From the uneven impact of AI on economies to the urgent need for resilience amid rising geopolitical complexity and strategic risks, read the sharpest insights and analysis from CBA's Global Markets Conference 2025.
27 October 2025
In today’s new world order, defined by “multipolar” regional conflicts, adaptive globalisation and a massive investment boom in infrastructure and commodities, investors must pursue flexibility and diversification across countries, currencies and sectors, while focusing on companies with resilient, agile supply chains and multi-market reach. Prepare for rolling risks rather than a single crisis, and stay nimble as the global economic map is redrawn.
Commonwealth Bank Head of Geopolitical and Country Risk Michael Hutchison (left) and Marko Papic, GeoMacro Chief Strategist , BCA. Picture: Cassie Bedford
Australia’s vast solar and wind resources underpin rapid growth in renewable generation, but slower-than-expected progress in battery storage and transmission upgrades has created bottlenecks limiting the full potential of renewables. A coordinated national strategy that blends market reform, infrastructure investment and technology adoption is key to ensure reliable, affordable and low-emissions electricity for all Australians.
By collecting accurate, up-to-date information and using robust analytical tools to analyse it, decision-makers can spot where housing shortages are most acute, track population changes, and see what’s working. This data-driven approach can make it easier to build the right homes in the right places, and help create stronger, more liveable communities.
If you plan to tap the bond market during periods of significant volatility, such as after Liberation Day, do your homework and prepare to be flexible. This means disciplined pre-trade risk management and readiness to adjust your timing window as the situation evolves.
Housing Australia CEO Scott Langford and Commonwealth Bank Director Institutional Client Coverage Vivienne McConaghy. Picture: Cassie Bedford
While US and EU bonds have become less attractive, Australia’s government and state bonds offer solid returns at sovereign-quality risk. But what makes Australia stand out to investors amid today’s shifting global landscape is its ‘predictability premium’ – an orderly, well-organised market that’s good value and easy to trade in.
America’s AI-driven capital spending is boosting GDP, but the benefits aren’t reaching most people. Unlike traditional infrastructure, data centres don’t create many jobs once built. This disconnect means the economy looks strong on paper, yet everyday workers feel little impact. To support the households and businesses that make up the real economy, borrowing rates may need to stay low – around 3.5% - even without a recession. The AI boom offers growth, but not the kind that trickles down.
Australian Super Head of Fixed Income and Currency Katie Dean. Picture: Cassie Bedford.
Permanent magnets, which make up 95% of rare earth market value, are essential to EVs, wind turbines, fighter jets, and advanced electronics. But the supply chain is heavily concentrated: China controls around 60% of mining and 90% of processing and magnet production, built through decades of industrial policy. For Australia and its partners, the challenge and opportunity is to build resilient, end-to-end capabilities to reduce strategic risk and support the energy transition.
With half of assets offshore, FX risk and collateral constraints demand whole-of-fund thinking, not just hedge overlays. Precision liquidity tiering, stress playbooks, and board-level governance are essential to avoid forced selling and enable crisis buying. These shifts underpin member outcomes, performance tests, and systemic resilience. The challenge: embed liquidity strategy into investment design while co-ordinating with regulators and dealers to optimise collateral and crisis readiness.
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