1 00:00:03,900 --> 00:00:06,930 Sean Aylmer: Welcome to the Fear & Greed afternoon report for Wednesday, the 2 00:00:06,930 --> 00:00:10,770 Sean Aylmer: 31st of May, 2023. I'm Sean Aylmer. Every afternoon we've 3 00:00:10,770 --> 00:00:12,750 Sean Aylmer: got the five stories that happened today, that you need 4 00:00:12,750 --> 00:00:16,199 Sean Aylmer: to know about. Story number 1. The S& P/ ASX 200 5 00:00:16,260 --> 00:00:21,900 Sean Aylmer: tumbled 1. 6% today to 7, 091 points. That's back 6 00:00:21,900 --> 00:00:24,419 Sean Aylmer: to late March levels and only just above where the 7 00:00:24,420 --> 00:00:27,959 Sean Aylmer: bourse started the year. Weak economic data out of China 8 00:00:28,139 --> 00:00:33,000 Sean Aylmer: and surprisingly strong inflation figures locally, weighed on stocks. The 9 00:00:33,000 --> 00:00:35,729 Sean Aylmer: Bureau of Statistics figures show that inflation for the 12 10 00:00:35,729 --> 00:00:37,860 Sean Aylmer: months to the end of April was a higher than 11 00:00:37,860 --> 00:00:43,019 Sean Aylmer: expected 6. 8%. The China data showed weakness in manufacturing 12 00:00:43,019 --> 00:00:46,348 Sean Aylmer: in the world's second- largest economy, and that hit the 13 00:00:46,348 --> 00:00:49,259 Sean Aylmer: big iron ore miners hard. They of course, export to 14 00:00:49,259 --> 00:00:53,069 Sean Aylmer: China. BHP was down 3. 4%. Fortescue Metals was off 15 00:00:53,100 --> 00:00:57,600 Sean Aylmer: 3%, and Rio was 2% lower. Commonwealth Bank, Westpac and 16 00:00:57,600 --> 00:01:02,130 Sean Aylmer: ANZ all fell around 2%. Wesfarmers was off 3.3%. The 17 00:01:02,130 --> 00:01:05,250 Sean Aylmer: energy sector, did worst while materials and financials weren't far 18 00:01:05,250 --> 00:01:09,240 Sean Aylmer: behind. Only tech stocks ended in the black and only 19 00:01:09,240 --> 00:01:11,580 Sean Aylmer: just. It was a rough day for the coal miners, 20 00:01:11,580 --> 00:01:15,000 Sean Aylmer: after the price of the sedimentary rock fell sharply yesterday. 21 00:01:15,209 --> 00:01:17,670 Sean Aylmer: Whitehaven was the worst of the top 200, down nearly 22 00:01:17,670 --> 00:01:21,389 Sean Aylmer: 6%. While New Hope was off 4.2%. It was just a 23 00:01:21,389 --> 00:01:23,580 Sean Aylmer: very rough day all around with about three quarters of 24 00:01:23,580 --> 00:01:27,629 Sean Aylmer: the top 200 falling. Story number 2. More revelations in 25 00:01:27,630 --> 00:01:31,560 Sean Aylmer: the PwC scandal with the Tax Commissioner telling Senate Estimates 26 00:01:31,560 --> 00:01:35,280 Sean Aylmer: that the consulting firm was behind 15 schemes designed to 27 00:01:35,280 --> 00:01:39,360 Sean Aylmer: help multinationals sidestep tax laws. And of course, at the 28 00:01:39,360 --> 00:01:42,149 Sean Aylmer: heart of this scandal is the fact that PwC, having 29 00:01:42,150 --> 00:01:46,169 Sean Aylmer: signed a confidentiality agreement, worked with the government to design 30 00:01:46,350 --> 00:01:49,080 Sean Aylmer: those laws. The idea was to capture more tax from 31 00:01:49,080 --> 00:01:52,890 Sean Aylmer: multinationals. Tax Commissioner Chris Jordan today said PwC put at 32 00:01:52,890 --> 00:01:56,429 Sean Aylmer: risk about $ 180 million in tax revenue a year because 33 00:01:56,429 --> 00:01:59,730 Sean Aylmer: it used the confidential information to advise clients. He also 34 00:01:59,730 --> 00:02:03,780 Sean Aylmer: accused PwC of frustrating the tax office in its investigations 35 00:02:03,809 --> 00:02:07,470 Sean Aylmer: into the schemes. Story number 3. The banking and superannuation 36 00:02:07,470 --> 