📈 Government forces data centres to generate as much power as they consume | Wall Street banks smash records on AI boom

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The Big Picture

• Government forces data centres to generate as much power as they consume. Prime Minister Anthony Albanese announced new legislated Australian AI standards yesterday as well as a new Office of AI, and rules requiring large-scale data centres to generate as much power as they consume and minimise water usage. The government is also exploring a new copyright framework designed for AI training. (AFR)
  
  

• Batteries now cheaper than gas plants for peak power. A new CSIRO report has found that batteries are now cheaper than gas at supplying peak power demand for the first time. This comes as surging US data centre demand drives up gas turbine costs while Chinese production continues to push battery prices down. (ABC)
  
  

• Trump backtracks on Strait of Hormuz shipping fee within 24 hours.
  President Trump reversed his plan to charge a 20% fee on shipping through the Strait of Hormuz less than 24 hours after announcing it, declaring the waterway open to all shipping except Iran, which will face a "full blockade." (ABC)
  
  

• US inflation falls but fresh Iran strikes cloud the outlook. US inflation eased to 3.5% in June, down from 4.2% in May, driven by falling petrol prices. However fresh US strikes on Iran sent oil surging to US$87 a barrel, with analysts warning inflation could rebound, potentially forcing the Fed to hold or raise rates. (BBC)
  
  

• China's economy records weakest growth in more than three years. China's GDP grew just 4.3% in the second quarter, its lowest reading since late 2022. This comes as a prolonged property slowdown continues to weigh on consumer confidence. Experts have flagged flagged these figures as a significant deceleration for the world’s second largest economy. (FT)
  
  

• Australia's top CEOs pay revealed in recent report. New data shows the average ASX100 CEO earned $6 million in FY2025, around 55 times the average wage, with five of the top 10 highest earners coming from US-based companies. Life360 CEO Chris Hulls topped the list with almost $48 million in realised pay despite living in the United States, followed by ResMed's Mick Farrell at $35.1m and News Corp's Robert Thomson at $33.6m. (ABC)

Companies in the news

• Wall Street banks smash records on AI trading boom. JPMorgan, Goldman Sachs, Citigroup and Bank of America reported combined equities trading revenues of $19.3 billion. This is 72% higher than a year ago, as the AI-driven trading frenzy and SpaceX IPO fuelled the boom. JPMorgan CEO Jamie Dimon described the environment as "getting close to as good as it gets.” (FT)
  
  

• IBM shares see worst day on record. IBM shares plunged 25% after the company issued a second-quarter earnings warning that fell short of expectations, marking the worst single-day fall in the company's history. CEO Arvind Krishna blamed the results on the software and infrastructure business as clients moved spending toward hardware purchases such as memory chips. (CNBC)
  
  

• DeepSeek eyes fundraise at US$71 billion with IPO insight. Chinese AI lab DeepSeek is in talks for a new funding round at a $71 billion valuation. This would represent a 37% jump from its first-ever round closed in late May as the company is said to be preparing for an IPO in 2027. (FT)
  
  

• Lucid Motors shares plunge on bankruptcy speculation. Shares in the US EV maker fell more than 40% after reports emerged the company was weighing a Chapter 11 bankruptcy filing or going private, with an advisory firm allegedly reviewing the options for the board. Lucid dismissed the reports as "completely false" and shares recovered some ground, closing the day 16% lower. (CNBC)

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Dinosaur Sells for $71m in Record Breaking Auction

A Tyrannosaurus rex skeleton nicknamed "Gus" has sold at a Sotheby's auction for $71 million (US$50.1m), becoming the most expensive dinosaur fossil ever sold at auction. The sale occurred after a 10-minute bidding war between seven buyers blew past its $20-30 million estimate.

It surpasses the previous record of $64 million (US$44.6m) set by a Stegosaurus skeleton bought by hedge fund billionaire Ken Griffin in 2024. Dinosaur fossils have recently emerged as one of the fastest growing segments of the collectibles market. (CNBC)

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An IPO Prospectus Is a Sales Document, Not a Valuation

With SpaceX freshly listed and Anthropic and Canva expected to follow, Bryce joined Jess on a recent episode of Get Started Investing to answer the question every investor is asking right now: Should I buy in? (Spotify | Apple | YouTube)

When a company goes public, it uses investment banks to generate as much excitement as possible and land the highest valuation the market will accept. The prospectus is a core part of that process.

The prospectus is designed to sell the business. The investment banks, the venture capital firms, the early employees, everyone who has been on the journey for years, this is their moment to cash out at the best possible price.

That does not mean the company is bad. It just means the price on day one reflects maximum excitement, not maximum value.

Once listed, the company must report its financials every quarter. The market gets a much clearer picture of what the business is actually worth, and the price adjusts accordingly.

Bryce tells Jess to read the prospectus with scepticism. Compare the claimed valuation against similar listed competitors. And remember patience is a key characteristic of every great investor.

• On Equity Mates Investing, electricity demand is surging and Australia holds some of the world's largest deposits of the critical minerals needed to power the global shift to electrification. Bryce and Ren unpack the investment case for four of those minerals, the biggest growth drivers, and the stocks and ETFs giving investors exposure. (Spotify | Apple | YouTube)

• On Get Started Investing, after years of juggling acting gigs and odd jobs, Patrick discovered investing and became fascinated by building financial security. He's now studying finance, improving financial literacy in the arts, and using investing to create opportunities for his family in Indonesia. Jess sits down with Patrick to hear his story. (Spotify | Apple | YouTube)