🦘 House Prices Break More Records, How Banks Can Profit From AI, Collette’s Owners Go Into Administration

G’day everyone!

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

• House Prices Break More Records

• How Banks Can Profit From AI

• Collette’s Owners Go Into Administration

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

Aussie Home Prices: Up, Up and Away!

Buckle up, homeowners and prospective buyers!

Australia's housing market is on a wild ride, with home prices surging for the 14th consecutive month.

According to CoreLogic, the national average rose by 0.6% in March alone, clocking an 8.8% increase over the year. 

The standout city? Perth, where prices ballooned by 1.9% last month. 

This rollercoaster has pushed the median home value in the land down under to a whopping $772,730.

Despite the Reserve Bank's efforts to cool things down with interest rate hikes, the housing market's resilience has left economists, including AMP's Diana Mousina, scratching their heads. 

The major cities are seeing varying levels of growth, with Perth, Adelaide, and Brisbane leading the pack.

On the flip side, Sydney's market is teetering near record highs, while Melbourne sees a more modest uptick.

Amid this housing hullabaloo, affordability remains a pressing issue, with the average Aussie needing over a decade to save for a deposit. 

Mousina points to a mix of booming population growth and a pinch in housing supply as culprits behind the persistent price hikes.

AI's Bright Future in Aussie Banking

Artificial intelligence isn't just for tech whizzes and sci-fi fans anymore; it's about to give Australian banks, like Commonwealth Bank of Australia (CBA), a hefty boost.

Perpetual Investment Management's Anthony Aboud is betting big on AI's potential to streamline operations and slash costs for banks.

CBA, known for its knack for innovation, could lead the charge by automating processes and optimizing its sizable workforce. 

With AI's promise of efficiency, CBA's efforts to integrate AI tools in customer service and staff training could pay off big time.

This tech transition could spell significant savings, especially given CBA's substantial operational expenses.

As the Reserve Bank of Australia hints at interest rate cuts, banks are poised to benefit from AI-driven efficiencies and a more favorable monetary environment.

Despite some short-term pressures on margins and profitability, the sector's outlook seems bright, buoyed by AI's transformative potential.

Investors and customers alike are watching closely as Australian banks navigate this tech terrain, hoping for smoother, smarter banking ahead.

Marquee Retail Group Hits a Snag, Dives into Administration

Marquee Retail Group (MRG), guardian of the chic accessory brands Colette and The Daily Edited, finds itself navigating choppy waters as it's plunged into voluntary administration. 

The Sydney-based fashion house has been grappling with a sales slump over the past five months, and rising inflation plus towering interest rates haven't done them any favors.

Despite this hiccup, it's business as usual at Colette by Colette Hayman and The Daily Edited stores, with the company assuring that the lights will stay on and the staff will stay put.

They're eyeing a deed of company arrangement (DOCA) to buoy the business back to stability while keeping an eye out for a potential buyer.

This isn't Colette's first rodeo with administration, marking its second encounter in four years.

Marquee snagged the once floundering brand in 2020 and later added The Daily Edited to its lineup.

Chairman Bernie Brookes is playing the optimism card, assuring stakeholders of their commitment to finding a swift and favorable resolution.

Young Aussies Bet Big on US Shares, Eyeing Wealth Beyond Borders

The lure of the US stock market is proving irresistible to Australia's Gen Z and Millennials, with a seismic shift in investment preferences underway.

As of late, these younger investors are betting heavily on US shares, embracing ASX-listed ETFs as their weapon of choice to tap into the land of Nvidia and AI marvels.

This trend is flipping the traditional Aussie investment playbook on its head, setting the stage for US and global shares to dominate up to 70% of their portfolios.

The Nasdaq's sizzling 35% climb over the past year, compared to the ASX 200's modest 9% gain, is fueling these cross-Pacific investment dreams.

This surge in US equity enthusiasm among young Australians is a clear signal they're seeking to turbocharge their wealth-building journey, undeterred by distance and embracing the liquidity and affordability of equities over the daunting Australian property market.

With homeownership slipping further out of reach, it's ETFs to the rescue, offering a gateway to diversified, cost-effective investment opportunities far beyond Australian shores.

That’s All!

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 💪

Keep an eye out for tomorrow's newsletter. Until then, have an awesome day folks!