The Fin

This week on The Fin, economics correspondent Michael Read explains why inflation has proved stickier than expected and raised the stakes for the Reserve Banks's big policy gamble. This podcast is sponsored by Smartsheet. Further reading:https://www.afr.com/policy/economy/inflation-hits-six-month-high-raising-risk-of-a-rate-rise-20240626-p5jot7Investors say there is now a one-in-three chance of an August interest rate rise after inflation accelerated to its highest rate in six months and economists warned price pressures remained too strong. https://www.afr.com/policy/economy/rba-won-t-be-influenced-by-europe-and-canada-on-rate-cuts-20240607-p5jk4zThe Reserve Bank of Australia will not be swayed by interest rate cuts in Canada and Europe, says deputy governor Andrew Hauser, as he warns that high inflation is having “toxic” effects on households and preventing businesses from expanding. https://www.afr.com/policy/economy/rba-board-split-in-doubt-as-libs-dig-in-20240509-p5in16Treasurer Jim Chalmers could be forced to shelve his signature plan to create a specialist interest rate-setting board at the Reserve Bank of Australia after a breakdown in talks with the Coalition.See omnystudio.com/listener for privacy information.

This week on The Fin podcast, senior reporters Jonathan Shapiro and Aaron Weinman on why private credit is booming, who’s making money from it and what happens if the golden age comes to an end. This podcast is sponsored by Smartsheet. Further reading: ‘Marking their own homework’: Inside Australia’s $200b unregulated private credit boomCredit products are being launched a mile-a-minute, promising plenty of returns buoyed by high rates. But behind the euphoria, there’s plenty of disquiet. Fortunes to be made as the private credit boom is going publicOnce a cottage industry, private credit is now attracting billions of dollars, reshaping the financial system and minting new fortunes. Wylie’s Tanarra eyes $1b for new credit fund, snares ex-HSBC bankerThe firm’s latest tilt at private credit will provide long-term loans for investment-grade companies that typically raise capital in overseas bond markets.See omnystudio.com/listener for privacy information.

This week on The Fin, International editor James Curran on why a group of former navy commanders, defence officials and submarine officers believe AUKUS has been set up to fail.This podcast is sponsored by Smartsheet. Further reading:‘A cruel joke’: Why AUKUS might leave Australia strandedA group of defence experts says that the Albanese government is on course for a financial and strategic AUKUS disaster, in the final part of an exclusive series.AUKUS ‘moonshot’ may be a tragically expensive failureIt is alarming that both Coalition and Labor politicians fail to acknowledge the risk that Australia could be left with no submarine capability by the end of the 2030s.Morrison’s ‘longest night’: Inside the making of AUKUSThe military agreement is a mess and risks leaving Australia with no submarine capability at all by the late 2030s. The cloak of secrecy that secured the deal could now be its undoing.3:50Lisa MurraySee omnystudio.com/listener for privacy information.

Inside the most talked-about stock market float in over a decade. This week on the Fin, Chanticleer columnist Anthony Macdonald and senior reporter Primrose Riordan on the story behind Guzman y Gomez, why it was one of the most talked-about floats in years and whether the hype is justified. This podcast is sponsored by Smartsheet. Further reading: Guzman y Gomez IPO pop to $3b lifts hopes for listingsThe Mexican-themed restaurant chain’s value topped $3 billion on its debut, and there are hopes this will rekindle a stagnating market for local sharemarket listings, Can Guzman y Gomez’s New Yorker frontman prove everyone wrong?Managers say the IPO is too riddled with cushy perks for insiders to offer value. Founder Steve Marks disagrees. Guzman y Gomez float a bet on a maverick founder and his grand plansThe Mexican-themed restaurant chain’s founder is pitching big growth. He’s not an overnight success story, but the riches are there if he can make it work.See omnystudio.com/listener for privacy information.

This week on The Fin podcast, Europe correspondent Hans van Leeuwen on why Emmanuel Macron has rolled the dice and whether politics is being dragged to the right.Further reading: Macron has poured on the petrol. Someone will get burntThe President hopes to prove that votes for the right in Europe were just voters venting steam. If he’s wrong, the consequences will be felt far beyond France. UK’s likely next PM copies Albanese election playbookLabour leader Keir Starmer unveiled a policy manifesto containing almost no new policies, confirming just a handful of tax tweaks if his party is elected on July 4. What Aussie business can expect from Europe’s far-right shiftBoth sides of politics in Europe will back industrial policies designed to onshore or diversify supply chains – and that’s the space where Australia plays.See omnystudio.com/listener for privacy information.

Only 9% of indigenous Australians have native title & they "don't walk around like billionaires". This week on The Fin podcast, Peter Ker and Ronald Mizen talk about whether it’s delivering for Indigenous Australians and why there are now calls for reform.Further reading: Call to reform Mabo’s $1b native title dividendNative title groups hosting Australia’s iron ore industry are holding more than $1 billion of net assets in trusts, but after 32 years of the native title regime, there is little to show for the vast majority of Indigenous Australians. ‘Disgraceful’ government neglect costs Indigenous funds $1bTwo big government funds set up to benefit Indigenous people without native title rights were shackled for decades by the investment equivalent of stuffing money under a mattress. Long walk to treaty resumes in a fractured federationThe Albanese government has backed away from a promise to strike a treaty with Indigenous Australians. In a federal policy vacuum, some states are picking up the baton.See omnystudio.com/listener for privacy information.

This week on The Fin, technology editor Paul Smith and columnist and senior writer John Davidson explain how AI is moving to the edge and what that means for jobs, energy use and investor returns. Further reading:Apple’s Siri to get its shot at AI redemptionOnce the best (and only) AI assistant on phones and other devices, Siri has fallen into disrepair. Next week, Apple is expected to announce a host of improvements. Alex Pollak is already investing in ‘the very next’ NvidiaA shift in where AI queries are being handled has opened up the investment field to more chipmakers, and to apps we haven’t even dreamed of yet. Why CBA’s AI future needs more reimaginingA US trip left CBA chief executive Matt Comyn with questions to which he doesn’t have all the answers. It’s a common theme across the Australian business world.See omnystudio.com/listener for privacy information.