1
00:00:06,200 --> 00:00:10,040
Speaker 1: Today on Fear and Greed, Anthony Albanezi emphatically returns to

2
00:00:10,080 --> 00:00:13,880
Speaker 1: the lodge with housing stimulus, tax cuts and electricity rebates

3
00:00:14,040 --> 00:00:17,840
Speaker 1: high on the agenda. Retail spending growth slows, adding another

4
00:00:17,960 --> 00:00:20,600
Speaker 1: reason for an interest rate cut later this month. And

5
00:00:20,680 --> 00:00:24,640
Speaker 1: Warren Buffett, the greatest investor of his generation, says he

6
00:00:24,720 --> 00:00:27,920
Speaker 1: wants to retire after sixty years at the top. Plus

7
00:00:28,000 --> 00:00:31,760
Speaker 1: Ossie wine export surge and a parking accident sends a

8
00:00:31,840 --> 00:00:36,000
Speaker 1: sixty million US dollar super hornet overboard. Welcome to Fear

9
00:00:36,040 --> 00:00:38,239
Speaker 1: and Greed, daily business news for people who make their

10
00:00:38,240 --> 00:00:41,680
Speaker 1: own decisions. It is Monday, the fifth of May twenty

11
00:00:41,720 --> 00:00:45,120
Speaker 1: twenty five. I'm Michael Thompson and good morning Sean Aylmer.

12
00:00:45,400 --> 00:00:47,479
Speaker 2: Good morning, Michael, Sean.

13
00:00:47,720 --> 00:00:50,160
Speaker 1: What a weekend, What a day, What a week. We've

14
00:00:50,200 --> 00:00:52,360
Speaker 1: got a great show coming up. But a quick mention

15
00:00:52,479 --> 00:00:55,280
Speaker 1: first of the Fear and Greed newsletter, what an addition

16
00:00:55,440 --> 00:00:57,840
Speaker 1: coming out this morning. If you haven't signed up already,

17
00:00:57,840 --> 00:01:00,680
Speaker 1: head along to Fearandgreed dot com dot au, pop your

18
00:01:00,680 --> 00:01:04,360
Speaker 1: email address in and you will get the newsletter every

19
00:01:04,360 --> 00:01:07,040
Speaker 1: morning by six am with just a few of the

20
00:01:07,080 --> 00:01:09,399
Speaker 1: top stories that you need to know. Just so that

21
00:01:09,440 --> 00:01:12,560
Speaker 1: you arrive at work ready for the day, ready to

22
00:01:12,560 --> 00:01:14,800
Speaker 1: get through any conversation. That pretty much sums it up,

23
00:01:14,800 --> 00:01:15,839
Speaker 1: don't you think now.

24
00:01:15,920 --> 00:01:19,080
Speaker 2: I think they get to work one step ahead of

25
00:01:19,120 --> 00:01:20,680
Speaker 2: your colleagues. That's how I put it.

26
00:01:21,080 --> 00:01:24,120
Speaker 1: Oh, I like that nice and competitive, Sean. I'll put

27
00:01:24,160 --> 00:01:26,080
Speaker 1: a link in today's show notes as well, so that

28
00:01:26,120 --> 00:01:29,039
Speaker 1: you can sign up very easily the main story this morning, Sean.

29
00:01:29,319 --> 00:01:32,000
Speaker 1: Of course, there is only one story in town right now.

30
00:01:32,040 --> 00:01:36,000
Speaker 1: In the end, Labour swamps the Coalition in Saturday's election

31
00:01:36,200 --> 00:01:39,880
Speaker 1: and currently have eighty six seats in the new Parliament

32
00:01:39,959 --> 00:01:44,559
Speaker 1: compared to the coalition's forty. There's nine independents, one Green,

33
00:01:45,000 --> 00:01:47,160
Speaker 1: two others, with twelve in doubt.

