Australia's debt reaches $1 trillion as US debt passes $40 trillion – live updates

Stock Market

Australia's debt has hit $1 trillion at the same time the United States sees its debt pass $US40 trillion.

The US is on track to borrow $US2 trillion during 2026 alone, which will be spent on the war in the Middle East and sweeping tax cuts.

Meanwhile, the Australian share market opens higher in morning trading as the price of gold has surged by more than 4 per cent.

Look back on the day's financial news and insights from our specialist business reporters on our live blog.

Disclaimer: This blog is not intended as investment advice.

Live updates

Key Event

By Yiying Li

Prices current around 4:33pm AEST

Live updates on the major ASX indices:

Choose what information you see below by using filters

All

Key Events

Market snapshot

Markets

Banking

Results

Australians

Housing

Superannuation

Tax

Energy

Greens

Investment

Labor

Economy

Interest Rates

War

Fuel

Cryptocurrency

RBA

Coalition

Cost of Living

Sydney

Small Business

Technology

Iran

United States

All filters

By Yiying Li

We'll end our markets live coverage here and thank you for staying with us.

Our team will be back on deck tomorrow morning with all the latest.

Until then, have a great night!

By Yiying Li

There's been a stream of news out of the banking sector — from earnings results to plummeting home loan applications to AUSTRAC's investigation into mortgage fraud.

What to make of banks' AI uptake? And just how much does the banking sector spend on staffing costs?

Also why are Australian bank shares so expensive?

And what in the world is 'horse-o-nomics'?

In the latest episode, Carrington Clarke and Brian Johnson, Senior Banks Analyst at MST Financial, break it all down for you.

Tune in!

By Alison Branley

Keep an eye out for The Business program on ABC tonight.

We have an interview with the Medibank Private chief executive David Koczkar.

And if you're interested in more on the trillion dollar debt news - both in Australia and United States - we speak with Westpac's health of financial markets and strategy Martin Whetton.

Watch The Business, Mondays to Thursdays 8:44pm on ABC News Channel, after the Late News on ABC TV, and anytime on ABC iView

By Yiying Li

Australians are generally required to keep their super locked away until retirement, with early access allowed only in a narrow set of circumstances.

But exactly when and why people should be able to dip into their retirement savings has become a renewed political battleground recently.

My colleagues Lin Lin and Gareth Hutchens have put together this handy explainer to break it down.

By Alison Branley

Payments app and platform Zip Co Ltd was the top performer on the market today up by more than 18%.

Infrastructure company Downer EDI and health care company Sonic Healthcare Ltd were among the bottom movers both down about 10%.

By Alison Branley

Health care helped lead the charge on the share market today and the energy sector did well.

Financials and utilities were among the bottom movers.

By Alison Branley

Hello bloggers. Alison jumping in here to do our share markets wrap for today.

The ASX 200 closed upgaining 0.33%to 9,083.80.

The All Ords closedup0.47%to 9,298.50and crossing above its 20-day moving average.

By Yiying Li

Class action filings fell from a record 80 to 46 in 2025-26, the lowest since 2016-17, according to Mallesons's latest annual review report.

Despite this decline, more than $1.65 billion in settlements were approved, the second-highest annual total recorded, the firm noted.

Mallesons partner Moira Saville said the shareholder class action judgments were among the most significant developments of the year.

"The fall in filings does not tell the full story," Ms Saville said.

Brambles and Worley mark an important shift after a series of unsuccessful shareholder cases and the High Court's decision in Zonia could materially influence what comes next."

The report also pointed to changing funding dynamics, Mallesons said.

Victoria remained the only jurisdiction where plaintiff lawyers can receive contingency-style fees through group costs orders, while similar reforms are being considered federally and in NSW, it said.

While filings fell sharply over the past year, Mallesons said it did not expect that decline to signal a sustained reduction in class action risk.

"AI, cyber and data breaches, unfair trading and ESG-related claims as areas likely to attract greater attention," it added.

By Yiying Li

The Clean Energy Council says it has welcomed Treasurer Jim Chalmers' announcement today that a 15% Capital Gains Tax (CGT) rate will be extended out to 2040.

The announcement provides long-term certainty for investors committed to Australia's future energy needs, according to the council.

"We're grateful for the supportive and constructive negotiations between the Albanese Government and the Greens led by Senator McKim that have been taking place and the recognition of how important this issue is to ensuring new electricity generation gets built as quickly as possible," said CEO Jackie Trad.

