• A rare feather just sold for $28,000, making it worth 40 times as much as gold by weight

    The Waka Huia performs a Maori welcome ceremony at St Mark's square on June 3, 2009, and a male and female huia sit on a tree branch in an artist's illustration.
    The Waka Huia performs a Maori welcome ceremony at St Mark's square on June 3, 2009, and a male and female huia sit on a tree branch in an artist's illustration.

    • A feather of the extinct huia songbird just sold in New Zealand for about $28,000.
    • That makes it worth about $3,153 per gram, or 40 times as much as gold's $77 per gram in New Zealand.
    • The huia's plumes are sacred to the Māori people and were worn by those of high status.

    A single feather of an extinct bird was auctioned off in New Zealand on Monday for about $28,000, making it the most expensive feather ever sold worldwide.

    The feather of the huia, a songbird native to New Zealand's North Island, is sacred to the Māori people and was worn by elite chiefs, per the New Zealand Geographic.

    But the bird has been extinct for over a century, with its last sighting in 1907.

    The huia feather sold at Webb's Auction House in Auckland was initially estimated to be worth around $1,830, but its sale price ballooned after 59 bids.

    As noted by The Guardian, its final price of $28,000 makes it worth more by weight than gold. Gold costs around $77 per gram in New Zealand, and the 9-gram huia feather is worth $3,153 per gram.

    In 2010, another huia feather was sold for about $4,400.

    The feather sold on Monday is framed under protective glass and is classified by the New Zealand government as a Y-registered object. Such items can only be purchased by registered collectors in New Zealand and cannot leave the country without permission.

    Dark brown with a white tip, the huia feather was highly valuable in Māori societies and sometimes used in trade or as a gift.

    As New Zealand Geographic puts it:

    Of all Tane's children, the huia was the most sacred to Māori. Other birds, such as the kōtuku (white heron) and amokura (red-tailed tropic bird) were also prized for their plumes, but huia was pre-eminent. In pre-European times, only chiefs of high rank and their whānau wore the distinguished tail feathers in their hair.

    These birds were typically found in pairs in New Zealand's forests and were understood to bond for life, with males and females working in tandem with their differently shaped beaks to feed on insects in trees.

    According to New Zealand Geographic, a Māori method of catching a huia was to mimic the bird's call, snare one, and then wait for the other to arrive after it hears its mate's cries.

    Habitat loss and capturing of the huai in pre-colonial times contributed to some population loss, per the magazine. Deforestation and systemic hunting by European naturalists and traders exacerbated the bird's decline as its feather became a fashion accessory in the 19th century.

    Despite efforts in 1892 to make the huia a protected species, the bird is thought to have gone extinct in the early 20th century.

    The huia feather sale comes as auctions draw attention largely from sports and celebrity memorabilia sold at once-seemingly outlandish prices. The famed "Hand of God" jersey worn by soccer legend Diego Maradona, for example, sold in 2022 for $5 million.

    Read the original article on Business Insider
  • Sundar Pichai says OpenAI might have breached YouTube’s terms and conditions to train its text-to-video model Sora

    Google CEO Sundar Pichai (left) and OpenAI CEO Sam Altman (right).
    Google CEO Sundar Pichai (left) and OpenAI CEO Sam Altman (right).

    • Sundar Pichai thinks OpenAI might have breached YouTube's terms of service when it trained Sora.
    • The ChatGPT-maker wowed the AI industry when it debuted its text-to-video model in February.
    • OpenAI's CTO Mira Murati said she wasn't sure if Sora was trained on YouTube videos. 

    OpenAI might've breached YouTube's terms and conditions to train its text-to-video model Sora, says Google CEO Sundar Pichai.

    "So you felt like they had broken your terms and conditions, or potentially, or if they had, that wouldn't have been appropriate?" Nilay Patel, the editor-in-chief of The Verge, asked Pichai in an interview published Monday.

    "That's right. Yes, that's right," Pichai replied.

    https://platform.twitter.com/widgets.js

    Earlier in the interview, Pichai revealed that YouTube was still "following up and trying to understand" how OpenAI had trained Sora.

    "Look we don't know the details," Pichai said. "We have terms and conditions, and we would expect people to abide by those terms and conditions when you build a product, so that's how I felt about it."

    In February, the ChatGPT-maker wowed the AI industry when it debuted Sora to the world. The model, which takes its name from the Japanese word for "sky," is capable of generating high quality videos with a simple text prompt.

