1 00:00:03,880 --> 00:00:06,720 Speaker 1: It's Friday, the twenty eighth of June twenty twenty four. 2 00:00:06,920 --> 00:00:09,680 Speaker 1: Welcome to the Fast five Business News by Fear and Greed. 3 00:00:09,680 --> 00:00:11,400 Speaker 1: Will we give you the top five business stories you 4 00:00:11,440 --> 00:00:13,960 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:14,000 --> 00:00:17,160 Speaker 1: and good morning Sean Aylmer. Good morning, Michael Shaw on 6 00:00:17,280 --> 00:00:20,320 Speaker 1: five stories five minutes. Let's go Story number one. Bond 7 00:00:20,400 --> 00:00:23,279 Speaker 1: markets have priced in a forty percent chance of a 8 00:00:23,400 --> 00:00:26,880 Speaker 1: rate hike in August, as the fallout from Wednesday's hot 9 00:00:26,920 --> 00:00:30,360 Speaker 1: inflation figures hits markets and hits sentiment as well. 10 00:00:30,720 --> 00:00:32,760 Speaker 2: Inflation for the twelve months the end of May came 11 00:00:32,800 --> 00:00:35,479 Speaker 2: in at four percent, and underlying inflation, which the Reserve 12 00:00:35,600 --> 00:00:38,000 Speaker 2: Bank prefers its preferred measure, came in at four point 13 00:00:38,000 --> 00:00:40,680 Speaker 2: four percent. A bunch of market economists now expect the 14 00:00:40,680 --> 00:00:43,199 Speaker 2: next move in rates to not occur until towards the 15 00:00:43,240 --> 00:00:46,360 Speaker 2: middle of next year, but they're thinking down nation. An 16 00:00:46,360 --> 00:00:48,680 Speaker 2: Australia Bank has changed its forecast to May next year, 17 00:00:48,680 --> 00:00:52,519 Speaker 2: for example. But bond markets, which sold off yesterday ten 18 00:00:52,640 --> 00:00:55,040 Speaker 2: year bonds hit four point four percent. They've now priced 19 00:00:55,080 --> 00:00:56,600 Speaker 2: in a better than one in three chance of a 20 00:00:56,680 --> 00:01:01,240 Speaker 2: rate hike in August. Bond markets are more nimble, maybe 21 00:01:01,280 --> 00:01:04,000 Speaker 2: flighty the market economists. That explains some of the discrepancies 22 00:01:04,040 --> 00:01:06,640 Speaker 2: in forecasts. It doesn't mean, though, that bond markets are 23 00:01:06,640 --> 00:01:10,440 Speaker 2: necessarily wrong. Judo Bank economist Warren Hogan, who was formerly 24 00:01:10,520 --> 00:01:14,280 Speaker 2: chief economists Dan and Zed, expects a rate rise in August. 25 00:01:14,560 --> 00:01:16,480 Speaker 2: The smoking in much of this is what people do 26 00:01:16,560 --> 00:01:19,640 Speaker 2: with their July one tax cuts. The average full time 27 00:01:19,680 --> 00:01:22,720 Speaker 2: worker earns one hundred and one thousand, six hundred dollars. 28 00:01:23,040 --> 00:01:25,200 Speaker 2: Their take home pay will increase by about one hundred 29 00:01:25,200 --> 00:01:27,840 Speaker 2: and eighty five dollars. Will they save it? Will they 30 00:01:27,840 --> 00:01:30,480 Speaker 2: spend it? If they spend it, there's more likely to 31 00:01:30,520 --> 00:01:33,320 Speaker 2: be rate increases, sure in. 32 00:01:33,360 --> 00:01:36,400 Speaker 1: The interest rate debate also has political implications, doesn't it. 33 00:01:36,440 --> 00:01:40,000 Speaker 1: With the opposition hammering the government in question time yesterday 34 00:01:40,280 --> 00:01:43,280 Speaker 1: about the cost of living and of course about rising inflation. 35 00:01:43,520 --> 00:01:46,360 Speaker 2: It is a gift for the opposition, and yesterday Liberal 36 00:01:46,440 --> 00:01:49,560 Speaker 2: leader Peter Dutton open question time by asking why Australians 37 00:01:49,560 --> 00:01:51,840 Speaker 2: have to live in fear of another interest rate rise, 38 00:01:52,200 --> 00:01:54,280 Speaker 2: leaving the details of what's right and wrong aside for 39 00:01:54,320 --> 00:01:57,440 Speaker 2: a moment. It's an effective political attack on a government 40 00:01:57,600 --> 00:01:59,440 Speaker 2: that needs to go to the polls in under twelve 41 00:01:59,440 --> 00:02:01,960 Speaker 2: months as ride Chalmas and inflation is still higher than 42 00:02:01,960 --> 00:02:05,480 Speaker 2: the government would like, but Spoop Labour's economic credentials compared 43 00:02:05,720 --> 00:02:08,040 Speaker 2: to the previous coalition government all right. 