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

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Speaker 1: for Wednesday, the fifth of March twenty twenty five. I'm

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

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Speaker 1: happened today that you need to know about. Story number one.

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Speaker 1: The local share market fell zero point seven percent today

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Speaker 1: after a sell off on Wall Street. Fears of a

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Speaker 1: trade war hit markets hard. There's some PASX two hundred

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Speaker 1: closed at eight one hundred and forty one points. It's

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Speaker 1: back to where it was in late December. Followed a

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Speaker 1: sell off on Wall Street after Canada and China instituted

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Speaker 1: tariffs on US imports into their countries. That's in response

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Speaker 1: to the US tariffs on their products. Mexico is expected

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Speaker 1: to impose tariffs in coming days. There's a slight caveat

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Speaker 1: Donald Trump's Commerce secretary, Howard Lotnik, suggested there could be

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Speaker 1: a middle ground between the USA and Canada and Mexico.

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Speaker 1: In any case, there's a trade war going on and

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Speaker 1: that will lift global prices and disrupt apply chains that

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Speaker 1: could hit earnings of local companies. Hence the sell off.

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Speaker 1: Big banks were losers on the day, while the miners

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Speaker 1: benefited from a bunch of new economic stimuli out of Beijing.

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Speaker 1: Away from equities, the yozie dollars trading around sixty two

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Speaker 1: and a half fe US cents, goals hire at twenty

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Speaker 1: nine to thirteen US dollars an ounce, and iron Ore

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Speaker 1: continues to trade under one hundred US dollars a ton.

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Speaker 1: Sorry Number two Rare Tinto will allow its Australian investors

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Speaker 1: to vote on whether it should consider dumping its London listing,

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Speaker 1: even though the board of the mining giant is against

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Speaker 1: any such move. Rio is listed in both Australia and

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Speaker 1: the United Kingdom. It's faced pressure from activist share holders

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Speaker 1: to follow its major rival BHP and only list in

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Speaker 1: Australia now. HP stopped trading on the London Sock Exchange

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Speaker 1: back in twenty twenty two. The current implied valuation discount

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Speaker 1: between chairs of Rio Tinto Plc in London relative to

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Speaker 1: the ass listed company is around eighteen percent. That's a

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Speaker 1: thirty billion dollar evaluation gap. Why is there a gap, Well,

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Speaker 1: it's in large part due to different tax treatment of dividends.

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Speaker 1: We have Franklin credits here in Australia. That's ignited though

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Speaker 1: a debate about the structure with activist investors, saying it

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Speaker 1: should just be listed on the AX. The company will

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Speaker 1: allow a vote at its AGM, even though it publicly

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Speaker 1: says the current dual listing continues to be effective and

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Speaker 1: provides benefits to investors. Another reason not to well it

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Speaker 1: probably likes access to European investors easier from the London

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Speaker 1: Stock Exchange. RIO itself says it would be value destructive

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Speaker 1: and result in tax costs in the billions of dollars.

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Speaker 1: Straight Number three Mineral Resources has been hit by a

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Speaker 1: downgrade from ratings agency Fitch, adding to the growing list

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Speaker 1: of problems for the iron ore and lithium minor ratings

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Speaker 1: downgrade means it's more expensive for the company to raise

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Speaker 1: money and it has a lot of debt on its books.

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Speaker 1: Fich has given it a rating of double B minus.

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Speaker 1: It said it's an elevated vulnerability to default risk, particularly

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Speaker 1: in the event of adverse changes in business or economic

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Speaker 1: conditions over time. Once upon a time, we call that

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Speaker 1: junk bonds. Nowadays we call it to non investment grade.

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Speaker 1: Same thing. Though min Rez is having a tough time

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Speaker 1: during earning season. It announced an eight hundred and seven

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Speaker 1: million dollar interim loss. It cut iron all production targets,

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Speaker 1: cut its dividend. It's also facing the regulatory probe into

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Speaker 1: the behavior of founder and see Chris Ellison was down

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Speaker 1: three percent today. It's down nearly forty percent over the

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Speaker 1: past year. Story number four Nine Entertainment's second largest shareholder, Pendel,

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Speaker 1: is urging the group to pursue a deal with US

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Speaker 1: real estate giant Costar to sell property platform Domain nine.

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Speaker 1: Sixty percent of Domain co Stars off at two point

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Speaker 1: seven billion dollars for Domain and needs Nine to agree

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Speaker 1: to a deal. Now, Pendal owns almost percent of Nine

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Speaker 1: and wants the media group to do a deal. According

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Speaker 1: to the AFI, the challenge for Nine, what do they

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Speaker 1: do if they sell Domain? They end up with stan

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Speaker 1: the nine TV network, a bunch of publishing assets radio stations,

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Speaker 1: but it will be a much smaller business. Domain share

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Speaker 1: price is training above four dollars thirty a share at

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Speaker 1: the moment. That's higher than the offer of four dollars

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Speaker 1: twenty a share. Clearly, investors think a deal is on

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Speaker 1: the way, but they think will be done at a

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Speaker 1: higher price. And finally, Story number five, Ukrainian President Vladimir

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Speaker 1: Zelenski has reached out to US President Donald Trump, saying

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Speaker 1: it was time to make things right between them and

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Speaker 1: pursue peace as soon as possible under America's strong leadership.

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Speaker 1: His post on social media platform mix came immediately after

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Speaker 1: Trump cut off military assistance to Ukraine, raising European fears

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Speaker 1: that Russia will quickly gain the upper hand in the war.

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Speaker 1: The post said, and I quate my team and I

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Speaker 1: stand ready to work under President Trump's strong leadership to

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Speaker 1: get a piece that lasts. Media is reporting that the

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Speaker 1: two will move forward on a minerals sharing deal that

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Speaker 1: was dumped after the White House brawl last Friday. That's

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Speaker 1: if the afternoon report for Wednesday, the fifth of March

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Speaker 1: twenty twenty five. Make sure you hit follow on the

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Speaker 1: podcast will be back tomorrow morning. What's the first edition

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Speaker 1: of Fear and Green Business News. I'm sure I helma

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Speaker 1: enjoy your evening.