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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 Alma. Every afternoon, we've got the five stories that

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Speaker 1: happened today that you need to know about. Storing Number 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 Transurb and QBE Macquarie

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Speaker 1: Group CSL. They all fell around one percent or more.

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Speaker 1: West Farmers was the only top twenty stock to end

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

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Speaker 1: day after the price of the precious metal dip below

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Speaker 1: twenty three hundred US dollars, an ounce that came after

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Speaker 1: strong jobs figures suggesting that there won't be a rate

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Speaker 1: cut of the US economy for a while. West African

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Speaker 1: Resources Romilius and Barbara, Bellevue, Gold and Northern Star all

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Speaker 1: dropped sharply. Story number two in corporate US today, AGL

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Speaker 1: Energy's share price was down nearly two percent after it

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Speaker 1: announced it will spend three hundred million dollars over the

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Speaker 1: next four years after signing a partnership with Ovo's Cluser

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Speaker 1: smart energy platform. It will also take a twenty percent

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Speaker 1: direct stake in CLUSA. Beach Energy expects a non cash

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Speaker 1: impairment charge of up to four hundred million dollars in

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Speaker 1: this year's full year results following issues at a Taranaki

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Speaker 1: and Bass basins. Both will be impaired due to disappointing

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Speaker 1: gas flow results, and the Foreign Investment Review Board has

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Speaker 1: approved the takeover of CSR by a French building materials giant,

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Speaker 1: Saint Gervain. The deal is subject to shareholder approval at

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Speaker 1: a scheme meeting on Wednesday that one will pass. I'm

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Speaker 1: sure Story number three. The iron ore minors BHP, Forteskew Metals,

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Speaker 1: and Rio Tinto all fell sharply today as the commodity

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Speaker 1: hit a two month low. As we know, Forteskew Metals

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Speaker 1: group in particular is driven by i all prices and

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Speaker 1: given the ore is the biggest export of BHP and

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Speaker 1: Rio Tinto. It has a fair influence on their share prices.

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Speaker 1: After peaking above one hundred and forty US dollars a

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Speaker 1: ton early this year, iron ore dropped to about one

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Speaker 1: hundred US dollars a ton, briefly fell below that level,

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Speaker 1: then it recovered to one hundred and twenty US dollars

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Speaker 1: a ton. It's now back to around one hundred and

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Speaker 1: five US dollars a ton. It generally rises and falls

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Speaker 1: on expectations about what's happening in China, whether Beijing is

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Speaker 1: going to stimulate the economy or save the property market.

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Speaker 1: For example. Iron or of course is used in steel making,

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Speaker 1: which the Chinese need. Chinese growth forecasts have been a

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Speaker 1: little more upbeat recently and that's aided the turnaround and

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Speaker 1: all prices, but sentiment has changed over the past fortnite

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Speaker 1: and then on Friday, China State Planner issued a special

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Speaker 1: Action Plan on conserving energy and reducing carbon emissions in

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Speaker 1: the steel sector. Not good use for the iron ore minus.

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Speaker 1: Hence their share prices were down today stroying number four

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Speaker 1: opposition later Peter Dunton, today's the coalition won't put forward

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Speaker 1: a new twenty thirty missions reduction target until after the

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Speaker 1: next election. He refused to say if the coalition would

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Speaker 1: produce a lower twenty thirty target than the government, even

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Speaker 1: though over the weekend he said he'd go to the

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Speaker 1: next election opposing Labour's goal of decreasing carbon missions by

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Speaker 1: forty three percent compared to the two thousand and five baseline.

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Speaker 1: Mister Dutton did say the Libs were committed to net

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Speaker 1: zero by twenty fifty. The fact that mister Dutton is

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Speaker 1: equivocating on targets pretty much guarantees energy policy will be

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Speaker 1: an election issue in the run up to the next

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Speaker 1: poll due in less than twelve months. And storying number five,

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

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

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

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

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Speaker 1: Australian 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 yen. Now the

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Speaker 1: size of the purchase's 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: AUSSI 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: That's it for the afternoon report for Tuesday, the eleventh

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Speaker 1: of June twenty twenty four. Michael Thompson and I will

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Speaker 1: be back tomorrow morning with the Wednesday edition Off Fear

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Speaker 1: and Greed Business News. I'm Suan Elma. Enjoy your evening