1
00:00:06,280 --> 00:00:09,960
Speaker 1: The experts have spoken. The federal budget is inflationary and

2
00:00:10,039 --> 00:00:13,360
Speaker 1: won't help the push to cut interest rates, wages, growth

3
00:00:13,480 --> 00:00:17,439
Speaker 1: slows sharply, and meme stocks keep running as echoes of

4
00:00:17,520 --> 00:00:20,400
Speaker 1: twenty twenty one are heard in markets. Welcome to Fear

5
00:00:20,440 --> 00:00:22,680
Speaker 1: and greed. Daily business news for people who make their

6
00:00:22,720 --> 00:00:26,080
Speaker 1: own decisions. It is Thursday, the sixteenth of May twenty

7
00:00:26,120 --> 00:00:29,160
Speaker 1: twenty four. I'm Michael Thompson. Good morning, Sean Aylmer.

8
00:00:29,640 --> 00:00:31,560
Speaker 2: Good morning, Michael, Seawan.

9
00:00:31,720 --> 00:00:34,960
Speaker 1: After the show, you have a great interview today. I

10
00:00:35,000 --> 00:00:37,040
Speaker 1: know they're all great, but this one is even greater.

11
00:00:37,240 --> 00:00:40,720
Speaker 1: You're speaking with Chris Breichy, founder and CEO of online

12
00:00:40,760 --> 00:00:43,600
Speaker 1: investment advisor Stockspot. Chris is great, but it's what is

13
00:00:43,640 --> 00:00:44,920
Speaker 1: talking about that's fascinating.

14
00:00:45,400 --> 00:00:49,840
Speaker 2: Meme stocks. We talk about why the craze of twenty

15
00:00:49,880 --> 00:00:53,440
Speaker 2: twenty one is back in twenty twenty four. We've seen

16
00:00:53,640 --> 00:00:58,200
Speaker 2: a couple of me well known memestocks AMC and GameStop

17
00:00:58,960 --> 00:01:01,319
Speaker 2: surge over the past couple of days. We ask him

18
00:01:01,320 --> 00:01:04,600
Speaker 2: why they're called meme stocks to begin with, and why

19
00:01:04,640 --> 00:01:08,440
Speaker 2: they're surging, and what about this roaring kitty fella. We

20
00:01:08,520 --> 00:01:10,000
Speaker 2: ask him all about that too. It's a great chat.

21
00:01:10,280 --> 00:01:12,920
Speaker 1: It really is. If if you have been at all

22
00:01:13,040 --> 00:01:16,679
Speaker 1: confused over the memestock kind of craze, this is the

23
00:01:16,760 --> 00:01:19,759
Speaker 1: interview to listen to because you just Chris goes through

24
00:01:19,800 --> 00:01:21,840
Speaker 1: it in chapter and verse and just explains it all.

25
00:01:22,120 --> 00:01:24,240
Speaker 1: So it is a great way to get your head

26
00:01:24,240 --> 00:01:26,840
Speaker 1: around that whole situation. It is coming up after the show,

27
00:01:26,880 --> 00:01:30,280
Speaker 1: so stick around for that one. The main story this morning, though,

28
00:01:30,319 --> 00:01:33,240
Speaker 1: Sean The day after the budget, it really proved to

29
00:01:33,240 --> 00:01:35,720
Speaker 1: be a day of debate, didn't it, About the inflationary

30
00:01:35,760 --> 00:01:40,280
Speaker 1: impact of the Federal treasurers spending and an unlikely split

31
00:01:40,840 --> 00:01:42,960
Speaker 1: between big business and the opposition.

32
00:01:43,880 --> 00:01:48,000
Speaker 2: Let's start with the economy. Is the budget inflationary or not?

33
00:01:49,000 --> 00:01:52,320
Speaker 2: That was the big question. There's a surplus which suggests

34
00:01:52,520 --> 00:01:55,280
Speaker 2: it's not, but that isn't as big as it could

35
00:01:55,280 --> 00:01:58,640
Speaker 2: have been, so maybe it is. The Business Council Australi

36
00:01:58,720 --> 00:02:00,680
Speaker 2: pointed out that new spending in this saves will put

37
00:02:00,680 --> 00:02:03,480
Speaker 2: twenty four billion dollars into the economy over the next

38
00:02:03,480 --> 00:02:06,080
Speaker 2: four years, and federal outlays will hit twenty six point

39
00:02:06,120 --> 00:02:10,080
Speaker 2: seven percent of GDP, bigger than any time since nineteen

40
00:02:10,200 --> 00:02:13,240
Speaker 2: eighty seven. The Business Council said more could be done

41
00:02:13,280 --> 00:02:15,880
Speaker 2: in terms of savings from areas such as the National

42
00:02:15,919 --> 00:02:19,480
Speaker 2: Disability Insurance Scheme. They came down on the side of yes,

43
00:02:19,520 --> 00:02:22,000
Speaker 2: it is inflationary. The Australian Chamber of Commerce and Industry

44
00:02:22,040 --> 00:02:25,079
Speaker 2: said there was little sign of budget repair on Tuesday night,

45
00:02:25,160 --> 00:02:28,120
Speaker 2: while AI Group boss in As Willock's said while three

46
00:02:28,240 --> 00:02:31,000
Speaker 2: hundred dollars rebates on energy was good, it does all

47
00:02:31,040 --> 00:02:33,320
Speaker 2: disappear the following year and suddenly you get these price

48
00:02:33,360 --> 00:02:37,600
Speaker 2: pressures again. Ratings AGENCYSMP affirmed Australia's triple A rating post

49
00:02:37,680 --> 00:02:42,440
Speaker 2: the budget. It said that it was mildly inflationary, and

50
00:02:42,800 --> 00:02:47,040
Speaker 2: some market economists have worn the energy rebates lower student

51
00:02:47,120 --> 00:02:51,079
Speaker 2: debt and housing assistants will put extra cash into people's pockets.

