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- đ US borrowing costs hit 19-year high | Mortgage applications drop 15% at NAB
đ US borrowing costs hit 19-year high | Mortgage applications drop 15% at NAB
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US borrowing costs hit 19-year high as Fed holds rates. Despite sticky inflation, the US Fed voted 9-3 to hold rates; three votes were for a rate rise. US bond investors are anxious about the Fedâs commitment to tackle inflation and sold off bonds, sending 30-year Treasury yields to their highest level since 2007, which raises the cost of further US borrowing. (AFR | FT)
Korea cracks down on leveraged ETFs following $56bn wipeout. Koreaâs finance ministry will limit access to leveraged ETFs, which have surged in popularity in Korea and globally as levered bets on volatile tech stocks and indexes. These funds amplify market volatility and contributed to the Kospiâs 39% drop in the past month, in which Korean retail investors lost an estimated $56 billion from leveraged ETFs. (FT | KJD)
Trump unleashes threats as US strikes dozens of Iranian targets. The US president said its forces will be âhitting them hardâ in retaliation for Iranâs surprise ballistic missile attacks on US troops, which were all intercepted. This follows several days of calm as peace talks progressed. Significantly, Saudi Arabia is reportedly pressuring Trump to de-escalate. (BBC | FT)
Deadly bird flu outbreak spreads to Victoria. The potentially deadly H5 virus had already been detected in 28 cases across WA, SA, NSW, and Queensland. Victoria is urging poultry owners to review their biosecurity practices and the Department of Agriculture, Fisheries and Forestry say the risk to human health remains low. (ABC)
Chinese stocks suffer decadeâs worst month on AI pullback. The index tracking the top 300 stocks on the Shanghai and Shenzen exchanges, the CSI 300, is down nearly 10% in July. Chinaâs AI âpicks and shovelsâ companies are caught up in a wider global pullback in AI stocks also seen in Koreaâs Kospi wipeout in the past month. (FT)
Companies in the news
Mortgage applications at NAB drop 15%. The Big Four bank blamed global volatility, high interest rates, and property tax changes for the drop in the quarter ended June. This follows Westpacâs report of a 20% drop in mortgage applications from property investors, highlighting the downturn of the Australian property market. (AFR | AFR)
Qantas nears Sunrise with record-breaking 24-hour flight. A specially adapted Airbus A350-1000ULR flew 24 hours and 24 minutes from Melbourne to Toulouse, France in what is believed to be the longest commercial flight in history. The flight is a part of Qantasâ Project Sunrise, which will fly direct from Sydney to London. (FT)
Airbus profits surge on 39% deliveries growth. The worldâs largest planemaker shook off supply chain issues and delivered 237 aircraft in the second quarter, up 39% year-on-year. It reiterated its full-year target of 870 commercial aircraft deliveries, but analysts suspect it will beat that mark. (FT)
A Tale of Two Earnings: Meta and Microsoft. The two Mag 7 constituents had drastically different earnings outcomes. Microsoftâs AI spend paid off as cloud revenue grew 43%, beating analyst expectations of 40%. Meanwhile, Meta reported earnings per share of $6.18, below expectations of $7.14, and increased capex forecasts. Investors picked their favourite: Meta is down 7% after hours, while Microsoft is up 9%. (Microsoft | BBC | Guardian)
Regulator seeks $502m from Optus over fatal outage. The Australian Communications and Media Authority are taking Optus to the Federal Court over its Triple-Zero outage in 2025, where ACMA claims they broke the law over 2,000 times; each breach carries a maximum fine of $250,000. (AFR)
Ampol nearly quadruples margins amid fuel crisis. The Australian gas giant earned roughly $44.40 per barrel in the first half of 2026, up from $12.50 year-on-year, as the Strait of Hormuz closure tightened global petroleum supply chains and drove prices up. (Ampol)
Neil the seal hits Tassie taxpayers with hefty bill
Tasmaniaâs beloved elephant seal visitor Neil wracked up a $36,0000 tab in his 15-day stay at Seven Mile beach, crushing 10 bollards, a fence and a street sign. However, the majority of the costs were staffing and labour, as he requires constant minding when he gets a bit too close to more heavily trafficked areas.
At roughly one tonne, Neil has gained notoriety wreaking slow-moving havoc during his semiannual visits to beaches and neighborhoods around Hobart. He has drawn millions of views across social media, but local mayor Brendan Blomeley urges the public to give him space during his jaunts. (Guardian)
Super is anything but boring.
It certainly doesnât spark as many debates as crypto. But boring doesnât mean it isnât powerful â it's often the quiet achiever.
Thanks to potential tax advantages and decades of compound interest doing its thing, super could be one of the most powerful investments Aussies ever own.
From the first super contribution to fine tuning their strategy, MLC's tools (and obviously their experts) can help build a plan with confidence.
Products issued by NULIS Nominees (Australia) Limited (ABN 80 008 515 633, AFSL 236465) as trustee of MLC Super Fund (ABN 70 732 426 024). General information only. Visit mlc.com.au for PDS & TMD. Consider if itâs right for you.
Framing financial freedom
Financial adviser Glen Hare from Fox & Hare provided some important clarification for a community question on financial freedom.
Ren: This community member wants to be financially free by 50 and currently in their late 20s, so they do have a bit of time. Can you discuss some strategies for creating multiple income streams and building passive income to reach this goal?
Glen: Great question. Just reflecting on our member base, like 80% of our members would be in their 20s and 30s. The sooner you start on that journey to financial freedom, the greater the chance that you're going to have of actually getting there.
In terms of building multiple income streams, building a passive income, it's really important that we think about what financial freedom actually means for you. Financial freedom is very broad. Does that mean having no debt? Does that mean potentially working the same amount but earning less in more purpose driven work?
So financial freedom is really, really different. So before embarking on any investment journey, it's important we have a good understanding in terms of what it is we're actually driving towards. And I'd argue that the passive income is just an enabler to give us that sense of freedom.
Want to work with an adviser like Glen to dial in what financial freedom looks like for you? Fill out the form on our website and weâll match you with one of our hand-picked advisers to help you get started.
