Latest / The SME Stream / S&P500 punches through 7000, Treasury calls BS on claim gentailers are capital-starved

Transcript

S&P500 punches through 7000, Treasury calls BS on claim gentailers are capital-starved · The SME Stream

• 0:00
  Speaker 1: It is time to talk business thanks to our partner's
• 0:02
  Speaker 1: fullsythe bar. Looking first at the US markets, the key
• 0:05
  Speaker 1: S and P five hundred index broken through a threshold
• 0:08
  Speaker 1: above seven thousand for the very first time this morning.
• 0:11
  Speaker 1: Joining us is host of the Herald our business show,
• 0:14
  Speaker 1: Garf bray Gaff, Good morning, Good morning. Right, So we
• 0:17
  Speaker 1: got records in gold, we got records and silver and
• 0:21
  Speaker 1: we got another new record for the S and P.
• 0:23
  Speaker 2: Yeah, and these are just numbers right at the end,
• 0:25
  Speaker 2: But what's behind the numbers is probably what's important. This
• 0:28
  Speaker 2: is the index that tracks the top five hundred US
• 0:31
  Speaker 2: listed companies. So if it's popping through that sort of
• 0:35
  Speaker 2: number that traditionally it sort of shows a bit of
• 0:37
  Speaker 2: pressure anytime it's hitting in a sort of a six
• 0:39
  Speaker 2: thousand and five thousand or whatever. And I guess the
• 0:41
  Speaker 2: predictions could build quite a lot. Eight and a half percent.
• 0:45
  Speaker 2: I think Goldman's Sex is predicting for the year, so
• 0:47
  Speaker 2: reasonable returns if you're still in that market. I guess
• 0:49
  Speaker 2: it's showing that all of that crisis talk around Greenland
• 0:52
  Speaker 2: and whether there was going to be massive impact on
• 0:55
  Speaker 2: international trade as a result of the smack that was
• 0:58
  Speaker 2: being talked about, you know, potential takeovers there and so on.
• 1:02
  Speaker 2: That's been diluted now and people are now looking a
• 1:05
  Speaker 2: little bit more of some of the financials. We've had
• 1:07
  Speaker 2: some good numbers out of a Dutch company, ACML, that
• 1:10
  Speaker 2: makes equipment that makes semiconductors, computer trips.
• 1:13
  Speaker 3: Rather, they got good orders, they got good.
• 1:15
  Speaker 2: Orders, so their price went up five percent. And you've
• 1:17
  Speaker 2: got Meta, Microsoft and I think Tesla reporting later today.
• 1:20
  Speaker 2: Everyone's expecting big things from them. So there seems to
• 1:22
  Speaker 2: be just that bit of confidence back in even though
• 1:24
  Speaker 2: as you pointing out, like the metals, gold and stuff
• 1:26
  Speaker 2: are sort doing gangbusters because people are a little bit worried.
• 1:29
  Speaker 2: I mean, we had some interesting remarks from Trump, I
• 1:31
  Speaker 2: think it a rarely just recently talking about so what
• 1:34
  Speaker 2: he was asked whether it was a worry on him
• 1:37
  Speaker 2: that the US dollar was dropping on It's great and
• 1:39
  Speaker 2: that was a cause for concern Scott Best and the
• 1:42
  Speaker 2: Treasury Secretary rushes out and says, no, no, we're running
• 1:45
  Speaker 2: a strong dollar policy. We're not going to try and
• 1:46
  Speaker 2: help the Japanese yen out. Don't worry about talking.
• 1:50
  Speaker 1: So yeah, So coming back to this, so S and
• 1:52
  Speaker 1: P is up. You know, gold is up, all those
• 1:54
  Speaker 1: precious metals and stuff are up. Is this like the
• 1:57
  Speaker 1: beginning of the end, You know, when everything's going so well.
• 2:01
  Speaker 3: It's when the party's going well. Time to leave home.
• 2:05
  Speaker 2: Well, we might find out in about an hour when
• 2:07
  Speaker 2: Jerome Powell gives us his read on the US economy
• 2:10
  Speaker 2: after the two day meeting that the Federal Open Market
• 2:13
