Morning Headlines

First productivity chief calls for Labor U-turn

Inaugural Productivity Commission chairman Gary Banks says Labor needs to ‘‘U-turn, or at least detour’’ on its economic agenda, saying plans to spend billions of dollars subsiding local manufacturing is a ‘‘fool’s errand’’ that risks repeating mistakes of the past by propping up ‘‘political favourites’’. The Fin

$330b for new weapons leaves decade of danger

Labor must bring forward Australia’s defence spending or risk being exposed to a threat within the next 10 years, analysts and the opposition have warned, after Defence Minister Richard Marles announced a $330 billion build-up to counter Chinese coercion. The Fin

Resources ‘under assault’ from China

United States ambassador Caroline Kennedy has warned Australia’s battery minerals sector is under assault from state-owned Chinese companies in Indonesia, where vulnerable communities are being destroyed ‘‘under the guise of economic development’’. The Fin

Star fallout reaches Bendigo bank board

Star Entertainment executive chairman David Foster will temporarily step down from leading the Bendigo and Adelaide Bank board after the inquiry into the Sydney casino heard further evidence of disunity within the leadership team and inadequate oversight. The Fin

Inflation risk in ‘future policy’

America’s extraordinary loose budget settings are in part to blame for the country’s reacceleration in consumer prices and delayed rates relief, economists say, warning that Labor’s newly announced Future Made in Australia policy could have a similar inflationary impact here. The Aus

Bonanza for rich leave poor in their wake

Australia’s wealth gap has become a chasm in the past two decades, driven largely by the haves and the have-nots of home ownership, with the average household wealth of the richest 10 per cent soaring 84 per cent to $5.2m, new research finds. The Aus

Record drop in listings locks Perth in nasty property cycle

Shocking new data has revealed Perth property buyers and sellers are locked in a vicious cycle of low listings after a fall of nearly 30 per cent over the past year. The West

The Australian Financial Review

Page 3: Labor’s controversial plan to tax unrealised gains on big superannuation accounts will ‘‘cut off the lifeblood of Australia’’ by discouraging investment in local firms, funds management veteran Geoff Wilson says.

Page 4: Former Productivity Commission boss Gary Banks has conceded the organisation got it wrong when it recommended the creation of the National Disability Insurance Scheme, and warned that Labor’s proposed overhaul will do little to reduce the program’s explosive budget trajectory.

Page 5: Treasurer Jim Chalmers says greater geopolitical uncertainty will foment economic volatility in coming months, particularly in oil prices and stocks, and the push to curb inflation will slow.

Page 8: Federal Court judge Michael Lee has demanded details of what a senior lawyer acting for Network Ten in the Bruce Lehrmann defamation matter said outside court criticising the blockbuster decision.

Page 8: The former producer for the Seven Network’s Spotlight program who gave explosive evidence alleging the broadcaster paid for cocaine and prostitutes for Bruce Lehrmann has threatened to sue his former employer for saying he lied.

Page 14: Woolworths’ high return on equity has been skewed by the $12 billion spin-off of its liquor retail and hotels business Endeavour and the depressed value of its supermarket sites on the balance sheet, MST Marquee brokers say.

Page 14: Lynas investors are split on the merits of resuscitating merger talks with American rare earths producer MP Materials, as Gina Rinehart’s ascension to major shareholder in both companies suggests last year’s foiled $10 billion deal could be revisited.

Page 15: A $2.3 trillion London-headquartered asset manager has ramped up the pressure on Woodside over its climate strategy, revealing it would vote against the gas giant’s transition plan and oppose the re-election of chairman Richard Goyder.

Page 16: Global Infrastructure Partners’ slow-moving exit at Pacific National, the country’s largest privately-owned rail freight business, has arrived at the next stop – management presentations.

Page 16: Analyst Richard Creed cut the credit rating of Macquarie-owned Bingo to B- from B citing weak cash flow, elevated leverage and a negative outlook.

Page 17: The Federal Court has found stockbroker Adam Blumenthal’s market-rigging breaches of shares in cannabis start-up Creso Pharma were serious, deliberate and repeated.

