1 00:00:03,870 --> 00:00:08,969 Michael Thompson: APRA forces Medibank to hold an extra $ 250 million in capital 2 00:00:08,970 --> 00:00:12,059 Michael Thompson: after last year's cyber breach, setting a scary precedent for 3 00:00:12,059 --> 00:00:15,750 Michael Thompson: the industry. Things are booming at KFC as consumers look 4 00:00:15,750 --> 00:00:18,750 Michael Thompson: for value. And there's a labor shortage in the dairy 5 00:00:18,750 --> 00:00:22,800 Michael Thompson: sector, and the laborers are cows. It's Wednesday, the 28th 6 00:00:22,800 --> 00:00:26,400 Michael Thompson: of June, 2023. Welcome to Fear and Greed, Australia's most 7 00:00:26,400 --> 00:00:30,510 Michael Thompson: popular business podcast. I'm Michael Thompson and good morning, Sean Aylmer. 8 00:00:30,809 --> 00:00:34,049 Sean Aylmer: Good morning, Michael. An eclectic mix of stories this morning, 9 00:00:34,049 --> 00:00:36,149 Sean Aylmer: shall we say, from APRA to cows. 10 00:00:36,330 --> 00:00:38,848 Michael Thompson: I'm amazed I got through that without laughing. " The laborers 11 00:00:38,850 --> 00:00:41,040 Michael Thompson: are cows," who comes up with this stuff, Sean? 12 00:00:41,519 --> 00:00:43,348 Sean Aylmer: Who? I don't don't know. I don't know. 13 00:00:44,130 --> 00:00:46,769 Michael Thompson: After the show, you have an interview still on kind 14 00:00:46,769 --> 00:00:50,190 Michael Thompson: of the four- legged kind of theme here. Steve Piek, 15 00:00:50,280 --> 00:00:52,559 Michael Thompson: he only has two legs, but he's the founder and 16 00:00:52,559 --> 00:00:54,360 Michael Thompson: CEO of BTX Racing. 17 00:00:54,750 --> 00:00:58,680 Sean Aylmer: Yes. And racing in this instance refers to thoroughbred racing. 18 00:00:58,740 --> 00:01:03,960 Sean Aylmer: So BTX is using blockchain technology to offer micro shares 19 00:01:03,960 --> 00:01:07,289 Sean Aylmer: in racehorses. So, if you're interested in that, you can 20 00:01:07,289 --> 00:01:11,610 Sean Aylmer: buy into racehorses using this technology. It's a really fascinating 21 00:01:11,760 --> 00:01:13,260 Sean Aylmer: chat. I'm not sure that you're going to make much 22 00:01:13,260 --> 00:01:14,970 Sean Aylmer: money out of it, but could be good fun. 23 00:01:15,300 --> 00:01:17,190 Michael Thompson: Yeah, it's a really good chat. It's worth a listen. 24 00:01:17,190 --> 00:01:19,500 Michael Thompson: It's coming up later on. The main story though this 25 00:01:19,500 --> 00:01:24,209 Michael Thompson: morning, Sean, the insurance regulator has told Medibank to hold 26 00:01:24,209 --> 00:01:30,210 Michael Thompson: an extra $ 250 million in regulatory capital as punishment for 27 00:01:30,330 --> 00:01:32,130 Michael Thompson: last year's massive cyber breach. 28 00:01:32,459 --> 00:01:35,789 Sean Aylmer: The Australian Prudential Regulation Authority said it would force Medibank 29 00:01:35,790 --> 00:01:38,910 Sean Aylmer: to hold the extra money until the company can complete 30 00:01:38,910 --> 00:01:42,000 Sean Aylmer: a more detailed remediation plan, and the regulator will also 31 00:01:42,000 --> 00:01:46,350 Sean Aylmer: conduct a targeted technology review to ensure the company's standards 32 00:01:46,500 --> 00:01:49,650 Sean Aylmer: are up to scratch. Last year, a cyber breach resulted 33 00:01:49,650 --> 00:01:52,710 Sean Aylmer: in medical details of millions of Australians being stolen and 34 00:01:52,710 --> 00:01:56,460 Sean Aylmer: posted online. Shares in the company dropped immediately after the 35 00:01:56,460 --> 00:01:59,279 Sean Aylmer: announcement. Yesterday they finished the day down about 4%, which 36 00:01:59,280 --> 00:02:01,860 Sean Aylmer: was the worst of the top 200. The company is 37 00:02:01,860 --> 00:02:06,270 Sean Aylmer: facing down three class action lawsuits from customers and shareholders 38 00:02:06,450 --> 00:02:09,870 Sean Aylmer: because of the breach. Also, law firm Morris Blackburn has 39 00:02:09,870 --> 00:02:12,299 Sean Aylmer: filed a complaint to the office of the Australian Information 40 00:02:12,300 --> 00:02:15,930 Sean Aylmer: Commissioner, which can force Medibank to compensate affected customers. 41 00:02:16,740 --> 00:02:19,469 Michael Thompson: Sean, I mean this is 250 million dollars is a lot 42 00:02:19,469 --> 00:02:22,590 Michael Thompson: of money. It grabbed me from the start there, but 43 00:02:23,730 --> 00:02:25,860 Michael Thompson: I don't want to be kind of dismissive or anything, 44 00:02:25,860 --> 00:02:28,230 Michael Thompson: but why should we care so much about this story? 