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1. The Australian dollar has gone from the golden boy to the whipping boy of currency markets in the space of just 24 hours. A combination of renewed concern over emerging markets and inability to break through key resistance levels in Asia saw the Aussie give back all of its post-GDP gains on Thursday. As of 7am in Sydney, the AUD was down 0.55% to 0.7624.
2. US stocks were mixed overnight ahead of the G7 summit in Quebec, as this week’s tech-led rally came to an end. After opening at a new all-time high, the NASDAQ fell by 0.7%, leading falls on the broader index. European markets also fell amid rising bond yields and a strengthening euro. German 10-year bond yields climbed back over 0.5% for the first time in two weeks while Italian 10-years climbed back over 3%.
3. ZTE saved by Trump. The US has reached an agreement to lift sanctions on the Chinese telecom equipment maker ZTE. The deal will force ZTE to pay a $US1 billion fine and place $US400 million in escrow in the event the company violates sanctions again. In addition to the monetary damages, ZTE will be forced to make changes to its management and submit to closer examinations by a US compliance team.
4. Google is staring down the barrel of another massive fine and a crackdown that could rip the company apart. The tech giant may be hit with a second major penalty from European regulators over antitrust. It’s accused of forcing smartphone makers to preinstall services such as Google Search on its Android operating system. It may now be forced to unbundle Android from its search business. This could be Google’s Microsoft monopoly moment.
5. It’s all about “attitude”, according to US President Donald Trump. The US leader said he didn’t think he needed to “prepare very much” for the coming summit with North Korea; rather, his “attitude” during the talks would be more important. If all goes well in the meeting in Singapore on Tuesday, Trump may invite Kim Jong Un to Mar-a-Lago. Or walk out if things go poorly.
6. Warren Buffett wants to solve a huge corporate problem by treating CEOs like babies. He along with JPMorgan CEO Jamie Dimon think earnings guidance should be eliminated because they incentivise CEOs to think too short term in an effort to constantly beat market expectations. But Business Insider’s Linette Lopez suggests doing so would eliminate transparency and put companies at risk.
7. Scott Morrison speaks to Business Insider in a special edition of our Devils and Details podcast. He talks with Paul Colgan and David Scutt about Australia’s economic growth data from this week but they also get into the falls in house prices in some detail. The Treasurer outlines why he doesn’t believe there’s an asset bubble in the housing market. Find it on iTunes or listen in here:
8. “Become a professional investor now.” That’s the advice an investor who helps the ultrarich grow their wealth for a living wished he knew at 25. David Bailin, the global head of investments at Citi Private Bank, says financial technology has created access to some of the cheapest, most convenient ways to trade the markets but that only counts for 80%. “One-hundred per cent of the way there would be to have a global portfolio and be able to pick the funds… ‘You should steal the info we provide to ultra-wealthy families and do it.'”
9. NASA’s Curiosity rover has found organic matter on Mars. This discovery was made after collecting soil samples from 3 billion-year-old mudstone in the Gale crater. Why is that important? Because organic matter can be a sign of life, whether that be a record detailing ancient life, a food source for life or something that exists in the place of life. CNN has more.
10. No one likes ageing but having perspective on the growing ageing population, and the challenges that come with that, such as a higher risk of heart disease, could be insightful. Well, now there’s an ageing suit that can mimics what it feels like to be 80-years-old. We got a 25-year-old to test it out, and let’s just say she was relieved to take it off after a few minutes.
Have a great day.
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