1 00:00:03,760 --> 00:00:06,640 Speaker 1: It's Thursday, the fifth 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 00:00:09,039 --> 00:00:11,000 Speaker 1: where we give you the top five business stories you 4 00:00:11,039 --> 00:00:13,520 Speaker 1: need to know when just five minutes A'm Michael Thompson 5 00:00:13,560 --> 00:00:14,840 Speaker 1: and good morning Sean Ale. 6 00:00:14,880 --> 00:00:16,080 Speaker 2: One morning, Michael, Sean. 7 00:00:16,079 --> 00:00:18,320 Speaker 1: Five stories, five minutes. Let's go with story number one. 8 00:00:18,440 --> 00:00:22,119 Speaker 1: The Australian economy is barely growing, running at about half 9 00:00:22,200 --> 00:00:25,480 Speaker 1: the long term average as businesses hold back on investing 10 00:00:25,560 --> 00:00:27,400 Speaker 1: and consumers cut back on spending. 11 00:00:27,520 --> 00:00:31,520 Speaker 2: I Bureau Statistics National Accounts released yesterday's shasy economy expanded 12 00:00:31,520 --> 00:00:35,000 Speaker 2: by just zero point two percent in the March quarter, 13 00:00:35,040 --> 00:00:37,200 Speaker 2: one point three percent for the year. Key takeouts, government 14 00:00:37,240 --> 00:00:40,920 Speaker 2: spending pulling back, particularly among the States. Household spending was higher, 15 00:00:41,000 --> 00:00:44,600 Speaker 2: but if you look through all these statistical aberrations, not 16 00:00:44,760 --> 00:00:49,640 Speaker 2: much higher. Business investments also rising, but like household spending, 17 00:00:49,800 --> 00:00:52,080 Speaker 2: very very sluggish. Tough quarter on the trade front. In fact, 18 00:00:52,159 --> 00:00:54,200 Speaker 2: net trade detracted from growth, in part because of a 19 00:00:54,280 --> 00:00:57,960 Speaker 2: smaller than average rise in international students into Australia. Extreme 20 00:00:58,000 --> 00:01:01,120 Speaker 2: weather conditions didn't help the all important growth per capital. 21 00:01:01,600 --> 00:01:04,880 Speaker 2: So what we're growing per person? It went backwards again, 22 00:01:05,200 --> 00:01:07,759 Speaker 2: and the National account show that productivity in the March 23 00:01:07,840 --> 00:01:12,080 Speaker 2: quarter unchanged stuck at twenty sixteen levels. So while bad 24 00:01:12,080 --> 00:01:15,720 Speaker 2: weather didn't help, all in all ain't a good result. 25 00:01:16,080 --> 00:01:18,880 Speaker 1: Indeed, what was the reaction like? And I suppose, well, 26 00:01:18,920 --> 00:01:21,240 Speaker 1: anyone with a mortgage wants to knows what does it 27 00:01:21,280 --> 00:01:22,039 Speaker 1: mean for interest rates? 28 00:01:22,120 --> 00:01:25,480 Speaker 2: Treasure Jim Chalmers said he's quite optimistic about the Australian economy, 29 00:01:25,480 --> 00:01:28,720 Speaker 2: though he conceded productivity needs to improve. Generally, economists said 30 00:01:28,760 --> 00:01:31,800 Speaker 2: there just isn't much good news in yesterday's report. A 31 00:01:31,959 --> 00:01:33,800 Speaker 2: number of talking about a rate cut when the Reserve 32 00:01:33,840 --> 00:01:37,200 Speaker 2: Bank Board meets next month. Bond investors have priced in 33 00:01:37,200 --> 00:01:38,759 Speaker 2: a bit of than eighty percent chance of a rate 34 00:01:38,760 --> 00:01:41,280 Speaker 2: cut in July. I would say the consensus is two 35 00:01:41,360 --> 00:01:43,600 Speaker 2: rate cuts this year, with some saying maybe three a 36 00:01:43,640 --> 00:01:44,960 Speaker 2: third one later in the year. 37 00:01:45,200 --> 00:01:47,920 Speaker 1: Okay, moving on to story number two. Now, Sean, the 38 00:01:48,040 --> 00:01:53,240 Speaker 1: value of Commonwealth Bank yesterday pushed past three hundred billion 39 00:01:53,320 --> 00:01:54,520 Speaker 1: dollars for the first time. 40 00:01:54,640 --> 