45 00:02:30,240 --> 00:02:31,620 Sean Aylmer: Because I told you. No. 46 00:02:33,210 --> 00:02:35,579 Michael Thompson: That's reasonable. I suppose maybe I was a little bit 47 00:02:35,580 --> 00:02:37,110 Michael Thompson: blunt there, but please go on. 48 00:02:38,008 --> 00:02:40,049 Sean Aylmer: Well look, the fact that Medibank has to hold an extra 49 00:02:40,049 --> 00:02:42,930 Sean Aylmer: 250 million dollars in capital means it's less able to 50 00:02:42,959 --> 00:02:46,500 Sean Aylmer: invest as it might like, but it's a big company. 51 00:02:46,500 --> 00:02:48,570 Sean Aylmer: It isn't going to break the bank, so to speak, 52 00:02:48,570 --> 00:02:51,660 Sean Aylmer: or the insurance company in this instance. However, the fact 53 00:02:51,660 --> 00:02:55,709 Sean Aylmer: that APRA imposed the requirement is going to scare the 54 00:02:55,710 --> 00:02:59,429 Sean Aylmer: bejesus out of plenty of other smaller companies in insurance 55 00:02:59,430 --> 00:03:03,720 Sean Aylmer: and banking. APRA has now set a precedent on cyber breaches and 56 00:03:03,720 --> 00:03:07,860 Sean Aylmer: many other companies are just a dodgy email away from 57 00:03:07,860 --> 00:03:12,719 Sean Aylmer: suffering exactly the same experience as Medibank. Many of those 58 00:03:12,719 --> 00:03:16,709 Sean Aylmer: probably wouldn't survive a 250 million dollar capital charge. The 59 00:03:16,709 --> 00:03:20,459 Sean Aylmer: regulator is clearly saying it won't tolerate weaknesses in IT 60 00:03:20,460 --> 00:03:25,530 Sean Aylmer: systems across the board. It's important because everyone in finance 61 00:03:25,530 --> 00:03:29,159 Sean Aylmer: and insurance now knows what the benchmark is. It now 62 00:03:29,160 --> 00:03:33,480 Sean Aylmer: knows how much regulatory capital they may be forced to 63 00:03:33,480 --> 00:03:36,120 Sean Aylmer: hold, and many of them wouldn't be able to afford it. 64 00:03:36,120 --> 00:03:38,400 Michael Thompson: And it might scare the bejesus out of them. 65 00:03:38,970 --> 00:03:40,230 Sean Aylmer: I love that word, bejesus. 66 00:03:40,530 --> 00:03:42,600 Michael Thompson: Oh, it's fantastic, and as I've waited a long time 67 00:03:42,600 --> 00:03:44,849 Michael Thompson: to hear you used it in Fear and Greeds, so thank 68 00:03:44,849 --> 00:03:47,999 Michael Thompson: you for fulfilling that need today, Sean. How did local 69 00:03:48,000 --> 00:03:49,080 Michael Thompson: markets perform yesterday? 70 00:03:49,500 --> 00:03:55,200 Sean Aylmer: The S& P SX 200 closed up 0.6% to 7, 118 points. Some of 71 00:03:55,200 --> 00:03:59,100 Sean Aylmer: the defensive stocks went backwards, notably CSL and Telstra. The 72 00:03:59,100 --> 00:04:01,620 Sean Aylmer: tech sector had a tough day. WiseTech Global was off 73 00:04:01,620 --> 00:04:04,920 Sean Aylmer: more than 1%. REA finished half a percent lower, but 74 00:04:04,920 --> 00:04:07,799 Sean Aylmer: otherwise most large caps ended the day in the black. 75 00:04:07,920 --> 00:04:10,770 Sean Aylmer: Higher iron ore prices helped the big miners with four 76 00:04:10,770 --> 00:04:15,030 Sean Aylmer: to skew up nearly 3%. Rio up 1.7%, and BHP 1. 5% 77 00:04:15,540 --> 00:04:19,001 Sean Aylmer: stronger. Westpac led the banks jumping nearly 2% while (inaudible) 78 00:04:19,001 --> 00:04:21,719 Sean Aylmer: wasn't that far behind. National Australia Bank and Macquarie 79 00:04:21,719 --> 00:04:24,870 Sean Aylmer: both ended more than 1% higher. Gold Dig and Newcrest 80 00:04:24,870 --> 00:04:28,529 Sean Aylmer: Mining and QB Insurance also did pretty well. And Michael, 81 00:04:28,529 --> 00:04:30,419 Sean Aylmer: it was a good day for real estate stocks, and 82 00:04:30,420 --> 00:04:32,040 Sean Aylmer: it's been a while since I've been able to say 83 00:04:32,040 --> 00:04:34,799 Sean Aylmer: that. The sector itself was up more than 2% with 84 00:04:34,800 --> 00:04:37,950 Sean Aylmer: some of the better performers, including Center Group, which raised 85 00:04:37,950 --> 00:04:41,459 Sean Aylmer: 4%. Others that did pretty well were Abacus, Charter, Hall 86 00:04:41,460 --> 00:04:45,209 Sean Aylmer: and Murvac. It follows news over the past fortnight that 87 00:04:45,210 --> 00:04:48,629 Sean Aylmer: New