SFG.

Summary: In May 2025, the Reserve Bank of Australia (RBA) announced a reduction of the cash rate from 4.1% to 3.85%. This marks the second interest rate cut of the year, signaling the beginning of a new round of monetary easing—the first since 2020. Amid a global backdrop of economic uncertainty, this adjustment sends a series of important signals for investors and business owners.

Summary: In 2025, with the dust settled from the federal election, the Labor government continues its leadership, rolling out a series of reforms aimed at promoting economic equity, green transition, and labor rights. These changes are swiftly reshaping Australia’s policy landscape and market expectations. While the policies are intended to enhance overall social welfare, they also bring significant changes in taxation, cost structures, and industry dynamics—particularly for investors. Against this backdrop, understanding policy direction is no longer merely a matter of macro awareness for investor—it has become a critical foundation for portfolio construction, risk management, and capturing structural opportunities.

Summary: Australian “Buy Now, Pay Later” (BNPL) company Zip Co Ltd has reported a strong financial performance, with EBITDA for Q1 FY2025 surging 219.4% year-on-year to AUD 46 million. The company has also raised its full-year profit guidance, driving an 18% jump in its share price. The U.S. market emerged as the key growth engine, with both revenue and transaction volume showing significant gains, demonstrating that the BNPL model remains attractive even in a high interest rate environment. Zip’s financials continue to strengthen, and the announcement of a stock buyback program reflects management’s confidence. Despite policy uncertainties, Zip’s diversified strategy and mature profitability model show its resilience. Investors may view Zip as a representative of the BNPL sector entering a “profit validation stage,” with long-term value potential.