Here’s what you need to know today

• Microsoft signed a 20-year deal with Constellation Energy, to restart the Three Mile Island nuclear power plant in Pennsylvania (site of the 1979 partial nuclear meltdown) that was closed in 2019 as it was losing too much money. If approved by US regulators, the plant would re-open in 2028 and supply energy to Microsoft’s data centres powering AI.
  
  

• Nike’s CEO John Donahoe abruptly quit the sportswear giant, with the share price down 51% since its recent high in November 2021. Elliott Hill, the man replacing him, is a Nike lifer - starting at the company as an intern in 1988 and retiring after being passed over as CEO in 2020. Now he’s back and the market celebrated, up 7%.
  
  

• Britain’s Rightmove rejected the latest takeover offer from Australia’s REA Group (owner of RealEstate.com.au). The bid was about 20% higher than REA’s first offer, and valued Rightmove at A$11.5 billion.
  
  

• The focus is on the Reserve Bank of Australia this week. On Tuesday, the bank will hand down its latest decision on Australian interest rates. It is widely expected to be a hold, with an outside chance of a raise as the bank works to get inflation back under control. With the rest of the world now cutting rates, the pressure is going to mount on the RBA in each subsequent meeting.
  
  

• Markets are also on Trump watch this week, as his lockup period for shares in Trump Media and Technology Group ends. This means he is now free to sell his almost $2 billion worth of shares (about 60% of the company). However, the former President has said he would not sell.
  
  

• Britain is facing hard economic choices. For the first time since 1961, the country’s national debt equalled GDP (i.e. reached 100% of GDP). This increases pressure on the new Labour government to find cuts in the next budget, due to be handed down in October. But with the OECD predicting 0.4% economic growth in 2024 and an ongoing cost of living crisis, any cuts are going to be hard to stomach for the British people.

What the…?

You may know that many country’s have strategic petroleum reserves in case they cannot important more fuel (for example in Australia we hold 27 days of petrol and 32 days of diesel). Well, in Canada, it is not just fuel. The country also has the world’s only strategic maple syrup reserve.

Operating for the past 25 years, the reserve can hold up to 133 million pounds (60m kg) of syrup. But last year it dropped to 16 year low, with just 6.9 million pounds (3m kg).

Investing is a lifelong journey

Here’s what you can learn today.

This is an excerpt from our podcast interview with Dr Mary Manning, Chief Investment Officer, National Reconstruction Fund Corporation.

Mary, you've worked at some of the top funds in the world alongside legendary investors like George Soros and Howard Marks. What are some major lessons you’ve learned from them?

I feel very fortunate to have worked with such iconic investors, especially early in my career. At Soros, I learned the importance of having a broad worldview. My first meeting with George wasn’t in the office but at the Council of Foreign Relations in New York, where world leaders speak. I introduced myself and mentioned that I worked for him.

What struck me was that even at his age, he remained deeply engaged with global events and had a significant perspective. His intellectual contributions on reflexivity and open societies illustrated his ability to connect high-level theories with actionable investment strategies. Very few people can marry those two approaches; most are either big-picture thinkers or tactical traders. Having exposure to someone like him early on was invaluable.

At Oaktree, I learned two key lessons from Howard Marks. First, his intellect is remarkable. After my Ph.D., which focused on African economic development and the impact of epidemics on health, I returned to the firm. When Howard visited the Singapore office, I sat next to him and mentioned my thesis. Rather than dismiss it as irrelevant, he engaged deeply, asking about my conclusions and their implications for healthcare. His ability to understand complex topics quickly is an important trait.

The second lesson is Howard’s skill in guiding the firm’s journey. When I first joined, Oaktree was well-established, but during my time there, it doubled in size and expanded globally. They transitioned from a backdoor listing to a full IPO and ultimately sold the company. Many good investors struggle with running their firms effectively, but Howard exemplifies someone who excels in both investing and managing a business.

Want more? Listen to the full conversation with Dr Mary Manning.

Today’s sponsor is J.P. Morgan Asset Management

This email and its associated content has been issued and verified by Equity Mates Media. J.P. Morgan Asset Management has not reviewed and takes no responsibility for the accuracy of the content of the email or any liability for any statement or misstatement therein.

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