1 00:00:00,080 --> 00:00:02,120 Speaker 1: With me now is Andrew Kurtain Milford Acid Management. 2 00:00:02,160 --> 00:00:04,160 Speaker 2: Hey Andrew even in Heather. 3 00:00:04,360 --> 00:00:06,560 Speaker 1: So what do you make of that update yesterday from 4 00:00:06,640 --> 00:00:09,240 Speaker 1: Fletcher Building on the potential sale of the Construction division. 5 00:00:10,640 --> 00:00:13,080 Speaker 2: Yeah, it didn't come as a complete surprise because they 6 00:00:13,080 --> 00:00:14,960 Speaker 2: had an invest a day about a month ago where 7 00:00:14,960 --> 00:00:20,480 Speaker 2: they allocated this division which is Construction Division, including Brian Perry, 8 00:00:20,520 --> 00:00:23,400 Speaker 2: Sibil and Higgins, and they allocated that it's been a 9 00:00:23,440 --> 00:00:26,759 Speaker 2: non core division, so basically saying it's not strategically important 10 00:00:26,800 --> 00:00:29,080 Speaker 2: to the future of the business, which is essentially a 11 00:00:29,120 --> 00:00:31,600 Speaker 2: signal to the market saying look, we may be willing 12 00:00:31,640 --> 00:00:33,960 Speaker 2: to sell this business. I guess what maybe is a 13 00:00:33,960 --> 00:00:36,159 Speaker 2: little bit surprising is only a month later that come 14 00:00:36,159 --> 00:00:39,159 Speaker 2: out and said we're now launching a formal process. So 15 00:00:39,159 --> 00:00:41,520 Speaker 2: it sounds like they've had some expressions of interest coming 16 00:00:41,600 --> 00:00:45,560 Speaker 2: from some external buyers. Postsets at update a month ago, 17 00:00:46,520 --> 00:00:48,720 Speaker 2: which maybe is a little bit earlier than people were expecting. 18 00:00:48,760 --> 00:00:51,640 Speaker 2: This division is sort of recovering from a lack of 19 00:00:52,200 --> 00:00:55,600 Speaker 2: roading infrastructure spend over the last few years, so some 20 00:00:55,680 --> 00:00:57,600 Speaker 2: investors thought it might take a little bit longer for 21 00:00:58,120 --> 00:01:00,680 Speaker 2: interest to build, But it seems like the forward looking 22 00:01:00,720 --> 00:01:04,600 Speaker 2: expectation on sort of higher or more roading expensure, but 23 00:01:04,680 --> 00:01:06,720 Speaker 2: that seemed sort of push forward by the national government 24 00:01:06,720 --> 00:01:08,360 Speaker 2: has got interest in this division. 25 00:01:08,640 --> 00:01:10,800 Speaker 1: Share price reaction to it has been fairly mute, it 26 00:01:10,880 --> 00:01:11,800 Speaker 1: hasn't it. 27 00:01:12,520 --> 00:01:16,160 Speaker 2: Yeah, it's a pretty it's a material but smallish division. 28 00:01:16,200 --> 00:01:19,040 Speaker 2: It's around about ten percent of the value of lecture buildings, 29 00:01:19,080 --> 00:01:22,080 Speaker 2: so it's not huge, and it's sort of hard to 30 00:01:22,080 --> 00:01:24,240 Speaker 2: put a number on things. At the moment, we don't 31 00:01:24,280 --> 00:01:26,800 Speaker 2: have a formal bid and it's going to take many 32 00:01:26,800 --> 00:01:28,920 Speaker 2: months for this process to run, and I think investors 33 00:01:28,920 --> 00:01:31,040 Speaker 2: already going to look for a little bit more color 34 00:01:31,080 --> 00:01:33,240 Speaker 2: on what price the bids might come out before they 35 00:01:33,280 --> 00:01:35,839 Speaker 2: sort of make too many assumptions about share rights reaction. 