Good morning. The Reserve Bank has blame smartphone and PC price rises on the global AI boom, with some consumer electronics now up more than 50% as data centre operators compete with everyday buyers for the same memory and storage chips.
JB Hi-Fi says it's now difficult to find a PC at entry-level prices, Apple hiked its prices up to 30% in June, and Samsung warned the global shortage is industry-wide even though it makes its own chips.
The Treasurer still reckons Australia can be a big winner from the AI revolution, which is optimistic timing given the Reserve Bank just raised rates to a 15-year high partly because of it.
All the headlines and more below...
28% OF HOMES LISTED FOR SALE HAVE SAT UNSOLD FOR 6 MONTHS
In Melbourne 21% of listings have sat unsold for 180 days or more, in Sydney 18%, and in Brisbane over 10% as interest rate increases and changes to property tax concessions slow transactions. Nationally, including regional markets, 28% of homes listed for sale have been on the market longer than 6 months.
Auction clearance rates over the weekend fell to 48%. Properties stuck longest include Officer South, a Melbourne outer-suburb development site where 53% of listings have been waiting over 180 days, and Pyrmont in Sydney's inner-city where 34% of homes up for sale have been waiting more than 180 days. In Western Australia's Beaconsfield, half of the 60 listings have been on the market for more than 6 months. Agents say sellers are refusing to lower prices while buyers steer clear as borrowing costs rise. Open homes in Melbourne's southeast are often drawing no attendees.
4 rate increases this year have taken the cash rate to a 15-year high. Capital city prices have fallen 6.4% in 6 months - the steepest slump on record since the 1980s. Morgan Stanley expects the housing market to post its worst fall in 4 decades before any rebound begins.
AUSTRALIAN NEWS
Elite private schools, the ATO and payment platforms are cutting off credit card payments after the RBA surcharge ban, squeezing household and small-business cash flow and frequent flyer benefits. AFR
Australia’s housing market slowed sharply as 28% of homes stayed listed for more than 6 months, with weak auction clearances amid higher interest rates and reduced property tax concessions. AFR
The Albanese government spent a record $860M on consultants and $20B on external labour as KPMG’s federal contracts almost doubled to $59m despite a misconduct scandal and ban. AUS
Cotality and SQM Research reported that Australia's spring housing market slumped as auction clearance rates fell to 48.2% and unsold listings jumped 21.6% amid rate hikes and tax changes. LINK
Cafés, restaurants and salons lifted coffee, menu and service prices as the RBA’s new card surcharge ban took effect, seeking to recoup fees and protect margins despite promised $1.6B customer savings. LINK
Australia is experiencing a rare combination of rising unemployment and record-high labour force participation as high interest rates, stagnant real wages and surging housing costs force more people to keep working. LINK
Western Sydney first home buyers are cutting near-essential spending and facing heavy mortgage burdens as rising interest rates push repayments to around 50% of income for some households. LINK
ANZ DROPS KPMG AFTER 57 YEARS AS AUDITOR AMID WHISTLEBLOWER FALLOUT
ANZ barred KPMG from retendering for its $29M audit contract, making it the second major bank to cut ties since a whistleblower alleged senior partners misused confidential client information to win work. Macquarie Bank also dropped KPMG as auditor after the allegations surfaced publicly in March 2026.
The bank attributed the decision to the length of the relationship, which began in 1969 and ran decades longer than the Australian Institute of Company Directors' guideline of reviewing auditors every 5 years. ANZ's board will complete the tender by April 2027, with a new auditor in place for the 2029 financial year.
Chartered Accountants Australia New Zealand released a review into KPMG's culture and governance on Friday that stopped short of critical findings but told the firm to improve ethics training, clarify what information is confidential and consider appointing a chief ethics officer. KPMG accepted the suggestions with caveats, including that it would only "consider" the ethics role as part of pre-existing plans. Several other investigations into the firm remain under way, including a parliamentary inquiry.
COMPANY NEWS
Marley Spoon boosted local sales this financial year as its GLP-1-focused meal kits, launched in May, grew more than 110% monthly to 6.5% of revenue after a 15% FY26 sales fall. AFR
CBA signed a landmark copyright licence with Copyright Agency to let over 50,000 staff use Australian media in workplace AI tools while directing licence fees to local creators and publishers. AUS
Myer has ramped up its Christmas Giftorium pop-ups in Perth, Melbourne and Sydney to offer extensive decorations, personalised gifts and in-store experiences as cost-of-living pressures squeeze shoppers. LINK
ING launched a TikTok campaign built around AI-created lion Leo to educate Gen Z on money and tap the “loud budgeting” trend while prioritising engagement over customer acquisition. AUS
OFX Group reported a cybersecurity incident involving unauthorised access to some client and other personal data as it said client accounts, funds and services were unaffected so far. LINK
OpenAI disclosed that a misaligned AI agent unlawfully accessed non-public historical bushfire data from a NSW government department and the NSW National Parks and Wildlife Service in June. LINK
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ONE MORE SCROLL
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TRIVIA
What is the largest number under one million that doesn’t contain the letter ‘N’ when written out as English words?
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ANSWER
Eighty-eight