"Confidence is fundamental in a globally competitive investment environment and today's announcement provides certainty about Australia as an investment destination."

Ms Trad added that the country's relatively small pool of local capital, compared with the rest of the world, was inadequate to meet its growing needs.

"The agreement struck today ensures that Australia's reputation as a country welcoming of investment and job creation remains front and centre," she said.

"Australia's electricity needs are growing and the rate of new generation and transmission needs to keep pace with it otherwise we run the risk supply not keeping pace with demand."

By Yiying Li

Fortescue's fiscal 2026 result was broadly in line with our expectations, with strong underlying earnings supported by record iron ore shipments, disciplined cost management, and solid cash flow generation, says Sean Williams, the vice-president at Moody's Ratings.

The mining giant has posted underlying net profit after tax of $US3.5 billion ($4.9 billion) for the financial year.

"While reported profit was affected by a non-cash impairment at Iron Bridge, the result underscores the resilience and scale of the company's core iron ore operations," Mr Williams noted.

"The company continues to advance its decarbonisation strategy, having invested around $US1.2 billion cumulatively since 2022.

"We expect investment to increase from fiscal 2027 and accelerate through the latter part of the decade as Fortescue progresses fleet electrification and other energy transition initiatives."

He said Fortescue's credit profile "remains underpinned by a strong balance sheet and excellent liquidity".

"Although leverage is likely to rise as investment spending increases, we expect the company to maintain substantial headroom within our rating tolerance levels, supported by its strong cash generation and financial flexibility."

By Yiying Li

My colleague Gareth Hutchens has delved into today's unemployment rate report released by the ABS.

The unemployment rate has not been this high in the post-COVID era, in trend terms.

Economists say the rise in unemployment is consistent with the Reserve Bank's expectation that economic conditions will gradually slow over the coming year, and it makes the chance of another interest rate hike less likely.

You can read more here.

By Yiying Li

Australian Unions are urging the Reserve Bank to rule out an interest rate hike when it meets next month after employment figures came in weaker than expected, with the ABS posting an increase in the unemployment rate to 4.5% in July from 4.4% in June.

The figures show the economy is weakening and unemployment rising amid growing global economic uncertainty and oil price volatility as Donald Trump's war in the Middle East continues to erode business confidence, according to the Australian Council of Trade Unions (ACTU).

ACTU president Michele O'Neil said today's figures were a warning sign.

"The Reserve Bank must not raise interest rates when it meets next month," Mr O'Neil said.

"The last thing Australia needs right now is a cash rate decision that adds further pressure on workers, families, and businesses, especially given the ongoing impact of Trump's war.

"Unions believe a rate rise next month will put even more Australians out of work and undermine the Reserve Bank's full employment mandate.

"Working people know too well the impact of leaving rates too high for too long. It means lost jobs, worsening employment opportunities and more stress for households already doing it tough."

By Nick Sas

An aviation fuel contamination issue is affecting the Pacific nation of Fiji, with Virgin Australia cancelling two Fiji flights to and from Brisbane today.

A Virgin Australia spokesperson has confirmed to the ABC that replacement fuel has arrived in Nadi today and is undergoing "testing and approvals" before it is cleared for use.

The spokesperson said its flights departing Nadi today would also be refuelled mid-journey at airports, including Port Vila in Vanuatu, in order to make the return journey to Australia.

All Fiji Airways flights out of the tourist hotspot have continued today despite the reported fuel contamination issue.

By Yiying Li

Treasurer Jim Chalmers has made comments on today's jobless rate, saying it's "unsurprising to see unemployment tick up a bit given the challenges coming at us from around the world".

"New jobs numbers just out show full-time jobs were up in July, part-time jobs were down, and the unemployment rate ticked up slightly," he said.

"The fact that our unemployment rate remains relatively low in the face of so much global uncertainty reflects the resilience of Australia's economy.

More than 1.25 million jobs have been created on our watch, most of them full-time.

Key Event

By Yiying Li

Prices current around 4:33pm AEST

Live updates on the major ASX indices:

Key Event

By Yiying Li

A Chinese court on Thursday has sentenced the founder of China Evergrande Group, the world's most-indebted property developer, to life imprisonment and ordered all his personal property confiscated, state media CCTV reported.

