Australian shares gained on Thursday, with the main index nearing its record high posted last month. The major banks led the rally, while News Corp shares jumped on the company's latest result.
On Wall Street, shares in Google parent company Alphabet fell on its AI funding pledge, and Nividia was up again as investors moved on from the DeepSeek saga.
Here's how the trading day played out, with insights from our business reporters.
Disclaimer: this blog is not intended as investment advice.
Key Events
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ASX records second consecutive day of gains
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News Corp shares gain on better than expected financial results
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Committee chair tells super funds: do better
Market snapshot
- ASX 200: +1.2% to 8,520 points (live values below)
- Australian dollar: -0.3% at 62.63 US cents
- Wall Street: Dow Jones (+0.7%), S&P 500 (+0.4%), Nasdaq (+0.2%)
- Europe: FTSE (+0.6%), DAX (+0.4%), Stoxx 600 (+0.5%)
- Spot gold: +0.1% to $US2,868/ounce
- Brent crude: +0.1% at $US74.74/barrel
- Iron ore: -1% to $US103.95 a tonne
- Bitcoin: +0.1% to $US97,831
Prices current around 4.42pm AEDT
Bye for now
That's a wrap.
Thanks for reading.
Have a lovely evening and we'll be back on the business blog bright and early tomorrow.
ASX records second consecutive day of gains
The Australian share market gained on Thursday, closing 1.2% higher at 8,520.7 points, but missing its record high of last month.
However, it was the ASX 200's second highest close on record.
ASX 200 Thursday Feb 5 (ASX )
CBA hit a record high before closing at $162.24.
Here are the day's biggest gains and declines:
ASX 200 gains and declines (ASX)
Ten of the 11 sectors closed higher. Energy was the only sector to fall.
ASX 200 sectors at close (ASX )
Australian listed shares of News Corp rose 5.8% to top the benchmark index after the global media giant's second-quarter earnings beat analysts' estimates.
Banks led sectoral gains, ending 2% higher in their biggest daily rise in three weeks.
Consumer discretionary stocks also gained, adding 1.9%.
Wesfarmers closed 3.2% higher after UBS upgraded the conglomerate's stock to "neutral" from "sell" on expectations of strong performance at hardware chain Bunnings.
– with Reuters
News Corp shares gain on better than expected financial results
News Corp is leading the gains on the ASX today, after the media company reported second-quarter results that beat analysts' estimates.
The Murdoch family-owned company's revenue stood at $US2.23 billion in the quarter ($3.6 billion), compared with analysts' average estimate of $US2.17 billion, according to data compiled by LSEG.
News Corp earnings jumped 20 per cent to $US478 million. The financial results don't include the $3.4 billion sale of Foxtel to British sports streaming company DAZN.
News Corp's growth was largely fuelled by its online real estate listings business REA, book publishing and The Wall Street Journal publisher Dow Jones.
Revenue from News Corp's news media unit fell 2% in the quarter. It posted a 2% decline in its advertising revenue, citing a traffic reduction at some mastheads due to "algorithm changes at certain platforms."
Revenue from its book publishing unit, which consists of HarperCollins, rose 8% on higher sales of its physical and digital books.
Dow Jones, which accounts for the largest share of revenue and houses publications such as The Wall Street Journal, Barron's and Market Watch, grew 3% to $U600 million. That was aided by growth in circulation and subscription revenues.
News Corp also published for the first time, the financial results of Sky News Australia, which posted $27 million in revenue in the final three months of last year.
News Corp shares were up 6.2% at around 3.40pm AEDT.
Committee chair tells super funds: do better
The chair of the Senate Economics References Committee, Liberal senator Andrew Bragg, has written to some of the nation's biggest super funds including Cbus and HESTA, as well as their industry lobby group Super Members Council (formerly know as Industry Super Australia), calling on them to do better in answering questions posed by the committee about how they spend their members money.
In response to several questions taken on notice at public hearings at the end of last year, and written questions on notice from the committee Cbus Super chair Wayne Swan, Senator Bragg said in a letter to Mr Swan that "the committee considers that a number of these questions on notice have not been adequately addressed".
"Responses variously redirect to a website or a previous non-substantive answer, rather than the answer being contained within the response itself," Senator Bragg wrote to Mr Swan.
