🗞️ NAPLAN, Maccas and Fitbit x Peloton

Good morning. CBA released their annual performance yesterday and performed like...CBA. Here is a quick summary of their strong performance:

• Shareholders received a record $7.7 billion in dividends on the back of a $9.8 billion cash profit.

• Profit was actually down 2% on the previous year but critically ahead of market expectations.

• CBA’s net interest margin – a core driver of revenue – defied expectations by holding steady over the second half at 1.99%.

Like your conservative parents who are still saving for a rainy day, CBA warned of tougher times ahead saying they are carrying $2.2 billion of extra provisions. In other words: no, your mortgage rate is not coming down.

All the headlines and more below...

AUSTRALIAN NEWS

Girls outperform boys in every NAPLAN domain except numeracy

• Boys' academic performance in Australia significantly declines when they enter high school, with nearly half falling behind the national benchmark in writing, grammar and punctuation by Year 9. LINK

• NAPLAN results reveal that 1 in 3 Australian pupils failed to meet baseline literacy and numeracy standards, with a persistent gap between the performance of rich and poor children. LINK

• Real wages in Australia have fallen to near 14-year lows, with consumer prices rising 2% over 6 months while wages grew only 1.7%. LINK

• A global study led by Australian psychiatrists found a 50% increase in mental ill-health among young Aussies over the past 15 years. LINK

• Free-to-air television networks in Australia saw a dramatic $250M drop in advertising revenue for FY24, with metro free-to-air TV ad revenue down 12%. LINK

• Brisbane's office market is thriving, bucking the national trend of rising vacancy rates. LINK

CHART OF THE DAY

Australian Universities Rely Heavily on International Students

GLOBAL NEWS

Can free rent revive downtown San Francisco?

• San Francisco is offering free rent to revitalise its downtown, which currently has one of the bleakest office markets in the US. LINK

• Japanese Prime Minister Fumio Kishida announced his resignation amid political scandals, ending a 3-year term and paving the way for a new leader to address rising prices. LINK

• New Zealand's central bank cut interest rates to 5.25%, marking a rapid shift to easing as the economy slows. LINK

• AI-enabled PCs accounted for 14% of all PC shipments in Q2, with Apple leading the market. LINK

• UK inflation rose less than expected in July, raising hopes for a loosening of interest rates. LINK

COMPANY NEWS

McDonald's France jokes about scrapping curry sauce after basketball loss to US

• McDonald's France joked about removing curry sauce from its menus in response to US basketball player Stephen Curry’s performance that denied France gold at the Paris Games. LINK

• Seven West Media will halt its share buyback and pause dividends after reporting a 69% drop in full-year profits to $45.3M, amid a slump in advertising revenue. LINK

• CBA posted a $9.83B profit and issuing a record dividend. LINK

• ASIC has accused the ASX of misleading investors about its CHESS replacement project progress, with potential fines exceeding $500M. LINK

• Google unveiled new Pixel smartphones with enhanced AI features, including a tool for searching information in screenshots and the ability to use its chatbot Gemini across other apps. LINK

• UBS reported a net profit of $1.14B for Q2, surpassing expectations. LINK

• The US Department of Justice is considering breaking up Google following a ruling that it illegally monopolised the online search market. LINK

• Google’s Fitbit has partnered with Peloton to provide its premium users access to Peloton's fitness content from September. LINK

• APRA has ordered Cbus and BUSSQ, two building industry super funds with CFMEU ties, to undergo an independent reviews. LINK

• AGL Energy reported a tripling of its annual profit to $812M, driven by strong coal generation. LINK

• Telstra and Optus have delayed the shutdown of their 3G networks until at least October 28, following concerns that thousands could be unable to reach emergency services. LINK

• Pro Medicus shares surged despite its CEO warning that its 30% annual profit growth will be difficult to maintain. LINK

BRAINTEASER

It’s Game Time

How is your brain capacity this morning? How quickly can you solve the brainteaser below?

Three men – Arthur, Bobby and Darren – are suspects in a crime investigation. Only one man is guilty.

When they are questioned, they give the following statements:

• Darren: “Bobby is guilty.”

• Bobby: “I am not guilty.”

• Arthur: “I am not guilty.”

However, only one of the three men is telling the truth; the other two are lying. Which one of the following statements must be true?

A) Darren is guilty.
B) Bobby is lying.
C) Arthur is not guilty.
D) Darren is lying.

Answer below

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ANSWER

B) Bobby is lying.