34
00:01:48,160 --> 00:01:52,360
Speaker 2: Quite a remarkable result. The ALP was confident of victory

35
00:01:52,400 --> 00:01:55,440
Speaker 2: and hopeful of an absolute majority. By the end, they

36
00:01:55,480 --> 00:01:58,520
Speaker 2: probably did enough to ensure that they'll be in term

37
00:01:58,640 --> 00:02:00,360
Speaker 2: for it at least as they'll be in gouvern for

38
00:02:00,400 --> 00:02:03,600
Speaker 2: at least another term. I think this pretty much puts

39
00:02:03,640 --> 00:02:06,640
Speaker 2: Anthony ALBERNIZI in the PM's role if he wants it

40
00:02:07,160 --> 00:02:09,960
Speaker 2: for nine years. He's had three this term and the

41
00:02:10,040 --> 00:02:13,359
Speaker 2: next term. Congratulations to the Prime Minister. Commiserations to Opposition

42
00:02:13,440 --> 00:02:17,320
Speaker 2: leader Peter Dutton should we say former Opposition leader Peter Dunn.

43
00:02:17,400 --> 00:02:20,040
Speaker 2: Obviously he lost his seat of Dixon's. It won't be around.

44
00:02:20,280 --> 00:02:23,520
Speaker 2: Given the large number of independents and the relatively few

45
00:02:23,600 --> 00:02:27,400
Speaker 2: seats held by the coalition, the ALP is suddenly the

46
00:02:27,520 --> 00:02:32,440
Speaker 2: natural party of government in Australia. In the Senate counting continues,

47
00:02:32,800 --> 00:02:35,280
Speaker 2: the ALPN lives a neck and neck, but the Greens

48
00:02:35,320 --> 00:02:38,000
Speaker 2: definitely will hold the balance of power. While the Greens

49
00:02:38,040 --> 00:02:40,560
Speaker 2: went backwards in the Lower House and Adam Band the

50
00:02:40,720 --> 00:02:45,799
Speaker 2: leader may actually lose his seat in Victoria, the Greens

51
00:02:45,840 --> 00:02:48,440
Speaker 2: will gain power in the upper House. The government won't

52
00:02:48,480 --> 00:02:51,880
Speaker 2: have to work with independence like David Pocock and Jackie

53
00:02:52,040 --> 00:02:55,200
Speaker 2: Lamby that it's assuming she wins her spot in the Senate,

54
00:02:55,240 --> 00:02:58,800
Speaker 2: which is looking a bit doubtful at this point. Overall, though,

55
00:02:58,840 --> 00:03:01,040
Speaker 2: the Greens really will all the balance of power and

56
00:03:01,080 --> 00:03:02,560
Speaker 2: Senate all right.

57
00:03:02,639 --> 00:03:06,280
Speaker 1: So obviously the counting continues and the results themselves have

58
00:03:06,360 --> 00:03:09,400
Speaker 1: been fairly well canvas and analyzed over the last kind

59
00:03:09,440 --> 00:03:12,480
Speaker 1: of twenty four hours. What does it mean though, sean

60
00:03:12,560 --> 00:03:14,760
Speaker 1: for business and for markets.

61
00:03:14,919 --> 00:03:18,720
Speaker 2: Well, it ends the uncertainty around policy settings though in

62
00:03:18,840 --> 00:03:21,680
Speaker 2: truth there wasn't that much difference between the two parties.

63
00:03:22,200 --> 00:03:24,960
Speaker 2: Let's think of the big ticket items here, Michael housing.

64
00:03:25,080 --> 00:03:27,560
Speaker 2: So there's the first home buy scheme that's a five

65
00:03:27,680 --> 00:03:31,280
Speaker 2: percent deposit, the's he helped to buy scheme that will

66
00:03:31,360 --> 00:03:34,640
Speaker 2: ramp up. That's where the government buys part of the

67
00:03:34,680 --> 00:03:38,280
Speaker 2: house with the home buyer and then once you sell

68
00:03:38,320 --> 00:03:40,320
Speaker 2: the house, you actually the government gets that money at

69
00:03:40,360 --> 00:03:43,200
Speaker 2: that point. There's the ten billion dollar fund to build

70
00:03:43,240 --> 00:03:46,480
Speaker 2: one hundred thousand homes for first home buyers. That will

71
00:03:46,520 --> 00:03:48,520
Speaker 2: take a while to kick in. That is the best

72
00:03:48,560 --> 00:03:52,120
Speaker 2: of the policies because it's a supply side policy that

73
00:03:52,200 --> 00:03:55,520
Speaker 2: actually actually should help keep a lid on prices, but

74
00:03:55,560 --> 00:03:58,080
Speaker 2: it will take a while to build those homes. Labour's

75
00:03:58,120 --> 00:04:01,920
Speaker 2: already legislated small tax cuts. It will introduce a standard

76
00:04:02,000 --> 00:04:05,840
Speaker 2: one thousand dollars tax deduction, at least promised to do that.

