1 00:00:03,760 --> 00:00:06,640 Speaker 1: It's Monday, the ninth of June twenty twenty five. Welcome 2 00:00:06,680 --> 00:00:09,039 Speaker 1: to the Fast five Business News by Fear and Greed, 3 00:00:09,080 --> 00:00:11,360 Speaker 1: where we give you the top five business stories you 4 00:00:11,440 --> 00:00:13,680 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:13,720 --> 00:00:17,520 Speaker 1: and good morning Sean Aylmer. Good morning, Michael, Sean. Five stories, 6 00:00:17,560 --> 00:00:20,520 Speaker 1: five minutes, let's go. Sorry. Number one, Smaller companies have 7 00:00:20,680 --> 00:00:24,720 Speaker 1: outperformed large caps on the ASX this year. Not by much, 8 00:00:25,040 --> 00:00:28,160 Speaker 1: but it's been an outperformance after many years of underperformance. 9 00:00:28,280 --> 00:00:31,480 Speaker 1: We've been waiting for this to happen since before the pandemic. 10 00:00:31,680 --> 00:00:34,440 Speaker 1: We plenty of predictions at the beginning of twenty twenty 11 00:00:34,440 --> 00:00:35,880 Speaker 1: three and twenty twenty. 12 00:00:35,600 --> 00:00:38,680 Speaker 2: Four that it would happen. It hadn't until now. The 13 00:00:38,760 --> 00:00:41,400 Speaker 2: SMP Small Ordinaries Index so far this year is up 14 00:00:41,440 --> 00:00:44,239 Speaker 2: five percent. These are the companies ranked one hundred and 15 00:00:44,240 --> 00:00:46,760 Speaker 2: one to three hundred on the ASEX. That compares to 16 00:00:46,800 --> 00:00:49,840 Speaker 2: the ASEX Top fifties performance of four percent the top 17 00:00:49,880 --> 00:00:52,199 Speaker 2: two hundred and four and a half percent. Now, if 18 00:00:52,240 --> 00:00:55,120 Speaker 2: you take that top fifty, there have been some standouts, 19 00:00:55,120 --> 00:00:58,280 Speaker 2: Comwealth Bank, Telstra and West Farmers. You take those out, 20 00:00:58,600 --> 00:01:02,000 Speaker 2: the small caps have performed even better, as you said, 21 00:01:02,040 --> 00:01:04,840 Speaker 2: and not a huge outperformance, but an outperformance. Nonetheless, some 22 00:01:04,880 --> 00:01:07,520 Speaker 2: of the better performing stocks include those under takeover off 23 00:01:07,520 --> 00:01:10,160 Speaker 2: I think brickworks and main holdings others who have just 24 00:01:10,280 --> 00:01:13,720 Speaker 2: done well. For example, Eagers Automotive is up nearly fifty 25 00:01:13,760 --> 00:01:17,119 Speaker 2: percent this year, helping things along for small caps. Admittedly, 26 00:01:17,560 --> 00:01:20,720 Speaker 2: the gold stocks on the back of a rising price 27 00:01:20,760 --> 00:01:24,480 Speaker 2: for the precious metal Regis Resources or a band of 28 00:01:24,520 --> 00:01:27,640 Speaker 2: mining gold Road, they all fall into that category. For 29 00:01:27,959 --> 00:01:30,560 Speaker 2: quite a few years, stock pickers have expected small caps 30 00:01:30,560 --> 00:01:31,360 Speaker 2: to underperform. 31 00:01:31,560 --> 00:01:34,679 Speaker 1: Well, Michael, it's starting to happen. I'm just story number 32 00:01:34,680 --> 00:01:37,400 Speaker 1: two now Sean. More than one hundred and five thousand 33 00:01:37,560 --> 00:01:40,800 Speaker 1: vehicles were sold last month, with SUVs now making up 34 00:01:40,840 --> 00:01:42,639 Speaker 1: more than half of all cars sold. 35 00:01:42,800 --> 00:01:45,240 Speaker 2: In fact, it's sixty percent of sales, and our SUVs 36 00:01:45,400 --> 00:01:47,640 Speaker 2: like commercial vehicles that make up twenty two percent. The 37 00:01:47,720 --> 00:01:51,920 Speaker 2: rest are passenger vehicles. I think Sedan's last month one 38 00:01:52,000 --> 00:01:55,240 Speaker 2: hundred and five two hundred and eighty five vehicles