Markets live: ASX200 rises, regulator ASIC sues auditors post First Guardian collapse
By business reporters Daniel Ziffer andNassim Khadem
Topic:Stock Market
Posted Fri 31 Jul 2026 at 7:45am
Fri 31 Jul 2026 at 7:45am
, updated Fri 31 Jul 2026 at 1:10pm
Fri 31 Jul 2026 at 1:10pm
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The Australian share market opened higher in trade on Friday off the back of gains on Wall Street
Corporate regulator ASIC announced it is suing auditors linked to the now collapsed First Guardian Master Fund that left about 6000 investors losing almost $500 million of their retirement savings.
Follow 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
Pinned
Fri 31 Jul 2026 at 12:55pm
Fri 31 Jul 2026 at 12:55pm
Market snapshot
By Nassim Khadem
ASX 200: +0.24% to 8990.1 points
Australian dollar: 70.2 US cents
Dow Jones: +1.2% to 52,208 points
S&P 500: +1.6% to 7,437 points
Nasdaq: +2.8% to 25,1222 points
FTSE: -0.1% to 10,897 points
EuroStoxx: +0.7% to 649 points
Spot gold: -0.66% to $US4075.80/ounce
Brent crude: -1.2% to $US88/barrel
Iron ore: Flat at to $US98/tonne
Bitcoin: -0.78% to $US64,226.75
Prices current around 12:50am AEDT
Live updates on the major ASX indices:
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Fri 31 Jul 2026 at 1:45pm
Fri 31 Jul 2026 at 1:45pm
KOSPI volatility turns extreme
By David Taylor
South Korea’s KOSPI index has become a roller-coaster ride
The index leapt more than 10% at the open of trade today, reversing steep losses from earlier in the week
At1:30pm AEST, it was up 14%
It had plummeted by equal measure earlier in the week
The wild swings in the market had prompted South Korean authorities to rein in the leveraged products that have wreaked havoc and wiped out the savings of some retail investors
“(The market sentiment) is fragile around the AI debate,” senior EM equity portfolio manager at Amundi, Ji Young Park said
“The market performance has been narrow in Asia ex-Japan, mostly related to AI… given the sharp correction we’ve had across the markets that have AI exposure, we believe we are close to the end of this prolonged volatility.”
The bottom line is that the index is dominated by tech and AI, where sentiment is changing by the minute, so it’s experiencing extreme volatility
Reporting with Reuters
Key Event
Fri 31 Jul 2026 at 1:28pm
Fri 31 Jul 2026 at 1:28pm
HSBC to sell $36 billion loan book to Blackstone
By Nassim Khadem
HSBC said today it would sell its $36 billion Australian home and personal loan portfolio to investment giant Blackstone, marking its phased exit from retail banking in the country
The transaction is the latest move in CEO Georges Elhedery’s overhaul of the bank and follows a strategic review by the firm
The sale is expected to complete in the first half of 2027, subject to regulatory approval
The remainder of HSBC Australia’s retail business will be wound down over the next 18 months following the strategic review
HSBC said in a statement it will continue to invest in and grow its corporate and institutional banking franchise across Australia and New Zealand “to support corporates, institutions, superannuation funds and innovative scale-ups”
“HSBC will also continue to invest in and grow its asset management and private banking businesses, which will continue to operate in Australia.”
But the remainder of Australian retail business to be “wound down in a phased manner over the next 18 months”
“For now, customers can continue to bank with us as normal and will receive information from HSBC outlining the subsequent changes to the products held, noting there is no action required at this point,” the bank said
Fri 31 Jul 2026 at 1:05pm
Fri 31 Jul 2026 at 1:05pm
ICYMI: Last night’s video finance report
By Daniel Ziffer
Did you miss David Chau’s finance report last night? Don’t stress, we’ve got you. The numbers refer to yesterday’s data, so catch up on where we’ve been, to get a steer on where you’re going today
Fri 31 Jul 2026 at 12:55pm
Fri 31 Jul 2026 at 12:55pm
More on Anthropic / Hugging Face rogue AI hack drama
By Daniel Ziffer
Want more detail?
It’s here
Key Event
Fri 31 Jul 2026 at 12:45pm
Fri 31 Jul 2026 at 12:45pm
Higher rates, fuel prices weigh on small business
By Nassim Khadem
Australia’s small business economy lost momentum in the June quarter, as higher interest rates and fuel prices began weighing on consumer spending and business confidence, new data from Xero shows
Xero Small Business Insights (XSBI) report found that small business sales growth eased to 6.5% year on year (y/y) in Q2, down from a two-year high of 7.9% in Q1 and below the historical average for the series
“After a strong start to the year, pressure started to show in the small business economy in the June quarter,” said Xero economist Louise Southall
“Consecutive interest rate rises and elevated fuel prices have taken the heat out of the economy
“Growth is still positive, but those macroeconomic pressures are now weighing on both consumer spending and business confidence.”
