1 00:00:06,160 --> 00:00:08,639 Speaker 1: This is the weekend edition of Fear and Greed, Daily 2 00:00:08,680 --> 00:00:10,879 Speaker 1: business news for people who make their own decisions. Are 3 00:00:10,920 --> 00:00:12,719 Speaker 1: Michael Thompson and good morning, Sean. 4 00:00:12,800 --> 00:00:14,680 Speaker 2: Aylmer, Good morning, Michael, Sean. 5 00:00:14,760 --> 00:00:16,639 Speaker 1: Our weekend show is all about the two of us, 6 00:00:16,680 --> 00:00:20,040 Speaker 1: each nominating what we think is the biggest business news 7 00:00:20,280 --> 00:00:24,160 Speaker 1: story of the week, the most remarkable story, a sleeper story, 8 00:00:24,160 --> 00:00:27,000 Speaker 1: one that's not getting the attention that it should, and 9 00:00:27,040 --> 00:00:30,720 Speaker 1: then our favorite business ish story of the week. And 10 00:00:30,960 --> 00:00:32,640 Speaker 1: it is a competition, so we need a judge to 11 00:00:32,640 --> 00:00:35,120 Speaker 1: pick a winner. That judge is our Fear and Greed 12 00:00:35,200 --> 00:00:37,640 Speaker 1: colleague Adam lang Adam, Good morning. 13 00:00:37,640 --> 00:00:39,400 Speaker 3: Good morning Michael, and good morning Sean. 14 00:00:39,479 --> 00:00:42,240 Speaker 2: Morning Adam. For listeners out there wondering why Michael could 15 00:00:42,280 --> 00:00:44,160 Speaker 2: just be a little flat as we start this morning, 16 00:00:44,200 --> 00:00:46,840 Speaker 2: it's because we've just had a conversation about the length 17 00:00:46,840 --> 00:00:50,560 Speaker 2: of time he takes on this show, and our producer 18 00:00:51,640 --> 00:00:55,800 Speaker 2: suggested that he was a little no what's a word. 19 00:00:55,640 --> 00:00:56,440 Speaker 1: There, wordy? 20 00:00:56,800 --> 00:00:58,960 Speaker 2: Yes, And then it came to you and I, Adam, 21 00:00:58,960 --> 00:01:02,960 Speaker 2: We're both like yeah, yeah, and Michael his face dropped. 22 00:01:03,320 --> 00:01:06,760 Speaker 2: He looked down and it was, as you put it, Adams, 23 00:01:06,760 --> 00:01:09,760 Speaker 2: the shock of the feedback yeah, yeah, yeah, the spacetime 24 00:01:09,800 --> 00:01:11,840 Speaker 2: continuum that it is not unaware of. 25 00:01:12,520 --> 00:01:14,839 Speaker 1: I think the key piece of feedback I received from Sean, 26 00:01:14,880 --> 00:01:17,400 Speaker 1: the one that really shocked me, was I don't think 27 00:01:17,480 --> 00:01:22,400 Speaker 1: you realize how much you go on, And to be honest, 28 00:01:22,720 --> 00:01:26,480 Speaker 1: I don't think I do, because I just assume that 29 00:01:26,560 --> 00:01:29,080 Speaker 1: everyone likes the sound of my voice as much as 30 00:01:29,080 --> 00:01:32,680 Speaker 1: I do. Anyway, this week, I'm all about the brevity, 31 00:01:32,720 --> 00:01:35,480 Speaker 1: and I said, for four weeks in a row, let's 32 00:01:35,680 --> 00:01:40,720 Speaker 1: jump straight into it today the biggest story of the week, Sean, Please, 33 00:01:40,840 --> 00:01:42,880 Speaker 1: you are the one that's filled the most minute so far. 34 00:01:43,040 --> 00:01:43,600 Speaker 1: Go for it. 35 00:01:43,840 --> 00:01:46,479 Speaker 2: This story deserves many, many more minutes. I won't do it, 36 00:01:46,600 --> 00:01:48,480 Speaker 2: but it does because the biggest story of the week 37 00:01:48,520 --> 00:01:51,120 Speaker 2: could also fit into the most Remarkable Story of the 38 00:01:51,160 --> 00:01:53,840 Speaker 2: Week category. It is the rise and rise and rise 39 00:01:54,160 --> 00:01:57,400 Speaker 2: of the Commonwealth Bank of Australia. This week, it unveiled 40 00:01:57,440 --> 00:02:00,640 Speaker 2: a better than expected cash profit just under ten billion dollars. 