were sold, 39 00:01:55,240 --> 00:01:58,160 Speaker 2: down five percent from a year earlier, But the Federated 40 00:01:58,240 --> 00:02:01,880 Speaker 2: Chamber of Automotive Industry see Tony Webber said the number 41 00:02:01,960 --> 00:02:05,480 Speaker 2: is actually pretty good. By historical standards, showing mark the 42 00:02:05,560 --> 00:02:09,320 Speaker 2: market's resilience. Toyota Highluks once again was a number one seller, 43 00:02:09,400 --> 00:02:12,640 Speaker 2: followed by the Ford Ranger. Then came the Toyota at four, 44 00:02:13,240 --> 00:02:17,000 Speaker 2: the Toyota land Cruiser and the Toyota Prado. When you 45 00:02:17,120 --> 00:02:21,080 Speaker 2: have four of the five top selling cars, you were 46 00:02:21,080 --> 00:02:23,880 Speaker 2: going to be the dominant manufacturer in the market. Toyota 47 00:02:23,960 --> 00:02:27,720 Speaker 2: nourselves almost three times the number of cars as the 48 00:02:27,800 --> 00:02:33,080 Speaker 2: number two maker Ford. Pretty amazing. Then came Then comes 49 00:02:33,160 --> 00:02:34,880 Speaker 2: mazdak Kia and Hyundai. 50 00:02:35,360 --> 00:02:38,840 Speaker 1: Story number three. BHP is looking at re entering the 51 00:02:38,919 --> 00:02:41,720 Speaker 1: nickel industry with a one point five billion dollar mine 52 00:02:41,760 --> 00:02:44,720 Speaker 1: in Tanzania that promises to be a lower cost producer 53 00:02:44,760 --> 00:02:47,280 Speaker 1: than the world beating Indonesian nickel industry. 54 00:02:47,400 --> 00:02:49,960 Speaker 2: The Big Australian pulled out of nickel mining last year 55 00:02:49,960 --> 00:02:53,640 Speaker 2: when it suspended its West Australian operations. BHP decided to 56 00:02:53,639 --> 00:02:57,040 Speaker 2: mothball those mines and a Perth refinery after a surge 57 00:02:57,040 --> 00:02:59,640 Speaker 2: of supply from Indonesia, where production is largely backed by 58 00:02:59,680 --> 00:03:02,480 Speaker 2: the China government. As a result of that surge and supply, 59 00:03:02,560 --> 00:03:05,679 Speaker 2: the price of nickel tumbled around seventy percent but BHP 60 00:03:05,840 --> 00:03:08,640 Speaker 2: is expected to decide as early as next month whether 61 00:03:08,720 --> 00:03:13,000 Speaker 2: to proceed with the Cabanga nickel project in Tanzania, which 62 00:03:13,000 --> 00:03:15,639 Speaker 2: it's been quietly developing. According to a report in the 63 00:03:15,720 --> 00:03:19,280 Speaker 2: finn Review, research from BHP's partner in the project, US 64 00:03:19,280 --> 00:03:22,760 Speaker 2: based Life Zone says Cabango could produce nickel at an 65 00:03:22,800 --> 00:03:26,560 Speaker 2: all in sustaining costs so that's the common industry measure 66 00:03:26,560 --> 00:03:30,680 Speaker 2: that includes royalties, payments to local communities and transportation. So 67 00:03:30,800 --> 00:03:33,880 Speaker 2: an all in sustaining cost of seven thousand usls a ton, 68 00:03:33,960 --> 00:03:37,200 Speaker 2: which is less than half the current price of the 69 00:03:37,200 --> 00:03:40,880 Speaker 2: commodity ie. There's a decent profit margin in it. It's 70 00:03:40,920 --> 00:03:44,600 Speaker 2: also about one third of the price required by BHP's 71 00:03:44,640 --> 00:03:46,440 Speaker 2: Australian minds to produce nickel. 72 00:03:46,800 --> 00:03:50,040 Speaker 1: Okay, story number four. You mentioned gold before, Sean, It's 73 00:03:50,080 --> 00:03:52,640 Speaker 1: not the only precious metal surging at the moment. Silver 74 00:03:53,080 --> 00:03:57,360 Speaker 1: has hit its highest level in thirteen years, helped by investors' 75 00:03:57,480 --> 00:04:00,200 Speaker 1: desire to find safe places to put money. 