77
00:04:06,440 --> 00:04:10,800
Speaker 2: Electricity bill rebates will continue until December, so to subsidies

78
00:04:10,800 --> 00:04:14,400
Speaker 2: for batteries and electric vehicles, they're likely to continue. The

79
00:04:14,400 --> 00:04:17,360
Speaker 2: budget deficit this year is expected to come in at

80
00:04:17,360 --> 00:04:22,080
Speaker 2: about twenty eight billion dollars. Now, given their assumptions on

81
00:04:22,120 --> 00:04:24,760
Speaker 2: commodity prices, and things like that. It will probably come

82
00:04:24,760 --> 00:04:27,800
Speaker 2: in less than that. It'd be very disappointing if it

83
00:04:27,839 --> 00:04:31,560
Speaker 2: comes in more than that. But all in all, it's

84
00:04:31,680 --> 00:04:37,000
Speaker 2: kind of back to usual, back to normal programming, I think,

85
00:04:37,640 --> 00:04:41,320
Speaker 2: And I suppose markets really they can now turn their

86
00:04:41,320 --> 00:04:43,520
Speaker 2: attention back to Donald Trump and exciting things like that.

87
00:04:44,000 --> 00:04:46,560
Speaker 1: And I suppose politically it also means now that the

88
00:04:46,600 --> 00:04:50,400
Speaker 1: negotiations in terms of tariffs and everything can get back underway.

89
00:04:50,880 --> 00:04:53,120
Speaker 1: The government is no longer in caretaker mode and those

90
00:04:53,120 --> 00:04:54,360
Speaker 1: conversations can resume.

91
00:04:54,720 --> 00:04:56,720
Speaker 2: Yeah, they can wramp that up. I mean, the mandate

92
00:04:56,760 --> 00:05:00,600
Speaker 2: of the ALP government now is huge. It pretty much

93
00:05:00,600 --> 00:05:03,120
Speaker 2: can do what it wants to do as long as

94
00:05:03,160 --> 00:05:05,839
Speaker 2: the Green supported in the Senate. And so there'll be

95
00:05:05,920 --> 00:05:11,040
Speaker 2: things around tariff's and defense and certainly I mean, well

96
00:05:11,080 --> 00:05:14,159
Speaker 2: I suspect that they'll push in there'll be quite a

97
00:05:14,160 --> 00:05:17,040
Speaker 2: bit on wages and the union movement and all that

98
00:05:17,120 --> 00:05:21,240
Speaker 2: this term. So they really do have open season or

99
00:05:21,279 --> 00:05:23,279
Speaker 2: open house on what they want to do. So that'll

100
00:05:23,279 --> 00:05:24,720
Speaker 2: be very interesting, all right.

101
00:05:24,839 --> 00:05:30,120
Speaker 1: On local markets. The ASX two hundred finished Friday at

102
00:05:30,160 --> 00:05:31,120
Speaker 1: a two month high.

103
00:05:31,160 --> 00:05:33,320
Speaker 2: Sean Yeah, look, it closed up more than a percent

104
00:05:33,320 --> 00:05:36,080
Speaker 2: to eight two hundred and thirty eight points, seven games

105
00:05:36,120 --> 00:05:38,440
Speaker 2: in a row or seven days of gains in a row.

106
00:05:38,640 --> 00:05:41,680
Speaker 2: Market back to late February early March levels up more

107
00:05:41,720 --> 00:05:45,960
Speaker 2: than three percent last week, helping all that. Most of

108
00:05:46,040 --> 00:05:48,880
Speaker 2: last week, particularly on Friday, were suggestions that the US

109
00:05:48,920 --> 00:05:52,400
Speaker 2: and China are holding talks over tariff tariffs. It's a

110
00:05:52,440 --> 00:05:55,720
Speaker 2: really big week coming up. Three of the big four banks, Westpac, National,

111
00:05:55,720 --> 00:05:59,440
Speaker 2: Austrading Bank and ain Zed report their March half earnings

112
00:05:59,560 --> 00:06:03,360
Speaker 2: this week. Quarry will deliver its full year result on Friday.