    But OpenAI has remained coy about the data it used to train coy. The company's CTO Mira Murati told The Wall Street Journal's Joanna Stern in March that it "used publicly available data and licensed data."

    Murati, however, gave a far less definitive answer when Stern asked if OpenAI had taken data from platforms like YouTube and Instagram.

    "I'm actually not sure about that," Murati replied. "You know, if they were publicly available to use, there might be data. But I'm not sure. I'm not confident about it."

    https://platform.twitter.com/widgets.js

    Last month, YouTube CEO Neal Mohan told Bloomberg's Emily Chang that while he didn't know if OpenAI had trained Sora on YouTube videos, it would've been a "clear violation" of the platform's terms of use if they did.

    "From a creator's perspective, when a creator uploads their hard work to our platform, they have certain expectations. One of those expectations is that the terms of service is going to be abided by," Mohan said.

    "It does not allow for things like transcripts or video bits to be downloaded, and that is a clear violation of our terms of service," he continued. "Those are the rules of the road in terms of content on our platform."

    Representatives for Google and OpenAI didn't immediately respond to requests for comment from BI sent outside regular business hours.

    OpenAI's YouTube troubles underscore the challenges faced by data-hungry AI companies trying to train their models. In October, Amazon-backed AI startup Anthropic said that it was using data that it generated itself to train their models.

    And this wouldn't be the only time OpenAI has courted controversy with how it works with content and creators.

    On Monday, actress Scarlett Johansson said she was "shocked" and "angered" after OpenAI's brand new virtual assistant sounded "eerily similar" to hers.

    Johansson said in a statement that she had turned down OpenAI CEO Sam Altman's offer to voice its latest GPT-4o model.

    The model, which was released last week, included several voice options. Many social media users felt that one of voices, named "Sky," sounded like an AI chatbot that Johansson voiced in Spike Jonze's "Her." OpenAI said on Sunday that it was pausing "Sky's" release.

    https://platform.twitter.com/widgets.js

    "We believe that AI voices should not deliberately mimic a celebrity's distinctive voice — Sky's voice is not an imitation of Scarlett Johansson but belongs to a different professional actress using her own natural speaking voice," OpenAI wrote in a blog post on the same day.

    Read the original article on Business Insider
  • Want $150 in monthly passive income? Buy 656 shares of this ASX 200 stock

    A smiling woman puts fuel into her car at a petrol pump.

    Call me eccentric, but I greatly enjoy running my slide rule over S&P/ASX 200 Index (ASX: XJO) stocks to uncover those passive income jewels.

    In this process, I tend to stick to dividend stocks trading on the ASX 200. That’s because there’s usually more readily available information in the larger end of the market. And the bigger companies tend to be less volatile than their smaller peers.

    It’s also worth screening for companies that offer fully franked dividends. This should enable me to hold onto more of that passive income at tax time.

    And I prefer companies with long track records of making two (or more) annual payments, as well as those that have been growing their dividend payouts. This often bodes well for what to expect from their ongoing passive income stream.

    Finally, we need to keep in mind that the yields we’re looking at are trailing yields. Future yields may be higher or lower, depending on a range of company-specific and macroeconomic factors.

    With that said, we move on to the big reveal.

    Pumping $150 a month in passive income from this ASX 200 dividend jewel

    The ASX 200 passive income jewel that’s at the top of my radar today is petroleum refiner and fuel distributor, Ampol Ltd (ASX: ALD).

    Atop its dividend payouts, the Ampol share price has gained 13% over the past year, currently trading for $35.08 a share.

    Although Ampol’s March quarterly update fell short of expectations, this was largely due to temporary refinery outages and disruptions to shipping in the Red Sea, both of which we hope won’t be repeated in the current quarter.

    As for the full 2023 calendar year results, Ampol reported a 2% increase in earnings before interest and tax (EBIT) from 2022 – excluding significant items – to $1.30 billion.

    And total sales volumes in 2023 soared 17% year on year to reach all-time highs of 28.4 billion litres.

    Despite a 25% year on year drop in net profit after tax (NPAT) to $549 million, management declared a record final fully franked dividend of $1.80 a share. Eligible investors will have received that payout on 27 March.

    This 16% increase in Ampol’s passive income is precisely the kind of dividend growth trend I look for, as mentioned up top.

