocols adapted to Mahabaleshwar’s unique climate.

    Larger commercial operations with greater access to capital are already adopting innovative growing technologies to mitigate the risks of open-field farming. Ketan Yashwant Sodha, founder and CEO of Berry Fresh Agrotech, started out growing strawberries in traditional open fields, but grew frustrated after repeated crop losses to unseasonal rain during the peak growing season. “For the past decade, rain has consistently arrived during our peak harvest months of November, December, and early January. One heavy storm at peak growth can wipe out an entire season’s work,” he says.

    In 2022, Sodha pivoted to experiment with hydroponic covered cultivation, a soil-free system that allows full control over water, nutrient, light, and temperature conditions. The transition was far from smooth. “I failed over and over, and suffered massive early losses,” he recalls. “Soil is forgiving of small mistakes, but hydroponics is not. A single error today leads to complete crop failure tomorrow, and recovery takes twice as long as it does in soil.”

    After years of trial and error, Sodha’s operation is now seeing tangible rewards. His team has tested 19 different strawberry varieties, including rare Japanese cultivars, and is the first Indian farm testing a specialized cultivar from the Netherlands this growing season. By strictly limiting each plant to 750 milliliters of water per day, they produce berries with richer, more concentrated sugar content and deeper aroma than the waterlogged, bland fruit often produced by open-field farming. Regular nutrient testing of plant leaves and petioles allows the team to adjust nutrient mixes precisely to each plant’s needs, and a semi-open polyhouse structure enables year-round strawberry production, turning a seasonal crop into a year-round revenue stream. Now, after finalizing trial protocols and standard operating procedures, Sodha is seeking investor funding to scale his operation to a 5-acre facility capable of supporting 200,000 plants.

    Even smallholder farmers are embracing new technologies to improve outcomes, often in creative ways. Krishan Bhilare, a third-generation strawberry farmer from Mahabaleshwar, remembers the arrival of the first American varieties in 1992, when he was stunned by the large size of the imported fruit. Today, Bhilare is part of a regional Farmer Producer Organisation (FPO) that has installed AI-powered weather monitoring towers at key points across member farmland. The system analyzes real-time weather data to predict incoming rain events, alerting farmers to delay pesticide and fertilizer spraying so costly inputs are not washed away by storms. The FPO is also testing vertical growing towers that stack five layers of strawberry plants in coco-peat substrate, boosting production density from 25,000 plants per acre to 125,000 plants per acre — a fivefold increase in output on the same plot of land.

    Still, these high-tech upgrades remain out of reach for many small operations, or carry too much risk for low-margin farms. Danavle and her husband tested hydroponic farming back in 2017, and saw promising early results: their hydroponic strawberries were fully organic, cut labor costs by reducing the need for constant bending and pruning, and lowered spending on fertilizers and pesticides. But a powerful cyclone hit Mahabaleshwar that same year, destroying the entire hydroponic setup. “We didn’t have the capital or the courage to rebuild it,” Danavle says. Instead, she returned to traditional open-field farming — with a modern twist. Leveraging social media, Danavle now posts videos about strawberry cultivation, promotes farm visits for tourists, and allows visitors to pick and purchase berries directly from her farm, cutting out middlemen and boosting her profit margins. “Now I’m both a farmer and a social media entrepreneur,” she says.

    As India’s strawberry industry continues to grow, the balance between traditional smallholder farming and cutting-edge innovation remains in flux, with ongoing research poised to reshape the sector’s dependency on foreign varieties in the coming decades.

  • US economic growth slows to 1.5% in second quarter

    US economic growth slows to 1.5% in second quarter

    New official government data reveals a notable deceleration in U.S. economic expansion during the second quarter of 2026, marking a clear downshift from the growth pace recorded at the start of the year. The U.S. Commerce Department reported Friday that gross domestic product (GDP) grew at an annualized rate of 1.5% between April and June, a sharp drop from the 2.1% expansion achieved in the first quarter.

    This slowdown comes as the world’s largest economy grapples with cascading financial fallout from geopolitical conflict with Iran and ongoing trade tariff disruptions that have complicated operational planning for domestic businesses. The final growth reading fell short of the consensus forecast published by a panel of private-sector analysts, with the pullback driven by simultaneous declines in federal government spending, private business investment, and cross-border exports. Counterbalancing these headwinds, robust gains in household consumer spending delivered a key boost to overall quarterly output.

    The release of the GDP data follows a widely anticipated monetary policy announcement from the U.S. Federal Reserve on Wednesday, where central bank policymakers opted to hold interest rates steady for the fifth consecutive policy meeting. New Fed Chairman Kevin Warsh used the post-meeting press conference to push back against market expectations for quick inflation fixes, telling reporters that there is no “magic wand” capable of immediately bringing elevated consumer prices back to the central bank’s target.

    U.S. inflation has outpaced the Fed’s 2% annual target for more than five consecutive years, but surprisingly strong household consumption has remained a foundational pillar of economic expansion. The Commerce Department’s latest report confirmed that consumer spending has stayed resilient through ongoing price pressures, defying some economists’ predictions of a pullback. In its post-meeting statement, the Fed noted that overall U.S. economic activity continues to expand at a “solid pace,” even amid widespread uncertainty tied to escalating conflict in the Middle East.

    The single greatest economic risk stemming from the regional conflict is its impact on global energy markets, which has driven sharp spikes in crude oil prices in recent weeks. As of Thursday, the global benchmark Brent crude traded at roughly $90 per barrel, a multi-month high that has already filtered through to higher fuel costs for U.S. drivers. Average retail gasoline prices across the country have now climbed back above $4 per gallon, a development that is expected to put additional pressure on household budgets in the coming months.