1 00:00:03,760 --> 00:00:06,960 Speaker 1: Welcome to the Fear and Greed Business News Afternoon Report 2 00:00:07,040 --> 00:00:09,479 Speaker 1: for Wednesday, the twenty eighth of August twenty twenty four. 3 00:00:09,840 --> 00:00:12,440 Speaker 1: Michael Thompson. Every afternoon, we've got the five stories that 4 00:00:12,480 --> 00:00:14,480 Speaker 1: happened today that you need to know about. So let's 5 00:00:14,480 --> 00:00:17,640 Speaker 1: get going. Story number one. The S and p ASX 6 00:00:17,680 --> 00:00:20,320 Speaker 1: two hundred closed flat over the day at eight thousand 7 00:00:20,320 --> 00:00:24,040 Speaker 1: and seventy one points, with a surprise late uplift, reversing 8 00:00:24,040 --> 00:00:27,200 Speaker 1: a day largely spent in the red. Consumer staples and 9 00:00:27,240 --> 00:00:30,400 Speaker 1: financials were among the best performers and helped drive the 10 00:00:30,440 --> 00:00:35,760 Speaker 1: afternoon resurgence. Resources, communication services, energy, metals and mining all 11 00:00:35,800 --> 00:00:38,680 Speaker 1: slumped throughout the day. Woodside Energy was down one point 12 00:00:38,720 --> 00:00:42,080 Speaker 1: two percent, with Santos dropping zero point seven percent. Four 13 00:00:42,120 --> 00:00:46,240 Speaker 1: Descu Medals fell one percent. Plenty of companies reporting results today, 14 00:00:46,280 --> 00:00:51,600 Speaker 1: Flight Center reported its highest record earnings results. Its shares 15 00:00:51,680 --> 00:00:54,840 Speaker 1: jumped three point seven percent. Woolworth's also had a lift 16 00:00:54,880 --> 00:00:57,720 Speaker 1: in sales. Its shares closed up three point three percent. 17 00:00:58,160 --> 00:01:00,120 Speaker 1: Moving on to story number two. Now, if if you 18 00:01:00,160 --> 00:01:03,960 Speaker 1: think buying shares in the top ASX listed companies is expensive, 19 00:01:04,400 --> 00:01:07,679 Speaker 1: you would be correct. In fact, Australia's biggest listed companies 20 00:01:07,720 --> 00:01:11,160 Speaker 1: are the most expensive right now, more so than at 21 00:01:11,240 --> 00:01:13,840 Speaker 1: any time in history on the basis of share prices 22 00:01:13,920 --> 00:01:16,640 Speaker 1: versus earnings, according to a new report from JP Morgan. 23 00:01:17,000 --> 00:01:20,440 Speaker 1: The report found that weakening earnings with forty percent of 24 00:01:20,520 --> 00:01:23,720 Speaker 1: companies issuing downgrades this season, would mean that without a 25 00:01:23,760 --> 00:01:29,240 Speaker 1: pickup in commodity prices, Australia will be an earnings growth laggard. 26 00:01:29,680 --> 00:01:32,840 Speaker 1: That's a quote for a while yet. JP Morgan's equities 27 00:01:32,920 --> 00:01:36,040 Speaker 1: research boss Jason Stead told The Financial Review that while 28 00:01:36,080 --> 00:01:39,520 Speaker 1: Australian and US bosses are trading at elevated multiples, the 29 00:01:39,680 --> 00:01:42,440 Speaker 1: US has strong earnings growth to back it up. He 30 00:01:42,520 --> 00:01:45,880 Speaker 1: said this is a rare market setup where share prices 31 00:01:45,880 --> 00:01:49,200 Speaker 1: and earnings are going opposite to one another. Story Number 32 00:01:49,200 --> 00:01:52,200 Speaker 1: three Green's leader Adam Bant is trying to be the 33 00:01:52,320 --> 00:01:55,200 Speaker 1: Robin Hood of the business world. He used a National 34 00:01:55,240 --> 00:01:59,600 Speaker 1: Press Club address to relaunch his plans today to slug 35 00:01:59,760 --> 00:02:02,840 Speaker 1: core operations with big new taxes. He's called it the 36 00:02:02,920 --> 00:02:05,760 Speaker 1: Big Corporations Package, in a bid to tackle what he's 37 00:02:05,800 --> 00:02:09,360 Speaker 1: describing as excessive profits from large companies. It includes a 38 00:02:09,480 --> 00:02:13,360 Speaker 1: proposed forty percent tax on coal and mining businesses, quite 39 00:02:13,360 --> 00:02:17,760 