South Wales Premier, Chris Mins has offered property developers 88 00:04:48,629 --> 00:04:52,830 Sean Aylmer: an extra 30% height on apartment buildings worth more than 89 00:04:52,830 --> 00:04:56,520 Sean Aylmer: 75 million dollars. That's enormous. The condition is that they 90 00:04:56,520 --> 00:05:01,710 Sean Aylmer: subsidize 15% of the homes all about affordable housing. Also, 91 00:05:01,710 --> 00:05:05,279 Sean Aylmer: the developments need to be within 800 meters of transport 92 00:05:05,279 --> 00:05:08,610 Sean Aylmer: hubs as this news has filtered out, some of the 93 00:05:08,610 --> 00:05:10,890 Sean Aylmer: real estate investment trusts have done pretty well. 94 00:05:10,890 --> 00:05:14,760 Michael Thompson: That is interesting. What about international markets? What's going on? 95 00:05:15,450 --> 00:05:18,539 Sean Aylmer: Trading on Wall Street remains fairly mixed at the moment. 96 00:05:18,599 --> 00:05:21,479 Sean Aylmer: It's pretty much all about the prevailing view that the 97 00:05:21,480 --> 00:05:24,870 Sean Aylmer: world's largest economy is heading towards a recession and interest 98 00:05:24,870 --> 00:05:27,089 Sean Aylmer: rate cuts, which had been penciled in for later this 99 00:05:27,089 --> 00:05:30,990 Sean Aylmer: year, are now not likely until 2024. That's putting downward 100 00:05:30,990 --> 00:05:33,719 Sean Aylmer: pressure on the boss. Oil is up a bit after 101 00:05:33,719 --> 00:05:37,829 Sean Aylmer: fears of more turmoil in Russia subsided. Gold is steady, 102 00:05:37,830 --> 00:05:41,010 Sean Aylmer: as is coal. Iron ore prices are higher. I mentioned 103 00:05:41,010 --> 00:05:43,320 Sean Aylmer: that. That's after a Chinese official said that growth had 104 00:05:43,320 --> 00:05:45,750 Sean Aylmer: picked up this quarter and more stimulus is on the 105 00:05:45,750 --> 00:05:48,270 Sean Aylmer: cards. And Michael, the Aussie dollar is buying just over 106 00:05:48,270 --> 00:05:49,770 Sean Aylmer: 67 US cents. 107 00:05:50,460 --> 00:05:53,910 Michael Thompson: Yeah, very big day in the US. Sean, there's a 108 00:05:53,910 --> 00:05:55,079 Michael Thompson: book launching over there. 109 00:05:55,079 --> 00:05:56,039 Sean Aylmer: Is there really? 110 00:05:56,040 --> 00:05:58,350 Michael Thompson: In just a few hours? Yes. 111 00:05:58,410 --> 00:06:02,790 Sean Aylmer: No. Surely what a new unfounded author? 112 00:06:03,570 --> 00:06:06,900 Michael Thompson: They might be heading towards a recession, Sean, but I'll 113 00:06:06,900 --> 00:06:10,498 Michael Thompson: tell you what, literary markets are a buzz with excitement. 114 00:06:11,279 --> 00:06:12,928 Michael Thompson: I might be overstating a little bit, but How To 115 00:06:12,928 --> 00:06:17,430 Michael Thompson: Be Remembered goes on sale officially kind of overnight in 116 00:06:17,430 --> 00:06:19,529 Michael Thompson: the US. And there'll be a launch held in just 117 00:06:19,529 --> 00:06:21,900 Michael Thompson: a couple of hours, so it's all very exciting. 118 00:06:22,080 --> 00:06:25,590 Sean Aylmer: Ah, very exciting, Michael. It's such an incredible achievement. Well done. 119 00:06:26,190 --> 00:06:28,320 Michael Thompson: And that is the first and last time you'll ever 120 00:06:28,320 --> 00:06:30,450 Michael Thompson: hear me mention it on this podcast, Sean. 121 00:06:30,570 --> 00:06:31,888 Sean Aylmer: Can I just tell you, I want to boast about 122 00:06:31,889 --> 00:06:34,948 Sean Aylmer: something too. I've got that smug grin this morning. That 123 00:06:34,949 --> 00:06:36,900 Sean Aylmer: one gets when they go to the dentist. 124 00:06:37,470 --> 00:06:40,080 Michael Thompson: Can I say you're looking particularly shiny in the mouth today? 125 00:06:40,380 --> 00:06:43,380 Sean Aylmer: Yeah. Yeah, I am. Well, they cleaned my teeth. No 126 00:06:43,380 --> 00:06:45,750 Sean Aylmer: problems, no fillings, and you walk out knowing that you 127 00:06:45,750 --> 00:06:47,969 Sean Aylmer: don't have to go back in for another 12 months. 128 00:06:48,120 --> 00:06:49,529 Sean Aylmer: Feeling pretty good about myself, Michael. 129 00:06:49,740 --> 00:06:51,000 Michael Thompson: Do you have any feelings? 130 00:06:51,509 --> 00:06:54,479 Sean Aylmer: Oh, I do. From years ago. Not, yeah, why? 131 00:06:54,990 --> 00:06:57,600 Michael Thompson: That's impressive though, to be heading to the dentist at 132 00:06:57,600 --> 00:07:03,299 Michael Thompson: your age and not needing any work done. 133 00:07:03,630 --> 00:07:05,010 Sean Aylmer: I can't... We got to go to break, please. 