Myer has plunged to a $276 million annual loss as higher interest rates, weak consumer confidence and relentless discounting make life increasingly difficult for Australian retailers.

Almost $280 million of write-downs drove the headline loss, while underlying earnings fell 7 per cent and like-for-like sales grew just 0.7 per cent. The new financial year hasn’t started well either, with total sales down 2.7 per cent over the first eight weeks.

There are signs CEO Olivia Wirth’s turnaround is gaining traction. Women’s fashion returned to growth for the first time since 2017, Myer One has a record 5.3 million active members, and September trading improved. Investors liked enough of what they saw to push Myer shares higher.

But the broader environment is getting tougher. Cue has collapsed, KMD Brands has reported a loss exceeding $300 million, and retailers are discounting heavily to keep customers spending. With further rate rises possible, Black Friday and Christmas are becoming even more important - so much so that Myer is effectively starting Christmas next week.

Listen to today's episode 🎧 

Greed-o-meter

Nvidia may still be the poster child for the AI boom, but investors are putting a much lower price on its future growth. Bloomberg reports the chipmaker now trades at less than 17 times expected earnings - about half its valuation in 2025, and a long way below the 50-plus multiples seen in 2023. That’s despite analysts expecting Nvidia’s earnings to double this year.

Fear & Greed Q+A today

Accounting firms are embracing AI for everything from research and data analysis to client communications and compliance. But adoption brings new risks as well as opportunities. At Class Ignite 2026, some of the big issues included:

• The productivity gap: adopting AI doesn't automatically mean firms are capturing the promised efficiency gains.
• 'Shadow AI': staff using unapproved tools can create serious risks around confidential client information.
• AI can be confidently wrong: a challenge in accounting, tax and compliance, where accuracy is critical.
• Practical applications are growing: Newhaven Group, for instance, has used AI to analyse staff queries, identify weaknesses in processes and improve data collection.

Recorded live at Class Ignite 2026, Sean Aylmer speaks with HUB24's Jason Entwistle and Dr Evan Morrison, and Jayson Nooy from Newhaven Group, about where AI is delivering real value - and where the risks remain.

News in brief

Higher rates hit budget: Treasurer Jim Chalmers says surging bond yields will add billions of dollars to government borrowing costs. Australia’s 10-year yield has climbed to around 5.3 per cent, with RBC estimating higher yields since May could add $6 billion to deficits over four years.

Australia and US clash over tech rules: Washington says Australia’s proposed digital duty-of-care regime risks censorship and could unfairly burden American tech companies. Anthony Albanese says the rules are about giving users greater control, while Donald Trump has rejected global AI oversight as a “globalist scheme”.

Housing supply warning grows: Australia’s biggest builders increased housing starts 9 per cent last financial year, but new-home sales have since fallen sharply. Mirvac warns supply could “fall off a cliff” within six months as higher rates, weaker demand and expensive finance make projects harder to stack up.

Melbourne man accused of ISIS propaganda role: A 65-year-old Melbourne man has been arrested over allegations he operated as an online ISIS propagandist. The AFP alleges he pledged allegiance to the terrorist organisation and distributed around 10,000 extremist files between 2018 and 2020.

US and Iran return to talks: Senior US and Iranian officials have held direct talks on the sidelines of the UN General Assembly, despite Donald Trump threatening Iran with “obliteration” if it refuses US terms. Trump said further discussions were expected in the near future.

Pacific storms disrupt lives and trade: Hurricane Polo has become a Category 5 storm near Mexico, part of a destructive run of Pacific storms blamed on El Niño. More than 230 people have died across the region since April, while severe weather is also disrupting major Asian ports and global shipping.

Fear-o-meter

Why AI is making experience less of a barrier to success:

Research from hybrid working organisations International Workplace Group shows that senior business executives believe AI is reshaping the traditional path to leadership, with experience becoming less of a barrier to advancement.

The findings suggest leadership potential is increasingly being judged on capability and adaptability rather than tenure, as AI democratises access to knowledge and expertise.

Senior leaders see Gen Z's digital fluency as a competitive advantage, with many saying younger employees are reaching leadership positions earlier than previous generations.

Key findings include:

• 82% of senior leaders say AI is fast-tracking younger leaders

• 92% would appoint a Gen Z candidate to a senior leadership role

• 80% of young leaders say AI gives them knowledge they’d previously have needed years of experience to gain

• 70% of Australian Gen Zs now use AI in their day-to-day work

Forwarded from a friend? Sign up to our daily newsletter