Here’s what you need to know today

• Australia’s unemployment rate ticked up from 4% to 4.1%. The good news is that 50,200 jobs were added in the month, the bad news is that the number of people seeking work grew faster.
  
  

• Domino’s Pizza continued a tough run this year. The pizza franchise is already down 44% year-to-date, but yesterday shares fell 9% after warning the market that it would be closing almost 10% stores in France and Japan.
  
  

• Twiggy Forrest’s green hydrogen dreams are waning. Fortescue announced it would be abandoning its 2030 target for green hydrogen production and would be cutting 700 jobs in their Fortescue Future Industries team.
  
  

• Zip will be back in the ASX 200 on Monday. The company is riding a wave of good news - up 181% year-to-date - and recently told the market it has grown 43% in the US in the last quarter. Riding this wave of good news, the company is doing a $217m capital raise.
  
  

• Donald Trump rattled semiconductor makers after claiming Taiwan stole America’s semiconductor industry and should pay America for its security guarantee. He also warned it would be “very, very difficult” for America to come to Taiwan’s aid if China invaded.
  
  

• US President Joe Biden has COVID. Reports are he is okay, but is following protocol by isolating and cancelling all campaign events. Meanwhile, the push to replace him has not died down. The latest to call for a switch is Adam Schiff, a Congressman who is running for Senate in California.
  
  

• Chinese residential property, the world’s largest asset class, is under stress. Prices fell 4.5% over the past year, the steepest drop in the past 9 years. Chinese property has been in a slump ever since Evergrande defaulted on its debt in 2021.

What the…?

They say pets are becoming a part of the family. Well, soon owners may be taking pet-ernity leave. One-third of millennials and Gen Z’s surveyed said they would take a pay cut to spend more time with their pets. Honestly, we don’t blame them.

Another interesting finding from the survey, owners of golden retrievers spent the most on their pets at an average of $1,780 each year.

Investing is a lifelong journey

Here’s what you can learn today.

This question and answer is an excerpt from our interview with Roger Montgomery, founder and CIO at Montgomery Investment Management

Question: How do you see the role of inflation and interest rates impacting investment decisions in the coming years?

In the coming years, I foresee disinflation persisting, particularly due to the impact of AI and automation on the workforce, which will likely put downward pressure on wages and, consequently, inflation.

While short-term interest rate movements might cause market volatility, the long-term trend is what matters more for investors. If interest rates stabilise or decline gradually, it creates a favourable environment for growth stocks, especially those with pricing power and innovative capabilities.

The key is to maintain a long-term perspective and focus on businesses that can thrive irrespective of short-term macroeconomic fluctuations. Companies with robust growth prospects, high margins, and little or manageable debt are well-positioned to do well even if the economic environment changes. Hence, understanding the broader macro trends—such as technological advancements and evolving consumer behaviours—will be more beneficial than trying to predict each move in interest rates.

You can listen to the full conversation on your podcast app of choice (Apple | Spotify) or watch it on YouTube

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