134 00:07:05,370 --> 00:07:08,488 Michael Thompson: It was intended as a compliment, Sean. We'll be back 135 00:07:08,490 --> 00:07:10,230 Michael Thompson: in a moment with the rest of the day's business 136 00:07:10,230 --> 00:07:20,580 Michael Thompson: news. Sean, BHP Chief Executive Mike Henry says, " The mining 137 00:07:20,580 --> 00:07:24,090 Michael Thompson: group will not be investing any further growth dollars in 138 00:07:24,090 --> 00:07:28,020 Michael Thompson: Queensland after the state's increase in coal royalties." Saying the 139 00:07:28,020 --> 00:07:31,920 Michael Thompson: changes were unpredictable and unreasonable. That is a big whack. 140 00:07:32,460 --> 00:07:35,820 Sean Aylmer: Not happy, Anastasia. In a speech to the World Mining 141 00:07:35,820 --> 00:07:39,480 Sean Aylmer: Congress in Brisbane, Mr. Henry spoke about Chile where the 142 00:07:39,480 --> 00:07:42,899 Sean Aylmer: government has attempted to increase royalties on copper production, but 143 00:07:43,200 --> 00:07:46,679 Sean Aylmer: is willing to enter into respectful discussions and strike a 144 00:07:46,680 --> 00:07:50,190 Sean Aylmer: balance. That's according to Mr. Henry. Now Queensland Premier Anastasia 145 00:07:50,190 --> 00:07:53,460 Sean Aylmer: Palaszczuk seemed fairly unfazed about it. She was announcing the 146 00:07:53,460 --> 00:07:56,670 Sean Aylmer: state's critical mineral strategy yesterday. She shrugged off the threats 147 00:07:56,670 --> 00:07:59,759 Sean Aylmer: from BHP saying, " There are plenty of other investors In 148 00:07:59,759 --> 00:08:03,329 Sean Aylmer: Queensland." Henry was more positive about the federal government's critical 149 00:08:03,330 --> 00:08:06,539 Sean Aylmer: minerals strategy. He backed the approach saying there was no 150 00:08:06,540 --> 00:08:09,210 Sean Aylmer: need for additional subsidies for the sector. 151 00:08:09,660 --> 00:08:13,920 Michael Thompson: Opposition leader Peter Dutton says, the Albanese government 110 million 152 00:08:13,920 --> 00:08:17,580 Michael Thompson: dollar support package for Ukraine is depriving it of the 153 00:08:17,580 --> 00:08:21,209 Michael Thompson: military equipment it needs to resist Russia's illegal invasion. 154 00:08:21,660 --> 00:08:25,410 Sean Aylmer: Dutton said, " The Albanese government could provide Ukraine with Hawkeye 155 00:08:25,410 --> 00:08:29,490 Sean Aylmer: mobility vehicles and also increase the manufacturing of those vehicles 156 00:08:29,490 --> 00:08:32,760 Sean Aylmer: in Australia." That would provide significant benefits in the fight 157 00:08:32,760 --> 00:08:36,540 Sean Aylmer: against Russia. He said, " The government's package announced earlier in 158 00:08:36,540 --> 00:08:40,319 Sean Aylmer: the week didn't include Hawkeye vehicles even though Ukraine had 159 00:08:40,320 --> 00:08:43,380 Sean Aylmer: specifically asked for them." Defense minister Richard Miles from buff 160 00:08:43,380 --> 00:08:47,189 Sean Aylmer: criticism of the package saying it's the fourth assistance program 161 00:08:47,190 --> 00:08:50,099 Sean Aylmer: from the labor government. And Ukraine and other European nations 162 00:08:50,099 --> 00:08:53,310 Sean Aylmer: understand that Australia is punching above its weight in respect 163 00:08:53,520 --> 00:08:54,600 Sean Aylmer: to the assistance. 164 00:08:54,870 --> 00:08:57,419 Michael Thompson: Sean, this is interesting. One area of the economy where 165 00:08:57,420 --> 00:09:01,050 Michael Thompson: the cost of living pressures haven't yet bitten. Well, not 166 00:09:01,080 --> 00:09:04,230 Michael Thompson: I suppose too hard, is travel. With Qantas saying it 167 00:09:04,230 --> 00:09:07,110 Michael Thompson: doesn't think the consumer slowdown will affect earnings. 168 00:09:07,470 --> 00:09:11,218 Sean Aylmer: The National Carrier yesterday said its domestic capacity is back 169 00:09:11,219 --> 00:09:14,939 Sean Aylmer: to pre- pandemic levels, and it's added 11 international routes 170 00:09:14,940 --> 00:09:18,718 Sean Aylmer: to meet demand since mid- May. This school holiday period, 171 00:09:18,869 --> 00:09:23,130 Sean Aylmer: Qantas expects to carry 4 million passengers. Pretty amazing. The 172 00:09:23,130 --> 00:09:26,338 Sean Aylmer: top domestic leisure destinations include the Gold Coast in Cairns. 