1 00:00:03,930 --> 00:00:06,900 Sean Aylmer: Welcome to the Fear & Greed afternoon report for Thursday, the 2 00:00:06,900 --> 00:00:10,559 Sean Aylmer: 1st of June, 2023. I'm Sean Aylmer. Every afternoon we've 3 00:00:10,559 --> 00:00:12,630 Sean Aylmer: got the five stories that happen today that you need 4 00:00:12,630 --> 00:00:16,649 Sean Aylmer: to know about. Story number one, the S&P/ASX 200 closed up, 0. 5 00:00:16,980 --> 00:00:21,660 Sean Aylmer: 3% to 7, 111 points today. Healthcare and tech stocks 6 00:00:21,660 --> 00:00:25,680 Sean Aylmer: did best, while consumer staples and telco companies also outperformed. 7 00:00:26,160 --> 00:00:28,830 Sean Aylmer: All those sectors are defensive. They tend to do better 8 00:00:28,830 --> 00:00:31,349 Sean Aylmer: when times are tough, so that pretty much illustrates the 9 00:00:31,349 --> 00:00:33,629 Sean Aylmer: mood in the market at the moment. Among the large 10 00:00:33,630 --> 00:00:37,409 Sean Aylmer: caps, CSL, Fortescue Metals and Woolworths all jumped by around 1.2%. Transurban was off 1. 11 00:00:40,680 --> 00:00:45,388 Sean Aylmer: 3%, while Woodside Energy, ANZ and Westpac all underperformed. Paladin 12 00:00:45,389 --> 00:00:48,570 Sean Aylmer: Energy share price jumped 11% after it said it wasn't 13 00:00:48,570 --> 00:00:53,099 Sean Aylmer: aware of any imminent Namibian legislation that would affect its 14 00:00:53,100 --> 00:00:57,810 Sean Aylmer: 75% owned mine. Earlier this week, a Namibian government minister 15 00:00:57,810 --> 00:01:00,330 Sean Aylmer: said the country should get equity in all mines in 16 00:01:00,330 --> 00:01:04,170 Sean Aylmer: the country for free. That sent Paladin's share price down 17 00:01:04,170 --> 00:01:06,839 Sean Aylmer: 20%. Today though, it was the best of the top 18 00:01:06,840 --> 00:01:10,078 Sean Aylmer: 200. Some of the gold stocks also outperformed. Market leading 19 00:01:10,080 --> 00:01:13,650 Sean Aylmer: Newcrest Mining finished up 2. 7%, while Northern Star was 20 00:01:13,650 --> 00:01:16,980 Sean Aylmer: more than 3% higher. Story number two, fears of the 21 00:01:16,980 --> 00:01:21,240 Sean Aylmer: US defaulting on five June were alleviated this morning after 22 00:01:21,240 --> 00:01:23,789 Sean Aylmer: the House of Representatives passed a bill to raise the 23 00:01:23,789 --> 00:01:27,179 Sean Aylmer: US debt ceiling. It's a major victory for Republican Speaker 24 00:01:27,179 --> 00:01:29,699 Sean Aylmer: of the House, Kevin McCarthy, and it now goes to 25 00:01:29,699 --> 00:01:34,470 Sean Aylmer: the Senate. The house voted 314 to 117 in favor 26 00:01:34,470 --> 00:01:38,670 Sean Aylmer: of the bill. But demonstrating how convoluted US politics can 27 00:01:38,670 --> 00:01:41,639 Sean Aylmer: be, none of this voting long party lines as occurs 28 00:01:41,639 --> 00:01:47,279 Sean Aylmer: in Australia. The yes vote included 165 Democrats and 149 29 00:01:47,400 --> 00:01:51,090 Sean Aylmer: Republicans. While there were representatives from both sides who voted 30 00:01:51,150 --> 00:01:54,240 Sean Aylmer: against it. If it passes the Senate, then it needs 31 00:01:54,240 --> 00:01:58,049 Sean Aylmer: to be signed by President Joe Biden. Almost there. Story 32 00:01:58,050 --> 00:02:01,290 Sean Aylmer: number three, business investment, a key component of economic growth 33 00:02:01,530 --> 00:02:05,369 Sean Aylmer: rose 2.4% during the March quarter, with spending on equipment 34 00:02:05,609 --> 00:02:08,760 Sean Aylmer: and machinery soaring. If you think about the economy, you 35 00:02:08,760 --> 00:02:11,520 Sean Aylmer: have consumption, retail spending is a big part of that. 36 00:02:11,520 --> 00:02:15,000 Sean Aylmer: It's trending lower. You also have government spending, which is 37 00:02:15,059 --> 00:02:19,620 Sean Aylmer: mildly expansionary. And you have investment. Figures from the Bureau 38 00:02:19,620 --> 00:02:23,100 Sean Aylmer: of Statistics show that business investment is up 6. 