1 00:00:03,840 --> 00:00:07,160 Speaker 1: It's Thursday, the sixteenth of May twenty twenty four. Welcome 2 00:00:07,160 --> 00:00:09,520 Speaker 1: to the Fast five Business News by Fear and Greed, 3 00:00:09,520 --> 00:00:11,480 Speaker 1: where we give you the top five business stories you 4 00:00:11,560 --> 00:00:14,120 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:14,200 --> 00:00:17,880 Speaker 1: and good morning Sean Aylmer, Good morning, Michael Shawn. Five 6 00:00:17,920 --> 00:00:20,560 Speaker 1: stories in five minutes. Let's get going. Story number one. 7 00:00:20,600 --> 00:00:23,560 Speaker 1: The day after the budget proved to be a big 8 00:00:23,640 --> 00:00:26,560 Speaker 1: day of debate about the inflationary impact of the Federal 9 00:00:26,560 --> 00:00:30,760 Speaker 1: Treasurer spending and also an unlikely split between big business 10 00:00:30,800 --> 00:00:31,560 Speaker 1: and the opposition. 11 00:00:32,159 --> 00:00:35,640 Speaker 2: Yeah, so there is a surplus which suggests it's not inflationary, 12 00:00:35,640 --> 00:00:37,440 Speaker 2: but it isn't as big as it could have been, 13 00:00:37,479 --> 00:00:40,400 Speaker 2: so maybe it is. A bunch of people suggested that 14 00:00:40,479 --> 00:00:44,280 Speaker 2: it probably was inflationary. The Business Council of Australia, the 15 00:00:44,320 --> 00:00:48,440 Speaker 2: Austrange Chamber of Commerce and Industry, the AI Group ratings 16 00:00:48,440 --> 00:00:51,159 Speaker 2: agency SMP came out. It affirmed au strolies triple A 17 00:00:51,280 --> 00:00:54,639 Speaker 2: rating and said the budget was mildly inflationary, and some 18 00:00:54,760 --> 00:00:57,840 Speaker 2: market economists warned that the energy rebates, the lowest student 19 00:00:57,920 --> 00:01:00,440 Speaker 2: debt and housing assistance will certainly put ex extra cash 20 00:01:00,480 --> 00:01:04,959 Speaker 2: into people's pockets adding to inflationary pressures. That means, according 21 00:01:04,959 --> 00:01:07,120 Speaker 2: to these market economists, the Reserve Bank could be forced 22 00:01:07,120 --> 00:01:09,080 Speaker 2: to hold the cashtraight at four point three five percent 23 00:01:09,400 --> 00:01:13,080 Speaker 2: well into next year. Basically, the government is saying the opposite. 24 00:01:13,120 --> 00:01:16,080 Speaker 2: It's saying that it subtracts from inflation at least over 25 00:01:16,120 --> 00:01:19,160 Speaker 2: the next twelve months, which in a purely mechanical sense 26 00:01:19,240 --> 00:01:23,360 Speaker 2: it does. It's just whether that rebate is spent or 27 00:01:23,400 --> 00:01:26,000 Speaker 2: whether people just say, oh, that's just a cheaper bill 28 00:01:26,240 --> 00:01:27,559 Speaker 2: and don't spend the extra money. 29 00:01:28,560 --> 00:01:31,000 Speaker 1: Sean, the miners were happy, though, weren't they. They got 30 00:01:31,040 --> 00:01:34,160 Speaker 1: plenty of incentives to invest in critical minerals. 31 00:01:34,000 --> 00:01:36,840 Speaker 2: About thirteen point seven billion dollars in production tax credits, 32 00:01:36,880 --> 00:01:39,720 Speaker 2: though they still have to pass Parliament, and this is 33 00:01:39,760 --> 00:01:42,559 Speaker 2: where the fight between the miners and the opposition is heading, 34 00:01:42,560 --> 00:01:44,800 Speaker 2: because the opposition doesn't want to support, as it put it, 35 00:01:44,920 --> 00:01:48,560 Speaker 2: billions of dollars of handouts to billionaires. Hence the oppositions 36 00:01:48,600 --> 00:01:51,200 Speaker 2: against the mining industry not something that happens that often. 