1 00:00:03,680 --> 00:00:06,320 Speaker 1: Welcome to the Fear and Greed Business News Afternoon Report 2 00:00:06,360 --> 00:00:09,160 Speaker 1: for Tuesday, the twenty sixth of November twenty twenty four. 3 00:00:09,200 --> 00:00:11,680 Speaker 1: I'm Sean A. Elmer. Every afternoon, We've got the five 4 00:00:11,720 --> 00:00:13,760 Speaker 1: stories that happened today that you need to know about. 5 00:00:13,760 --> 00:00:17,040 Speaker 1: Story number one. Global markets reacted quickly to a Donald 6 00:00:17,040 --> 00:00:20,280 Speaker 1: Trump post this morning saying he will place twenty five 7 00:00:20,320 --> 00:00:23,520 Speaker 1: percent tariffs on Mexico and Canada and up tariffs on 8 00:00:23,640 --> 00:00:26,880 Speaker 1: China by ten percent in his first twenty four hours 9 00:00:26,920 --> 00:00:29,400 Speaker 1: in office. He says it's in response to the number 10 00:00:29,400 --> 00:00:32,600 Speaker 1: of illegal immigrants crossing into the US and the surge 11 00:00:32,680 --> 00:00:37,400 Speaker 1: in the use of illegal drugs, particularly fentanyl. Investors reacted quickly. 12 00:00:37,680 --> 00:00:40,440 Speaker 1: The US dollar surged, pushing the Aussie dollar back to 13 00:00:40,560 --> 00:00:43,560 Speaker 1: the low sixty four cent level that's the weakest in 14 00:00:43,640 --> 00:00:45,559 Speaker 1: four years. It did bounce back later in the day, 15 00:00:45,640 --> 00:00:48,800 Speaker 1: back towards sixty five US Since copper and base metals 16 00:00:48,840 --> 00:00:51,159 Speaker 1: prices drop now, they tend to rise and fall in 17 00:00:51,200 --> 00:00:56,040 Speaker 1: line with expected future economic growth. Bond neils jumped. Slipping 18 00:00:56,080 --> 00:00:59,280 Speaker 1: on tariffs pushes up inflation that pushes up bon neils. 19 00:00:59,480 --> 00:01:02,120 Speaker 1: The Canadian dollar hit its lowest level since twenty twenty, 20 00:01:02,200 --> 00:01:06,119 Speaker 1: the Mexican piso tumbled even Bitcoin went backwards. It's now 21 00:01:06,160 --> 00:01:08,080 Speaker 1: down six percent in the past three sessions, so it's 22 00:01:08,080 --> 00:01:11,040 Speaker 1: still trading at more than ninety four thousand US dollars 23 00:01:11,080 --> 00:01:13,320 Speaker 1: a unit. Story number two. The news out of the 24 00:01:13,400 --> 00:01:15,760 Speaker 1: US hit the local share market, or the talk of 25 00:01:15,760 --> 00:01:18,880 Speaker 1: tariff's encouraged some investors to take profits from stocks that 26 00:01:18,880 --> 00:01:21,480 Speaker 1: have run hard. The banks were the victims of that 27 00:01:21,560 --> 00:01:24,199 Speaker 1: today the Comwealth Bank fell three and a half percent. 28 00:01:24,640 --> 00:01:27,160 Speaker 1: A and Z Westpac National Australia Bank were all down 29 00:01:27,200 --> 00:01:28,840 Speaker 1: around one and a half percent. By the closed. The 30 00:01:28,920 --> 00:01:32,160 Speaker 1: S and P ASX two hundred was down zero point 31 00:01:32,240 --> 00:01:35,160 Speaker 1: seven percent to eight thousand, three hundred and fifty nine points. 32 00:01:35,319 --> 00:01:38,360 Speaker 1: The energy stocks were lower. Woodside and Santos fell close 33 00:01:38,400 --> 00:01:40,320 Speaker 1: to four percent, though that was as much to do 34 00:01:40,360 --> 00:01:43,160 Speaker 1: with reports for potential sixty day ceasefire in the Middle East. 35 00:01:43,600 --> 00:01:46,840 Speaker 1: Other companies that are involved in the US manufacturing sector 36 00:01:46,920 --> 00:01:50,520 Speaker 1: and have operations in that country did well. Blue Scope Steel, 37 00:01:50,560 --> 00:01:53,440 Speaker 1: for example, jumped six percent. Building products Group James Hardy, 38 00:01:53,640 --> 00:01:55,760 Speaker 1: which has the major operation in the US, jumped more 39 00:01:55,800 --> 00:01:59,680 Speaker 1: than two percent. Ansel and MCRE both rose. Story number three. 40 00:02:00,000 --> 00:02:03,760 Speaker 1: WHET Access Economics has forecast a blowout in the budget 41 00:02:03,800 --> 00:02:06,160 Speaker 1: deficit this financial year on the back of a softer 42 00:02:06,280 --> 00:02:10,400 Speaker 1: economic outlook. Now Lloyd Access is probably the most reputable 43 00:02:10,400 --> 00:02:13,120 Speaker 1: budget forecast in the country. It says there'll be an 44 00:02:13,160 --> 00:02:16,000 Speaker 1: underlying cash balance in the twenty twenty four to twenty 45 00:02:16,000 --> 00:02:19,960 Speaker 1: five financial year of thirty three point five billion dollars. 