分类: business

  • Mining and tech stocks lift ASX to record high despite bank and energy losses

    Mining and tech stocks lift ASX to record high despite bank and energy losses

    Australia’s benchmark share index closed at a historic all-time high on Wednesday, powered by strong gains in mining and technology stocks, a sudden drop in global crude oil prices, and bullish momentum carried over from overnight gains on U.S. markets. The S&P/ASX 200 rallied 0.9% to end the trading day at 9227.80, an 82-point jump that pushed the index past its previous February 2025 peak of 9202.90 to claim a new record. The broader All Ordinaries followed suit, climbing 1% to close at 9405.40, a gain of 93.5 points. Against the U.S. dollar, the Australian dollar edged slightly lower to 70.45 U.S. cents by market close.

    Despite the overall market hitting a new milestone, only six of the 11 tracked industry sectors finished the day in positive territory, with large-scale mining stocks leading the upward charge. BHP Group saw shares surge 3.34% to settle at $62.54, while Rio Tinto gained 2.29% to close at $176.34, and Fortescue Metals added 0.61% to reach $18.19. Gold miners also posted double-digit and high single-digit gains, lifted by rising global gold commodity prices: Northern Star Resources climbed 5.76% to $21.49, and Evolution Mining rose 6.28% to $12.52.

    The catalyst for the day’s market movement came from an unexpected statement by U.S. Treasury Secretary Scott Bessent, who told CNBC that ongoing diplomatic talks with Iran could result in a breakthrough within days to reopen the strategically critical Strait of Hormuz to unobstructed global shipping. “We are in talks with the Iranians,” Bessent said in the interview. “There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalised position in this conflict.”

    The prospect of eased geopolitical tension in the Persian Gulf — one of the world’s most important oil chokepoints — sent global crude prices tumbling, with Brent Crude trading between $76 and $78 U.S. per barrel on Wednesday. Falling oil prices pushed Australian energy stocks down 2% by market close. Gains were also capped by modest losses across the nation’s four largest retail banks: Commonwealth Bank of Australia fell 1.38% to $178.23, National Australia Bank dropped 0.75% to $42.53, Westpac Banking Corporation lost 0.75% to $38.53, and ANZ Group slid 0.42% to $38.01.

    Overnight, U.S. benchmarks the S&P 500 and the Dow Jones Industrial Average both closed at record highs, fueled by news of the potential interim peace deal between the U.S. and Iran, which created bullish sentiment that spilled over into Australian trading. Another factor supporting the ASX’s record run is recent volatility in AI-focused global stocks, which has benefited Australian markets due to their limited direct exposure to overinflated AI valuations.

    Hugh Lam, investment strategist at Betashares, noted that Australian equities are increasingly seen as a global safe haven for investors seeking to avoid concentration risk in AI-dominated markets. “The local benchmark has reached all-time highs, driven by a rotation into blue-chip assets that has seen recent strength in July as global investors sought refuge in more diversified markets less exposed to AI concentration risk,” Lam explained. “Materials stocks have added further momentum, with Iran-linked supply disruptions keeping commodity risk premiums elevated and copper futures trading near record highs.”

    In individual company news, Endeavour Group, the owner of liquor retailer Dan Murphy’s and hospitality chain ALH Hotels, saw shares fall 1.44% to $3.43 after releasing preliminary full-year results that showed underlying net profit dropped to $363 million Australian, down from $426 million the previous year. IperionX recovered 8.95% to $3.41 after a sharp sell-off earlier in the week, following the company’s announcement that it would relocate its parent company headquarters to Texas. Neuren Pharmaceuticals surged 16.28% to $21.64 after reporting that net sales of DAYBUE, its Rett syndrome treatment for adults and children over two years old, rose 30% to $125 million U.S. from the second quarter of 2025. Gaming machine operator Light Wonder gained 3.96% to $118.00 after announcing annual consolidated revenue of $828 million Australian.

  • ‘Outstanding’ month as Australians continue EV uprising

    ‘Outstanding’ month as Australians continue EV uprising

    Australia’s electric vehicle (EV) market has continued its explosive growth, notching a second straight month of historic sales amid ongoing global fuel price volatility that has pushed thousands of consumers to shift to battery-powered transport. New industry data released by the Federal Chamber of Automotive Industries (FCAI) reveals that more than 23,500 battery electric vehicles were sold across the country in July 2026, accounting for 21.7% of total new car sales for the month — the highest market share EVs have ever captured in a single month. This milestone marks the second consecutive record-breaking month for EV adoption in Australia, confirming the sector’s rapid transition away from fossil fuel-powered vehicles.

