Australia Tackles Diplomatic Row Over Chinese-Owned Port
The Australian government is confronting a fresh diplomatic dilemma with Beijing: how to fulfill a pledge to regain control of the strategic Port of Darwin from a Chinese company. The Australia-China Relations Institute thinks the issue has been driven by domestic politics and will not trigger a downwards spiral in bilateral relations. ACRI Director James Laurenceson talks about Canberra's plan and the global trade turmoil on "Bloomberg: The Asia Trade."
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32 minutes ago
- Yahoo
Trump slump smashes major Aussie company
A brutal two-punch combo of Trump tariffs and inflation shocks is crushing the stock prices of major Australian fashion retailers, with luxury brand Cettire leading the dramatic slump. The company started off the year with a market capitalisation of nearly $600m, but a precipitous 81 per cent decline in its share price since January 2 value means it is now worth just $115m. Moomoo market strategist Jessica Amir warned 'serious alarm bells' were ringing about the survival of the company, which sells high-end products worldwide through its online platform. 'It's safe to say there are some serious questions about a potential receivership,' she said. In a trading update from June 12, Cettire announced just $500,000 in earnings for the financial year ending May 31, though sales revenues lifted 1.7 per cent to $693.8m. The company now has $45m left in cash, down from $79m in March. Cettire founder and CEO Dean Mintz blamed trade uncertainty around US tariff policy in part for the difficult trading environment. 'Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy,' he said. 'As a result, elevated promotional activity persists across the market.' While Cettire's share price is tanking, there are avenues the company could pursue to avoid any fall into administration, for example a capital raise or taking on a new debt facility. It is not the only ASX-listed apparel business to record a disturbing slump in value this year. Footwear retailer Accent Group has slumped 45 per cent, while KMD Brands, which sells the Kathmandu and Rip Curl brands, has tumbled 33 per cent. City Chic has retreated 26 per cent. At the start of the year, KMD was worth about $300m. Now it is worth less than $200m. Some of the retailers point to US President Donald Trump's tariff shock for creating additional challenges in their businesses. In a trading update from June 19, KMD estimated tariffs would strip about $1m in earnings from the company across the 2025 financial year. 'The (company) continues to closely monitor the fluid US tariff situation and it remains too early to estimate the impact on consumer demand in the US,' the company said. 'Given the uncertainty in the US market, agility remains the (company's) main priority heading into 2026.' In an update from May 5, City Chic has warned some 20 per cent of its revenue was generated in the US and 90 per cent of its products were sourced from China, a big target for tariffs. 'Due to the tariff situation and its potential impact on consumer demand, USA sales expectations have been reduced for FY26,' the company said. But global trade chaos is not the only pressure mounting on fashion stocks, Ms Amir cautioned. Rising oil and electricity prices are also eating away at consumer spending power. 'The things we're paying every quarter and every month are far higher than they were,' she said. 'Petrol costs are up markedly and that's because the oil price is up. 'It means you've got less money left over to buy things like a luxury designer handbag from Cettire, or that Rip Curl jumper. 'You might want to get out your needle and thread and sow up your Kathmandu. You're not exactly going to go out and buy another one.' The benchmark ASX200, which tracks the 200 largest companies on the Australian stock market, has advanced 3 per cent year-to-date.
