Microsoft and Google-owner Alphabet both announced their quarterly results | The mining industry might be witnessing its biggest deal in years |
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Hi John, here's what you need to know for April 26th in 3:15 minutes.

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Today's big stories

  1. Microsoft and Alphabet topped expectations, and Google’s parent announced its first dividend ever
  2. Seven tips for keeping more money in your pockets, instead of the taxman's – Read Now
  3. Mining giant BHP Group made a big bid for Anglo American, (almost) all in the pursuit of copper

Equal Billing

Equal Billing

What’s going on here?

Microsoft and Google-owner Alphabet shared the stage late on Thursday to reveal their much-awaited results.

What does this mean?

As two of the biggest companies in the S&P 500, Microsoft and Alphabet’s success or failure could just about sink or float the index. Well, it’s not time for life jackets just yet. Microsoft’s revenue came in at $62 billion – 17% higher than the same period a year ago – and profit was sufficiently buoyant too, rising 20%. To top it off, the firm’s crucial cloud business, Azure, delivered 31% sales growth, overachieving on the 28% that analysts expected. Alphabet kept up just fine, with revenue of $81 billion – up 15% from a year ago – and profit that sailed past expectations. Google Search, YouTube, and Google Cloud didn’t miss a stroke, either. But Alphabet’s first-ever dividend made the biggest splash, helping send the stock up more than 12%.

Why should I care?

For markets: The race is on.

Not content to watch a small fry lead the next generation of technology, Microsoft and Alphabet have been rolling out their own AI services. So far, investors have been impressed with how Microsoft’s integrated its Copilot AI into its existing software suite. Google’s rollout, meanwhile, hasn’t been as smooth. And of course, there’s the worry that as folk use AI chatbots more, they’ll visit Google Search – a key source of revenue – much less.

The bigger picture: Standards are high.

If the Magnificent Seven chuck too much cash at AI, shareholders may worry about reckless spending or feeble bottom lines. Too little, and they could complain that the firms aren’t devoting enough time and money to the cause. That’s a hard balance to strike, made worse by the fact that inflation is pushing bond yields higher, making stocks look less attractive in comparison. That means investors won’t need much of a nudge to ditch expensive tech stocks if their results disappoint even a little.

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Analyst Take

How To Save A Million (And Keep The Taxman Away)

How To Save A Million (And Keep The Taxman Away)
Photo of Reda Farran, CFA

Reda Farran, CFA, Analyst

Tax-exempt individual investment accounts have become a favorite tool of savers – thanks to the perks they deliver later in life.

Because you stash your already-taxed earnings into these kitties, you don’t face another hit when you withdraw them.

And, sure, the government restricts how much money you can sock away each year in these accounts, but that hasn’t stopped some investors from building balances worth well over $1 million.

That’s today’s Insight: seven tips for building wealth with a Roth IRA or an ISA.

Read or listen to the Insight here

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Decent Proposal

Decent Proposal

What’s going on here?

Mining giant BHP Group proposed a buyout of British mining company Anglo American, in what would be the biggest mining deal in years.

What does this mean?

Anglo’s the proud owner of some of South America’s most coveted copper mines, as well as an 85% stake in diamond specialist De Beers. But despite usually having enough copper to wire an industrial city and diamonds to propose a million times over, Anglo was forced to cap production a few months back due to operational hiccups. Add in the threats facing the diamond market from lab-made rivals, and Anglo’s share price steadily declined last year. That was BHP’s cue to table a £31 billion ($39 billion) offer – 14% higher than Anglo’s valuation from before the announcement. Mind you, the dotted line is far from signed: the news could attract rival bidders, and governments might take issue with one entity controlling a tenth of the world’s copper.

Why should I care?

For markets: The industry’s copp(er)ed on.

That deal would make BHP the world’s biggest copper producer, and it’s the perfect time to hold that title. The metal is essential for renewable energy projects – so now that governments and companies are switching from fossil fuels, miners are dialing up their copper plans. They haven’t caught up with demand yet, though: supply is still too low, and without any sign of a sudden influx, copper’s price could hit the roof.

The bigger picture: The bare commodities.

The energy transition, escalating geopolitical tensions, and demographic shifts are creating unpredictable and lasting change in the global economy – not least by nudging inflation and, in turn, interest rates upward. So with no guarantee that yesteryear’s investments can hold up in tomorrow’s world, investors might want to scope out commodities. Their prices often rise as inflation does, so they may well pick up just as stocks and bonds let investors down.

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💬 Quote of the day

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– Helen Rowland (an American journalist and humorist)
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💸 Dollar doubters, watch out

Investors started the year by predicting that the US dollar would fall.

Instead, it’s climbed more than 4% against all major developed and emerging-market counterparts, according to a Bloomberg currency index.

Here's why – and whether or not the greenback's good luck will stick.

Read The Quicktake

🎯 On Our Radar

1. A TikTok ban is on the table. Chefs and restaurant owners might miss the algorithm more than teenagers and influencers.

2. Bitcoiners and gold bugs both believe their favorite investment towers above the rest. Here's why mixing the two could spell good news for your portfolio.*

3. Green energy is the first step. Costa Rica is fueled by 99% renewable energy – but it’s still not enough.

4. Today’s top companies won't necessarily rule the roost tomorrow. Brush up your investing skills with this rundown.**

5. Sexism and the City. Inside a high-profile barrister’s pursuit to make women finally feel safe at work.

*Stocks is a derivative product offered by Change Securities B.V. that replicates the performance of your favourite companies’ shares - full or fractional.

**See important disclosures here.

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