Looking ahead, ongoing global uncertainty and the situation in the Middle East were likely to keep weighing on small business sales and hiring for the rest of the year, she said
Key Event
Fri 31 Jul 2026 at 12:28pm
Fri 31 Jul 2026 at 12:28pm
Aussie dollar falls against yen after suspected intervention by Japanese government
By David Chau
The Australian dollar is relatively steady against many of the foreign currencies this morning — with one notable exception
It has dropped by around 1% against the Japanese yen, which is a very steep fall in a short period of time
The reason for that is because Japan’s Ministry of Finance is suspected to have intervened in the currency market, according to the Nikkei newspaper — by selling some of its US dollar and American Treasury bonds holdings
The US dollar had an even bigger reaction, have dropped by as much as 3.3% against the yen since yesterday
Lately, the Japanese currency has been languishing around a 40-year low against the US greenback
Why intervene?
If the yen had continued to weaken, there’s a risk it would trigger higher inflation in Japan and significant economic pain domestically
It’s because Japan relies heavily on imported food and energy, so a weaker yen would make those purchases from overseas more expensive
The surge in oil prices, as a result of the US-Israel war against Iran, is having an enormous impact on Asian economies in particular
But it’s not the first time the Japanese government has intervened
In late April and early May, Japan sold about $US70 billion in assets so it could buy more yen, in order to prop up its value
However, it had minimal impact and the Japanese currency’s exchange rate continued to deteriorate
“The yen surged in a way only possible by [Japanese government] intervention, pushing the USD/JPY from 40-year highs and below the 160 [yen] handle,”
“The move came heading into a Bank of Japan decision [today] where the markets are pricing in a hold of the policy rate at 1% but will look for clues in the statement, guidance, or updated economic forecast for when the central bank expects to hike next
“A hike today isn’t impossible. But right now, the markets are pricing in that the next move will come in October, with a hike fully baked in.”
Key Event
Fri 31 Jul 2026 at 12:18pm
Fri 31 Jul 2026 at 12:18pm
ASIC says auditors play a key gatekeeping role, but allegedly failed First Guardian investors
By Nassim Khadem
Regulator ASIC alleges that Auditeo auditors Ajm Didarul Islam Khan and Brian Robert Taylor also failed to comply with accounting and assurance standards that applied to the conduct of the audits, did not obtain sufficient and appropriate audit evidence and did not perform the First Guardian audits with due care and skill
It alleges Auditeo’s audit files do not demonstrate that any financial audit was in fact conducted for the 2021 financial year, despite Auditeo and Mr Khan issuing a report for that year
The regulator alleges in the 2022 financial year, about $137 million of reported assets were entirely untested by Auditeo and Mr Khan, and in 2023 the untested amount increased to about $170 million
It alleges Auditeo and Mr Taylor failed to consider the correct compliance plan that applied for part of the 2022 financial year and the entire 2023 financial year
“Auditors play a critical gatekeeper role in maintaining trust in our markets and helping ensure investors receive an accurate picture of a scheme’s financial position.,” ASIC chair Sarah Court said
“When that role is not properly performed, the consequences can be severe,” she added
“Compliance plans also play a fundamental role in the regulatory framework to protect retail investors
“Auditors providing reliable assurance that responsible entities are adhering to compliance plans is a fundamental aspect of that framework.”
ASIC is seeking declarations of contravention, financial penalties, injunctions and other orders from the Court
Auditeo has been contacted for comment
Key Event
Fri 31 Jul 2026 at 12:08pm
Fri 31 Jul 2026 at 12:08pm
Trusts aren’t just for income splitting, argues the Tax Institute
By Nassim Khadem
The federal government’s proposed 30 per cent minimum tax on discretionary trusts could impose significant costs on family businesses, small businesses and some farmers, says The Tax Institute
In its submission to Treasury, it said that discretionary trusts were widely used by family businesses, farmers and professional practices for asset protection, succession planning and intergenerational business ownership, not simply income splitting
“While we recognise the government’s objective of reducing inappropriate income splitting through discretionary trusts and welcome Treasury’s efforts to develop exclusions and transitional measures, including the proposed rollover relief, significant concerns remain regarding the design of the proposal,” Tax Counsel John Storey said
He said the changes have the “potential to affect well over one million trust structures”
The government’s budget changes to trusts are slated to take place on July 1, 2028
Mr Storey said additional consultation is necessary before the reforms are finalised and before legislation is drafted
I did a story about how the changes to trusts could have wider ramifications. You can read that here:
Fri 31 Jul 2026 at 11:47am
Fri 31 Jul 2026 at 11:47am
Good winter crop, ag bank says
By Daniel Ziffer
Australia’s winter crop outlook has turned around in recent weeks, according to specialist agriculture lender Rabobank
Timely rainfall and improved soil moisture levels across several key grain-growing regions are lifting production prospects compared with earlier projections
Rabobank senior grains and oilseeds analyst Vitor Pistoiatold a podcast that after a late, dry start to this year’s winter crop in many parts of Australia — which had led to expectations of below-average production — the national winter crop is now, in mid winter, in average to good development condition
“The models and the feeling and the vibe really changed here in the country
“We are potentially going for an average season now – no longer below average.”
