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- 📈 Australia gets a pay rise | IDP Education falls 46% in a day
📈 Australia gets a pay rise | IDP Education falls 46% in a day
Here's what you need to know today
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ChatGPT’s image creation of Australian workers celebrating Fair Work’s decision to increase the minimum wage by 3.5%
Here’s what you need to know today
Australia’s minimum wage will be raised 3.5% from 1 July. The Fair Work Commission’s decision will impact the wages of 2.6 million Australian workers on minimum award rates. The increase takes the national minimum wage to $24.95 an hour or about $948 a week. (AFR)
IDP Education, the ASX-listed company that helps international students study abroad, fell 46% yesterday after sharing it expects student placement volumes to decrease 28-30% and language testing volumes to decrease 18-20%. IDP operates in the UK, Australia, Canada and the US and it noted the environment is increasingly negative for international students in all 4 of those markets. (Capital Brief)
Two days after US President Trump claimed China “totally violated” its trade deal, China claimed America has “severely violated” the same deal. This war-of-words seems to suggest the 90-day negotiating window opened by tariff reductions may not lead to a further agreement. (BBC)
A second round of peace talks between Russia and Ukraine last for a little more than an hour as officials acknowledged minimal progress. The negotiations came after Ukraine’s audacious drone attack that destroyed at least 41 Russian long-range bombers. (Reuters)
Newly re-elected Liberal MP Tim Wilson and prominent Australian fund manager Geoff Wilson were instrumental in leading the campaign against reforms to negative gearing and franking credits in 2019. It appears they’re getting the band back together as Wilson and Wilson prepare to fight Labor’s proposed Superannuation tax changes. (Capital Brief)
European leaders reacted to Karol Nawrocki winning the Polish Presidential election. Nawrocki, a Trump-endorsed, nationalist candidate, was celebrated by Europe’s far-right with France’s Marine Le Pen calling the victory a “disavowal of the Brussels oligarchy”. Meanwhile, the European Commission said it was “confident” liberal reforms pursued by Poland’s government would continue despite the result. (Politico)
British Prime Minister Sir Keir Starmer said the UK was moving to “war-fighting readiness” as he announced plans to build up to 12 nuclear-powered submarines, refresh its nuclear weapons stockpile and build at least six munitions factories. The context for these announcements is fears of continued Russian aggression. (CNN)
It appears that Elon Musk is trying to distance himself from the Trump Administration. In an interview with CBS he said, “It’s not like I agree with everything the administration does” and went on to say, “I’m a little stuck in a bind, where I’m like, well, I don’t wanna, you know, speak up against the administration, but I also don’t wanna take responsibility for everything this administration’s doing.” (Quartz)
What the…?
Robyn Denholm, the Australian chair of Tesla, has one of the more difficult jobs in corporate America - trying to wrangle Elon Musk. Denholm has come under pressure recently after it was leaked that the Tesla board had engaged a recruiting firm to look at a CEO succession plan and a group of large investors wrote to her demanding that Elon work at Tesla at least 40 hours a week.
However, don’t feel too bad for Denholm. The New York Times have reviewed her sales of Tesla shares and found that since becoming Chair in 2018, Denholm has made more than US$530 million in profit from selling her Tesla shares. (NY Times)
Investing is a lifelong journey
Here’s what you can learn today.
Why rebalancing matters
This is an excerpt from a recent Get Started Investing episode on the how you can approach rebalancing your portfolio. Check out the full episode (Apple | Spotify | YouTube)
Bryce: This [conversation about rebalancing] is actually very pertinent for me because it happened to my portfolio. My geared Australian ETF and geared US ETF became way out of whack.
We spoke to an expert, Charlie Viola, about this and his number one reason for rebalancing is because it keeps your risk profile consistent. If I let my US run and become far larger than my Australian, I've become overexposed to that part of the market compared to my others. And so my risk changes.
Ren: And if you think about it from a practical point of view, again to bring it back to my portfolio, the reason that I have that equal split across those four geographies [Australia, US, Asia and Europe], my view is we don't know where the next leg of growth in the global economy will come from.
The US has outperformed for the last 10 years, but we don't know which will outperform for the next 10. And so I want to be exposed to the majority of the world, but if you let your winners run too much, then you're overexposed to last decade's winner, and then you might not have enough of your money in what could be the next decade's winner. So it's both about keeping your risk in line, but also just aligning your investing portfolio back to your thesis and your goals.
Bryce: Another reason is that it actually locks in some of the gains that you've made and then allows you to buy more of the underperformers. Again, classic example, selling my leverage positions locked in those gains that I'd made and I diverted them to Europe and Asia. So you're buying some of those underperformers.
Get Started Investing now has its own YouTube channel. Check out the full rebalancing episode here:
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