    Ampol shares also delivered a fully franked interim dividend of 95 cents per share on 27 September.

    This sees the ASX 200 dividend jewel paying $2.75 a share over the past 12 months.

    So, to pump $150 a month in passive income (or $1,800 a year) from Ampol shares I’d need to buy 655 shares today.

    The post Want $150 in monthly passive income? Buy 656 shares of this ASX 200 stock appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Ampol Limited right now?

    Before you buy Ampol Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ampol Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Guess which ASX 200 bank stock just hit a 4-year high?

    Man pointing at a blue rising share price graph.

    The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is up another 0.3% following the S&P/ASX 200 Index (ASX: XJO) bank stock‘s update last week.

    Today’s rise brings the gain over the last month to 12%, significantly outperforming the 2.5% gain for the ASX 200 over the same period.

    The last five years have seen significant volatility for the Bendigo Bank share price, as seen on the chart below. Pleasingly, the stock price has just hit a four-year high of $11.04 during late trading on Tuesday. Is the bank entering a new phase of operating strength?

    Investors liked the recent update for the ten months to 30 April 2024, with the Bendigo Bank share price up 10% since the update. The regional bank is scheduled to hold an investor day on 23 May 2024.

    Trading update recap

    Bendigo Bank reported cash earnings after tax of approximately $464 million for the financial year to date, down 2.3% from the previous year.

    The net interest margin (NIM) in the financial year to date, after revenue-sharing arrangements, is 1.87%. Before the revenue share arrangement, the year to date NIM was 2.30%. Pleasingly for shareholders, the NIM in April 2024 was higher than the year to date average, possibly suggesting the FY25 NIM could be better than FY24.

    Bendigo Bank also reported that its credit expenses remain at “low levels” across all its lending portfolios.

    With the update, the Bendigo and Adelaide Bank CEO and managing director Marnie Baker said:

    At our half year results in February we reiterated our commitment to managing the business for long term value. We have continued our focus on disciplined growth and prudent management of our costs.

    Stronger margins led to upgrades

    A number of brokers upgraded their forecasts for the ASX 200 bank stock after seeing that update.

    UBS increased its cash earnings per share (EPS) estimates by 7.6%, 12.1%, and 11.1% for FY24, FY25, and FY26, respectively. This was due to the “notably higher net interest margin outlook.” The broker noted that competitive lending pressures and increasing funding costs continue to be offset by higher earnings on capital and deposits.

    However, ongoing cost inflation and the ASX 200 bank stock’s investment in digitalisation led UBS to increase its operating expenditure expectations for Bendigo Bank.

    How is Bendigo Bank delivering an improving NIM performance when other ASX bank shares are reporting margin compression? UBS said it was “maybe” down to three reasons:

    1) the shorted duration of their capital hedge, 2) liquid asset unwind and 3) higher % of business originated through digital and prop channels. We would need more details on the sustainability of this performance, especially in the context of industry trends, but for now drive some of these changes into our NIM forecasts.

    According to UBS’s numbers, the Bendigo Bank share price is now valued at 13.5x FY24’s estimated earnings.

    Rating on Bendigo Bank shares

    UBS increased its price target on the regional bank from $8 to $8.75, an increase of 9.4%.

    However, the broker still rates the ASX 200 bank stock a sell because it’s trading 25% higher than its price target. Plus, the company is trading at “slightly above long-term historical averages” in terms of the price/earnings (P/E) ratio.

    The post Guess which ASX 200 bank stock just hit a 4-year high? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bendigo And Adelaide Bank Limited right now?

    Before you buy Bendigo And Adelaide Bank Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bendigo And Adelaide Bank Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Buy one, sell the other: Goldman’s verdict on these 2 ASX lithium shares

    Two miners standing together.

    ASX lithium share prices remain volatile this year despite lithium commodity prices stabilising somewhat amid the ongoing surplus supply of lithium for electric vehicle (EV) battery manufacturers.

    The lithium carbonate price began the year at US$13,384 per tonne. Today, it’s fetching US$14,579.48 per tonne, up 8.9% since January. The highest price it has reached this year is US$15,995 per tonne in March.

    What’s happening with lithium prices?

    Trading Economics says the EV industry is still working through battery gluts across the supply chain.

    However, Chinese lithium producers have continued to expand capacity and look for new reserves, which has raised expectations of continuing surplus supplies.