  Speaker 2: Committee does before it sets a rate. It's probably gonna
• 2:15
  Speaker 2: hold steady, but his remark will be really interesting around
• 2:18
  Speaker 2: just the state of the economy, what he sees, what
• 2:20
  Speaker 2: they see. I guess as well, whether he's planning to
• 2:22
  Speaker 2: stick around to be a bit of a fly in
• 2:23
  Speaker 2: the oint.
• 2:24
  Speaker 1: Right back here, Treasury is calling a bit of bs
• 2:27
  Speaker 1: these claims that the gent tailors didn't have enough money
• 2:30
  Speaker 1: to invest in new generation blah blah blah.
• 2:32
  Speaker 3: Treasury says, na bs.
• 2:34
  Speaker 2: Yeah, so this is a little aid memoir as they
• 2:36
  Speaker 2: call it, and a little document that's fallen out of
• 2:38
  Speaker 2: the OIA system. Thanks for some work by our friends
• 2:41
  Speaker 2: of the Business desk team there taking a look. This
• 2:43
  Speaker 2: is remember last year we had that big Frontier economics
• 2:46
  Speaker 2: report that said, oh, look, the big players are starved
• 2:49
  Speaker 2: of capital. They can't invest enough, and you need to
• 2:52
  Speaker 2: do it. Nicola will have said, pull out your plans
• 2:54
  Speaker 2: from the drawer, come and see us. We own half
• 2:55
  Speaker 2: of these companies on behalf of the taxpayer. Get in
• 2:58
  Speaker 2: behind us. No, they're saying, the capital, the balance sheets of.
• 3:01
  Speaker 3: All of them are there.
• 3:02
  Speaker 2: They say they could finance large projects out of two
• 3:05
  Speaker 2: years of maternal cash flow even after paying dividends, and
• 3:08
  Speaker 2: also potentially have access to sort of half of five
• 3:10
  Speaker 2: of a million to a billion in credit genesis. They're
• 3:13
  Speaker 2: saying maybe could smaller balance sheet, and that's just increasing
• 3:16
  Speaker 2: some talk that they may look at a capital raise
• 3:19
  Speaker 2: sometime this year, which markets always interested when a big
• 3:22
  Speaker 2: player is going to the market saying hey, there's an
• 3:24
  Speaker 2: opportunity to invest and give us some of your money.
• 3:26
  Speaker 3: It's a bit of a flag there.
• 3:27
  Speaker 1: And Dued Garth I keep saying, you're the host of
• 3:30
  Speaker 1: the new business show. Can we tell people when it
• 3:33
  Speaker 1: starts yet or not yet?
• 3:34
  Speaker 3: Coming soon?
• 3:35
  Speaker 1: These coming soon, coming soon, like to screens near you
• 3:40
  Speaker 1: because we white a man too. We haven't really talked
• 3:42
  Speaker 1: about it yet, but so that people know it's before
• 3:45
  Speaker 1: the show, right, yes, yeah.
• 3:47
  Speaker 3: And a reason to get up early and just be
• 3:49
  Speaker 3: ready for you.
• 3:49
  Speaker 1: Basically no, but it's good because people can get in there,
• 3:52
  Speaker 1: get the business news everything they need in space of
• 3:55
  Speaker 1: like thirty minutes.
• 3:56
  Speaker 2: But well depth, okay, so we'll go right from the
• 3:57
  Speaker 2: top end of the chain, you know, the board, right
• 4:00
  Speaker 2: through the decisions you might be trying to make around
• 4:02
  Speaker 2: the kitchen table.
• 4:03
  Speaker 3: Who are the players? Who know? What are the numbers?
• 4:06
  Speaker 3: You're already done a pretty good job here. We're just
• 4:07
  Speaker 3: going to give you. It just needs to be better.
• 4:11
  Speaker 3: Extra we had, always better, we had.
• 4:13
  Speaker 1: We had a photo shoot yesterday Garth Night, and actually
• 4:16
  Speaker 1: I took some pictures in some video.
• 4:17
  Speaker 3: Did you see those? Well, I wonder what you're doing
• 4:19
  Speaker 3: on the couch?
• 4:20
  Speaker 1: Yes, No, he was quite happy to be posing, just
• 4:24
  Speaker 1: doing my job like it was some fashion week or something.