1 00:00:03,880 --> 00:00:06,640 Speaker 1: It's Monday, the twenty seventh of May twenty twenty four. 2 00:00:06,880 --> 00:00:09,559 Speaker 1: Welcome to the Fast five Business News by Fear and Greed, 3 00:00:09,560 --> 00:00:11,400 Speaker 1: where we give you the top five business stories you 4 00:00:11,440 --> 00:00:13,840 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:13,880 --> 00:00:15,240 Speaker 1: and good morning Sean Aylmer. 6 00:00:15,440 --> 00:00:16,640 Speaker 2: Good morning, Michael. 7 00:00:16,720 --> 00:00:19,160 Speaker 1: Shaw on five stories in five minutes. Let's get going. 8 00:00:19,160 --> 00:00:22,720 Speaker 1: Story number one. It is crunch week for BHP's seventy 9 00:00:22,720 --> 00:00:25,720 Speaker 1: five billion dollar bid for Anglo American, with the deadline 10 00:00:25,760 --> 00:00:30,600 Speaker 1: now set for Wednesday night Australian Time, and analysts reckon 11 00:00:30,680 --> 00:00:33,240 Speaker 1: a deal could get done, but sew on the sticking 12 00:00:33,240 --> 00:00:35,440 Speaker 1: point here is really the structure, isn't it? 13 00:00:35,440 --> 00:00:37,800 Speaker 2: It is essentially under the current proposal there's a bunch 14 00:00:37,840 --> 00:00:40,879 Speaker 2: of assets which BHP wants spun off before any takeover, 15 00:00:41,240 --> 00:00:44,599 Speaker 2: and another bunch to be reviewed after the takeover. That 16 00:00:44,720 --> 00:00:47,199 Speaker 2: really is the sticking point. BHP has said it has 17 00:00:47,240 --> 00:00:51,479 Speaker 2: made a final offer ratio. Basically it's one Anglo share 18 00:00:51,520 --> 00:00:55,200 Speaker 2: four point eight eighty six BHP shares, but that doesn't 19 00:00:55,200 --> 00:00:59,120 Speaker 2: preclude it from offering cash and I think some investors 20 00:00:59,120 --> 00:01:01,840 Speaker 2: are hoping for that. BHP is insisting that Anglo spin 21 00:01:01,880 --> 00:01:04,559 Speaker 2: off majority states in South African Platinum n I are units. 22 00:01:04,600 --> 00:01:07,400 Speaker 2: It means Anglo shareholders end up with stakes in those 23 00:01:07,440 --> 00:01:10,399 Speaker 2: off laded assets and they carry the risk of any 24 00:01:10,440 --> 00:01:13,720 Speaker 2: of those deals. Large Anglo shareholders that wreckon BHP should 25 00:01:13,720 --> 00:01:16,280 Speaker 2: carry some of that risk. Also, it will take time, 26 00:01:16,360 --> 00:01:18,720 Speaker 2: possibly more than a year. Some Anglo shareholders might not 27 00:01:18,760 --> 00:01:21,520 Speaker 2: realize the value of the bid for some time. South 28 00:01:21,560 --> 00:01:24,600 Speaker 2: African regulators could also demand concessions. Put all that together 29 00:01:24,600 --> 00:01:27,600 Speaker 2: and you understand better. While the Anglo shareholders view the 30 00:01:27,640 --> 00:01:31,920 Speaker 2: BHP deal as too complex, however, some of the large 31 00:01:32,000 --> 00:01:36,360 Speaker 2: Anglo shareholders are pushing board and management to talk to BHP. 32 00:01:37,080 --> 00:01:39,479 Speaker 2: People think that something could be done as. 33 00:01:39,360 --> 00:01:42,360 Speaker 1: If that isn't enough Complexity sean and the time pressure 34 00:01:42,360 --> 00:01:44,520 Speaker 1: on this as well. There's also a South African election 35 00:01:44,800 --> 00:01:47,360 Speaker 1: this week which may just complicate things a little bit. 36 00:01:47,680 --> 00:01:50,360 Speaker 2: Sure is the African National Congress, the political party of 37 00:01:50,400 --> 00:01:52,560 Speaker 2: Nelson Mandela has been in power for thirty years. Once 38 00:01:52,600 --> 00:01:55,200 Speaker 2: to keep the record going, The election coincides with the 39 00:01:55,240 --> 00:01:58,040 Speaker 2: deadline for BHP to make a formal offer for Anglo. 