113
00:06:03,440 --> 00:06:06,640
Speaker 2: Now Commonwealth Bank has a different balance sheet date, so

114
00:06:06,680 --> 00:06:10,640
Speaker 2: they December and June. These other guys, September is the

115
00:06:10,680 --> 00:06:12,800
Speaker 2: end of the full year. March is a half year,

116
00:06:12,839 --> 00:06:14,400
Speaker 2: so a big week for the banks.

117
00:06:15,040 --> 00:06:18,279
Speaker 1: You mentioned US China holding talks over tarifs. What else

118
00:06:18,360 --> 00:06:19,719
Speaker 1: is happening in global markets?

119
00:06:19,960 --> 00:06:24,839
Speaker 2: Well, those talks are helping equities across the board, but

120
00:06:24,960 --> 00:06:28,040
Speaker 2: investors really are still worried about what's coming out of

121
00:06:28,040 --> 00:06:31,599
Speaker 2: the White House and the haphazard nature of Donald Trump's commentary.

122
00:06:32,080 --> 00:06:35,160
Speaker 2: So what you find is that people watching markets at

123
00:06:35,160 --> 00:06:38,360
Speaker 2: the moment, no one's really confident that the bounce over

124
00:06:38,360 --> 00:06:41,400
Speaker 2: the last week or so can be sustained then, I mean,

125
00:06:41,440 --> 00:06:42,960
Speaker 2: no one's sort of saying it's going to fall out

126
00:06:42,960 --> 00:06:46,320
Speaker 2: of bed, but they also just don't know whether it

127
00:06:46,320 --> 00:06:50,120
Speaker 2: can keep rising now not helping comments about the US

128
00:06:50,200 --> 00:06:53,720
Speaker 2: federal reserves independence. They're likely to flare again this week

129
00:06:53,720 --> 00:06:56,359
Speaker 2: with a FED due to deliberate on interest rates. I

130
00:06:56,360 --> 00:06:58,800
Speaker 2: think we should maybe have a little competition. So what

131
00:06:58,800 --> 00:07:03,040
Speaker 2: Donald Trump will say about time the numbers oil sixty

132
00:07:03,040 --> 00:07:06,160
Speaker 2: one US dollars a barrel, goals thirty two to forty

133
00:07:06,320 --> 00:07:09,240
Speaker 2: US announce and the Ausie dollar sixty four point three

134
00:07:09,440 --> 00:07:10,400
Speaker 2: US cents.

135
00:07:10,560 --> 00:07:13,080
Speaker 1: Sean A quick mention of today's interview that we've got

136
00:07:13,120 --> 00:07:15,440
Speaker 1: coming up after the show. You were speaking to Matthew

137
00:07:15,520 --> 00:07:18,240
Speaker 1: Kidman from Centennial Asset Management, have a.

138
00:07:18,160 --> 00:07:22,320
Speaker 2: Great chat about investing in the current climate and what

139
00:07:22,400 --> 00:07:25,400
Speaker 2: to do in Australia, but also what to do overseas

140
00:07:25,480 --> 00:07:27,440
Speaker 2: and whether or not it is a good time to

141
00:07:27,480 --> 00:07:31,240
Speaker 2: be investing overseas at the moment. Matthew's a great fella,

142
00:07:31,520 --> 00:07:35,400
Speaker 2: always easy to understand when he's talking about what he

143
00:07:35,560 --> 00:07:39,240
Speaker 2: likes and doesn't like among stocks and trends, and we're

144
00:07:39,280 --> 00:07:39,880
Speaker 2: worth a listen.

145
00:07:39,960 --> 00:07:42,320
Speaker 1: Yeah, absolutely, it's coming up after the show, so stick

146
00:07:42,320 --> 00:07:45,440
Speaker 1: around for that one. We'll take a quick break. We'll

147
00:07:45,440 --> 00:07:46,800
Speaker 1: be back in a moment with the rest of the

148
00:07:46,840 --> 00:07:58,560
Speaker 1: day's business news. Sean auction clearance rates bounced over the weekend,

149
00:07:58,680 --> 00:08:01,360
Speaker 1: with growing hopes of an in straight cut really helping

150
00:08:01,400 --> 00:08:02,400
Speaker 1: buyer's confidence.

151
00:08:02,680 --> 00:08:06,440
Speaker 2: The preliminary clearance rate came in at seventy point one percent. Now,

152
00:08:06,480 --> 00:08:09,800
Speaker 2: that's up a massive five percentage points over the week.