    According to Trading Economics:

    … hopes that the market will eventually balance out drove Chile [to] set plans to double output for the world’s second-largest producer over the next decade.

    Such developments follow cuts in battery prices as EV producers continued to take advantage of high inventories of input materials and finished product from extensive subsidies from Beijing in 2022.

    Top broker Goldman Sachs predicts that lithium prices will not bottom till 2025.

    For example, the broker thinks the carbonate price will average US$11,106 per tonne in 2024, down from an average of US$32,694 in 2023. It tips a further weakening to an average of US$11,000 per tonne in 2025.

    Goldman says lithium prices will turn around in 2026, with the average rising to US$13,323 per tonne and then reaching US$15,646 per tonne in 2027.

    With all of this in the background, Goldman Sachs recommends the following action on these two ASX lithium shares.

    Which ASX lithium share is a buy?

    Goldman has a buy rating on ASX lithium and nickel share IGO Ltd (ASX: IGO) and a 12-month share price target of $8.10.

    The IGO share price is currently $7.87, down 2.11% on Tuesday and down 47.1% over the past 12 months.

    Goldman analyst Hugo Nicolaci said:

    We rate IGO as Buy, where on valuation IGO is trading on 0.95x net asset value (NAV) and pricing ~US$1,100/t spodumene, at a discount to peers (~1.2x NAV and ~US$1,300/t), with near-term FCF yields remaining >5% and attractive vs. peers (<0% on average) and supporting ahead of peer returns.

    The broker noted that IGO’s Greenbushes mine is the lowest-cost lithium asset among the ASX lithium shares it monitors. It says production growth more than offsets the increasing strip ratio.

    IGO owns 49% of Greenbushes and joint venture partner Tianqi Lithium Corp owns 51%.

    The broker said IGO’s nickel business would likely decline without further developments or mergers and acquisitions activity.

    The broker added:

    We expect largely continued growth in net cash, with liquidity stable above the A$1bn threshold for excess capital management payouts from 2H FY25.

    Why is this lithium stock a sell?

    Goldman has a sell rating on ASX lithium junior Core Lithium Ltd (ASX: CXO) with a share price target of 11 cents. The Core Lithium share price is 15 cents, down 1.94% now and down 86% over the past year.

    Nicolaci said the broker rated Core Lithium shares a sell for three main reasons.

    The first is valuation, with Core Lithium looking “relatively expensive” trading at a premium of about 1.1x its NAV and an implied LT spodumene price of about US$1,200 per tonne. This compares to a peer average of about 1.05x NAV and about US$1,250 per tonne.

    The second is ongoing risks to the timing of its production restart and the lesser likelihood of funding its BP33 exploration from cash flow due to weak declining lithium prices.

    Lastly, the broker noted that further exploration activities underway may result in an expanded resource base. However, the development of any discoveries is likely a ways off.

    The post Buy one, sell the other: Goldman’s verdict on these 2 ASX lithium shares appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Core Lithium Ltd right now?

    Before you buy Core Lithium Ltd shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Core Lithium Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Bronwyn Allen has positions in Core Lithium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 2 ASX retail shares just upgraded by brokers (and 1 downgraded)

    ASX retail shares can be some of the hardest stocks on the market to assess as a good investment. The retail sector is notoriously cyclical, and its players have to constantly adapt to changing consumer tastes and preferences.

    As such, only the strongest ASX retail shares tend to be effective compounders of wealth over long periods of time.

    Today, we’ll discuss two ASX retail shares that might just qualify for that label, at least according to one ASX broker. We’ll also cover one stock that this broker is telling investors to avoid.

    ASX broker gives verdict on 3 ASX retail shares

    As reported in The Australian this week, analysts at ASX broker Macquarie are eyeing two ASX retail shares that might stand to benefit from an artificial intelligence (AI)-fuelled “generational upgrade cycle in computer hardware”.

    Macquarie is arguing that household appliances, computers and technology typically have a “5-7 year lifespan”. As such, the COVID boom in this corner of the market should result in an “echo” over the next 18 months or so.

    Macquarie’s Ross Curran told The Australian, “An accelerated 5-year refresh rate on PCs instead of the usual 6-year cycle, along with a 15 per cent increase in price, could see a 34 per cent uplift in category”.