173 00:09:26,340 --> 00:09:29,490 Sean Aylmer: Not surprising given the weather. While new international routes include 174 00:09:29,550 --> 00:09:33,270 Sean Aylmer: Sydney, Auckland, New York, and Perth, Rome. Qantas said it's 175 00:09:33,270 --> 00:09:36,330 Sean Aylmer: taken delivery of six new aircrafts since January, including its 176 00:09:36,389 --> 00:09:39,960 Sean Aylmer: eighth airbus, A320 near long range aircraft. The ninth is 177 00:09:39,960 --> 00:09:42,510 Sean Aylmer: due next month. Michael, something I'm sure you'll look forward to. 178 00:09:42,840 --> 00:09:46,440 Michael Thompson: Oh, very excited by any aircraft story, Sean. At Collins 179 00:09:46,440 --> 00:09:52,350 Michael Thompson: Foods owner of 272 KFC fast food restaurants says, " Persistent inflation 180 00:09:52,350 --> 00:09:55,679 Michael Thompson: is putting its profit margins under pressure, but same store 181 00:09:55,679 --> 00:09:59,010 Michael Thompson: sales growth has surged in recent weeks and that sent 182 00:09:59,010 --> 00:10:00,570 Michael Thompson: its share price up 18%." 183 00:10:00,929 --> 00:10:04,259 Sean Aylmer: Yes. Now the cost of running KFC outlets is rising, 184 00:10:04,260 --> 00:10:06,899 Sean Aylmer: thanks to increased wages, energy prices, and the cost of 185 00:10:06,900 --> 00:10:09,660 Sean Aylmer: ingredients. As a result, the group said profit for the 186 00:10:09,660 --> 00:10:12,870 Sean Aylmer: 12 months to the end of April was down 77%. 187 00:10:13,170 --> 00:10:16,620 Sean Aylmer: Not hoping was a 37 million dollar impairment related to 188 00:10:16,620 --> 00:10:20,189 Sean Aylmer: its 28 Taco Bell outlets in Australia, which really aren't 189 00:10:20,190 --> 00:10:23,249 Sean Aylmer: doing so well. Now, Chief Executive Joy O'Malley said, households 190 00:10:23,250 --> 00:10:27,179 Sean Aylmer: were recognizing the good value the brand offered. And in 191 00:10:27,179 --> 00:10:30,598 Sean Aylmer: the last seven weeks, sales across the same stores have 192 00:10:30,600 --> 00:10:33,780 Sean Aylmer: jumped by nearly 9%. That's why the share price took 193 00:10:33,780 --> 00:10:37,530 Sean Aylmer: off yesterday. The group also operates 48 KFC outlets in the 194 00:10:37,530 --> 00:10:41,460 Sean Aylmer: Netherlands and 16 in Germany. The local Taco Bell outlets, 195 00:10:41,460 --> 00:10:43,830 Sean Aylmer: 15 of which are in Queensland, nine in Victoria and 196 00:10:43,830 --> 00:10:46,829 Sean Aylmer: four in Western Australia, made an overall loss of one 197 00:10:46,830 --> 00:10:49,770 Sean Aylmer: and a half million dollars last year. Clearly, we love 198 00:10:49,770 --> 00:10:51,810 Sean Aylmer: the chicken, not so much the taco. 199 00:10:52,170 --> 00:10:53,941 Michael Thompson: Oh, you changed pronunciation, there at the instant. 200 00:10:53,941 --> 00:10:53,942 Sean Aylmer: I did. 201 00:10:53,942 --> 00:10:56,760 Michael Thompson: That is what I love about you, is the fact 202 00:10:56,760 --> 00:11:01,078 Michael Thompson: that we have ridiculed you mercilessly in the past for 203 00:11:01,080 --> 00:11:02,790 Michael Thompson: saying taco instead of taco. 204 00:11:03,210 --> 00:11:05,190 Sean Aylmer: I was just impressed that you were so kind of 205 00:11:05,490 --> 00:11:08,310 Sean Aylmer: confident in yourself that you would continue to mispronounce it, 206 00:11:10,800 --> 00:11:12,270 Sean Aylmer: or ignorant one or the other. 207 00:11:12,360 --> 00:11:17,429 Michael Thompson: No, no, no, no. It's confidence. Now, Sean, the story that nearly 208 00:11:17,429 --> 00:11:19,259 Michael Thompson: made me lose it at the start of the show, 209 00:11:19,259 --> 00:11:22,500 Michael Thompson: there's a labor shortage in the dairy industry in Australia. 210 00:11:22,500 --> 00:11:26,160 Michael Thompson: And by labor, I mean not enough cows to supply 211 00:11:26,160 --> 00:11:28,770 Michael Thompson: milk, and that's what's pushing up prices. 212 00:11:29,160 --> 00:11:31,620 Sean Aylmer: Yes, there's been a 9% drop in the volume of 213 00:11:31,620 --> 00:11:34,439 Sean Aylmer: milk being produced by dairy farmers in Australia over the 214 00:11:34,440 --> 00:11:38,489 Sean Aylmer: past two years. There are about 700 million liters. And 215 00:11:38,490 --> 00:11:41,129 Sean Aylmer: there's plenty of competition for the milk, including private label 216 00:11:41,129 --> 00:11:44,910 Sean Aylmer: companies like Woolworths and Coles. Also, input costs are rising. 