2 June 2025 | Weekly Snapshot

Saward Dawson > Wealth Advisory Insights > Weekly Snapshot > 2 June 2025

Did you know?

Did you know that the two largest asset management businesses represent the ‘passive’ side, namely Blackrock and Vanguard? To appreciate the power of these passive investment businesses, Blackrock manages more money than the combined GDP of Australia, Germany and Japan.

Market Movements

The ASX was higher by 0.8% last week with Energy stocks (up 2.6%), Tech stocks (up 1.8%) and Financials (up 1.7%) leading the way. Resources was the only negative sector (down 0.2%), led by Illuka (down 5.9%). Ramsay was higher by 5.8% and among the stronger performers on news that competitor, Healthscope, was going into receivership. This could mean that unprofitable hospitals will soon be closed, meaning less competition and reducing the shortage of nurses and health professions in those regions.

In the USA, the S&P500 was higher by 1.9% with info tech (up 2.2%) and communications services leading the way (up 1.8%). Palantir and Broadcom were among the stronger tech stocks up 6.9% and 5.8% respectively, benefiting from another record NVidia profit result, which buoyed market confidence that tech earnings can still march higher.

On economic news, Australia April CPI inflation came in at 2.4% y/y, Australia retail sales fell -0.1% m/m and U.S. consumer confidence rebounds to 98.0 (from 85.7)

The April monthly inflation figure for Australia further confirmed that the inflation issue is behind us. Although the inflation rate was slightly higher than expected at 2.4% y/y, both headline and core inflation have remained within the RBA’s target band for five consecutive months. Market pricing, based on futures contracts, suggests a 62% probability of a cut in July and nearly three rate cuts by the end of the year.

It was the week of the “Taco trade”, which is a new market acronym for “Trump always chickens out” (on tariffs). This came after the continued stop/start nature of Trump’s tariff policies.

The tariff waters have also been recently muddied after a US trade court blocked President Trump from using emergency powers to impose sweeping tariffs on imports. The courts argue that the law does not authorise the use of tariffs, and the trade deficit does not meet the law’s emergency requirement. Unsurprisingly, tariff talks seemed to stall with China, who can’t be blamed if they are also confused with the US tariff position.

Portfolio Movements

Alibaba’s healthcare AI model passes Chinese medical exams

Alibaba’s healthcare-dedicated artificial intelligence model, powered by its advanced Qwen series, has successfully passed China’s medical qualification exams, the company said, achieving the “Deputy Chief Physician”, the fourth-highest level in China’s medical professional certification system.
The model was tested across 12 common medical disciplines, including general medicine, internal medicine, general surgery, obstetrics and gynaecology, and paediatric medicine.
The healthcare model has been fully integrated into Quark (Alibaba’s cloud drive), which automatically deploys the model when a user asks health-related questions. It has been refined for better accuracy in conjunction with hospitals and medical institutions, which are adopting the model in their own applications, the company said.
Alibaba shares were lower by 5.7% last week.

Telstra outlines Connected Future 30 Strategy

Telstra outlined their new Connected Future 30 Strategy. Our largest telecom provider pursues earnings growth, and improved shareholder returns over the next five years, including its target to be among the top 25% global companies on artificial intelligence maturity.
CEO Vicki Brady was upbeat on the opportunities ahead noting “There is no version of the future that rely on technology, and it all needs to be connected. And as s connectivity and digital infrastructure business this is a massive opportunity for us”
Telstra revised its debt servicing comfort level to a range of between 1.75 to 2.25 times net debt to EBITDA from the previous 1.5 to 2 times. Suggesting they think they are under geared. But also noted franking credits are a bit light and may look at partially franked divs, and hinted at further buybacks. FY EBITDA guidance was also reaffirmed.
Telstra shares were higher by 1.0% last week

WiseTech Global announces strategic acquisition of e2open

Recent speculation that WiseTech was looking to acquire US listed e2open has proven correct. WTC said the e2open acquisition creates a strategically significant change in global scale and reach for WiseTech, adding adjacent markets, customer bases, and product capabilities which allow WiseTech to create a global, multi-sided, trade and logistics marketplace.
The acquisition price of $3.30 per share in cash equates to an enterprise value of $2.1 billion -which will be fully debt funded. WTC had just $42 million in net debt at the last FY results vs. a market cap of $33 billion.
e2open (ETWO) was founded in 2000, is headquartered in Texas with operations in over 20 countries globally. It listed at $10 per share back in 2020 with the transaction expected to be EPS accretive in year one.
Wisetech is a leading provider of software-based solutions in the global logistics value chain
Wisetech shares were higher by 1.9% last week

The Week Ahead

Monday 2 June: USA S&P Global US Manufacturing PMI forecast 52.3 (prior 52.3).
Tuesday 3 June: USA ISM Manufacturing (May) forecast 49.5 (p.48.7), ISM Prices Paid (May) forecast 68.7 (p.69.8). China Caixin China PMI Mfg (May) forecast 50.7 (p.50.4), Caixin China PMI Services (May) forecast 51.0 (p.50.1).
Wednesday 4 June: Australia GDP QoQ (1Q) forecast 0.4%
Thursday 5 June: USA ISM Services (May) forecast 52.1 (p. 51.6), Trade Balance (April) forecast -$66.5b (p.-$140.5b), Initial Jobless Claims (May 31) 235k (p.240k), Continuing Claims (May 24) 1,906k (p.1,919k).
Friday 6 June: USA Change in Nonfarm Payrolls (May) forecast 125k (p.177k), Unemployment Rate (May) forecast 4.2% (p.4.2%).

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Saward Dawson Wealth Advisors Pty Ltd, a Corporate Authorised Representative of Akambo Pty Ltd t/a Accountants Private Advice

The information presented in this publication is general information only, and is not intended to be financial product advice. It has not been prepared taking into account your investment objectives, financial situation or needs, and should not be used as the basis for making an investment decision. Before making any investment decision you need to consider (with your financial adviser) your particular investment needs, objectives and financial circumstances.

Some numerical figures in this publication have been subject to rounding adjustments. Akambo Pty Ltd (including any of its directors, officers or employees) will not accept liability for any loss or damage as a result of any reliance on this information. The market commentary reflect Akambo Pty Ltd’s views and beliefs at the time of preparation, which are subject to change without notice.