    “July was another outstanding month for Australian new-vehicle sales and delivered the best July result on record,” said FCAI chief executive Tony Weber. While Weber praised the accelerating uptake of EVs, he also issued a stark call to action for policymakers and private industry to urgently expand the country’s public charging network to match growing consumer demand. With more Australians embracing EVs, particularly drivers who lack off-street parking or home charging access and those traveling through regional areas, Weber stressed that accessible, reliable charging infrastructure is non-negotiable to preserve consumer confidence as EVs become a mainstream option.

    “Governments and the private sector must work together to ensure that the public charging network meets growing demand particularly in regional areas and for motorists who do not have access to charging at home,” Weber said. “Accessible and dependable charging will be critical to maintaining consumer confidence as electric vehicles become a larger part of Australia’s new-vehicle fleet.”

    When it comes to top-selling models, Chinese automaker BYD led the market in July, with its popular Sealion 7 SUV notching 2,548 sales to claim the number one spot. US EV giant Tesla followed close behind: its Model Y Long Range variant recorded 2,429 sales, while the standard Model Y added more than 2,200 additional sales, cementing Tesla’s position as one of Australia’s most popular EV brands.

    Federal Energy Minister Chris Bowen welcomed the record sales, linking the sharp uptick in EV adoption to persistent global oil market instability that has kept petrol prices volatile for Australian motorists. Bowen noted that EV ownership is helping households shield themselves from global oil shocks and cut everyday cost-of-living expenses, a benefit that more Australians are prioritizing as energy prices remain unpredictable.

    “The lesson from Cheaper Home Batteries and EVs is clear to me: with the right policy settings Australians will respond enthusiastically in ways which can lead to globally leading outcomes,” Bowen said. He pointed to longer-term data that underscores the speed of Australia’s EV transition: in the first half of 2026, battery EVs and plug-in hybrid vehicles together made up 27% of all light vehicle sales, totaling 191,830 units. That marks a dramatic jump from 2025, when the combined market share of EVs and plug-ins stood at just 13% for the full calendar year.

    Bowen added that EV tax cuts have driven the strongest uptake in fast-growing suburban and outer-urban areas including Tarneit, Werribee, Kellyville, Marsden Park, Craigieburn, Cranbourne and Baulkham Hills. He argued that widespread EV adoption reflects a common-sense choice by Australian households to cut costs and embrace modern renewable energy technology.

    “The common sense choices that Australians are making to upgrade their own energy infrastructure with modern, reliable renewables is the same as our approach for the country,” Bowen said. “People (are) getting a battery and then maximising its contribution to their cost of living by using it to power their EV at a rate much cheaper than filling up at the servo.”

    Beyond battery EVs, the overall low-emission vehicle sector now dominates the Australian new car market. When combined with hybrid vehicles, which held a 17.2% market share in July, all electric and hybrid vehicles accounted for nearly 39% of total new car sales. Internal combustion engine vehicles still hold a significant share of the market, however: petrol-powered cars led all powertrains with 27,894 sales in July, equal to just over a quarter of total market share, while diesel vehicles followed closely with 24,773 units sold.

  • Oil prices ease and Asian shares gain on hopes for Mideast deal, as companies report strong profits

    Oil prices ease and Asian shares gain on hopes for Mideast deal, as companies report strong profits

    BANGKOK – Global financial markets kicked off mid-week with widespread gains on Wednesday, as a record-breaking rally on Wall Street fueled investor optimism across Asia, paired with sliding oil prices lifted by growing hopes for diplomatic progress that could de-escalate conflict tensions in the Middle East and reopen a critical global oil chokepoint.

    The wave of buying swept across major East Asian benchmarks, with all three top regional indexes posting gains exceeding 3%, led by a powerful resurgence in semiconductor and artificial intelligence (AI)-focused companies that have dominated market momentum this year. Japan’s Nikkei 225 climbed 3.3% to close at 66,068.24, with memory chip manufacturer Kioxia jumping 6.3% and chip testing gear producer Advantest soaring 6.9% by the closing bell. In South Korea, the Kospi notched an even steeper 4.4% gain to reach 6,642.02, led by a 6.7% increase for top memory chipmaker SK Hynix, while tech conglomerate Samsung Electronics added 4.1% to its value. Taiwan’s Taiex advanced 3.1%, with world-leading contract chip manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) rising 3.5% to support the broader index.

    Neil Newman, head of strategy at Astris Advisory Japan, noted that AI-linked stocks are the clear engine behind the day’s rally. “Clearly today the market is rallying on the back of AI stocks. You look across the other sectors, there’s a bit of activity here and there but really the focus has been back on semiconductors, technology and AI,” he explained.

    Gains extended across other regional markets as well, though at a more moderate pace. China’s Shanghai Composite Index picked up 1.3% to finish at 3,873.56, while Hong Kong’s Hang Seng Index edged up just 0.1% to 25,881.20. Australia’s S&P/ASX 200 added 0.7% to close at 9,209.00.

