📈 Canada-USA "at war" over tariffs | Guzman's big turnaround

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The Big Picture

• Canada is “at war” with the US over trade. Those were the words of Prime Minister Mark Carney after the North American neighbours failed to reach a deal over tariffs. The Trump Administration announced it would impose a 50% tariff on $20 billion worth of Canadian goods, while Carney said Canada would retaliate “dollar for dollar” with the new US tariffs. (FT)
  
  

• China shows off robotics advances in Beijing. The 2026 World Robotics Conference and the 2026 World Humanoid Robot Games took place in Beijing over the weekend with a humanoid robot breaking Usain Bolt’s 100m sprint record. (Reuters | AFR)
  
  

• Australia enters its final week of a soft Reporting Season. This week will see the major supermarkets, Qantas and Wesfarmers report their results. So far, the major banks have delivered a pessimistic outlook and retailers including JB Hi-Fi, Myer and Nick Scali have reported weaker trading conditions as Australians manage higher interest rates, energy prices and ongoing inflation. (AFR)
  
  

• US market falls as Treasury yields rise. Last week, the US government increased their buybacks of 30-year Treasuries in an attempt to keep yields down. However, by Friday, yields were rising again and the S&P 500 dropped 1.5% while gold and silver both rose. Investors are demanding higher yields to lend money to the US government as the US national debt crosses $40 trillion and inflation remains above target. (WSJ | CNBC)
  
  

• Bitcoin jumps 22% in a couple of days. On Wednesday, Bitcoin traded around $64,000 USD, by Friday it was above $78,000. Crypto-linked stocks rose on Friday, Robinhood up 14%, Coinbase up 8% and Strategy up 6%.  (CNBC)
  
  

• US accuses Israel of “baiting” Turkey. The US Ambassador to Turkey and Special Envoy for Syria, Tom Barrack, claimed Israel’s attack on an air base in north-west Syria was intended to provoke a conflict with Turkey ahead of Israel’s October election. This goes against Israel’s justification and is another sign of a growing rift between the US and Israel. (FT)

Companies in the news

• Guzman y Gomez posts $27 million loss, but investors love what’s next. The fast casual Mexican chain reported sales of $1.38 billion, up from $1.18 billion last year but made a loss because of costs related to packing up and leaving the US. Investors were pleased with the outlook, particularly the pipeline of new stores growing from 108 to 117, and shares jumped 12% on Friday. (Capital Brief | AFR)
  
  

• Accent Group shares slump as vultures circle. The retailer behind 34 brands in Australia including Hoka, The Athlete’s Foot, Dr Martens and Platypus, saw shares drop 8% as it reported a $14 million loss, down from a $58 million profit last year. The British billionaire behind Sports Direct, Mike Ashley, is looking to buy the company despite Accent’s board rejecting his latest offer. (Capital Brief | Capital Brief)
  
  

• Firmus one step closer despite community objections. The company received council approval for its 288-megawatt data centre on Tasmania’s north coast, despite a 5,800-signature petition calling for it to be rejected. The company already has one data centre under construction in Tasmania but is planning two more as it prepares for a proposed $15 billion ASX listing. (AFR)
  
  

• Samsung and SK Hynix return money to shareholders. The two South Korean memory chip giants have announced huge share buybacks and dividend programs. Samsung will return US$79 billion through buybacks and dividends while SK Hynix will buyback US$29 billion in shares. (CNBC)

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Casinos fined $2.25 million for child gambler

The same week that Parliament passed laws intended to keep gambling ads away from kids, The Star Sydney and Crown Casino Sydney were collectively fined $2.25 million for allowing one minor to enter their casinos and gamble on over 20 occasions.

The 16-year-old boy was even able to obtain a silver membership status at the Crown for his 19 visits in four months. Labor’s new gambling reforms aim to reduce gambling exposure for kids. Keeping them out of casinos might be a good place to start. (9 News)

Investors want income without taking on excessive risk and fixed income could be the answer. With yields still elevated relative to recent history, bonds are once again offering attractive returns alongside genuine diversification benefits. 

PIMCO believes investors can now potentially earn equity-like returns from high quality fixed income, without relying solely on equities. It's why many are reassessing the role bonds can play in a portfolio today. PIMCO is one of the world's leading active fixed income managers, with a broad range of Australian solutions, including actively managed ETFs, designed to help meet different investment objectives.

To learn more about PIMCO's range of income and fixed income solutions, including their active ETFs, visit pimco.com.au. Read the PDS and TMD and consider whether the product is right for you. PIMCO Australia Management Limited is the issuer

China’s tech frenzy

This is an excerpt from Ren’s weekly column on the Equity Mates website. This week he touched on skyrocketing government debt, China’s tech frenzy and a new Arctic trade route. (Read the full column)

There are plenty of questions around the AI trade and whether we’re in a tech bubble. Over in China, there are fewer questions. China is definitely in a tech bubble.

The tech-heavy Shanghai Star 50 index trades at more than 150 times earnings, roughly quadruple the earnings multiple of America’s tech-heavy Nasdaq 100.

Those multiples haven’t stopped Chinese investors buying into new tech listings. New listings on the Star 50 have been debuting at an average price-to-earnings (P/E) ratio of 268.

This week, Chinese tech euphoria reached new heights. Humanoid robotics company Unitree listed on the stock market, with demand for its IPO 8,000 times oversubscribed.

On Wednesday it listed on the Shanghai market and shares jumped more than 600%.

It is currently trading on a 219 P/E ratio. For comparison, Nvidia trades on a 33 P/E.

Part of the excitement for Unitree is how much it is bringing down the cost of humanoid robots. In August 2023, it launched its H1 robot priced at $90,000. Then in May 2024, the G1 model was released for $16,000. In July 2025, it released the R1 at a price previously thought impossible – just $5,900. And the company still reports a 60% gross margin.

Numbers like that are why Chinese investors are getting so excited about AI and robotics.

Want to read what else caught Ren’s eye this week? Head to the Equity Mates website and read the full column.

• Equity Mates Investing: Moderna announced a major skin cancer breakthrough, sending the stock up 177% in one day. We’re looking at what it means for the world and for investors. (Spotify | Apple | YouTube)