52
00:02:51,160 --> 00:02:54,200
Speaker 2: The argument being a rebate doesn't put cash into their pockets,

53
00:02:54,720 --> 00:02:57,400
Speaker 2: but they're basically saying it will put cash into their pockets,

54
00:02:57,440 --> 00:03:00,880
Speaker 2: adding to inflationary pressures. The Reserve Bank could be forced

55
00:03:00,919 --> 00:03:02,600
Speaker 2: to hold the cash rate at four point three five

56
00:03:02,600 --> 00:03:05,880
Speaker 2: percent well into next year. That's how the argument goes

57
00:03:05,919 --> 00:03:08,880
Speaker 2: among some of those market economists. The government basically says

58
00:03:08,880 --> 00:03:11,200
Speaker 2: the opposite. It says the rebates will actually be tracked

59
00:03:11,280 --> 00:03:14,280
Speaker 2: somewhere between half percent and zero point seventy five percentage

60
00:03:14,280 --> 00:03:17,440
Speaker 2: points from headline inflation in the short term. That's what

61
00:03:17,480 --> 00:03:20,040
Speaker 2: the government says. But I think the consensus is that

62
00:03:20,080 --> 00:03:22,200
Speaker 2: the budget probably is a bit inflationary.

63
00:03:22,760 --> 00:03:25,720
Speaker 1: How is there so much kind of variation in these

64
00:03:25,800 --> 00:03:29,160
Speaker 1: viewpoints because on one hand, John, you've got obviously Federal

65
00:03:29,160 --> 00:03:32,160
Speaker 1: Treasury saying that that kind of the modeling suggests that

66
00:03:32,480 --> 00:03:35,640
Speaker 1: perhaps inflation could come back within the target range by

67
00:03:35,640 --> 00:03:37,040
Speaker 1: the end of this year, and then you have all

68
00:03:37,080 --> 00:03:40,400
Speaker 1: of these economists saying, well, actually, no, look, it is

69
00:03:40,440 --> 00:03:43,280
Speaker 1: actually mildly inflationary and it might be blown out till

70
00:03:43,320 --> 00:03:43,760
Speaker 1: next year.

71
00:03:44,440 --> 00:03:48,360
Speaker 2: The nub of it is that it's a rebate, not

72
00:03:48,440 --> 00:03:50,720
Speaker 2: a cash in hand. Well, there's two parts to it.

73
00:03:51,080 --> 00:03:53,920
Speaker 2: That's the first part. The second part is just the

74
00:03:53,960 --> 00:03:59,840
Speaker 2: mechanical calculation of CPI, which includes energy rents stuff like that.

75
00:04:00,800 --> 00:04:03,240
Speaker 2: Because people are paying less because they're getting a rebate,

76
00:04:03,320 --> 00:04:06,880
Speaker 2: that will necessarily fall. So that mechanical part is why

77
00:04:06,960 --> 00:04:10,200
Speaker 2: Treasury be saying, well, everyone's getting seventy five bucks off quarter.

78
00:04:10,520 --> 00:04:13,160
Speaker 2: Therefore you're going to have the energy costs will be

79
00:04:13,280 --> 00:04:16,040
Speaker 2: lower before the CPI will come back. A bit. That's

80
00:04:16,160 --> 00:04:19,640
Speaker 2: that part of it, whether or not it's inflationary, is

81
00:04:19,720 --> 00:04:23,800
Speaker 2: all about whether people spend that three hundred dollars somewhere

82
00:04:23,800 --> 00:04:26,680
Speaker 2: else or whether they just figure, oh, look it's a rebate,

83
00:04:26,760 --> 00:04:27,960
Speaker 2: it's not actually extra money.

84
00:04:28,400 --> 00:04:31,160
Speaker 1: So it's a great deal of forecasting around, really around

85
00:04:31,279 --> 00:04:33,800
Speaker 1: human behavior, which is often a very difficult thing to

86
00:04:33,839 --> 00:04:34,599
Speaker 1: actually predict.

87
00:04:35,279 --> 00:04:37,720
Speaker 2: Yeah, I mean that's what economics is, though. It's basically

88
00:04:37,800 --> 00:04:39,560
Speaker 2: trying to put numbers around human behavior.

89
00:04:40,839 --> 00:04:42,520
Speaker 1: I think for the very first time, I just got

90
00:04:42,520 --> 00:04:47,240
Speaker 1: excited about economic sean. Oh, here we go a little

91
00:04:47,279 --> 00:04:49,080
Speaker 1: bit of it. A shiver went through me just then.

92
00:04:49,240 --> 00:04:52,560
Speaker 1: That could have been horror. The miners were happy, though.

93
00:04:52,800 --> 00:04:56,800
Speaker 1: Yesterday they got plenty of incentives to invest in critical minerals.

94
00:04:56,640 --> 00:04:59,520
Speaker 2: About thirteen point seven billion dollars in production tax credits.

95
00:04:59,760 --> 00:05:03,600
Speaker 2: They still have to pass Parliament. Now they might struggle

96
00:05:03,640 --> 00:05:06,720
Speaker 2: because the opposition said it won't support billions of dollars

97
00:05:06,720 --> 00:05:10,279
Speaker 2: of handouts to billionaires. That pretty much pits the coalition

98
00:05:10,600 --> 00:05:13,799
Speaker 2: against the mining industry, which isn't something that happens too often.

