FEAR & GREED | Business News Q+A: The Week Ahead | 8 Dec 2025
Dec 7, 2025
Stephen Koukoulas, a macroeconomic analyst nicknamed 'The Kook', joins to dissect crucial economic indicators. He dives into the latest GDP figures, highlighting a surge in household spending and solid investment trends. Koukoulas explains how the wealth effect is fueling discretionary purchases like cars and furnishings. He also discusses why global bond yields have risen, the potential for RBA rate hikes, and the impact of upcoming US Federal Reserve decisions on the economy. Tune in for insights on navigating financial headwinds!
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Growth Driven By Investment Not Just Numbers
- The September-quarter GDP showed healthier composition with rising business investment and dwelling construction.
- Stephen Koukoulas says this mix is more important than the headline and signals a genuine turning point in the economy.
Wealth Effect Fuels Discretionary Spending
- Rising household wealth (houses, super) often reduces saving and boosts discretionary spending.
- Koukoulas notes this wealth effect mainly lifts car and furniture purchases, matching recent spending data.
Japan's Yield Rise Ripples Through Markets
- Global bond moves, especially Japan's higher yields, pushed up yields elsewhere as investors prefer higher local returns.
- Koukoulas says Japan's yield rise drained global capital and influenced Australian 10-year yields to jump toward 4.7%.