00:01:56,880 Speaker 2: You got as high as one hundred and eighty one 41 00:01:56,920 --> 00:02:00,160 Speaker 2: dollars and thirty two cents. It closed a little below that, 42 00:02:00,240 --> 00:02:02,559 Speaker 2: giving it a value of three hundred and one point 43 00:02:02,760 --> 00:02:07,160 Speaker 2: seven billion dollars. We've said it before, worth repeating. At 44 00:02:07,280 --> 00:02:11,040 Speaker 2: three hundred billion dollars, Commonwealth Bank is worth just under 45 00:02:11,160 --> 00:02:14,680 Speaker 2: the combined values of the other three big banks National 46 00:02:14,720 --> 00:02:19,040 Speaker 2: aust Jailia Bank, Westpac and aan Z. Clearly, it was 47 00:02:19,080 --> 00:02:21,400 Speaker 2: the big winner yesterday and a very good day in 48 00:02:21,440 --> 00:02:24,120 Speaker 2: the market. Yesterday the SMPA six two hundred closed up 49 00:02:24,120 --> 00:02:26,920 Speaker 2: nearly one percent to eight five four to two. That 50 00:02:27,080 --> 00:02:28,840 Speaker 2: is so close to a new record. 51 00:02:28,919 --> 00:02:31,560 Speaker 1: Michael, Yeah, so story number three. Great day obviously for 52 00:02:31,600 --> 00:02:34,959 Speaker 1: Commonwealth Bank, good day for the market overall. Uranium stocks 53 00:02:35,000 --> 00:02:37,800 Speaker 1: did well though, after Meta so that it wants to 54 00:02:37,800 --> 00:02:39,680 Speaker 1: increase its use of nuclear power. 55 00:02:39,880 --> 00:02:43,600 Speaker 2: Fascinating how the big tech companies are pushing that nuclear market. 56 00:02:43,639 --> 00:02:45,640 Speaker 2: Met As signed a twenty year contract to buy nuclear 57 00:02:45,680 --> 00:02:49,399 Speaker 2: power from a plant in Illinois owned by Constellation from 58 00:02:49,440 --> 00:02:53,880 Speaker 2: twenty twenty seven, joins Microsoft, Amazon, and Alphabet Pairent of 59 00:02:53,919 --> 00:02:56,760 Speaker 2: Google to sign similar deals now. Earlier this year we 60 00:02:56,800 --> 00:02:58,639 Speaker 2: talked about it on the show. Microsoft did a deal 61 00:02:58,639 --> 00:03:02,560 Speaker 2: with Constellation to restart the Three Mile Island Nuclear Power Plant, 62 00:03:02,840 --> 00:03:05,519 Speaker 2: the site of the US's worst commercial nuclear power accident 63 00:03:05,560 --> 00:03:08,800 Speaker 2: in nineteen seventy nine. Basically, big technique more power for 64 00:03:08,880 --> 00:03:11,600 Speaker 2: their AI and data centers. They also have long term 65 00:03:11,639 --> 00:03:15,120 Speaker 2: goals to cut greenhouse gas emissions. Nuclear provides a solution 66 00:03:15,800 --> 00:03:18,679 Speaker 2: the US are for the falling of different states of 67 00:03:18,720 --> 00:03:22,120 Speaker 2: falling over themselves to support nuclear energy that has a 68 00:03:22,120 --> 00:03:25,320 Speaker 2: flow on effect of helping our local uranium stocks. Paladin 69 00:03:25,400 --> 00:03:27,040 Speaker 2: Deep Yellow Boss Energy. 70 00:03:27,240 --> 00:03:29,280 Speaker 1: Story number four. There's big stories all over the place 71 00:03:29,280 --> 00:03:31,920 Speaker 1: today Seawan Virgin Australia is set to list on the 72 00:03:31,960 --> 00:03:35,680 Speaker 1: ASX with an initial public offering of about thirty percent 73 00:03:35,720 --> 00:03:38,080 Speaker 1: of the company, meaning the total value of Virgin is 74 00:03:38,120 --> 00:03:39,480 Speaker 1: around two point three billion. 