153
00:08:10,280 --> 00:08:13,080
Speaker 2: That's a lot, Michael, and that's according to Cotality, which

154
00:08:13,160 --> 00:08:16,080
Speaker 2: is formerly known as core Logic. Much bigger volumes over

155
00:08:16,120 --> 00:08:19,160
Speaker 2: the last week, higher clearance rates in all capital cities

156
00:08:19,200 --> 00:08:23,960
Speaker 2: except for Adelaide. I think last week's March quarter CPI figures,

157
00:08:24,000 --> 00:08:27,360
Speaker 2: which suggested a rate cup on May twenty, probably help

158
00:08:27,440 --> 00:08:31,480
Speaker 2: things along. Interestingly, Melbourne is leading the way. It has

159
00:08:31,520 --> 00:08:33,640
Speaker 2: been the laggard for a couple of years now, not

160
00:08:33,720 --> 00:08:35,360
Speaker 2: at the moment, in fact, not for all of twenty

161
00:08:35,440 --> 00:08:38,000
Speaker 2: twenty five. Really it's done pretty well that city. Its

162
00:08:38,040 --> 00:08:40,040
Speaker 2: preliminary clear and straight came in at seventy four point

163
00:08:40,080 --> 00:08:42,640
Speaker 2: four percent. Sydney was sixty nine percent, about the same

164
00:08:42,640 --> 00:08:46,040
Speaker 2: as Canberra. Brisbane was fifty percent. Adelaide has totally come

165
00:08:46,040 --> 00:08:48,719
Speaker 2: off the boil it's down to sixty percent. Last year,

166
00:08:48,720 --> 00:08:52,160
Speaker 2: we were talking eighty five percent. That sort of level.

167
00:08:52,320 --> 00:08:53,680
Speaker 2: Adelaid's really come off the boil.

168
00:08:53,840 --> 00:08:57,360
Speaker 1: Yeah, that is a big change. Retail spending rose just

169
00:08:57,640 --> 00:09:00,360
Speaker 1: zero point three percent in the March quarter. That was

170
00:09:00,960 --> 00:09:05,199
Speaker 1: lower than expected, really highlighting perhaps unsurprisingly, the cost of

171
00:09:05,240 --> 00:09:06,880
Speaker 1: living pressure that people are feeling.

172
00:09:07,360 --> 00:09:10,400
Speaker 2: Yeah, so sales of food and supermarkets and grocery stores

173
00:09:10,440 --> 00:09:15,680
Speaker 2: alongside clothing drove the increase, but discretionary spending like takeaway

174
00:09:15,720 --> 00:09:19,480
Speaker 2: food department stores that actually fell back during the March quarter.

175
00:09:20,080 --> 00:09:22,360
Speaker 2: Retail sales of the past year are at one point

176
00:09:22,400 --> 00:09:26,760
Speaker 2: two percent. That's below the rate of population growth. So

177
00:09:26,800 --> 00:09:30,679
Speaker 2: in other words, retail's going backwards. Retail sales accounts for

178
00:09:30,720 --> 00:09:34,640
Speaker 2: about thirty percent of overall growth in the GDP. While

179
00:09:34,640 --> 00:09:38,280
Speaker 2: most economists anticipate a pickup in spending in part thanks

180
00:09:38,280 --> 00:09:42,000
Speaker 2: to lower interest rates, the March quarter growth figure doesn't

181
00:09:42,040 --> 00:09:46,680
Speaker 2: look to be too good. Hence, there in itself is

182
00:09:46,720 --> 00:09:49,320
Speaker 2: a very good reason why the Reserve Bank should think

183
00:09:49,320 --> 00:09:50,559
Speaker 2: about cutting interest rates.

184
00:09:51,280 --> 00:09:53,559
Speaker 1: Australian wine exports I mentioned this at the top of

185
00:09:53,559 --> 00:09:56,280
Speaker 1: the show. Sean they jumped by more than forty percent

186
00:09:56,520 --> 00:09:58,840
Speaker 1: in the year to the end of March as sales

187
00:09:58,840 --> 00:10:04,200
Speaker 1: to China surge following the ending of prohibitive tariffs from Beijing.

