🦘 Gas Bills Set To Increase, Big Banks Face Scrutiny With Fossil Fuel Funding, Millennials Moving Towards Regional Towns

G’day everyone!

Here’s what we’ve got in store for you today:

• Gas Bills Set To Increase

• Big Banks Face Scrutiny With Fossil Fuel Funding

• Millennials Moving Towards Regional Towns

Let’s have a look at the market snapshot before jumping into the news:

Ouch! Gas Bills Set to Surge for Aussies Next Month

Aussie households, brace yourselves - gas bills are about to spike, starting next month.

Big names in the energy game like AGL and Origin Energy are rolling out new gas rates across major cities, with residents in New South Wales and Victoria getting the hardest hit:

Come August 1st, AGL customers in Victoria can expect an 8.6% bump (about $134), while those in NSW will see an 8.2% hike ($71).

Queensland and South Australia aren’t off the hook either; they'll see increases of 5.1% and 5.4% respectively.

Meanwhile, Origin’s residential customers in Victoria will face a 7.3% rise ($125), and those in the ACT will get a 6.5% bump ($80).

So, why the sudden surge?

Well, it boils down to a mix of higher network costs, environmental fees, and commodity and haulage costs.

It turns out these costs ramp up around this time each year, hiking both gas and electricity prices.

Finder utilities guru Mariam Gabaji dishes out some solid advice: shop around for better energy rates at least once a year to avoid being stuck with pricier standing contracts.

And with the average Aussie expected to fork out $257 for winter heating, every little saving helps.

So, close those doors, insulate your home, and keep comparing those energy plans to ensure you’re not overpaying!

Big Four Banks' Big Bet on Fossil Fuels: $3.6 Billion and Counting

Australia’s major banks are back in the hot seat, with new research showing they’ve loaned a hefty $3.6 billion to fossil fuel projects and companies in 2023.

Despite the nearly decade-old Paris Agreement aiming for greener pastures, ANZ, NAB, Commonwealth Bank, and Westpac are still dishing out the big bucks to coal, oil, and gas ventures.

Market Forces’ analysis reveals that, while funding is almost halved from 2022 levels, the banks still funneled 70% of their fossil fuel lending to firms not aligning with climate commitments.

Kyle Robertson from Market Forces flagged customer concerns over this "greenwashing" and called out the banks for undermining efforts to combat climate change.

ANZ: Loaned nearly $1 billion to fossil fuel ventures in 2023, making it the biggest fossil fuel funder since the Paris Agreement.

NAB: Tops the 2023 list by loaning $1.4 billion, including $860 million to fossil fuel expansion projects.

Westpac: Forked out $784 million, yet claims 84% of its electricity sector loans are for renewables.

Commonwealth Bank: Loaned $271 million, falling behind its peers but still in the fray.

While the banks tout commitments to net-zero transitions and reducing financed emissions, critics say actions speak louder than words.

With the spotlight on fossil fuel funding, the banks’ green credentials are under greater scrutiny than ever.

Millennials Ditch City Living for Greener, Cheaper Pastures in Regional 'Boomerang'

Are millennials bouncing back to regional living? You bet!

Ben and Lauren Frazer's story encapsulates a growing trend among city-dwelling millennials seeking affordability and a better lifestyle.

After being priced out of Sydney, the Frazers snagged a five-bedroom house in Lake Macquarie for around $1 million.

This move was prompted by climbing rents that chewed up half their income.

Flexible work arrangements, a pandemic silver lining, enabled their transition.

This migration is part of what experts call a "second wave" of city-to-country moves.

Real estate firm CoreLogic notes property values in regional spots have surged - take Queensland's Sunshine and Gold Coasts, where prices have rocketed by up to 79% in the last five years.

Mandurah, just south of Perth, saw an 85.4% rise.

Such trends are recalibrating Australia's housing market, as urbanites search for affordability and quality of life in non-metro areas.

While long-time regional residents face rising property costs, newbies like the Frazers embrace quieter lives with bigger homes and green spaces.

As this boomerang migration pattern continues, the quest for balance between cost and comfort is shaping new housing dynamics across the nation.

Chinese EV Brands Could Fall Like Dominoes as Price Wars Cut Profits

China's electric vehicle (EV) market may face a massive shake-up due to aggressive price wars.

While the country's EV industry is booming, a new study from Alixpartners suggests only a fraction of the 137 current brands - specifically 19 - will be profitable by 2030.

With prices dropping dramatically and profit margins narrowing, many carmakers are staring down consolidations, mergers, or full-blown closures.

The main culprit? Intense competition leading to steep price cuts.

Alixpartners data shows that while the average new car price in China fell by 13.4% last year, profit margins actually increased from 6.3% to 7.8%.

Stephen Dyer, Managing Director at Alixpartners, believes that giants like BYD can sustain a price war due to their robust margins, hinting at potential further reductions.

Looking ahead, Alixpartners predicts Chinese brands could capture one-third of global vehicle sales by 2030 and dominate 45% of the new-energy vehicle market.

However, Europe's new tariffs on Chinese cars could dampen this growth slightly, reducing projected market share from 15% to 12%.

In Australia, Chinese-made cars have surged in popularity, with nearly 97,000 vehicles sold in the first half of 2024, making China the third-largest vehicle exporter to the land down under, just behind Japan and Thailand.

Hold onto your seats; the EV market is in for a wild ride!

You Made It!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

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