Good morning. Welcome to hump day! Here’s what you need to know.
1. The dollar is looking wobbly. After starting Tuesday trade near 76 cents, the AUD/USD eventually finished the session buying .7501, a drop of 1.17%. At one point the Aussie fell to as low as .7475 before recovering into the New York close.
David Scutt suggests the dollar has been weighed down by the combination of US dollar strength, expectations for an August rate cut from the RBA and weakness in crude and iron ore prices. Read more here.
2. Leaving London. London is likely to lose its financial services passport, and investment banks that shift operations abroad quickly will benefit from a “first-mover advantage”, according to a confidential Deutsche Bank note. “Brexit Briefing” outlines how the banks’ competitors would likely ramp up non-London operations in Ireland, France, Germany and Luxembourg, where they have existing subsidiaries.
Here’s the breakdown, according to Deutsche Bank:
3. Iron ore prices continue to slide. Iron ore prices continued to tumble on Tuesday, falling for a fifth session in a row. According to Metal Bulletin, the spot price for benchmark 62% fines slid 1.48% to $56.02 a tonne, leaving it at the lowest level seen since July 11.
Commonwealth Bank analyst Vivek Dhar, put the renewed price slide down to weakening sentiment towards the outlook for China’s property market and a continued build in iron ore inventories held at Chinese ports.
4. Microsoft beats. For the fourth quarter, Microsoft announced earnings of $0.69 per share, up from $0.60 a year ago. Revenue is also up from $22.18 billion a year ago to $22.6 billion. The announcement sent Microsoft’s stock up 3%.
That means Satya Nadella is doing his job. When he started as CEO, the challenge was to shift the company to selling “cloud” services. As part of the results, Microsoft says it had a $12.1 billion “run rate” in its commercial cloud products. That puts the business well on the way to its goal of $20 billion in cloud revenue by 2018.
5. Why “Speechgate” matters. Yesterday the internet went into meltdown after observers noticed striking similarities between Melania Trump’s speech to the Republican National Convention and First Lady Michelle Obama’s 2008 Democratic National Convention speech. While it feels like one of those “idiotic media catnip campaign stories”, Josh Barro argues it’s anything but.
He believes it’s important because of two things it tells us about what sort of president Donald Trump would be, and what important mistakes he would make for the same reasons his campaign made this trivial mistake. See what he has to say here.
6. This is the best golf toy, ever. Bubba Watson’s newest plaything is a $200,000 jetpack golf cart, and it’s insane. This is the BW Air jetpack. Because why hoverboard across a golf cart when you can fly over it?
Not only does the jetpack prevent you from having to, you know, walk, it also helps with another infuriating part of the sport: other golfers!
“You’re riding by yourself, you don’t have to ride with that annoying golfer that tells you all about his score,” Watson says in the video. “You just watched it, you don’t need to hear about it.”
7. Eagle Boys pizza is in trouble. Entrepreneur Tom Potter, who founded the Eagle Boys pizza chain nearly 30 years ago, has compared the collapse of the business – placed in voluntary administration last Thursday – to the demise of Dick Smith Electronics earlier this year.Simon Thomsen has more.
8. The best unis in Oz. Australia may have missed out on getting a look in the Center for World University Rankings of the top 50 universities, but three made it into the top 100. The University of Melbourne ranked as Australia’s best tertiary institution, coming in at 89th, followed by University of Sydney, six spots behind at number 95, and the University of Queensland just scraped in at 99th.
Out of the entire 1000 universities ranked globally Australia had 27 listed. See them here.
9. New episodes of “Making A Murderer” are in production. The documentary which acquired a cult following is back. According to a release from Netflix, the next chapter of the Emmy-nominated docu-series that focuses on convicted murderer Steven Avery will focus on the post-conviction process as well as the the toll it has taken on all involved.
10. Bike riding can be life-threatening, for some. Super Mario’s creator can’t bike to work because his safety is too important. For real. The New Yorker profiled Miyamoto — also the creator of “Donkey Kong,” “The Legend of Zelda” and many, many more iconic video game franchises — a few years ago, and the magazine revealed that while the 63-year-old used to bike to work, Nintendo put the kibosh on that method of commuting “for his safety and its peace of mind.” Instead he drives.
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