36 00:01:36,520 --> 00:01:38,640 Speaker 1: Now on the international markets, you had the second quarter 37 00:01:38,680 --> 00:01:41,880 Speaker 1: results season which is kicked off in the US and Europe. Obviously, 38 00:01:41,920 --> 00:01:43,880 Speaker 1: is there anything that you will see in worth calling 39 00:01:43,880 --> 00:01:44,480 Speaker 1: out so far? 40 00:01:46,319 --> 00:01:50,480 Speaker 2: Yes. Results season is always important for the stock market direction, 41 00:01:50,600 --> 00:01:52,640 Speaker 2: and particularly at the moment with the share market at 42 00:01:52,680 --> 00:01:54,800 Speaker 2: all time high is having rallied for about twenty five 43 00:01:54,840 --> 00:01:57,840 Speaker 2: percent from the April low. Is everyone's very focused to 44 00:01:57,880 --> 00:02:00,480 Speaker 2: see what's going to become out on results, what's going 45 00:02:00,520 --> 00:02:03,200 Speaker 2: to be the news on sort of tariff impacts? Early 46 00:02:03,240 --> 00:02:05,720 Speaker 2: indications and this is sort of before we have all 47 00:02:05,720 --> 00:02:08,360 Speaker 2: the super large mega cap companies reporting, But over the 48 00:02:08,400 --> 00:02:10,959 Speaker 2: last week, the indications have shown that the market is 49 00:02:11,000 --> 00:02:14,160 Speaker 2: given just enough kind of confidence and earnings and outlook 50 00:02:14,480 --> 00:02:17,720 Speaker 2: to support the market. The large banks such as Jacobrgan, 51 00:02:18,200 --> 00:02:21,240 Speaker 2: City Bank, Wells Fargo had decent results last week, pointed 52 00:02:21,240 --> 00:02:24,440 Speaker 2: to an economy that's relatively resilient, not too much weakness. 53 00:02:25,240 --> 00:02:27,840 Speaker 2: One result that was a little bit more negative was Netflix, 54 00:02:27,840 --> 00:02:30,160 Speaker 2: which is sort of a top twenty company in the 55 00:02:30,240 --> 00:02:33,920 Speaker 2: US stock market now had fantastic numbers, but the share 56 00:02:33,919 --> 00:02:36,079 Speaker 2: price sold off five percent, So that sort of indication 57 00:02:36,160 --> 00:02:39,480 Speaker 2: that the market's got pretty over at skis and needed 58 00:02:39,520 --> 00:02:41,840 Speaker 2: sort of super strong results to support the share price. 59 00:02:42,000 --> 00:02:44,440 Speaker 1: Yeah, and what are the key results to focus on 60 00:02:44,480 --> 00:02:46,519 Speaker 1: over the next week or so. 61 00:02:46,919 --> 00:02:49,720 Speaker 2: We've got the megacaps coming out, So tomorrow's Google and Tesla, 62 00:02:49,760 --> 00:02:52,440 Speaker 2: they were always very important results, and then in the 63 00:02:52,520 --> 00:02:56,240 Speaker 2: next week got Microsoft, Amazon and Meta which I was Facebook, 64 00:02:56,360 --> 00:02:58,480 Speaker 2: and really the market's could be focused on what these 65 00:02:58,480 --> 00:03:00,440 Speaker 2: companies are saying about ARTI for short time in elligence, 66 00:03:00,480 --> 00:03:02,400 Speaker 2: so they're going to keep spending on it, and the 67 00:03:02,440 --> 00:03:04,680 Speaker 2: market kind of wants to see that they are going 68 00:03:04,720 --> 00:03:06,760 Speaker 2: to spend to sort of justify this big rally. We've 69 00:03:06,760 --> 00:03:09,120 Speaker 2: seen a lot in these AI stocks, so if they 70 00:03:09,120 --> 00:03:10,600 Speaker 2: sort of show a bit of caution, then that could 71 00:03:10,600 --> 00:03:11,600 Speaker 2: be negative for the market. 72 00:03:11,720 --> 00:03:14,240 Speaker 1: It's stuff Andrew really appreciate it. Enjoy evening, Andrew Curtain 73 00:03:14,280 --> 00:03:15,240 Speaker 1: Wilford Ascent Management. 74 00:03:15,840 --> 00:03:19,000 Speaker 2: For more from Heather Duplessy Allen Drive, listen live to 75 00:03:19,120 --> 00:03:22,120 Speaker 2: news talks. It'd be from four pm weekdays, or follow 76 00:03:22,160 --> 00:03:23,960 Speaker 2: the podcast on iHeartRadio.