Here’s what you need to know today

• In a move that would be welcomed by internet users the world over, America’s FTC is pushing a ‘click-to-cancel’ rule, where any business that offers a subscription must make it “at least as easy” to cancel that subscription. As we have seen with EU rules over data privacy, these global platforms tend to try and adopt a single platform for the world, so hopefully whatever the US mandates will be offered to customers globally. (Quartz)
  
  

• Australia’s unemployment rate held steady at 4.1%, with 64,000 people finding work in September. The participation rate - the share of working-age population either working or looking for work - hit a record of 67.2%. This gives Australia one of the strongest job markets in the developed world, and indicates our economy is holding up despite higher interest rates. Expect this to add to the Reserve Bank’s case to delay cutting interest rates. (AFR)
  
  

• While it is great news that the unemployment rate has stayed low and the participation rate has increased, there is a wrinkle in the numbers. 70% of the jobs created in the 12 months to August have been in government-funded sectors like health, education and public service. This suggests government spending may be propping up employment and businesses and consumers may not be holding up as well as the top-line numbers first indicate. (AFR)
  
  

• The NSW Gaming Regulator has decided to allow Star Entertainment to keep its casino license, and has hit the gaming giant with a $15 million fine instead. The decision comes two months after a review found Star unsuitable to operate in NSW. (AFR)
  
  

• Yesterday we wrote that the American investment banks reported strong results to kick off Q3 earnings season on Wall Street. Well you can now add Morgan Stanley to the list as it reported revenue up 16% year-on-year and profit up 32%. (CNBC)
  
  

• Amazon has joined Google and Microsoft in inking direct deals with nuclear energy players. The company has gone down a similar route to Google, signing three deals with companies producing small modular reactors. Microsoft on the other hand, signed a deal with an existing large-scale nuclear power generator. (Quartz)
  
  

• Luxury giant Chanel is now the second largest luxury brand globally, behind Louis Vuitton. The company reported sales of $20 billion, which is almost double its sales in 2020. (Vogue Business)
  
  

• Aircraft companies continue to struggle. Days after Boeing reported it would be cutting 10% of its workforce (about 17,000 jobs), Airbus has announced it will cut 2,500 jobs in its defence and space division. (CNN)

What the…?

There are all kinds of podcasts these days, but here’s a surprising new genre: activist investors. Elliott Management, the hedge fund taking on Southwest Airlines, is launching a podcast “Stronger Southwest” to make their case. Southwest has a special meeting of shareholders on 10 December and Elliott wants to use the podcast to make their case directly to shareholders before then.

Any activist funds wanting to follow in Elliott’s footsteps, reach out. We’d be happy to produce your rabble-rousing podcast. (Quartz)

Investing is a lifelong journey

Here’s what you can learn today.

This is an excerpt from our podcast with Lawrence Lam, titled ‘Expert: Lawrence Lam - Investing in Founder-Led Businesses’ (Apple | Spotify)

Question: What do retail investors often get wrong about the markets? 

They miss the importance of the human side of business, specifically motivation and incentives. Retail investors often focus on whether a company has good management and solid fundamentals, but they overlook the human element.

During my time in investment banking, I witnessed behaviours that most retail investors probably don't consider. For instance, analysts' recommendations come with vested interests, such as investment banks benefiting from stock purchases or transaction volumes.

When reading reports, it’s essential to understand the motivations behind those recommendations. A classic example is annual bonuses, where CEOs under three- or five-year contracts may prioritise short-term gains for a bonus without aligning with long-term investor interests.

Today’s sponsor is Franklin Templeton

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The Brandywine Global Opportunistic Equity strategy has an investment process that seeks “multiple ways to win” through macro, market assessment and stock selection, which has generated highly differentiated outcomes relative to peers.

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