41 00:02:00,640 --> 00:02:04,320 Speaker 2: It hyped its dividend. The business itself is doing so well. 42 00:02:04,360 --> 00:02:06,840 Speaker 2: The all important net interest margin, the difference between when 43 00:02:06,840 --> 00:02:09,480 Speaker 2: a bank pays on deposits receives on loans, were steady 44 00:02:09,520 --> 00:02:11,880 Speaker 2: at one point nine to nine percent. Given the mortgage 45 00:02:11,880 --> 00:02:14,760 Speaker 2: market has been a lot more competitive in recent months, 46 00:02:15,120 --> 00:02:18,440 Speaker 2: that's actually a really good result. While the economy might 47 00:02:18,440 --> 00:02:20,600 Speaker 2: be slowing, people are still paying back their home loans, 48 00:02:20,600 --> 00:02:23,840 Speaker 2: with the majority of mortgagees in front of their schedule payments. 49 00:02:24,120 --> 00:02:27,400 Speaker 2: The bank's impaired loan expense lots of words there, but 50 00:02:27,480 --> 00:02:29,760 Speaker 2: basically is what the bank puts aside for bad loans. 51 00:02:30,080 --> 00:02:33,440 Speaker 2: It fell. That demonstrates the confidence the bank has in 52 00:02:33,480 --> 00:02:36,520 Speaker 2: its loan book. It keeps winning customers. Proportion of Busie 53 00:02:36,520 --> 00:02:40,600 Speaker 2: Bank customers who say Combank is their primary financial institution 54 00:02:41,160 --> 00:02:45,160 Speaker 2: is thirty five point five percent. The next best, according 55 00:02:45,160 --> 00:02:47,959 Speaker 2: to the Combank, is sixteen point four percent, so they 56 00:02:48,000 --> 00:02:52,240 Speaker 2: have twice as many customers as the number two bank, Crazy. 57 00:02:52,440 --> 00:02:54,080 Speaker 2: It's got twenty four point five percent of a home 58 00:02:54,160 --> 00:02:55,880 Speaker 2: lending market, twenty six and a half percent of the 59 00:02:55,880 --> 00:02:58,880 Speaker 2: household deposit market, about twenty six percent of the business market. 60 00:02:58,880 --> 00:03:01,919 Speaker 2: Now there arefore major banks a bunch of smaller operators, 61 00:03:02,040 --> 00:03:05,440 Speaker 2: so these numbers are very impressive. Combank is also getting 62 00:03:05,440 --> 00:03:09,200 Speaker 2: better at convincing customers to use its channels rather than 63 00:03:09,240 --> 00:03:12,120 Speaker 2: third parties. Its channels are much more profitable, so two 64 00:03:12,200 --> 00:03:16,320 Speaker 2: thirds of CBA homelans are sold via its channels rather 65 00:03:16,360 --> 00:03:19,119 Speaker 2: than mortgage brokers. For the overall market, it's twenty eight 66 00:03:19,200 --> 00:03:22,160 Speaker 2: percent sixty six vers twenty eight percent. Benny. Great stock 67 00:03:22,200 --> 00:03:25,480 Speaker 2: for shareholders, even though most professional analysts think it's overvalued. 