3% 39 00:02:23,788 --> 00:02:26,190 Sean Aylmer: compared to a year ago, which is actually pretty good. 40 00:02:26,520 --> 00:02:29,760 Sean Aylmer: The bureau also asks businesses how much they're going to 41 00:02:29,760 --> 00:02:33,119 Sean Aylmer: invest. And that's the one economists keep a close watch 42 00:02:33,120 --> 00:02:36,749 Sean Aylmer: on. Today's data suggests investment will moderate in the second 43 00:02:36,750 --> 00:02:39,179 Sean Aylmer: half of this year. Putting all that together, what's it 44 00:02:39,179 --> 00:02:43,200 Sean Aylmer: mean? The economy is definitely slowing. Story number four, trade 45 00:02:43,200 --> 00:02:46,230 Sean Aylmer: minister, Don Farrell, says the government will reopen its complaint 46 00:02:46,230 --> 00:02:49,828 Sean Aylmer: to the World Trade Organization over China's sanctions on Bali 47 00:02:50,130 --> 00:02:53,820 Sean Aylmer: if the restrictions are not fully revoked. Farrell said the 48 00:02:53,820 --> 00:02:56,939 Sean Aylmer: Albanese government wants China to comply with the provisions in 49 00:02:56,940 --> 00:03:00,180 Sean Aylmer: the free trade agreement that both countries have signed. He 50 00:03:00,180 --> 00:03:02,339 Sean Aylmer: went on, and I quote, " If we find ourselves in 51 00:03:02,430 --> 00:03:05,669 Sean Aylmer: a situation where having shown an act of goodwill to 52 00:03:05,669 --> 00:03:09,209 Sean Aylmer: suspend our WTO application and we don't get the result 53 00:03:09,210 --> 00:03:11,789 Sean Aylmer: we want, we've made it clear to the Chinese government 54 00:03:11,790 --> 00:03:16,199 Sean Aylmer: that we will resume that application." Farrell described discussions with 55 00:03:16,199 --> 00:03:19,770 Sean Aylmer: his Chinese counterpart in Detroit last week as warm. And 56 00:03:19,770 --> 00:03:23,130 Sean Aylmer: he's hopeful China will make a positive decision after its 57 00:03:23,130 --> 00:03:26,280 Sean Aylmer: review into Australian- Bali imports. He also said that the 58 00:03:26,280 --> 00:03:29,580 Sean Aylmer: Albanese government is about more trade, not less trade. And 59 00:03:29,580 --> 00:03:33,179 Sean Aylmer: China is our biggest test to stability. And finally, story 60 00:03:33,179 --> 00:03:35,610 Sean Aylmer: number five, the federal government has announced today an eight- 61 00:03:35,670 --> 00:03:40,530 Sean Aylmer: week public consultation period to consider AI regulation. It's the 62 00:03:40,530 --> 00:03:44,070 Sean Aylmer: first step in overseeing the growing field of artificial intelligence 63 00:03:44,280 --> 00:03:48,330 Sean Aylmer: since the release of ChatGPT in November last year. It's 64 00:03:48,360 --> 00:03:50,700 Sean Aylmer: quite the task, given most of us have little clue 65 00:03:50,700 --> 00:03:53,639 Sean Aylmer: just how AI will impact our lives in the future. 66 00:03:53,969 --> 00:03:58,440 Sean Aylmer: Today, science Minister, Ed Husick, said Australians need modern laws 67 00:03:58,440 --> 00:04:01,500 Sean Aylmer: for modern technology. And he wants experts in the community 68 00:04:01,500 --> 00:04:04,559 Sean Aylmer: to come forward to contribute to what that means. He 69 00:04:04,559 --> 00:04:08,429 Sean Aylmer: put the potential economic contribution of AI at between one 70 00:04:08,429 --> 00:04:13,080 Sean Aylmer: and $ 4 trillion. And the community needs assurance around how 71 00:04:13,080 --> 00:04:16,410 Sean Aylmer: the technology is applied. That's it for the afternoon report for 72 00:04:16,410 --> 00:04:19,859 Sean Aylmer: Thursday, the 1st of June, 2023. Michael Thompson and I will 73 00:04:19,860 --> 00:04:22,380 Sean Aylmer: be back tomorrow morning with the Friday edition of Fear & 74 00:04:22,500 --> 00:04:24,809 Sean Aylmer: Greed. I'm Sean Aylmer. Enjoy your evening.