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Business
FMG faces $1.8bn Solomon lawsuit as H1 profit halves
Shares in Fortescue Metals dropped more than 7% today with a barrage of bad news hitting the market this week. The miner revealed an H1 FY25 profit of just US$1.55 billion - less than half that of H1 2024, compounded with a $1.8 billion legal action over its Solomon iron ore hub and the Trump administration pausing grant payments for its American green energy initiatives. Depressed iron ore prices and production costs are - as they have been with both BHP (ASX : BHP) and Rio Tinto (ASX: RIO) - to blame for lower profit margins for iron ore producers - of which, and unlike the other two, is a much more dominant revenue creator for FMG (ASX : FMG). The numbers FMG's net profit after tax (NPAT) for the half ending December 31 was $1.55 billion, missing its estimate of $1.55 billion - 53% lower year-on-year when it posted an NPAT of $3.34 billion. Net cash flow from operating came in at US$2.4 billion and free cash flow was US$0.7 billion, after investing US$1.8 billion in capex during H1 FY25. The expenditure was made up of: US$1.3 billion in iron ore hub opex and development (inclusive of fleet deposits of US$235 million) US$160 million for exploration and studies US$27 million for iron ore projects US$139 million
Trump considering rebate checks from DOGE savings Gold flies near record highs; tariffs threats escalate Glencore sheds 7.3% as profit falls; weighs listing move
Wealth
Govt denies decision on retirement income solution
The Australian Government has hosed down speculation that superannuation funds would be required to offer annuity-style products to guarantee income in retirement and ensure Australians spend and do not hoard their retirement savings. This comes as Australia’s $4.1 trillion super industry prepares for a major structural shift over the next decade as more than 2.5 million people leave the workforce and move from the accumulation phase to the retirement phase of super. A spokesman for Treasurer Jim Chalmers said no decisions had been made on draft principles the Government was developing to guide the industry in delivering high-quality income products that enhance financial security in retirement. He commented on a report in the Australian Financial Review newspaper that major superannuation funds would guarantee an annual income for millions of retirees under a confidential proposal from the Government. The AFR wrote Treasury officials had circulated proposed standards that would set a draw-down rate for retirees with more than $200,000 in their account to ensure a regular income for a fixed term or the rest of their life, including regular payments indexed to inflation or the financial performance of a pool of assets.
Markets
ASX 200 falls 1.2% as real estate and healthcare drop
The Australian sharemarket extended losses for the fourth consecutive session on Thursday, as a stronger-than-expected labour market report reduced expectations for a May interest rate cut. The S&P/ASX200 fell 96.4 points, or 1.2% to 8,322.8, with seven of 11 sectors closing in the red. The real estate sector was hit hard, with Goodman Group tumbling 5% as investors took profits after a 2.4% gain on Tuesday. The decline followed the company’s announcement of a $4 billion capital raise - its first in 12 years - aimed at expanding its data centre portfolio. Financial stocks also struggled, with ANZ falling 3.1%, while Westpac and NAB dropped 3% and 4.3%, respectively and Commonwealth Bank declined 2%. Miners faced significant selling pressure, with Fortescue slumping 6.2% after reporting a more than 50% decline in profit, while Rio Tinto fell 1.5% after reporting an 8% year-on-year decline in profit to US$10.86 billion. Retail giant Wesfarmers climbed 1.3% after reporting stronger sales and earnings in the first half, driven by solid performances from Bunnings and Kmart. Telstra soared 5.6% following a 6.5% rise in interim net profit to A$1.03 billion, underpinned by strong mobile and infrastructure earnings. Su
Business
Live Blog: Earnings season - Telstra, Wesfarmers, Etsy
Welcome to our live blog coverage of earnings season! This is the time of year when publicly traded companies report their financial results, giving investors and analysts a glimpse into their performance and future outlook. We'll bring you real-time updates, analysis, and commentary on the latest earnings reports from major companies across various sectors. Stay tuned as we break down the numbers, highlight surprises, and provide insights into what these results mean for the market. ______________________________________________________________________________________ Summary Telstra bests estimates Wesfarmers profits up across sectors Fortescue, Rio Tinto profits drop Etsy's gross merchandise sales fall, but net income grows Analog Devices still passes estimates amid declines Garmin extends estimate-smashing streak Plus more to come _______________________________________________________________________________________ 8:41 am (AEDT): Hello, everyone! Harlan Ockey here to walk you through this morning's earnings. We have companies like Telstra, Wesfarmers, Fortescue, Etsy, and Crown Castle reporting results today. Kicking things off at the ASX, Transurban (TCL) has plunged to an A$47 million loss in the first
Business
Mission Critical: Metals markets walk China tightrope
Azzet’s Mission Critical is a weekly column that lays out the ebbs and flows around critical minerals supply chains - from production, refinement, mergers & acquisitions, to manufacturing and consumer products. Demand prospects for major critical minerals are looking uncertain this year, and while supply disruptions in copper and aluminium will be able to offer downside protection against price drops, lithium, cobalt and nickel are set to remain weighed down by an oversupply of batteries from China. In the critical minerals scene, what happens in China sends ripples around the world. Copper prices are buoyant, and it just so happens that great investment in the country is estimated to rise this year - ergo, so are its copper imports, rising 20% YoY for December. It makes sense then that refined copper out of China jumped to a record high of 1.2Mt in December, with annual production growth of 5% to 13.6Mt. Feeding in to those smelters is rebounding South American copper production, increasing in both Peru and Chile 3% YoY to 8.3Mt for 2024. China currently imports ~40% of Chile's copper and bought US$15.5 billion-worth of the red metal from Peru in 2023 - equal to 5.6% of the nation's GDP that year.Source: ANZ Resear