99
00:05:14,160 --> 00:05:17,080
Speaker 2: The production tax credits for the critical mineral sector are

100
00:05:17,120 --> 00:05:20,960
Speaker 2: modeled on assistance available in Europe and the US in

101
00:05:21,040 --> 00:05:23,919
Speaker 2: the government and members of the critical minerals industry. Says

102
00:05:23,960 --> 00:05:26,279
Speaker 2: it's a way for rustrating to become a power in

103
00:05:26,320 --> 00:05:29,479
Speaker 2: the global energy transition. Now the miners most likely to

104
00:05:29,520 --> 00:05:34,679
Speaker 2: benefit our producers of lithium primaria, some rare earths, potentially nickel,

105
00:05:34,720 --> 00:05:37,359
Speaker 2: or that market ain't so good at the moment. The

106
00:05:37,440 --> 00:05:40,560
Speaker 2: six point seven billion dollar tax incentive for hydrogen was

107
00:05:40,600 --> 00:05:43,039
Speaker 2: also welcomed by the industry, though experts warned that it

108
00:05:43,120 --> 00:05:46,680
Speaker 2: needs to be very simple to apply. The incentives should

109
00:05:46,720 --> 00:05:50,279
Speaker 2: certainly boost interest in the nascent hydrogen sector. The wrap

110
00:05:50,320 --> 00:05:52,960
Speaker 2: of the budget, Michael is that some of these critical

111
00:05:53,000 --> 00:05:57,359
Speaker 2: minerals players are very happy with what's going on. It

112
00:05:57,480 --> 00:06:01,160
Speaker 2: is mildly inflationary in this first year, very inflationary in

113
00:06:01,400 --> 00:06:04,760
Speaker 2: following years, and we probably will put this fun to

114
00:06:04,800 --> 00:06:07,520
Speaker 2: bed and not talk much about the budget for another year.

115
00:06:08,440 --> 00:06:11,559
Speaker 1: Though if you haven't quite had your feel of budget talk,

116
00:06:11,600 --> 00:06:13,320
Speaker 1: you can always go back and have another. Listen to

117
00:06:13,400 --> 00:06:17,640
Speaker 1: Stephen Coculis's analysis yesterday morning on Fear and Greed, Oh

118
00:06:17,760 --> 00:06:18,160
Speaker 1: you can.

119
00:06:18,320 --> 00:06:21,200
Speaker 2: He He kind of put it as a meddling not

120
00:06:21,279 --> 00:06:24,279
Speaker 2: a meddling budget. That's unfair, a middle ranked budget is

121
00:06:24,279 --> 00:06:27,320
Speaker 2: how Steven put it, but it's definitely worth listing to

122
00:06:27,440 --> 00:06:28,880
Speaker 2: why he ranks it that way.

123
00:06:29,080 --> 00:06:31,920
Speaker 1: Yeah, indeed, all right. Turning to local markets, now, how

124
00:06:31,920 --> 00:06:33,000
Speaker 1: do they perform? Yesterday?

125
00:06:33,240 --> 00:06:35,840
Speaker 2: This and PISX two hundred closed up zero point four

126
00:06:35,839 --> 00:06:38,720
Speaker 2: percent to seven seven hundred and fifty four points, led

127
00:06:38,760 --> 00:06:42,520
Speaker 2: higher by the material sector and healthcare stocks, while industrials lagged.

128
00:06:42,839 --> 00:06:45,480
Speaker 2: BHP led the market higher, up two point two percent.

129
00:06:45,600 --> 00:06:47,840
Speaker 2: Tell you why in a moment. CSL was up one

130
00:06:47,839 --> 00:06:49,800
Speaker 2: point two percent both Rare Tinto and four to a

131
00:06:49,839 --> 00:06:52,880
Speaker 2: few metals, whereas around one percent. Telstrawers did pretty well,

132
00:06:52,960 --> 00:06:55,440
Speaker 2: up about half percent. The banks weren't so good, with

133
00:06:55,520 --> 00:06:58,799
Speaker 2: aans A, Westpac and National Australia Bank all ending lower,

134
00:06:59,120 --> 00:07:01,720
Speaker 2: so to Transerve and Quary Group, Woodside Energy and James

135
00:07:01,760 --> 00:07:05,200
Speaker 2: Hardy Industries. In corporate news, commercial radio and regional television

136
00:07:05,200 --> 00:07:09,080
Speaker 2: company Southern Crosshols Stereo has rejected arn Media's bid for

137
00:07:09,160 --> 00:07:12,160
Speaker 2: the company. Now that's the revised bid. After the private

138
00:07:12,160 --> 00:07:16,360
Speaker 2: equity group Anchorage Capital pulled out and the Australian agricultural

139
00:07:16,400 --> 00:07:19,880
Speaker 2: company's share price dropped two percent after it announced a

140
00:07:19,920 --> 00:07:22,040
Speaker 2: full year loss on the back of a challenging twelve

141
00:07:22,040 --> 00:07:24,680
Speaker 2: months in lower cattle prices. J On.

142
00:07:24,680 --> 00:07:27,840
Speaker 1: One more quick question about markets the day after the budget.

143
00:07:27,880 --> 00:07:32,240
Speaker 1: There's so much discussion about how the Tuesday Night might

144
00:07:32,760 --> 00:07:36,240
Speaker 1: affect different sectors. Are there kind of individual winners and

145
00:07:36,280 --> 00:07:37,640
Speaker 1: losers among the stocks?

