Equity markets continued to rise this week, as inflation data reinforced expectations for a September rate cut. The U.S. labour market showed further signs of cooling, with weekly jobless claims jumping on Thursday, while inflation came broadly in line with forecasts, though the month-on-month headline print was hotter than expected. Market reaction to the CPI release suggests that recent labour market weakness has effectively locked in a 25-basis-point cut later this month, with employment data now the key focus. According to the CME FedWatch tool, markets are pricing a 100% probability of a rate cut at the upcoming Federal Reserve meeting.

Commentary from Industry Leaders

Yesterday I attended the 2025 Private Wealth Forum hosted by Macquarie Asset Management. The main focus of this event was the infrastructure landscape and Macquarie’s Private Infrastructure Fund and Macquarie's Energy Transition Infrastructure Fund. 

Former Governor of the Reserve Bank of Australia and Chairman of the Macquarie Group Board, Glenn Stevens, provided a macroeconomic update. He is expecting a soft landing in Australia and sees a mild rise in unemployment but we are heading towards target inflation. Glenn also commented on the Australian economy having some non-cyclical issues such as the size of the government, productivity and innovation. Productivity in the government sector needs to improve. Glenn went on to speak about the geo-strategic architecture of Australia and the importance of the Australian government spending more on uplifting it especially if we are serious on achieving net zero goals and energy transition. 

Chris Leslie, Senior Managing Director of Green Investment at Macquarie Asset Management, highlighted the unique role infrastructure plays in portfolios. Infrastructure represents the essential assets and services society depends on, from airports and utilities to cell towers and data centers. As an asset class, it has evolved because it fulfils a specific role: enhancing resilience while still allowing investors to participate in long-term growth.

Chris noted that the latest data from the U.S. is pointing to signs of a slowdown, if not a recession. Many investors remain heavily concentrated in the so-called “Magnificent Seven” tech stocks, which has left portfolios vulnerable. Infrastructure offers a pathway to diversify away from concentrated equity risk, providing more stability without sacrificing upside potential.

He illustrated this through Macquarie’s own history. In 2007, Macquarie Asset Management acquired a U.S. cell tower portfolio from Blackstone, recognising the shift of towers from private equity into infrastructure. That same year, Apple released the first iPhone, sparking an unprecedented reliance on mobile data and, by extension, on towers. Macquarie was also early to see a similar evolution unfolding in data centers.

With hyperscalers driving massive investment into these assets, data centers are transitioning into core infrastructure, underpinned by the same kind of long-term, structural demand that transformed towers nearly two decades ago.

 Chris Leslie also spoke about energy transition as a central theme within infrastructure investing, highlighting how it is being driven by excess demand for electricity. The rapid rise of artificial intelligence is creating unprecedented strain on power systems, with hyperscalers like Google and Microsoft actively questioning where their future energy supply will come from. In markets where demand far outstrips supply, investors want to be positioned on the supply side of the equation.

Chris cautioned that in today’s rush to build renewable capacity in the U.S., investors should avoid start-ups. Instead, capital is best deployed with experienced operators, companies with proven track records, established supply chains, safe-harboured projects, and the engineering partners capable of delivering large-scale infrastructure reliably.

At the same event, Ani Satchcroft, Co-Head of Infrastructure, Asia Pacific at Macquarie Asset Management, shared insights on how Macquarie approaches infrastructure investing. She emphasised that more than 300 million people use Macquarie’s infrastructure assets seamlessly every day, underscoring the scale of their impact.

The team considers how infrastructure affects daily life, how communities are evolving, and what they need to move forward. Their role is to match private capital with these community needs, ensuring investment delivers both financial returns and tangible benefits to society.

Ani noted that value creation comes from investing across an ecosystem, understanding how different infrastructure networks interact, and analysing how customers engage with services, from who they choose as a provider to how usage patterns evolve. Leveraging a large dataset built since the 1990s, Macquarie can analyse what has worked historically and apply those lessons to future investments.

Economic News 

More tariff news…

In recent weeks I’ve written about Trump imposing tariffs on India and the public display of unity between Russia, China, and India at the SCO summit. The story has now escalated, with Trump pushing for tariffs of up to 100% on imports from China and India in an effort to pressure them to scale back purchases of Russian oil and force Moscow to the negotiating table over Ukraine. Trump also tried to pressure EU nations to impose 100% tariffs on India and China for its reliance on Russian energy. Yet, in a seemingly contradictory move, Trump is also attempting to de-escalate tensions with India by reopening trade talks, underscoring the complex mix of confrontation and diplomacy shaping global trade policy.

When it was announced on Tuesday that Trump would meet with Modi, the Indian stock market lifted because of the positive signal of renewed goodwill. 

Market Snapshot 

• Australia: The ASX is trading higher today, supported by strength in the banks and miners.

• United States: Equities extended gains overnight, with the Dow +1.4%, S&P 500 +0.9%, and Nasdaq +0.7%.

• Bonds: Yields eased, with the U.S. 10-year at 4.02% and the Australian 10-year at 4.23%.

• Gold: Prices declined overnight.

Key Events Coming Up

• Wednesday, September 17: US Fed Interest Rate Decision

Investment Update

Clients at the firm were previously offered the opportunity to invest in a private equity deal last year.  

The company was PsiQuantum and the investment was accessed through Playground VC Fund I (2015 vintage).

The first entry point was at a valuation of roughly US$2.5 billion, with later investors coming in closer to US$6 billion. Today, PsiQuantum has completed a new funding round that values the company at US$7 billion…. This represents a meaningful uplift from our initial entry, even in a more selective funding environment.

The round was notable not just for its size – US$1 billion in fresh capital – but also for its participants. Among them was Nvidia, the world’s most valuable semiconductor company, investing directly via its NVentures arm. Beyond the capital, Nvidia has committed to collaborate with PsiQuantum across applications, algorithms, and hardware integration. For a company whose approach relies on silicon photonics and advanced manufacturing, this partnership could prove transformative, accelerating PsiQuantum’s path to a utility-scale quantum computer.

Construction of its Brisbane facility is set to begin later this year, with completion targeted for 2027. This facility will anchor PsiQuantum’s efforts to commercialise its technology, supported by both the Australian and Queensland governments alongside global investors such as BlackRock, Temasek, and Baillie Gifford.

AFR Article - PsiQuantum $10B Valuation