ASX Gets a New CEO, Anthony Attia

Hi folks. ASX Ltd. has recruited Anthony Attia as its new CEO to lead the embattled bourse, a former chief at Euronext Paris.

Meantime, as Jim Chalmers’ tax tweaks ripple across trading floors and board rooms, investors are rushing to unpack the impact on portfolios and wealth structures. The budget could increase the appeal of bonds, hurt consumer stocks, while also increasing pressure on the Reserve Bank to hike rates further. Commonwealth Bank emerged as a casualty. The lender’s market value fell about A$30 billion ($22 billion) for its worst ever day on the stock market.

Elsewhere, US President Donald Trump has arrived in Beijing, just as a Chinese supertanker looks to test the US naval blockade in the Strait of Hormuz. — Richard Henderson, Australian Finance Reporter

What’s happening now

ASX named Anthony Attia its new chief executive, concluding a search after Helen Lofthouse said she was standing down earlier this year.

Investors are scrambling to assess the impact of the tax tweaks for assets including stocks, bonds and property unveiled in Tuesday night’s budget. The new rules replace the 50% discount on capital gains with cost base indexation and a 30% minimum tax rate, alongside changes to trusts and property investing. Wealth managers warn it could upend trust structures and boost demand for safer, income-generating assets.

The tax changes could also drive higher long-term support for Australian bonds after an initial selloff, and pressure consumer-linked shares, according to analysts. Startups may also suffer “unintended consequences” according to Danielle Wood, chair of Australia’s Productivity Commission.

Will the new budget put upward pressure on interest rates? That’s a question in focus for central bank watchers who worry the new spending plan failed to put a deep enough dent into Australia’s deficit through the end of the decade. That could place a higher burden on monetary policy to restrain inflation — and add further pain for borrowers contending with this year’s rate hikes.

Commonwealth Bank shares slumped more than 10% Wednesday, a daily decline that exceeded even the worst days of the financial crisis or pandemic. Analysts pointed to the souring economic outlook and the curtailing of negative gearing for property investors, which may weigh on mortgage loan growth. The bank also set aside more money for bad loans. Chief Executive Officer Matt Comyn warned that inflation and higher interest rates are set to weaken household spending and business activity.

BHP has a half-eye on acquisitions to fuel growth, with a particular focus on copper. That’s according to Brandon Craig, the mining giant’s incoming Chief Executive Officer.

The Trump Organization is giving up on its Gold Coast dreams. The company said it would no longer put the Trump name on a 91-storey hotel and apartment project in Surfers Paradise after its Australian partner failed to meet its obligations.

Underwriters of two proposed loans to Pacific Equity Partners’ companies have sweetened the terms, people familiar with the matter said.

And passengers from the Hondius cruise ship face a varied set of measures to contain a deadly outbreak of hantavirus. Australia plans to quarantine passengers in a purpose-built facility outside Perth. France is placing them in biocontainment units, while the Netherlands is asking most to self-isolate.