Here’s what you need to know today

• Just weeks after being battered by Category 4 Hurricane Helene, America’s Gulf Coast is bracing for another storm after Hurricane Milton rapidly intensified into a Category 5 hurricane in near record-breaking speed. Officials urged residents to start evacuating, with as many as 15 million people are under flood watches across the US state of Florida (NBC)
  
  

• The global price of oil continues to rise, with Brent crude rising 3% to more than US$80. This comes after Brent rose more than 8% last week, the largest weekly rise since January 2023. The oil price reached a five-week high as tensions in the Middle East continue to escalate. (Capital Brief)
  
  

• For the first time in decades, America has seen a drop in obesity rates. According to America’s CDC in 2020 the obesity rate in adults was 41.9%. Their latest data suggests that number is now 40.3%. No prizes for guessing the driver of this reduction: Ozempic and its GLP-1 drug peers. (CBS News)
  
  

• China announced a set of government stimulus that failed to live up to market expectations. Particularly of interest for Australian investors, the iron price fell as a result, down 4%, and Australia’s big iron miners and processors also fell - Fortescue down 5%, BHP down 2% and Mineral Resources down 4%. (AFR)
  
  

• German factory orders dropped 5.8% month-on-month, far more than the 2% expected drop. This is the latest data point that has European officials worried about the strength of the continent’s largest economy. (Bloomberg)
  
  

• The pushback against ESG targets continue. In 2020, British oil giant BP committed to cutting oil and gas production by 40% while rapidly increasing renewable production by 2030. Last year, BP reduced that to a 25% reduction. Now the company is completely abandoning the target and looking to boost oil and gas production in Iraq, Kuwait and the Gulf of Mexico. (Capital Brief)
  
  

• BP isn’t alone in scaling back decarbonisation efforts. German steel giant Thyssenkrupp is reportedly pulling back on its plans to produce green steel using hydrogen as a fuel source. Producing green steel and green concrete remains some of the biggest challenges in the world’s push towards decarbonisation. (Reuters)

What the…?

The United Nations have released a report on the use of encrypted messaging app Telegram by organised criminal networks in Southeast Asia. The report estimates that these networks make between $40 billion and $54 billion AUD each year with the help of the messaging platform.

The founder of Telegram Pavel Durov was arrested in France earlier this year over criminal activity on his platform. He has now agreed to share user data with authorities upon request. (Reuters)

Investing is a lifelong journey

Here’s what you can learn today.

This is an excerpt from our conversation with Kyle Macintyre on the Equity Mates Investing podcast, episode titled Three fundamental rules of investing with Kyle Macintyre (Apple | Spotify)

Question: In a recent ASX Investor Day presentation, you presented the three fundamental rules of investing. What are these three fundamental rules?

These are the same fundamental rules we apply at Firetrail and previously at Macquarie. We've used these rules for the past six years to achieve outperformance for our clients. We believe they are effective. The three rules are: 

1. Every company has a price.

2. Focus on what matters — there’s a lot of noise in investing, from news media to social media and opinions from others. To cut through that, hone in on factors that will drive a company’s earnings and share price in the future.

3. Take a longer-term view — at Firetrail, we consider a timeline of around three years. This period is long enough to differentiate your investment decisions from the market, which typically looks 12 to 18 months ahead. However, it's not so far into the future that it becomes speculative. Three years aligns well with management's strategic goals, helping you make informed investment decisions that differ from other market participants.

Today’s sponsor is Pacific Equity Partners

Private equity has never been easy to get into or out of, until now. As Australia’s leading private markets investor, Pacific Equity Partners has launched the PEP Gateway Program to unlock global private equity for wholesale investors, with regular liquidity.

Top-tier global private equity funds have consistently outperformed public markets. The PEP Gateway Program facilitates investments with some of the world’s best global private equity funds and fund managers.

Visit www.pepgateway.com.au for more information.

 Please refer to the terms and conditions contained in the relevant PEP Gateway Program fund documentation. Liquidity and redemptions are subject to the limitations in each fund’s governing documents. Past performance is not a guarantee of future results. This information is for wholesale investors only and does not constitute an offer of securities or financial products. Always consult with your professional advisers.

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