BHP acquiring Anglo, GME Frenzy & GPT4o

In this episode, Parth & Abdul the ongoing attempt from BHP to acquire Anglo American. They also explore the recent surge in the popularity of Ozempic, and the recent revitalisation of the Gamestop meme stock saga. Lastly, they briefly explored the Open AI’s newest release - ChatGPT4o.

Episode Transcript

(00:01):
Welcome back to the Investory podcast,where we help you work smarter and harder
by providing market updates and insights.Today, we have some interesting topics that
we want to cover. We wantto talk about the potential beach P acquisition,
a little bit about a Zen pic, and then finish off with some
commentary on Open Eyes new release thatjust was released yesterday, and then a

(00:28):
little bit aout game stop and memestocks. So with that we'll jump into
our first story, which is beachPeace potential acquisition. And before we dive
into the specifics of this deal,let's get to know a little bit about
beach P and the bidder in thishigh profile chase. So, beach P

(00:50):
is a titan in the mining world. Founded in Australia way back in eighteen
eighty five. They've grown into diversifiedpowerhouse extracting and change of valuable resources.
Iron, coal, copper and nickeltame a few and beach P currently holds
the crown of the world's largest miningcompany by market cap and out of the

(01:19):
local Flagship Index in Australia, whichis the Essex two hundred, which comprises
of the two hundred largest companies inAustralia by market cap. In that index,
BHP account for just under ten percentof the entire index, so it
is the largest stock that is currentlylisted on the Australian Stock Exchange. Interesting

(01:40):
accounting for well, you know,ten percent of the index. So a
stock that big tends to move theentire market of the country, and not
just the country, but also othermining dense nations. And as as ad
mentioned, they're they're very averse intheir mining operations, quite heavily linked to

(02:04):
the price the price volatility of ironore as of their shipments are exported to
China, and this recent takeover bidin which BHP is attempting to acquire Anglo
American has been a roller coast forthe last two weeks or so. When

(02:27):
where the original bid began, becauseI'll let abdoor give a bit of background
Anglo American as well, but yeah, in essence, Anglo is a massive
copper giant, and copper the metalis very important in the TV transition over
the next couple of decades into greenenergy and electric vehicles, and that's one

(02:49):
of the areas where I wouldn't saythey're lacking, but compared to the other
operations they would definitely like to buildupon correct thanks to little context exactly so
you hinted that copper. But beforethat, let's go into the bid so
Angle American established in South South Africa. Sorry, another diversified minor, you

(03:12):
know, the strong presence and platinum, iron, diamond and copper. And
like you said, copper is somethingthat's it's a vital material for the future
and really is what is driving beachpeas you know, ambition, right and
and and the driver for this thispotential acquisition. So you know, with

(03:34):
the rise of renewable energy evs expandingparagrids, we expected the man for copper
two skyrocket and beach PC's Anglo Americanscopper minds in a Latin America, particularly
those in Chile in Peru as strategicadvantages in the future focused market. And

(03:58):
by acquiring this, you could saythey could become the undisputed king of copperate.
Right, but this you know,just now, let's talk more about
the the merger potential merger, right, we did alude to it. If
the merger was to go through,then BEHHD would control ten percent of the

(04:18):
world supply of copper. And theAngle American is you know, operating in
so many different countries and nations,it will be a very complicated merger to
actually take price. But let's talkabout Yeah, let's talk about the merger
itself. Right, I wanted toactually talk about some geopolitical implications. That's

(04:39):
why I wanted to talk about,you know, what this means for let's
say, the South South African government, right, because what I've read online
is that you know, they've expressedconcerns, particularly regarding the fate of because
you know, Anglo Americans has alot of South African subsidies, right,

(05:00):
Amplats and Cumba, which are alsoyou know, they focus on a lot
of raw materials. Am Plants onplatinum and Cumba on iron core iron ore.
Right, So if this were togo ahead, you know, these
subsidies are major employers and they contributesignificantly to South African economy. And what

