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- 📈 Global oil reserves near depletion | BHP stock drops as strike begins
📈 Global oil reserves near depletion | BHP stock drops as strike begins
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The Big Picture
Oil prices to rise as global reserves near depletion. The IMF has warned that renewed conflict in Iran will deplete global oil reserves by early 2027, at which point they will no longer cushion price shocks. Commonwealth Bank forecasts oil prices could hit US$150 if the Strait of Hormuz remains closed for 10 weeks — oil currently trades around US$85. (ABC)
Trump’s latest tariff target: Australian lamb. The US trade commission is investigating the extent to which lamb imports, including Australian lamb, threaten their domestic industry. These investigations typically precede new tariffs, spelling bad news for Australian lamb exports, which already face a 10% tariff going into the US. (ABC)
Chalmers instructs financial regulators to prioritise growth. The Treasurer has instructed ASIC and APRA to lean more heavily towards economic growth in their safeguarding of the financial system. This comes as a part of a productivity push and regulatory overhaul aiming to reduce over $10 billion of annual compliance burden faced by Australian businesses. (Capital Brief)
China’s economic growth hits three-year low. Despite announcing three-year-high imports and exports earlier this week, the Chinese economy grew 4.3% year-on-year in the second quarter, down from 5% in the first quarter. Strong chip and EV production have been offset by weak Chinese consumer spending and an ongoing property crisis. (NYT)
Rare Korean rate rise extends Kospi’s losing streak. Korea’s central bank announced its first rate rise in over a year, raising the benchmark rate 0.25 percentage points to 2.75%. Korea’s market index, the Kospi, was already down over 15% in the past month due to chip stock selloffs, and fell a further 6% yesterday following the rate hike. (Korea Herald)
Companies in the news
BHP dips 2% as strike shuts down WA terminal. Over 200 workers have stopped work at BHP’s Port Hedland terminal. The industrial action is estimated to cause up to $50 million of damage to BHP and comes as pay negotiations have broken down between three unions and BHP. Despite announcing record iron ore production, BHP’s stock fell over 2%. (Capital Brief | AFR)
SpaceX bonds approach junk status as selloff passes US$1tn. Out of the 1,450 BBB-rated US corporate bonds with a face value over US$1 billion, SpaceX’s 10-year and 20-year bonds are the worst performing. This comes as investors continue to dump SpaceX’s bonds and stocks alike, which has wiped off US$1.2 trillion from SpaceX’s peak market capitalisation. (FT | FT)
Passive investing boom lifts BlackRock assets to record US$15.3tn. The US asset manager reported a 31% year-on-year increase in revenue and pulled in US$192 billion of capital in the second quarter. Its iShares ETFs have been very popular with investors, with assets under management roughly doubling in the past three years to over US$6 trillion. (FT | AP)
PayPal stock surges 17% on US$53bn acquisition offer. Payments giant Stripe and private equity firm Advent have partnered up to extend a lifeline in the form of an acquisition offer to PayPal, which is down 24% in the past year. The offer values PayPal at a 28% premium above its market cap, causing its stock price to jump over 17% on the news. (Reuters)
IBM CEO admits to missteps as stock drops 25%. CEO Arvind Krishna said the tech firm failed to capitalise on AI-driven demand and warned of lower revenues ahead of its earnings next week. Its stock fell 25% on the announcement, its worst drop since 1972. (FT)
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Trump pivots from Bitcoins to gold coins
President Trump made over US$1.4 billion dollars from his various crypto ventures in 2025, but his latest foray into currencies is tangible in nature. The US Mint will begin striking gold $1 coins with Trump’s face on them.
Despite violating a US law that prevents living people from being on currency, the Treasury Secretary adamantly defended the decision, claiming Trump is emblematic of America’s 250th year of independence. Investors have nearly US$4 billion on Trump’s memecoin since his inauguration — hopefully the gold coin goes better. (NYT)
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Control what you can control
Financial adviser Julie Bullen from Fox & Hare had some words of reassurance for investors worried about shifting government policies surrounding superannuation.
What if the government changes the preservation age to 65 or 70?
Julie: There's always going to be the chance that the government can make changes to different structures. There's already been changes that have been mentioned outside super, the capital gain difference. We cannot make our financial decisions today on the assumption that something's going to change in the future.
If you want to make the most of the money you have available, we need to do it within the rounds of what's available now that's best. If they were to change the preservation age, it's not the ideal if you kind of built your strategy around it, but they're going to give you time. You're going to be able to make some tweaks to the strategy that you've got. Maybe you stop investing towards super in a few years time once you've got your balance to a certain point.
But right now you've got an opportunity that the government says, "Hey, we're going to let you pay less in tax. We're going to help you grow your money.” You may as well take advantage of it while you have that chance.
Want to work with an adviser like Julie to sort out your super? Fill out the form on our website and we’ll match you with one of our hand-picked advisers to help you get started.