Founder Hui Ka Yan, also known as Xu Jiayin, faced eight charges, including misuse of funds, fundraising fraud and illegally taking public deposits.

He pleaded guilty to several charges in April.

Reporting with Reuters

By Yiying Li

Bitcoin has surged, trading around the $US69,000 level, following a US securities regulator's proposal of a new regulatory framework for crypto assets this week.

The proposal would exempt certain crypto companies and offerings from US securities rules, making it easier for them to issue tokens and raise capital, Reuters reported.

In a statement, Paul Atkins, the Securities and Exchange Commission (SEC)'s Trump-appointed chair, said the agency "seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws".

"The SEC 's proposed safe harbour is significant because it removes one of the biggest uncertainties institutional investors have cited for years, whether a crypto asset could later be deemed an unregistered security," said Paul Stonham, the CEO of Bitcoin trading platform BTC Markets.

"Pair that with the ‘prospect’ of the US government adding to its Bitcoin holdings, and you've got two of the most conservative forces in finance, a securities regulator and a sovereign balance sheet, both leaning toward legitimising this asset class.

"For institutions here in Australia watching from the sidelines, that's a meaningful de-risking signal."

Mr Stonham said, "What we're seeing today isn't noise, it's a signal".

"A formal capital-raising and safe harbour proposal from the SEC, sitting alongside reports that Washington is weighing direct sovereign purchases, tells institutional allocators that Bitcoin is being treated as infrastructure, not a fringe asset.

"That's the kind of regulatory clarity that draws in funds and treasuries, not just retail traders."

Meanwhile, he said he welcomed Australia continuing to build on this.

"ASIC's digital asset licensing work, including the no-action position running through to 30 September and the framework commencing next April, already has runway.

"Every step the US takes toward a clearer rulebook strengthens the case for Australia to keep pace."

Bitcoin has lost 21.1% YTD.

By Yiying Li

It's too early to suggest there's been a marked slowing in employment growth, according to David Bassanese, the chief economist at Betashares.

"Although the decline in employment in July was a market surprise, it follows two months of unusually strong gains — so to an extent we can attribute the drop to monthly volatility," Mr Bassanese said.

"That said, with labour supply also growing solidly, the challenge in coming months will be whether enough jobs will continue to be found for those who want one.

That seems unlikely, with high interest rates and falling house prices starting to slow economic activity."

He added that the RBA would likely view the July result as finally bringing the labour market into better balance, from its previous view that labour conditions were "a little tight".

"All up, today's result is consistent with the RBA's expectation that economic conditions will gradually slow over the coming year, helping ease capacity pressures and upside inflation risks.

"Along with slowing house prices, and the recent lower-than-expected June quarter inflation result, it's another reason to expect the RBA to remain benched at the upcoming late-September policy meeting."

However, Mr Bassanese said risks remained, with the July monthly inflation report due next week.

"But while an upside inflation surprise next week could unnerve the RBA, it likely would want to see two back-to-back bad monthly inflation reports before it would contemplate another rate rise — and I note the August inflation report is not due until a day after the September policty meeting."

Key Event

By David Chau

Now here's part 2 of my post about what's happening with the US bond market.

Today, the US Treasury Secretary Scott Bessent blinked — in response to the government's long-term borrowing costs surging to a 19-year high.

Mr Bessent said the government would intervene in the US bond market by doubling its buybacks to at least $US4 billion per operation — for long-term US debt which matures in 10 to 30 years.

That announcement led to the US 30-year yield dropping to about 5.18%.

A drop from 5.3% to 5.18% in just one day is quite a significant move!

But wait ... how does a government actually buy back its long term debt?

Essentially, the Treasury swaps out the old debt that was previously issued to investors before the maturity date (ie. when the money needs to be repaid) — and replaces it with new shorter-term debt (eg. a 2 or 5 year bond).

It doesn't actually reduce the total national debt.

"Bessent is again showing his tactical skill as an activist Treasury secretary — hitting bond shorts with a surprise announcement of an increased buyback program on an August day with thin liquidity and a lull in prior one-way bets on yields higher," Evercore ISI analysts said in a note to clients.

But they also questioned whether the move would have a lasting impact given that the Treasury still needs to finance a "tidal wave" of maturing debt and deficits.

Reporting with Reuters

Pinned

Key Event

Pratique d'écoute