1 00:00:03,930 --> 00:00:06,840 Sean Aylmer: Welcome to the Fear & Greed Afternoon report for Friday, the 2 00:00:06,840 --> 00:00:10,559 Sean Aylmer: 2nd of June, 2023. I'm Sean a Aylmer. Every afternoon we've 3 00:00:10,559 --> 00:00:12,539 Sean Aylmer: got the five stories that happened today that you need 4 00:00:12,539 --> 00:00:14,970 Sean Aylmer: to know about. Story number one, the Fair Work Commission 5 00:00:15,179 --> 00:00:18,420 Sean Aylmer: today listed the award rate for 2. 4 million workers 6 00:00:18,750 --> 00:00:24,599 Sean Aylmer: by 5. 75%, the highest amount in decades. Economists and 7 00:00:24,600 --> 00:00:27,930 Sean Aylmer: employees immediately warned that the increase in the national award 8 00:00:27,990 --> 00:00:32,250 Sean Aylmer: wage rate could trigger higher interest rates, job losses, and 9 00:00:32,250 --> 00:00:36,150 Sean Aylmer: cuts to hours. The national minimum wage, which affects about 180, 10 00:00:36,150 --> 00:00:39,028 Sean Aylmer: 000 workers on the lowest rate, will rise by 8. 11 00:00:39,300 --> 00:00:44,040 Sean Aylmer: 6% to $ 882. 80 a week. The Australian Council of 12 00:00:44,040 --> 00:00:47,820 Sean Aylmer: Trade Union said the decision, which meant up to $ 51.08 13 00:00:47,848 --> 00:00:51,000 Sean Aylmer: extra a week for entry level retail staff was a 14 00:00:51,000 --> 00:00:54,539 Sean Aylmer: historic cost of living increase, and urged the Reserve Bank 15 00:00:54,539 --> 00:00:57,480 Sean Aylmer: not to lift rates to undercut it. Fair Work Commissioner 16 00:00:57,480 --> 00:01:00,690 Sean Aylmer: president Adam Hatcher said the panel opted for a below 17 00:01:00,690 --> 00:01:04,440 Sean Aylmer: inflation pay rise for award workers after concerns about entrenching 18 00:01:04,590 --> 00:01:09,509 Sean Aylmer: high inflation expectations. Story number two, the S&P ISX 200 looked like 19 00:01:09,509 --> 00:01:11,760 Sean Aylmer: it was in for a strong day this morning, but 20 00:01:11,760 --> 00:01:14,789 Sean Aylmer: the Fair Work Commission decision triggered expectations of higher interest 21 00:01:14,790 --> 00:01:17,010 Sean Aylmer: rates, and that weighed on the market. So it fell 22 00:01:17,010 --> 00:01:19,410 Sean Aylmer: sharply, and then it caught some of the way back 23 00:01:19,500 --> 00:01:22,770 Sean Aylmer: to finish up half a percent to 7, 145 points, 24 00:01:23,130 --> 00:01:25,469 Sean Aylmer: which is pretty much where it started the week. The 25 00:01:25,469 --> 00:01:29,129 Sean Aylmer: material sector was the standout today, while more defensive companies 26 00:01:29,129 --> 00:01:32,339 Sean Aylmer: like Consumer Staples, Healthcare and Telcos were the under performers. 27 00:01:32,670 --> 00:01:34,979 Sean Aylmer: The iron ore producers, which have had a pretty tough 28 00:01:34,980 --> 00:01:39,150 Sean Aylmer: week were the standouts. BHP jumped 3%, Rio Tinto was up 2. 29 00:01:39,150 --> 00:01:44,399 Sean Aylmer: 6%, while Fortescue Metals Group rose 1. 7%. Energy giants 30 00:01:44,400 --> 00:01:49,140 Sean Aylmer: Woodside & Santos also rose 1. 7%. Coles, Woolworths, Telstra and 31 00:01:49,140 --> 00:01:51,660 Sean Aylmer: National Australia Bank were the worst of the large caps. 32 00:01:51,990 --> 00:01:55,320 Sean Aylmer: Better mentioned uranium miner Paladin Energy. It was the best 33 00:01:55,320 --> 00:01:58,320 Sean Aylmer: performing stock for the second successive day, up more than 34 00:01:58,320 --> 00:02:01,620 Sean Aylmer: 11%. Earlier in the week, it tumbled on the back 35 00:02:01,620 --> 00:02:04,979 Sean Aylmer: of speculation that its partly owned mine in Namibia could 36 00:02:04,980 --> 00:02:09,270 Sean Aylmer: be partially nationalized, but it released a statement today saying 37 00:02:09,270 --> 00:02:13,079 Sean Aylmer: the Namibian government had no intention of seizing any stake 38 00:02:13,320 --> 00:02:17,190 Sean Aylmer: in any existing mines, hence the share price surge. Also 39 00:02:17,190 --> 00:02:20,339 Sean Aylmer: worth a mention, fixed income markets. Investors