146
00:07:38,200 --> 00:07:41,040
Speaker 2: Yes, the We're not an investing podcast, so go and

147
00:07:41,080 --> 00:07:44,920
Speaker 2: find your financial planner to answer this question. But based

148
00:07:44,920 --> 00:07:47,960
Speaker 2: on what investment analysts is saying, one sector considered a

149
00:07:47,960 --> 00:07:50,800
Speaker 2: winner from all the cost of living and initiatives is

150
00:07:50,840 --> 00:07:54,360
Speaker 2: the consumer discretionary stocks, especially those who catered to lower

151
00:07:54,400 --> 00:07:58,720
Speaker 2: socioeconomic groups, Domino's super retail group, Colin's Foods, which owns KFC.

152
00:07:59,320 --> 00:08:01,840
Speaker 2: There's more money for housing investment that should help companies

153
00:08:01,880 --> 00:08:05,239
Speaker 2: at make homes or manufacture products for homes, think brick works, rees,

154
00:08:05,560 --> 00:08:08,080
Speaker 2: those sorts of companies. Then there are others that could

155
00:08:08,080 --> 00:08:10,720
Speaker 2: be hurt. The doubling of the visa application fee for

156
00:08:10,760 --> 00:08:16,120
Speaker 2: international students could hurt IDP education, according to UBS. So

157
00:08:16,160 --> 00:08:18,440
Speaker 2: certainly there are winners and losers. But you go and

158
00:08:18,480 --> 00:08:21,720
Speaker 2: see your financial advisor about that one. Imagine IDP education.

159
00:08:21,880 --> 00:08:24,680
Speaker 2: Then it so really interesting that I mean, so you

160
00:08:24,720 --> 00:08:27,560
Speaker 2: would think post budget it may not do so well.

161
00:08:28,280 --> 00:08:31,080
Speaker 2: Its share price was up more than seven percent yesterday,

162
00:08:31,560 --> 00:08:34,800
Speaker 2: which was the best of the top two hundred. It

163
00:08:35,200 --> 00:08:39,200
Speaker 2: along with Marine and Offshore service company MMA, Offshore, Fleet

164
00:08:39,200 --> 00:08:42,720
Speaker 2: Management and Leasing Group SG Fleet, Gold and Copper Explorer,

165
00:08:42,840 --> 00:08:45,720
Speaker 2: WA one Resources, and Buy and Now Pay Later Group

166
00:08:45,880 --> 00:08:49,320
Speaker 2: zip we're told they're going to be included in the

167
00:08:49,440 --> 00:08:54,160
Speaker 2: MSCI MISKI Global Small Cap Index. It takes a bit

168
00:08:54,200 --> 00:08:57,160
Speaker 2: of explaining, Michael, stay with me here.

169
00:08:57,360 --> 00:09:00,600
Speaker 1: Always rather ominous when you say that something's going to

170
00:09:00,600 --> 00:09:04,000
Speaker 1: take a bit of explaining. Go on, Let's I embrace

171
00:09:04,080 --> 00:09:05,000
Speaker 1: for it, Joan go for.

172
00:09:05,800 --> 00:09:09,080
Speaker 2: The MISKY Global Small Cap Index includes about forty one

173
00:09:09,160 --> 00:09:13,719
Speaker 2: hundred companies from twenty three developed markets. It's the benchmark

174
00:09:14,200 --> 00:09:18,079
Speaker 2: for small company indices. So if you buy an ETF

175
00:09:18,080 --> 00:09:22,640
Speaker 2: for Global small Cap ETF, it's likely to be somehow

176
00:09:22,720 --> 00:09:27,120
Speaker 2: linked to the MISKY Global Small Cap Index. They might

177
00:09:27,200 --> 00:09:29,960
Speaker 2: be competing against it. They may actually just buy stocks

178
00:09:30,000 --> 00:09:33,920
Speaker 2: that are in that MSCI Global Small Cap Index. Suddenly

179
00:09:33,960 --> 00:09:38,080
Speaker 2: IDP Education and MMA Offshore and SG Fleet, WA one

180
00:09:38,160 --> 00:09:42,800
Speaker 2: Resources and Zipco all become part of this MISKY index.

181
00:09:42,840 --> 00:09:45,839
Speaker 2: That people are going to demand their shares, hence their

182
00:09:45,880 --> 00:09:49,000
Speaker 2: share price should actually rise. The flip side is some

183
00:09:49,320 --> 00:09:52,920
Speaker 2: other ASX listed companies have been thrown out, including Promedicus,

184
00:09:52,960 --> 00:09:57,240
Speaker 2: Australian Clinical Labs and Tiro Payments. The upshit of all that,

185
00:09:57,800 --> 00:10:00,439
Speaker 2: right is, it's good news for some of those companies

186
00:10:00,480 --> 00:10:02,920
Speaker 2: like IDP Education because they're part of the MISKY Global

187
00:10:02,960 --> 00:10:03,840
Speaker 2: Small Cap Index.

188
00:10:04,120 --> 00:10:06,320
Speaker 1: All right, Sean, what's happening in international markets?

189
00:10:06,760 --> 00:10:09,319
Speaker 2: Oil prices have risen over the past twenty four hours

190
00:10:09,360 --> 00:10:12,400
Speaker 2: after report showed at lower stockpiles in the US, Brent

191
00:10:12,480 --> 00:10:15,600
Speaker 2: crude was heading back towards eighty three US dollars a barrel.