37 00:01:51,400 --> 00:01:53,680 Speaker 2: The production tax credits for the critical mineral sector are 38 00:01:53,680 --> 00:01:56,400 Speaker 2: modeled on assistance available in Europe and the US, and 39 00:01:56,440 --> 00:01:59,000 Speaker 2: the government and members of the critical minerals industry says 40 00:01:59,040 --> 00:02:00,800 Speaker 2: it's a way for Australia to become a power in 41 00:02:00,840 --> 00:02:04,360 Speaker 2: the global energy transition. Listier miners are the guys that 42 00:02:04,720 --> 00:02:07,559 Speaker 2: win out most. There's also a six point seven billion 43 00:02:07,600 --> 00:02:11,240 Speaker 2: dollar tax incentive for hydrogen that was welcomed by the industry, 44 00:02:11,280 --> 00:02:14,560 Speaker 2: though people want to make sure it's simply applied wrap 45 00:02:14,560 --> 00:02:17,240 Speaker 2: of the budget mildly inflationary, some of those critical minermal 46 00:02:17,280 --> 00:02:18,800 Speaker 2: miners win most so. 47 00:02:18,919 --> 00:02:22,280 Speaker 1: On story number two. Speaking of inflation, wages growth, which 48 00:02:22,320 --> 00:02:25,120 Speaker 1: is a critical part of that whole inflation puzzle, it 49 00:02:25,320 --> 00:02:28,120 Speaker 1: slowed during the March quarter to a pace last scene 50 00:02:28,120 --> 00:02:29,040 Speaker 1: more than a year ago. 51 00:02:29,480 --> 00:02:31,640 Speaker 2: The zero point eight percent increase in salaries in the 52 00:02:31,639 --> 00:02:33,480 Speaker 2: three months to the end of March was the slowest 53 00:02:33,520 --> 00:02:37,120 Speaker 2: pace of growth since December twenty twenty two and below 54 00:02:37,160 --> 00:02:40,640 Speaker 2: market expectations. Now, the previous three quarters wages growth was 55 00:02:40,639 --> 00:02:42,680 Speaker 2: at least one percent. For the year, wages grew by 56 00:02:42,680 --> 00:02:45,040 Speaker 2: about four point one percent. If you look into the detail, 57 00:02:45,200 --> 00:02:47,880 Speaker 2: private sector's wages of growth has slowed quite a bit. 58 00:02:48,400 --> 00:02:50,440 Speaker 2: It came in at zero point eight percent. Public sector 59 00:02:50,480 --> 00:02:52,919 Speaker 2: wages came in at zero point five percent. We care 60 00:02:52,960 --> 00:02:55,600 Speaker 2: about this because well, we want to get paid more, 61 00:02:55,760 --> 00:02:58,919 Speaker 2: but also a big part of a company's cost base 62 00:02:59,040 --> 00:03:01,200 Speaker 2: is wages. If they rise, the company's more likely to 63 00:03:01,240 --> 00:03:03,760 Speaker 2: put up prices, which of course flows through to inflation. 64 00:03:04,440 --> 00:03:07,960 Speaker 1: Story number three show on BHP chief executive Mike Henry 65 00:03:08,000 --> 00:03:11,640 Speaker 1: has jumped on Anglo americans plans to demerge its platinum 66 00:03:11,680 --> 00:03:15,040 Speaker 1: and diamond businesses, saying it's a variant of the sixty 67 00:03:15,080 --> 00:03:18,080 Speaker 1: four billion dollar takeover proposal from the Big Australian. 