    Alongside the AI boom, sliding crude oil prices also gave markets a broad boost, as growing diplomatic hopes for a resolution to tensions blocking the Strait of Hormuz eased concerns about global energy supplies. The international benchmark Brent crude fell 1.2% to $78.43 per barrel in early Wednesday trading, following a 5.3% plunge on Tuesday that came as reports emerged of progress toward a deal between Iran and Oman to reopen the strategic strait – a passage through which roughly 20% of the world’s daily oil supply transits. That deal is reportedly contingent on the United States lifting its current blockade on Iranian ports. Through July, oil prices swung wildly between $72 and $102 per barrel, driven by persistent uncertainty over when Middle East tensions would ease to allow unimpeded crude exports from the Persian Gulf. U.S. benchmark West Texas Intermediate crude also slipped 1.1% to $74.96 per barrel on Wednesday.

    The positive momentum in Asia followed a record-setting session on U.S. markets Tuesday, where stronger-than-expected corporate earnings across a wide range of sectors helped ease investor jitters. The broad S&P 500 jumped 1.8% to surpass its previous all-time high set in June, while the Dow Jones Industrial Average added 1.7% to extend its own record high set a day earlier. The tech-heavy Nasdaq composite led the U.S. rally with a 2.6% gain.

    Strong second-quarter earnings reports have helped reassure investors that sky-high valuations for AI-focused companies are grounded in actual growing profits, easing fears of an overinflated stock bubble driven by AI hype. Data analysis and AI firm Palantir Technologies led the earnings winners, surging 29.5% after the company reported a 93% year-over-year revenue jump that CEO Alex Karp described as an “otherworldly” quarter. Heavy equipment manufacturer Caterpillar also outperformed analyst expectations for both profit and revenue, climbing 5.6% – the company is also benefiting from the AI boom via rising orders for turbines that power energy-hungry AI data centers. Top U.S. semiconductor stocks also notched broad gains: Nvidia added 2.6%, Broadcom jumped 6.6% and Micron Technology rose 7.6%.

    Not all U.S. stocks moved higher, however: Chipotle Mexican Grill shares tumbled 9.7% after the chain removed jalapeño peppers from a number of locations following a linked salmonella outbreak, sparking investor concerns over near-term profit impacts. The company noted that Minnesota public health officials no longer have active concerns related to its operations.

    New economic data released this week also reinforced the resilience of the U.S. economy, even as inflation remains above policymakers’ target levels. The U.S. Labor Department reported that employers posted nearly 7.4 million open job positions at the end of June, a small slowdown from May’s level but broadly in line with economist forecasts, signaling ongoing labor market stability.

    In currency trading early Wednesday, the U.S. dollar edged slightly lower to 157.48 Japanese yen, down from 157.74 yen in the prior session. The euro inched up to $1.1540 from $1.1532 against the U.S. dollar.

    Summarizing the market mood, Newman noted that while risks remain, the outlook has brightened considerably: “All in all, it’s looking much brighter. We’re still not completely out of the woods yet, but I think we’re seeing some route out of this now and it’s been reflected in the markets.”

    Reporting contributions came from Matt Ott in Washington, Stan Choe in New York, and Mayuko Ono in Tokyo.

  • Saudi Aramco reports bumper profits as it bypasses Strait of Hormuz

    Saudi Aramco reports bumper profits as it bypasses Strait of Hormuz

    Escalating geopolitical tensions and sustained conflict between the United States, Israel and Iran centered on the Strait of Hormuz have delivered a massive windfall to Saudi Aramco, with the state-owned Saudi energy giant reporting a 33% year-over-year jump in second-quarter 2025 profits, the company announced Tuesday.

    Adjusted net income for the April-to-June period climbed to $33.4 billion, up from $25.1 billion in the same quarter last year, as persistent fighting and shipping disruptions through the world’s most critical energy chokepoint pushed global crude prices higher while Saudi Arabia’s unique infrastructure allowed it to keep exporting at near-normal levels.

    Though a temporary ceasefire between the U.S. and Iran was reached in April and extended in June, low-intensity conflict has continued unabated. Iran has stepped up efforts to assert dominance over the 21-mile-wide Strait of Hormuz, through which roughly 20% of global oil supplies transit daily, and has attacked dozens of commercial vessels attempting to pass through the waterway via Oman’s territorial waters. In retaliation for Iranian attacks, the U.S. has carried out airstrikes on Iranian targets, and Iran has responded by striking infrastructure in U.S.-aligned Gulf states including Kuwait and Bahrain. These sustained disruptions pushed Brent crude, the global benchmark for oil prices, above $100 per barrel in both May and July, with refined petroleum products — including diesel, jet fuel, and gasoline — seeing even steeper price jumps. Multiple Gulf oil producers including Iraq, Kuwait, Bahrain and Qatar have been forced to cancel energy shipments or drastically cut export volumes as a result of the chaos.