However, he said, with an El Niño increasing the risk of below-average spring rainfall through the growing season, there was cause for caution about how the crop would finish, particularly across southern Queensland and northern New South Wales
Mr Pistoia said crop models had already been showing a lift in wheat yield potential in early July, with the improvement equivalent to about 0.2-0.3 tonnes per hectare in some modelled outlooks
“Things do change
“A few months ago, this season was looking like it could be below average. Now, if spring can do enough of the job, Australia has the potential to print big numbers again.”
Fri 31 Jul 2026 at 11:30am
Fri 31 Jul 2026 at 11:30am
KOSPI rockets as rollercoaster continues
By Daniel Ziffer
South Korea’s flagship stock index, the KOSPI is up 13% in early trading
That puts it about where it was on … Tuesday
The index, packed with tech and chip-making companies like Samsung is up 94% from a year ago, but there have been sharp lifts and falls
Fri 31 Jul 2026 at 10:51am
Fri 31 Jul 2026 at 10:51am
Woman wins rare pregnancy discrimination case
By Daniel Ziffer
That headline isn’t quite right
Pregnancy discrimination is rife in Australia, but successful cases against it are rare
Tatiana Duarte was denied unpaid parental leave, flexible work arrangements, and support for breastfeeding while working as a waiter and cleaner at the Consulate of the United Arab Emirates in Melbourne
Four Corners wants to speak to more people affected by this issue, which is explored in this article
Fri 31 Jul 2026 at 10:44am
Fri 31 Jul 2026 at 10:44am
ACCC’s low or no-fee account ruling a big boost for poorer people
By Daniel Ziffer
Big news with big impact yesterday, as the Australian Competition and Consumer Commission (ACCC) made a landmark determination
Banks are now required to proactively move eligible customers into low or no-fee accountsunless they opt out. It will mean a huge number of people save a lot of money
“This is a common-sense decision that will put money back into the pockets of people who can least afford to lose it,” said Consumer Action Law Centre CEO Stephanie Tonkin
Consumer groups and financial counsellors have been calling for years for banks to move away from an “opt-in” system that has left people in vulnerable circumstances paying millions of dollars of unnecessary fees. (And not knowing they didn’t need to)
Ms Tonkin again:
“For too long, thousands of low-income Australians, pensioners and concession card holders have languished on inappropriate bank accounts simply because they faced barriers to switching or didn’t know a cheaper option existed.”
Haven’t I heard about this before?
Yes. In 2024, regulator ASIC found more than 150,000 low-income and First Nations customers paid $6 million in avoidable fees over a year, largely through overdraw and dishonour fees, despite being eligible for a basic account. Processes to ensure uptake of a basic account were largely ineffective.
The banks targeted in the review have been refunding customers, although the Commonwealth Bank hasn’t coughed up
CHOICE campaigned for full remediation of the $270 million that ASIC said it owed its customers; the bank has only committed to returning $93 million
The big shift here is the determination adds conditions requiring banks to identify eligible customers,contact them directly, and migrate them to lower-cost accounts unless the customer opts out
Here’s Aaron Davis, CEO, Indigenous Consumer Assistance Network, on why that will help people:
“For years banks have known that customers were paying fees they didn’t need to pay because they failed to ensure eligible customers were on low or no fee accounts. As ASIC’s Better Banking Reports have shown, First Nations customers have been among those hit hardest, paying millions in avoidable fees. The ACCC’s determination is a major step forward. It means banks must take responsibility for identifying eligible customers and moving them into more suitable accounts, helping keep millions of dollars in the pockets of people and communities who can least afford to lose it.”
Fri 31 Jul 2026 at 10:35am
Fri 31 Jul 2026 at 10:35am
Top movers on US news
By Daniel Ziffer
Here are the biggest swings in early trading.
