23 June 2025 | Weekly Snapshot

Saward Dawson > Wealth Advisory Insights > Weekly Snapshot > 23 June 2025

Did you know?

When we think about inflation, we generally think about prices rising higher and higher. But when you break down the different components of inflation, we see a very different story. Prices for technology actually declines through time whereas medical and education expenses are running rampant. Did you ever consider that these highly inflationary sectors are also the most regulated by governments?

Market Movements

The Australian equity market fell 0.6% last week, led lower by resources (down 2.7%). Iron ore prices are down 8.5% so far this year, whilst copper is up 11.6%. Oil was higher last week again (up 5.2%) on continued middle east tensions. Mineral Resources was down 11.8% whilst Brambles was a top performer up 6.8%.

In the USA, stocks were down 1.1% also led by materials (down 2.6%). Communication services were down 2.8%, led by Alphabet (down 5.5%). Leading solar company, First Solar, led the market lower (down 17.3%), whilst US gas company EQT was higher by 3.9%.

In economics news, U.S. retail sales fell 0.9% m/m, Australian unemployment rate was steady at 4.2% in May and the U.S. Federal Reserve held rates at 4.25-4.50%. Tariff deals between Japan and the USA also appear to have stalled.

Portfolio Movements

Santos receives takeover offer at 30% premium

Santos, our 2nd largest energy company, received a non-binding indicative proposal led by Abu Dhabi’s National Oil Company.
The proposal is for the acquisition of all of the ordinary shares in Santos for a cash offer of $8.89 per share, a 30% premium to its previous closing price.
The Indicative Proposal is a “final non-binding indicative offer” and apparently follows two other proposals from XRG to buy Santos in March 2025 for $8.00 and again for $8.60.
The Santos Board has confirmed they intend to unanimously recommend that Santos Shareholders vote in favour of the Potential Transaction, in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the Potential Transaction is fair and reasonable and in the best interests of Santos Shareholders.
The Santos share price is currently $7.80, which is 14% below the offer price, reflecting the risk of deal falling over and the time it would take to receive cash proceeds (if successful).

Wise tech Global appoints new Independent Non-Executive Directors

Wise tech appointment two new Independent Non-Executive Directors.
Hesta and Australian Super exited their Wisetech shares earlier in the year at approx. $90 on governance concerns. In particular, the lack of board representation from independent directors and allegations of mis-conduct against the CEO, Richard White.
Now that Wisetech shares have rallied to $105 and the independent board roles have been filled, investors can appreciate the sometimes conflicting priorities between governance and the primary duty of an investment manager (i.e. investor returns).

Amazon CEO expects AI to shrink workforce

Amazon CEO Andy Jassy said he expects the company’s corporate workforce will shrink in the coming years as it adopts more generative artificial intelligence tools and agents.
In a memo to staff he noted “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” adding “It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce.”
His advice to staff was to learn how to use AI tools, experiment and figure out “how to get more done with scrappier teams.” Amazon had 1.56 million full and part-time employees in its global workforce as of the end of March.

The Week Ahead

Monday 23 June: USA S&P Global US Mfg PMI (June) forecast 51.0 (prior 52), S&P Global US Services PMI (June) forecast 52.9 (prior 53.7), S&P Global US Composite PMI (June) forecast 52.1 (prior 53.0).
Tuesday 24 June: USA Existing Home Sales (May) forecast 3.95m (prior 4.00m).
Wednesday 25 June: USA Conf. Board Consumer Confidence (June) forecast 99.8 (prior 98.0). Australia CPI YoY (May) forecast 2.3% (prior 2.4%).
Thursday 26 June: USA New Home Sales (May) forecast 693k (prior 743k), GDP Annualized QoQ (1Q) forecast -0.2% (prior -0.2%), Durable Goods Orders (May) forecast 8.5% (prior -6.3%).
Friday 27 June: USA Personal Income (May) forecast 0.3% (prior 0.8%), Personal Spending (May) forecast 0.1% (prior 0.2%).

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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.