    As such, Curran has upgraded Macquarie’s earnings estimates for the 2025 financial year for JB Hi-Fi Ltd (ASX: JBH), Harvey Norman Holdings Ltd (ASX: HVN) and OfficeWorks owner Wesfarmers Ltd (ASX: WES) by 4.5%, 3.7% and 0.5% respectively.

    Consequently, Curran has lifted Macquarie’s ratings on JB Hi-Fi and Harvey Norman from ‘Neutral’ to ‘Outperform’. This implies investors should consider buying these ASX retail shares at current pricing.

    However, Curran maintained a ‘Neutral’ rating for Wesfarmers, citing concerns over its current high valuation.

    A tale of three retailers

    To be fair, all three ASX retail shares have enjoyed some healthy rises over the past 12 months. At current pricing, Wesfarmers stock is up 33.8% since this time last year, while JB Hi-Fi has risen 26.7% and Harvey Norman, 21.25%.

    Even so, Wesfarmers shares are currently trading on a price-to-earnings (P/E) ratio of 30.8. That looks elevated against JB’s 13.7 and Harvey Norman’s 14.6. Put another way, investors are currently being asked to pay more than double for $1 of earnings from Wesfarmers compared to $1 of earnings from JB or Harvey Norman.

    As such, it’s not difficult to understand why Curran sees Wesfarmers shares as more overvalued than those of JB Hi-Fi or Harvey Norman.

    The post 2 ASX retail shares just upgraded by brokers (and 1 downgraded) appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Harvey Norman Holdings Limited right now?

    Before you buy Harvey Norman Holdings Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Harvey Norman Holdings Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman, Macquarie Group, and Wesfarmers. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Why are Brainchip shares racing higher after its AGM?

    Brainchip Holdings Ltd (ASX: BRN) shares are rebounding on Tuesday.

    In afternoon trade, the struggling semiconductor company’s shares are up 6% to 26.5 cents.

    Why are Brainchip shares rising today?

    Investors have been buying the company’s shares for a couple of reasons.

    One is the release of its annual general meeting (AGM) update this morning. The other is news that the company has managed to avoid a spill of its board at this meeting.

    In respect to its AGM update, Brainchip CEO, Sean Hehir, acknowledged that the company hasn’t delivered meaningful revenue yet, and was disappointed by this, but remains positive on the future. He said:

    Let me acknowledge right up front that our revenue numbers are not there yet. The evaluation and design cycle are longer, deeper, and more complex than we anticipated as customers plan their strategic roadmaps. However, after hearing my prepared remarks, hopefully you too will share my conviction that we are a much stronger and a better positioned company and share my optimism in our near-term and long-term success.

    Licensing deals

    Hehir believes the company is close to getting an answer from some potential customers after being in discussions for over a year. He said:

    First and foremost, I know we need to close license sales. We have several engagements that have been in evaluation for over 1 year that are near closing in on a decision. These engagements are with leading companies in audio, IOT, and microcontroller segments.

    The under pressure CEO has been heavily criticised for his big salary and bonuses and distinct lack of commercial success since joining. However, he remains confident on delivering the goods for shareholders. He adds:

    The board brought me on with a critical mission: to transform a promising technology into a successful product for a challenging market, while establishing the sales and marketing capabilities to drive its adoption.

    We are doing the right things. I know we are on the right trajectory. When I pair all these actions with the emergence of a true edge AI market, I am more confident than ever that we are on the cusp of generating sustainable revenue streams. BrainChip has the momentum in place and potential to emerge as the undisputed leader in the exciting and continuously growing Edge AI market.

    Time will tell if this proves to be the case or if the next 12 months will just be more of the same – all hype and no substance.

    Board spill avoided

    Brainchip shares may also be rising today after the company avoided a disruptive board spill.

    While 33.41% of votes were against its remuneration report, a sizeable 85.59% of votes were against spilling the board.

    The post Why are Brainchip shares racing higher after its AGM? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Brainchip Holdings Limited right now?

    Before you buy Brainchip Holdings Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Brainchip Holdings Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • It’s so tough to pay cash in China that the government had to fine a KFC for not accepting banknotes

    Payment codes of Wechat Pay and Alipay are seen hung on a stall at a vegetable market on November 28, 2021 in Beijing, China.
    Payment codes of Wechat Pay and Alipay are seen hung on a stall at a vegetable market on November 28, 2021 in Beijing, China.

