Here’s what you need to know today

• Australia’s unemployment rate rose to 4.2% in July. While that sounds bad, the economy actually added 58,200 jobs it was just that the number of Australians looking for a job rose faster. This follows 50,200 jobs added in June, suggesting businesses are holding up okay.
  
  

• As Australia’s earnings season continues, here’s your quick look at companies that caught our eye yesterday. Goodman Group reported that data centres now make up 40% of its $13 billion development pipeline. The energy majors AGL and Origin Energy both reported revenue falls but profit growth. Treasury Wine Estates is preparing to sell some of its cheaper wine labels, as it reported 75% of its profit comes from Penfolds and a luxury wine portfolio in the US. Telstra said it was open to selling its 35% share of Foxtel if News Corp can find the right buyer.
  
  

• In the US annual inflation fell to 2.9%, down from 3% in June and at the lowest level in more than 3 years. That data was news to the ears of economists, saw the S&P 500 tick up 0.4% in a day and makes a US rate cut in September all the more likely.
  
  

• Mars has agreed to buy Kellanova for US$36 billion, making it one of the largest food industry deals we’ve seen. Mars, a giant of chocolate and pet food, will be adding Kellanova’s chips and packaged food brands including Pringles, Kelloggs, Pop-Tarts, Cheez-It, Eggo and Rice Krispies Treats.
  
  

• Australia’s mining industry can’t catch a break. With nickel and lithium already in a slump, iron ore continues to fall. China’s steel mills have reduced production by 9% and as a result the iron ore price has fallen below $94 USD a tonne, down 33% this year.
  
  

• Troubled asset manager Magellan Financial Group saw shares jump 8% after it announced it had acquired 29.5% of Vinva Investment Management, an Australian quantitative investment firm.

What the…?

Rates of cigarette smoking continue to hit record lows. In the US, just 11% of adults said they smoked a cigarette in the past week. Along with 2022, this is the equal lowest rate since Gallup started recording it in 1944. In that year, 41% of US adults said they smoked.

The biggest drop has been in young people. In 2003, 35% of adults under 30 had smoked in the past week. Now, that is just 6%. The bad news, however, 18% of that age group now vape.

Investing is a lifelong journey

Here’s what you can learn today.

Two quick fire questions from our interview with Professor Scott Galloway

Question: What advice do you have for students going into university to help them choose their degrees and future careers wisely?

Students should focus on fields where they can develop expertise and where there are high employment rates. It's crucial to workshop your career in your 20s, trying different paths to find where you can build valuable skills and enjoy economic rewards. If you initially pursue a passion and realise it doesn’t offer financial stability, be prepared to pivot. For example, if you're passionate about classical music but realise it's not sustainable for you, transitioning to a business degree can provide more opportunities and still allow you to enjoy your passion as a hobby.

Question: How should people in Australia approach property investment given the high prices and cultural emphasis on real estate?

While property can be a fantastic way to build wealth, especially when it's tax-advantaged as in the U.S., it’s essential to make sure you’re not overleveraging yourself. Given the high property prices in Australia, it’s prudent to do the maths on whether renting and investing in other assets might be a better financial decision. Real estate markets can be volatile, and if the rental yield relative to property prices is particularly low, it might be safer and more lucrative to diversify your investments into different asset classes. Always consider your financial situation, future plans, and market conditions before making significant real estate investments.

Want to hear the full interview? Find it on the Equity Mates Investing podcast feed or watch on YouTube

Today’s sponsor is Australian Property Scout

In the most downloaded episode ever of the Scouting Australia Podcast, Sam Gordon (regular property expert on Equity Mates) is joined in the studio by Morgan Holmes, a young 26 year old property investor who has built herself over $1m in net equity. 

Morgan breaks down how she did it at such a young age, how she generated her first deposit, used lending loopholes to continue acquiring investments and build the portfolio she has.

Tune in to this episode on the Scouting Australia Podcast on all your favourite listening platforms.

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