(05:27):
I read the line is the governmentfears that this deal could lead to job
losses and a decline in South Africa'smining influence. So it is, you
know, it's it's more than justcopper to South Africa, and rightly so,
but I don't know how I feel. So it's like if this merger

(05:49):
were to go ahead, and mypersonal thoughts, my initial thoughts are do
these subsidiaries have to shut down andthey can still exists? Right? And
again, the interesting thing offers isthat the South African elections are taking place
in two weeks on May twenty nine, and BHP has already placed two or

(06:15):
offered two different valuations for Anglo American. And that puts a lot of pressure
on the South African politicians because goinginto the polls, going into a general
election, a deal of that levelcan have a very big impact on the
kind of votes you get. Andso I mean, before you continue the

(06:36):
conversation on what the implications of thedeal for South Africa would be, I
just want to go ahead and saythis deal is not going to take place
because a few hours ago, AngloAmerican rejected BHP's second acquisition offer, which
was fifteen percent higher than their initialoffer, and they what you know what

(06:56):
else they announced. They announced thatthey will be selling their coal assets in
Queensland. They will also be exitingDiamond because if you didn't know, Anglo
American owns the Beers, which isyou know, the largest diamond. They
will also be exiting platinum and nickelindustries under a bold plan to concentrate on
their strengths and friend off BHP sixtyfour billion dollar takeover. Bit how long

(07:18):
could this come on? You said, fifteen years ago, a few hours
ago. Wow, right here,radical changes in Anglo American in more than
a couple decades. And the onlything BHHD really did here was force the
timeline because I think Angler would haveliked to wait for the South African elections

(07:40):
to be over before and after thatthey will they're going to make these radical
changes. But since BHP had alreadymade two bids, they had a timeline
of twenty two May to give afinal indicative proposal. And I think Anglo
Americans executive coming out and saying thatthey're going to be selling out all the
other assets and focusing on three mainareas of operations is essentially them defending themselves

(08:07):
against the BEA shop approach and theBHV acquisition. Interesting. Yeah, so
I didn't actually catch this, butjust to weigh in my own, I
guess personal thoughts, I think Ithink so Again, this was something that
you know, the South African governmentdid voice the potential loss of jobs and

(08:31):
from you know the early offers thatI did really you know, BHP did
offer some assurance, which is whatI was sort of alluding to my my
answer before. But you know,looking back at history, you know,
it's littered with examples of mergers leadingto consolidation and workforce reductions, and of
course the environmental impact, you know, the large scale mining projects with you

(08:54):
know, devastating consequences for local ecosystemsand your water resources too, And both
Beach p and Angle American they doneed to demonstrate a bigger commitment to stainable
practices and and yeah, I thinkit's pretty interesting that you broke this news
here here first with US just twohours ago. So you so, what

(09:18):
if this deal is well, fromyour readings, you strongly believe this will
not go through from what you read, Angler has rejected this worth sixty billion
dollar bit and they're now going tosell off all of the other assets and
focus on three operations. So what'snext is so what are they specializing in
now? They're going to be focusingon prop nutrients copper, so they will

(09:43):
not be selling off copper, whichis you know, the entire point of
the the deal. So I don'tsee why PhD would continue with any sort
of acquisition in this case. Hmm, that's pretty cool. It's interesting.
Yeah, well, I guess uhthat kind of leads us to our next

(10:07):
story you want to talk about next, which has been broomed for a few
months now. Zempic the birth ofa like a controversial I don't know,
diabetes, you know diabetes, youknow, cure or medical treatment that's really
become a global phenomenon originally designed fortype two diabetes, but has taken an

(10:31):
unexpected turn which not has not onlyimpacted diabetes management but also the weight lot
in the industry. So part,do you want to give a little bit
of, you know, a backstoryto you know, the story behind oz
empic. You know, yeah,yeahady find this I find a story of
a zembic really really funny but alsokind of inspiring in a sense because,

(10:58):
uh, zempic was I think it'sbeen publicly available on the market for a
few months now, since last year, and initially there were there wasn't too
many concerns. But if you lookat the initial ads that were being released
for the drug by the drug company, which is Noble Nordisk, the ads

