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The Big Picture
The Great Divide: AI industry splits over safety concerns. This comes after several prominent AI CEOs, including Dario Amodei, Sam Altman and Elon Musk, called for an industry-wide development slowdown to enact safety and transparency measures. Many in Silicon Valley, as well as Nvidia CEO Jensen Huang and US President Trump, criticised the concerns as self-serving, as it would cement existing AI giants into a regulatory framework and create a moat. (NYT)
Industry super funds lose $27bn in self-managed shift. Gen X and Millennial Australians are driving a shift toward self-managed super that has seen $27 billion move from industry super funds to SMSFs in the past four years. Lack of flexibility, need for retirement advice, and desire for super self-determination are the three driving factors behind the inflows into self-managed super. (AFR)
$32bn data centre to increase Queensland’s electricity demand by 25%. The proposed data centre in Queensland’s Western Downs will have a peak capacity of 2.2 gigawatts, equal to 1.5 million Australian households. It would increase daily electricity consumption by 25% in Queensland, which has fought heavily against forcing data centres to add renewable energy to offset their power consumption. (ABC)
US 10-year hits 5% ahead of Fed rate decision. With US inflation well above the US Federal Reserve’s 2% target and oil rising towards US$110 per barrel, investors are dumping US treasuries as they lose faith in the Fed taking inflation seriously. The Fed will make a decision on rates tomorrow night, which 85% of surveyed economists believe will be a rate hike. (FT | CNBC | Reuters)
US private credit default rate hits record high. Ratings agency Fitch announced US private credit borrowers hit a record high default rate of 6.3%, meaning 6.3% of private credit loans are in default. Healthcare and industrials recorded the highest sectoral default rates at 9.9%. (Bloomberg)
Companies in the news
Banks and miners drag down ASX. Copper and iron ore prices have fallen 5.1% and 2.5%, respectively, in the past week, contributing to BHP and Rio Tinto both falling over 2% yesterday. Banks were also in the red, led by Commonwealth Bank falling 2.1% on the day. Six out of 11 sectors were down on the day and the ASX 200 was down 1% as a whole, a two-month low. (AFR)
AI stocks slide as AI industry splits over regulation. Nvidia, AMD and Micron fell 3%, 4% and 5%, respectively, after major AI leaders supported slowing the pace of AI development for security concerns. The Philadelphia Semiconductor Index fell 6% on the day despite Nvidia CEO Jensen Huang and Trump attempting to reassure investors that there was no need to slow down. (Reuters)
Cybersecurity stocks soar in response to AI fears. While AI stocks fell on calls for a safety-motivated slowdown, cybersecurity stocks soared. CrowdStrike, Palo Alto and Fortinet jumped 14%, 13% and 9% on the day, and the Nasdaq Cybersecurity Index rose 6%. (Nasdaq)
Banks cut mortgage rates despite expected rate hike. Commonwealth Bank cut mortgage rates across several products in June, causing ANZ, Westpac, and Macquarie to follow suit as Australian banks fight for shrinking mortgage demand. This comes despite an RBA rate decision at the end of the month, which many analysts and economists expect to be a rate hike. (ABC)
Firmus chases $50bn valuation for upcoming IPO. The Australian data centre firm is looking to go public this year in what will be Australia’s second-largest IPO behind Telstra’s privatisation in 1997. Firmus is hoping to raise up to $7 billion at over a $50 billion valuation, which would put it around the same market capitalisation as Fortescue, Woolworths, and Goodman Group. (Capital Brief | Market Index)
FinFest 2026 is nearly sold out!
We’re less than six weeks away from Australia’s biggest investing festival, and we’re rapidly running out of tickets.
Nearly 2,000 people have already secured their tickets to FinFest. Make sure you get yours before they sell out.
Some of Australia’s best investors and entrepreneurs will be sharing their views and insights to help you leave with the knowledge and confidence to take the next step in your investing journey.
This is going to be big. You don’t want to miss this.
Montessori guru accused of preschool ponzi
Montessori enthusiast Ray Girn managed to raise US$335 million from venture capital and private equity investors to fund a chain of for-profit schools called Guidepost Montessori, but insiders had another name for it: Montessori Ponzi.
Whenever Guidepost opened a new school, landlords would front him money to help get the new school off the ground. When Guidepost collapsed, Girn was accused of taking money from new landlords and using it to pay debts to older landlords, creating the telltale Ponzi loop. Guidepost racked up US$440 million in losses before finally collapsing last year. (NYT)
A diversified approach to Australian commercial real estate investing.
Debt. Equity. Income.*
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Ask An Adviser: Australia vs. Global Exposure
Financial adviser Dylan Pargiter-Green from Bold Wealth provided some insight for investors looking to explore investments outside Australia.
How do you think about Australia vs. global exposure?
Dylan: There is no doubt that global or ex-Australia investing has had a darling 10 to 15 years. However, I do believe that Australia gets dragged through the mud often.
Take the 30-year-old accumulator. All they've known is the rise of the global market, driven by American tech sensations. Why would you choose to invest in the 2% of the world that is the ASX, when you could access the biggest companies in the world?
Alternatively, the Australia looks strong when we think about tax, which is a large consideration. Higher income with tax credits might work in your favour when you're in a 0% tax environment. Income-paying investments with franked dividends can be pretty attractive.
Understanding what you're trying to get out of your investments and the structures they're operating in might help make your choice. You're very likely to benefit from a little of both through your investment journey.
Want to work with an adviser like Dylan to balance your Australian and global exposures? Fill out the form on our website and we’ll match you with one of our hand-picked advisers to help you get started.