188
00:10:04,520 --> 00:10:06,880
Speaker 2: So in the first full year since the tariff, sales

189
00:10:06,920 --> 00:10:10,280
Speaker 2: to mainland China pushed beyond eight billion dollars sorry a

190
00:10:10,320 --> 00:10:15,839
Speaker 2: billion dollars. That's ninety six million liters. That's a lot

191
00:10:15,840 --> 00:10:16,199
Speaker 2: of plock.

192
00:10:16,480 --> 00:10:20,440
Speaker 1: That is a huge amount. That is a massive turnaround.

193
00:10:21,559 --> 00:10:24,120
Speaker 2: So mainland China is back to representing thirty nine percent

194
00:10:24,160 --> 00:10:27,600
Speaker 2: of total export value, but only fifteen percent of volume.

195
00:10:27,960 --> 00:10:31,079
Speaker 2: What's that mean they're buying the good stuff basically. In total,

196
00:10:31,120 --> 00:10:33,480
Speaker 2: Australia exported two point six billion dollars worth of wine

197
00:10:33,559 --> 00:10:36,360
Speaker 2: thanks to that searge and demand from China. Outside China,

198
00:10:36,400 --> 00:10:40,920
Speaker 2: though it actually wasn't very good. Exports fell. They're at

199
00:10:40,920 --> 00:10:44,120
Speaker 2: their lowest volume in about twenty years. While there's a

200
00:10:44,160 --> 00:10:46,400
Speaker 2: drop in sales to Hong Kong, which was expected, there

201
00:10:46,440 --> 00:10:49,000
Speaker 2: was also a low and demand from the UK, from

202
00:10:49,040 --> 00:10:52,760
Speaker 2: the United States, from Canada. So the China story is great,

203
00:10:53,040 --> 00:10:54,560
Speaker 2: but the rest isn't so good.

204
00:10:55,240 --> 00:10:58,160
Speaker 1: Just quickly shown. Some of the country's biggest superannuation funds

205
00:10:58,760 --> 00:11:02,920
Speaker 1: are rethinking their exposure to Wall Street following a flood

206
00:11:02,920 --> 00:11:06,000
Speaker 1: of money into US stocks, particularly the tech companies.

207
00:11:06,080 --> 00:11:09,040
Speaker 2: Last year, Unisuper, which manages one hundred and forty billion

208
00:11:09,040 --> 00:11:12,240
Speaker 2: dollars in funds, is focusing on holding cash and questioning

209
00:11:12,320 --> 00:11:15,200
Speaker 2: its exposure to markets in the US. According to report

210
00:11:15,200 --> 00:11:18,280
Speaker 2: in the finn Review, Chief investment officer of UNI Super,

211
00:11:18,360 --> 00:11:21,360
Speaker 2: John Pierce, said that the US tariff announcements had created

212
00:11:21,440 --> 00:11:24,200
Speaker 2: uncertainty and opened the door to several outcomes. Now, Ozzie

213
00:11:24,240 --> 00:11:26,959
Speaker 2: Super remains heavily exposed to Wall Street and US tech stocks,

214
00:11:26,960 --> 00:11:30,559
Speaker 2: while Aware Super has about half of its assets overseas.

215
00:11:30,760 --> 00:11:33,440
Speaker 2: A wear Super cut its exposure to the Magnificent seven

216
00:11:33,480 --> 00:11:37,320
Speaker 2: tech stocks Apple, Amazon, Meta Alphabet, Microsoft and Video and

217
00:11:37,640 --> 00:11:41,600
Speaker 2: Tesla in the six months to December thirty one. SeaBus

218
00:11:41,760 --> 00:11:45,160
Speaker 2: said it's finding better opportunities outside the magnificent seven. So

219
00:11:45,280 --> 00:11:48,240
Speaker 2: you have three of the really big guys shifting away

220
00:11:48,240 --> 00:11:51,400
Speaker 2: from tech stocks. Always interesting to follow the money, Michael, Yeah.

221
00:11:51,440 --> 00:11:55,839
Speaker 1: Absolutely. Now turning to international news, sean ninety four year

222
00:11:55,880 --> 00:11:59,960
Speaker 1: old Warren Buffett, the so called oracle of Omaha, wants

223
00:12:00,160 --> 00:12:03,160
Speaker 1: to step down from running Berkshire Hathaway, the company he

224
00:12:03,200 --> 00:12:05,680
Speaker 1: took over in nineteen sixty five and has been running

225
00:12:05,800 --> 00:12:09,319
Speaker 1: ever since. This sent some shockwaves through the industry, didn't It?