40 00:01:58,440 --> 00:02:01,320 Speaker 2: The concern is that whoever wins, will BHP or Anglo 41 00:02:01,440 --> 00:02:04,720 Speaker 2: to guarantee jobs, capital spending and local procurement, even if 42 00:02:04,720 --> 00:02:07,320 Speaker 2: the iron ore and platinum businesses are spun off, just 43 00:02:07,560 --> 00:02:09,639 Speaker 2: another X factor for that deal. 44 00:02:10,040 --> 00:02:12,040 Speaker 1: Yeah, indeed, all right, on the story number two now, 45 00:02:12,040 --> 00:02:14,360 Speaker 1: The auction clearance rate over the last week came in 46 00:02:14,400 --> 00:02:17,560 Speaker 1: at seventy one point five percent, slightly higher than a 47 00:02:17,600 --> 00:02:20,040 Speaker 1: week earlier, and the market looks almost say to be 48 00:02:20,080 --> 00:02:22,800 Speaker 1: reasonably settled at the moment, I think so. 49 00:02:23,000 --> 00:02:25,040 Speaker 2: There were twenty two hundred auctions last week, which is 50 00:02:25,040 --> 00:02:26,800 Speaker 2: a bit higher than normal for this time of the year. 51 00:02:26,840 --> 00:02:29,160 Speaker 2: Melbourne in particular is holding plenty of auctions. It's had 52 00:02:29,200 --> 00:02:31,760 Speaker 2: four weeks in a row of one thousand plus auctions. 53 00:02:31,919 --> 00:02:34,520 Speaker 2: In terms of preliminary clearance rates, Melbourne came in at 54 00:02:34,520 --> 00:02:37,040 Speaker 2: seventy one point two percent, up nearby three percentage points. 55 00:02:37,040 --> 00:02:39,679 Speaker 2: Sydney with seventy two point seven percent, down one point 56 00:02:39,760 --> 00:02:42,480 Speaker 2: five percentage points. But those figures are about the long 57 00:02:42,560 --> 00:02:45,360 Speaker 2: run average, and the smaller markets Adelaide at seventy eight percent, 58 00:02:45,360 --> 00:02:47,799 Speaker 2: Brisbe at seventy percent are running ahead of the long 59 00:02:47,880 --> 00:02:50,399 Speaker 2: run average. Canberra came in at fifty nine percent, which 60 00:02:50,400 --> 00:02:52,400 Speaker 2: is a bit below the long run average. 61 00:02:52,720 --> 00:02:55,760 Speaker 1: All right, moving on to story number three now, Sean 62 00:02:55,960 --> 00:02:59,760 Speaker 1: and Australians with AI skills are being paid more, sometimes 63 00:02:59,760 --> 00:03:04,000 Speaker 1: seven sineteen percent more than those without artificial intelligence skills. 64 00:03:04,440 --> 00:03:07,960 Speaker 2: The AI Jobs Brometer from PwC Australia shows AI skilled 65 00:03:08,000 --> 00:03:11,280 Speaker 2: workers employed as education managers, research and development managers and 66 00:03:11,360 --> 00:03:15,920 Speaker 2: database administrators received the highest average wage premium, ranging between 67 00:03:15,919 --> 00:03:19,000 Speaker 2: fourteen and seventeen percent. Jobs that require AI skills in 68 00:03:19,040 --> 00:03:21,959 Speaker 2: Australia had an average premium of six percent. That's actually 69 00:03:21,960 --> 00:03:24,480 Speaker 2: lower than the global average of fourteen percent from fourteen 70 00:03:24,520 --> 00:03:28,200 Speaker 2: other country surveyed, including the US, UK and Canada. PwC 71 00:03:28,320 --> 00:03:30,359 Speaker 2: looked at more than five hundred million job ads from 72 00:03:30,360 --> 00:03:32,680 Speaker 2: fifteen countries and found that the number of jobs that 73 00:03:32,760 --> 00:03:36,320 Speaker 2: required AI has increased four and a half time since 74 00:03:36,320 --> 00:03:41,120 Speaker 2: twenty twelve in Australia, compared to seven times internationally. Other 75 00:03:41,240 --> 00:03:44,000 Speaker 2: jobs that had a high wage premium for AI skills 76 00:03:44,000 --> 00:03:47,760 Speaker 2: include advertising in marketing, professional supply and distribution managers, and 77 00:03:47,840 --> 00:03:51,120 Speaker 2: industrial engineers. According to report in the Australian. 78 00:03:51,280 --> 00:03:55,360 Speaker 1: Story number four, proxy advisor Glass Lewis has urged Tesla 79 00:03:55,440 --> 00:04:01,000 Speaker 1: shareholders to vote against Elon Musk's fifty six billion US 80 00:04:01,000 --> 00:04:04,680 Speaker 1: dollar pay award and a proposal to reincorporate the electric 81 00:04:04,760 --> 00:04:06,200 Speaker 1: vehicle maker in Texas. 