1. Rain, rain go away…
There has been 70% more rain in the June quarter in Sydney than the record 2022 La Nina period! Now let’s see how many times ‘weather disruption’ appears in results commentary next month…
Source: Bloomberg
2. Light bulb moment…
According to Brookfield Renewables, the integration of AI uses up to 10x more power when integrated into a typical web search process. And it is estimated that global electricity consumption from data centres could increase to approximately 10% of total electricity demand by 2030, up from approximately 2% today. To put this in context, the additional generation capacity required by data centres is equivalent to the size of the current U.S. power grid.
Interestingly in the US, we haven’t seen aggregate electricity use change much over the past 20 years despite the AI growth…
Source: Statista
3. Home is where the value is…
It seems the limit does not exist for home prices. Sydney’s dwelling values added 0.5% in June with the median home price hitting a record high of $1.17 million, according to CoreLogic. Across Australia dwelling values increased a further 0.7% in June, taking growth for the FY24 year to 8%, which equates to a $59k wealth boost, on average.
But the US is leading the pack of developed economies with its strong house price growth, up nearly 50% since the pandemic.
Source: CoreLogic, Macrobond, Macquarie Macro Strategy