Budgets

• IBM warned that the rapid AI boom is squeezing corporate software budgets as companies reallocate funds toward data-center infrastructure. • This shift in spending has pressured software demand and negatively impacted IBM's near-term financial outlook, causing its shares to plunge. • The trend highlights a critical transition in the tech industry where infrastructure investment is currently being prioritized over software implementation.

• IBM warned that customers are shifting their budgets away from software and toward AI infrastructure, including servers, chips, and data centers. • This shift triggered a selloff in software stocks as investors worry that AI spending is squeezing traditional software budgets. • Market analysts, including IG Group's Chris Beauchamp, describe the situation as an "ugly moment" for the sector, highlighting a pivot toward cybersecurity and hardware.

Weekly toll cap in NSW to fall from $60 to $50 for one year. Follow today’s news liveGet our breaking news email, free app or daily news podcastThe New South Wales government will lower the weekly road toll cap from $60 to $50 for one year as part of cost of living measures handed down today in the 2026-27 state budget.In advance of today’s budget, the Minns government has announced that the threshold for the cap, under which drivers can claim back from the government after they spend $60 per vehicle, will be lowered to $50 for the 12 months from July 6, a saving of $10 a week for motorists who already claim toll relief. Tolls on multiple roads managed by private operator Transurban will rise on July 1, leaving them on average more than 4% higher since July 2025. Continue reading...

Shares in Domino’s Pizza, KFC operator Collins Foods and multi-brand food franchise owner Retail Food Group have all suffered double-digit fallsGet our breaking news email, free app or daily news podcastOnce a symbol of cheap eating, fast food is transforming into a luxury many can no longer afford due to resurgent living costs.This shift is reflected on the ASX, where major pizza, fried chicken and doughnut outlets are seeing significant price drops, raising the question: are consumers so downbeat that they are even giving up on fast food? Continue reading...

• Companies in the US are spending 93% of their AI budgets on technology and only 7% on preparing their workforce, leading to implementation bottlenecks. • Among executives surveyed, 78% report greater benefits from AI in revenue growth than cost-cutting, with experts predicting revenue gains will dwarf efficiency improvements. • Firms treating workforce as an afterthought risk failure despite advanced AI tools, as highlighted by insights from Deloitte, Wharton, and Harvard experts.