Next Week At A Glance – 7-11 Apr 2025

This story features AMOTIV LIMITED, and other companies. For more info SHARE ANALYSIS: AOV

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:

-Looking past the penguin jokes circulating on social media platform X, due to Trump’s tariff imposition on two small Antarctic islands whose only occupants are seals and penguins, the mood and the state of global markets turned definitively grim on Thursday.

-Trump and his passionate adoration for tariffs saw the President comparing the sweeping changes to those enacted in 1890 to make America great again. All asset markets adopted a different version of the move to change the world trade order, and by all accounts this is just the start.

-The RBA meeting and unchanged rates decision on Tuesday seems eons ago, and market pricing for a May rate cut has been elevated to a 97% chance of a -25bps cut, with a cumulative -97bps of rate cuts by year-end to an RBA cash rate of 3.1% post tariff announcements.

-The ASX200 is trading down almost -3% for the week, with the major selling over Thursday and Friday post Trump’s Liberation Day announcements, which henceforth might be renamed “Liquidation Day”, dixit Anthony Scaramucci.

-Stocks with high tariff risks like Amotiv ((AOV)) and Breville Group ((BRG)) are falling sharply on Friday as analysts try to digest the potential tariff impacts. Amotiv also provided a disappointing trading update with profit warning attached

-Fears of slowing global economic growth pressured energy and commodities, with Australia’s energy sector down -11% and Materials falling over -6%. Defensive positioning picked up, with Healthcare and Consumer Staples sectors in the green for the week. Information Technology has not been immune from the Nasdaq sell-off, with the sector down -6.5%.

-As stated by Tony Sycamore at IG, “Overnight JPMorgan revised higher to 60% the chance of a global recession this year, up from 40%. As we have consistently noted this week, US equity markets are priced for a modest slowdown in growth and earnings but not for a recession. Should a recession occur in the US, US stock markets could easily fall a total of 30% from their February highs.”

-If you are feeling just a little startled and shocked by markets, you are not alone. Trump’s tariff announcements were far worse than expected, and only time will tell whether he negotiates and how major trading partners respond. This is America’s Brexit moment, all wrapped up in global supply chain shocks, falling consumer and corporate confidence, with growing risks of recessions.

-Some wise words from Stephen Innes, managing partner SPI Asset Management, “Eventually, someone will step in and buy the dip. They always do. But trying to front-run that moment now? That’s like standing in front of a freight train in full reverse. Stay nimble. Stay liquid. Don’t trust the first bounce. And for goodness’ sake, don’t get caught chasing ghosts after all, we are barely through the opening act.”

Have a great weekend from the FNArena team.

Corporate news in the week that was:

-Nine Entertainment ((NEC)) may use funds from the Domain Holdings ((DHG)) sale for acquisitions.

-Frasers Group will increase its stake in Accent Group ((AX1)) with a joint venture to grow Sports Direct in Australia.

-Insignia Financial ((IFL)) lost almost -$6bn in retirement savings to competitors with platform migration and adviser switching.

-HMC Capital ((HMC)) launched a takeover for Healthscope.

-Downer EDI ((DOW)) wins a NZ$600m Powerco contract for maintenance and repairs.

-The RBA and ASIC are reviewing the ASX ((ASX)) CHESS failure.

-Opthea ((OPT)) starts funding talks after a second trial failure for its eye disease treatment.

-Proprium’s $369m buyout of AV Jennings ((AVJ)) is accepted.

-Virgin Australia is due to IPO in June, with a May capital raising.

-The NZ government is considering a deal for Kiwibank, which includes an equity investment of NZ$500m and a possible IPO down the track.

-Lendlease Group ((LLC)) has sold its UK construction business for $70m, exiting its international construction operations.

-Anacacia Capital is selling its stake in Force Fire to Southern Cross Electrical Engineering ((SXE)) for $53.5m.

-Kelsian Group ((KLS)) announced the sale of its tourism assets to reduce debt.

-Barrenjoey is reported to be advising Perpetual ((PPT)) on the sale of its wealth business for $2.2bn.

-Singapore’s sovereign wealth fund, the GIC, is buying a 10% stake in Transgrid for $1bn.

-Galan Lithium ((GLN)) rejects a buyout worth $150m from Zhejiang Huayou Cobalt and Renault Group for its Argentine assets.

-Light & Wonder ((LNW)) is challenging Aristocrat Leisure’s ((ALL)) new legal claim over Dragon Train, which alleges trade secret misappropriation.

-Region Group ((RGN)) is planning a share buyback for $100m.

-PointsBet Holdings ((PBH)) is disputing BlueBet Holding’s ((BBT)) funding claims and competing takeover offer.

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/)

Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.

FNArena is proud about its track record and past achievements: Ten Years On

Click to view our Glossary of Financial Terms