76 00:04:00,440 --> 00:04:03,240 Speaker 2: So spot silver's now training around thirty six US dollars 77 00:04:03,240 --> 00:04:06,120 Speaker 2: and now it's the highest level since February twenty twelve. 78 00:04:07,000 --> 00:04:10,840 Speaker 2: The pace of the price rises in silver has lagged gold, 79 00:04:10,960 --> 00:04:13,800 Speaker 2: but now it's catching up. Often the two precious metals 80 00:04:13,800 --> 00:04:16,680 Speaker 2: move in tandem, the safe haven assets, they're kind of 81 00:04:16,720 --> 00:04:20,120 Speaker 2: not tied to any particular economy. Mind you, Gold's done 82 00:04:20,200 --> 00:04:22,440 Speaker 2: much better in recent times. It's worth about one hundred 83 00:04:22,440 --> 00:04:25,160 Speaker 2: times more than silver at the moment. Silver has its 84 00:04:25,200 --> 00:04:27,920 Speaker 2: fans though. It's the best conductor of both heat and electricity, 85 00:04:28,400 --> 00:04:30,480 Speaker 2: also the best reflector of light, which is why it's 86 00:04:30,520 --> 00:04:34,799 Speaker 2: often used to make mirrors. And right now the price 87 00:04:34,880 --> 00:04:38,240 Speaker 2: growth in silver is actually outpacing gold. 88 00:04:38,600 --> 00:04:40,560 Speaker 1: Last one story number five now Suwan. There is a 89 00:04:40,680 --> 00:04:45,360 Speaker 1: rice crisis in Japan. Large queues are regular sites at supermarkets, 90 00:04:45,400 --> 00:04:48,440 Speaker 1: in part because of shortages, but also in part because 91 00:04:48,680 --> 00:04:49,920 Speaker 1: of price rises. 92 00:04:50,360 --> 00:04:53,719 Speaker 2: Rice is a cornerstone of the Japanese cuisine and diet. 93 00:04:53,760 --> 00:04:57,400 Speaker 2: Domestic rice prices in Japan doubled last year. That put 94 00:04:57,440 --> 00:04:59,520 Speaker 2: a lot of political pressure on the Prime Minister and 95 00:04:59,520 --> 00:05:02,839 Speaker 2: the government. The average price of a sixty kilo bag 96 00:05:02,880 --> 00:05:05,280 Speaker 2: of rice harvested last year has reached an all time 97 00:05:05,400 --> 00:05:08,480 Speaker 2: high of about twenty six four hundred yen that's about 98 00:05:08,520 --> 00:05:11,360 Speaker 2: three hundred Busie dollars. While Japan has not run out 99 00:05:11,400 --> 00:05:14,360 Speaker 2: of supply, it just has never really fully recovered from 100 00:05:14,360 --> 00:05:17,120 Speaker 2: a bad twenty twenty three harvest. There's also been reports 101 00:05:17,120 --> 00:05:20,839 Speaker 2: of hoarding by consumers and stocked withholding by retailers. The 102 00:05:20,880 --> 00:05:24,920 Speaker 2: Governor's tapped its strategic rice reserve outside a natural disaster 103 00:05:25,040 --> 00:05:27,760 Speaker 2: for the first time, according to the ft, and when 104 00:05:27,800 --> 00:05:30,040 Speaker 2: part of that went on sale last week, multi hour 105 00:05:30,279 --> 00:05:32,799 Speaker 2: queues formed at supermarkets around the country. 106 00:05:32,880 --> 00:05:34,839 Speaker 1: All right, there we go, the top five business stories 107 00:05:34,880 --> 00:05:37,080 Speaker 1: in five minutes. Thank you very much, Sean, Thank you, Michael. 108 00:05:37,279 --> 00:05:39,800 Speaker 1: It is Monday, the ninth of June twenty twenty five. 109 00:05:39,839 --> 00:05:41,839 Speaker 1: Remember to hit follow on the podcast, and if five 110 00:05:41,839 --> 00:05:44,000 Speaker 1: minutes isn't enough, you can find our longer daily show 111 00:05:44,000 --> 00:05:46,680 Speaker 1: called Fear and Greed where if you listen to podcasts. 112 00:05:46,720 --> 00:05:48,839 Speaker 1: I'm Michael Thompson and that was a fast five business 113 00:05:48,920 --> 00:05:50,960 Speaker 1: news by Fear and Greed. Have a great day.