The Day Ahead
Watch for immediate volatility in precious metals and cryptocurrencies. The "debasement trade" has effectively collapsed following the appointment of Kevin Warsh as Fed chair, signaling a hawkish shift in US monetary policy. Expect the US dollar to remain strong, putting further pressure on gold and bitcoin.
In Australia, the focus shifts to sovereign risk and energy security. The government's plan to hike capital gains taxes to 30% for foreign investors in mining and energy, coupled with the proposed 20% domestic gas reservation scheme, is drawing fierce criticism from industry giants like Seven Group Holdings. These moves may deter the foreign capital essential for the 2030 net-zero transition.
Finally, keep an eye on the "Big Four" accounting firms. With the federal government consulting on the potential forced separation of audit and consulting arms, and KPMG facing a leadership exodus and partner pay cuts, the professional services sector is entering a period of high instability that could ripple through corporate governance across the ASX.
Currency Movements
| Pair | Price | 24hr Change | 7-Day Trend |
|---|---|---|---|
| AUD/USD | 0.6895 | +0.0012 (+0.17%) | |
| EUR/USD | 1.1400 | +0.0004 (+0.04%) | |
| GBP/USD | 1.3251 | +0.0019 (+0.14%) | |
| USD/JPY | 162.65 | +0.3390 (+0.21%) | |
| USD/CAD | 1.4221 | -0.0008 (-0.06%) | |
| USD/CHF | 0.8101 | +0.0008 (+0.10%) | |
| NZD/USD | 0.5678 | +0.0025 (+0.44%) |
Yesterday's Key Stories
Mining & Critical Minerals
- South32 is divesting its aluminium assets in Australia, Brazil, and South Africa to Alcoa for up to US$5.6 billion (A$8.1 billion) to pivot toward base metals and renewables.
- Arafura Rare Earths reached a final investment decision for the Nolans project in the NT, securing over $900 million in funding to create a non-Chinese supply chain for NdPr.
- Develop Global awarded a $70 million mining and crushing contract to MLG Oz for the Pioneer Dome lithium project.
- Orica is investing nearly $400 million in the Hunter Valley Hydrogen Hub to produce 4,700 tonnes of renewable hydrogen annually.
- Australian Rare Earths (AR3) commenced pilot-scale processing of ore from its Koppamurra project via an ANSTO research hub.
- Chalice Mining appointed former Rio Tinto executive Paul De Ponte as project director for the Gonneville critical minerals project.
- Latrobe Magnesium has completed 33% of construction for its Stage 1 Demonstration Plant, targeting first metal production in H2 2026.
- Weir Minerals secured an order to supply 14 slurry pumps for an iron ore pipeline project in India.
Macro, Policy & Regulation
- The Australian government is considering granting ASIC powers to fine "Big Four" accounting firms over $200 million and may force the structural separation of audit and consulting divisions.
- KPMG is in crisis following the exit of eight top partners and the appointment of Michael Ebeid as independent chair amid projected partner pay cuts of up to 20-30%.
- The federal government provided $45 million to Sicona Battery Technologies to scale silicon-based anode production at Port Kembla.
- New anti-money laundering laws took effect yesterday, extending reporting requirements to real estate agents, lawyers, and accountants.
- The OECD reported Australia's productivity declined by 0.7% in 2024, ranking it 29th among advanced economies.
Corporate & Finance
- Coles is in talks to acquire TPG's Greencross veterinary business for approximately $4 billion, while the ACCC blocked the retailer from opening a new site in Kalgoorlie.
- Barrenjoey and Magellan Financial completed their merger to form Barrenjoey Group (ASX: BJY).
- Perpetual rejected a $2.5 billion takeover bid from an EQT-controlled entity, stating the offer lacked fair value.
- Winning Group has appointed bankers for a potential $1 billion IPO next year.
- Westpac director Peter Nash resigned from the board to avoid perceptions of bias linked to his former role at KPMG.
Today's Useless Fact
Because metal was scarce, the Oscars given out during World War II were made of wood.