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- Central banks pull gold out of US, UK vaults | SpaceX soars past Amazon on Cursor acquisition
Central banks pull gold out of US, UK vaults | SpaceX soars past Amazon on Cursor acquisition
Here's what you need to know today
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The Big Picture
Central banks pull gold from US, UK as geopolitical risks rise. The global gold trade stores a significant amount of the valuable metal in US and UK vaults, but declining trust has seen central banks taking their gold home. France now stores all of its gold domestically after a massive repatriation project, and India has repatriated nearly all of their gold inventory. (FT)
NSW energy customers to pay for Transgrid’s $1.1bn blowout. After a transmission line was finished years behind schedule and at nearly double the planned cost, the NSW transmission company is looking to pass the $1.1 billion budget blowout along to consumers via increased energy prices. (ABC)
China’s economy slows as consumers shrink spending. Retail sales fell 0.6% for the year ended in May, their first fall since the economy reopened after pandemic lockdowns. This is in contrast to rising industrial production of 4.5%, creating a domestic supply-demand mismatch. (AFR)
ASX protects investors with new anti-dilution rules. ASX-listed companies will now be required to have shareholder consent to issue shares worth 25% or more of existing share capital. This comes after the ASX allowed James Hardie to issue an additional 35% of its existing share capital to acquire Azek, causing the stock price to fall more than 34%. (AFR)
Companies in the news
SpaceX soars past Amazon on confirmed Cursor acquisition. SpaceX capitalised on its two-day 40% stock surge, exercising its option to acquire AI coding firm Cursor for US$60 billion in an all-stock deal. Investors clearly supported the deal, as SpaceX’s stock rose another 17% and briefly surpassed Amazon’s US$2.7 trillion market cap before ending the day up 5%. (FT | NYT)
Inpex reaches deal with unions to keep gas flowing. After weeks of strikes and supply disruptions, the Japanese gas giant reached a deal with unions at its gas plants in Western Australia after losing a bid with the Fair Work Commission to stop the strikes. Inpex confirmed vessels headed for Asian markets are being loaded again. (ABC)
Hedge funds bet against struggling European carmakers. Funds have shorted debt issued by Stellantis, Volkswagen, BMW and Mercedes Benz, effectively betting their creditworthiness will decline due to an influx of Chinese competition. One bond issued by Stellantis is the most shorted investment-grade bond in Europe, with over 18% of bond being shorted. (FT)
Kyle Sandilands secures $13m settlement from ARN Media. The former co-star of popular radio show Kyle and Jackie O will receive $12 million in cash and $1.5 million worth of advertising from ARN Media, who Sandilands sued for $85 million after ARN allegedly violated their contract with him. (Guardian)
Pizza Hut gets sliced up in private equity buyout. The pizza chain’s Chinese operations will be sold for $1.7 billion, while all operations outside China will be sold for $2.1 billion. Its sellor, Yum! Brands, started shopping for buyers after several quarters of declining US sales. (BBC)
Hancock Prospecting lays off hundreds from iron ore operations. The world’s fifth-largest iron ore miner will look to lengthen mine life and increase mine efficiency. Iron ore prices are down over 5% this year, adding to pressure to cut costs and grow margins. (AFR)
Have you for your ticket to FinFest 2026?
Early Bird Tickets are selling fast! Don’t miss Australia’s largest finance festival.
Across 5 stages, we’re going to have some of the best speakers and finance experts unpacking how everyone can take control of their money. Whether you’re a beginner or an experienced investor - there will be plenty there for you.
24 October. Carriageworks, Sydney. Secure your tickets today.
No easy wins in the World Cup
One Polymarket bettor is licking their wounds to the tune of $1.4 million after underdog Cape Verde somehow held powerhouse Spain to a 0-0 draw in their World Cup bout. Cape Verde’s 40-year-old goaltender put on a show that allowed Cape Verde to tie the match, which Polymarket had given Spain a 92% chance of winning.
This World Cup is already the most heavily wagered sporting event in history, with prediction markets and betting apps making it more accessible than ever. Hopefully this story reminds bettors there’s no such thing as a sure thing. (AFR)
Diversification still matters, but it doesn’t work the way it used to
Recent market shocks have shown that traditional diversifiers can struggle at the same time, with bonds, equities and even gold moving together. That’s not a one‑off. In a world of more volatile, supply‑driven inflation, correlations are less reliable. Building resilient portfolios now requires more deliberate diversification: layering quality assets, selective alternatives and structural growth exposures, while staying focused on long‑term drivers, not short‑term headlines.
Explore what diversification looks like when traditional assumptions no longer hold. Access the insights.
When is the right time for passive income?
Financial adviser Matt Ingram from Northhaven had some advice for investors who are looking to replace their jobs with passive income.
Should passive income always be the goal? Is it the right goal?
Matt: It's such a personal thing. Of course there's so many factors that come into it. Like when someone comes in and says they want passive income but they haven't maybe bought a house yet, and that is also a goal.
There's a clear order of priorities, right? There's no point in accumulating assets to put into something income producing when you could be using that money to go purchase the home that you're going to raise your family in and live in and so forth.
It's a worthy goal, but it's a very long-term goal and it's something you have to work towards. It's not as though a 33-year-old, unless they're drowning in cash and there's no ways I'm going to say to them, okay, let's focus on passive income now because there's more pressing priorities. So it's often a good goal, but it's a matter of timing these goals and prioritising them.
Want to work with an adviser like Matt to find out if passive income is the right financial goal for you? Fill out the form on our website and we’ll match you with one of our hand-picked advisers to help you get started.