are now pricing 40 00:02:20,340 --> 00:02:23,759 Sean Aylmer: in a 25 basis point rate hike next week, with 41 00:02:23,760 --> 00:02:26,970 Sean Aylmer: several market economists forecasting two or three more rate rises 42 00:02:27,180 --> 00:02:30,630 Sean Aylmer: income months. Story number three, earlier in the week, BHP 43 00:02:30,630 --> 00:02:33,660 Sean Aylmer: considered it had underpaid about 28 and a half thousand 44 00:02:33,660 --> 00:02:37,589 Sean Aylmer: past and present employees. That was worth about $ 430 million, 45 00:02:38,040 --> 00:02:41,130 Sean Aylmer: saying its systems had an upgraded to include new legislation 46 00:02:41,730 --> 00:02:45,750 Sean Aylmer: from back in 2010. Today it was supermarket giant Coles's 47 00:02:45,750 --> 00:02:48,810 Sean Aylmer: turn. It said it will take an additional $ 25 million 48 00:02:49,050 --> 00:02:52,200 Sean Aylmer: provision in relation to the underpayment of staff, more than 49 00:02:52,200 --> 00:02:56,880 Sean Aylmer: doubling initial estimates. It's becoming a common occurrence. David Jones 50 00:02:56,880 --> 00:03:00,299 Sean Aylmer: in men's fashion retailer Politics agreed this year to pay 51 00:03:00,299 --> 00:03:04,919 Sean Aylmer: more than $ 750,000 in interest in contrition payments after admitting 52 00:03:04,919 --> 00:03:08,609 Sean Aylmer: to underpaying thousands of employees for a million dollars. And 53 00:03:08,730 --> 00:03:13,080 Sean Aylmer: back in 2021, Woolworths faced a 420 million blowout in 54 00:03:13,080 --> 00:03:17,219 Sean Aylmer: its back pay bill. Story number four, Bubs Australia today 55 00:03:17,219 --> 00:03:20,010 Sean Aylmer: said it's on track to meet all regulatory milestones to 56 00:03:20,010 --> 00:03:23,310 Sean Aylmer: allow it to permanently sell in the massive infant formula 57 00:03:23,310 --> 00:03:26,849 Sean Aylmer: market in the United States, but sales in Japan remain 58 00:03:26,849 --> 00:03:30,450 Sean Aylmer: below expectations. The ASX listed group is facing a board 59 00:03:30,450 --> 00:03:33,660 Sean Aylmer: split being led by its co- founder Kristy Carr, and 60 00:03:33,660 --> 00:03:37,530 Sean Aylmer: former executive chair Dennis Lin. Today, Bubs said that sales 61 00:03:37,530 --> 00:03:40,529 Sean Aylmer: of formula and adult nutrition in the Chinese export market 62 00:03:40,800 --> 00:03:44,940 Sean Aylmer: remained below expectations, and revenue in three months to March 63 00:03:44,970 --> 00:03:48,690 Sean Aylmer: 31 was down 56%, with the company now facing a 64 00:03:48,690 --> 00:03:52,709 Sean Aylmer: buildup of inventory. That's never good news. Bub's share price 65 00:03:52,709 --> 00:03:56,640 Sean Aylmer: today fell almost 3%. And story number five, the US 66 00:03:56,640 --> 00:03:59,640 Sean Aylmer: debt ceiling crisis is over. Well, at least it was 67 00:03:59,640 --> 00:04:03,150 Sean Aylmer: resolved this morning with Senate passing the bill, thus averting 68 00:04:03,240 --> 00:04:06,690 Sean Aylmer: default. It's taken weeks of negotiation between the Republicans and 69 00:04:06,690 --> 00:04:11,219 Sean Aylmer: Democrats, including President Joe Biden, and has riled financial markets. 70 00:04:11,219 --> 00:04:14,940 Sean Aylmer: But this morning it passed 63 votes to 36 in 71 00:04:14,940 --> 00:04:17,640 Sean Aylmer: the Senate. That certainly helped risk assets. We saw that 72 00:04:17,640 --> 00:04:21,060 Sean Aylmer: in equity markets here in Australia. The Aussie dollar also 73 00:04:21,150 --> 00:04:23,700 Sean Aylmer: jumped as a result it's now back above 66 US 74 00:04:23,700 --> 00:04:26,700 Sean Aylmer: cents. Oil prices were also higher. That's it for the 75 00:04:26,700 --> 00:04:30,029 Sean Aylmer: afternoon report for Friday, the 2nd of June 2023. Michael 76 00:04:30,029 --> 00:04:32,370 Sean Aylmer: Thompson, Adam Lang and I will be back tomorrow morning 77 00:04:32,370 --> 00:04:35,100 Sean Aylmer: with a weekend edition of Fear & Greed. I'm Sean Aylmer. 78 00:04:35,400 --> 00:04:36,120 Sean Aylmer: Enjoy your evening.