226
00:12:09,720 --> 00:12:13,679
Speaker 2: Sure did. Warren Buffett said that he would never retire anyway.

227
00:12:13,880 --> 00:12:16,560
Speaker 2: He's changed his mind. He took over the group when

228
00:12:16,559 --> 00:12:19,320
Speaker 2: it was a textiles manufacturer back in nineteen sixty five.

229
00:12:19,360 --> 00:12:22,679
Speaker 2: He turned the company into a conglomerate by finding other

230
00:12:22,720 --> 00:12:25,000
Speaker 2: businesses and stocks to buy that were selling for less

231
00:12:25,000 --> 00:12:28,400
Speaker 2: than they were worth. Berkshire hathway now has about two

232
00:12:28,640 --> 00:12:33,640
Speaker 2: hundred businesses. Buffett told investors at the sixtieth annual shareholder

233
00:12:33,720 --> 00:12:36,920
Speaker 2: meeting in Omaha, Nebraska over the weekend that he went

234
00:12:37,120 --> 00:12:39,439
Speaker 2: a guy called Greg Able to take over at the

235
00:12:39,520 --> 00:12:41,679
Speaker 2: end of the year. Now, he said that, and the

236
00:12:41,760 --> 00:12:44,480
Speaker 2: crowd just immediately started cheering him, not because he was

237
00:12:44,520 --> 00:12:47,320
Speaker 2: going Michael, but because he is really a superstar. He

238
00:12:47,360 --> 00:12:49,840
Speaker 2: hasn't lost at Berkshire Hathaway share price is up twenty

239
00:12:49,840 --> 00:12:52,120
Speaker 2: percent this year, while the S and P five hundred

240
00:12:52,160 --> 00:12:58,479
Speaker 2: has fallen three percent. Since nineteen sixty five, Berkshire Hathaway's

241
00:12:58,640 --> 00:13:05,440
Speaker 2: share price has risen twenty percent annually compound phenomenal, about

242
00:13:05,520 --> 00:13:10,080
Speaker 2: double that of Wall Street generally. Nowadays, one a class

243
00:13:10,080 --> 00:13:13,199
Speaker 2: share in Berkshire Hathaway is worth eight hundred and nine

244
00:13:13,679 --> 00:13:16,320
Speaker 2: eight hundred and eight dollars and fifty cents US. Of

245
00:13:16,400 --> 00:13:21,280
Speaker 2: course quite the I mean, certainly the greatest living investor.

246
00:13:21,960 --> 00:13:24,960
Speaker 1: And apparently I was reading that Greg Abel didn't know

247
00:13:25,200 --> 00:13:28,360
Speaker 1: that he was going to announce this when he first

248
00:13:28,400 --> 00:13:31,560
Speaker 1: started doing it. Can you just imagine the look on

249
00:13:31,640 --> 00:13:34,840
Speaker 1: his face when he suddenly suddenly hears Warren Buffett announced

250
00:13:34,840 --> 00:13:37,319
Speaker 1: that the succession plan that kind of has been kind

251
00:13:37,320 --> 00:13:39,880
Speaker 1: of widely talked about is actually going to be put

252
00:13:39,880 --> 00:13:40,400
Speaker 1: into place.

253
00:13:40,720 --> 00:13:45,080
Speaker 2: Yeah, I wonder what greg Gabel thought be scary taking

254
00:13:45,080 --> 00:13:46,280
Speaker 2: out from Warren buffin.

255
00:13:46,280 --> 00:13:51,000
Speaker 1: Oh, the slightly big shoes to fill suan. Now, how

256
00:13:51,000 --> 00:13:56,080
Speaker 1: about this one? The US Defense Department little red faced,

257
00:13:56,120 --> 00:13:59,920
Speaker 1: I suppose after a parking accident on an aircraft carrier,

258
00:14:00,080 --> 00:14:01,400
Speaker 1: which is not a place that you want to be

259
00:14:01,440 --> 00:14:05,440
Speaker 1: having parking accident resulted in a sixty million US dollar

260
00:14:05,520 --> 00:14:09,000
Speaker 1: Boeing FA Super or the super Hornet, so one of

261
00:14:09,000 --> 00:14:12,079
Speaker 1: their fighter jets just tumbling into the sea.

