Markets live: ASX to drop at open, oil prices rise as Israel continues strikes on Iran
The Australian share market is set to fall when trading begins. Wall Street was closed overnight due to the Juneteenth public holiday.
Meanwhile, oil prices rose 3 per cent as Donald Trump considered a US attack on Iran "within the next two weeks".
Follow the day's financial news and insights from our specialist business reporters on our live blog.
Disclaimer: this blog is not intended as investment advice.
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News.com.au
34 minutes ago
- News.com.au
South Australia shaken by jobs challenges and Premier Peter Malinauskas must be at top of his game
South Australia's foundations are being shaken by global and natural forces, with tempestuous times ahead. In a tumultuous past fortnight, bedrocks of the state economy, employing thousands of people, have been plunged into doubt. Santos, the state's biggest company by far, is the target of an almost $30bn takeover bid by an Abu Dhabi raider, casting great uncertainty over the future of its Adelaide head office. The $368bn nuclear-powered submarine project centred on Adelaide is under threat from a 30-day United States review assessing its alignment with President Donald Trump's America First agenda. Despite some heartening rain, the drought continues to ravage the state's farms – SA primary industries generate $17.1bn annually. State debt was forecast to soar to $48.495bn in the state budget unveiled on June 5, after which the influential S & P Global Ratings warned big new spending ahead of next March's state election could trigger a credit rating downgrade. The purse strings will continue to be tested by the Whyalla steelworks and mine, as the budget set aside $384m in state and federal funds for a potential six-month extension of the state-induced administration. The Malinauskas government might have repeatedly ruled out an ownership stake in Whyalla's steelworks but a $2.4bn state/federal rescue package leaves both on the hook until a new owner is found. Public sector unions are restless. The SA Salaried Medical Officers Association on Thursday rejected a 10 per cent pay rise over three years and recommitted to walking off the job on Wednesday. These are extraordinary and foundational challenges, of varying degrees of concern, to the state economy and, most particularly, the potential for today's aspirational young South Australians to find well-paid, challenging jobs. The risk of Santos's head office leaving Adelaide should not be dismissed lightly. A foreign takeover, as my colleague Giuseppe Tauriello observed on Wednesday, would significantly diminish the last corporate heavyweight left standing in South Australia. Santos dwarfs other SA companies for jobs, investment, sponsorship and general corporate clout. It is four times the size of the state's second biggest firm, Argo Investments, and more than eight times the size of third-ranking Codan. Business success matters in a state where the population is overwhelmingly concentrated in the capital, and most jobs are underpinned by state and federal government spending of some form. Santos and partner Beach Energy in January officially opened a nation-leading Moomba carbon storage project, billed as kickstarting a $600bn industry and hailed by Premier Peter Malinauskas as a 'historic day for our state'. Mr Malinauskas responded to the Santos takeover bid by declaring his government's 'priority at all times is to ensure that South Australian jobs remain in South Australia, and to maintain Santos' headquarters in Adelaide'. This will be a test of his government's mettle and resolve, along with its legislative levers that include ministerial approval for a change in controlling interest of a petroleum resources licence holder, like Santos. Opposition Leader Vincent Tarzia, in his Tuesday budget reply speech, predictably painted a bleak picture of a state ravaged by debt, skyrocketing costs, unaffordable homes and a floundering health care system. Nine months out from the next state election, he vowed to deliver a 'debt management plan' to ensure this was at 'a sustainable level'. Mr Tarzia declared the state was 'at a crossroads'. He was right, although the future is always uncertain. Mr Malinauskas has a strong story to tell on economic confidence, a historically low jobless rate and the state's standing in the nation. But he will be justifiably wary of overconfidence ahead of the state election, even if his opponents are at a historically low ebb in their standing. The state is facing some serious challenges and the Premier will need to be at the top of his game.
Perth Now
42 minutes ago
- Perth Now
Australian shares dip as Trump floats Iran deadline
The Australian share market is trading lower as Middle East strive continues and amid Donald Trump's two-week window to decide whether the US will join Israel's conflict with Iran. The S&P/ASX200 fell 56.2 points, or 0.67 per cent, to 8,466.9, as the broader All Ordinaries slipped 53.9 points, or 0.62 per cent, to 8,687.5. The slump came as the Middle East conflict weighed on investor sentiment and as thin trading conditions due to a US bank holiday sent European equities and US futures lower, market analyst Kyle Rodda said. All signs pointed to a weak finish for the ASX this week. "Like last week where hostilities were boiling over, market participants may be reluctant to hold onto risk exposure over the weekend when a historic US strike on Iran nuclear facilities is an uncomfortably high possibility," Mr Rodda said. Only two of 11 local sectors were trading higher by lunchtime, with both energy and IT stocks up 0.2 per cent. Financials weighed heavily on the bourse, down 1.3 per cent and wiping out Thursday's gains as the big four each lost between 1.2 per cent and 2.2 per cent. The slip came as expectations for a Reserve Bank interest rate cut in July fell from 86 per cent to 78 per cent. Likewise, rate-sensitive consumer-facing stocks were the next worst performing sectors, with discretionaries down 0.9 per cent and staples sinking 0.7 per cent. As attacks in Israel and Iran escalated overnight, oil prices spiked almost three per cent to $US77.50 a barrel, their highest level since January, before settling $US75.83 a barrel after Trump's deadline eased fears of an imminent US attack. Woodside was up a modest 0.5 per cent to $25.77 a share by midday. Materials stocks edged 0.1 per cent lower, as iron ore prices edged higher to take some pressure off large cap miners BHP, Rio Tinto and Fortescue. Gold continues to consolidate tightly to trade at around $US3,380 ($A5,125) an ounce. Australian gold miners were mixed, but larger players Northern Star and Newmont edged higher, while Evolution slipped 0.2 per cent days after multiple UBS downgrades indicated the sector's easy gains could be behind it. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm.