(11:18):
were obviously about the diabetes that yousaid, because it's a type two dia
beats drug, but they would veryheavily advertise the fact that one of the
side effects was weight loss. Andbelieve it or not, but a large,
large percent of the population is obese. I think the statistics that's something

(11:39):
like sixty percent of the US populationis obese, and a large population around
the world is very obese. Andthey can't help it, right, because
there's all these snacks that are available. And I think both outdoor myself and
can say that we have fluctions inour weight. You go up and go
down because just stay healthy one hundredpercent of the time as much as we

(12:01):
wish we could. Now, Idon't know anyone personally that has used the
drug itself, but the drug hasabsolutely skyrocketed in popularity because what it essentially
does is it kills your appetite,and it does not It kills your appetite,
so you don't want to eat morefood, and because you consume less

(12:22):
calories, you lose weight. Right, And I'm sure that there's other side
effects to consume that drug, butwhen you're when you weigh four hundred pounds,
the side effects of consuming that drugare not as big as being that
huge of four hundred pounds self.And for those people using that drug and
taking that first step, good forthem, right, because once you get

(12:46):
to like say two hundred pounds,then you can build all those healthy habits,
get off the drug, maybe startingto the game, maybe start eating
a little more whole foods, etcetera, et cetera. Right, but
it can as that first step.And what that has done to the company
is for the market help of thatcompany is absolutely skyrocketed. But it also
now accounts for a large percentage ofit's of the country's uh GDP because it's

(13:11):
a it was based in Denmark,and since it's listed in Denmark, the
stock and the value of the stockand the market the stock very very heavily
influences the nation because if the stockgoes down, tens of thousands of people
loose jobs, and the government hasonce for that. And so now the

(13:31):
country is in a position where theykind of need this healthcare company to succeed
because they're creating jobs, they're providinga lot of you know, there's they're
starting foundations, they're starting schools,they're kind of becoming the company for the
coming they're kind of putting Denmark onthe map almost like a key role player.

(13:52):
Yeah, so what are you kindof looting? It's almost like a
quick fix for people that are veryoverweight. But oz Empic the company,
so Nova Noordice has been around fora long time nineteen twenty eight, and
and I always wanted to add alittle bit more to you know, the

(14:13):
the unexpected side effects. So yeah, we did say that it does.
It does kill your appetite, andit also helps weight loss. But it
also does it also slows down yourdigestion, right, digestion, so it
allows your body to absorb your calories. It also increases insulin sensitivity, which
it helps you. It promotes,it promotes, It enables you to have

(14:37):
betteralization of energy from food, whichbasically leads to less you know, fast
swords. So it kind of itreduces weight loss in three different ways.
Right, And of course, youknow you said part said it's really taking
you know, the world by storm. That's gone completely viral, medical journals

(15:01):
buzzed with research and use outlests,you know, headlining the stories. But
the kind of you know, thesudden surge and demand has also had unintended
consequences. Right, So a couplemonths ago, production couldn't keep up with
pace, and there were like therewas there was that much demand that there

(15:22):
were supply shortages worldwide. But Imean the next question is, right,
the next question is for both ofus, for viewers, for people to
consume this product, is this Well, what is the impact on the weight
weight loss industry and for other drugsthat you know are that have a primary

(15:43):
purpose for weight loss industry because thishas this drug has had effects and impacts
in markets to substruct substitute goods,and well, I think the more interesting
impact instead of talking about other waightlost drugs is talking about like the completely

(16:04):
the other side of the spectrum,right, it's talking about food companies and
snack companies. Because if you thinkabout the connection that being weight loss and
snacks, it's an inverse relationship.So if ozampeg as a drug has taken
off and the stock of the companyhas skyrocketed, then there's should be an
inverse price movement in the movement orin the price of snack companies. Then

(16:30):
that was evident very early on withthe likes of parent companies like Twinkies.
And I'm talking about the US,because that's probably the most well known globally.
But those snack companies were genuinely concernedbecause if people start losing weight and
they lose appetite, then no one'sgonna I don't want to say nobody,
but there will be less people consumingtheir snacks. Yeah, I agree,

(16:52):
and I agree. Yeah, butall flabel use has also raised ethical concerns.
You know, doctors, Yeah,you know, doctors can prescribe.
I'm not sure. Aren't they allowedto prescribe medications for purposes beyond like you
know, the the day proved uces. Possibly, but it's not too sure.

