🗞️ January Monthly Wrap

Good morning. The first month of the year is well and truly behind us, with Melbourne once again taking centre stage for a successful Australian Open.

If you’ve missed a few news days—or you spent January skiing in the Alps—we’ve rounded up the top stories that caught the attention of Australian corporates this month. We've also covered the arrival of DeepSeek, Donald Trump's eventful start to the year, and the latest inflation data.

All the headlines and more below...

JANUARY IN THREE

1. The Return

Donald Trump has been on a mission. Whether you love him or hate him, he has been getting through his to-do list like it’s the day before his annual performance review. Trump has unleashed a flood of initiatives ranging from controversial rollbacks of Biden-era policies on diversity and sustainability, to bold moves like rescinding birthright citizenship protections and renaming the Gulf of Mexico.

To understand Trump’s second term is to see a leader unmoored from traditional political constraints. Freed from re-election pressures and empowered by a Supreme Court tilted in his favour, Trump is shaping policy with single-minded ferocity. He may well have stoked one too many fires with significant tariff propositions which could have huge ramifications inside and outside of America, however we are yet to see how that all unfolds.

Many of his actions, like exiting the Paris Climate Accord and reversing federal gender identity protections, deliver on previous promises while upending progressive gains. Meanwhile, his rhetoric remains vintage Trump: populist, combative and headline-grabbing. Whether it’s polarising remarks in the wake of a tragic aviation accident or a surprise casino appearance in Las Vegas, Trump’s flair for stunts and controversy continues to dominate headlines for better or worse.

2. Inflation

Despite the feeling that everything is increasing so much in price that your daily coffee might just hit $10 next month, the stats tell a different story. Australia’s annual inflation rate has dipped to 2.4%—a significant improvement from its 2.8% reading in the previous quarter. This trend was driven by a dramatic decline in electricity prices (-25.2%) and fuel costs (-7.9%), thanks in part to government subsidies like energy rebates.

Behind these numbers lies a shift that could impact everything from household budgets to national politics. The trimmed mean inflation, which is the median inflation removing outliers (and a nice term to drop into conversation to sound smart) pulled back to 3.2%, marking its slowest pace in 3 years. This puts significant emphasis for the RBA on the 18th February rate cut decision; should it cut interest rates to stimulate the slowing economy, or hold steady to avoid reigniting inflationary pressures?

For consumers, a softening in household costs could help stretch budgets further, allowing a move back from the world of home brands to Kellogs, Arnotts and Quilton. For policymakers, the latest data offers a sense of progress on taming inflation without triggering recessionary tailwinds—the elusive “soft landing” they’ve been aiming for.

3. Healthy competition

American big tech, and Nvidia in particular, had been flying along with seemingly limited competition in sight. However, DeepSeek managed to create more than your average flight turbulence with Nvidia recording the largest market cap loss in US history, with $600B wiped off in a single day.

DeepSeek, a relatively unknown Chinese startup, has developed an AI model that rivals OpenAI’s GPT-4 at a fraction of the cost. While US companies have spent anywhere from $100M to $1B per model, DeepSeek claims to have trained its AI for just US$5.6M. If true, this isn’t just an efficiency breakthrough—it’s a fundamental shift in AI economics.

But DeepSeek’s rise hasn’t come without controversy. Cybersecurity firm Wiz found over a million lines of DeepSeek’s sensitive data exposed online, including software keys and user chat logs. Meanwhile, US officials are investigating whether DeepSeek used AI distillation, a technique that allows smaller models to learn from more advanced ones. If DeepSeek leveraged US-built AI models in this way, it could spark new restrictions on China’s access to AI technology.

WHAT DID CORPORATE AUSTRALIA CARE ABOUT IN NOVEMBER?

 
🇦🇺 Top Australian News

1. The tax-free superannuation cap will increase to $2M from July 1 due to high inflation. LINK

2. Victoria's rental market has lost 20,000 properties over 18 months due to higher interest rates, new standards and taxes. LINK

3. Inner Sydney and Melbourne rental markets showed rare declines of up to 7% due to shifting migration patterns. LINK

4. The total cost of private schooling in Sydney has reached $411,108 over 13 years, sitting 17% above the national average according to the Cost of Education Index. LINK

5. Australian investment bankers forecast an 11% fee increase for FY25 as private equity activity drives deal momentum. LINK

 
💼 Top Company News

1. Dick Smith has criticised Meta for allowing AI-generated scam advertisements using public figures' images. LINK

2. Wendy's is re-entering Australia after 40 years to challenge McDonald's and Guzman y Gomez in the fast-food market. LINK

3. Amazon is ending several diversity and inclusion programs as detailed in a December employee memo, whilst maintaining its commitment to workplace equity. LINK

4. CBA partners with AWS to launch AI business agent and expand cloud services. LINK

5. Qantas will update its staff uniforms for the first time since 2013 as part of its brand transformation. LINK

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