192
00:10:15,600 --> 00:10:18,800
Speaker 2: Overnight goals up at touch, though markets were fairly quite

193
00:10:18,840 --> 00:10:21,640
Speaker 2: ahead of US consumer inflation figures out of the past

194
00:10:21,679 --> 00:10:24,160
Speaker 2: forty eight hours. US Federal Reserve Chair Jerome and Powell

195
00:10:24,160 --> 00:10:26,880
Speaker 2: has suggested that people need to be patient and let

196
00:10:27,000 --> 00:10:30,959
Speaker 2: interstrates do their work. The forecast budget serpents from Tuesday

197
00:10:31,040 --> 00:10:33,880
Speaker 2: night here locally has also helped the Ausie dollar. It's

198
00:10:33,880 --> 00:10:36,160
Speaker 2: trading around sixty six point five US sets.

199
00:10:36,559 --> 00:10:38,280
Speaker 1: There is a lot going on. We'll be back in

200
00:10:38,320 --> 00:10:48,840
Speaker 1: a moment with the rest of the day's business news. Sean.

201
00:10:49,080 --> 00:10:52,920
Speaker 1: Wager's growth, a critical part of the inflation puzzle, slowed

202
00:10:53,120 --> 00:10:55,600
Speaker 1: during the March quarter to a pace last scene more

203
00:10:55,600 --> 00:10:56,440
Speaker 1: than a year ago.

204
00:10:57,080 --> 00:10:59,280
Speaker 2: The zero point eight percent increase in salaries in the

205
00:10:59,280 --> 00:11:01,280
Speaker 2: three months to the end of March was the slowest

206
00:11:01,280 --> 00:11:04,400
Speaker 2: pace of growth since December twenty twenty two and below

207
00:11:04,559 --> 00:11:08,800
Speaker 2: market expectations. The previous three quarters wages growth was at

208
00:11:08,880 --> 00:11:11,000
Speaker 2: least one percent, so this is quite a drop back.

209
00:11:11,120 --> 00:11:13,760
Speaker 2: For the year, wages grew by four point one percent. Now,

210
00:11:13,800 --> 00:11:16,480
Speaker 2: if you delve into the Bureau of Statistics numbers a

211
00:11:16,520 --> 00:11:19,679
Speaker 2: little deeper, the March quarter was the first time at

212
00:11:19,760 --> 00:11:24,240
Speaker 2: private sector wages growth has slowed since twenty twenty It

213
00:11:24,280 --> 00:11:26,199
Speaker 2: came in at zero point eight percent. The public sector

214
00:11:26,200 --> 00:11:28,559
Speaker 2: wages growth was zero point five percent. Why do we

215
00:11:28,600 --> 00:11:30,880
Speaker 2: care about all these numbers, Michael, I can see those

216
00:11:30,920 --> 00:11:33,040
Speaker 2: eyes of yours. It's like, yes, yep.

217
00:11:32,920 --> 00:11:34,840
Speaker 1: But why why? Why?

218
00:11:34,960 --> 00:11:35,360
Speaker 2: You know me?

219
00:11:35,440 --> 00:11:36,600
Speaker 1: Well, why, Sean? Why?

220
00:11:37,400 --> 00:11:39,720
Speaker 2: Most of us want to get paid more. That's one reason.

221
00:11:39,840 --> 00:11:43,679
Speaker 2: But perhaps more importantly, wages are a large share of

222
00:11:43,720 --> 00:11:47,000
Speaker 2: a company's costs. If they rise, then the company is

223
00:11:47,040 --> 00:11:49,079
Speaker 2: more like to put up prices, which of course flows

224
00:11:49,080 --> 00:11:52,960
Speaker 2: through to our ryal inflation. So slowing wages growth is

225
00:11:53,000 --> 00:11:55,080
Speaker 2: actually good news, at least for inflation.

226
00:11:55,880 --> 00:11:59,880
Speaker 1: Sean. BHP chief executive Mike Henry has jumped on and

227
00:12:00,160 --> 00:12:04,720
Speaker 1: Americans plans to demerge its platinum and diamond businesses, saying

228
00:12:04,800 --> 00:12:07,600
Speaker 1: it's a variant of the sixty four billion dollar takeover

229
00:12:07,640 --> 00:12:09,120
Speaker 1: proposal from the Big Australian.

230
00:12:09,679 --> 00:12:11,880
Speaker 2: Yes, this is starting to heat up. Anglo unveiled a

231
00:12:11,920 --> 00:12:14,920
Speaker 2: new strategy to investors thirty six hours ago which involved

232
00:12:14,960 --> 00:12:18,680
Speaker 2: selling or shutting all the company's assets except those producing copper,

233
00:12:18,760 --> 00:12:22,120
Speaker 2: iron ore and crop nutrients. It will sell its interests

234
00:12:22,160 --> 00:12:25,760
Speaker 2: in platinum and diamonds, and boss Duncan Wanblad said the

235
00:12:25,800 --> 00:12:28,000
Speaker 2: sale of the assets would be more difficult if linked

236
00:12:28,040 --> 00:12:31,040
Speaker 2: to a takeover. The bad news for Ango shareholders, but

237
00:12:31,120 --> 00:12:33,960
Speaker 2: maybe not for BHP, is that the announcement didn't go

238
00:12:34,040 --> 00:12:37,199
Speaker 2: down well, and Anglo's share price fell three percent to

239
00:12:37,320 --> 00:12:41,000
Speaker 2: twenty six pounds and twelve pence. The implied price of

240
00:12:41,040 --> 00:12:45,040
Speaker 2: behp's latest offfer is twenty seven pounds and fifty threepence.

