Here’s what you need to know today

• Silicon Valley and Wall Street are in a panic after Chinese company DeepSeek released their AI model DeepSeek R1. DeepSeek R1 has been able to achieve similar levels of performance as OpenAI and Google’s models at a fraction of the cost and the computing power. This is causing a rethink on spending required for AI and saw a selloff of US tech stocks, led by Nvidia down 17% (NY Times)
  
  

• Novo Nordisk shares opened up 12% after it announced a clinical trial of its next-generation anti-obesity drug, amycretin, saw patients lose 22% of their body weight in 36 weeks. This is compared to Ozempic’s active ingredient, semaglutide, phase 1 results that saw a 15% fall in 68 weeks. (Reuters)
  
  

• The TikTok saga continues. With a 75-day reprieve from the US ban, it now appears that Larry Ellison’s software giant Oracle is leading the race to become ByteDance’s partner in the US. (AFR)
  
  

• The first of President Trump’s tariffs have been applied. After Colombian officials rejected two flights carrying migrants from America, the US President has instituted 25% tariffs on any goods entering the US. If Colombia continue to refuse to accept repatriation flights, Trump threatened tariffs would be raised to 50% in one week. (ABC News)
  
  

• American corporations are having mixed reactions to the new Trump administration, as clearly seen in response to corporate Diversity Equity and Inclusion (DEI) initiatives. Target has joined the many large companies including Walmart, McDonald’s, Meta and Google in cutting its DEI programs (Quartz) while retail competitor Costco has doubled-down on its plans. (Quartz)
  
  

• It’s not just on DEI initiatives, corporate America has been struggling to keep up with Trump’s flurry of executive orders. The AFR has the story of how America’s largest companies have managed Trump’s first week. (AFR)
  
  

• UnitedHealthcare have appointed a new CEO, two months after CEO Brian Thompson was killed on the streets of New York. Long-time executive Tim Noel will be taking over the head roll of America’s largest health insurer. (Fortune)

What the…?

Is Ukraine scamming Russian pensioners into blowing up ATMs? Ukraine may have discovered the most unconventional weapon of war: scam phone calls.

Reports out of Russia suggest Ukrainian scam callers are convincing older-Russians that they are from Russia’s security services and ordering them to torch a location to avoid punishment. It seems crazy. But turns out so crazy, it just might have worked. (AFR)

Enjoy this email? Help us make it even better in 2025!

Every year we survey the Equity Mates community as we plan the year ahead. The insights really do matter, last year it prompted us to move this email to daily, focus more on YouTube and develop a new show (more on that in the coming months).

So if you enjoy what we do, and want to help make it better, we have a request: help us by completing this year’s Equity Mates Community Survey (Survey Link).

Investing is a lifelong journey

Here’s what you can learn today.

Community Question: I’m early in my career, and earning a reliable income. What is a critical financial skill I should work on to ensure I set myself up?

We put this question to Ben Wauchope, Financial Adviser and Managing Director at Wealth Health Co.

When you first begin earning a reliable income, cash flow management is the critical financial skill that will help you set-up, and develop strong financial wellbeing. Here are considerations to help set-up good cash-flow management:

1. Control your spending: Develop the discipline to live within your income so that you don’t fall into bad financial habits — including debt traps such as spending money you don’t have on credit cards or buy now pay later schemes.

2. Prepare for emergencies: Once you learn to limit your expenses to your available income, you can then start building savings into your budget. Your emergency fund will have the first claim on your savings. Building an emergency fund is an urgent and essential task.

3. Invest in your future: Initiating some sort of investment is an important task at this stage. Investing now is about building good habits and putting compound interest to work over the next 30+ years. If purchasing your first home is on the goals list, consider making additional super contributions as part of the First Home Super Saver Scheme.

4. Consider insurance: Unless you have dependants, life insurance isn’t vital at this stage, however, income protection and basic health insurance are important considerations (especially if you’re over the Medicare levy surcharge income bracket).

5. Stay on top of your debts: How to best service any accumulated debt that you may have, such as student loan(s), is also an important element, as is controlling your use of debt (think credit cards). Forming bad behaviours and/or any one-off mishaps can have long-term consequences on your financial future.

Want to speak to a financial adviser? Fill out the form on our website and we’ll match you with an adviser suits your needs.

Today’s sponsor is Australian Property Scout

Join Sammy Gordon, Equity Mates’ regular property expert, as he is joined in the studio by investors Kevin and Carmela who built themselves an impressive $5.95 million property portfolio through strategy, perseverance against the odds and hard work.

With $2 million generated in net equity they are well on their way to achieving their goal of $200k in passive income to allow Carmela to step back from working and allow them both to spend more time with their young family. This episode is truly inspiring and shows what can be achieved if you set a goal and commit completely.

Tune in to Scouting Australia on all your favourite listening platforms. 

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