217 00:11:44,910 --> 00:11:47,610 Sean Aylmer: Bottom line for most of us is that milk prices 218 00:11:48,000 --> 00:11:50,939 Sean Aylmer: are likely to rise. In fact, this is happening as 219 00:11:51,030 --> 00:11:54,780 Sean Aylmer: global milk prices are actually falling. Barry Irvin, the Executive 220 00:11:54,780 --> 00:11:57,839 Sean Aylmer: Chair of Bega Cheese, which owns the dairy farmers Big 221 00:11:57,839 --> 00:12:00,809 Sean Aylmer: M and Farmers Union Milk Brands, as well as Vegemite, 222 00:12:00,809 --> 00:12:03,150 Sean Aylmer: I might just add that, said, as a result of 223 00:12:03,150 --> 00:12:05,819 Sean Aylmer: price pressures, the group is reviewing some of its operations 224 00:12:05,820 --> 00:12:09,179 Sean Aylmer: in country Victoria. Michael, it isn't just the cows in 225 00:12:09,179 --> 00:12:11,939 Sean Aylmer: short supply. There's also a shortage of people to milk 226 00:12:11,940 --> 00:12:13,920 Sean Aylmer: them according to Irvin. There you go. 227 00:12:14,730 --> 00:12:18,240 Michael Thompson: Uber, Sean, has promoted two Australians, putting them in charge 228 00:12:18,240 --> 00:12:21,000 Michael Thompson: of two and a half billion dollars in global advertising 229 00:12:21,000 --> 00:12:23,430 Michael Thompson: and marketing spending after their local success. 230 00:12:23,760 --> 00:12:26,340 Sean Aylmer: So Georgie Jeffries has been given the reigns of marketing 231 00:12:26,340 --> 00:12:28,770 Sean Aylmer: in the United States in Canada, which is easily Uber's 232 00:12:29,010 --> 00:12:32,729 Sean Aylmer: largest single market. Lucinda Barlow, who was leading Uber in 233 00:12:32,730 --> 00:12:35,429 Sean Aylmer: Asia Civic has been put in charge of international marketing 234 00:12:35,429 --> 00:12:38,098 Sean Aylmer: in the more than 60 countries that aren't the US 235 00:12:38,160 --> 00:12:41,250 Sean Aylmer: and Canada, according to report in the financial review. The 236 00:12:41,250 --> 00:12:44,280 Sean Aylmer: rise of Australians in the ranks of Uber reflects the 237 00:12:44,280 --> 00:12:48,570 Sean Aylmer: success of the Uber campaign here, a campaign that has helped 238 00:12:48,570 --> 00:12:52,499 Sean Aylmer: Uber take a 55% market share in Australia's online food 239 00:12:52,500 --> 00:12:55,350 Sean Aylmer: ordering sector. I got to say, I love those ads. 240 00:12:55,679 --> 00:12:59,100 Sean Aylmer: The Kardashians, Mark for the (inaudible) , where he goes, 241 00:12:59,340 --> 00:13:02,189 Sean Aylmer: do you think anyone can change their nickname? Can Uber 242 00:13:02,190 --> 00:13:05,069 Sean Aylmer: change your nickname? And the guy says, " Yeah, yeah, I 243 00:13:05,070 --> 00:13:06,809 Sean Aylmer: think so." Then someone walks past me and goes hi, 244 00:13:06,809 --> 00:13:11,340 Sean Aylmer: Poo. Yeah, they're just great ads. Anyway, they've done very 245 00:13:11,340 --> 00:13:14,010 Sean Aylmer: well. Uber spent about two and a half billion dollars 246 00:13:14,010 --> 00:13:16,590 Sean Aylmer: on advertising in the past two years, globally, two and 247 00:13:16,590 --> 00:13:20,940 Sean Aylmer: a half billion dollars. Another 3. 3 billion dollars on 248 00:13:21,059 --> 00:13:24,719 Sean Aylmer: discounts, promotions on loyalty programs. The success in Australia means 249 00:13:24,719 --> 00:13:27,299 Sean Aylmer: a couple of Aussies have done very well and been promoted. 250 00:13:27,809 --> 00:13:30,328 Michael Thompson: Did you see? I can't engage with you anymore now 251 00:13:30,330 --> 00:13:32,429 Michael Thompson: on anything except for business news. I'm just trying to 252 00:13:32,429 --> 00:13:35,550 Michael Thompson: keep us on track. I'm watching the clock here, Sean, 253 00:13:35,550 --> 00:13:37,470 Michael Thompson: and I'm mindful of the fact that the clock is 254 00:13:37,470 --> 00:13:37,861 Michael Thompson: ticking, so. 255 00:13:37,861 --> 00:13:38,101 Sean Aylmer: Okay, let's keep going. 256 00:13:39,450 --> 00:13:43,319 Michael Thompson: International news, President Joe Biden said that the US and 257 00:13:43,320 --> 00:13:46,650 Michael Thompson: NATO played no role in the Wagner group's short- lived 258 00:13:46,650 --> 00:13:50,280 Michael Thompson: insurrection in Russia, calling the uprising and the longer term 259 00:13:50,280 --> 00:13:55,080 Michael Thompson: challenges opposes for President Vladimir Putin's authority, a struggle within 260 00:13:55,080 --> 00:13:56,040 Michael Thompson: the Russian system. 