68 00:03:18,639 --> 00:03:21,560 Speaker 2: Anglo unveiled a new strategy to investors thirty six hours 69 00:03:21,560 --> 00:03:24,200 Speaker 2: ago which involved selling or shutting all the company's assets 70 00:03:24,240 --> 00:03:27,440 Speaker 2: except those producing copper, iron ore and crop nutrients. It 71 00:03:27,480 --> 00:03:29,800 Speaker 2: will sell its interests in platinum and diamonds, and Boss 72 00:03:29,840 --> 00:03:32,400 Speaker 2: Duncan when Blad said the sale of the assets would 73 00:03:32,400 --> 00:03:35,160 Speaker 2: be more difficult if linked to a takeover bad news 74 00:03:35,160 --> 00:03:38,160 Speaker 2: for Anglo shareholders. The share price actually went down after 75 00:03:38,200 --> 00:03:42,360 Speaker 2: the news. The implied BHP offer is twenty seven pounds 76 00:03:42,400 --> 00:03:45,200 Speaker 2: fifty three pence. The shares are training at twenty six 77 00:03:45,240 --> 00:03:48,680 Speaker 2: pounds twelvepence. For his part, mister Henry said the plan 78 00:03:48,760 --> 00:03:52,960 Speaker 2: of Anglo management of validated BHP's proposal, which is very similar, except, 79 00:03:52,960 --> 00:03:55,920 Speaker 2: of course, AP takes control of the assets. Mister Henry 80 00:03:55,960 --> 00:03:59,240 Speaker 2: also said he'd have preferred private discussions with the ANGLO board, 81 00:03:59,240 --> 00:04:01,520 Speaker 2: but it all leaked. He said a formal bid won't 82 00:04:01,560 --> 00:04:03,880 Speaker 2: be delivered over the next week unless Anglo comes to 83 00:04:03,920 --> 00:04:05,040 Speaker 2: the negotiating table. 84 00:04:05,840 --> 00:04:08,800 Speaker 1: Story number four from today, Sean, I know you're excited 85 00:04:08,800 --> 00:04:12,560 Speaker 1: about this. All newly minted coins will include King Charles 86 00:04:12,560 --> 00:04:15,560 Speaker 1: the Third's effigy, having already been added to the five 87 00:04:15,640 --> 00:04:17,800 Speaker 1: cent and one dollar and two dollar coins last year. 88 00:04:17,800 --> 00:04:18,479 Speaker 1: Now it's all of them. 89 00:04:18,880 --> 00:04:20,680 Speaker 2: It's the first time in fifty nine years the Royal 90 00:04:20,680 --> 00:04:23,799 Speaker 2: Australian Mint has changed the monarch on its full suite 91 00:04:23,839 --> 00:04:26,880 Speaker 2: of coins. The mint set's taken two months to transition 92 00:04:27,360 --> 00:04:30,159 Speaker 2: fully to case three, as I like to call him. 93 00:04:30,320 --> 00:04:32,080 Speaker 2: The first person to get a full proof will be 94 00:04:32,080 --> 00:04:33,200 Speaker 2: the King himself. 95 00:04:33,360 --> 00:04:33,520 Speaker 1: Now. 96 00:04:33,520 --> 00:04:36,799 Speaker 2: A full proof set apparently contains the highest quality coins possible, 97 00:04:36,839 --> 00:04:39,240 Speaker 2: made from a high grade metal and a sterile environment, 98 00:04:39,640 --> 00:04:42,279 Speaker 2: pressed four times under one hundred and ten tons of pressure, 99 00:04:42,440 --> 00:04:44,400 Speaker 2: cost about one hundred and fifty bucks. The more standard 100 00:04:44,480 --> 00:04:46,880 Speaker 2: versions about fifty bucks. You named, Michael that the mint 101 00:04:46,880 --> 00:04:49,400 Speaker 2: can produce two million coins each day, and each