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Here’s what you need to know today

• President Trump announced Iran and Israel have agreed to peace and labelled the conflict ‘the 12-Day War’. Iran confirmed that it would stop attacks if Israel does the same. Israel is yet to confirm its stance. (ABC News)
  
  

• Both countries then launches strikes at each other after the supposed ceasefire, leading Trump to publicly rebuke each side and say, “We basically have two countries that have been fighting so long and so hard that they don’t know what the f—- they’re doing”. (YouTube) After Trump’s public rebuke both countries have stopped attacks, for now. (NY Times)
  
  

• Virgin Australia is once again listed on the Australian stock market. And it had a great first day with shares up 8%. Qantas also had a good day, up 4%, as easing tensions in the Middle East saw oil prices fall. (Capital Brief)
  
  

• Greatland Gold also debuted on the ASX today. That name will be familiar with those following Bryce’s efforts to turn $500-into-$5k this year. While there was no mention of Antipa Minerals, Greatland had a great first day, up 13%. (Capital Brief)
  
  

• Queensland will introduce a shared equity scheme that will allow first home buyers to get into the market with a 2% deposit. The government will also abolish stamp duty for first home buyers purchasing new builds. These measures are part of the Queensland state budget handed down by Treasurer David Janetzki. (AFR)
  
  

• The NSW Government’s budget deficit has blown out to $3.4 billion. Treasurer Daniel Mookhey presented his budget which projects 2027-28 will be when the budget achieves its first post-COVID surplus. The government is spending big on a presale guarantee for developers to build 15,000 homes and a plan for out-of-home care for children. (AFR)
  
  

• YouTube will likely be added to the Australian government’s social media ban for people under the age of 16 following advice from the eSafety Commissioner. The government had previously given YouTube an exemption on the basis it offered predominately beneficial experiences for young people. The eSafety Commissioner’s latest advice disagrees with that assessment. (Capital Brief)
  
  

• Collins Food shares were up 17% yesterday after the operator of 288 KFC franchises in Australia reported that over the past 8 weeks sales were up 4.9% year-on-year, with particular strength amongst Gen Z consumers. (AFR)
  
  

• The effect of the rising tobacco excise was clear in Metcash’s latest results. Tobacco sales were down 20% year-on-year and are down 40% since 2021. This isn’t because Australians are smoking less, but rather price rises have led to a thriving black market. One study by FTI Consulting suggests illicit sales now make up 39% of the Australian tobacco market. (AFR)
  
  

• In the US, a bipartisan group of Republican and Democratic Members of Congress voiced their support for Australia and the AUKUS submarine agreement. This came after the AFR reported on Monday that the Defence Department review is expected to conclude that US shipbuilding has been too slow to allow the US to sell submarines to Australia in 2032. (AFR)

What the…?

As Jeff Bezos and Lauren Sanchez prepare for their upcoming wedding in Venice, the locals are fighting back. Protesters are planning a hostile reception for the couple and their 250 guests who will be decending on the city for the three-day wedding.

The protestors latest plans? Locals are threatening to fill the city’s canals with inflatable crocodiles to prevent guests reaching the 16th-century hall in the middle of the city where the nuptials will take place.

The Bezos’s don’t seem too bothered. This week they held a foam party on their giant US$500 million superyacht. Parties like that won’t quell the local protestors spirits. (AFR)

Investing is a lifelong journey

Here’s what you can learn today.

Active v Passive funds for Fixed Income

This is an excerpt from our conversation with Sam Watkins, Head of Australia and New Zealand at PIMCO. (Apple | Spotify | YouTube)

Question: There’s always a big debate in investing around active versus passive management. How does that debate play out in fixed income, and why does PIMCO think active management makes sense here?

Look, the first point I'd make is that it's a very worthwhile debate to have. It's a debate that I think shifts through time and depending on what regime that you find yourself in, and certainly is different across asset classes.

Beginning where you did, which is with equities, I think you have to look at the data, look at the historic performance. The data that I would refer to would be Morningstar research that was put out late last year where it shows that over the last 10 years, approximately 40% of active equity managers have outperformed the benchmark.

So you had to be lucky to make sure that you were invested with the right manager and that that manager fell within the 40% every year.

Looking at fixed income, it's actually the opposite story. 75% of active managers have beaten a benchmark over that same timeframe. So you had to be unlucky to choose a manager who was underperforming the benchmark.

So pretty good statistics, pretty good numbers that suggest that active management in the fixed income space has a strong foundation.

Prefer to watch our conversation with Sam? Check out the full length conversation on the Equity Mates YouTube channel:

Today’s sponsor is Scouting Australia Podcast

8 Critical Mistakes from 4 Seasoned Property Investors

Join Sammy Gordon, Equity Mates’ regular property expert, as he sits down with Jimmy Ibrahim, Liam Corey, and Brendan Geoghegan for a deep dive into the 8 most critical property investment mistakes they see time and time again.

From dodgy developments and bad debt to poor advice and mistimed markets, the team shares real stories from the trenches and hard-won lessons every investor should know. Whether you’re just starting out or already building your portfolio, this episode is packed with practical value and real-world experience.

Tune in to this value-packed episode on the Scouting Australia Podcast, available on all your favourite platforms.

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