    • China recently fined several businesses, including a KFC, for refusing to accept cash.
    • These are some of the most established companies in China, showing just how quickly cash has fallen from favor there.
    • It's a problem for a China hoping to attract foreign tourists who aren't part of the cashless system.

    China's central bank fined seven businesses last week — including a KFC and branches of state-owned corporations — for rejecting cash payments, all as Beijing pushes to make spending more accessible for foreign tourists.

    The People's Bank of China has meted out such punishments for years. But the employees caught this time worked for some of the country's largest and most established businesses, showing how cashless payments have grown so ubiquitous there.

    The bank said it fined a KFC in Wuxi, Jiangsu, about $4,140 for refusing to take cash from a customer who ordered breakfast.

    The employee responsible was fined about $410. According to the latest government data, the average wage in Wuxi is about $18,000 annually.

    Other fined businesses include branches for state-run conglomerates such as an Inner Mongolia branch of China Post, an office in Gansu for New China Life Insurance, and a Jiangsu office for insurance firm PICC Property and Casualty.

    China has mandated that local businesses leave the door open for cash payments as it tries to attract foreign investment and tourism after the pandemic.

    People in the country already relied heavily on cashless and QR code payments before the pandemic, and the practice accelerated in popularity during the country's lockdown years. By the end of 2023, 86% of all payments in China were made through mobile phones, per state media.

    That's become an issue for outsiders arriving in a newly reopened China, where they struggled to find vendors who would accept cash or even credit cards.

    Hungry for foreign business, China has rushed to bridge the gap. Major payment platforms Alipay and WePay started allowing visitors to link their international bank cards to their Chinese accounts. Single-transaction limits for foreigners were also raised from $1,000 to $5,000.

    This year, Beijing has been telling businesses such as three-star hotels and cab companies to start accepting international credit cards.

    The wider transition has so far been slow — a taxi company in Shanghai, for example, announced in April that it would arrange for 50 taxis to accept foreign credit cards. Travel companies say there are over 50,000 licensed taxis in the city.

    Tourism is a major source of revenue for China, with state-affiliated researchers predicting the sector will bring in about $800 billion in 2024.

    But international arrivals have been lagging. Only about 35 million foreign visitors traveled to China in 2023, or around 30% of pre-pandemic levels.

    China's cashless wave has also prompted concerns for the elderly, with a central bank survey finding that 75% of the country's seniors still use banknotes.

    It's illegal in China to reject cash for purchases, and the central government's crackdown has intensified in the last several years. Regulators have been fining companies such as car dealerships that refuse cash, while state media promotes the paper bill as the "most basic instrument of payment."

    Investor relations for Yum China, which operates KFC in China, did not immediately respond to a request for comment sent by Business Insider.

    Read the original article on Business Insider
  • ASX 200 gold stocks in focus as gold price smashes record highs

    Rising price of gold represented by a share price chart and gold bars.

    S&P/ASX 200 Index (ASX: XJO) gold stocks are back in the spotlight today as the price of the yellow metal again broke into new all-time high territory.

    The gold price reached US$2,449.89 per ounce earlier today. It’s retraced a touch since then, trading for US$2,412.69 per ounce at the time of writing.

    Based on current levels, the gold price has now soared by 22.4% since this time last year, when that same ounce was worth US$1,971.86.

    But the real rally in the gold price, and for ASX 200 gold stocks, kicked off in late February. The yellow metal began to rocket from US$2,034 per ounce on 28 February in a rally that’s seen it gain 18.6% since then.

    That price surge has helped drive the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold miners outside of the ASX 200 – up a whopping 29.8% since 28 February.

    That compares to a 2.4% gain posted by the ASX 200.

    Here’s how these top Aussie gold miners stack up compared to the Gold Index over this same period:

    • Northern Star Resources Ltd (ASX: NST) shares are up 17.4%
    • Newmont Corp (ASX: NEM) shares are up 43.9%
    • De Grey Mining Ltd (ASX: DEG) shares are down 5.3%
    • Ramelius Resources Ltd(ASX: RMS) shares are up 51.4%
    • Gold Road Resources Ltd (ASX: GOR) shares are up 12.7%
    • Evolution Mining Ltd (ASX: EVN) shares are up 39.8%
    • Bellevue Gold Ltd (ASX: BGL) shares are up 38.7%
    • Perseus Mining Ltd (ASX: PRU) shares are up 41.7%

    Impressive, no?

