Here’s what you need to know today

The Bigger Picture

• Australian inflation comes in hot at 3.8%. This data for December 2025 marks the sixth consecutive month of inflation over 3%. Housing and education were the top drivers, rising by 5.5% and 5.4% respectively. Economists are all-but-certain that the RBA will raise rates at its 3 February meeting. (ABS)
  
  

• US dollar slide boosts Aussie dollar. The US dollar index is down nearly 11% since January 2025 on the back of fears about US government spending and debt levels. Inversely, the Australian dollar reached over 70 US cents for the first time in 3 years. (ABC)
  
  

• Developed economies hold record debts. Six of the G7 countries now have greater debt than GDP, raising concerns that further borrowing in developed economies could drive up interest rates for consumers. (NYT)
  
  

• US consumer confidence hit 10-year low. Despite household spending and overall economic growth remaining strong, the US consumer confidence index hit a 10-year low. This coincides with UPS, a shipping company, cutting up to 30,000 jobs due to decreased package volumes from Amazon, its largest customer. (FT | FT)
  
  

• India and EU sign “mother of all deals”. The trade deal will affect nearly 2 billion people, double EU exports to India by 2032, and drop tariffs and import taxes on a myriad of Indian goods. The deal comes as Trump pursues tariffs against both India and the EU. (ABC)
  
  

• Asian markets replace US demand for Canadian oil. Canadian oil exports to China have quadruped in the past year as Canadian exporters diversify away from the US amidst ongoing trade tensions. With Canadian Prime Minister Carney announcing a new strategic alliance with China this month and Trump threatening 100% tariffs on Canada, this trend is likely to continue. (FT)
  

Companies in the news

• Amazon-Harris Farms to challenge Coles, Woolies. Amazon has inked a deal to deliver fresh food from Harris Farms to Sydney households. The grocery delivery wars are heating up in Australia with Aldi inking a similar deal with DoorDash and Coles and Woolworths investing heavily in grocery delivery. (AFR)
  
  

• Amazon goes all-in on grocery delivery. Amazon is also investing heavily in grocery delivery in the US, after same-day perishable grocery delivery sales have grown 40-times in the past year to US$150 billion. To focus on grocery delivery, Amazon will also close all 72 Amazon Go and Amazon Fresh convenience and grocery stores. (AP)
  
  

• Boeing bounces back with strong quarter. Sales surged almost 60% in the fourth quarter and the company made 160 commercial deliveries, its most since 2018. Boeing results have been down since 2018 due to two 737 MAX crashes. (WSJ)
  
  

• LVMH faces difficult 2026 on flat earnings. The world’s largest luxury company reported revenues declined 1% year-on-year. The luxury industry has been suffered in recent years, and LVMH CEO Bernard Arnault warned “2026 won’t be simple”. (CNBC)
  
  

• Meta tests paid subscriptions. Users of Instagram, Facebook and WhatsApp will be able to pay for AI tools including Meta’s Vibes video generation and AI agents. This follows a UK test in September where Meta offered an ad-free subscription version of Instagram and Facebook. (BBC)

  
  

• Mastercard claims ecommerce breakthrough. The payments giant claims to be the first in Australia to use agentic AI to purchase something online. An autonomous bot purchased movie tickets for Zootopia 2 and a trip to Thredbo in a preview of what Mastercard believes is the future of online shopping. (Capital Brief)

What the…?

Move over Labubus — Crying Horses are going viral. A Chinese toymaker’s mistake produced a small horse plush with an upside-down smile. Rather than demanding refunds, consumers fell in love with the sad-looking horse. Several viral pictures led to the toy quickly selling out, causing its maker, Happy Sister, to ramp up production to meet the surging demand.

Young workers resonated particularly strongly with the pitiful pony, stating that it “suits the spirit of today’s corporate slaves”. The Chinese zodiac holds that 2026 is a Year of the Horse, and if Happy Sister can keep up with demand, it may be the year of the Crying Horse. (BBC)

What’s got us thinking?

Investing is a lifelong journey. Here’s what you can learn today.

Investing for kids and family trusts

This is an excerpt from an Ask an Adviser episode on Equity Mates Investing with Alex Luck and Scott Taylor from Everest Wealth. (Apple | Spotify | YouTube)

“What’s the best way to invest for kids, and when should I use a trust?"

This is a question we get quite frequently. A lot of our clients have young kids or are thinking about having kids. So, what are your options? Option one is invest it in your own name. If you have a spouse who’s earning on a lower tax bracket, then that can be a good option.

A lot of products these days have a kids’ account. That’s an informal trust. You can either use your tax file number—meaning the dividends are in your tax return—or use your child’s TFN. If you use yours, transferring it to them at 18 is a capital gains event. If you use theirs, you pay more tax along the way, but there's no CGT later.

Then there’s setting up a formal trust. You’d generally do that if you think there’s going to be income fluctuations. That lets you distribute income to the lower earner—or even to adult kids at uni. But trusts have setup and ongoing costs, so you’d only do it if you think there’s a long-term benefit.

Are you interested in speaking to an adviser? Fill out the form on our website and we’ll match you with one of our hand-picked advisers.

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