"The committee asks that you address the questions put which have been listed in the attachment to this letter."
"Additionally, you declined to answer some questions, referring to the 'sensitive and confidential' nature of the information without further explanation as to the harm that may come from release of that information.
"Could you please provide further information to support your claims for confidentiality, in order to inform the committee's considerations."
"The committee also asks that the answers are provided by you (Wayne Swan), in your capacity as Chair of Cbus Super, rather than by Cbus Super at an organisational level."
Similar letters were sent to Misha Schubert who heads the Super Members Council, and Sam Riley who is the general manager, media relations and corporate affairs at HESTA.
Senator Bragg has given the funds and lobby group until Wednesday February 19 to answer.
Ms Schubert told ABC News: "We have deep respect for the Senate committee and its work, and accordingly Super Members Council has answered all the Senator's questions in full. We look forward to continuing to engage with the Committee in its work."
Have a story to tell about super? Email Nassim Khadem at [email protected] or [email protected]
How Trump's tariffs on China delivered a 'double-whammy' to Temu and Shein
The US has cracked down on a little-known tax loophole that allows millions of parcels into the country every week from cheap e-commerce retailers, including China's Shein and Temu.
A cost-of-living crisis turbocharged both companies' presence in the US, and Donald Trump's first presidency ironically helped them gain a strong foothold in the country.
But now, the double-whammy of new tariffs (an additional 10% on Chinese imports) and the suspension of a tax loophole will see everyday Americans pay an even higher price.
Since 2015, Americans have been able to buy items from overseas without getting hit with an import tax — so long as the value of the parcel is under $US800 ($1,275).
It operates the same as a duty-free allowance, but it has a more complex-sounding name: the de minimis exemption.
Data released by the US Customs and Border Protection Agency last November illustrated how big of a problem de minimis shipments had become in the country.
In 2024, the agency estimated it processed more than 4 million de minimis shipments into the US on a daily basis — more than double the volume it had processed in 2021 — with Shein and Temu accounting for more than 30 per cent of the total packages.
Business reporter Kate Ainsworth has this feature:
Business conditions steady, confidence improves: in charts
As we reported early, NAB's quarterly business survey shows conditions holding steady in the final quarter of 2024.
Confidence improved but remained negative.
Here's a chart showing how confidence and conditions have been tracking:
(Source: NAB)
In terms of the issues affecting confidence, wage costs topped the list, followed by margin pressure:
(Source: NAB)
Insurers have already received nearly 4,000 claims from North Queensland floods
The Insurance Council of Australia (ICA) has released an update about the claims coming in from severe weather across large parts of North Queensland.
The storms and floods were declared a "significant event" by the ICA on Sunday February 2.
The ICA says more than 3,950 claims have already been submitted over the past seven days, but it is expecting more to come in as some communities remain isolated with many still under threat of damage.
The peak body says representatives from the ICA, Suncorp, RACQ, IAG, Hollard, Allianz, QBE and Youi will be present daily at an insurance hub at Townsville Stadium.
The ICA is urging property owners to lodge claims as soon as possible, even if they don't yet know the full extent of the damage.
However, the ICA's CEO Andrew Hall says people should make sure it's safe to return home before attempting to assess any damage.
"Safety is always top priority so we encourage residents to only return home and begin the clean-up process when it's safe to do so," he said in a statement.
The ICA has also offered advice to home owners who have been able to return to assist their claim:
• Take photos before removing any water damaged or soaked items that may pose a health risk;
• Make a list of damaged items, including the brand, model and serial number if you can;
• Don't throw away items that could be repaired unless they pose a health risk;
• Speak to your insurer before you authorise any building work.
Shares in Beach Energy down
Shares in Beach Energy are down nearly 4 per cent at the moment.
It follows the oil and gas producer reporting its half-year results, with net profit coming in at $222 million, compared to a statutory loss for the same period last year.
Underlying net profit was up 37 per cent in line with forecasts from RBC Capital Markets, which described it as 'neutral' to its view on the stock.
The 3 cents per share interim dividend was above RBC's estimate but below the 4 cps that had been the consensus among analysts.
David Chau will speak with Beach CEO Brett Woods on The Business tonight.
Catch the show on ABC News at 8:45pm AEDT, after the late news on ABC TV, and anytime on ABC iview.