241
00:12:45,520 --> 00:12:47,680
Speaker 2: For his part, mister Henry said the plan of Anglo

242
00:12:47,720 --> 00:12:51,920
Speaker 2: management validated beach Peace proposal, which is very similar, except

243
00:12:51,960 --> 00:12:54,960
Speaker 2: of course, if BEACHP takes control of the assets. Mister

244
00:12:55,000 --> 00:12:58,000
Speaker 2: Henry also said he would have preferred private discussions with

245
00:12:58,040 --> 00:13:01,479
Speaker 2: the Anglo board, but alas it leaked to the media,

246
00:13:01,760 --> 00:13:04,920
Speaker 2: he said a formal bid won't be delivered by the

247
00:13:04,960 --> 00:13:09,640
Speaker 2: May twenty two deadline unless Anglo comes to the negotiating table.

248
00:13:09,760 --> 00:13:10,760
Speaker 2: A bit of a threat there.

249
00:13:11,480 --> 00:13:13,120
Speaker 1: He did a really good explainer of all of this

250
00:13:13,240 --> 00:13:17,960
Speaker 1: in yesterday's newsletter, I thought, Sean, which was very well received,

251
00:13:18,000 --> 00:13:20,400
Speaker 1: I've got to say, and we've had some terrific feedback

252
00:13:20,480 --> 00:13:22,480
Speaker 1: about the Fear and Green newsletter. It comes out every

253
00:13:22,760 --> 00:13:28,360
Speaker 1: Wednesday morning, mid morning and we get your unadulterated thoughts

254
00:13:28,840 --> 00:13:30,240
Speaker 1: on a whole bunch of topics.

255
00:13:30,240 --> 00:13:32,440
Speaker 2: I've prefer unleashed, but unadulterated.

256
00:13:32,440 --> 00:13:35,760
Speaker 1: It's good, yes about all of the big kind of

257
00:13:35,760 --> 00:13:38,360
Speaker 1: business news stories of the week. Headle onto Fearangreed dot

258
00:13:38,400 --> 00:13:41,559
Speaker 1: com dot au to pop your email address in. It's

259
00:13:41,559 --> 00:13:43,720
Speaker 1: a bit late obviously for this week, but next week

260
00:13:43,760 --> 00:13:47,360
Speaker 1: you'll be super early to get next Wednesday's newsletter. And

261
00:13:47,440 --> 00:13:51,559
Speaker 1: who doesn't like being super early now. CSR's aluminium operations

262
00:13:51,559 --> 00:13:54,240
Speaker 1: have fallen to an annual loss of twenty nine million

263
00:13:54,320 --> 00:13:58,120
Speaker 1: dollars because of high energy costs, posing a bit of

264
00:13:58,120 --> 00:14:00,880
Speaker 1: a challenge for French giants Saint Gerbai, which is poised

265
00:14:00,920 --> 00:14:02,319
Speaker 1: to become CSR's new owner.

266
00:14:02,800 --> 00:14:05,480
Speaker 2: Saint Gervan is undertaking a four point three billion dollar

267
00:14:05,520 --> 00:14:09,240
Speaker 2: buyout of CSR. CSR has a twenty five percent stake

268
00:14:09,720 --> 00:14:13,040
Speaker 2: in the Tomago aluminium smelter in New South Wales, which

269
00:14:13,040 --> 00:14:14,760
Speaker 2: has been a drag on the overall results for the

270
00:14:14,760 --> 00:14:18,000
Speaker 2: building products company for decades. According to the fin review,

271
00:14:18,920 --> 00:14:22,800
Speaker 2: last year, electricity costs didn't help much either. CSR, which

272
00:14:22,800 --> 00:14:27,040
Speaker 2: makes chip rock, plasterboard, PGH bricks and papers, Ammonia roof tiles,

273
00:14:27,280 --> 00:14:30,640
Speaker 2: Hebile lightweight building blocks and Bradford Insulation, reported a six

274
00:14:30,680 --> 00:14:33,120
Speaker 2: percent rise in net profit after tax for the twelve

275
00:14:33,160 --> 00:14:36,880
Speaker 2: months ending March thirty one. Shareholders will vote on the

276
00:14:36,960 --> 00:14:41,560
Speaker 2: Saint Jerbain nine dollars share offer next month. CSR's shares

277
00:14:41,680 --> 00:14:44,640
Speaker 2: yesterday were flat. They're training just under that offer price.

278
00:14:45,320 --> 00:14:49,960
Speaker 1: From today Sean. All newly minted coins will include King

279
00:14:50,120 --> 00:14:53,160
Speaker 1: Charles the Third's effigy, having been already added to the

280
00:14:53,160 --> 00:14:56,480
Speaker 1: five cent, one dollar and two dollar coins last year.

281
00:14:56,480 --> 00:14:57,400
Speaker 1: Now it's going to be all of them.

282
00:14:57,960 --> 00:15:00,160
Speaker 2: Yes, it's the first time in fifty nine years is

283
00:15:00,200 --> 00:15:02,560
Speaker 2: that the Royal Australian Mint has changed the monarch on

284
00:15:02,640 --> 00:15:06,200
Speaker 2: its full suite of coins. The Mint said it has

285
00:15:06,240 --> 00:15:10,120
Speaker 2: taken two months to transition fully to King Charles the Third.

