Governments and Wall Street titans are borrowing at record rates. The ramifications could be catastrophic.

Australian shares opened higher as bank stocks led gains, helping offset a pullback in Wall Street technology names. Concerns about an AI bubble weighed on the sector after a report said OpenAI’s annualised revenue was about $US20 billion ($28.7 billion) below what had previously been signalled, according to the Financial Times. Separately, data centre startup Firmus withdrew plans for an ASX listing after investors baulked at the price and terms, scrapping an IPO that would have valued it at about $43.7 billion.

The G7 said it will release up to 100 million barrels of oil and diesel over the next four months, with a substantial “frontloaded” drawdown of diesel stocks over the next 20 days. Industry expectations put the split at roughly 50 million barrels each of oil and diesel, adding less than 1 million barrels a day to global supply. The move is widely seen as an emergency effort to curb fuel prices in the US ahead of the midterm elections, though markets view any relief as potentially short-lived.

AI company Anthropic has released its IPO prospectus, reporting a $42 billion net loss last year while first-half sales this year exceeded $16 billion. The company says it expects a second consecutive quarter of operating profitability, even as it spent $7.33 billion on compute and infrastructure last year. It also discloses heavy reliance on two major customers that are also competitors, and the article notes SpaceX’s recent financing at a $1.78 trillion valuation.

Australia’s CPI inflation rose to 4% year on year in August, a four-month high, up from 3.5% in July. Housing costs were the main driver, rising 5.7%, while transport costs increased 5.6% due to higher fuel prices. Underlying inflation was unchanged at 3.6%. The figures were released a day after the Reserve Bank raised the cash rate to 4.6%, pointing to renewed price pressures.

South Africa’s Gold Fields has made a A$38.7 billion offer for Northern Star, proposing 0.3125 Gold Fields shares plus A$7.25 in cash per Northern Star share, a 22% premium. Northern Star’s board rejected the approach, calling it “highly opportunistic” and saying it materially undervalued the company. Northern Star has repeatedly cut production guidance over the past year due to problems at its Kalgoorlie processing plant, leaving its share performance lagging peers.

McDonald’s is adjusting to the surge in GLP-1 weight-loss drugs even as 84% of U.S. households with a GLP-1 user still visit the chain. Traffic has been flat and sales have missed expectations for several quarters, with the stock down 22% this year. The company has outlined a $US8.5 billion overhaul, including menu changes, and has pointed to stubbornly high inflation as one factor behind the softness. About 11% of Americans now use a GLP-1 drug such as Ozempic, Mounjaro or Wegovy, and adoption is rising quickly.

Crude oil climbed above $US100 a barrel last week, with jet fuel rising to $US163 as the war drags on. Qantas said its fuel bill increased by $610 million in the year to June 2026, and it expects jet fuel prices to stay elevated through the rest of calendar year 2026. Virgin Australia said it is more exposed after its hedging of jet fuel refining margins fell from around 80 per cent to only 20 per cent for 1H27, and its fuel costs could rise by as much as $700 million. Average diesel prices have also jumped 45%.

Wall Street fell as AI-related stocks retreated, a move expected to weigh on the ASX at the open. Gold prices dropped 1.8% overnight, pressuring gold miners. Santos rose 3% after lifting its production outlook, while Healius fell 3.4% on a wider full-year net loss. Stockland jumped 13.7% after reporting a 20.2% increase in profit.