    Now, the majority of the ASX 200 gold stocks are in the red today. That may be partly due to gold’s intraday price decline from the all-time highs.

    And investors may be spooked by new revelations that the RBA came closer than we’d like to think to raising interest rates earlier this month.

    Gold, which pays no yield itself, tends to perform better in low or falling rate environments. Though the yellow metal has proven resilient to the lingering higher rates across most of the developed world this year.

    However, today’s price dip may offer a decent entry point to buy more of these ASX 200 gold stocks if you believe, like I do, that the gold price rally has a way to run yet.

    What’s sending the gold price and ASX 200 gold stocks soaring?

    The gold price and ASX 200 gold stocks have been receiving tailwinds from a number of fronts.

    Those include gold’s haven status in times of geopolitical uncertainty, the prospect of lower global interest rates down the road, and robust central bank buying.

    China’s central bank has had a particularly voracious appetite for bullion in recent years.

    According to the Stanford Institute for Economic Policy Research (cited by Bloomberg), the share of gold in the People’s Bank of China’s total currency reserves has increased from less than 2% in 2015 to 4.3% last year. The nation’s US bond holdings have fallen from 44% to 30% of total currency reserves over that same period.

    Commenting on this trend, Gita Gopinath, deputy managing director of the International Monetary Fund, recently said:

    [This] suggests that gold purchases by some central banks may have been driven by concerns about sanctions risk. This is consistent with a recent IMF study confirming that FX reserve managers tend to increase gold holdings to hedge against economic uncertainty and geopolitical including sanctions risk.

    Regardless of their motivations, central bank buying looks to be helping drive the gold price to a series of new record highs.

    If this trend continues, it should come as good news for shareholders in ASX 200 gold stocks.

    The post ASX 200 gold stocks in focus as gold price smashes record highs appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bellevue Gold Limited right now?

    Before you buy Bellevue Gold Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bellevue Gold Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Guess which ASX 200 co-founder just sold $33 million worth of company shares

    An industrial warehouse manager sits at a desk in a warehouse looking at his computer while the Centuria Industrial share price rises

    There aren’t many S&P/ASX 200 Index (ASX: XJO) stocks that have done as well as Goodman Group (ASX: GMG) in the last year, with a rise of around 70%. Greg Goodman has chosen this point in time to transact a large sale of Goodman shares.

    Greg Goodman is the current CEO and co-founder of the property giant.

    When a member of the leadership team decides to sell shares, it can be a worrying sign. Let’s examine the sale and then consider whether it’s actually concerning.

    Goodman share sale

    Greg Goodman has a beneficial interest in the JSH Family Trust, which is the entity that sold shares.

    This family trust owned 1.95 million Goodman shares before the sale and sold 1 million Goodman shares on 15 May 2024, according to the ASX announcement.

    The sale raised $33.336 million, suggesting the average price per share was approximately $33.34.

    Is this a worrying sign for the ASX 200 stock?

    The last time Greg Goodman sold shares was in mid-September 2023 when he sold around $20 million of shares. Since then, the Goodman share price has gone up around 50%, so the just-announced sale does not mean an impending decline is certain to occur.

    The co-founder still has an enormous amount of wealth tied to the ASX 200 stock. Greg Goodman has an indirect holding of 37.9 million Goodman shares, which is worth around $1.3 billion – he still has a lot of skin in the game.

    Plus, Greg Goodman owns 4.3 million performance rights. He is incentivised to help the business succeed.

    The FY24 third-quarter update showed ongoing success for the business, with expectations for its operating earnings per security (EPS) growth upgraded to 13%.

    Goodman Group’s total portfolio is now worth $80.5 billion, with a $12.9 billion development work in progress (WIP) pipeline. It completed $0.8 billion of developments in the latest quarter, with 96% of year-to-date completions committed (by tenants). Data centres under construction currently represent approximately 40% of WIP.

    The rental performance remains commendable across Goodman’s partnerships, with an 98% occupancy rate and net property income like-for-like growth of 4.9%.

    Goodman share price snapshot

    Since the start of 2024, the ASX 200 stock has risen 36% (as seen on the chart below), compared to a rise of just 3% for the ASX 200.

    The Goodman share price is up 0.5% today amid news of this sale.

    The post Guess which ASX 200 co-founder just sold $33 million worth of company shares appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Goodman Group right now?

    Before you buy Goodman Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Goodman Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.