46 00:02:20,040 --> 00:02:23,360 Speaker 1: That's five point two billion dollars worse than the previous 47 00:02:23,560 --> 00:02:26,200 Speaker 1: estimate from the government. Net debt will come in around 48 00:02:26,240 --> 00:02:29,000 Speaker 1: twenty percent of GDP, which is in line with the expectations. 49 00:02:29,080 --> 00:02:32,400 Speaker 1: The last two budgets were in surplus. That's because we 50 00:02:32,440 --> 00:02:36,120 Speaker 1: had inflation and commodity prices. We're running now. We don't 51 00:02:36,160 --> 00:02:40,000 Speaker 1: have those tailwinds and so as a result, things don't 52 00:02:40,000 --> 00:02:43,200 Speaker 1: look anywhere near as Rosie. The good news is that 53 00:02:43,240 --> 00:02:47,080 Speaker 1: the labor market remains strong. Story Number four US minor 54 00:02:47,120 --> 00:02:51,320 Speaker 1: Peabody Energy in Indonesia's at Boomer Buma will pay close 55 00:02:51,400 --> 00:02:54,440 Speaker 1: to five billion dollars for the Queensland coal mines of 56 00:02:54,520 --> 00:02:58,360 Speaker 1: Anglo American. Peabody will have control of four cocing coal mines, 57 00:02:58,400 --> 00:03:02,240 Speaker 1: while Boomer will get one. Cocin coal is used for 58 00:03:02,360 --> 00:03:04,880 Speaker 1: steel making. Thermal coals, the other type that's used for 59 00:03:04,960 --> 00:03:09,960 Speaker 1: power generation. Peabody hasn't a great track record in Australia. 60 00:03:10,000 --> 00:03:13,000 Speaker 1: Thirteen years ago it bought Queensland minor MacArthur Coal for 61 00:03:13,080 --> 00:03:16,360 Speaker 1: nearly five billion dollars. Ultimately it went into Chapter eleven 62 00:03:16,480 --> 00:03:19,480 Speaker 1: bankruptcy on the back of that. Anglo, which in May 63 00:03:19,560 --> 00:03:22,160 Speaker 1: knock back a seventy five billion dollar bid from BHP 64 00:03:22,639 --> 00:03:26,040 Speaker 1: has spent the past six months offloading coal assets, including 65 00:03:26,080 --> 00:03:30,720 Speaker 1: stakes in Lake Vermont and Gelenbar coal mines in Queensland. Coincidentally, 66 00:03:30,800 --> 00:03:34,160 Speaker 1: the six month time limit and polls under UK law 67 00:03:34,560 --> 00:03:37,640 Speaker 1: which has prevented BHP from making another bid for Anglo 68 00:03:37,920 --> 00:03:42,480 Speaker 1: expirees on Friday and story number five. Car dealers are 69 00:03:42,520 --> 00:03:46,360 Speaker 1: being forced to sell luxury electric vehicles at a loss 70 00:03:46,480 --> 00:03:49,440 Speaker 1: as demand at the top end succumbs to changing consumer 71 00:03:49,520 --> 00:03:53,960 Speaker 1: tastes and competition from Chinese evs. Dealerships reporting too many 72 00:03:54,040 --> 00:03:59,840 Speaker 1: seventy thousand dollars plus evs, including from manufacturer's Jaguar, saydies 73 00:04:00,120 --> 00:04:03,240 Speaker 1: Ens and BMW, according to report in the finn Review, 74 00:04:03,560 --> 00:04:05,760 Speaker 1: a report by investment bank mold that says the local 75 00:04:05,800 --> 00:04:09,120 Speaker 1: market is mismatched, with too much prestige infantry at a 76 00:04:09,160 --> 00:04:11,680 Speaker 1: time when the cost of living crunch is biting. Could 77 00:04:11,760 --> 00:04:14,640 Speaker 1: get worse next year as well. Under the government's new 78 00:04:14,760 --> 00:04:20,200 Speaker 1: Vehicle Efficiency Standards legislation, car manufacturers are incentivized to increase 79 00:04:20,240 --> 00:04:24,360 Speaker 1: their volumes of low emissions vehicles in this country. Now, 80 00:04:24,360 --> 00:04:28,000 Speaker 1: when the UK introduced legislation like that, not only did 81 00:04:28,080 --> 00:04:32,640 Speaker 1: new evs lose value, but used EV's lost value as well. 82 00:04:32,880 --> 00:04:35,920 Speaker 1: Another big factor in Australia is the success of Chinese 83 00:04:35,920 --> 00:04:40,080 Speaker 1: manufacturer BYD. Its growth is far stronger than Tesla in 84 00:04:40,120 --> 00:04:43,520 Speaker 1: this country, and the charging infrastructure in Australia still remains 85 00:04:43,600 --> 00:04:46,679 Speaker 1: too problematic for many buyers. That's it for the afternoon 86 00:04:46,720 --> 00:04:49,640 Speaker 1: report for Tuesday, the twenty sixth of November twenty twenty four. 87 00:04:49,720 --> 00:04:51,920 Speaker 1: Michael Thompson and I will be back tomorrow morning with 88 00:04:52,160 --> 00:04:54,600 Speaker 1: the Wednesday edition of Fear and Greed Business News. I'm 89 00:04:54,640 --> 00:04:56,320 Speaker 1: chan Elmer. Enjoy your evening.