Afternoon Report | ASX tumbles

This is the Fear and Greed Afternoon Report - everything you need to know about what happened in the markets, economy and world of business today, in just a few minutes.

1. Banks sold off

2. Cash flow problems

3. Rare earths win

4. Tassie poll

5. Pharma tariffs

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Episode Transcript

Speaker 1 (00:03):
Welcome to the Fear and Greed Business News Afternoon Report
for Wednesday, the sixteenth of July twenty twenty five. I'm
Sean Alma. Every afternoon, we've got the five stories that
happened today that you need to know about. Straight number one,
the good news and the local chair market yesterday didn't
last long, with the SMPASX two hundred today having its
worst one day loss since May on the back of

(00:23):
inflation fees in the US. The SMPASX two hundred closed
down zero point eight percent to eight thousand, five hundred
and sixty two points, with the financials struggling. Most that
includes the big banks. National Australia Bank was off three percent,
Westpac was down one point six percent. Come Off Bank
was off more than one percent. The minus started lower,
but by the closed BHP, Rio and Fortes QW Metals

(00:43):
had all outperformed the market. The tech stocks were the
best or among the best, including Promedicus Zero and Ria Group.
Goldiger Newmont felt six percent after it sold its stakes
in two North American Minds and its CFO resigned. The
drop on the AX today followed a nine percent fall
on Wall Street overnight for the dualisted company Evolution Mining,

(01:04):
also a gold company, fell two percent even though it
reported significantly higher cash generation during the last six months,
and then Lee dropped two percent after it announced plans
to develop a two and a half billion dollar luxury
luxury residential tower in Sydney. Sorry Number two The Council
of Financial Regulators wants new powers for the federal government
or regulator to step in and regulate cash in the

(01:26):
economy if the last remaining cash transport service, armor Guard, collapses.
The big users of cash been working with Reserve Bank
and others to ensure cash continues to be transported around
the country. The problem is that the use of cash
has diminished to the point whereby transporting it is uneconomic.
Commonwealth Bank, Westpac, National Australia Bank, ain Zed, Cole's Woollies,

(01:49):
Bunnings and Australia Posts agreed to inject twenty five million
dollars to keep armor Guard operating until the end of
the year. The CFR is now proposing an overhaul of
how cash is managed and distributed to give regulators similar
powers over cash distribution services as they have over the
bank's superfunds and insurers. Straight number three Local rare earths

(02:09):
miners outperformed today after Apple did a five hundred million
US dollar deal with the only US rare earth's minor,
MP Materials to purchase magnets from the company. Now rare
earth magnets are used in iPhones. Rare earths, which are
actually seventeen different chemical elements, aren't very rare. In fact,
they're pretty common, but they're very difficult to process. China

(02:31):
produces more than half of all rare earths, but the
US wants to find its own sources. Last week, the
Pentagon invested in MP Materials. That's the same company that
Apple's done to deal with MP. Share price is almost
doubled in the past week. So what does this mean
for the local rare earth's players like I Luka Resources
and Linus. Rare earths investors love them, hoping that the
US players will look to Australia for rare earth chemicals.

(02:54):
MP can't provide everything a Luca and Linus to share.
Prices are up nearly twenty five percent in the last week.
Sorry number four. In state politics, Tasmanians go to the
polls this weekend, with Labour leader Dean Winter up against
the premier Jeremy Rockcliffe, and a hung parliament seems the
most likely outcome. Polls suggests the Liberals will win but
be short of a majority. Today, the two faced off

(03:16):
in a televised debate hosted on Sky News. Rockcliffe and
Winter clashed over healthcare, the state's debt, and the controversial
efforts to build a new AFL stadium at Macquarie Point. Meanwhile,
in New South Wales's independent MP and former leader of
Federal Labor Mark Latham is under fire over allegations of
threatening and coercive behavior from his former partner, allegations he denies.

(03:37):
Natalie Matthews made the allegations in an application for an
apprehended violence order against Latham. Latham has dismissed them as
preposterous and will contest them in court. Sorry Number five.
US President Donald Trump says he'll impose the tariff on
pharmaceuticals by the end of the month before ramping it
up over a year or so. Said the tariff will
below to begin with to give the pharmaceutical companies time

(03:58):
to relocate to the USA, and I quote, there are
two ways you do it. You make money or you
have them move here so they don't have to pay
the tariff. Those are the two ways the pharmaceutical companies
are moving back to America where they should be. Trump
also said he had reached a deal with Indonesia where
that country will face a nineteen percent tariff, and also
deal with Vietnam, which will pay a twenty percent tariff,

(04:20):
well down from the initial forty six percent tariff. Outlined.
That's it the Afternoon Report for Wednesday, the sixteenth of
July twenty twenty five. Make sure you hit follow on
the podcast. We will be back tomorrow morning. It's the
first edition Appear and Greed Business years. I'm Schanielma. Enjoy
your evening.