Good morning. Spotify wrapped is here..... 7 months early!

Spotify is celebrating its 20th anniversary by giving listeners a fully personalised look at their entire music history.

Will it be as popular as the annual version? Spotify crashed on day one of the release so the answer might already be known.

All the headlines and more below...

HALF OF AUSTRALIA'S FOOD SUPPLIERS JUST SAW COSTS JUMP 10% OR MORE IN SIX MONTHS.

Almost half of supermarket suppliers reported operating costs rising by at least 10% since the Middle East conflict began. 1 in 5 reported increases above 20%. The Australian Food and Grocery Council surveyed members and found price increases hitting everything from fuel to resin (used in plastic packaging).

Supermarkets will resist passing those increases on quickly, but they'll have to. At Coles, food prices are forecast to grow by more than 2% per quarter from July, up from 1-2% previously. Woolworths has seen prices decline in real terms since November, but that reverses by month's end.

On Thursday, the Federal Court hands down judgment in a case where the ACCC accused Coles of misleading shoppers on supposed price drops that were actually increases. Woolworths faces the same allegation later.

Suppliers can absorb the hit, shrink the product or ask for more. Most have run out of room to do the first two.

AUSTRALIAN NEWS

• The government’s housing tax reforms will initially cut an estimated 35,000 new homes over the next decade before a delayed US$2B infrastructure spend helps enable about 65,000 additional dwellings. LINK

• Australian consumers are set to face higher grocery bills as an AFGC survey shows almost half of supermarket suppliers have operating costs up at least 10% since the Middle East conflict. LINK

• Economists warn the federal budget has locked in structurally higher spending and deficits, keeping inflation pressures elevated and increasing the risk of further RBA interest rate hikes for mortgage holders. LINK

• Australian workers have seen nominal wages rise 3.3% over the year to March while inflation at 4.6% has delivered a second straight quarter of falling real wages. LINK

• The government has forecast a $5.4B fall in excise and customs duties by 2029-30 as collapsing tobacco excise receipts, driven by a $6B illicit market, outpace modest beer and spirits gains. LINK

• Australians have continued buying large utility vehicles in March and April despite fuel prices peaking at 319c diesel and 224.5c petrol while EV market share has risen to 16%. LINK

BANKS LOSE $67B IN MARKET VALUE AS NEGATIVE GEARING RULES THREATEN CREDIT GROWTH.

The federal government expects to pull $10.5B from the big banks by 2030 through a levy that charges 0.06% annually on their liabilities. Treasury has already collected $1.76B since 2017. The take is expected to hit $2.3B a year by 2029-30.

From July 2027, negative gearing will only apply to new builds. Citi says this creates "downside risk to mortgage credit" and may push Australians to pour more into their own homes instead, where capital gains are tax-free. Macquarie warns any slowdown in housing could see bank stocks underperform.

Commonwealth Bank dropped 10.4% after posting a 1% profit fall to $2.7B and warning that arrears and bad loans are back at pandemic-era levels. Westpac fell 2.8%, ANZ 1.6%, NAB 1.5%.

COMPANY NEWS

• WiseTech Global is facing rising staff anger as it delays decisions on 2000 AI-linked redundancies while losing a DSV CargoWise contract worth about US$150M annually. LINK

• CBA and other major bank shares have fallen after the federal government moved to scrap negative gearing for existing properties, as analysts warn housing credit growth could drop 25%. LINK

• The federal budget has increased ABC funding to $1.3B and SBS funding to $367.3M for 2026-27, with both broadcasters’ staffing levels changing only modestly. LINK

• The High Court unanimously dismissed Zip Co’s appeal in Firstmac’s trademark case, requiring Zip Co to stop using the “Zip” name in Australia within 28 days. LINK

• Aristocrat reported a 9.1% rise in half-year net profit to $794M as EBITDA increased 5.6% to $1.31B and it expanded its share buyback by $1B. LINK

• Instructure, the parent of online learning platform Canvas, reached an agreement with hackers who stole 3.65 terabytes of data from 275 million users across 8,809 institutions and demanded a US$13M ransom. LINK

• Temple & Webster raised prices and cut promotions after weak consumer confidence, as its FY26 EBITDA guidance of $20M-$22M and revenue of $665M-$675M miss consensus by 30% and 6%. LINK

• AWS's new Australia and NZ managing director Chris Casey has backed the tech giant's planned US$20B local AI infrastructure spend as clients continue ramping up AI investment. LINK 

CHART OF THE DAY

Which AI skills are most in demand

ONE MORE SCROLL

Editor’s Pick: This air conditioning strategy is the sweet spot for saving energy and money.

Draft Pick: Ivan Cleary to step down as Penrith Panthers coach after 2027 season.

Odd Pick: Always eat these 7 fruits and veggies with the skin on.

BRAINTEASER

Anderson offered me 40% of $75. Bruno offered me 75% of $40. Who’s making me the better offer?

A. Anderson
B. Bruno
C. Both the same

Answer below

OUR SOCIALS

ANSWER

C: Both the same

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