Page 17: Rio Tinto has reiterated warnings that its ability to hit annual guidance for iron ore exports from Western Australia hinges on timely environmental and Indigenous heritage approvals after a dip in production over the first three months of this year.

Page 19: Shares in Evolution Mining climbed to a two-year high after reporting a 15 per cent increase in gold output in March and affirming 2024 guidance.

Page 24: The ASX ended its fifth consecutive session in the red yesterday as traders continued to weigh the uncertain outlook in the Middle East and interest rates remaining high for longer than expected.

Page 24: Australia’s supermarket giants and fast-food chains may need to brace for a hit to customer demand as the adoption of diabetes and weight-loss drugs such as Ozempic accelerates.

Page 25: The Australian dollar dipped below US64¢ for the first time this year after comments from Federal Reserve chairman Jerome Powell pushed out US interest rate cut expectations to the end of the year.

Page 25: The federal government is expected to tread carefully when it hands down the budget next month and use any surplus to tackle the cost of living crisis via energy, child care, and rent subsidies, without jeopardising the Reserve Bank of Australia’s path to cutting interest rates.

Page 25: Oil edged lower even as tensions in the Middle East persisted, with traders waiting to see how Israel would respond to Iran’s weekend attack.

Page 27: Australia’s growing demand for data centres is pushing up costs for specialised cranes at twice the rate of ordinary commercial tower cranes, even as other sectors of construction plateau.

Page 30: Australia’s $237 billion pipeline of infrastructure is at risk from a generation of construction workers deserting the industry, after a landmark survey of new trainees showed excessive working hours put many off choosing a career in building.

Page 31: Home buyers looking to score units for under $400,000 will not easily find them in Sydney or Brisbane, but Melbourne and Perth still offer plenty of opportunities, at least for now, a new report shows.

The Australian

Page 6: The international education industry has warned Home Affairs Minister Clare O’Neil that the government’s push to reduce migration by slowing down visa processing is causing severe economic damage, including loss of jobs, which could push Australia towards recession.

Page 7: ANZ will no longer issue cheque books to its customers in a major banking shake-up expected to affect thousands, with the changes to come into effect in a few months.

Page 13: Magnis Energy Technologies tapped private credit markets for a $4.6m lifeline, supposedly backed by a coterie of high-net-wealth investors, despite signing a separate deal requiring the ASX-listed graphite and energy play to consult its existing lenders.

Page 13: Chemicals major Qenos has called in voluntary administrators only a week after Prime Minister Anthony Albanese made reinvigorating Australia’s manufacturing sector a key plank of Labor’s re-election strategy.

Page 13: Rio Tinto says it expects to see strong iron ore demand from China as exports surge from the world’s biggest steel producer, despite last quarter’s plunge in iron ore price.

Page 14: Ingenia’s new CEO John Carfi now has his feet under the desk at the land lease and retirement village operator and industry participants are curious about his plans for the $2bn real estate company’s holiday parks.

Page 15: Qantas wants to turn materials from its retired aircraft into parts for new planes joining its fleet as it moves to accelerate supply chain decarbonisation amid plans to be net zero by 2050.

Page 17: Federal Reserve chairman Jerome Powell says firm inflation during the first quarter has introduced new uncertainty over whether the central bank will be able to lower interest rates this year without signs of an economic slowdown.

The West Australian

Page 15: Airbnb owners will have to pay an initial $250 registration fee — plus $100 annually — but Commerce Minister Sue Ellery said the charges were “not a large amount” compared with the money short-stay accommodation owners were making.

Page 18: US ambassador to Australia Caroline Kennedy has taken a not-so veiled swipe at the state-owned Chinese mining companies in Indonesia that are squeezing Australian nickel producers out of the market.

Page 56: WA are leading the charge in sales of hybrid cars which have more than doubled in Australia during the past year in a trend that is eating away at the popularity of petrol and diesel vehicles.

Page 57: A business behind famed local hedged fund NWQ has been sent to liquidation, less than a year after a red card from the corporate regulator.

Page 57: The local share market has finished slightly lower as its losing streak extended into a fifth straight session, coming close to wiping out its gains for the year.