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

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Speaker 1: for Thursday, the sixteenth of January twenty twenty five. I'm

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Speaker 1: Sean A. Elmer. Every afternoon, We've got the five stories

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Speaker 1: that happen today that you need to know about. Storing

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Speaker 1: Number one, the local share market ended up nearly one

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Speaker 1: and a half percent today. It rallied after US price

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Speaker 1: growth figures overnight. They came in lower than expected. More

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Speaker 1: of that in a moment that pretty much eased fears

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Speaker 1: about inflation in the world's biggest economy, sending Wall Street

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Speaker 1: higher and our local market followed. The big bank surged some,

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Speaker 1: jumping by up to three percent. In fact, Commwealth Bank

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Speaker 1: closed today up two point nine eight percent. Very good

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Speaker 1: day for the country's largest company. Rate sensitive tech stocks

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Speaker 1: and property companies also outperformed the underperformers with those that

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Speaker 1: are less reliant on the economic cycle, those that move

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Speaker 1: less when it comes to interest rates, things like healthcare stocks,

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Speaker 1: consumer staples, big the big supermarkets in that instance, and

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Speaker 1: you'd tell if we go to stocks specifically zip code.

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Speaker 1: The buy now, Pay Later group surged after its competitor

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Speaker 1: SESEL upgraded revenue guidance overnight. In the US. You're on

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Speaker 1: Pharmaceuticals rebounded after a tough session yesterday. Tabcorp Holdings jumped

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Speaker 1: after announcing its first chief wagering officer. By the close,

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Speaker 1: the smp IS ASX two hundred was up one point

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Speaker 1: four percent to eight three hundred and twenty seven points.

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Speaker 1: Story number two. I referred to it in the previous story.

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Speaker 1: The Aussie job market is on a tear. In December,

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Speaker 1: fifty six thousand, three hundred new jobs net were created

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Speaker 1: in the economy. Now there were a stack of part

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Speaker 1: time jobs and a loss of some full time jobs.

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Speaker 1: Still there's no denying the labor market is strong, with

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Speaker 1: the unemployment rate now at just four percent. What's that

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Speaker 1: mean for interest rates? Well, it will give Reserve Bank

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Speaker 1: reason not to do anything anytime soon. In fact, they

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Speaker 1: need to rush on interest rates when it comes to

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Speaker 1: the Reserve Bank. That's what market economists think. They probably

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Speaker 1: won't do anything for the next couple of months. Story

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Speaker 1: number three. US inflation figures were released overnight that were

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Speaker 1: weaker than expected, so now investors think there might be

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Speaker 1: more than one rate cut in the US this year.

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Speaker 1: Core CPI was up zero point two percent last month.

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Speaker 1: Multiplied that by twelve two point four percent for the year,

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Speaker 1: and previously the previous four months it was point three

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Speaker 1: percent or more. So that is a significant drop in

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Speaker 1: that core CPI rate. Oil prices are definitely on the rise.

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Speaker 1: That will put inflation pressures into the system and it

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Speaker 1: will also hit our petrol pumps. In two or three weeks,

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Speaker 1: US crewd in trees are falling and their are feares

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Speaker 1: are around supply, particularly around Russia and Iran. A barrel

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Speaker 1: of oil is now fetching about eighty two US dollars

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Speaker 1: Story number four. Real Tinto faces more challenges from the

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Speaker 1: West Australian iron ore mines, which provide the bulk of

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Speaker 1: group earnings, as it continues to ship higher volumes of

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Speaker 1: lower grade material to Chinese steelmakers. The company was forced

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Speaker 1: to draw down on minstocks towards the end of last year,

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Speaker 1: during what's typically the most productive quarter for iron ore

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Speaker 1: operations in the Pilbra. According to report in the Australian,

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Speaker 1: heavy rain flooded some mining pits, forcing rare to eat

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Speaker 1: into stop piles it prefers to build up with a

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Speaker 1: period from January to April considered a higher risk period

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Speaker 1: for destructions caused by cyclone activity. RIO warned iron ore

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Speaker 1: production costs for twenty twenty four would be at the

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Speaker 1: higher end of guidance based on lower output inflation outstripping

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Speaker 1: internal expectations. On the global economic outlook, RIO said it

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Speaker 1: in its quarterly production report that inflation is moderating growth stabilizing,

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Speaker 1: but risks posed by geopolitical tensions and persistent labor shortages

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Speaker 1: are back RIO, which bledes iron or demand as people

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Speaker 1: will remain strong. So the Chinese economy provided mixed signals

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Speaker 1: in the last three months of twenty twenty four. As

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Speaker 1: for the US economy, in particular the tech sector, well,

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Speaker 1: it had outperformed other developed economies and its outlook remained

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Speaker 1: stable in the countdown to President elect Donald Trump taking

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Speaker 1: the reins Story number five, many of the world's richest

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Speaker 1: economies will need to at least double productivity growth to

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Speaker 1: maintain historical improvements in living standards amid sharp falls in

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Speaker 1: their birth rates. That's according to a McKinsey report investigating

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Speaker 1: the economic impact with declines in birth rates. It found

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Speaker 1: that in the UK, Germany, Japan, and the US they'll

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Speaker 1: all need to see productivity rise at double the pace

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Speaker 1: it's been over the past decade to maintain the same

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Speaker 1: growth in living standards. A report in the FT says

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Speaker 1: that to match GDP capital growth between ninety seven and

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Speaker 1: twenty twenty three, productivity growth in France and Italy will

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Speaker 1: need to triple overcoming decades. In Spain needs to rise fourfold.

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Speaker 1: The report highlights the impacts of declining birth rates on

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Speaker 1: the world's most prosperous economies, leaving them vulnerable to a

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Speaker 1: shrinking proportion of the population of working age. Australia's productivity

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Speaker 1: pace would need to increase by about twenty five percent,

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Speaker 1: according to the report. That's out the new report for Thursday,

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Speaker 1: the sixteenth of January twenty twenty five. Make sure you

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Speaker 1: hit follow on the podcast. We will be back tomorrow

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Speaker 1: morning with the Friday edition of Fear and Greed Business News.

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Speaker 1: I'm sure Elma enjoy your reading.