(17:15):
But either way, I think itdoes require careful consideration, you know,
before taking this because I'm not sureif it's a prescribed over the counter.
But I think a lot of insurancecompanies are also hesitant to cover a
zempic for weight loss, you know, you know, citing lack of f
day approval for this specific use.And is this a beacon of hope,

(17:40):
you know or just a uh on, a cautionary tale, you know,
because this story is still unfolding.Although this happened you know, a while
ago, so six seven months ago. It is a powerful tool for managing
type two diabetes. But it's Idon't think we can fully label this as

(18:00):
a weight loss drug, right,Like, Yeah, just to like put
it out that Australia's Medical Board hasapproved the drug or type two diabetes and
has said that it is safe forthat purpose, but it has not been
flag that's safe or weight loss.So do what your doctor says. Read.

(18:22):
Yes, there still needs more researchand more doctor supervision, but I
think the future is pretty bright fornormal ortice, right. I guess they
could they could possibly release a weightloss drug, right, I mean,
they have the they could probably possiblybe rebrand and and re release a new

(18:44):
drug that is, you know,so people don't have to use it off
label anymore, and that could youknow, meet a lot of death concerns.
They have the market leader advantage,right because weight losses that's not going
away anytime soon. Yeah, it'snot. The population keeps growing and people

(19:04):
keep getting unhealthier, which has beenthe decades. Yeah. Well yeah,
honestly, all the process foods ourdiets, you know, lack of better
terms, going to ship. Really, I'm planning pizza right after this podcast.

(19:26):
I had the Donalds for this.Well there we go. Yeah,
no, no good only because yeah, I normally do cook, but only
because around my chicken. I haveto restart tomorrow, you know that I
have to. Yeah, then Ihave to provide some explanation for that.

(19:48):
But want to jump into Opening Eye. Yeah, let's talk of a bit
more about the recent news because thepick was quite a while Anglo American has
been going on for a few lastcouple of weeks. But let's talk about
two stories that were pretty much cameout last night during the US during the
US market session. Uh, andthat is the Memes talk rally of Games

(20:12):
Stop once again as well as GPand AI. So let's start off with
AI because that's been quite a hottopic. And I'll let updo induce the
topic a bit. Yeah. Yeah, So Opening Eyes so has released it's
recent release of GPT four. Ohyou know, there's obviously a lot of
excitement in the world of AI.You know, a lot of promising advancements

(20:37):
with you know, old functionalities,and I was gonna really briefly just brush
over some of the key aspects,you know, just like on a technical
not too much a technic level,but you know, what's what's different in
this in this new patch right,So speed and efficiency. So this this
version of g P t astown impressiveand really remarkable speed improvements. I've had

(21:03):
issues personally with GPT. I don'thave the paid version, but i have
had issues with the older version,so I'm excited to test that out.
Personally. I've up on my handup. I've been using Google Google Gemini
recently, but I might made theswitch back over the GPT. A lot
of enhanced safety measures that that thatis that's been released because you know,

(21:27):
opening ass AI especially you know,with concerns you know, safety and at
concerns. They really have a strongemphasis on developing and creating a safe environment
for AI to you know exist.And this model has you know, particulously
designed a lot of you know,built in safety features that's encompassing various stages

(21:51):
from you know, data filtering duringtraining to post training refinement of responses.
They've also added real time interact.So I think this is only available in
the paid version of I correct atthe moment, but I think with this
verse, yeah, so let's talka bit about the model. Yeah,
talk about a bit of the model. They launched their live stream yesterday which

(22:12):
was called GPT four. Oh sotheir previous version was GPT four. The
version yesterday was GPT four. Oh, where the O stands for omni,
and that essentially refers to the factthat Chad GBT can now handle inputs from
different formats such as text, audio, and video in the same conversation.