00:02:11,790 Sean Aylmer: watchdog, APRA, said it's being more active to ensure super 37 00:02:11,790 --> 00:02:15,660 Sean Aylmer: funds accurately reflect the value of their assets, including those 38 00:02:15,660 --> 00:02:18,210 Sean Aylmer: unlisted assets. Now, a super fund might own an office 39 00:02:18,210 --> 00:02:20,758 Sean Aylmer: tower. It isn't worth as much as it was a 40 00:02:20,758 --> 00:02:23,549 Sean Aylmer: couple of years ago, but has it been revalued? That's 41 00:02:23,549 --> 00:02:27,330 Sean Aylmer: the question APRA wants to answer. APRA was appearing before 42 00:02:27,330 --> 00:02:31,169 Sean Aylmer: Estimates today. It also said it's formally investigating industry super 43 00:02:31,169 --> 00:02:34,200 Sean Aylmer: funds' payments to unions, and whether these were in members' 44 00:02:34,200 --> 00:02:38,008 Sean Aylmer: best financial interests. Funds' payments to unions can flow through 45 00:02:38,008 --> 00:02:41,489 Sean Aylmer: those unions to political donations to Labor or related political 46 00:02:41,490 --> 00:02:45,240 Sean Aylmer: groups, and that's under the microscope. Story number 4. Bank 47 00:02:45,240 --> 00:02:48,240 Sean Aylmer: of Queensland has been hit with enforceable undertakings by two 48 00:02:48,240 --> 00:02:51,960 Sean Aylmer: regulators for failing to have sufficient anti- money laundering and 49 00:02:51,960 --> 00:02:55,199 Sean Aylmer: risk management controls in place. The announcement comes six months 50 00:02:55,200 --> 00:02:58,439 Sean Aylmer: after the bank said it wasn't being watched by regulators. 51 00:02:58,770 --> 00:03:02,940 Sean Aylmer: One undertaking comes from banking oversight agency, the Australian Prudential 52 00:03:02,940 --> 00:03:06,179 Sean Aylmer: Regulation Authority, and the other from the financial crimes watchdog, 53 00:03:06,240 --> 00:03:09,540 Sean Aylmer: AUSTRAC. APRA will also require Bank of Queensland to hold $ 54 00:03:09,540 --> 00:03:12,660 Sean Aylmer: 50 million in extra capital from this month as part 55 00:03:12,660 --> 00:03:15,630 Sean Aylmer: of the deal. Bank of Queensland had several breaches of 56 00:03:15,660 --> 00:03:18,419 Sean Aylmer: APRA's prudential standards over the past 18 months. That's a 57 00:03:18,450 --> 00:03:21,030 Sean Aylmer: massive no- no in the banking world. APRA said the 58 00:03:21,030 --> 00:03:24,660 Sean Aylmer: bank has acknowledged its past risk management and risk culture 59 00:03:24,720 --> 00:03:28,889 Sean Aylmer: weaknesses. Bank of Queensland's share price fell nearly 5% today. 60 00:03:29,160 --> 00:03:32,219 Sean Aylmer: And finally, story number 5. Parliament was very busy today 61 00:03:32,219 --> 00:03:35,940 Sean Aylmer: between question time, Senate Estimates and normal business. One bill that 62 00:03:36,059 --> 00:03:39,060 Sean Aylmer: passed through the House of Reps was the Constitutional Amendments 63 00:03:39,060 --> 00:03:42,960 Sean Aylmer: Bill, establishing The Voice to Parliament referendum. It's a first 64 00:03:42,960 --> 00:03:44,760 Sean Aylmer: step in the process. And while the Nationals and a 65 00:03:44,760 --> 00:03:48,300 Sean Aylmer: handful of Liberal MPs opposed the bill, it passed easily. 66 00:03:48,509 --> 00:03:52,229 Sean Aylmer: 121 votes to 25. That's it for the afternoon report 67 00:03:52,230 --> 00:03:55,980 Sean Aylmer: for Wednesday, the 31st of May, 2023. Michael Thompson and 68 00:03:55,980 --> 00:03:58,440 Sean Aylmer: I will be back tomorrow morning with your Thursday edition 69 00:03:58,440 --> 00:04:01,110 Sean Aylmer: of Fear & Greed. I'm Sean Aylmer. Enjoy your evening.