Bullock defends rate cuts & hikes; tax bill passes Reps; US icon signs with Chinese brand
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What is the main topic discussed in this episode?
Welcome to Fear and Greed, business news you can use. Today, Reserve Bank Governor Michelle Bullock defends three rate cuts last year and three rate hikes this year. The local share market takes a tumble as a new iron ore region in Africa takes on the Pilbara Giants and Treasury wine estates share price surges as it overhauls its strategy. Plus, the government's controversial tax legislation passes the House of Reps and NBA superstar Steph Curry signs a mega deal with the Chinese athletic brand. It is Friday, the 5th of June, 2026. I'm Michael Thompson and good morning, Sean Aylmer. Good morning, Michael. Sean, the main story this morning, Reserve Bank Governor Michelle Bullock yesterday told a Senate committee that the recent slowing in the housing market is an early sign that higher interest rates are starting to cool the economy.
What does RBA Governor Michele Bullock say about recent rate cuts and hikes?
Bullock said that the economy is still expected to grow... Something that some market economists have actually questioned since Wednesday's weak GDP figures. Although she did concede that it would be moderate growth if the Middle East war pushes oil prices higher. Growth could be even lower, although the governor called out strong business investment in data centres and renewable projects. as sources of growth, which we did see this week, right?
Exactly. She said government spending in the federal budget was in line with expectations.
How is the local share market reacting to new iron ore developments?
She avoided questions on whether she thought the budget was inflationary. Bullock pushed back on suggestions that companies are engaging in price gouging behaviour or are using the Middle East as an excuse to raise prices. She defended the three rate cuts last year. And then the three rate hikes this year, saying they were the right calls given the circumstances at the time. Adding that the impacts of US tariffs and the AI boom were upside surprises in terms of the global economy. I must say, I hadn't thought much about it until I saw it in Senate estimates yesterday. We had three rate cuts last year, three rate hikes this year. That's actually quite a lot of movement in monetary policy.
It's probably preferred to be a little more steady than that. Yeah, and you're right.
What are the implications of the government's new tax legislation?
And suddenly this has shed an awful lot of light on that. Earlier in the day, yesterday, the head of Treasury, Jenny Wilkinson, was in front of Senate estimates. It's a fair to say she's essentially the equivalent of Michelle Bullock, but in treasury. And as a result, doesn't get as much attention, certainly not as much kind of limelight, I suppose you'd say. Wilkinson said, though, that she expects inflation to keep rising, hitting 5% in the June quarter. She also said there would be no boost to economic growth and productivity from the government's changes to the tax system.
When asked about the capital gains tax and negative gearing changes, she said they can affect supply, but she thinks the bigger impact will be on the share of housing owned by owner occupiers, adding that more work needs to be done to improve the supply of housing. That is the bottom line for our housing market. We need more houses. She went on to say that the tax changes are seeking to address intergenerational equity, and in part, they will boost productivity by supporting innovation. Not sure about that one.
Sean, the S&P ASX 200 tumbled 1.1% yesterday to 8,686 points as local miners fell with BHP, Rio Tinto and Fortescue Metals Group, finishing more than 3% lower. That all came after figures show that iron ore shipments from Guinea's massive Simundu mine soared. Now, Rio owns part of the mine, but iron ore from Guinea is a direct threat to exports from the Pilbara.
Yeah, very interesting, man. Not helping the market yesterday. The Middle East at one point looked like negotiations were progressing.
What economic indicators are affecting growth predictions in Australia?
And then, of course, there's a renewal of fighting. Oil prices eased slightly yesterday. It was another tough day for the banks with the big four all ending lower.
How does Steph Curry's partnership with a Chinese brand impact the sportswear market?
In fact, all of the top 10 stocks in the BORST finished down yesterday. The defensive stocks, or at least some of the defensive stocks, companies like CSL, Woolies, some of the other health care companies did best.
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Chapters
6 chapters
1
What is the main topic discussed in this episode?
0:06–0:55
2
What does RBA Governor Michele Bullock say about recent rate cuts and hikes?
0:55–1:29
3
How is the local share market reacting to new iron ore developments?
1:29–2:17
4
What are the implications of the government's new tax legislation?
2:17–3:58
5
What economic indicators are affecting growth predictions in Australia?
3:58–4:07
6
How does Steph Curry's partnership with a Chinese brand impact the sportswear market?
4:07–16:55
Speakers
2 identifiedMore from FEAR & GREED | Business News
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