Yahoo
an hour ago
- Yahoo
Young Aussie reveals $390,000 property regret after falling into common trap: 'Pressure'
An Australian mortgage broker has revealed why she regrets buying her first property and why she is urging first-time buyers to slow down and consider all their options. Housing affordability pressures mean some first-time buyers are making fast decisions for fear of missing out, and it could cost them significantly in the long run. Imogen Alexy bought her first home, a one-bedroom apartment in Glen Huntly, in Melbourne's southeast, in 2020 for $390,000 with a 5 per cent deposit. The now 29-year-old mortgage broker told Yahoo Finance she felt pressure at the time to get into the property market as quickly as possible and achieve the 'Great Australian Dream'. 'I feel like I rushed it because I wanted to get my foot in the door and thought that it was a rat race. I thought if I left it until I was later in my 20s I was failing or missing out," she said. 'You constantly feel this pressure of the market is going to go up and I need to get my foot in the door, but really the market is a cycle.' RELATED Aussie couple's $150,000 mortgage move in growing Bank of Mum and Dad trend Centrelink payment alert for 58,000 Aussies in caravans: 'Won't affect' Couple's side hustle amid double redundancy secures $13 million fortune While her apartment has gone up by about $100,000 in value, Alexy said she wishes she had waited and instead bought a house or bigger property in the outer suburbs with better capital growth potential. She admitted she thought buying where she wanted to live was the only way to get into the market and said she wished she had looked at the long-term, rather than just the immediate, consequences of buying a property and considered rentvesting. 'I think I took the convenience factor over thinking about my future and I didn't have someone in my corner,' she said. 'I wasn't aware at this stage that there were other options and I could look at different quality properties, and that could set me up for success better in the future.'After living in the property for two years, Alexy now rents it out for $350 per week and lives in nearby Glen Iris with her partner. She is saving up for another property and said she would have loved to be in the position to use the equity in her first property if it had been bigger. Instead, she said it will now take her longer to save up a deposit. A staggering 45 per cent of first-home buyers who purchased in the past year admitted they regret their decision, a new survey by Finder found. The two most common regrets were paying too much for the home (26 per cent), followed by not saving a large enough deposit (11 per cent) and buying in the wrong area (10 per cent). The percentage of first-home buyers who bought out of a worry that prices would become too expensive had increased to 38 per cent. 'This kind of financial risk-taking reflects not just ambition, but anxiety – the belief that if you don't buy now, you may never be able to,' Finder head of consumer research Graham Cooke said. Aussies are also pushing their budgets to the limit, with about 14 per cent of Aussies who bought in the past 12 months saying they had no savings left and a third had less than $10,000. Alexy said buying with a 5 per cent deposit was one aspect she doesn't regret because it meant she still had a buffer in place and money for other investments. The fact that she bought a cheaper property also meant she didn't stretch herself too thin and was able to cope with rising interest rates. Little Real Estate executive general manager of property services Anne Crarey said there were a few common 'traps' she was seeing first-time investors like Alexy fall into. 'Poor research, overestimating returns, and failing to plan for vacancy or maintenance costs are some of the most common issues that can turn a promising investment into a costly mistake,' she said. Other frequent pitfalls include focusing on yield without considering growth, overlooking vacancy rates, letting emotion drive decisions, and overextending financially. 'Don't go it alone. With the right advice and a clear strategy, you'll be in a much stronger position to build a property portfolio that delivers results for years to come," Crarey said. Alexy said she would also recommend first-home buyers do their research and speak to experts in the industry to understand all their options. 'It's really easy to get laser-focused on one idea and not necessarily consider all your options. I think that's where buyer's remorse comes into play a lot of the time,' she said. 'Stop comparing and slow down and realise that it's our own journey, and whatever timeframe we have that's totally ok. There's no rush to be buying your first home, the average first-home buyer is 36 now.' Alexy said it was important to consider the property's growth potential and plan ahead, even if you planned to live in it for the foreseeable future. 'It's really uncommon that someone buys somewhere and is going to live in their first home forever,' she said. 'Most people, unless they have extenuating circumstances like massive gifts or huge deposits or really high incomes, have to use that first home as a stepping stone to get somewhere that they would like to live longer term.'Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
an hour ago
- Yahoo
ASX Penny Stocks To Watch: 3 Picks Under A$700M Market Cap