ABC News
an hour ago
- ABC News
Trial finds age assurance can be done, as under-16s social media ban deadline looms
The organisation contracted by the government to assess technologies that could be used to implement the social media ban for under-16s says options exist to verify the age of users privately, robustly and effectively. Australia's world-leading laws to stop children and teenagers accessing some social media platforms are due to come into force in December, after the legislation passed parliament with bipartisan support late last year. A 12-month buffer was built into the legislation to allow time for the e-Safety commissioner to figure out how to implement the ban, with consultations to begin next week, and the Age Assurance Technology Trial to be completed. The Age Check Certification Scheme and software consultancy firm KJR were commissioned by the government last year to lead the testing and released their preliminary report on Friday, which offered a snapshot of "broad patterns and trends". Companies that offer age assurance technology voluntarily put themselves forward for the trial, with interviews and testing then conducted on selected methods. But the two-page preliminary report does not include details of what tests have been undertaken or the results of individual methods and technologies. "The preliminary findings indicate that there are no significant technological barriers preventing the deployment of effective age assurance systems," project director Tony Allen said. "These solutions are technically feasible, can be integrated flexibly into existing services and can support the safety and rights of children online." The government is not treating the trial as a test of whether the social media ban can be implemented, nor a process to identify a single product or method to be imposed on tech companies to meet their obligations under the new laws. The full results are expected to be handed to the communications minister by the end of next month, then made public later this year, but some experts have already raised concerns. Earlier this week, ABC News revealed that face-scanning technology tested on school students as part of the trial this year could only guess their age within an 18-month range in 85 per cent of cases. "I don't think the ban is viable," RMIT professor Lisa Given, who closely analysed the government's policy, told ABC News. The preliminary report also found "concerning evidence" that, in the absence of specific guidance from government, some social media companies were "over-anticipating the eventual needs of regulators" about information that might be required for future investigations. This included some providers that were found to be building tools to allow law enforcement agencies and regulators to retrace steps of verification, "which could lead to increased risk of privacy breaches due to unnecessary and disproportionate collection and retention of data". The age assurance trial was initially conceived to assess the viability of technology to prevent children from accessing pornography online and has considered a range of methods. It found there was no "one-size-fits-all" technology and that platforms would have to determine which one best suited their needs. Under the ban, anyone under the age of 16 will be blocked from using platforms including TikTok, Instagram, Snapchat and Facebook, a move the government and the Coalition argue is necessary to protect children and teenagers' mental health and wellbeing. While the ban only applies to young people, it will likely also require adults to verify their ages with social media providers. Tech giants will face fines of up to $50 million if they fail to take "reasonable steps" to keep children and teens off their platforms. There are no penalties for parents of young people who subvert the ban. Since the ban was announced, questions have been raised over whether existing technology could adequately police social media user ages, with the government yet to reveal how it will work in practice. It does not have to adopt any findings from the trial, which has been running for about eight months, while the laws prevent social media companies from forcing users to hand over their government IDs. Shadow communications minister Melissa McIntosh said the "time is ticking" for the government to implement the ban, which was first lobbied for by the Coalition. "We are six months away from the age limit commencing and social media companies need clarity now around what requirements must be put in place to protect our children," she said. "The government must get this right. No more young lives can be lost or families destroyed because of the toxicity of social media." A spokesperson for Communications Minister Anika Wells, who took over the portfolio from Michelle Rowland after the election, said the final findings of the trial would be provided to the eSafety Commissioner to inform her implementation of the laws. "The government will be guided by advice from the eSafety Commissioner on the implementation of the law," the statement read. "We know that social media age restrictions will not be the be-all and end-all solution for harms experienced by young people online, but it's a step in the right direction to keep our kids safer." An eSafety spokesperson welcomed the early findings and said the trial results would be just one input as they worked out how to implement the social media age restrictions. "We are pleased to see the trial suggests that age assurance technologies, when deployed the right way and likely in conjunction with other techniques and methods, can be private, robust and effective," they said.