(22:36):
So if you've ever used Chad GPTbefore, which you probably have, it
could only handle text, and whileit was still pretty impressive, there was
always a part of me that wishI could like upload a PDF into it,
or you know, tell it alittle definitely yeah, okay, but
a YouTube video and tell it toanalyze that for me. But now Google,
I can. Yeah, that's whyI made the switch. I'm able

(22:59):
to you know, put images that'spart of for the next GPTO will be
available in the free and the paidversions, and I'm assuming the paid version
will obviously be more comprehensive, butit will be pretty fun to try out
the new voice and video mode,with Sam Allmon, who's obviously the founder
and CEO of the company, sayingthat he he's a bit surprised that about

(23:22):
how real it feels, and quoteunquote, he said it feels like AI
from the movies now that is thefounder talking about his own product. To
take that with a grain of salt, because we haven't tried it out ourselves,
but Chad GPT is a very impressiveproduct definitely continues to surprise him.
Yeah, how is one that itfirst came on? Yeah, twenty wile

(23:51):
Wow, so the first version ofg GBT Yeah, twenty two slash twenty
three. But yeah. There arespeculation of Apple working on their own chat
pot and AI in house, butsince that's staying quite a while and Apple
doesn't like to release anything that's tooearly. There was also speculation that they
are most likely going to partner withopen Ai, where they would put open

(24:15):
AI's cha GPT model into series andthen see would essentially become a chat pot
for open Ai. Interesting questionable though. I think they did release the division
pros early. Well, yeah,the wig pro, and I think they
were they had because they had thatwas a bad move on their part.
I think, yeah, we're gonnahappen. Not a fan, Yeah,

(24:40):
but let's talk about do you wantto jump to the more to add to
that? Know, not not toomuch on the AI stuff. The AI
stuff will keep going. It willprobably replace her jobs very soon. But
let's talk a bit about what aI can replace, and that's memes talks
and not Yes, the power ofmeme traders, human traders, Yeah,

(25:04):
humans coming together, djens, thepower of degens. Yeah, like so
I think last night, Well,let's give a bit of backtory, right.
So, yeah, if you remember, if you were ever exposed to
the market, back in twenty twentyone, the COVID era, there was
a insant in mean stock rally ongame stock, and the entire background of

(25:26):
that was because GameStop held a specialplace in a lot of people's hearts and
the company was going down a spiralbecause no one really bought physical DVDs for
anything anymore, and there was alot of hedge funds shorting the stock.
And so this guy called a RoaringKitty on Reddit made an entire thread about

(25:48):
how we're going to short squeeze thesehedge funds by buying game stop stock back
in twenty twenty one, and forall you know, it worked out,
and everyone on Reddit jumped on board. They sent them stock flying. Tons
of hedge funds got liquidated or margincalled I think robinhood physically prevented people from
buying the Stop. So if therewas no buy button on your screen,

(26:12):
if we were trying to buy theget in the stock, you could only
sell the stock. And I thinkthere was a few cases where certain trading
apps sold the stock for you.I don't know how that allowed. But
anyway, moving to yesterday, thesame person, who had not been active
on any social media for well threeyears since his original post, posted a

(26:34):
simple picture on Twitter, not necessarilyabout Game Stop. I do think,
I do think. I just hada quick look at the picture. It
was the the leaning forward meme.Yeah, yeah, leaning forward. I
think that does imply, like youknow, game on, you know,
like I think it did kind of. I think it implies game on or

(26:55):
I'm getting ready. But in noway does that say let's pump game stock.
Well, no, I don't.I think jis will be dejens.
But when I first saw that photo, kind of, you know, alluded
to let's, you know, let'sround two, let's you know, let's
lean forward, get into it andthen see how we know what damage we

(27:15):
can do. But I just wantedto add a little bit more context.
So twenty twenty one, when thisfirst started, it was COVID times right,
So like I guess these hedgephones wererightly shorting, you know, game
stop. A lot of people weremoving to streaming devices. You know,
people weren't going out anymore. Youknow, that's why you see, you
know, I think Netflix was doingpretty well. To cinemas were closing down.