coin 102 00:04:49,440 --> 00:04:53,520 Speaker 2: stays in circulation for about thirty years. Fascinating it certainly is. 103 00:04:53,600 --> 00:04:56,640 Speaker 1: I'm fascinated by it. Story number five last one sean, 104 00:04:56,680 --> 00:05:00,280 Speaker 1: this is pretty incredible. Shares in video game retailing Game 105 00:05:00,320 --> 00:05:04,359 Speaker 1: Stop and cinema group AMC Entertainment serves for a second 106 00:05:04,560 --> 00:05:09,440 Speaker 1: consecutive session, extending a memestock rally that was sparked this 107 00:05:09,520 --> 00:05:13,400 Speaker 1: week by the reemergence of popular day trader roring Kitty. 108 00:05:13,880 --> 00:05:16,919 Speaker 2: Here's GameStop and AMC rose sixty percent thirty two percent 109 00:05:17,040 --> 00:05:19,479 Speaker 2: yesterday morning, building on the seventy three and seventy seven 110 00:05:19,520 --> 00:05:22,520 Speaker 2: percent games on Monday. Trading in game Stop was briefly 111 00:05:22,560 --> 00:05:26,400 Speaker 2: halted due to volatility three times that happened. Both stocks 112 00:05:26,400 --> 00:05:28,560 Speaker 2: did pull back from high's earlier in the day, losing 113 00:05:28,600 --> 00:05:31,640 Speaker 2: some momentum. Now. It all comes after trader Keith Gill, 114 00:05:31,880 --> 00:05:34,920 Speaker 2: known as roring Kitty, appeared to resurface on Sunday after 115 00:05:34,960 --> 00:05:37,960 Speaker 2: a three year hiatus from social media site x gils 116 00:05:38,000 --> 00:05:39,720 Speaker 2: at the heart of a rally driven by an army 117 00:05:39,720 --> 00:05:43,080 Speaker 2: of retail traders during the pandemic. Retail traders polled back 118 00:05:43,120 --> 00:05:45,280 Speaker 2: in to many of those memes stocks over the past 119 00:05:45,320 --> 00:05:48,360 Speaker 2: forty eight hours or so, including game stop in AMC 120 00:05:48,800 --> 00:05:51,120 Speaker 2: after his post I did not understand Michael. 121 00:05:51,480 --> 00:05:53,400 Speaker 1: All right, there we go the top five business stories 122 00:05:53,440 --> 00:05:56,919 Speaker 1: in five minutes. Thank you Sean, Thank you Michael. It's Thursday, 123 00:05:56,960 --> 00:05:59,160 Speaker 1: the sixteenth of May twenty twenty four. Remembered to hit 124 00:05:59,200 --> 00:06:01,680 Speaker 1: follow on the podcast. If five minutes isn't enough, you 125 00:06:01,680 --> 00:06:03,960 Speaker 1: can find our longer daily show called Fear and Greed 126 00:06:04,160 --> 00:06:06,440 Speaker 1: wherever you listen to podcasts. That comes with a bunch 127 00:06:06,440 --> 00:06:09,440 Speaker 1: of interviews and things. Today's interview is actually a really 128 00:06:09,480 --> 00:06:12,400 Speaker 1: good one for explaining the whole memes dock space if 129 00:06:12,400 --> 00:06:14,040 Speaker 1: you haven't been able to get your head around it. 130 00:06:14,040 --> 00:06:16,560 Speaker 1: If you're a little bit confused, head along to Fearangreed 131 00:06:16,600 --> 00:06:18,919 Speaker 1: dot com dot au check out today's interview and you 132 00:06:18,920 --> 00:06:21,640 Speaker 1: will understand it all. I'm Michael Thompson and that was 133 00:06:21,640 --> 00:06:23,919 Speaker 1: the fast fire business news by Fear and Greed. Have 134 00:06:24,000 --> 00:06:27,240 Speaker 1: a great day.