Australia's trade surplus narrows at end of 2024
Australia's surplus on trade goods narrowed sharply in December as a surge in imports of capital equipment outweighed gains in iron ore exports, data showed.
The Australian Bureau of Statistics reported the surplus on goods narrowed to $5.1 billion in December, from a revised $6.8 billion in November, well under market forecasts of $7.0 billion.
Exports rose 1.1% on iron ore and rural goods, while imports jumped 5.9% with capital goods, petroleum and consumption goods all seeing sizeable increases.
Durian export boom provides a boost to SE Asian economies
Hi there, when I saw this report from BMI, a research division of Fitch, I just had to share a post on it.
Unbeknownst to me, there is a global durian boom underway.
For those not familiar with the pungent fruit, it is popular in many parts of South-East Asia and also, apparently, mainland China.
The one time I tried eating durian cake in Singapore, the smell and flavour reminded me of burning rubber. And it isn't just me who finds the odour unpleasant — durians are widely banned from being carried on public transport.
The surge in demand from China has, until now, been met largely by surging Thai exports of the fruit, with that country accounting for almost two-thirds of durian exports globally.
"While Thai exports of fresh durian accounted for, on average, 2.0% of total annual agricultural exports between 2014 and 2018 and 0.2% of total exports in the same period, these proportions rose to 7.8% and 1.1%, respectively, between 2019 and 2023," the BMI report notes.
"In 2023, durian exports from Thailand totaled USD4.1bn, up from the USD243mn in 2013.
"Over the past ten years, Thai durian exports have grown at a compound annual growth rate (CAGR) of 22.8%, and of 8.6% over the past five years."
That's some serious growth. So much so that Vietnam has muscled in on the lucrative durian trade, thanks to export deals with Chinese authorities.
"Vietnamese durian production and exports have experienced a trend of significant growth over the past few years, with a CAGR for exports of 22.8% in the past five years and 64.7% in the past ten years," the report continues.
"The country went from exporting 820 tons worth USD608,000 in 2013 to 307,416 tons in 2023, worth USD2.1bn. According to the Vietnamese Ministry of Agriculture and Rural Development, durian exports brought in USD3.3bn in 2024."
China is driving the durian export boom (BMI)
Malaysia now has a deal with China to export durian there, with Indonesia trying to follow and Chinese investment in Laos.
And if this export boom keeps durians out of my local fruit and veg shop, I'll be very happy!
ASX 200, All Ords on the up
It's a strong session so far for the local share market, with the ASX 200 up 0.9 per cent after the morning's trade.
That has us heading back towards the record high hit on Friday but perhaps unlikely to get there today.
And after the tariff-induced heavy selling of Monday, the benchmark index remains in the red for the week, so tomorrow is set to be the decider for whether we can recoup all the losses.
Here's how the sectors are faring, with the big miners and banks doing some heavy lifting:
Sector heat map (LSEG Refinitiv)
Commonwealth Bank shares are up 1.5 per cent, with NAB (+2%), Westpac (+1.7%) and ANZ (+1.9%) also climbing.
Rio Tinto shares are up 0.6 per cent, and Fortescue is up 1.8 per cent, but BHP has slipped (-0.3%)
Is helping their adult children 'the price baby boomers are paying'?
A UBS survey of 1,000 Australian adults found roughly half had received money from, or given money to, family members in the past year.
The findings show a shift towards helping younger generations with living expenses, with the second most common use for cash from family being mortgage repayments.
The Business spoke to people who have provided assistance to their adult children.
One Sydney father (who asked to keep his real name private, as he didn't want his other children to know) says he's been helping his son with mortgage repayments and even delayed his retirement:
"We could retire now but we want to be in a position to help the kids as much as we can.
"They’re in a different world than it was for us; property is horrendous.
"You look at my generation and think they had it a lot of easier, but I wonder whether we're paying the price now for that by working extra years to be able to provide the financial support for the kids.
"Is that the price baby boomers are paying?"
Reporter Rachel Clayton has more:
Businesses grumpy on wages … hopeful on inflation, interest rate cuts
Australian business is steady as she goes.
The NAB has released its quarterly business survey.
The bank surveys hundreds of businesses to gauge how they're doing and what pressures their facing, as well as how they feel about the future.