82 00:04:06,440 --> 00:04:08,000 Speaker 2: It's a major blow for the board ahead of its 83 00:04:08,000 --> 00:04:11,520 Speaker 2: annual meeting next month. Glass Lewis is very influential. It 84 00:04:11,640 --> 00:04:14,480 Speaker 2: said the chief executive's package of share options was unduly 85 00:04:14,520 --> 00:04:18,719 Speaker 2: dilutive and of excessive size. Surely not it is set 86 00:04:18,720 --> 00:04:21,000 Speaker 2: it in a reported release over the weekend. According to 87 00:04:21,000 --> 00:04:23,760 Speaker 2: The Financial Times, it also criticized the proposed moves to 88 00:04:23,800 --> 00:04:28,360 Speaker 2: Texas as offering uncertain benefits and additional risks to shareholders. 89 00:04:28,520 --> 00:04:31,640 Speaker 2: The proxy advisor also raised issues with Musk's slate of 90 00:04:31,839 --> 00:04:36,000 Speaker 2: extraordinarily time consuming projects, in particular the twenty twenty two 91 00:04:36,000 --> 00:04:40,880 Speaker 2: acquisition of Twitter. He's also got SpaceX uralink boring company. 92 00:04:41,320 --> 00:04:44,119 Speaker 2: Tesla's board has been lobbing investors to ratify the fifty 93 00:04:44,160 --> 00:04:46,800 Speaker 2: six billion dollar award, which it originally was given in 94 00:04:46,839 --> 00:04:49,880 Speaker 2: twenty eighteen. A Delaware judge struck it down in January 95 00:04:50,000 --> 00:04:52,680 Speaker 2: due to the size and concerns about the independence of 96 00:04:52,720 --> 00:04:54,720 Speaker 2: the board. Anyway, they're trying to get it back up now. 97 00:04:55,320 --> 00:04:57,720 Speaker 1: I know I shouldn't have favorites, Sean, but story number 98 00:04:57,720 --> 00:05:00,440 Speaker 1: five is my favorite today. Jensen Huang may not be 99 00:05:00,880 --> 00:05:03,400 Speaker 1: a household name, but he is now super rich. This 100 00:05:03,520 --> 00:05:06,640 Speaker 1: is incredible. The co founder of chip maker and VideA 101 00:05:06,920 --> 00:05:11,040 Speaker 1: now has a fortune worth ninety one point two billion 102 00:05:11,360 --> 00:05:17,440 Speaker 1: US dollars thanks to the absolutely extraordinary surge in Nvidia's 103 00:05:17,440 --> 00:05:17,920 Speaker 1: share price. 104 00:05:18,279 --> 00:05:20,560 Speaker 2: He's no richer than the Walton family members. They're the 105 00:05:20,560 --> 00:05:25,000 Speaker 2: ones that created retailer behemoth. Walmart is the seventeenth richest 106 00:05:25,120 --> 00:05:28,440 Speaker 2: person in the world, according to the Bloomberg's Billionaires Index. 107 00:05:28,760 --> 00:05:32,160 Speaker 2: Nearly all his wealth is in Nvidia shares. The chipmaker's 108 00:05:32,160 --> 00:05:34,640 Speaker 2: share price pushed beyond the thousand US dollars last week 109 00:05:34,680 --> 00:05:37,920 Speaker 2: after a very strong March quarter result. The company's share 110 00:05:37,920 --> 00:05:39,840 Speaker 2: price is up around two hundred and fifty percent this 111 00:05:39,960 --> 00:05:43,320 Speaker 2: Year's not that far off Apple, about three hundred billion 112 00:05:43,520 --> 00:05:47,200 Speaker 2: US dollars off Apple. It's the third largest company, and 113 00:05:47,320 --> 00:05:50,560 Speaker 2: its co founder, Jensen Huang, is very very rich. 114 00:05:51,080 --> 00:05:52,640 Speaker 1: It certainly is there. We go to the top five 115 00:05:52,680 --> 00:05:55,600 Speaker 1: business stories in five minutes. Thank you Sean, Thank you Michael. 116 00:05:55,720 --> 00:05:58,320 Speaker 1: It's Monday, the twenty seventh of May twenty twenty four. 117 00:05:58,360 --> 00:06:00,680 Speaker 1: Remember to hit follow on the podcast, and if five 118 00:06:00,720 --> 00:06:02,760 Speaker 1: minutes isn't enough, you can find our longer daily show 119 00:06:02,800 --> 00:06:05,320 Speaker 1: called Fear and Greed wherever you listen to podcasts that 120 00:06:05,360 --> 00:06:07,360 Speaker 1: comes with a bunch of interviews and thinks today's interview 121 00:06:07,440 --> 00:06:10,200 Speaker 1: is a terrific one for investors. I'm Michael Thompson and 122 00:06:10,200 --> 00:06:12,400 Speaker 1: that was the Fast five business news by Fear and Greed. 123 00:06:12,800 --> 00:06:15,640 Speaker 1: Have a great day.