(27:36):
People really moved made the move fromyou know, physical games and physical
movies and go into cinemas and youknow, to the more online streaming devices.
So I guess, you know,the the the trade, the trade
decis, the trade philosophy made sense. But I guess you know, the
power of you know, djens asis stronger, right, so we we

(27:59):
A lot of headphones did get liquidated, and then he had jumping back to
Warren Kitty came back online. Imean, I think game stop, I
think did I think a couple areonly a few hours after his tweet,
right, yeah, rallied. Ithink from what I can see it rallied
about eighty yeah. And it isworthy to know that there was nothing else.

(28:25):
There was no announcement from the company, there was no treating, there
was no analysts reports. It wasjust a tweet from a guy posting a
picture of another guy playing a videogame. HM I don't think this guy's
dogs. He goes under Warren Kitty, right, his dogs. His real
name is Keith Gill. He wasknown as deep f and Value on Reddit.

(28:49):
Okay, so he his dogs.I thot was some random cat on
Twitter that's said. That's said calledto the Senate for a Senate hearing in
twenty only one as part of hisquote unquote market alleged market manipulation further red
from them. So they're definitely goingto investigate this then that I don't think

(29:10):
so, because there's no inciting investorsto do anything in this case. Right,
he posted a picture. You can't. You can't see a guy posting
a picture. You can't. Yeah, but I mean, oh, man,
well we depend do you would youget in trouble? Let's say if
he did load up on game Stop, you know, the past few weeks
before tweting, that is that ofcourse he knows he has influence, right.

(29:37):
I mean it's tough, right becauseI'll quote his his testimony from twenty
twenty one. Yeah, and Iquote what he said was a few things.
I'm not I am not a cat, I am not an institutional investor,
nor am I a hedge fund andthen he also said that his social
media posts are merely educational and heis not responsible for mobilizing the army of
retail traders. Hmm, okay,we'll see. I don't know, but

(30:03):
it's a very interesting story and kindof had a spillover effects in the crypto
markets, with you know, memecoins also going up, not as much,
but a lot of you know,your old legacy meme coins doge with
the newer ones Pepe right like,Yeah, yeah, I think that was

(30:23):
as well because of the tweet.Yeah, pretty interesting. Yeah, memes
are back in fashion again. We'llsee how that. You know, how
long do you think it's gonna last? Personally? I think it will die
down pretty quick. Yeah, metoo, Yeah, I think it's I
think a few days max. Really, I mean, the CPI that comes

(30:48):
out tomorrow can really kill all themomentum, right, I think meme stocks
are kind of you think. Idon't know, because theoretically, if this
tweet was to come out tomorrow duringthe inflation data release, I think it
would still it would it would,yes, regardless overvalued because the market cap

(31:12):
jumped up twice up overnight, whichdoes not make sense. Yeah, I
don't know. But I do thinkit's very short lived. I'm personally not
buying into it. I'd like totrade it for fun. Yeah, just
for fun and with you know,sometimes happy to lose. Not a crazy

(31:33):
amount either, but yeah, definitely. It's just nice being a part of,
uh, part of the movement,you know, it's being part of
you know, this whole whatever theagenda is, you know, queuing hedge
funds or whatever. Maybe it's justyeah, helped the cause, right with

(31:55):
my fifty dollars, just you know, yeah, the sentiment, but it
Yeah, we don't provide financial advice. Please risk your money at your own
risk, and don't listen to us. Do not. Yeah we're not we're
not licensed to do that. ButI think that's about it, right.

(32:20):
We talked quite a bit about AngloAmerican and the b HP acquisition and that
it's not gonna happen anymore, whichis good or bad, depending on which
side of the line you lie.We also talked about the GPT four oh
release yesterday and the game stops,and a bit about and yeah, oh

(32:49):
but all from us. Thank youso much for tuning in for this episode
of the Investors Arey Podcast. Hopefullywe will catch you in the next one
as well. And peace, Thankyou, Peace,