"Business conditions held steady in [the final quarter of 2024] as businesses wrapped up a challenging year," the report said.
"There was a slight improvement in business confidence, though confidence remains in negative territory."
It's interesting to note that while the share market was pushing record highs, businesses, both public and private, felt like they were under the pump.
But is that mindset changing? NAB's thinks it could be.
"… expected business conditions in the next 12 months and capex plans in the next 12 months both improved — possibly boosted by the prospect of rate cuts, recovering consumer demand and easing costs growth over 2025."
And that's a key line.
Businesses are hopeful of a bit of a 'goldilocks' environment in 2025 where cost pressures ease and consumer demand ticks up as interest rates ease.
But there's a catch — bosses still view wages as being too high, and there's STILL uncertainty around how many interest rate cuts there will be.
"As with labour costs, purchase cost growth also eased in Q4, to 0.7% q/q ," the NAB said.
"This aligns with a broadening disinflationary pulse in the economy, especially for goods, and was close to firm expectations in the prior quarter (0.6%).
"Expected purchase cost growth for the next three months remained at 0.6% q/q."
But, crucially, businesses do not expect inflation to increase.
"Price growth measures mostly eased in Q4, though overall final product price growth was unchanged at 0.4% q/q."
"Retail prices were at 0.5% q/q, down from 0.7% in the previous survey."
And that's potentially good news for consumers too.
REA Group shares fall after results report, CEO exit news
Shares in REA Group are down more than 1.5 per cent this morning, after it reported its half-yearly earnings.
It also revealed that long-standing boss Owen Wilson would retire later this year, once a new chief executive had been appointed.
Jarden analysts called the exit "somewhat of a surprise", and also noted increased cost guidance by the real estate listings firm, according to Reuters.
Meanwhile, UBS analysts described the results as "overall positive", but said the outlook was a touch softer than expected. It has a 'buy' recommendation on the stock.
E&P analyst Entcho Raykovski said the result was in line with his expectations.
"While Owen [Wilson] is incredibly well-regarded, the strength of the business model will in our view sustain a CEO departure," he wrote in a note.
Despite this morning's dip, REA shares are up 6.5 per cent since the start of 2025.
REA shares over one year (LSEG Refinitiv)
(chart above doesn't include Thursday's move)
Reporting season starting to ramp up
The biannual profit reporting season is always a slow burn, but we are starting to get a more steady flow of company results.
If there are particular companies you are interested in, take a look at this searchable calendar to find out when you'll get an update:
In the meantime, business reporter David Chau has a handy reporting season guide, with insights Ten Cap's Jun Bei Liu, FTSE Russell's Julia Lee and NabTrade's Gemma Dale:
Thanks for your comments on the Bank of Mum and Dad
Being a retired Banker i taught my kids the value of money in there early years even how to invest pocket money I've assisted them in small ways – but gave them choices what to do with there money as young adults – market investing and shares small property investing now they have good portfolios and can afford there lifestyle and i can retire and enjoy my lifestyle
– Allan
Rachel Clayton's story is here to read.
Do you support your children financially? Send Rachel an email today on [email protected]
Star Entertainment's stock dropping again
It's off 4% and is one of the top losers on the ASX 200 right now.
The casino operator's stock is now down a staggering 35% in the last month as its financial woes continue.
It's just a few weeks until it is due to report to the ASX.
Some analysts said it would be lucky to make it to this date at the end of February.
This morning's top and bottom stocks
The top five performers on the ASX 200 right now are:
- News Corp +4.4%
- BWP +4%
- Neuren Pharmaceuticals +3.7
- Vault Minerals +3%
- Codan +2.9%
As for the bottom five performers:
- Beach -4.6
- Star -4%
- Pexa -2.2%
- REA Group -1.3%
- Clarity Pharma -1.2%
Millennial entrepreneurs on the rise, CBA data shows
There is a "surge" in entrepreneurialism, with millennials (born between 1981-1996) and Gen Z (1997-2012) driving the majority of the growth, CBA data shows.
Millennials accounted for nearly half of all new business transaction accounts in 2023, while Gen Z opened a further 14.8 per cent of new accounts, the bank's data shows.
At the same time, the data shows more women are running their own businesses, with 43.2 per cent of new business transaction accounts in 2023 opened by female self-starters.
You can read more here.