Here’s what you need to know today

• In a surprising announcement, both Apple and Microsoft announced they would no longer be observers of OpenAI’s board. Microsoft has been an observer since investing $13 billion in the AI company, and Apple was due to start after announcing ChatGPT integration into Apple devices. The two companies did not comment on why, but speculation is they are concerned about increased antitrust scrutiny in the US and Europe.
  
  

• US Federal Reserve Chair Jerome Powell said the Fed would not wait until inflation hit 2% before cutting interest rates. Markets are pricing at 70% chance that the Fed cuts rates in its September meeting.
  
  

• Mining giant BHP will suspend all nickel production until at least February 2027 due to an global oversupply of the metal. Nickel is a critical metal for the clean energy transition but nickel prices have fallen almost 40% over the past 18 months due to cheaper supply from China and Indonesia.
  
  

• The trade spat between China and the EU continues to escalate. China has announced a probe into Europe’s tariffs on Chinese-made electric vehicles. Meanwhile the German government has announced a plan to phase out technology from China’s Huawei by 2026. 
  
  

• Hollywood loves a remake. Some have argued its a sign we live in a creative desert. Others just love a familiar cast of characters. Well this week we saw two more announced: Shrek 5 and The Devil Wears Prada 2.
  
  

• Joe Biden watch continues. The latest news, former Democratic House Speaker Nancy Pelosi suggested the door was still open for a change and long time Democratic fundraiser George Clooney called on Biden to step down. Biden remains committed to running. Meanwhile Trump challenged Biden to 18 holes of golf. Ahh politics.

What the…?

North Korea faces some of the toughest sanctions in the world. They’ve found one novel way to make money: human hair. The hermit kingdom exported 1,680 tonnes of false eyelashes, beards and wigs to China last year, worth around $167m. China then exports these products to markets around the world.

Investing is a lifelong journey

Here’s what you can learn today.

Ask an Advisor: Tax Tips

It’s tax time, so no better time to remind ourselves of the simple steps we can take to minimise the tax we pay on investments.
What is capital gains tax offsetting and how does it work?

We put this question to Charlie Viola:
Charlie Viola is a Partner and Managing Director of Pitcher Partners and the 2024’s number 4 advisor on Barron's Top 100 Financial Advisers

Capital gains tax offsetting involves using capital losses to reduce capital gains, thereby lowering your overall tax liability.

For example, if you make a $10,000 capital gain in a year but also incur a $7,000 capital loss from another investment, you can offset the gain with the loss, leaving you with a net $3,000 capital gain.

You apply any carry-forward capital losses from previous years before applying the 50% CGT discount, if applicable. This can significantly minimise your tax bill when managed correctly.

So in this year’s tax return make sure you’re recording any investments you sold for a loss, because this may reduce your overall tax bill.

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