Speaker 1: similar to Kevin Rudd's resource superprofit tax, a petroleum resource 40 00:02:17,800 --> 00:02:19,920 Speaker 1: rent tax and a forty percent tax on so called 41 00:02:20,000 --> 00:02:23,640 Speaker 1: excessive profits for companies whose turnover is one hundred million 42 00:02:23,639 --> 00:02:26,519 Speaker 1: dollars plus. He's had his plan costed by the Parliamentary 43 00:02:26,520 --> 00:02:29,839 Speaker 1: Budget Office and it reckons all these components together will 44 00:02:29,880 --> 00:02:34,160 Speaker 1: generate five hundred and fourteen billion dollars extra for the 45 00:02:34,200 --> 00:02:37,840 Speaker 1: federal purse over ten years. There is some precedent for this, 46 00:02:37,880 --> 00:02:40,920 Speaker 1: with the Henry Tax Review recommending a forty percent resource 47 00:02:41,000 --> 00:02:44,519 Speaker 1: superprofits tax, but it will be fought tooth and nailed 48 00:02:44,520 --> 00:02:48,400 Speaker 1: by Corporate Australia. Story number four. Donald Trump faces a 49 00:02:48,480 --> 00:02:52,200 Speaker 1: new federal indictment. It is the same four charges brought 50 00:02:52,200 --> 00:02:54,560 Speaker 1: against him last year, but following a ruling that former 51 00:02:54,600 --> 00:02:58,200 Speaker 1: presidents largely are immune from criminal prosecution, this time the 52 00:02:58,280 --> 00:03:01,200 Speaker 1: charges are focused on him as a place political candidate 53 00:03:01,600 --> 00:03:04,880 Speaker 1: looking to be re elected. The charges or accusations that 54 00:03:04,919 --> 00:03:07,520 Speaker 1: he allegedly took part in a conspiracy to block the 55 00:03:07,520 --> 00:03:11,200 Speaker 1: certification of his election defeat to Joe Biden. Fate claims 56 00:03:11,200 --> 00:03:13,440 Speaker 1: a voter fraud or at the heart of this case. 57 00:03:13,520 --> 00:03:17,040 Speaker 1: Royce's reports that the updated indictment is relying on key 58 00:03:17,080 --> 00:03:21,720 Speaker 1: testimony and evidence from witnesses outside of government, including ex 59 00:03:21,760 --> 00:03:25,480 Speaker 1: Arizona House speaker Rusty Bowers. It no longer includes the 60 00:03:25,560 --> 00:03:28,919 Speaker 1: earlier allegations that he tried to pressure the US Justice 61 00:03:28,960 --> 00:03:32,799 Speaker 1: Department to overturn his loss, and finally, story number five. 62 00:03:32,880 --> 00:03:35,760 Speaker 1: Tabcorp has posted a one point three to six billion 63 00:03:35,800 --> 00:03:39,000 Speaker 1: dollar loss, including non cash impairment charges of one point 64 00:03:39,000 --> 00:03:42,360 Speaker 1: three eight billion dollars amid quote challenging conditions in the 65 00:03:42,360 --> 00:03:46,040 Speaker 1: gambling market. Australia's largest gambling company had a three point 66 00:03:46,120 --> 00:03:48,720 Speaker 1: nine percent decline in group revenue over the twenty twenty 67 00:03:48,760 --> 00:03:53,000 Speaker 1: four financial year. CEO Gillan McLaughlin, the former AFL boss, 68 00:03:53,200 --> 00:03:56,800 Speaker 1: has warned that the macroeconomic environment will remain difficult for 69 00:03:56,880 --> 00:04:00,360 Speaker 1: customers amid higher interest rates and high inflation. Add to 70 00:04:00,440 --> 00:04:03,160 Speaker 1: this a crackdown at a regulatory level, such as gambling 71 00:04:03,200 --> 00:04:06,800 Speaker 1: advertising restrictions, and the challenges are not easing up in 72 00:04:06,840 --> 00:04:10,280 Speaker 1: the near term. Shares were down fifteen percent over the day. 73 00:04:10,720 --> 00:04:13,080 Speaker 1: That's it for the afternoon report for Wednesday, the twenty 74 00:04:13,120 --> 00:04:15,840 Speaker 1: eighth of August twenty twenty four. I'll be back tomorrow 75 00:04:15,880 --> 00:04:19,040 Speaker 1: morning with the Thursday edition of Feer and Green Business News. 76 00:04:19,200 --> 00:04:21,480 Speaker 1: I'm Michael Thompson. Enjoy your evening.