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Business
Canada grants contract for Alto high-speed rail network
Canada’s government has granted a CA$3.9 billion (A$4.3 billion) contract to develop a high-speed passenger rail network to a consortium including Air Canada, Systra, and AtkinsRealis. The network, known as Alto, would span the area from Toronto to Quebec City, passing through cities like Montreal and Ottawa. The project would halve the travel time between Toronto and Montreal to just three hours, the Canadian government said. “Today’s announcement of Alto, a high-speed rail system between Toronto and Quebec City, will transform our economy — drastically shortening commute times for millions of Canadians, turbocharging economic growth, creating thousands of good-paying jobs, improving productivity, and reducing emissions,” said Canadian Prime Minister Justin Trudeau. Canada has allocated CA$3.9 billion for the project over the next six years, as well as $371.8 million from its 2024 budget. Canada’s government has not yet said when Alto is likely to be completed. The Cadence consortium assigned to the project also includes Keolis, SNCF Voyageurs, and Quebec’s pension fund CDPQ. CDPQ is financing the construction of Montreal’s Réseau Express Métropolitain light rail system, with eight new stations and two new branches se
Lifestyle
New government vows to end chaos with Olympics plan
The Queensland Government has named the date it will unveil its plan for delivering the 2032 Olympic and Paralympic Games after years of indecision and infighting. The new Liberal/National Party Government, which was elected in October 2024, said it would announce the plan on 25 March. Although the state capital of Brisbane was awarded the Games in 2021, no decision has been made on the location of the main stadium and athletics venues and debate has raged about the cost at a time when the state government faces major fiscal challenges. The Government has blamed the Labor Party, which had governed in the northern state for 30 of the previous 35 years, for what it called “more than 1200 days of Games chaos”. Deputy Premier Jarrod Blaikie said the plan would be released with the final report of the Games Independent Infrastructure and Coordination Authority, the body overseeing and coordinating the infrastructure development and planning for the 2032 Games. He said more than 5,000 submissions were made to the Authority, which was due to hand the final to the Government on 8 March and, following consultation, Cabinet would sign off on the plan on 24 March. Bleijie said the Government would deliver the plan to “final
Business
Network 10 found guilty of gambling ad breach
Australian Communications and Media Authority (ACMA) has found Sydney’s Network Ten breached gambling advertising rules during a live broadcast of the Australian Formula 1 Grand Prix in 2024. An investigation by ACMA found four gambling ads were aired at prohibited times during the network’s broadcast of the highly anticipated first practice session of the Grand Prix on March 21 2024. In motorsports, practices and qualifying rounds are subject to the same restrictions on gambling advertising as the main event itself as they attract a large number of viewers. ACMA also found in a separate investigation that Network 10’s associated streaming platform 10 Play breached online gambling advertising rules during two live-streamed sports events. According to ACMA, under the Commercial TV Code of Practice, gambling promotions cannot be shown during broadcasts of sporting events between 5am and 8.30pm, including in the five minutes before and after the event. Carolyn Lidgerwood, a member of ACMA emphasised that these rules around gambling advertisements on TV are there to protect the community from gambling-related harms. “Broadcasters should have strict controls in place to ensure compliance with the restrictions on gambl
Technology
Microsoft unveils its first quantum computing chip
Microsoft has revealed its first quantum computing chip, the Majorana 1. It is the world’s first quantum chip powered by a new Topological Core, the style of which Microsoft says will have quantum computers solving real world problems on an industrial scale “in years, not decades”. The chip utilises the worlds first topoconductor, a type of material which can observe and control Majorana particles to produce more reliable and scalable qubits. Quibits are the base line for building quantum computers, and this new design, used by Microsoft to develop the Majorana 1 processor, could see a million qubits on a single chip small enough to fit in the palm of a hand. This kind of power is what would allow quantum computers to achieve things such as breaking down microplastics, inventing self-healing materials for construction, manufacturing or healthcare, with Microsoft stating that every computer in the world operating together “can’t do what a one-million-qubit quantum computer will be able to do.” “Whatever you’re doing in the quantum space needs to have a path to a million qubits. If it doesn’t, you’re going to hit a wall before you get to the scale at which you can solve the really important problems that motivate us,”
Economy
ACCC wants gas to light the east coast of Australia
The Institute for Energy Economics and Financial Analysis (IEEFA) has backed Australian government calls to accelerate an increase in gas supply to power the east coast grid. The Australian Competition and Consumer Commission (ACCC)’s January gas report forecasts that the perennially tight east coast gas market is likely to have sufficient gas supply to meet anticipated demand in 2025 and 2026.Source: ACCCThe report highlights longer-term concerns around future supply adequacy, with structural supply gaps likely to emerge as early as 2027 in the southern states along the eastern seaboard, and in the broader east coast gas market by 2029. “Natural gas will play a critical role in Australia’s transition to lower emissions. As we increasingly rely on renewables for electricity generation, gas will be required to support energy security, reliability and affordability, while remaining an important source of energy and feedstock for residential, commercial and industrial users.” - ACCC A range of factors, the IEEFA says, have contributed to the worsening supply-demand outlook: including: Declining gas production in the Gippsland Basin not being offset through additional domestic supply from elsewhere despite east coast gas pro