Enjoy this email? We’d love you to forward it to someone else who may enjoy it.

Forwarded this email? You can sign up here. 

Here’s what you need to know today

• Reserve Bank of Australia governor Michele Bullock has sent a clear signal that an interest rate cut at the next RBA meeting is not a sure thing (as markets and bank economists are predicting). Bullock warned that the RBA’s preferred measure of inflation may not be falling as quickly as anticipated and suggested Australia’s Central Bank would be willing to wait. (AFR)
  
  

• The Philippines is the latest country to strike a trade deal with the US. According to the White House, the Philippines have agreed to not tariff US imports and to continue to work with the US militarily. In return, the US will drop its proposed tariff rate from 20% to 19%. (CNBC)
  
  

• America’s stock market hit all-time highs once again after the White House announced trade deals with Japan, Indonesia and the Philippines, with reports that a deal with the EU was also imminent. It is funny how investor psychology works. While three months ago the prospect of tariffs was a cause for panic, now the slight lowering of tariffs has traders euphoric. (Reuters)
  
  

• As America’s Liberation Day tariffs are about to be reapplied, the world’s major economies are looking to build alternative trading relationships. The UK and India have signed the UK’s largest trade deal post-Brexit, with Britain eliminating tariffs on 99% of Indian products and India eliminating tariffs on 92% of British products. Also this week, China’s President Xi Jinping is hosting European Commission President Ursula von der Leyen in Beijing. (The Guardian)
  
  

• Tesla reported its largest drop in quarterly revenue in more than a decade. Revenue was down 12% to $22.5 billion, while profit fell 16% to $1.2 billion. Shares were down 4% after hours. (Quartz)
  
  

• Adding to the bad news for Tesla, data from the California New Car Dealers Association reported a 21% decline in new Tesla sales for the quarter. This was Tesla’s steepest sales drop in two years and was the seventh-straight quarterly drop in one of the most important markets for electric vehicles. (Quartz)
  
  

• Alphabet’s second quarter results beat expectations. The Google-parent company reported revenue of $96.4 billion, up 7%. Notably for investors worried about AI disrupting Google Search, Alphabet reported “Search delivered double-digit revenue growth”. (The Guardian)
  
  

• More than 100 aid organisations, including Oxfam and Médecins Sans Frontières, have said that “mass starvation” was spreading in Gaza while the UN Secretary-General Antonio Guterres said the situation was a “horror show” that was “without parallel in recent times”. The Israeli government pushed back, arguing, “There is a man-made shortage [of food] engineered by Hamas”. (SBS)
  
  

• Reddit’s WallStreetBets subreddit is back in the headlines as meme stocks capture headlines. Krispy Kreme and GoPro are the two names to watch, up 66% and 81% respectively in the past month. (Bloomberg)

What the…?

Last week, Elon Musk’s AI chatbot, Grok, captured headlines for praising Hitler and the Nazis while calling itself MechaHitler. Elon later explained the bot was "too compliant" and "too eager to please" so had been manipulated into those views.

However, it was surprising when just a few days later, xAI, launched its new program ‘Grok for Government’. Headlining this new program is a $200 million contract signed with the US Department of Defence.

Which has some people asking whether a bot that be manipulated by a few users on Twitter is ready to help manage some of America’s most sensitive national security challenges. (BBC)

Investing is a lifelong journey

Here’s what you can learn today.

Getting on top of your spending

Community Question: What are some key areas I can focus on to reduce cost of living pressures? How are you advising your clients about this?

We put this question to Jane Mitchell, Senior Financial Adviser at Esencia Wealth.

With cost of living on the rise many people can agree it’s a painful time for the family.

It's natural to start being concerned about how to cover your monthly costs. Groceries, rent, mortgages are all going up, clients worry their wages aren't covering the increase and they don't have enough savings in the bank.

In times where your cashflow position becomes tight or you want to rein in spending, it is always a good idea to look at your cost of living.

Here are some ways, to help give you back control and reduce your money worries:

1. Review your current expenses.

We all think we know where our money is going and what we spend, but the reality can be very different.

• How much are you spending on entertainment, dining out, food deliveries like Uber Eats?

• Are there costs, discretionary spending you can cut back on that will ease your cashflow? These add up and could be better put towards savings.

• How often are you shopping online?

• Review your subscriptions, energy, car insurance, internet and phone plans, check are there savings with better deals elsewhere.

• Make a budget and stick to it. You can do this!

Establish a budget for your current lifestyle, track your spending, reduce your overspending. Look at your bank account and credit card statements, put the expenses into the budget tool and you will easily see where the savings can be made.

2. What are the direct debits you have coming out of your accounts?

• Set aside a fixed amount from each pay into a separate account to cover your bills, rent and essentials. Reduce the opportunity for overspending.

• By keeping a budget, you are holding yourself accountable and forcing yourself to improve your spending and savings habits, each week.

• Moneysmart.gov.au have a great budget tool, very easy to use.

• Saving for the unexpected and build a buffer:

Once you have identified things you can cut from your spending, you can build a budget to gradually improve your financial position and build emergency funds for unexpected expenses.

3. Change your habits

The last thing you can do if you are still struggling is looking at changing your habits. If you routinely buy takeout, go to the movies, drive rather than take public transport, and partake in recreational activities that your budget simply can’t afford, consider making changes that better align with where you want to go financially.

Do you think it is time to speak to a financial adviser? Fill out the form on our website and we’ll match you with one of our hand-picked financial advisers.

A message from Scouting Australia Podcast 

Inside the Mind of the Top 1%

The Top 1% Podcast dives into the habits, strategies, and mindsets of high performers across business, sport, and life. Each episode uncovers the habits, strategies, and mindsets that set these extraordinary individuals apart.

In this episode, Equity Mates regular Sam Gordon is joined by Mike Kellett, founder of Macro Mike, to unpack how he built a multi-million-dollar brand from his kitchen — overcoming failure, financial setbacks, and personal loss along the way.

Want more Equity Mates?