44 00:02:08,200 --> 00:02:10,520 Speaker 1: Moving on to story Number two, hour in, Qatar Airways, 45 00:02:10,560 --> 00:02:13,760 Speaker 1: one of the world's largest airline groups, is negotiating to 46 00:02:13,800 --> 00:02:17,359 Speaker 1: take up to a twenty percent stake in Virgin Australia 47 00:02:17,480 --> 00:02:20,320 Speaker 1: as plans to list the number two carrier drag On. 48 00:02:21,080 --> 00:02:23,639 Speaker 2: Qatar is owned by the Qatari government and already does 49 00:02:23,680 --> 00:02:27,000 Speaker 2: code sharing with Virgin. According to the Financial Review, negotiations 50 00:02:27,040 --> 00:02:30,680 Speaker 2: between Virgin owner Bayin and Qatar Airways are ongoing. They 51 00:02:30,720 --> 00:02:34,440 Speaker 2: come after Virgin's advisors had been hoping to sell twenty 52 00:02:34,440 --> 00:02:38,079 Speaker 2: percent to Singapore Airlines. Any deal with Guitar would need 53 00:02:38,080 --> 00:02:41,040 Speaker 2: the backing of the Foreign Investment Review Board. Qatar's relationship 54 00:02:41,040 --> 00:02:43,840 Speaker 2: with the Albanezi government has been fraught in the past. 55 00:02:43,960 --> 00:02:47,000 Speaker 2: The airline's attempt to add more fights to Melbourne, Sydney, 56 00:02:47,040 --> 00:02:50,200 Speaker 2: Brisbane and Perth was blocked by Labor last year. Reasons 57 00:02:50,200 --> 00:02:52,959 Speaker 2: given included the need to protect aviation jobs and help 58 00:02:53,000 --> 00:02:57,639 Speaker 2: Quantus's investment in new planes deliver good returns. Virgin argued 59 00:02:57,680 --> 00:02:59,880 Speaker 2: that the decision to block additional flights, which was a 60 00:03:00,040 --> 00:03:02,880 Speaker 2: hosed by several state governments and tourism groups, only helped 61 00:03:02,880 --> 00:03:08,080 Speaker 2: protect Quantits's market chair, particularly on lucrative flights to Europe. 62 00:03:07,760 --> 00:03:11,600 Speaker 1: Sean Story number three. Total household wealth in Australia what 63 00:03:11,639 --> 00:03:16,520 Speaker 1: we all own has pushed beyond sixteen trillion dollars, thanks 64 00:03:16,560 --> 00:03:18,320 Speaker 1: in large part to rising house prices. 65 00:03:18,720 --> 00:03:21,040 Speaker 2: Tator wealth was at one point five trillion dollars over 66 00:03:21,040 --> 00:03:24,239 Speaker 2: the last year, with what the Bureau Statistics called residential 67 00:03:24,320 --> 00:03:27,400 Speaker 2: land and dwellings contributing about half the rise. The other 68 00:03:27,440 --> 00:03:30,280 Speaker 2: big contributor was rising superannuation assets, and that's been helped 69 00:03:30,320 --> 00:03:33,520 Speaker 2: along by strong share markets. About two thirds of household 70 00:03:33,639 --> 00:03:37,040 Speaker 2: wealth sits in bricks and mortar, and that percentage is growing. 71 00:03:37,120 --> 00:03:39,640 Speaker 2: It's gone from about sixty two percent four years ago 72 00:03:39,680 --> 00:03:41,960 Speaker 2: to about sixty seven percent now. The amount of money 73 00:03:42,000 --> 00:03:44,680 Speaker 2: people putting on deposits has also ritten over the past year. 74 00:03:44,720 --> 00:03:48,000 Speaker 2: USA Michael Sewan Story number four. A big, big day 75 00:03:48,120 --> 00:03:51,960 Speaker 2: in US politics. At eleven a m Eastern standard time, 76 00:03:52,800 --> 00:03:57,000 Speaker 2: presidential hopeful Donald Trump will square off against incumbent Joe Biden, 77 00:03:57,040 --> 00:04:01,040 Speaker 2: and what many think is the most consequential presidential debate 78 00:04:01,120 --> 00:04:04,120 Speaker 2: for many years. While both have their rusted on support 79 00:04:04,120 --> 00:04:06,920 Speaker 2: as many US voters seem to like neither, So this 80 00:04:07,160 --> 00:04:09,800 Speaker 2: morning Australian time is an opportunity for mister Biden and 81 00:04:09,800 --> 00:04:13,120 Speaker 2: mister Trump to sway electors one way or another. Pole 82 00:04:13,160 --> 00:04:15,600 Speaker 2: suggests tens of millions of Americans will watch the debate. 