The top two — Megaport and Silex Systems — reported Australia sales after our market closed and before the US started, so it’s the first time traders could look at the results and say YUM YUM MORE
(Which is what I assume investors proclaim when looking at positive sales results for IT companies)
Key Event
Fri 31 Jul 2026 at 10:28am
Fri 31 Jul 2026 at 10:28am
ASIC sues auditors that signed off on First Guardian investments
By Nassim Khadem
Corporate watchdog ASIC issuing Auditeo Australia and two auditors over alleged serious audit failures linked to the First Guardian Master Fund
The regulator alleges that unqualified audit reports on First Guardian and its compliance plan for the 2020 to 2024 financial years, issued by Auditeo and signed by either lead auditor Ajm Didarul Islam Khan or, for certain compliance plan audits, Brian Robert Taylor, were false or misleading
It is the first time ASIC has taken legal action against auditors involved in helping channel about 6,000 Australians’ retirement savings into the now collapsed fund
“We allege audit opinions were issued despite there being no reasonable basis for those opinions and despite significant audit work required under accounting standards not being performed,” ASIC Chair Sarah Court said
“The alleged failures in this matter occurred before the collapse of the First Guardian Master Fund, with a devastating impact on investors.”
“Just six months after Auditeo issued unqualified audit reports in relation to First Guardian, liquidators were appointed. More than 6,000 Australians were exposed to its collapse, with liquidators warning losses could be as high as $446 million.”
Fri 31 Jul 2026 at 10:04am
Fri 31 Jul 2026 at 10:04am
Separate blogs for good and bad news?
By Daniel Ziffer
Have you considered making different blogs for bulls and bears? I’m saving for a house deposit, and I’m a lifelong bear, so I like it when the numbers are bad. It would be nice to have a separate blog so I didn’t have to read all the sunny news on a day like today
– Rob
Not a bad idea Rob, but we’re already doing it
The politics blog is for pessimists of humanity and the Commonwealth Games one is for the optimists. Add in the business blog and we’re at full capacity
Fri 31 Jul 2026 at 10:03am
Fri 31 Jul 2026 at 10:03am
Market opens higher
By Daniel Ziffer
In the opening minutes of trade, the flagship ASX 200 index is 85 points or 0.96% higher to 9,053.5 points
Fri 31 Jul 2026 at 9:59am
Fri 31 Jul 2026 at 9:59am
New rogue AI escape details emerge
By Daniel Ziffer
Just in, AI firm Anthropic said yesterday that its Claude model gained unauthorized access to the systems of three organisationsduring cybersecurity evaluations after a misconfiguration allowed the models to reach the internet from testing environments that were supposed to be isolated
This has been a huge story in the past few weeks — the break-out of a seemingly isolated AI model. One of the hardest things is that there is a serious company we have to talk about all the time call Hugging Face
Here’s a great explainer from Fergus Gregg
Fri 31 Jul 2026 at 9:54am
Fri 31 Jul 2026 at 9:54am
Australian dentists to be listed on Singapore stock exchange
By Daniel Ziffer
A press release from mega-lawyers Holding Redlich has revealed 40 dental clinics and approximately 120 dentistsoperating across New South Wales, Victoria, Queensland, Tasmania and the Australian Capital Territory could soon answer to shareholders in Singapore
The firm advised Q & M Dental Group of Singapore on its proposed $119.64 million acquisition which, if completed, will establish Q & M’s entry into the Australian dental market through a national dental network
From the release:
“The proposed acquisition will establish one of Australia’s largest private-sector dental networks under Q & M ownership, bringing together 40 dental clinics and approximately 120 dentists operating across New South Wales, Victoria, Queensland, Tasmania and the Australian Capital Territory
“The transaction supports Q & M’s entry into the Australian market through an established dental network, with Experteeth’s founders and key dentists remaining involved in the business. The acquisition also represents one of the largest cross-border investments in Australia’s dental sector by a Singapore-listed healthcare company and forms an important part of Q & M’s long-term strategy to expand its presence across the Asia-Pacific region.”
The tie-up is for more than 50 Australian companies operating under several dental clinic brands across five Australian jurisdictions
Founded in 2017 by Jeffrey Gao and Hong Chang, Experteeth Dental Group has grown from three clinics into one of Australia’s largest privately owned dental networks
Fri 31 Jul 2026 at 9:44am
Fri 31 Jul 2026 at 9:44am
Will cheaper Chinese AI undercut America’s tech dominance, even in the West?
By Daniel Ziffer
There’s a new generation of AI models from China that is putting fresh pressure on Silicon Valley AI behemoths and raising questions about access, user experience and price
So, how could cheaper AI shake up big tech business models? And how are economics affecting the AI rollout in Australian businesses?
ABC business reporter Lin Lin has spent the past couple of months looking into the burgeoning Chinese AI sector and how Australian businesses are using its tools as cheaper alternatives to American AI
She discussed what she learnt with me on the ABC Business Daily podcast yesterday and you can listen to it here
