Welcome to Monday. Here’s what you need to know.
1. Turkey staved off a military coup at the weekend but with President Tayyip Erdogan now rounding up the plotters and talk of reintroduction of the death penalty, this story has some way to run. There’ll be some ongoing uncertainty on what the future looks like for the nation, which has a critically important geopolitical dimension given its proximity to the Middle East and status as a NATO member.
2. Nintendo’s share price has almost doubled on Pokemon Go. Is it over-bought? Deutsche Bank thinks yeah, maybe:
Assume the game lasts ten years and profits fall one-tenth annually. Using a five per cent cost of capital, Nintendo must generate $US3.3bn of earnings this year. That requires $US14bn of in-app revenue if Nintendo receives one-third of the revenue through its stakes in the Pokemon Company and the game’s developer, Niantic, at a 70 per cent profit margin. With Apple and Android taking their 30 per cent cut, players must therefore spend $US21bn. If five per cent of players actually pay (the same as Candy Crush) and they spend $100 each, Nintendo’s share price jump only makes sense if the app is downloaded by every second person on planet Earth.
3. Politics is taking on a greater role in global markets. David Kotok, chief investment officer of Cumberland Advisors, told BI’s Bob Bryan that politics is “driving investors’ decision-making more than any other year I know of” and that this new dynamic would lead to “extraordinary volatility in both directions”.
Here’s a list from Morgan Stanley of all the potentially disruptive political events coming up:
3. Malcolm Turnbull will unveil his new frontbench today. Ministerial hopefuls might keep their opinions over the close result in check during today’s party room meeting with the PM due to reveal his new ministry straight after.
4. Italy could tear Europe apart, and this is the chart to prove it. Contending with a banking crisis, and a stagnant economy, a history of missing growth targets, and the potential that prime minister Matteo Renzi’s government could be ousted, things don’t look peachy for Italy.
The International Monetary Fund has produced a handy flow chart, or “risk matrix” showing all the threats to stability in the country.
5. There’s been another cop killing in America. A manhunt is underway in Louisiana after three officers were shot dead in Baton Rouge. One shooter is dead, but at least two others may still be at large. The shooting happened early Sunday, local time, less than two kilometres from police headquarters.
US president Barack Obama has called the attack a “cowardly and reprehensible assault”.
6. Henrik Stenson takes out the British Open. The Open Championship on Sunday was an epic showdown between Swede Henrik Stenson and US contender Phil Mickelson. With the players tied after 13 holes, Stenson would birdie four of the five final holes, a stretch that included three incredible putts.
Here’s a look at the biggest putt on the 15th where there had only been three birdies in the final round.
Mickelson’s reaction says it all.
8. Apparently you’ve been charging your smartphone wrong. Lithium-ion batteries in our smartphones are sensitive to their own versions of “stress.” And, like for humans, extended stress could be damaging your smartphone battery’s long-term lifespan.
Mistakes like keeping it plugged in when it’s fully charged and even fully charging it to 100% can undermine your battery’s health. See more do’s and don’ts here.
9. This chilling animation shows how MH17 was shot down with a Buk surface-to-air missile. The Dutch Safety Board, which concluded in its final report that MH17 was hit by a Buk surface-to-air missile fired from territory controlled by Russian-backed separatist forces in eastern Ukraine, released this video re-creation of the incident which killed 298 people. It shows the warhead, fired from rebel-held eastern Ukraine, detonating to the left side and slightly above the cockpit.
See the entire video and the full report here.
10. The ‘Watchmaking’s Oscars’ is here. The Grand Prix d’Horlogerie de Genève is an annual awards ceremony in Switzerland has announced this year’s winners.
From the Public Prize winner: The ‘Tourbillon of Tourbillons’ by Antoine Preziuso for $AU427,292 to the Mechanical Exception Watch Prize — ‘The Charming Bird’ by Jaquet Droz for $AU658,588. These watches will blow your socks off.
BONUS ITEM: ICYMI our Devils and Details podcast was published last week. Joining Business Insider Australia’s editor-in-chief, Paul Colgan, and global markets journalist, David Scutt, was one of Australia’s most eminent market economists and the former chief economist at ANZ Bank, Warren Hogan. What to know about Australia’s economic future, the RBA, global stock highs and more? Listen to the clip below.
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