    Unlike its regional neighbors, Saudi Arabia has maintained steady exports, moving roughly two-thirds of its pre-conflict production capacity to global markets via the East-West Pipeline, a strategic infrastructure asset that connects the kingdom’s major eastern oil fields directly to the Red Sea export terminal of Yanbu, completely bypassing the Strait of Hormuz.

    In an official press statement accompanying the earnings release, Aramco CEO Amin Nasser highlighted the critical role of this pre-planned infrastructure in enabling continuous operations through the crisis. “Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by capitalising on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West Pipeline, storage capacity, and export terminals,” Nasser said.

    Aramco’s successful use of the bypass pipeline has spurred regional governments to accelerate plans for their own alternative energy transit infrastructure, with industry analysts projecting tens of billions of dollars in new infrastructure investment across the Middle East over the coming years to reduce reliance on the Strait of Hormuz.

    Artem Abramov, deputy head of analysis at energy research firm Rystad Energy, told Middle East Eye that regional governments have undergone a major shift in priority after the crisis. “When we speak to our customers in the region, they say they never want to deal with this again,” Abramov said. “These bypass projects will move forward.”

    Already, the United Arab Emirates is constructing a second pipeline to the Gulf of Oman port of Fujairah, which will double the country’s non-Hormuz export capacity by 2027. OPEC’s second-largest producer Iraq, meanwhile, signed a deal with Syria in July to rehabilitate an existing pipeline connecting Iraq’s northern oil fields to Syria’s Mediterranean coast, a project first revealed by Middle East Eye that has received backing from the U.S. government.

    Saudi Aramco is far from the only energy major to profit from the ongoing conflict: U.S. oil giants ExxonMobil and Chevron also reported blockbuster second-quarter earnings. ExxonMobil’s profits doubled compared to the same period last year, while Chevron posted the highest quarterly profit in its 145-year history.

    The record profits have sparked political backlash in the U.S., where former President and presumptive Republican presidential nominee Donald Trump is facing growing public anger over elevated retail gasoline prices amid his administration’s handling of the Iran conflict. Speaking to reporters Monday, Trump called out the two companies for excessive profiteering and demanded they pass savings to consumers. “Chevron: too much money. ExxonMobil: too much money,” Trump said. “They’re going to give some of that back to the public and they better cut the retail price, the consumer price.”

    Crude prices have retreated roughly 8% since Sunday, falling to $79 per barrel, after Trump walked back a recent threat to launch what he described as the “biggest bombing campaign since World War II” against Iran. On Tuesday, U.S. Treasury Secretary Scott Bessent confirmed that peace talks are progressing, telling reporters that the U.S. and Iran are close to reaching a comprehensive deal to end hostilities and fully reopen the Strait of Hormuz to commercial shipping.

  • Jetstar introduces fees for carry-on luggage in overhead lockers

    Jetstar introduces fees for carry-on luggage in overhead lockers

    Australian budget air carrier Jetstar has ignited fierce and split debate across social media after unveiling a major overhaul of its cabin baggage policy, which introduces paid access to overhead locker storage starting in February. The airline is scrapping its existing 7kg free carry-on allowance, replacing it with a structure where all passengers can bring one small personal item that fits under the seat in front of them free of charge. Travelers wishing to stow a larger bag in the plane’s overhead compartments will need to pay a separate fee for that space, alongside receiving priority boarding if they opt for the upgrade.

    In official statements, Jetstar frames the overhaul as a response to extensive customer and crew feedback, noting the new framework aligns with similar policies already rolled out by other leading low-cost carriers across Europe, including EasyJet and Ryanair. The company says common pain points of the current boarding process—long delays from gate bag weighing, and constant fights for limited overhead locker space—have driven the change. Jetstar CEO Stephanie Tully explained the adjustments are designed to better utilize available overhead storage, speed up boarding workflows, and ultimately boost the share of flights that depart on schedule. Under the new rules, routine gate bag weighing will be eliminated, though the airline requests that paid overhead bags stay under 10kg to ensure passengers can lift them safely into storage.

    Fees for overhead locker space vary based on route length and demand, the airline confirms. For short domestic hops, such as between Launceston and Sydney, pricing starts at A$25 ($18 USD, £13 GBP). On longer international routes, fees climb higher: a Cairns to Tokyo flight carries a A$52 fee, while the BBC found a one-way overhead bag fee of $60 AUD for a Sydney to Osaka service. A Jetstar spokesperson told the BBC that the published rates are only representative examples, and final pricing can shift upwards based on passenger demand, meaning no fixed fee can be guaranteed to travelers.

