Today’s News

The Big Picture

• Trump’s all-star entourage demands China open up to US business. Elon Musk and Jensen Huang are among the US CEOs travelling to Beijing with Trump, whose first order of business was to request Chinese President Xi Jinping create a more favourable environment for US companies. Xi seemed receptive, stating he wishes for China and the US to be “partners not rivals” after years of tensions. (FT | BBC)
  
  

• Ministers catch flak for latest expenses stumble. Ministers billed taxpayers $62,000 for flights, travel, and chauffeurs for a one-hour meeting in Melbourne that happened to precede a Labor fundraiser at the Ritz-Carlton. Senator David Pocock said the rules allowing Labor to “fly the entire ministry around the country to hold political fundraisers on the taxpayer’s dime” needed to change. (AFR)
  
  

• Unions raise wage claim after budget’s high inflation forecast. The ACTU has raised their claim for a minimum wage increase from 5% to 6% after the federal budget forecasted inflation will hit 5% by June. The Australian Chamber of Commerce and Industry pushed back, estimating the new claim would cost businesses an additional $15 billion and add more fuel to the inflation fire. (AFR)
  
  

• Budget’s productivity measures commended by industry. The budget promises to decrease the regulatory burden on businesses by $10 billion but streamlining approvals and removing 497 nuisance tariffs, among other measures. The Actuaries Institute and Australian Banking Association welcomes the changes, stating they will support business investment and lift productivity. (Capital Brief | Financial Standard)
  
  

• Hantavirus outbreak reaches 11 patients after passengers depart. After the fateful MV Hondius cruise saw an outbreak of the rodent-carried disease, the vessel docked in Spain on Sunday. Passengers disembarked but are being monitored by the WHO. 11 cases have been reported, with three fatalities. (NYT)
  
  

• US bond yields hit GFC levels after high inflation data. US 30-year government bonds were sold yielding over 5% for the first time since 2007 after inflation came in at a three-year high of 3.8% the day before. Servicing debt is becoming more expensive for the government at a time the US needs to issue more debt to fund war efforts, which does not bode well for budgets. (FT)

Companies in the news

• Federal Court rules against Coles in landmark decision. The court found most of Coles’ “Down Down” promotions did not offer genuine discounts and misled consumers. The judge will rule on a similar case against Woolworths at a later date. The ruling comes as a long-anticipated blow to the supermarket giants by the ACCC, who initiated action against them in 2024. (ABC)
  
  

• Miners rejoice: Lithium prices soar 50% amid EV boom. After a record 1.75 million EV sales in March, the price of lithium hit nearly US$2,960 per tonne, a 50% monthly increase and a 415% increase from last June. ASX-listed miners have soared on this rally, namely PLS (up 19%), Liontown Resources (up 35%), Elevra Lithium (up 43%) and Mineral Resources (up 21%). (AFR)
  
  

• Big tech goes cuddly in effort to humanise tech. Microsoft, Google, and Apple are among businesses using friendly cartoon mascots to try and shake the growing public perception of the tech giants as techno overlords. Microsoft has even given its Copilot AI tools an avatar named Mico in the shape of a blob that can carry voice conversations with users. (BBC)
  
  

• Xero posts mixed results amid tech issues. Despite a 31% year-on-year increase in revenue, net profit fell 27% due to higher-than-expected interest and taxes. Shares slid 9% on the news, bringing losses to 58% in the past 12 months. (Capital Brief)
  
  

• Ampol looks to capitalise on Labor’s $10b fuel package. The gas company operates the Lytton refinery in Brisbane, which will be looked to to help Labor achieve its new $10 billion funding package to raise Australia’s fuel reserves from 40 days to 50 days. (AFR)

What the…?

Hands off my chocolate. A German court has found chocolate maker Mondelez guilty of an inhumane crime: Giving consumers less chocolate. The court found the maker of the Milka Alpine Bar had cheated customers and broken competition law by shrinking the size of chocolate bars without changing the wrapper.

This practice, known as shrinkflation, has come into the spotlight as manufacturers look to boost margins amid rising production costs. Consumers typically have grumbled and moved on, but Mondelez seems to have gone a step too far by messing with Germans’ beloved Milka bars. (BBC)

A message from Centuria

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* Net absorption by Sydney CBD precinct, JLL Research, March 2026. Issued by Centuria Property Funds No. 2 Limited (ABN 38 133 363 185 AFSL 340 304). Investors should consider the Information Memorandum available on or around mid-May 2026 before deciding to invest.

Today’s Insight

Can’t Beat Dollar-Cost Averaging

In a recent episode, Equity Mates analyst Riley recreated Nick Maggiulli’s “Even God Can’t Beat Dollar-Cost Averaging” within the ASX 200 and shared his results.

We looked at three investing strategies over 26 years, putting $100 a week into the ASX 200 since 2000 with dividends reinvested.

A perfect market timer, someone who could see every market bottom and buy the dip at exactly the right moment, turned $137,400 into $428,000.

A simple dollar cost averager, buying every single week regardless of market conditions, turned the same $137,400 into $458,000. That's $30,000 more than perfect foresight.

Why? Because while the dip buyer was sitting on cash waiting for the perfect moment, the DCA investor's money was already in the market, compounding. Time in the market beats timing the market. The most powerful investing strategy isn't the most sophisticated one. It's the one you can set, forget, and never stress about again.

Today in Equity Mates