1
00:00:04,240 --> 00:00:07,440
Speaker 1: Welcome to the Fear and Greed Business News Afternoon Report

2
00:00:07,520 --> 00:00:10,000
Speaker 1: for Wednesday, the twenty eighth of August twenty twenty four.

3
00:00:10,320 --> 00:00:12,960
Speaker 1: Michael Thompson. Every afternoon, we've got the five stories that

4
00:00:13,000 --> 00:00:14,960
Speaker 1: happened today that you need to know about. So let's

5
00:00:15,000 --> 00:00:18,119
Speaker 1: get going. Story number one. The S and p ASX

6
00:00:18,200 --> 00:00:20,800
Speaker 1: two hundred closed flat over the day at eight thousand

7
00:00:20,840 --> 00:00:24,520
Speaker 1: and seventy one points, with a surprise late uplift, reversing

8
00:00:24,520 --> 00:00:27,680
Speaker 1: a day largely spent in the red. Consumer staples and

9
00:00:27,720 --> 00:00:30,840
Speaker 1: financials were among the best performers and helped drive the

10
00:00:30,920 --> 00:00:36,239
Speaker 1: afternoon resurgence. Resources, communication services, energy, metals and mining all

11
00:00:36,280 --> 00:00:39,200
Speaker 1: slumped throughout the day. Woodside Energy was down one point

12
00:00:39,200 --> 00:00:42,559
Speaker 1: two percent, with Santos dropping zero point seven percent. Four

13
00:00:42,600 --> 00:00:46,760
Speaker 1: Descu Medals fell one percent. Plenty of companies reporting results today,

14
00:00:46,760 --> 00:00:52,080
Speaker 1: Flight Center reported its highest record earnings results. Its shares

15
00:00:52,159 --> 00:00:55,320
Speaker 1: jumped three point seven percent. Woolworth's also had a lift

16
00:00:55,360 --> 00:00:58,200
Speaker 1: in sales. Its shares closed up three point three percent.

17
00:00:58,640 --> 00:01:00,560
Speaker 1: Moving on to story number two. But now, if you

18
00:01:00,640 --> 00:01:04,480
Speaker 1: think buying shares in the top ASX listed companies is expensive,

19
00:01:04,880 --> 00:01:08,200
Speaker 1: you would be correct. In fact, Australia's biggest listed companies

20
00:01:08,240 --> 00:01:11,680
Speaker 1: are the most expensive right now, more so than at

21
00:01:11,720 --> 00:01:14,320
Speaker 1: any time in history on the basis of share prices

22
00:01:14,440 --> 00:01:17,119
Speaker 1: versus earnings, according to a new report from JP Morgan.

23
00:01:17,480 --> 00:01:20,920
Speaker 1: The report found that weakening earnings with forty percent of

24
00:01:21,000 --> 00:01:24,240
Speaker 1: companies issuing downgrades this season, would mean that without a

25
00:01:24,240 --> 00:01:29,720
Speaker 1: pickup in commodity prices, Australia will be an earnings growth laggard.

26
00:01:30,160 --> 00:01:33,360
Speaker 1: That's a quote for a while yet. JP Morgan's equities

27
00:01:33,400 --> 00:01:36,559
Speaker 1: research boss Jason Stead told The Financial Review that while

28
00:01:36,560 --> 00:01:40,000
Speaker 1: Australian and US bosses are trading at elevated multiples, the

29
00:01:40,200 --> 00:01:42,920
Speaker 1: US has strong earnings growth to back it up. He

30
00:01:43,040 --> 00:01:46,360
Speaker 1: said this is a rare market setup where share prices

31
00:01:46,360 --> 00:01:49,640
Speaker 1: and earnings are going opposite to one another. Story Number

32
00:01:49,680 --> 00:01:52,680
Speaker 1: three Green's leader Adam Bant is trying to be the

33
00:01:52,800 --> 00:01:55,680
Speaker 1: Robin Hood of the business world. He used a National

34
00:01:55,720 --> 00:02:00,280
Speaker 1: Press Club address to relaunch his plans today to ug

35
00:02:00,320 --> 00:02:03,680
Speaker 1: corporations with big new taxes. He's called it the Big

36
00:02:03,720 --> 00:02:06,800
Speaker 1: Corporations Package, in a bid to tackle what he's describing

37
00:02:06,840 --> 00:02:10,440
Speaker 1: as excessive profits from large companies. It includes a proposed

38
00:02:10,520 --> 00:02:14,240
Speaker 1: forty percent tax on coal and mining businesses. Quite similar

39
00:02:14,280 --> 00:02:18,560
Speaker 1: to Kevin Rudd's resource superprofit tax, a petroleum resource rent

40
00:02:18,560 --> 00:02:20,959
Speaker 1: tax and a forty percent tax on so called excessive

41
00:02:20,960 --> 00:02:24,760
Speaker 1: profits for companies whose turnover is one hundred million dollars plus.