    Public reaction to the policy change has been sharply divided, with the debate quickly gaining traction across Australian social media platforms. Many frequent fliers have expressed outrage at the new fee, with some critics joking that next the airline will introduce charges for basic amenities like restroom access. Multiple users pointed out that carriers already charge separately for seats, in-flight food and drinks, and checked bags, questioning why carry-on access now requires an extra fee. Others noted the new policy contradicts airlines’ longstanding push for passengers to travel with only carry-on luggage to cut airport operational costs.

    However, a significant contingent of travelers has come out in support of the change, arguing it solves a longstanding problem of overcrowded overhead bins. Many passengers shared frustrations that oversize bags carried by other travelers often leave no space for small personal items like jackets or purses. Some noted that selfish overpacking by a small group of passengers has created the issue for everyone, saying the new pricing structure is a logical solution to discourage excessive carry-on luggage. This split response reflects broader tensions in the low-cost air travel sector, where carriers continue to unbundle services to keep base ticket fares low, shifting more costs directly to travelers who use extra amenities.

  • David Koch warns Reserve Bank against punishing mortgage holders with rate hike

    David Koch warns Reserve Bank against punishing mortgage holders with rate hike

    Australia’s fragile household finance landscape is facing fresh scrutiny, as leading economic voices warn that another interest rate increase from the Reserve Bank of Australia (RBA) could push already cash-strapped mortgage holders into financial ruin. Amid mixed new inflation data and ongoing cost-of-living pressures, David Koch, economic director at comparison platform Compare the Market, has issued a stark call for the RBA to halt its rate-hiking cycle and instead push for federal government spending cuts to curb rising prices.

    Koch argues that Australian households are already bearing the brunt of cost increases entirely outside their control, from sky-high petrol prices driven by Middle East geopolitical conflict to soaring grocery costs. He says further rate hikes, which are being debated by economists ahead of the RBA’s August monetary policy meeting, would be devastating for working families already cutting non-essential spending to make ends meet.

    “Inflation is not being driven by consumers splashing cash or living beyond their means,” Koch explained. “Price increases are coming from external global shocks and public spending, yet mortgage holders are the only group being forced to absorb the pain of policy tightening. Another rate hike would just add another layer of pressure to households already squeezed from all sides.”

    His intervention comes just after the Australian Bureau of Statistics (ABS) released mixed inflation data for the 12 months ending June 30. Headline inflation edged down slightly from 4.0% to 3.8%, marking incremental progress in the RBA’s fight to cool price growth. However, the closely watched trimmed mean inflation rate — which strips out volatile price swings to measure underlying inflation — held steady at 3.6%, remaining above the RBA’s 2-3% target range. The ABS also reported that household spending rose 0.8% in June, defying forecasts that previous rate hikes and volatile oil prices would drag down consumption. Annual household spending growth hit 6% for the 2026 financial year, even after a period of market volatility.

    AMP economist My Bui noted that the full impact of the RBA’s three 2026 rate hikes has not yet filtered through to household spending habits. Quarterly spending volume grew 0.7% in the April-June period, translating to 2.4% annual growth — far outpacing Australia’s 1.5% annual population growth, she pointed out. “We haven’t yet seen the full drag of three rate hikes show up in consumption data,” Bui explained.

    The RBA has raised the official cash rate three times this year, implementing 0.25 percentage point hikes in February, March and May, before holding rates steady at 4.35% in June. Koch expects the central bank will hold rates again in August, but warned households should not assume the tightening cycle is over: multiple economists still predict another rate hike before the end of 2026.

    Koch has proposed an alternative policy path for RBA governor Michele Bullock: rather than raising rates again, he says Bullock should collaborate with Treasurer Jim Chalmers to cut government spending, which would reduce aggregate demand and ease inflation without penalizing home owners. “Maybe Michele Bullock could have a word to the Treasurer instead and say, ‘Hey mate, will you cut spending and reduce demand and give us a bit of help with inflation that way?’” Koch said.

    Calculate by Compare the Market lay bare the additional strain another hike would bring. A household with an average Australian mortgage of $735,000 would see their monthly repayments jump by roughly $120 if the RBA moves ahead with another 0.25 percentage point increase. For a home owner with a $750,000 loan, this year’s three hikes have already added $370 to monthly repayments — even before any further increases.

    “Consumers have already gone into the bunker. They’re cutting back wherever they can, but many of the biggest cost increases hitting household budgets are completely beyond their control,” Koch added.

  • Fortescue shares hit by Morningstar downgrade over project cost blow outs

    Fortescue shares hit by Morningstar downgrade over project cost blow outs

    For millions of Australian workers holding superannuation savings, a key mining investment tied to their retirement accounts faces fresh downward pressure after independent rating agency Morningstar cut its fair value assessment for Fortescue Metals Group by 4% this week.