286
00:15:10,520 --> 00:15:13,320
Speaker 2: The first person to get a full proof set will

287
00:15:13,360 --> 00:15:15,840
Speaker 2: in fact be the King himself. Well, it's going to

288
00:15:15,840 --> 00:15:17,360
Speaker 2: be sent to him first. I don't know whether he'll

289
00:15:17,360 --> 00:15:19,920
Speaker 2: be the first one to actually open it. A full

290
00:15:20,160 --> 00:15:25,160
Speaker 2: proof set apparently contains the highest quality coins possible, made

291
00:15:25,200 --> 00:15:28,200
Speaker 2: from a high grade metal in a sterile environment, and

292
00:15:28,560 --> 00:15:31,800
Speaker 2: is pressed four times under one hundred and ten tons

293
00:15:31,800 --> 00:15:34,640
Speaker 2: of pressure. A full set costs about one hundred and

294
00:15:34,680 --> 00:15:37,440
Speaker 2: fifty dollars. That's one for the collectors. Is a more

295
00:15:37,480 --> 00:15:40,960
Speaker 2: standard version, which sets you back about forty dollars. Michael,

296
00:15:40,960 --> 00:15:42,520
Speaker 2: this story sent me on a bit of a goose

297
00:15:42,600 --> 00:15:46,440
Speaker 2: chase about coins because I never use coins or you

298
00:15:46,560 --> 00:15:48,560
Speaker 2: use them as tips, but mostly I sort of I

299
00:15:48,560 --> 00:15:49,480
Speaker 2: don't know what I do with them.

300
00:15:49,960 --> 00:15:50,280
Speaker 1: Do you know?

301
00:15:50,320 --> 00:15:53,560
Speaker 2: The Mint can produce up to two million coins each

302
00:15:53,680 --> 00:15:59,600
Speaker 2: day and each coin stays in circulation for about thirty years. Amazing.

303
00:15:59,800 --> 00:16:01,120
Speaker 1: That is actually amazing.

304
00:16:01,520 --> 00:16:04,040
Speaker 2: The nineteen thirty Australian penny is one of the rarest

305
00:16:04,320 --> 00:16:08,120
Speaker 2: and most valuable coins there are also five dollar coins,

306
00:16:08,120 --> 00:16:10,480
Speaker 2: which I didn't realize they were produced in twenty thirteen.

307
00:16:10,960 --> 00:16:15,200
Speaker 2: They're either dome shaped or triangular, depicting Parliament House and

308
00:16:15,240 --> 00:16:18,240
Speaker 2: the night sky. I think they were actually twenty five

309
00:16:18,360 --> 00:16:21,480
Speaker 2: years after the new Parliament House was opened, so they're

310
00:16:21,520 --> 00:16:24,120
Speaker 2: actually five dollar coins. They're collector's items. You're not going

311
00:16:24,160 --> 00:16:27,480
Speaker 2: to see them around the place. Fascinating the world of coins.

312
00:16:28,000 --> 00:16:31,800
Speaker 1: In international news, shares in video game retailer game Stop

313
00:16:31,880 --> 00:16:36,240
Speaker 1: and cinema group AMC Entertainment serves for a second consecutive session,

314
00:16:36,720 --> 00:16:39,480
Speaker 1: extending a meme stock rally that was sparked this week

315
00:16:39,520 --> 00:16:43,520
Speaker 1: by the re emergence of popular day trader Roaring Kitty.

316
00:16:44,440 --> 00:16:47,640
Speaker 2: Roaring Kitty, game Stop and AMC rose sixty percent and

317
00:16:47,680 --> 00:16:51,360
Speaker 2: thirty two percent yesterday morning, building on these seventy three

318
00:16:51,400 --> 00:16:54,680
Speaker 2: and seventy seven percent gains the previous day. Training in

319
00:16:54,760 --> 00:16:58,000
Speaker 2: game Stop was briefly halted for volatility three times in

320
00:16:58,040 --> 00:17:01,320
Speaker 2: the first twenty minutes of trading. Stocks had pulled back

321
00:17:01,360 --> 00:17:04,080
Speaker 2: from highs hit earlier in the day, losing some momentum

322
00:17:04,119 --> 00:17:07,720
Speaker 2: in afternoon trading. The moves come after trader Keith gill

323
00:17:08,040 --> 00:17:11,680
Speaker 2: I e Roaring Kitty appear to resurface on Sunday after

324
00:17:11,760 --> 00:17:15,040
Speaker 2: a three year hiatus from social media site x gil

325
00:17:15,240 --> 00:17:17,040
Speaker 2: was at the heart of a rally driven by an

326
00:17:17,160 --> 00:17:20,720
Speaker 2: army of retail traders during the pandemic. Retail traders piled

327
00:17:20,720 --> 00:17:23,240
Speaker 2: back into many of the meme stocks, including game Stock

328
00:17:23,400 --> 00:17:26,480
Speaker 2: and AMC after that post over the weekend.

329
00:17:26,960 --> 00:17:31,840
Speaker 1: What would your name be? If he's roaring kidding, like squeaking,

330
00:17:32,080 --> 00:17:34,000
Speaker 1: squeaking catfish or something.

331
00:17:34,320 --> 00:17:36,000
Speaker 2: Assive pound or something like that.

332
00:17:36,040 --> 00:17:39,000
Speaker 1: I don't know, bleating lamb, I don't know, something like that.

333
00:17:39,520 --> 00:17:40,919
Speaker 1: What would yours be?

334
00:17:41,160 --> 00:17:42,040
Speaker 2: Like?

335
00:17:42,040 --> 00:17:48,960
Speaker 1: Like awkward ardvark, tough nugget or something like that. Tough

336
00:17:49,000 --> 00:17:55,719
Speaker 1: nugget to me the nug Beijing is considering buying millions

337
00:17:55,720 --> 00:17:58,840
Speaker 1: of unsold homes from across the country in an effort

338
00:17:58,960 --> 00:18:02,040
Speaker 1: to kickstart the all important property market in China.

