Here’s what you need to know today

• Mining is 14% of Australia’s GDP, and it is struggling. Treasurer Jim Chalmers is preparing to fly to China, the first Treasurer to do so since 2017, to sure up the export market as falling resource prices threaten to blow a $4.5 billion hole in the budget. At the same time, relations between the mining industry and the government continue to fall, with the industry warning Prime Minister Anthony Albanese, “Undermine it [the mining industry] at your peril”.
  
  

• It’s not just Australia’s economy that is struggling. China has just seen a record low foreign direct investment flow into the country as the domestic economy slows and investors worry about tariffs and trade wars.
  
  

• If Monday’s Parliamentary Question Time is anything to go by, Australia’s economic debate has descended into ‘what’s worse: inflation or interest rates’. To keep the story going, the AFR have answered the question. Turns out inflation has wiped out 4.4% of income gains for the average Australian while higher interest rates eroded 1.3%.
  
  

• Continuing the theme of politicians and the economy - the National Party got itself in a spin when Shadow Transport Minister Bridget McKenzie suggested the government break up Qantas and Jetstar. Within hours, Nationals leader David Littleproud walked that suggestion back.
  
  

• Between the time we write this and the time you read it, Apple will have unveiled their new iPhone 16 which will feature their ‘Apple Intelligence’ AI suite. Apple share price is up 28% over the past 6 months as investors have grown excited about the world’s largest tech company getting into the AI arms race. If their AI announcements disappoint, expect the share price to fall.
  
  

• After market 4WD parts specialist ARB is buying 4 Wheel Parts for A$45 million as it pushes further into the US market. ARB has doubled in value over the past 5 years as the Australian accessories manufacturer has successfully expanded overseas.
  
  

• Selena Gomez is now officially a billionaire. Bloomberg have added the celebrity to their billionaire’s index with a net worth of $1.3 billion. At just 32 years old, she is one of the youngest female billionaires on the list and one of the youngest self-made female billionaires in history.

What the…?

This is less ‘what the’ and more ‘good news’: In the US, teen vaping has hit a 10 year low. 6% of middle- and high-school age students use vapes, down from 8% last year and far below the peak of 20% in 2019.

Investing is a lifelong journey

Here’s what you can learn today.

The Palace Coup at the Magic Kingdom

The by-line of this New York Times article says it all: The inside story of how Bob Iger undermined and outmaneuvered Bob Chapek, his chosen successor, and returned to power at Disney.

Bob Iger was a legend of Disney. 15 years as CEO, as he oversaw some of Disney’s biggest acqusitions - Marvel, LucasFilm, 20th Century Fox, Pixar - and was so well-known that he was knighted by the Queen and was talked about as a possible Democratic candidate for US President.

So when he stepped down in 2020 and was replaced by his long-time executive Bob Chapek, those were big shoes to fill. Less than two years later, in 2022, Disney’s board fired Chapek and reinstated Iger as CEO. This article from the New York Times has the wild inside story.

As Disney gears up to replace Bob Iger again (they have engaged a headhunter with Iger’s expected retirement date of 2026), you’d have to be nervous as the next Disney CEO. Bob Iger is 73, and if the age of US Presidents is anything to go by, that gives him plenty of time to undermine the next CEO as well.

Today’s sponsor is iShares by BlackRock

With iShares S&P ETFs like IOZ, IVV and IOO, you can get low-cost access to hundreds of the world’s largest companies in a single trade to help diversify your portfolio and help reduce the stress of selecting single stocks. Visit blackrock.com.au/ishares for information about their ETF range, or visit nabtrade.com.au to explore further insights, education and tips for getting started with ETFs.

Want more Equity Mates?