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

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Speaker 1: for Tuesday, the eleventh of June twenty twenty four. I'm

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Speaker 1: Sean Elma. Every afternoon, we've got the five stories that

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Speaker 1: happened today that you need to know about. Stro Num one.

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Speaker 1: The SMPASX two hundred closed down one point three percent

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Speaker 1: today to seven seven hundred and fifty five points, retracing

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Speaker 1: much of the surge last Friday. It's all about fears

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Speaker 1: and interest rates will remain higher for longer, both here

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Speaker 1: and in the United States. Today the banks were lower.

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Speaker 1: National Australian Bank, ain Z and Westpac were all down

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Speaker 1: around one percent. So to the iron ore miners more

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Speaker 1: on that shortly Goodman Group, Telstra Transurban, QBE, Macquarie Group CSL.

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Speaker 1: They all fell around one percent or more. West Farmers

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Speaker 1: was the only top twenty stock to end the day higher.

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Speaker 1: The local gold miners had a bad day after the

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Speaker 1: price of the precious metal dip below twenty three hundred

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Speaker 1: US dollars, an ounce that came after strong jobs figures

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Speaker 1: suggesting that there won't be a rate cut of the

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Speaker 1: US economy for a while. West African sources Romilius and Barbara, Bellevue, Gold,

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Speaker 1: and Northern Star all dropped sharply. Story number two in

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Speaker 1: corporate news today, AGL Energy's share price was down nearly

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Speaker 1: two percent after it announced it will spend three hundred

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Speaker 1: million dollars over the next four years after signing a

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Speaker 1: partnership with Ovo's Caluser smart energy platform. It will also

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Speaker 1: take a twenty percent direct stake in Clusa. Beach Energy

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Speaker 1: expects a non cash impairment charge of up to four

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Speaker 1: hundred million dollars in this year's full year results following

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Speaker 1: issues at a Taranaki and Bass basins. Both will be

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Speaker 1: impaired due to disappointing gas flower results, and the Foreign

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Speaker 1: Investment Review Board has approved the takeover of CSR by

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Speaker 1: a French building materials giant, Saint Gervain. The deal is

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Speaker 1: subject to shareholder approval at a scheme meeting on Wednesday

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Speaker 1: that one will pass. I'm sure Story number three. The

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Speaker 1: iron ore miners BHP, Fortescu Metals, and Rio Tinto all

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Speaker 1: fell sharply today as the commodity hit a two month low.

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Speaker 1: As we know, Forteskew Metals group in particular is driven

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Speaker 1: by iron ore prices, and given the ore is the

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Speaker 1: biggest export of BHP and Rio Tinto. It has a

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Speaker 1: fair influence on their share prices. After peaking above one

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Speaker 1: hundred and forty US dollars a ton early this year,

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Speaker 1: iron ore dropped to about one hundred US dollars a ton,

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Speaker 1: briefly fell below that level, then it recovered to one

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Speaker 1: hundred and twenty US dollars a ton. It's now back

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Speaker 1: to around one hundred and five US dollars a ton.

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Speaker 1: It generally rises and falls on expectations about what's happening

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Speaker 1: in China, whether Beijing is going to stimulate the economy

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Speaker 1: or save the property market. For example. Iron or of course,

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Speaker 1: is used in steel making, which the Chinese need. Chinese

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Speaker 1: growth forecasts have been a little more upbeat recently and

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Speaker 1: that's aided the turnaround and all prices, but sentiment has

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Speaker 1: changed over the past fortnite and then on Friday, China

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Speaker 1: State Planner issued a special Action plan on conserving energy

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Speaker 1: and reducing carbon emissions in the steel sector. Not good

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Speaker 1: use for the iron ore minors. Hence their share prices

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Speaker 1: were down today story number four. Opposition Later, Peter Dunton

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Speaker 1: today said the coalition won't put forward a new twenty

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Speaker 1: thirty missions reduction target until after the next election. He

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Speaker 1: refused to say if the coalition would produce a lower

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Speaker 1: twenty thirty target than the government, even though over the

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Speaker 1: weekend he said he'd go to the next election opposing

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Speaker 1: Labour's goal of decreasing carbon missions by forty three percent

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Speaker 1: compared to the two thousand and five baseline. Mister Dutton

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Speaker 1: did say the Libs were committed to net zero by

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Speaker 1: twenty fifty. The fact that mister Dutton is equivocating on

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Speaker 1: targets pretty much guarantees energy policy will be an election

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Speaker 1: issue in the run up to the next poll due

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Speaker 1: in less than twelve months. And story number five, Japanese

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Speaker 1: investors have been taking advantage of the week yen and

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Speaker 1: selling offshore bonds, including Aussie bonds, and each of the

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Speaker 1: last six months, Japanese investors have sold federal and state

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Speaker 1: government bonds. According to RBC Markets, we're talking about Australian

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Speaker 1: federal and state government bonds. Over the past twelve months,

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Speaker 1: Japan has sold a cumulative twelve billion dollars of Australian credit,

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Speaker 1: including bonds, taking advantage of the week en. Now, the

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Speaker 1: size of the purchases highlights how far the Japanese yen

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Speaker 1: has fallen and it's COVID low. One Aussie dollar would

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Speaker 1: buy around sixty six yen. Now one Aussie dollar buys

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Speaker 1: around one hundred and four yen. The yen is weak

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Speaker 1: against the US dollar. Also, in fact, it's weak against

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Speaker 1: most other major currencies. The reason is if you invest

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Speaker 1: in the US government bond at the moment, or an

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Speaker 1: Aussie bond, you might get four or five percent compared

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Speaker 1: to almost zero in Japan. Therefore, international investors don't want yen.

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Speaker 1: As if the Afternoon Report for Tuesday, the eleventh of

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Speaker 1: June twenty twenty four, don't forget to follow on the

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Speaker 1: podcast and find Fear and Greed on LinkedIn, Instagram, ex

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Speaker 1: TikTok and Facebook. Join Michael Thoms and I Tomorrow I'm

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Speaker 1: morning for the Fast five by Fear and Greed, the

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Speaker 1: top five business stories you need to know in just

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Speaker 1: five minutes. I'm Sean Elmer. Enjoy your evening