75 00:03:40,120 --> 00:03:43,040 Speaker 2: Definitely one of the most anticipated floats on the AX. 76 00:03:43,320 --> 00:03:46,440 Speaker 2: Bain Capital bought Virgin out of administration during the COVID 77 00:03:46,520 --> 00:03:49,920 Speaker 2: nineteen pandemic last year. Katar talk at Kern Cornerstone Steak 78 00:03:50,000 --> 00:03:52,360 Speaker 2: in the airline once floated by in the land about 79 00:03:52,400 --> 00:03:55,600 Speaker 2: forty percent, Katar twenty three percent, Manage eight, management eight 80 00:03:55,680 --> 00:03:59,320 Speaker 2: percent and the rest new shareholders. While well anticipated, the 81 00:03:59,320 --> 00:04:03,200 Speaker 2: big unknown been priced. It's actually relatively cheap compared to 82 00:04:03,240 --> 00:04:05,000 Speaker 2: quantas on what they told us yesterday. 83 00:04:05,280 --> 00:04:07,760 Speaker 1: Sean, just quickly, We've been talking about this deal forever 84 00:04:07,920 --> 00:04:11,520 Speaker 1: since Bain bought Virgin. Pretty much. Why is this happening now? 85 00:04:11,560 --> 00:04:14,880 Speaker 2: Though? Stars of a line equity markets training near record levels. 86 00:04:14,880 --> 00:04:17,960 Speaker 2: The former boss, Jane Hurdley isn't a favorite with investors. 87 00:04:18,040 --> 00:04:20,839 Speaker 2: She's going over to Endeavor Group so that freezings up there. 88 00:04:21,120 --> 00:04:23,800 Speaker 2: Oil prices are relatively low, and aviation fuels and major 89 00:04:23,839 --> 00:04:26,000 Speaker 2: costs for airlines, so the balance sheet looks better, and 90 00:04:26,080 --> 00:04:28,960 Speaker 2: tourism demand is strong. Conditions just right for a float, 91 00:04:29,160 --> 00:04:29,440 Speaker 2: all right? 92 00:04:29,520 --> 00:04:32,919 Speaker 1: Last one story number five. Elon Musk has hammered Donald 93 00:04:32,960 --> 00:04:38,279 Speaker 1: Trump's signature tax bill as a quote disgusting abomination. He 94 00:04:38,480 --> 00:04:41,600 Speaker 1: just ripped in in a number of posts on x, 95 00:04:41,640 --> 00:04:45,760 Speaker 1: describing it as a massive, outrageous pork field congressional spending bill. 96 00:04:46,000 --> 00:04:48,080 Speaker 1: He went on to say, shame on those who voted 97 00:04:48,160 --> 00:04:49,799 Speaker 1: for it. You know you did wrong. 98 00:04:50,160 --> 00:04:52,800 Speaker 2: You know it the billionaires. Aggressive intervention comes at a 99 00:04:52,800 --> 00:04:56,440 Speaker 2: critical time for what Trump calls he a big, beautiful bill. 100 00:04:56,880 --> 00:04:59,520 Speaker 2: It narrowly past the House of Representatives last month. It 101 00:04:59,520 --> 00:05:01,240 Speaker 2: needs to be a by the Senate if it is 102 00:05:01,279 --> 00:05:05,760 Speaker 2: to become law. Trump is pressuring Republican senators who are 103 00:05:05,800 --> 00:05:09,719 Speaker 2: worried that the package, which cuts taxes, reduces social spending 104 00:05:09,760 --> 00:05:12,599 Speaker 2: and increases the federal debt will not be good for 105 00:05:12,640 --> 00:05:14,680 Speaker 2: the country in the long term. In fact, a very 106 00:05:14,720 --> 00:05:19,440 Speaker 2: outspoken Republican Senator Ran Paul he doesn't like the bill's provision. 107 00:05:19,480 --> 00:05:23,039 Speaker 2: He's pointing out that it would allow the government to 108 00:05:23,160 --> 00:05:25,280 Speaker 2: raise a limit on how much it can borrow by 109 00:05:25,320 --> 00:05:28,919 Speaker 2: five trillion US dollars. E La Musk agrees that it 110 00:05:29,000 --> 00:05:29,760 Speaker 2: ain't a good bill. 111 00:05:30,080 --> 00:05:32,479 Speaker 1: Okay, there we go the top five business stories in 112 00:05:32,520 --> 00:05:33,000 Speaker 1: five minutes. 113 00:05:33,040 --> 00:05:34,279 Speaker 2: Thank you Sean, Thank you Michael. 114 00:05:34,320 --> 00:05:36,680 Speaker 1: It is Thursday, the fifth of June twenty twenty five. 115 00:05:36,760 --> 00:05:38,920 Speaker 1: Make sure you're following the podcast and please join us 116 00:05:38,920 --> 00:05:42,920 Speaker 1: online on LinkedIn, Instagram, x TikTok and Facebook. Are Michael Thompson. 117 00:05:42,960 --> 00:05:47,760 Speaker 1: And that was fear and greed. Have a great day.