    The new fair value estimate for Fortescue shares now sits at AU$15.50, a marked downward adjustment that comes ahead of the miner’s highly anticipated full-year financial results release, scheduled for August 24 on the Australian Securities Exchange. At the time of the downgrade, Fortescue was positioned to open trading at AU$18.08 – a full 16% above Morningstar’s calculated intrinsic value of the stock.

    The core catalysts behind the downgrade tie directly to two major headwinds facing the iron ore producer: near-term forecasts for slowing global steel sales that would pressure commodity demand, and persistent, spiraling cost overruns at the company’s high-profile Iron Bridge magnetite project located in Western Australia’s remote Pilbara region.

    The Iron Bridge project was designed to extract low-grade ore and process it into premium magnetite concentrate using energy-intensive methods, positioned adjacent to Fortescue’s existing operational mine, rail network and port infrastructure – advantages that were supposed to keep costs contained. But since the project’s initial 2019 budget of AU$4 billion, total projected costs have ballooned to AU$6.2 billion, as the company has struggled to ramp up production at the magnetite processing plant.

    Just last month, Fortescue was forced to take a AU$1.1 billion pre-tax impairment write-down on the project’s value and abandon its long-held target of reaching full production capacity by 2028. That sudden write-down signaled to markets just how severe the ongoing challenges at Iron Bridge have become.

    In the analysis note released alongside the downgrade, Morningstar analyst Jon Mills outlined that overlapping headwinds have already eroded near-term profitability for the miner. “Cost inflation and lower volumes meant unit cash costs rose 19 per cent in the quarter, to US$19.40 per metric ton, while problems at Iron Bridge persist,” Mills wrote. He added that the current market premium on Fortescue shares is driven by investor expectations that elevated iron ore prices, hovering around US$100 per metric ton, will hold steady for longer than Morningstar’s projections anticipate.

    Beyond the immediate downgrade, Morningstar has reaffirmed its “no-moat” rating for Fortescue, concluding the company does not hold a durable competitive advantage over its largest industry rivals. Comparing Fortescue’s margins to global mining giants BHP, Rio Tinto and Vale, Mills noted that Fortescue’s profit margins land well below industry leaders, placing the company in the second half of the global iron ore cost curve at roughly the 75th percentile. “This is a primary driver of our no-moat rating,” Mills explained.

    As millions of Australians hold Fortescue shares indirectly through their superannuation balances, the downgrade has drawn attention to potential downside risk for retirement savings tied to the volatile iron ore sector, with market participants now looking to the upcoming full-year results for further clarity on the miner’s path forward.

  • ‘I feel like I dug my own grave’: The workers caught in the AI transition

    ‘I feel like I dug my own grave’: The workers caught in the AI transition

    For over two decades, the Philippines has held the unofficial title of the world’s call center and business process outsourcing (BPO) capital, a success story that lifted millions of Filipinos into the expanding middle class and reshaped the country’s modern economy. But today, the rise of generative artificial intelligence is posing an existential challenge to this cornerstone of the nation’s growth, leaving thousands of workers jobless and forcing policymakers and industry leaders to rethink a decades-old economic model.

    Lisa, a single mother and content writer who requested anonymity due to a confidentiality agreement tied to her severance pay, spent 15 years building her career in the Philippine outsourcing sector. After graduating college, she cut her teeth as a freelance writer before joining a multinational firm, following the well-trodden career path taken by generations of young Filipinos seeking stable, well-paying work. For years, she managed her workload without AI, meeting all her deadlines and seeing no need to integrate the new technology into her process. Just one month before her probationary role was set to become permanent, eight months into her new position, she was laid off.

    In the months leading up to her redundancy, Lisa says she and her teammates were assigned to edit AI-generated content created by an outside public relations firm, refining output to match the company’s unique brand voice. In essence, their own expertise was used to train the AI system that ultimately replaced them. “I feel like I dug my own grave,” Lisa told the BBC. “We were the ones who trained the artificial intelligence that replaced us.” She is far from alone in this experience.

    Mary, another former content writer whose name has also been changed to protect her identity, shared a similar trajectory. Her employer promoted AI as a tool to boost productivity, but in practice, it added extra layers of work: AI-generated content was often factually inaccurate, requiring teams to spend more time editing and verifying information than they spent creating original copy. Like Lisa, Mary was ultimately made redundant after helping integrate the new technology into the company’s workflow.

    The Philippine BPO industry grew from a niche emerging market offering in the early 2000s to a national economic powerhouse. Positioned as an English-speaking alternative to India, successive Philippine governments offered generous tax incentives, invested in critical digital and office infrastructure, and actively courted multinational firms looking to cut operational costs by offshoring administrative, creative and customer service work. Today, global industry leaders including Accenture, Concentrix and Teleperformance operate sprawling campuses across Manila and other major urban centers, employing roughly 1.9 million Filipinos and generating $40 billion in annual revenue, equal to around 10% of the country’s entire gross domestic product.