339
00:18:02,520 --> 00:18:04,879
Speaker 2: How's this for an idea? It would certainly be ambitious,

340
00:18:05,000 --> 00:18:07,120
Speaker 2: and the idea is to clear some of the excess

341
00:18:07,119 --> 00:18:11,440
Speaker 2: housing stock. Smaller programs across the country have been tried previously,

342
00:18:11,480 --> 00:18:13,680
Speaker 2: in them more or less work, but this one's much

343
00:18:13,680 --> 00:18:17,400
Speaker 2: more ambitious. According to Bloomberg, local state owned enterprises would

344
00:18:17,400 --> 00:18:20,960
Speaker 2: be asked to help purchase unsold homes from distressed developers

345
00:18:21,000 --> 00:18:24,360
Speaker 2: at steep discounts using loans provided by state banks. Many

346
00:18:24,359 --> 00:18:27,000
Speaker 2: of the properties would then be converted into affordable housing.

347
00:18:27,280 --> 00:18:30,360
Speaker 2: Officials are still debating details of the plan its feasibility.

348
00:18:30,680 --> 00:18:33,160
Speaker 2: If it does take off, it could be months before

349
00:18:33,160 --> 00:18:36,199
Speaker 2: it's actually finalized, and of course it needs China's leaders

350
00:18:36,320 --> 00:18:37,720
Speaker 2: to decide to go ahead.

351
00:18:38,440 --> 00:18:40,760
Speaker 1: All right, Up next is a Fear and Greed Daily interview.

352
00:18:40,920 --> 00:18:43,320
Speaker 1: You are talking today with Chris Breichy, founder and CEO

353
00:18:43,400 --> 00:18:45,439
Speaker 1: of online investment advisors stock Spot.

354
00:18:45,880 --> 00:18:48,480
Speaker 2: All about those memes stocks, all about AMC, all about

355
00:18:48,520 --> 00:18:51,720
Speaker 2: game stop, what they're about, how they work, why they're

356
00:18:51,760 --> 00:18:53,560
Speaker 2: kind of ridiculous. Well he doesn't say that, so I

357
00:18:53,560 --> 00:18:56,640
Speaker 2: shouldn't put words into Chris's mouth. But if you're interested

358
00:18:56,640 --> 00:18:59,320
Speaker 2: in meme stocks, anyone to know all about it? Listen

359
00:18:59,480 --> 00:18:59,960
Speaker 2: to create.

360
00:19:00,520 --> 00:19:02,960
Speaker 1: Yeah, it is a great place to start. It's up

361
00:19:03,000 --> 00:19:04,879
Speaker 1: next to the Fear and Greed playlist on your podcast

362
00:19:04,920 --> 00:19:07,639
Speaker 1: platform or at Fear and Greed dot com dot au.

363
00:19:07,760 --> 00:19:13,040
Speaker 1: And yesterday was Wednesday, and I missed this because we

364
00:19:13,040 --> 00:19:15,240
Speaker 1: were so excited about the budget and all that, But

365
00:19:15,320 --> 00:19:17,159
Speaker 1: I forgot to mention, how do they afford that. It

366
00:19:17,280 --> 00:19:19,200
Speaker 1: was a new episode came out yesterday.

367
00:19:19,240 --> 00:19:19,840
Speaker 2: What's it about.

368
00:19:20,080 --> 00:19:23,080
Speaker 1: Well, it's all about people who are asset rich but

369
00:19:23,280 --> 00:19:26,439
Speaker 1: cash poor. So I think perhaps a lot of kind

370
00:19:26,480 --> 00:19:29,400
Speaker 1: of retirees, pensioners, things that might own their own home

371
00:19:29,440 --> 00:19:31,800
Speaker 1: and some of those options that are out there for

372
00:19:32,000 --> 00:19:37,120
Speaker 1: unlocking value within your home, reverse mortgages and things like that,

373
00:19:37,160 --> 00:19:39,399
Speaker 1: and so we talk about the pros and cons, the

374
00:19:39,520 --> 00:19:42,600
Speaker 1: risks that are involved there, and also some other ways

375
00:19:42,640 --> 00:19:44,960
Speaker 1: to do that to actually access some of that capitals.

376
00:19:45,160 --> 00:19:49,040
Speaker 1: It's a really interesting topic. It's relevant to quite a

377
00:19:49,040 --> 00:19:53,919
Speaker 1: particular part of the community. But if it's not for you,

378
00:19:54,000 --> 00:19:56,040
Speaker 1: it might be for your parents or someone that you know.

379
00:19:56,119 --> 00:19:58,200
Speaker 1: So it's well worth a listen. Check that one out.

380
00:19:58,480 --> 00:20:00,119
Speaker 1: You can find how do they afford that? Wherever you

381
00:20:00,119 --> 00:20:02,000
Speaker 1: listen to podcasts. I'll put a link in today's show

382
00:20:02,000 --> 00:20:05,280
Speaker 1: notes as well. Thank you very much, Sean, Thank you Michael.

383
00:20:05,720 --> 00:20:08,480
Speaker 1: It is Thursday, the sixteenth of May twenty twenty four.

384
00:20:08,760 --> 00:20:10,879
Speaker 1: Make sure you're following the podcast and please join us

385
00:20:10,880 --> 00:20:14,840
Speaker 1: online on LinkedIn, Instagram, x TikTok and Facebook. Michael Thompson

386
00:20:14,880 --> 00:20:19,200
Speaker 1: and that was Fear and Greed. Have a great day.