Jonathan Barrett

Profit plunges at Star as gamblers stay away

Star Entertainment has warned it is facing “significant near-term liquidity requirements” after disclosing a 71% drop in net profit in financial results lodged today.

The delayed release of its financial year books comes a day after the Australian casino owner told shareholders it had secured a $200m debt facility to help it to continue trading.

Its shares have been suspended since the start of the month over viability concerns.

Star operates casinos in Sydney, the Gold Coast and the newly opened Brisbane casino, Queen’s Wharf, which suffered a massive cost blowout at the same time as gambling tourism fell.

The weak conditions have continued into the new financial year, with Star disclosing in its results it has recorded an earnings loss of $7.7m in July and August.

Last financial year, it posted an underlying net profit result of $12m, down 71%. After taking into account impairment charges, linked to regulatory changes that are forecast to weigh on profits, its result plunged to a $1.69bn loss.

The casino group is in discussions with state governments to renew casino licences in NSW and Queensland, while it also grapples with demands from gambling and financial crime regulatorsthat could result in significant fines, adding more financial pressure.

The National Anti-Corruption Commission inspector has confirmed she is conducting an investigation into the decision by the commission not to investigate the referrals from the robodebt royal commission.

After receiving “many inquiries … from the media and the public”, the inspector said in a statement:

Between June and August 2024, Nacc provided the inspector with documents the Inspector had requested. On 3 September 2024, the Inspector asked the National Anti-Corruption Commission to provide submissions on a range of specified matters.

The National Anti-Corruption Commission has advised that it anticipates that it will provide those submissions by 21 October 2024.

The inspector will prepare a report upon completion of the investigation.

Australia part of joint statement calling for Lebanon ceasefire

Daniel Hurst

Australia has signed on to a joint statement about Lebanon.

The statement – which was also signed by the United States, Canada, the European Union, France, Germany, Italy, Japan, Saudi Arabia, the United Arab Emirates, the United Kingdom and Qatar – says:

The situation between Lebanon and Israel since October 8th, 2023 is intolerable and presents an unacceptable risk of a broader regional escalation. This is in nobody’s interest, neither of the people of Israel nor of the people of Lebanon.

It is time to conclude a diplomatic settlement that enables civilians on both sides of the border to return to their homes in safety.

Diplomacy however cannot succeed amid an escalation of this conflict.

Thus we call for an immediate 21 day ceasefire across the Lebanon-Israel border to provide space for diplomacy towards the conclusion of a diplomatic settlement consistent with [UN security council resolution] 1701, and the implementation of [UN security council resolution] 2735 regarding a ceasefire in Gaza.

We call on all parties, including the Governments of Israel and Lebanon, to endorse the temporary ceasefire immediately consistent with [UN security council resolution] 1701 during this period, and to give a real chance to a diplomatic settlement.

We are then prepared to fully support all diplomatic efforts to conclude an agreement between Lebanon and Israel within this period, building on efforts over the last months, that ends this crisis altogether.

Former prime minister Kevin Rudd is “doing a good job” working with officials who might be in the Trump administration, Hockey told the National Press Club:

I was hoping to get through the National Press Club without mentioning his name, but Kevin Rudd is doing a pretty good job.

He’s doing a good job, actually, and he has worked over the Republicans that will be influential with Trump. But in my view, it doesn’t matter where you’re Liberal, Labor, Green, whatever, Australia first. And everyone, everyone steps up.

Rudd is currently working as ambassador of Australia to the United States.

Peter Hannam

RBA lists China’s woes as one of three ‘vulnerabilities’ for Australia’s financial stability

In the RBA’s financial stability review (see earlier post), the central bank cites “vulnerabilities” that could derail that stability.

Two of them are perhaps obvious, such as “negative surprises” that might throw financial markets into a spin (we can imagine a few of them in the Middle East, for starters), or the more esoteric uncertainties of the digital economy (perhaps cryptic crypto?).

The third, though, involves “imbalances in China’s financial sector”. On-going weakness in that nation’s real estate sector might yet prompt a “further loss of confidence” that could spill over into the global economy.

“The key channels of transmission of financial stress in China to Australia would likely be via increased risk aversion in financial markets, a sharp slowing in global economic activity, lower global commodity prices and reduced Chinese demand for Australian goods and services,” the review said.

