Enjoy this email? We’d love you to forward it to someone else who may enjoy it.

Forwarded this email? You can sign up here. 

Here’s what you need to know today

• Donald Trump has threatened to "substantially raise" tariffs on Indian exports, accusing the country of buying Russian oil in bulk and flipping it for profit. India hit back, calling the move “unjustified and unreasonable,” arguing its imports are a necessity in today’s global market. (Bloomberg)
  
  

• Deputy PM Richard Marles has announced Australia will spend $10 billion over the next decade to buy three stealth frigates from Japan and then build a further eight in Western Australia. It’s a rare export win for Japan’s defence industry and highlights growing strategic ties between Canberra and Tokyo, as both nations keep a wary eye on China’s military moves in the Indo-Pacific. (AFR)
  
  

• Tesla has awarded Elon Musk $29bn worth of shares in an attempt to keep him at the firm. The move comes after a US court struck down his 2018 pay package, worth more than $50bn, ruling that it was unfair to shareholders. Tesla stock was up 2% on the back of the news. (@Tesla on X)
  
  

• Over the past couple of years, the rise of AI has sent electricity demand soaring. Big Tech’s data centres are chewing through power, and regulators are starting to notice. In a first, Google has signed formal agreements to dial down AI data centre usage during peak electricity times. It's a move that could set the standard for other tech giants as they face growing blackout risks. (Reuters)
  
  

• BP has just made its biggest oil and gas discovery in 25 years, off the coast of Brazil. While exact volumes haven’t been disclosed, analysts expect it could contain billions of barrels of oil. BP has returned its focus to fossil fuels in recent years after abandoning its failed plan to cut its hydrocarbon production. (Financial Times)
  
  

• American Eagle Outfitters stock soared 23% on Tuesday, their best day in a decade, after US President Donald Trump weighed into the controversy surrounding the chain’s advertising campaign with actress Sydney Sweeney. Just hours after reports emerged about Sweeney’s political leanings, Trump took to Truth Social to call the ad the “HOTTEST out there,” adding that jeans were “flying off the shelves.” (Sydney Morning Herald)
  
  

• Spotify’s shares also had a good day, jumping 5% after the company said it would raise its subscription prices across a number of regions globally. These price hikes represent the fourth increase in as many years. (Quartz)
  
  

• The New York Post is heading west. Rupert Murdoch’s News Corp has announced the launch of the California Post, aiming to bring a more conservative lens to the state’s media landscape. With California facing a pivotal election year, the move comes amid claims from News Corp that many stories and perspectives are being overlooked in the state. (Guardian)
  
  

• The ATO has accused high-profile poultry producer Ingham’s of shortchanging taxpayers, as a long-running dispute over research and development (R&D) tax offsets stretches into its sixth year. At the heart of the standoff is more than $50 million in R&D claims. The company’s financial accounts remain under review, but Ingham’s insists it has done nothing wrong and says it will “vigorously defend its position.” (ABC News)

What the…?

China’s demographic challenges have been well-reported, with the one-child policy inverting its population pyramid and creating a large old population without the working age population to support it.

In response, Chinese lawmakers are pulling out all the stops to increase birth rates. The one-child policy has been scrapped and now China has said it will pay families 3,600 yuan (A$777) each year for each child under the age of 3.

While the incentive will be welcomed by Chinese families, demographers believe the incentive will be too small to incentivise families to have more children, leaving China’s population time bomb ticking away. (NBC News)

Investing is a lifelong journey

Here’s what you can learn today.

Why investing isn’t like gambling

Community Question: How do I convince my partner that investing isn’t like gambling?

We put this question to Matt Ingram, financial adviser & partner at Northhaven Financial Management

A lot of people worry that investing is basically just gambling in disguise, but the two are actually worlds apart. When you gamble, every bet is a win-or-lose situation. The odds are stacked against you, and the longer you play, the more likely you are to walk away with less than you started. That’s just how casinos make their money… the house always wins in the end.

Investing, on the other hand, is completely different. When you invest, you’re buying a slice of real companies that are out there working, making products or selling services, and earning profits. It’s not about luck or a single roll of the dice. The longer you stay invested, especially in a diversified portfolio or something broad like an index fund, the more the odds actually swing in your favour. Over time, markets have a strong track record of going up, not down. Even if some companies fall by the wayside, others step up and take their place, so your investment isn’t riding on just one outcome.

The key thing to remember is that while gambling is designed to take your money, investing is designed to help you grow it, especially if you give it time. It’s like the difference between flipping a coin and planting a tree. With gambling, every toss is a new risk and the odds never improve, but with investing, you’re giving your money the chance to grow and compound over time. The longer you leave that “tree” to do its thing, the stronger and more rewarding it becomes, so patience and time are your best friends when it comes to building real wealth.

Want to speak to Matt or another of our hand-picked financial advisers? Fill out the form on our website and we’ll put you in touch.

A message from Finimize

Invest with insight, not hindsight.

News headlines tell you what’s happened in the world... but not why it matters to you.

Wall Street analysts describe expert investing techniques… but they speak in DCFs and P/E ratios rather than plain English.

That’s why over a million modern investors subscribe to Finimize. Written by analysts who trained at world-leading institutions, the finance newsletter tells you what’s happening in the markets and, crucially, how that could impact your portfolio – all in a three-minute daily read.

Want more Equity Mates?