Here’s what you need to know today

• As quickly as it started, the US dock workers strike has finished. Three days after it began, the International Longshoremen’s Association announced it would go back to work after receiving a 62% pay rise over the next 6 years. However, the union threatened it would return to striking if negotiations on other contractual points were not resolved by 15 January 2025. (BBC | The Conversation)
  
  

• The conflict between private hospitals and private health insurers over the rising cost of funding Australia’s private health system continues to escalate. After an Australian government review found the private hospital system “uninvestable” medical groups including the Australian Society of Ophthalmologists and Royal Australasian College of Surgeons are asking for government support as some private hospitals are cutting theatre lists of less-profitable surgeries. (AFR)
  
  

• The US economy is flying. The September jobs report far exceeded expectations, with economists expecting 150,000 jobs but the economy actually adding 254,000. This great result saw US stock market indexes push higher and saw Goldman Sachs lift their predictions for the S&P 500. Is this the soft landing we were hoping for? (AFR | Forbes)
  
  

• Friday was a mixed day for Tesla. Good news: sales of the Cybertruck have doubled in just a few months. Bad news: that news was revealed as Tesla was forced to recall all Cybertrucks sold due to an issue with the car’s rear-view camera. (Quartz)
  
  

• The US Supreme Court is considering one of the more novel responses to organised crime. The country of Mexico is suing American gun makers in a $10 billion lawsuit over drug cartel violence. 70% of guns found at Mexican crime scenes are American-made, so Mexico is claiming American gun makers including Smith & Wesson, Beretta, Colt and Glock are partially liable. (AP News)

What the…?

One of the most anticipated Australian business books in some time is just 4 weeks away. Joe Aston’s upcoming takedown of ex-Qantas CEO Alan Joyce has the business community on the edge of their seats.

Alan Joyce is clearly concerned about what is coming, hiring not one but two major PR experts this week to help him deal with the fallout. (AFR)

Investing is a lifelong journey

Here’s what you can learn today.

How the bank of grandparents is shaping the economy

For a long time the ‘bank of mum and dad’ has been one of the biggest players in the Australian residential property market. By some estimates, the bank of mum and dad is a top 10 mortgage lender in Australia. But with baby boomers being just 21% of the population but holding 48% of the wealth, a new force is asserting itself: the bank of nan and pop.

A survey of Gen Z homebuyers has found that one-in-eight (12%) have received financial support from their grandparents to buy their home.

The impact of the bank of nan and pop goes beyond the housing market. Almost one-in-five Gen Z’s surveyed had received help from their grandparents to pay for education.

With the youngest Baby Boomers turning 60 this year and the oldest reaching their late 70’s, this generation still has plenty of years left. Expect their decisions on when and how they choose to pass on their wealth to have impacts across the economy for years to come.

Today’s sponsor is Pacific Equity Partners

Private equity has never been easy to get into or out of, until now. As Australia’s leading private markets investor, Pacific Equity Partners has launched the PEP Gateway Program to unlock global private equity for wholesale investors, with regular liquidity.

Top-tier global private equity funds have consistently outperformed public markets. The PEP Gateway Program facilitates investments with some of the world’s best global private equity funds and fund managers.

Visit www.pepgateway.com.au for more information.

 Please refer to the terms and conditions contained in the relevant PEP Gateway Program fund documentation. Liquidity and redemptions are subject to the limitations in each fund’s governing documents. Past performance is not a guarantee of future results. This information is for wholesale investors only and does not constitute an offer of securities or financial products. Always consult with your professional advisers.

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