42
00:02:25,000 --> 00:02:27,800
Speaker 1: He's had his plan costed by the Parliamentary Budget Office

43
00:02:27,880 --> 00:02:31,520
Speaker 1: and it reckons all these components together will generate five

44
00:02:31,639 --> 00:02:35,480
Speaker 1: hundred and fourteen billion dollars extra for the federal purse

45
00:02:35,800 --> 00:02:38,480
Speaker 1: over ten years. There is some precedent for this, with

46
00:02:38,520 --> 00:02:42,520
Speaker 1: the Henry Tax Review recommending a forty percent resource superprofits tax,

47
00:02:42,840 --> 00:02:46,320
Speaker 1: but it will be fought tooth and nailed by Corporate Australia.

48
00:02:46,520 --> 00:02:50,560
Speaker 1: Story number four. Donald Trump faces a new federal indictment.

49
00:02:50,919 --> 00:02:53,679
Speaker 1: It is the same four charges brought against him last year,

50
00:02:53,720 --> 00:02:56,560
Speaker 1: but following a ruling that former presidents largely are immune

51
00:02:56,560 --> 00:02:59,720
Speaker 1: from criminal prosecution, this time the charges are focused on

52
00:02:59,800 --> 00:03:03,400
Speaker 1: him as a political candidate looking to be re elected.

53
00:03:03,880 --> 00:03:06,720
Speaker 1: The charges or accusations that he allegedly took part in

54
00:03:06,760 --> 00:03:09,799
Speaker 1: a conspiracy to block the certification of his election defeat

55
00:03:09,840 --> 00:03:12,760
Speaker 1: to Joe Biden, fake claims, a voter fraud or at

56
00:03:12,760 --> 00:03:16,000
Speaker 1: the heart of this case. Royce's reports that the updated

57
00:03:16,040 --> 00:03:19,640
Speaker 1: indictment is relying on key testimony and evidence from witnesses

58
00:03:19,720 --> 00:03:24,560
Speaker 1: outside of government, including x Arizona House speaker Rusty Bowers.

59
00:03:24,639 --> 00:03:27,800
Speaker 1: It no longer includes the earlier allegations that he tried

60
00:03:27,840 --> 00:03:31,520
Speaker 1: to pressure the US Justice Department to overturn his loss,

61
00:03:31,720 --> 00:03:35,160
Speaker 1: and finally story number five. Tabcorp has posted a one

62
00:03:35,160 --> 00:03:38,160
Speaker 1: point three to six billion dollar loss, including non cash

63
00:03:38,200 --> 00:03:40,680
Speaker 1: impairment charges of one point three eight billion dollars amid

64
00:03:40,840 --> 00:03:45,320
Speaker 1: quote challenging conditions in the gambling market. Australia's largest gambling

65
00:03:45,360 --> 00:03:48,000
Speaker 1: company had a three point nine percent decline in group

66
00:03:48,080 --> 00:03:51,960
Speaker 1: revenue over the twenty twenty four financial year. CEO Gillan McLaughlin,

67
00:03:52,080 --> 00:03:55,920
Speaker 1: the former AFL boss, has warned that the macroeconomic environment

68
00:03:55,960 --> 00:03:59,360
Speaker 1: will remain difficult for customers amid higher interest rates and

69
00:03:59,440 --> 00:04:01,920
Speaker 1: high in flav Add to this a crackdown at a

70
00:04:01,960 --> 00:04:06,000
Speaker 1: regulatory level such as gambling advertising restrictions, and the challenges

71
00:04:06,040 --> 00:04:08,720
Speaker 1: are not easing up in the near term. Shares were

72
00:04:08,720 --> 00:04:11,720
Speaker 1: down fifteen percent over the day. That's it for the

73
00:04:11,720 --> 00:04:14,560
Speaker 1: afternoon report for Wednesday, the twenty eighth of August twenty

74
00:04:14,600 --> 00:04:17,039
Speaker 1: twenty four. Don't forget to hit follow on the podcast

75
00:04:17,080 --> 00:04:20,000
Speaker 1: and find fear and greed, on LinkedIn, Instagram, x TikTok,

76
00:04:20,000 --> 00:04:22,400
Speaker 1: and Facebook. Join us tomorrow morning for the Fast Five

77
00:04:22,440 --> 00:04:24,560
Speaker 1: by Fear and Greed, the top five business stories you

78
00:04:24,560 --> 00:04:27,080
Speaker 1: need to know. This is five minutes. I'm Michael Thompson.

79
00:04:27,279 --> 00:04:28,000
Speaker 1: Enjoy your evening,