262
00:14:12,320 --> 00:14:16,439
Speaker 2: It occurred on the USS Harry S. Truman sailors were

263
00:14:16,480 --> 00:14:19,760
Speaker 2: towing the plane into place as they do. Apparently they

264
00:14:19,800 --> 00:14:22,480
Speaker 2: just went a little bit too far and the plane

265
00:14:22,480 --> 00:14:25,560
Speaker 2: and the tow went overboard. Now, crew members in the

266
00:14:25,600 --> 00:14:28,160
Speaker 2: plane and on the toe both jumped out before they

267
00:14:28,240 --> 00:14:31,960
Speaker 2: left the carrier. The quote was the plane was actively

268
00:14:32,120 --> 00:14:35,520
Speaker 2: under tow in a hangar bay when the move crew

269
00:14:35,560 --> 00:14:37,960
Speaker 2: lost control of the aircraft. The aircraft and tow tractor

270
00:14:38,080 --> 00:14:43,040
Speaker 2: was lost overboard. Sixty million dollars for one plane gone.

271
00:14:43,280 --> 00:14:45,360
Speaker 2: The Truman has been deployed to the Middle East for months.

272
00:14:45,400 --> 00:14:49,000
Speaker 2: Recently was involved in the stepped up military operations against

273
00:14:49,040 --> 00:14:53,280
Speaker 2: the Yemen based Whoshy rebels. United States Central Command has

274
00:14:53,320 --> 00:14:57,280
Speaker 2: said the military has conducted daily strikes by fighter jets, bombers,

275
00:14:57,320 --> 00:15:02,520
Speaker 2: ships and drones from the mar Truman. But they're just

276
00:15:02,640 --> 00:15:04,120
Speaker 2: one plane short at the moment.

277
00:15:05,400 --> 00:15:08,360
Speaker 1: It's lying at the bottom of the sea, all right, Sean.

278
00:15:08,520 --> 00:15:11,320
Speaker 1: Up next is Fear and Greed The Week Ahead, featuring

279
00:15:11,320 --> 00:15:15,760
Speaker 1: our resident economist Stephen could coolis plenty to discuss with

280
00:15:15,880 --> 00:15:16,680
Speaker 1: Steven today.

281
00:15:17,200 --> 00:15:19,280
Speaker 2: Yeah, so we don't get too involved in the election

282
00:15:19,480 --> 00:15:22,560
Speaker 2: because it's not really what that's about. But we we

283
00:15:23,120 --> 00:15:26,200
Speaker 2: I mean, Stephen gives his take on what Anthony Alberanezi

284
00:15:26,320 --> 00:15:29,560
Speaker 2: and laybe it needs to do with the economy over

285
00:15:29,600 --> 00:15:32,280
Speaker 2: the next three years or so. Also, plenty of economic

286
00:15:32,360 --> 00:15:33,160
Speaker 2: data up this week.

287
00:15:33,240 --> 00:15:34,960
Speaker 1: Yeah, it's a great chat. And after that, of course,

288
00:15:35,040 --> 00:15:37,160
Speaker 1: is the Fear and Greed Daily Interview with Matthew Kidman

289
00:15:37,200 --> 00:15:40,080
Speaker 1: from Centennial Asset Management. So plenty of good listening coming

290
00:15:40,160 --> 00:15:42,040
Speaker 1: up in the Fear and Greed playlist on your podcast

291
00:15:42,040 --> 00:15:44,600
Speaker 1: platform or at Fearangreed dot com dot au, which is

292
00:15:44,600 --> 00:15:47,440
Speaker 1: where you sign up for that free daily newsletter. Thanks

293
00:15:47,520 --> 00:15:50,120
Speaker 1: very much, Sean, Thank you, Michael. It is Monday, the

294
00:15:50,200 --> 00:15:52,800
Speaker 1: fifth of May twenty twenty five. Make sure you're following

295
00:15:52,800 --> 00:15:55,760
Speaker 1: the podcast and please join us online on LinkedIn, Instagram,

296
00:15:55,920 --> 00:15:58,400
Speaker 1: x TikTok and Facebook. I'm Michael Thompson and that was

297
00:15:58,440 --> 00:16:00,440
Speaker 1: Fear and Greed. Have a great day, No