The Capital Bite

National Australia Bank (NAB) has reported a 15% drop in mortgage applications over the last quarter, amid higher interest rates and property tax changes that have hit investors' confidence. This comes as the Reserve Bank of Australia (RBA) rules out changing policy to help the struggling property market. RBA chief economist Sarah Hunter said the bank does not 'mechanically respond' to falling house prices, but is concerned about their impact on the economy and financial stability. The RBA has maintained its hold rate since last month's increase, despite three interest rate hikes in 2026. House prices are falling faster than expected, with headline inflation at 3.8% and trimmed mean inflation at 3.6% for the 12 months until June 30.

The ASX Market Announcements Office has released a notice from ASX Limited, the operator of the Australian Securities Exchange (ASX), indicating that an online lodgement has been made by the company on July 31st. This is a routine administrative announcement and relates to a regulatory filing or disclosure requirement.

This headline indicates that Acumentis Group Limited (ASX: ACU) has made an announcement to the Australian Securities Exchange (ASX), which is a mandatory disclosure for listed companies in Australia. The announcement is related to financial performance or corporate updates, and will be reviewed by ASX regulators before being released publicly.

Goldman Sachs expects the Federal Reserve to keep interest rates unchanged for the remainder of 2026, contradicting market expectations that increasingly see a September hike after three policymakers broke with the majority in Wednesday's 9-3 vote. The Fed acknowledged that inflation is still elevated relative to its 2% target, but Goldman interprets Chair Kevin Warsh's post-meeting remarks as less hawkish than the dissent count suggests. Fresh data released Thursday showed core personal-consumption-expenditures inflation slowed to 0.1% month over month in June from 0.3% in May, although it remained elevated at 3.3% annually. The growth picture is less decisive, with second-quarter GDP expanding at a 1.5% annual rate, slowing from 2.1%, but private domestic demand accelerating to 3.9%. Markets still assign roughly a 57% probability to a September increase.

Berkshire Hathaway has entered a new era under CEO Greg Abel, who is overseeing the company's record US$397 billion cash pile and making moves such as acquiring Taylor Morrison and investing US$10 billion in Alphabet. This leadership transition and large cash reserves put Berkshire's capital allocation choices at the center of investor assessment. Investors must believe that Abel can turn the company's collection of operating businesses, insurance franchise, and cash hoard into solid long-term compounding despite expected lower earnings over the next few years. The near-term story revolves around capital allocation, with key catalysts including how quickly the cash is redeployed and whether earnings quality holds up. Berkshire Hathaway's shares have been on the rise but are still potentially undervalued by 34%.

Blackstone has agreed to finance the acquisition of HSBC's A$36bn (£18.8bn) Australian home loan portfolio in what is described as the world's largest mortgage portfolio transaction. The deal will see funds managed by Blackstone Credit & Insurance, Blackstone Tactical Opportunities, and Blackstone Real Estate Debt Strategies provide capital for the transaction. Pepper Money will act as loan management partner for the portfolio following completion. The transaction is expected to complete during the first half of 2027, pending regulatory clearance.

HSBC has sold its $36 billion book of home and personal loans to private equity giant Blackstone, marking the end of a four-decade retail banking presence in Australia for the London-headquartered financial giant.

HSBC has sold its $36 billion Australian home and personal loan portfolio to Blackstone, with the sale expected to be completed in the first half of 2027. The deal will result in job losses at HSBC, but impacted employees can apply for new positions at Pepper Money, which will act as the servicer. HSBC will continue to invest in its corporate and institutional banking, private banking, and asset management businesses. This sale follows a strategic review that saw HSBC decide to simplify its operations and focus on areas where it has competitive advantages.