    But new data makes clear just how vulnerable this $40 billion industry is to AI-driven automation. The International Labour Organization estimates that more than one in four Filipino workers — 12.7 million people overall — hold roles that are exposed to automation from generative AI, the highest share of any country in Southeast Asia. While the organization notes that many roles will evolve rather than disappear entirely, the service-focused nature of most BPO work leaves the Philippine sector disproportionately at risk of mass displacement.

    Jack Madrid, president of the IT and Business Process Association of the Philippines (IBPAP), confirms that AI adoption is accelerating rapidly across the industry, with more than two-thirds of his organization’s members already running active AI pilot programs. “Agentic AI has the potential to automate at a much more accelerated pace,” Madrid explained. “Obviously, there’s a layer of jobs that are automatable or have been automated.” He added, however, that most affected workers have been redeployed to other roles within their companies, arguing that current hiring slowdowns stem as much from cooling global demand and uncertainty around long-term AI deployment as from automation itself. Even so, he acknowledges the scale of the challenge, saying, “We cannot do enough to be prepared. The importance of reskilling cannot be overstated.”

    Major BPO operators have publicly framed AI as an augmenting tool rather than a replacement for human workers. Teleperformance, the world’s largest call center operator and one of the Philippines’ biggest private employers, says AI will take over routine customer interactions, allowing human agents to move into higher-value, more complex roles. The company has committed to retraining its existing workforce to adapt to these new positions. Accenture has similarly said generative AI will reshape nearly all roles rather than eliminate jobs, and has pledged to invest billions of dollars in AI capabilities and employee training. Concentrix, the largest BPO firm operating in the Philippines, says its AI systems will remain under human oversight and has also committed to upskilling workers to work alongside new technologies.

    Despite these public commitments, many local managers harbor quiet concerns about mass worker displacement, according to Paul Quintos, a researcher at the University of the Philippines-Diliman. Many would prefer to slow the pace of AI adoption, but face overwhelming pressure from foreign clients to integrate the technology into their services. “There’s tremendous pressure from foreign clients to adopt AI,” Quintos explained. “It’s a major cost-cutting measure.” Philippine BPO firms compete fiercely with rivals in India and other low-cost markets for multinational contracts, and clients now increasingly expect providers to not only offer cheap labor but also embed AI into their service offerings to cut overhead costs.

    Quintos also notes that what is often framed as AI-driven restructuring may sometimes be “AI washing”: companies attribute layoffs to technological change to mask broader responses to slowing demand or poor economic performance. Attributing redundancies to AI allows firms to frame cost-cutting restructuring as progressive technological adoption rather than a reaction to weak market conditions.

    Labor advocates point out that existing Philippine employment laws offer clear guidelines for redundancy processes, but provide almost no framework for how companies should introduce AI to workplaces or consult workers on technological changes. Compounding this vulnerability is the fact that the Philippine BPO sector is almost entirely non-unionized, leaving most workers with no formal voice in decisions around how new technologies are deployed that will fundamentally shape their careers.

    Philippine government officials acknowledge that the country is already playing catch-up to prepare its workforce for the AI transition. “To be completely honest, I think we’re slightly behind. We have to catch up,” said Leandro Aguirre of the Philippines Department of Information and Communications Technology. “We have to double our efforts to put our people in a position where they will not be displaced but actually thrive in this growing AI race.”

    The government has pledged to upskill more than 300,000 BPO workers, but Aguirre admits the country may need to abandon its decades-long reliance on foreign offshoring work to build a more resilient digital economy. “We relied heavily on foreign direct investment,” he said. “But I think we also need to focus on local talent and local companies.” The government’s long-term goal is to nurture homegrown Philippine AI firms that can create high-value, stable jobs for local workers that cannot be easily automated or offshored. Aguirre rejects calls for sweeping new AI-specific legislation, arguing that existing labor, privacy and consumer protection laws can be adapted more quickly through targeted regulatory guidance, adding that “the benefits of AI have to trickle down to people. It can’t just benefit employers.”

    For 20 years, the Philippine BPO model has been one of the emerging world’s great economic success stories, turning a large, English-speaking workforce into a globally competitive industry that delivered broad-based prosperity. AI may not completely end that model, but it is already rapidly reshaping it — and without aggressive action to reskill workers and reorient the country’s economic strategy, it risks leaving hundreds of thousands of workers behind.