Australian shares are experiencing a challenging period, with the market facing its fifth consecutive day of losses amid global geopolitical tensions. In such uncertain times, investors often look towards smaller or newer companies for potential opportunities, which is where penny stocks come into play. Although the term "penny stocks" may seem outdated, it still captures the essence of investing in less-established firms that can offer value and growth potential when backed by solid financials and a clear trajectory. Name Share Price Market Cap Financial Health Rating GTN (ASX:GTN) A$0.60 A$114.46M ★★★★★★ IVE Group (ASX:IGL) A$2.70 A$416.29M ★★★★★☆ West African Resources (ASX:WAF) A$2.17 A$2.47B ★★★★★★ Southern Cross Electrical Engineering (ASX:SXE) A$1.74 A$460.07M ★★★★★★ Tasmea (ASX:TEA) A$3.20 A$753.99M ★★★★★☆ Regal Partners (ASX:RPL) A$2.06 A$692.5M ★★★★★★ Navigator Global Investments (ASX:NGI) A$1.575 A$771.88M ★★★★★☆ Lindsay Australia (ASX:LAU) A$0.695 A$220.43M ★★★★☆☆ Bisalloy Steel Group (ASX:BIS) A$3.30 A$156.59M ★★★★★★ CTI Logistics (ASX:CLX) A$1.84 A$148.2M ★★★★☆☆ Click here to see the full list of 1,006 stocks from our ASX Penny Stocks screener. Let's explore several standout options from the results in the screener. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Cue Energy Resources Limited is an oil and gas company focused on the exploration, development, and production of petroleum products with a market capitalization of A$87.39 million. Operations: The company's revenue is derived entirely from its production and exploration activities for hydrocarbons, amounting to A$47.48 million. Market Cap: A$87.39M Cue Energy Resources, with a market capitalization of A$87.39 million, has seen consistent profitability growth over the past five years. Despite recent negative earnings growth of -46%, its short-term assets comfortably cover short-term liabilities but fall short against long-term obligations. The company remains debt-free, eliminating concerns about debt coverage and interest payments. However, its dividend yield of 8% is not well-supported by earnings. While the board boasts experience with an average tenure of 7.3 years, management's experience level is unclear. Trading significantly below estimated fair value may present potential opportunities for investors considering penny stocks in this sector. Click to explore a detailed breakdown of our findings in Cue Energy Resources' financial health report. Review our historical performance report to gain insights into Cue Energy Resources' track record. Simply Wall St Financial Health Rating: ★★★★★★ Overview: HighCom Limited offers specialized products and tailored solutions to military, law enforcement, government agencies, space, and commercial sectors with a market cap of A$30.80 million. Operations: HighCom generates its revenue across several regions, with A$26.37 million from North America, A$22.12 million from Australia and Asia Pacific, and A$7.47 million from Europe. Market Cap: A$30.8M HighCom Limited, with a market cap of A$30.80 million, has recently achieved profitability, marking a significant milestone in its financial trajectory. The company operates debt-free and maintains high-quality earnings while trading at 91% below estimated fair value, suggesting potential undervaluation. Its short-term assets of A$29.8 million comfortably cover both short-term and long-term liabilities. However, the management team is relatively inexperienced with an average tenure of 1.2 years, which may impact strategic continuity. Recent executive changes include the appointment of Mr. Martyn Dominy as CFO to strengthen financial leadership following his successful role at Quickstep Holdings Limited. Get an in-depth perspective on HighCom's performance by reading our balance sheet health report here. Gain insights into HighCom's future direction by reviewing our growth report. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Hearts and Minds Investments (ASX:HM1) is an investment company that leverages the expertise of leading fund managers to invest in high-conviction ideas, with a market cap of A$686.95 million. Operations: The company generates revenue of A$191.25 million from its investment activities. Market Cap: A$686.95M Hearts and Minds Investments, with a market cap of A$686.95 million, operates debt-free and has demonstrated impressive earnings growth of 466.4% over the past year, outpacing the industry average. The company maintains strong financial health with short-term assets of A$754.4 million exceeding liabilities significantly. Despite its high non-cash earnings and stable weekly volatility, its dividend yield is not well supported by free cash flows, raising sustainability concerns. The management team is relatively new with an average tenure of 1.3 years, which might affect strategic consistency despite having an experienced board to guide them through transitions. Click here and access our complete financial health analysis report to understand the dynamics of Hearts and Minds Investments. Evaluate Hearts and Minds Investments' historical performance by accessing our past performance report. Reveal the 1,006 hidden gems among our ASX Penny Stocks screener with a single click here. Ready To Venture Into Other Investment Styles? Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:CUE ASX:HCL and ASX:HM1. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