261 00:13:56,550 --> 00:14:00,059 Sean Aylmer: Biden and US ally supporting Ukraine want to be seen 262 00:14:00,059 --> 00:14:03,149 Sean Aylmer: a long way away from the mercenaries insurgency, which is 263 00:14:03,150 --> 00:14:05,369 Sean Aylmer: the biggest threat to Putin in his two decades leading 264 00:14:05,369 --> 00:14:08,640 Sean Aylmer: Russia. They're concerned that Putin could use accusations of Western 265 00:14:08,640 --> 00:14:12,360 Sean Aylmer: involvement to rally Russians to his defense. Meanwhile, Putin appeared 266 00:14:12,360 --> 00:14:15,900 Sean Aylmer: on TV yesterday morning in his first public comments since 267 00:14:15,900 --> 00:14:19,500 Sean Aylmer: the rebellion. He said, Russia's enemies had hoped the Mutiny 268 00:14:19,500 --> 00:14:24,570 Sean Aylmer: would succeed in dividing and weakening Russia, but they miscalculated 269 00:14:24,570 --> 00:14:27,330 Sean Aylmer: is what he said. He identified the enemies as the neo- 270 00:14:27,330 --> 00:14:31,740 Sean Aylmer: Nazis in Kyiv, their Western patrons and other national traders. 271 00:14:31,740 --> 00:14:35,550 Sean Aylmer: He also accused the Wagner group leaders of betraying their country. 272 00:14:35,880 --> 00:14:39,270 Michael Thompson: Sean, China is on course to achieve its 5% target 273 00:14:39,270 --> 00:14:42,540 Michael Thompson: for economic growth in 2023 set by Beijing earlier this 274 00:14:42,540 --> 00:14:46,650 Michael Thompson: year. According to Premier Lee Kwang, who also slammed Western 275 00:14:46,650 --> 00:14:49,140 Michael Thompson: efforts to de- risk the global economy. 276 00:14:49,560 --> 00:14:52,559 Sean Aylmer: Lee addressed a meeting of global political and business leaders 277 00:14:52,559 --> 00:14:56,550 Sean Aylmer: at the World Economic Forum in Northern China, known colloquially 278 00:14:56,610 --> 00:14:59,939 Sean Aylmer: as the summer Davos. The event returned after a three 279 00:14:59,940 --> 00:15:03,210 Sean Aylmer: year hiatus caused by the Covid pandemic. Now, China's grappling 280 00:15:03,210 --> 00:15:06,120 Sean Aylmer: with a slowing post Covid recovery with a number of 281 00:15:06,120 --> 00:15:09,630 Sean Aylmer: lackluster indicators in recent weeks signaling the rebound is running 282 00:15:09,630 --> 00:15:12,540 Sean Aylmer: out of steam. Its Central Bank last week cut key 283 00:15:12,540 --> 00:15:15,239 Sean Aylmer: interest rates in a bid to counter the slowdown. There 284 00:15:15,240 --> 00:15:18,209 Sean Aylmer: are also reports of a potential upcoming tranche of measures 285 00:15:18,209 --> 00:15:22,020 Sean Aylmer: targeting multiple areas of the economy, but the Chinese Premier yesterday 286 00:15:22,020 --> 00:15:25,560 Sean Aylmer: projected a positive outlook for the domestic economy, reassuring investors 287 00:15:25,560 --> 00:15:29,820 Sean Aylmer: that China was fully confident and capable of developing stable 288 00:15:29,820 --> 00:15:32,400 Sean Aylmer: high quality growth over the longer term. He added that 289 00:15:32,400 --> 00:15:35,669 Sean Aylmer: the nation would roll out more practical and effective measures 290 00:15:35,670 --> 00:15:40,260 Sean Aylmer: on expanding domestic demand and stimulating market dynamism. He also 291 00:15:40,260 --> 00:15:43,170 Sean Aylmer: slammed efforts in the West to de- risk the global 292 00:15:43,170 --> 00:15:45,119 Sean Aylmer: economy as a false proposition. 293 00:15:45,480 --> 00:15:47,790 Michael Thompson: All right. Last one, Sean. A fairly serious story to 294 00:15:47,790 --> 00:15:51,360 Michael Thompson: finish on today. Malaria has spread from mosquitoes to humans 295 00:15:51,360 --> 00:15:54,870 Michael Thompson: inside the US for the first time in 20 years. 