Perhaps the treasurer, Jim Chalmers, got an advance copy to read on his flight to Beijing to meet counterparts this week. China has been cutting its interest rates this week, among the latest efforts to revive growth.

Perhaps Chalmers will learn about coming plans to throw money at consumers (as many overseas economists have been calling for to help end China’s economic funk).

There’s no stated mention of risks that might stem from US elections, including the possibility of a second Trump presidency. The next financial stability review, in six months’ time, might look a lot different.

Dry and sunny weather forecast for AFL grand final

Caitlin Cassidy

AFL heads – do I have some good news for you.

The Bureau of Meteorology’s official forecast for AFL grand final day in Melbourne is in, and we’re getting warm, sunny spring conditions, baby!

Senior meteorologist Miriam Bradbury said after a cold morning on Friday it will be dry and mostly sunny during the afternoon’s grand final parade, with maximum temperatures reaching the mid to high teens.

Warmer weather is expected in Melbourne on Saturday, with temperatures reaching the low to mid 20s for the opening bounce.

These fine match-day conditions are a result of a high pressure system moving across Victoria, bringing clear skies and moderate northerly winds.

There is a high chance of showers developing on Sunday, increasing in the afternoon as another cold front sweeps across Victoria from the west.

If the temperature reaches the forecast 23C on Saturday, this year’s grand final will rank among the warmest 20 VFL/AFL deciders. Nevertheless, it falls well short of last year’s grand final which was a balmy 29.7C day. (As a Collingwood supporter who was at the MCG, I remember it well.)

The last time these two teams met in a grand final, then as Fitzroy and South Melbourne in 1899, the game was on a day with steady rain and a maximum temperature of just 14.3 degrees. Fitzroy – now Brisbane – won by a single point, so let’s see who comes out on top in warmer weather.

Meanwhile, former treasurer and ambassador to the United States Joe Hockey is appearing at the National Press Club for the first time in some years, as America’s presidential race continues to heat up.

Asked whether the upcoming election will mark the end to bitterness on opposing sides of politics in the states, Hockey says America’s division is “primarily about policy, not personality”.

[At] the Republican convention, it was clear to me that there wasn’t a deep lifelong abiding affection for Donald Trump from the delegates. What they were doing was fighting for what they believed to be the policies that mattered to them – lower taxes, less regulation, stronger borders, you know, a greater focus on America first.

And at the Democratic convention … I had four days at the Republican Convention talking about Trump and then I had four days at the Democratic convention talking about Trump. I was a bit Trumped-out by that stage.

Hockey says the US isn’t divided now more than ever – citing 1968, when Robert Kennedy and Martin Luther King were assassinated.

George Bush said to me, he said he remembers it vividly and he said it was far worse. Nineteen American cities on fire over race. And every night on TV, they were losing people at Vietnam … he said it [was] far worse and the divisions in America were far deeper.

Andrew Messenger

Max Chandler-Mather says Labor ‘have come to the table’ on housing

The Greens’ housing spokesperson, Max Chandler-Mather, has signalled the party will push hard for capital gains tax reform, repeating the phrase “phase out negative gearing and the capital gains tax discount” 15 times in a single press conference in Brisbane.

The government acknowledged yesterday that treasury was modelling negative gearing changes.

The Greens took a policy of gradually phasing out currently negatively geared houses to the 2022 election.

We’ve said to the prime minister and to Labor privately and publicly we’re ready to negotiate, and we recognise we won’t get everything that we want, but we do expect some movement on negative gearing and the capital gains tax discount.

What that looks like is ultimately up to negotiations with the government, but we certainly won’t accept no changes to the two biggest tax handouts to property investors that are turbocharging house prices and denying millions of renters the chance to buy a home.

Chandler-Mather said the government had changed its tune on negotiating with the party.

At first, they said it was impossible, they were not going to move on any of the areas that the Greens wanted movement on.

Now we find out that Labor is asking Treasury to model one of the solutions that the Greens have proposed, phasing out negative gearing in the capital gains tax discount. The day after that, we find out Labor MPs and Liberal MPs have also supported changes to negative gearing in the capital gains tax discount … let’s think about what might happen in the next two months, now that Labor have to come to the table.