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Here’s what you need to know today

• Elon Musk’s artificial intelligence startup xAI is reportedly planning to raise an additional US$4.3 billion. This comes on top of US$5 billion it raised in debt earlier this year. Potential investors have been told the company will be valued at US$80 billion, the third of Elon Musk’s companies to reach that valuation (after Tesla and SpaceX). (AFR)
  
  

• Cultivated meat company, Vow, has received Australia-first approval to sell its products in Australia and New Zealand. Cultivated meat is the new term-of-art for lab-grown meat. Vow’s first product that will sell in Australia is cultured Japanese quail. (Capital Brief)
  
  

• In a series of social media posts, US President Trump called on Iran to agree to an “UNCONDITIONAL SURRENDER” and warned that America knows the location of Iran’s Supreme Leader Ayatollah Khamenei, and that his patience was “wearing thin”. (NY Times)
  
  

• Israeli forces killed at least 59 people waiting to receive aid in Southern Gaza. Reuters reported that an Israeli tank fired two shells into a crowd of people. (Reuters)
  
  

• Optus has agreed to pay a penalty of $100 million after admitting it acted unconscionably when selling products to vulnerable customers. The company admitted it sold phones to more than 400 customers, many vulnerable or experiencing disadvantage, that they did not want or need, or couldn’t afford to use. (ABC)
  
  

• Embattled union CFMEU has lost its High Court challenge to the changes to the Fair Work Act that forced the construction division of the Union into administration. The High Court’s 7 Justices unanimously backed the government’s legislation. (Capital Brief)
  
  

• It wasn’t just Australia’s Anthony Albanese that left the G7 in Canada disappointed. Japan’s Prime Minister Shigeru Ishiba's effort to get the US to relax tariffs and save his own political future appear to have fallen flat. Ishiba told reporters, “Yesterday's meeting with President Trump confirmed that we still have discrepancies in our understanding.” Meanwhile Trump told the press, “We're just going to send a letter saying this is what you're going to pay otherwise you don't have to do business with us.” (Reuters)
  
  

• The Strait of Hormuz has become front-of-mind as the critical oil shipping lane that handles almost a fifth of the world’s oil faces disruption from the Iran-Israel conflict. To make matters worse, on Tuesday, two oil tankers collided and caught fire near the Strait. So far it has not interrupted shipping traffic. (AFR)
  
  

• American Immigration agents arrested a candidate in New York City’s mayoral election after the candidate, Brad Lander, was escorting an undocumented immigrant through immigration court. This comes a week after US Senator Alex Padilla was handcuffed by FBI Agents at a press conference in LA. (AFR)

What the…?

As US-China trade tensions have escalated, we’ve heard a lot about critical ‘rare earth minerals’. Here’s an example of one rare earth mineral: samarium.

Samarium magnets can withstand temperatures hot enough to melt lead without losing their magnetic force, making them critical for military equipment like missiles, fighter jets and bombs. Lockheed Martin is the largest American user of samarium, installing about 50 pounds (22.6kg) of it in every F-35 fighter jet.

Here’s the problem for the US: the world’s entire supply of samarium is controlled by China. (NY Times)

Investing is a lifelong journey

Here’s what you can learn today.

Life insurance: Stepped or level premiums?

Community Question: How do stepped versus level premiums work in Australian life insurance policies, and at what life stage might each option make more financial sense?

We put this question to Phil Thompson, financial adviser and founder of Skye Wealth

When choosing life insurance, one of the biggest decisions is whether to go with stepped premiums or level premiums, now called variable and variable age-stepped but for simplicity sake, I’ll say stepped and level. The difference lies in how your premiums are structured over time, impacting affordability in the short and long term.

Stepped Premiums (variable age-stepped)

• Lower initial cost – Premiums start cheaper but increase annually as you age.

• Good for short-term affordability – If you plan to hold the policy for only a few years, this can be cost-effective.

• Premiums can rise sharply over time – By the time you’re older (50+), your premiums may become significantly more expensive than when you first took out the policy.

Level Premiums (variable)

• Higher upfront cost – You pay more in the early years, but premiums can remain relatively stable.

• More stable premiums in the long run – If you plan to hold insurance for 15+ years, this option may save you money.

• Good for long-term financial planning – Ideal for families, homeowners, and business owners who need stable premiums.

 Which one should you choose?

• Young professionals or people on a tight budget – Stepped premiums can be suitable, as they offer affordability when financial commitments are high.

• Families and those with dependents – Level premiums may be better, as they provide predictable costs over time.

• Business owners and long-term planners – Level premiums can offer stability for those with ongoing financial obligations.

Most Australians opt for Stepped premiums due to lower starting costs and insurers offer additional discounts on stepped premium, but many who know they plan to maintain cover for the long term opt for Level premiums. At some point, Level premiums might even become cheaper than Stepped premiums. And by the end of the policy term, the total cumulative Level premiums may end up being less or more than the total cumulative Stepped premiums.

Interested in getting Phil and the team at Skye Wealth to review your insurance coverage? Fill out the form on our website and we’ll put you in touch.

Today’s sponsor is HBF

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For more details and a free tax calculator check out the HBF Tax Hub.

*New members who start eligible combined cover by 17 July 2025 on fortnightly monthly direct debit. 14 weeks free applied over 26 months. T&Cs apply.

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