296 00:15:55,110 --> 00:15:58,380 Sean Aylmer: The Centers for Disease Control and Prevention said four cases 297 00:15:58,410 --> 00:16:02,370 Sean Aylmer: of mosquito transmitted malaria were reported in Florida within the 298 00:16:02,370 --> 00:16:04,979 Sean Aylmer: last two months, and a single case was also found 299 00:16:04,980 --> 00:16:08,579 Sean Aylmer: in Texas. All patients are okay. They're improving after receiving 300 00:16:08,580 --> 00:16:13,020 Sean Aylmer: treatment. The CDC said that anopheles mosquitoes, which are found 301 00:16:13,020 --> 00:16:16,680 Sean Aylmer: throughout many regions of the country, are capable of transmitting 302 00:16:16,680 --> 00:16:20,429 Sean Aylmer: malaria if they feed on a malaria infected person. However, 303 00:16:20,429 --> 00:16:22,650 Sean Aylmer: it stressed the risk of catching malaria in the US 304 00:16:22,650 --> 00:16:26,880 Sean Aylmer: remains extremely low. Before Covid, some 2000 malaria cases were 305 00:16:26,880 --> 00:16:29,430 Sean Aylmer: reported in the US each year. Almost all of them 306 00:16:29,430 --> 00:16:33,900 Sean Aylmer: coming from travelers who had visited malarial countries, infections led 307 00:16:33,900 --> 00:16:35,880 Sean Aylmer: to between five and 10 deaths annually. 308 00:16:36,210 --> 00:16:38,940 Michael Thompson: Okay. Up next is the Fear and Greed Daily interview, 309 00:16:38,940 --> 00:16:42,299 Michael Thompson: and today you're speaking with Steve Piek, the founder and 310 00:16:42,300 --> 00:16:43,890 Michael Thompson: CEO of BTX racing. 311 00:16:44,220 --> 00:16:48,000 Sean Aylmer: Yeah. It's all about using blockchain technology to create a system where you 312 00:16:48,000 --> 00:16:51,600 Sean Aylmer: can buy micro shares in thorough beds, in racehorses. Very, very 313 00:16:51,600 --> 00:16:53,790 Sean Aylmer: integral. I quite like that one. I thought it was 314 00:16:53,790 --> 00:16:54,390 Sean Aylmer: very interesting. 315 00:16:54,750 --> 00:16:56,880 Michael Thompson: Yeah, I agree. It was a really interesting chat. Definitely 316 00:16:56,880 --> 00:16:59,790 Michael Thompson: worth a listen, Sean. Today is of course, Wednesday, which 317 00:16:59,790 --> 00:17:02,009 Michael Thompson: means there's a new episode as well of How Do 318 00:17:02,009 --> 00:17:05,668 Michael Thompson: They Afford That out today, me and Canna Campbell, the 319 00:17:05,670 --> 00:17:08,638 Michael Thompson: founder of Sugar Mama TV are talking today about all 320 00:17:08,640 --> 00:17:11,908 Michael Thompson: things pet insurance. Basically, is it worth it? The pros, 321 00:17:11,910 --> 00:17:14,668 Michael Thompson: the cons, the costs, and just going through that in 322 00:17:14,670 --> 00:17:17,609 Michael Thompson: some detail. Definitely worth a listen if you happen to 323 00:17:17,609 --> 00:17:19,500 Michael Thompson: have any animals in your household. 324 00:17:19,888 --> 00:17:22,409 Sean Aylmer: Well, I wish I had listened to it because only 325 00:17:22,410 --> 00:17:24,478 Sean Aylmer: about three months ago I got pet insurance for the 326 00:17:24,480 --> 00:17:28,560 Sean Aylmer: first time, or I got a program which alleviates the 327 00:17:28,560 --> 00:17:31,438 Sean Aylmer: cost of my pet. I've always been against it, but 328 00:17:31,440 --> 00:17:33,540 Sean Aylmer: at some point I thought, maybe I should have listened 329 00:17:33,540 --> 00:17:35,550 Sean Aylmer: to you guys first though before making the decision. 330 00:17:35,609 --> 00:17:37,319 Michael Thompson: Well, no, you can still listen to it today. It 331 00:17:37,320 --> 00:17:39,359 Michael Thompson: won't actually change any of the decisions that you made, 332 00:17:39,359 --> 00:17:41,369 Michael Thompson: but it might make you feel better about them, Sean. 333 00:17:41,609 --> 00:17:43,231 Sean Aylmer: All worse, Michael. All worse. We'll see. 334 00:17:43,231 --> 00:17:45,178 Michael Thompson: Yeah, that's also a possibility. Thank you very much. 335 00:17:45,390 --> 00:17:46,020 Sean Aylmer: Thanks, Michael. 336 00:17:46,260 --> 00:17:49,830 Michael Thompson: It's Wednesday the 28th of June, 2023. Make sure you're 337 00:17:49,830 --> 00:17:53,369 Michael Thompson: following the podcast. Join us online on LinkedIn, Instagram, Twitter, and 338 00:17:53,369 --> 00:17:55,379 Michael Thompson: Facebook. And stay up to date on all the business 339 00:17:55,380 --> 00:17:58,590 Michael Thompson: news with Alexa and your Amazon Echo Smart speaker. Simply 340 00:17:58,590 --> 00:18:01,080 Michael Thompson: say, Alexa, play the Fear and Greed podcast at catch 341 00:18:01,080 --> 00:18:03,540 Michael Thompson: the latest episode. You can get yours now@ amazon. com. 342 00:18:04,109 --> 00:18:06,360 Michael Thompson: au. I'm Michael Thompson and that was Fear and Greed. 343 00:18:06,600 --> 00:18:07,230 Michael Thompson: Have a great day.