83 00:04:15,600 --> 00:04:18,840 Speaker 2: It's going to be held in CNN's studios in Atlanta. 84 00:04:19,240 --> 00:04:22,919 Speaker 2: No third candidate, the economy, cost of living crisis, Middle 85 00:04:22,960 --> 00:04:26,080 Speaker 2: East border security and immigration, abortion rights agent health for 86 00:04:26,120 --> 00:04:28,320 Speaker 2: both men, they're all likely to get a run. A 87 00:04:28,320 --> 00:04:31,520 Speaker 2: few rules. Joe Biden decides which side of the stage 88 00:04:31,520 --> 00:04:34,320 Speaker 2: he wants to stand on. Donald Trump actually gets the 89 00:04:34,360 --> 00:04:37,640 Speaker 2: final word. He has the final comment, perhaps sensibly, the 90 00:04:37,720 --> 00:04:42,080 Speaker 2: non speaking candidate's microphone will be muted when his opponent 91 00:04:42,160 --> 00:04:42,640 Speaker 2: is talking. 92 00:04:43,320 --> 00:04:47,000 Speaker 1: Last one sean story number five. Boeing is under pressure 93 00:04:47,240 --> 00:04:51,160 Speaker 1: after suggestions the two NASA astronauts had become stranded on 94 00:04:51,200 --> 00:04:54,240 Speaker 1: the International Space Station because of problems encountered by the 95 00:04:54,279 --> 00:04:57,920 Speaker 1: company's star line or spacecraft on its long delayed first 96 00:04:57,960 --> 00:04:58,680 Speaker 1: crude flight. 97 00:04:59,320 --> 00:05:02,680 Speaker 2: NASA and decided last week to postpone for the second time, 98 00:05:02,760 --> 00:05:05,760 Speaker 2: the return flight of the spacecraft, which docked with the 99 00:05:05,760 --> 00:05:09,559 Speaker 2: space station on June six, until an unspecified date in July, 100 00:05:09,640 --> 00:05:12,080 Speaker 2: and our star Liner was performing well, the company said, 101 00:05:12,440 --> 00:05:16,240 Speaker 2: and astronauts Sunny Williams and Butch Wilmore could return to 102 00:05:16,279 --> 00:05:20,000 Speaker 2: Worth at any time if necessary. The day comes at 103 00:05:20,040 --> 00:05:22,120 Speaker 2: the worst possible time for Boeing, which is still mind 104 00:05:22,160 --> 00:05:25,360 Speaker 2: and controversy over the safety culture in its commercial aerospace 105 00:05:25,560 --> 00:05:28,640 Speaker 2: division now. According to reporting The Financial Times, the defense 106 00:05:28,680 --> 00:05:32,200 Speaker 2: and space business meanwhile, has been struggling financially, lost about 107 00:05:32,240 --> 00:05:34,760 Speaker 2: one point seven billion newest dollars last year. NASA is 108 00:05:34,800 --> 00:05:38,360 Speaker 2: hoping Starliner will eventually be a viable competitor to Elon 109 00:05:38,480 --> 00:05:42,039 Speaker 2: Musk's space X for cargo and crew to the International 110 00:05:42,040 --> 00:05:43,840 Speaker 2: Space Station and eventually the Moon. 111 00:05:44,600 --> 00:05:46,800 Speaker 1: One day the Moon. There we go shon five stories 112 00:05:46,800 --> 00:05:47,359 Speaker 1: in five minutes. 113 00:05:47,360 --> 00:05:48,840 Speaker 2: Thank you very much. Thanks Michael. 114 00:05:49,200 --> 00:05:52,040 Speaker 1: It's Friday, the twenty eighth of June twenty twenty four. 115 00:05:52,080 --> 00:05:54,120 Speaker 1: Remember to hit follow on the podcast, and if five 116 00:05:54,120 --> 00:05:56,040 Speaker 1: minutes isn't en after, you can find our longer daily 117 00:05:56,080 --> 00:05:59,280 Speaker 1: show called Fear and Greed wherever you listen to podcasts, 118 00:05:59,400 --> 00:06:02,120 Speaker 1: or at Fear and dot com dot au. That also 119 00:06:02,160 --> 00:06:04,839 Speaker 1: comes with a bunch of interviews and things. Today's interview 120 00:06:04,960 --> 00:06:08,880 Speaker 1: is a terrific explainer of why it's looking more likely 121 00:06:09,160 --> 00:06:12,080 Speaker 1: that interest rates might be hyked in August. Check that 122 00:06:12,120 --> 00:06:14,000 Speaker 1: one out. I'm Michael Thompson and that was the Fast 123 00:06:14,000 --> 00:06:16,719 Speaker 1: five Business News by Fear and Greed. Have a great date.