Ringing in the New (Financial) Year
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Hello, I'm Alan Kohler, editor-at-large of Intelligent Investor and the finance presenter and columnist and podcaster for the ABC.
And I'm Stephen Mayne, contributor at Intelligent Investor, founder of Crikey and shareholder activist. And we are? We are the Money Cafe, taking a quick break from the World Cup. Mbappé has just scored a classic for France. Gee, they're good. They're leading Sweden 1-0. Who's this? Sweden versus France. Oh, yeah. Round of 32. So we're time-checking ourselves here. It's 8 o'clock on Wednesday morning. Mbappé, the best player in the world, just hit the post and then he's produced an absolute classic. So I reckon they're going to win it. Just sublime to watch. Le Bleu. You're not excited. I hope you're going to get up at 4 o'clock on Saturday at least to watch the Australians in Egypt. Oh, yeah. Look, I get up Saturday morning at 4 o'clock anyway to finish the money.
You should include it in your Saturday wrap. You produce the best weekend reading in the country every week at 7 o'clock. Why don't you have a little bit of an Australia-Egypt Kohler's take? Kohler's hot take on that. It'll be perfect timing for you.
Perfect timing. Yeah, that's right. So happy new financial year, Stephen.
Yes, and are you nursing a hangover after last night? It's always a big one, New Year's Eve.
Well, I always, whether it's the normal New Year's Eve or the financial year New Year's Eve, I always go to bed early. It's funny. My days of New Year's Eve parties are well and truly over.
It's funny. My very first ever radio gig was on Triple R in 1989 as a 19-year-old doing the – end of financial year wrap from midnight till 2 a.m on melbourne's iconic community radio station and i did it again this i've done it 37 years in a row did it again this week but unfortunately it's now a half hour pre-record so we don't go into the studio a waft of sort of interesting stuff it's smelling that's cheating drink a few crownies and talk for two hours with bob got leaps and joins every year as well normally so did he join this year No, I haven't heard the pre-record, but he would always be taking a call at 1 o'clock and two hours on the end of the financial year. So not many people celebrate the end of the financial year, but a lot of changes this year, Alan.
There's lots of tweaks from the minimum wage to all sorts of super stuff. We probably should have a quick start with that.
Well, what do you think the biggest stories of the financial year were, Stephen?
Oh, biggest of the year, I would say it's probably the tech boom. Yeah, just the AI and crowned by SpaceX. So I think that is the biggest business story of the year. I think obviously Iran and the Strait of Hormuz and oil and markets is also – that's sort of the global – What's your take on the biggest yarn of the year?
I couldn't agree more. I think that you're right. The biggest story has been AI. The rise of Anthropic with Claude, taking over from ChatGPT and OpenAI. And more recently, the launch of this new Chinese large language model called GLM 5.2. by the company called Zipu or ZAI or I can't figure out what the company's named. Anyway, it's just as good, the AI is just as good as Claude and Chachi Pite apparently and it's a fraction of the price. So I think that's going to disrupt the whole thing. Yeah, and also the SpaceX IPO, of course. Unbelievable.
Yeah, and as of today, there's 16 companies in the world that are worth more than a trillion dollars. Four of them are not American. So Aramco, the Saudi oil companies, are two Koreans, Samsung, and then SK Hynix, and then Taiwan Semi. And the booms move from the AI models to the chips. So it's now a chips bubble. So, you know, for instance, at the moment, Micron, a chip maker, is worth $1.3 trillion. SK Hynix is worth $1.3 trillion. Samsung, $1.33 trillion. TSMC, the Taiwan semi, worth $1.96 trillion. Broadcom, $1.8 trillion. That is an awful lot of value in chip makers. Whether the AI companies themselves, which are all burning cash in there, the ones that are creating the value for the chip makers going into all those data centers, whether they're going to all be around in five years I think is an open question because they're bleeding cash making the chip makers rich.
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