  • SpaceX’s first-ever earnings show a loss and huge spending

    SpaceX’s first-ever earnings show a loss and huge spending

    When Elon Musk-led SpaceX made its debut as a publicly traded company on U.S. stock exchanges in June, it capped off months of anticipation and even briefly soared past legacy corporate giants including Microsoft and Amazon to claim one of the largest market valuations in global history. But just two months after that historic listing, the aerospace and technology firm’s first public quarterly financial report has painted a far more mixed picture of its current performance, sparking immediate investor backlash.

    The report, released this week, reveals that SpaceX’s top-line revenue grew an impressive 92% year-over-year to hit $7.8 billion (£5.8 billion) in the latest quarter. The company’s core business lines — manufacturing next-generation launch rockets, producing its low-orbit Starlink internet satellites, and operating its social media platform X — all contributed to that strong revenue growth, which outpaces many mature public technology firms.

    However, that revenue surge is far overshadowed by an extraordinary spike in operating costs, which have jumped 550% year-over-year to reach $18.3 billion. Over the first half of 2026 alone, the firm posted a net loss of $2 billion, a figure that has alarmed market watchers and shareholders alike.

    In the immediate aftermath of the report’s release, SpaceX’s stock dropped nearly 9% during after-hours trading, erasing all of the gains it had posted during regular trading hours earlier that day. This decline marks the latest chapter in a steady downward trend for the company’s share price, which peaked at $176 on its first day of public trading in June. For the past several weeks, SpaceX’s stock has traded below its $135 initial public offering price, as initial investor hype around the listing has faded amid growing concerns about the company’s aggressive spending and unprofitable trajectory.

    Market analysts note that SpaceX has long poured billions into research and development for long-term projects, including next-generation Starship rockets for deep space exploration and NASA missions, as well as the expansion of the Starlink satellite internet network. Even so, the scale of the recent spending increase has left many investors questioning how long the company can sustain its current growth trajectory without turning a profit.

  • Paramount chief executive David Ellison breaks silence on Warner Bros mega merger

    Paramount chief executive David Ellison breaks silence on Warner Bros mega merger

    The high-stakes battle over one of the biggest media mergers in entertainment history has entered a new chapter, as Paramount Skydance CEO David Ellison has publicly defended his firm’s proposed $110 billion acquisition of Warner Bros. Discovery for the first time. In a lengthy op-ed published by *The New York Times*, Ellison pushed back against widespread opposition to the mega-deal, arguing that critics are clinging to an outdated vision of Hollywood that no longer aligns with the modern media landscape.

    Ellison’s intervention comes at a critical moment: the merger, which has already received formal backing from the U.S. Department of Justice and European Union regulators, has been put on an indefinite hold following a wave of domestic antitrust legal challenges. The most prominent lawsuits were filed in July by 12 state attorneys general, led by California’s top law enforcement official Rob Bonta, alongside the Writers Guild of America (WGA). The challengers argue the combined media entity would violate the U.S. Clayton Antitrust Act, stifle market competition, and cut professional opportunities for working writers in Hollywood. As a result of these challenges, federal court proceedings have been paused, with a trial not scheduled to begin until March 2, 2027, effectively freezing all progress toward closing the transaction in the U.S.

    A core point of criticism from opponents has centered on two concerns: that a merged Paramount-Warner would hold too much market power, and that it would undermine the editorial independence of the companies’ major news outlets, Paramount’s CBS and Warner Bros. Discovery’s CNN. Ellison directly addressed both concerns in his op-ed. He stressed that the two legacy news brands would retain full editorial independence and remain strictly non-partisan, committed to delivering balanced, unbiased reporting “straight down the middle.”

    To counter broader antitrust claims that the merger would create an unassailable media monopoly, Ellison presented market share data to refute the idea of excessive market control. He noted that even after the merger, the combined company would capture less than 20% of total television watch time in the United States. When major streaming and digital platforms like YouTube are included in the calculation, that share drops to roughly 13%—far smaller than the collective market power held by major tech and streaming giants such as Netflix, Amazon, and Apple. Ellison emphasized that the resources of these big tech competitors “dwarf ours,” meaning the merged Paramount-Warner would still operate as a far smaller player in a crowded, competitive global media market.

    Ellison also outlined the strategic benefits the merger would bring to creative workers and content production. He committed that the combined company would invest more than $30 billion annually into new content, producing 30 wide-release theatrical films and 170 original television series each year. In an era where algorithm-driven digital platforms have reshaped how content is created and consumed, he argued that scaling up content investment through the merger is critical to supporting and sustaining creative workers across the industry. Even as he laid out this ambitious vision, Ellison acknowledged that audience preference is unpredictable, noting that “nobody can dictate what audiences will love.”

    Despite the regulatory approvals the deal has already secured at the federal and international levels, domestic legal challenges have become a major roadblock. While the DOJ and EU have signed off on the transaction, state-level lawsuits and court delays have halted all momentum for closing, leaving the future of one of Hollywood’s largest ever combinations of media assets up in the air.