The housing policies proposed by Australia’s Liberal and Labor parties may exacerbate the existing supply-demand imbalance, leading to higher property prices.
Trump’s administration continues to induce market uncertainty with ambitious trade negotiations that could complicate economic relations and stability, especially for Australia.
Deep dives
Housing Policy Disappointment
Recent housing policies proposed by both the Liberal and Labor parties in Australia have faced criticism for being insufficient to address the housing crisis. While the Liberal party suggested tax deductions on mortgage interest for first home buyers, aiming to save them up to $60,000, Labor put forward a $10 billion investment to build 100,000 new homes for first-time buyers. However, economists have pointed out that these measures do not fundamentally alter the supply-demand imbalance in the housing market. Critics argue that rather than alleviating the issue, these policies may lead to increased competition among buyers and consequently higher property prices.
Impact of Trump's Trade Decisions
The ongoing trade tensions under Trump's administration continue to create uncertainty in global markets. A pause on tariffs for certain products has led to a perception of stability, yet concerns linger about Trump's ambitious plan to finalize numerous trade deals within a tight 90-day window. Many analysts question the feasibility of negotiating such a multitude of complex agreements in such a short timeframe, suggesting that this will prolong uncertainty rather than resolve it. Furthermore, the focus on China within these negotiations raises red flags for countries like Australia that rely heavily on Chinese exports, potentially leading to a precarious economic situation.
Emerging Trends in Corporate Governance
Recent corporate governance trends in Australia indicate a growing complexity in appointing new CEOs and an increase in executive chairs taking more control over management decisions. Numerous companies are experiencing delays in identifying suitable candidates for CEO positions, prompting a challenge to traditional governance structures. This trend is being exacerbated by a rise in executive chairs, which may lead to potential issues in accountability and oversight if not checked. The implications of these changes could threaten the long-term performance and stability of companies, making it a crucial area for stakeholders to monitor closely.
Gold's Resurgence in the Market
The commodity of gold has seen a resurgence in popularity, driven by market volatility and investor fears regarding inflation and economic instability. Gold prices have risen significantly, reflecting heightened demand as investors seek safe-haven assets amidst uncertain market conditions. This boom has also benefited gold mining companies, propelling them to the forefront of the ASX, with many miners ranking among the top performers. However, experts caution that such spikes in commodity prices often signal a potential market correction, emphasizing the need for caution among investors chasing the gold rush.
This week on the Chanticleer podcast, James & Anthony look at what comes next in the great Trump saga, pick out the five corporate trends shaping business in 2025 and discuss why Labor and Liberal’s housing policies landed like a brick.
