It’s Thursday the 24th of April and US President Donald Trump starts backtracking on threats, Commonwealth Bank's share price keeps rising and a big defence promise from the Coalition. Plus, the IMF warns the pace of growth of the Australian economy will slow, and Elon Musk says he'll spend more time at Tesla, and less in Washington.

Listen to today's episode 🎧 

News in brief

Donald Trump and his Administration are backing down on onerous tariffs against China, and has softened its language against the Federal Reserve chair, while chief cost-cutter, Elon Musk, will spend more time working at his struggling Tesla company, and less in the White House.

Commonwealth Bank is on a tear. While it was off 2.2 per cent yesterday, it surged 4pc on Tuesday to a new record high. Incredibly, it isn’t far off being the same value as the other three big banks. Westpac, NAB and ANZ combined are worth $300 billion (see our table later in the email for more).

Opposition Leader Peter Dutton says he will fund a proposed $21 billion increase in defence spending through higher income taxes, rather than spending cuts.

The International Monetary Fund has cut its growth forecast for the Australian economy by half a percentage point, blaming a global slowdown from Donald Trump’s trade war. It expects the local economy to expand 1.6 per cent this year.

Elon Musk will dedicate more time to Tesla after a very poor March quarter for the world’s most valuable EV maker. Quarterly income was down 71pc, much worse than analysts forecasts. Tesla’s revenue was down nine per cent.

Fear-o-meter

US President Donald Trump is getting nervous. He isn’t waving the white flag on tariffs, but his outlandish statements around the trade war are becoming more conciliatory.

Money matters in Trump’s world and financial markets have had enough, and the President is responding. In a 12-hour period, Trump or his Administration backed down on onerous tariffs against China, said the Federal Reserve chair wouldn’t be sacked, and Elon Musk confirmed he will spend more time at Tesla, now that his job in Washington is “largely complete.”

There was an almost audible sigh of relief from traders. Making America great again shouldn’t involve a recession but that’s where the US is heading.

Next week Trump will have been in office 100 days. It’s quite possible that the first 100 days in office will be, by some margin, the most controversial period of the new Administration. Let's hope so.

Who's talking today?

Merrick Watts made his name in comedy and radio, one half of the very successful duo Merrick & Rosso. More recently he was the winner of the gruelling TV program SAS Australia. But what a lot of people don't know is that he's also a very astute entrepreneur. Merrick joined Sean Aylmer in the studio for a very frank - and funny - conversation about his journey into business, as the co-founder of energy drink company Posca Hydrate.

Greed-o-meter

This week Commonwealth Bank's share price hit a new record high. While it's dropped back a little now, the difference in market cap between CBA and BHP, the country's second largest company, is staggering - not to mention that fact that Commonwealth Bank is nearly as large as the other three big banks combined.

Can you help us out?

Sean Aylmer and Adam Lang from the Fear & Greed team are taking part in Royal Far West's Ride For Country Kids - a 380km ride through western NSW. The goal is to raise as much money as possible to improve life options for kids from rural communities.

Neither Sean or Adam are cyclists - so this is well outside their comfort zone (although they do seem to be taking to the lycra a little too keenly). 

If you can help raise a few dollars for the Fear & Greed team, it will be gratefully appreciated. You can donate here. And we'll be giving supporters a shout-out on the podcast too!

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