Next Week At A Glance – 12-16 May 2025

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For a more comprehensive preview of next week’s events, please refer to “The Monday Report”, published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.

The week that was in Australian Finance:

-With the first trade framework between the UK/US announced, the following from Ed Yardeni is apposite: “The stock market will soon have deals fatigue and tire of Trump’s declarations of victory. We think the trade issue will be behind us by July or August. If so, then the focus should be on how much Trump’s tariff skirmishes weighed on the economy and earnings. We expect both will remain surprisingly resilient.”

-Markets are looking to the China/US trade talks in Switzerland this weekend for more signs of a conciliatory tone and scope for deals.

-Post the Liberation Day sell-offs, the ASX200 is not only flat year-to-date but also flat over the last week.

-The Trump Administration’s position on pharmaceutical pricing, healthcare, and the appointment of a new head of the FDA who is viewed as non-vaccine friendly weighed not only on US stocks but also the ASX healthcare sector, which was the biggest loser on the week, down over -3.5%.

-Technology and utilities lifted their respective sectors over 2%, while consumer staples, industrials, and financials, despite a couple of weaker big bank results, were up over 1%. Macquarie Bank’s ((MQG)) quarterly update was applauded by the market.

-Macquarie’s 27th Australia Conference, with 117 companies presenting this week, revealed better-than-expected company updates, with the average stock outperforming the market by 1.4% on the day of presentation. Travel stocks are being hit by tariff uncertainty, with positive upgrades from NextDC ((NXT)) and AUB Group ((AUB)). Retailers might also be on the receiving end of goods deflation from higher exports from China.

-The Federal Reserve remained on hold and continues to watch data. Tony Sycamore from IG noted: “The better jobs data, on top of hopes of more trade deals, the improvement in risk sentiment and the subtle removal of the Fed’s implicit easing bias yesterday, has led to a repricing of Fed rate cut expectations into year-end. The rates market is now pricing in only a 70% chance of a 25bp Fed rate cut in July, with a cumulative 69bp of rate cuts priced between now and year-end down from 78bp yesterday and 100bp two weeks ago.”

-ANZ Bank is flagging the RBA to cut the cash rate in May (Tuesday 20), supported by “disappointing” retail sales and first-quarter household consumption data. Wage growth data next week are expected to rise 3.2% on a year earlier, in line with the RBA. The bank expects the unemployment rate to rise to 4.2% in April.

-Out-of-season earnings forecasts continue into May, and the ASX200 index, while flat, belies many of the winning and losing stock price movers under the surface.

Until next week, have a great weekend from the FNArena Team.

Corporate news in the week that was:

-Hamish Douglas has acquitted 10.45% of MotorCycle Holdings ((MTO)).

-APRA is revisiting Rest super over risk management issues.

-Gold Road Resources ((GOR)) has accepted a takeover offer from Gold Fields, valued at $3.7bn.

-Media reports suggest Qube Holdings ((QUB)) is considering a major acquisition to expand its New Zealand operations or pursue opportunities such as Brookfield’s 50% stake in Patrick Terminals.

-BYD is outselling Tesla at a six-to-one ratio in Australia.

-Tabcorp Holdings ((TAH)) has launched live in-play betting in pubs and clubs.

-Seven West Media ((SWM)) is acquiring Southern Cross Austereo’s ((SXL)) TV assets.

-nib Holdings ((NHF)) is looking at divesting its travel insurance business with Zurich Insurance speculated as buyer for $200m.

-Spark New Zealand ((SPK)) is looking to sell a 50% stake in its data centre business for as much as $1.2bn to pursue growth opportunities.

-Platinum Asset Management ((PTM)) reported outflows in April including a withdrawal of -$985m from Colonial First State First Choice.

-Macquarie Group ((MQG)) in the ASIC spotlight for compliance failures on electricity market trading.

-Ramsay Health Care ((RHC)) is in discussions to acquire a minority stake in Perth Radiological Clinic.

-Kelsian Group ((KLS)) is looking to divest its tourism assets for lower debt by $675m.

-MedAdvisor ((MDR)) is in discussions around a takeover.

-CEO of Nine Entertainment is positive the CoStar takeover of Domain Holdings ((DHG)) will proceed with with funds of $1.4bn to be allocated to future acquisitions, including Formula One rights.

-BlackRock is taking a $25m minority stake in Generation Development Group ((GDG)) forming a strategic alliance to co-develop retirement products.

-Pro Medicus ((PME)) signed a $20m Visage imaging deal with the University of Iowa Health Care.

-Perpetual ((PPT)) is restarting the sale of its wealth management division with bids anticipated in the range of $500m-$700m.

-Shares owned by Bryan Dorman amounting to $108m in Regis Healthcare ((REG)) are being sold.

-Macquarie Capital is picking up a 5% stake in Webjet Group ((WJL)) at an 80c share price.

Next week’s Corporate Calendar

For a calendar of earnings result releases and a summary of earnings results to date, refer to FNArena’s Corporate Results Monitor (https://www.fnarena.com/index.php/reporting_season/)

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