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Here’s what you need to know today

• The Reserve Bank of Australia (RBA) has lowered the official cash rate by 25 basis points to 3.60%, marking its third cut this year. The decision to cut rates was widely anticipated by most economists and the 'big four' banks. (SBS)

  
  

• Donald Trump has signed an executive order delaying higher tariffs on Chinese imports by 90 days, pushing the deadline to 9 November. The decision is aimed at giving both nations more time to negotiate, with a possible meeting between Trump and Chinese President Xi Jinping in October. The current 30% tariff rate remains in place, delaying the increase that could have pushed duties as high as 145%. (Reuters)
  
  

• Seven West Media reported a 62% drop in full-year profit on Tuesday, with broadcast revenue down 8% to $915m, amid continued weakness in the free-to-air television market. However, chief executive Jeff Howard said perceptions of television’s irreversible decline could change as soon as this year, pointing to a 26% rise in streaming revenue from its 7plus app to $166 million. Shares were down 7% after the announcement. (Sydney Morning Herald)
  

• Car Group, the owner of Carsales, Australia’s largest automotive classifieds business, delivered strong full-year results, with Australian revenue rising 8% to $485m and net profit climbing 10% to $275m. Outgoing Car Group CEO Cameron McIntyre is being tipped as a contender for REA Group’s top job, with current CEO Owen Wilson set to depart later this year. (AFR)

  
  

• Sports licensing deals are continuing to smash records. On Monday, Paramount announced it has secured US streaming rights to the UFC for seven years starting in 2026, in a deal worth an average of $1.1b per year. The agreement, which includes 13 marquee events and 30 “Fight Nights” annually on Paramount+, marks the company’s first major move since merging with Skydance in an $8b deal. (Bloomberg)

  
  

• Star Entertainment has agreed to sell its 50% stake in Brisbane’s Queen’s Wharf complex to joint venture partners Chow Tai Fook Enterprises and Far East Consortium, reviving a deal that looked set to collapse earlier this month. Shares jumped over 20% on Tuesday. (Capital Brief)
  
  

• Professional investors are increasing their exposure to emerging market stocks as they hunt for value, amid growing concerns about lofty US valuations. A net 37% of fund managers are overweight emerging market equities, the highest reading since February 2023, according to Bank of America’s monthly survey. (Financial Times)
  

• Europe’s largest bank, HSBC, has warned that 73% of Hong Kong’s commercial property loans are now classified as high-risk, up from $6.5b to $18.1b this year. Almost tripling since the start of the year. The bank pointed to weak retail spending, and persistently low office demand as drivers of the rising risk profile. (Financial Times)
  
  

• Elon Musk has threatened “immediate” legal action against Apple over alleged antitrust violations related to rankings of the Grok AI chatbot app, which is owned by his artificial intelligence startup xAI. Musk said on X that “Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.” (Reuters)

  
  

• In a bid to take on the rise of low-cost Chinese EV rivals, Ford has unveiled a $5 billion plan to make electric vehicles more affordable. The company announced that it will invest heavily in its Kentucky plant and launch a midsize pickup truck, priced from around $30,000 in 2027. (WSJ)
  
  

• Luxury jeweler Fabergé, best known for its imperial Russian Easter eggs, has been sold to US investment firm SMG Capital for $50 million. Seller Gemfields is under financial pressure, with political unrest disrupting its African mining operations. (The Guardian)

What the…?

A Brazilian businessman who sold Jeff Bezos a mansion, is suing the real estate firm for not telling him Bezos was the buyer.

Leo Kryss sold his mega mansion in Miami’s ultra-exclusive Indian Creek Village in 2023 for $79 million, which was $6 million under the asking price.

According to the lawsuit, Kryss claims that Douglas Ellison, who handled both sides of the deal, explicitly told him Jeff Bezos was not the buyer.

Kryss claims Douglass Ellison deceived him and that it was highly material to his negotiations, and his decision on the ultimate sales price, to know whether Bezos was attempting to anonymously acquire the home.

Talk about seller’s remorse. (Quartz)

Investing is a lifelong journey

Here’s what you can learn today.

Investing vs saving

This is an extract from the Get Started Investing episode titled ‘Why saving alone won’t make you rich’ (Apple | Spotify | YouTube)

The difference between 5% and 8%

Ren: Right now in Australia, you're probably getting about 5% from a high interest savings account if you're in the best ones, and people often talk about 8% as the long-term expectation for the share market. People ask what's really the difference between 5% and 8%?

Bryce: And I'm not going to lose my money in the 5% in savings account.

Ren: Exactly. The 5% safe. It's government guaranteed. The 8% is risky and I'm not going to really take the risk of losing my money for a few extra percentage points. Well, we're here to say yes, you should.

Bryce: That's it. The biggest risk is not investing, so let's put some numbers to it. If you were to invest a hundred dollars a week over 30 years, invest or save, you would have invested or saved $156,000. That's what you would've put into it.

At 5%, you would have $346,000 at the end of that 30 year period thanks to the interest that the bank is paying you. However, to Ren’s point ADD an extra 3%, if you were to invest it into the stock market, if you were to get 8%, you would have $590,000 in your investment portfolio. So a pretty significant difference there.

Ren: You've almost doubled your money in 30 years, doubled the amount that you would have in 30 years, $346,000 compared to $590,000. Obviously if you extend the timeline even further, the gap gets even bigger. And that example is generous to high interest savings accounts because it doesn't factor in the tax that you're paying every year on the interest that you are earning, whereas investments are more tax effective.

Bryce: Yeah. It's also a bit unfair on the investing side because 8% historically is a little bit below what we would expect from a very long-term average.

Ren: We could say that for the past 124 years of the Australian stock market with dividends reinvested, the number has been 13% a year. The difference between saving and investing starts getting really big in that scenario.

Want to check out the full episode? All Equity Mates Investing episodes are now released on their own YouTube channel:

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