10 things you need to know this morning in Australia

Hello there.

1. So we were wrong and it seems the Brits did have the bottle to leave the EU after all. That made for a miserable Facebook feed all weekend for anyone with loads of British ex-pat mates, but the true test is yet to come. First of all, Article 50 of the Treaty on European Union has to be triggered. The majority of pressure from EU leaders is on Brit PM David Cameron to do so immediately so everyone can get on with the negotiations and ECB president Mario Draghi can start minimising the damage. But Cameron doesn’t want to be that guy, and wants to leave the responsibility to whoever takes over from him at the Conservative conference in October. After the trigger, it will be two years before Britain is officially declared out. But the trade negotiations between Britain and each of its 27 EU counterparts could take much, much longer. So yeah, the market carnage we saw on Friday might have some way to run yet. No wonder it’s been so easy for photographers to catch Boris Johnson looking like this since reality struck on Saturday:

Oh god, it’s real. Picture: Getty Images

2. So how does it affect Australia? Credit Suisse has chimed in by providing this handy cut-out-and-keep list of 25 Australian stocks it now thinks are “only for the brave”. And there are some big ones in there, too.

3. On the market itself, SPI 200 futures are up 3 points after the ASX 200 finished trade on Thursday nursing a loss of 3.17%, its biggest one-day percentage fall since September 29. Gold is strong, iron ore is crumbling and the Aussie dollar is… volatile. It traded in its highest range against the US dollar on Friday since November 2011, and had its biggest one-day gain against the pound since 1982. This morning it opened at .7427, down around 0.4% from Friday’s closing level of .7458.

4. “Hello recession”. That’s Bank of America Merrill Lynch’s take in a note to clients warning of a 2.5% drag on GDP growth over the next 12 months. Bank of England governor Mark Carney even went on the telly to tell everyone he has nearly half a trillion dollars ready to lob into the market if need be. It’s that kind of thinking which has Goldman Sachs confident central banks have got this.

5. Here’s what George Orwell, who knew a thing or two about the future, had to say about such things back in 1941:

“The insularity of the English, their refusal to take foreigners seriously, is a folly that has to be paid for very heavily from time to time.”

This would be one of those times.

6. While most forecasters expect the UK and European economies to slow, we’re not even close to a GFC danger zone. But the slowdown may – just may – have the RBA considering a rate cut as early as next Tuesday, according to the NAB. So needless to say, it’s a big week in data, starting tomorrow with a very interesting EU leaders meeting and a Eurozone Business Climate Indicator on Wednesday. The UK will see a revised Q1 GDP Thursday and Markit Manufacturing PMI on Friday. In the US, it will be interesting to see what Fed chair Janet Yellen has to say on Wednesday. At home, it’s a quiet week with job vacancies Thursday and house prices Friday. It’s all here in Greg McKenna’s big events diary.

7. Time for a picture break:


That’s one of the latest leaked pictures of the iPhone 7, which is supposed to be “boring”. But if Steve Hemmerstoffer, editor of Nowhereelse.fr, is correct – and he has been in the past – you’re looking at a new dual lens HD camera. And possibly the replacement for the port for plugging in headphones – an extra speaker.

8. The best thing to do right now might be to become a millionaire. Here’s 11 things to do in your 20s to become a millionaire by 30. (Sorry if you’re 30+.)

9. Here’s the 12th way – be a smart VC. Like Silicon Valley-based Bessemer Ventures partner Byron Deeter, who liked communications software maker Twilio so much he wrote a $125,000 cheque for its seed investment on the spot over breakfast. That hooked Bessemer into all subsequent investment rounds for Twilio to the tune of about $70 million. And after Twilio’s massive IPO last week, Bessemer’s stake is now worth $500 million.

10. Another VC, Y Combinator’s Sam Altman, is taking that idea one step further. Incubate enough startups and accelerate that moment when robots will take all the jobs within 100 years, and you’ll have utopia. That’s because robots will be so good at making money for humans, humans won’t have to work and can just spend the cash. He’s so confident the free money thing will work, he’s giving 100 Californian families $US1500 a month just to see what happens.

Have a great day.

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