Diversified miner South32 will sell the bulk of its aluminium and alumina assets to Alcoa for nearly $10 billion. The announcement surprised investors, particularly because the division accounts for almost 40 per cent of its earnings.
South32 was spun out of BHP a little over a decade ago and wants to focus on copper – a commodity at the heart of the AI and technology boom.
It is a complex bid. There is cash up front, as well as scrip, which South32 will distribute to shareholders. There is a vendor finance element, a break fee and a reverse break fee. Just to cap it off, it was done by CEO Graham Kerr who officially finished at South32 on Tuesday.
Yesterday South32’s share price jumped ten per cent, and Alcoa was down seven per cent.
House prices are going backwards in Sydney, Melbourne and Brisbane, flatlined in Adelaide, and in the boom cities of Perth and Brisbane growth has slowed significantly, according to Cotality.
City
Month %
Year %
Median value $
Sydney
-1.2
0.3
1,265,608
Melbourne
-1.0
-0.9
808,486
Brisbane
0.3
17.4
1,118,306
Adelaide
0.0
11.6
945,868
Perth
0.7
23.9
1,046,551
Hobart
0.6
9.3
752,760
Darwin
1.4
19.8
638,187
Canberra
-0.6
2.9
885,254
National
-0.4
7.3
937,722
Source: Cotality
Fear & Greed Q+A today
On the drivers of another strong year for super funds, and what investors should consider for the next 12 months:
“We've had some very strong returns from equity markets, but at the same time it's been against a backdrop of two conflicts, an energy spike and a number of ongoing issues which have caused disruption, whether it's to supply chains or policy uncertainty.
There's a long list of things that could have upset markets and yet we're looking at returns for an awful lot of superannuation members which will be double digit, which is a great result.
The primary drivers have been in equity markets. Global equities have performed very strongly, a lot of that driven out of the United States, but you've also seen very strong performance from markets like Japan and emerging markets, particularly South Korea, Taiwan and China.”
House prices across the country fell during June, dropping 0.4 per cent, the biggest monthly fall since 2022, according to Cotality data. Revised figures for April and May show that the national average has been dropping for three months.
The ASX200 opened the new financial year lower, as falls in banks and consumer staples stocks offset gains in materials. By the close, the S&P/ASX200 was down 0.6 per cent to 8723 points.
Prime Minister Anthony Albanese said criminal charges laid against two men, including an Ernst & Young graduate seconded to the Commonwealth Bank, were appropriate after they allegedly accessed his confidential banking details.
The competition watchdog has knocked back an application by Coles to expand in Kalgoorlie saying if it goes ahead, an individual operator will likely have to close, and that would lessen competition in the district.
US President Donald Trump made more than $US1bn last year from business dealings in cryptocurrency, according to his mandatory financial report for 2025. Of that, $US635m was in royalties from a Trump meme coin that has plunged in value since he launched it days before taking office.
Fear-o-meter
AMP Chief Economist Shane Oliver on house prices:
Cotality data shows national average home prices fell 0.4% in June, with capital city prices down 0.6%, their third monthly fall in a row. Prices have now fallen 3.7% in Sydney and Melbourne from their recent highs. The boom time cities of Brisbane, Adelaide and Perth are also seeing much slower growth, with Adelaide stalling and Brisbane slowing to a crawl. Both look likely to go negative soon.
The broad picture is one of an accelerating weakening in the property market since late last year reflecting a combination of rate hikes, the Budget tax hikes on investors, poor affordability and depressed buyer confidence. Working the other way, the boost from the expansion of the 5% low deposit scheme for first home buyers is showing up in relatively stronger conditions in lower quartile property prices and in units. They are also benefitting in a relative sense from poor affordability pushing buyers into lower price points.
So far the property downturn has taken price growth and auction clearance rates to around the low end of the range they have been in for the last 20 years so it looks like just another cyclical correction after a strong period. But there’s a way to go yet!
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