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Speaker 1: Welcome to the Fear and Greed Business News Afternoon Report

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Speaker 1: for Thursday, the sixteenth of January twenty twenty five. I'm

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Speaker 1: Sean Elmer. Every afternoon, We've got the five stories that

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Speaker 1: happened today that you need to know about. Story number one,

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Speaker 1: the local share market ended up nearly one and a

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Speaker 1: half percent today. It rallied after US price growth figures overnight.

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Speaker 1: They came in lower than expected. More of that in

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Speaker 1: a moment that pretty much eased fears about inflation in

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Speaker 1: the world's biggest economy, sending Wall Street higher and our

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Speaker 1: local market followed. The big bank surged some, jumping Bay

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Speaker 1: up to three percent. In fact, Commonwealth Bank closed today

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Speaker 1: up two point nine eight percent. Very good day for

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Speaker 1: the country's largest company. Rate sensitive tech stocks and property

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Speaker 1: companies also outperformed the underperformers, with those that are less

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Speaker 1: reliant on the economic cycle, those that move less when

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Speaker 1: it comes to interest rates, things like healthcare stocks, consumer

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Speaker 1: staples big the big supermarkets in that instance, and utilities

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Speaker 1: if we go to stocks specifically zip code. The buy now,

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Speaker 1: Pay Later group surged after its competitor Sesel upgraded revenue

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Speaker 1: guidance overnight. In the US Uron Pharmaceuticals rebounded after a

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Speaker 1: tough session yesterday. Tabcorp Holdings jumped after announcing its first

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Speaker 1: chief wagering officer. By the closed, the smps ASX two

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Speaker 1: hundred was up one point four percent to eight three

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Speaker 1: hundred and twenty seven points. Story number two. I referred

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Speaker 1: to it in the previous story. The Aussie job market

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Speaker 1: is on a tear. In December, fifty six thousand, three

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Speaker 1: hundred new jobs net were created in the economy. Now

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Speaker 1: there were a stack of part time jobs and a

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Speaker 1: loss of some full time jobs. Still there's no denying

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Speaker 1: the labor market is strong, with the unemployment rate now

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Speaker 1: at just four percent. What's that mean for interest rates? Well,

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Speaker 1: it will give Reserve Bank reason not to do anything

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Speaker 1: anytime soon. In fact, they need to rush on interest

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Speaker 1: rates when it comes to the Reserve Bank. That's what

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Speaker 1: market economists think. They probably won't do anything for the

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Speaker 1: next couple of months. Story number three. US inflation figures

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Speaker 1: were released overnight that were weaker than expected, So now

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Speaker 1: investors think there might be more than one rate cut

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Speaker 1: in the US this year. Core CPI was up zero

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Speaker 1: point two percent last month. Multiplied that by twelve two

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Speaker 1: point four percent for the year, and previously the previous

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Speaker 1: four months it was point three percent or more. So

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Speaker 1: that is a significant drop in that core CPI rate.

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Speaker 1: Oil prices are definitely on the rise. That will put

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Speaker 1: inflation pressures into the system and it will also hit

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Speaker 1: our petrol pumps. In two or three weeks, US crewed

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Speaker 1: in trees are falling and there are fears around supply,

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Speaker 1: particularly around Russia and Iran. A barrel of oil is

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Speaker 1: now fetching about eighty two US dollars Story number four.

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Speaker 1: Real Tinto faces more challenges from the West Australian iron

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Speaker 1: ore mines, which provide the bulk of group earnings, as

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Speaker 1: it continues to ship higher volumes of lower grade material

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Speaker 1: to Chinese steelmakers. The company was forced to draw down

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Speaker 1: on mindestock poles towards the end of last year, during

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Speaker 1: what's typically the most productive quart of for iron ore

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Speaker 1: operations in the Pilbra. According to report in the Australian,

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Speaker 1: heavy rain flooded some mining pits, forcing rare to eat

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Speaker 1: into stoppiles it prefers to build up with a period

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Speaker 1: from January to April considered a higher risk period for

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Speaker 1: destructions caused by cyclone activity. RIO warned iron ore production

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Speaker 1: costs for twenty twenty four would be at the higher

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Speaker 1: end of guidance based on lower output inflation outstripping internal expectations.

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Speaker 1: On the global economic outlook, RIO said in its quarterly

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Speaker 1: production report that inflation is moderating, growth stabilizing, but risks

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Speaker 1: posed by geopolitical tensions and persistent labor shortages are back RIO,

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Speaker 1: which blies iron or demand as people will remain strong.

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Speaker 1: So the Chinese economy provided mixed signals in the last

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Speaker 1: three months of twenty twenty four. As for the US economy,

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Speaker 1: in particular the tech sector, well, it had outperformed other

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Speaker 1: developed economies and its outlook remained stable in the countdown

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Speaker 1: to President elect Donald Trump taking the reins and finally

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Speaker 1: story number five, many of the world's richest economies will

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Speaker 1: need to at least double productivity growth to maintain historical

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Speaker 1: improvements in living standards amid sharp falls in their birth rates.

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Speaker 1: That's according to a McKinsey report investigating the economic impact

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Speaker 1: with declines in birth rates. It found that in the UK, Germany, Japan,

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Speaker 1: and the US they'll all need to see productivity rise

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Speaker 1: at double the pace it's been over the past decade

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Speaker 1: to maintain the same growth in living standards. A report

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Speaker 1: in the ft S says that to match GDP capital

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Speaker 1: growth between ninety seven and twenty twenty three, productivity growth

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Speaker 1: in France and Italy will need to triple overcoming decades.

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Speaker 1: In Spain needs to rise fourfold. The report highlights the

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Speaker 1: impacts of declining birth rates on the world's most prosperous economies,

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Speaker 1: leaving them vulnerable to a shrinking proportion of the population

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Speaker 1: of working age. Australia's productivity pace would need to increase

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Speaker 1: by about twenty five percent, according to the report sit

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Speaker 1: thouthand and Report for Thursday, the sixteenth of January twenty

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Speaker 1: twenty five. Make sure you hit follow on the podcast.

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Speaker 1: We'll be back tomorrow morning with the Friday edition of

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Speaker 1: the past five business Yes by Fear and Greed. I'm

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Speaker 1: sure Elma enjoy your