Feeding the Machine
6/9/202649 min
On The Money Café this week, Alan Kohler and James Thomson unpack the latest market news and inflation, dig into the IPO race among SpaceX, OpenAI and Anthropic, weigh in on the Strait of Hormuz and KPMG's troubles, and field listener questions on housing, bonds, tax, childcare, AI and plenty more.
See omnystudio.com/listener for privacy information.
Clips
Transcript preview
First 90 secondsAlan Kohler· Host0:00
[upbeat music] Hello, I'm Alan Kohler, editor-at-large of Intelligent Investor and a finance presenter and columnist and podcaster for the ABC.
James Thompson· Host0:18
And I'm James Thompson, senior Chanticleer columnist at The Australian Financial Review.
Alan Kohler· Host0:22
And we are The Money Cafe. Uh, good day, James.
James Thompson· Host0:25
How are you, Alan?
Alan Kohler· Host0:25
I'm very well. Had a long weekend, so it's, uh, it's a good thing the Australia market was closed yesterday because it clunked down on Friday in, uh, Wall Street, didn't it?
James Thompson· Host0:35
It did, yeah. Um, a sudden reversal. Well, two things happened. Uh, the, the US jobs data came in very hot, surprisingly hot, which had, uh, everybody rushing to redo their calculations for US interest rates.
Alan Kohler· Host0:49
It was the old, um, it was the old good news is bad news gag.
James Thompson· Host0:53
Exactly. Exactly. And now, um, would you believe we've gone from expecting no, no cuts, uh... Oh, sorry, we've ex- gone from expecting a couple of cuts at the start of the year, we're now pricing in a hike for US interest rates [chuckles] before the end of the year, 0.25%, 'cause the economy's just running so hot.
Alan Kohler· Host1:14
Which is interesting because they've got a new chairman of the Fed now, and they're about to, he's about to have his first meeting, Kevin Warsh. And, um, you know, the assumption has always been that he's Donald Trump's man, he'll do whatever Donald Trump says, and Donald Trump wants rate cuts. Uh, but the market is saying