68 00:03:25,880 --> 00:03:28,200 Speaker 2: Its share price is up thirty percent over the past year, 69 00:03:28,360 --> 00:03:31,079 Speaker 2: and for most shareholders, the two dollars fifty share final 70 00:03:31,120 --> 00:03:34,000 Speaker 2: dividend takes a full year dividend to four dollars sixty 71 00:03:34,040 --> 00:03:36,200 Speaker 2: five fully franc If you have held this stock for 72 00:03:36,520 --> 00:03:40,000 Speaker 2: a year or more, and most people have, you're going 73 00:03:40,040 --> 00:03:42,320 Speaker 2: to be getting a dividend yeal to five percent plus. 74 00:03:42,560 --> 00:03:45,080 Speaker 2: Its market valuation is two hundred and twenty two billion dollars, 75 00:03:45,080 --> 00:03:47,240 Speaker 2: more than the combined value of the next two biggest banks, 76 00:03:47,360 --> 00:03:50,360 Speaker 2: NAB and Westpac. Can it keep going? I don't know, 77 00:03:50,560 --> 00:03:54,360 Speaker 2: no idea, but for now, at least today, the rise 78 00:03:54,400 --> 00:03:56,640 Speaker 2: and rise and rise with the common Off Bank is 79 00:03:56,720 --> 00:04:01,080 Speaker 2: the biggest story of the week. Succinct timely. 80 00:04:01,880 --> 00:04:03,880 Speaker 1: I don't know where the Commonwealth Bank can keep going, 81 00:04:03,880 --> 00:04:10,160 Speaker 1: but you sure can. Oh goodness me, Michael, Michael. 82 00:04:10,200 --> 00:04:12,680 Speaker 2: When you have a big, big story, right, you have 83 00:04:12,760 --> 00:04:16,360 Speaker 2: to get the facts out there. Yeah, do you think 84 00:04:16,440 --> 00:04:18,719 Speaker 2: Watergate was done in three minutes. I don't think so 85 00:04:19,480 --> 00:04:20,239 Speaker 2: like three years. 86 00:04:20,880 --> 00:04:23,120 Speaker 1: Oh God, Woodward and Bernstein. 87 00:04:24,440 --> 00:04:25,000 Speaker 2: Did you just. 88 00:04:25,000 --> 00:04:28,800 Speaker 1: Compare yourself to the two greatest journalists, Well, arguably some 89 00:04:28,880 --> 00:04:30,040 Speaker 1: of the greatest journalists. 90 00:04:30,200 --> 00:04:32,640 Speaker 2: I compared you and I. I compared you and I. 91 00:04:32,520 --> 00:04:33,880 Speaker 3: Fairly so, Michael. 92 00:04:34,760 --> 00:04:39,159 Speaker 1: The biggest story this week comes from the the world 93 00:04:39,160 --> 00:04:43,200 Speaker 1: of economics, because I've got to say, this is a 94 00:04:43,240 --> 00:04:47,800 Speaker 1: world in which I'm finding myself increasingly comfortable. Even if 95 00:04:47,800 --> 00:04:49,760 Speaker 1: I don't sound it, even if what I say is 96 00:04:49,800 --> 00:04:55,000 Speaker 1: listed with inaccuracies, I still I'm I'm comfortable with those inaccuracies. 97 00:04:55,320 --> 00:04:58,680 Speaker 1: There was a wealth, a wealth of data out this week. 98 00:04:58,760 --> 00:05:04,720 Speaker 1: We are absolutely oils for information. But instead of wrapping 99 00:05:04,800 --> 00:05:07,240 Speaker 1: it all together into one big story, I'm going to 100 00:05:07,240 --> 00:05:11,960 Speaker 1: focus on one one single element, and that is jobs. 101 00:05:12,240 --> 00:05:16,840 Speaker 1: The very backbone of the economy, Is it, I suppose 102 00:05:16,880 --> 00:05:19,320 Speaker 1: it is? There was quite you. 103 00:05:19,279 --> 00:05:22,240 Speaker 2: Were doing so well, getting comfortable in the world of economics, 104 00:05:22,279 --> 00:05:24,279 Speaker 2: and you got the very backbone of the economy. And 105 00:05:24,279 --> 00:05:25,080 Speaker 2: then there's this port. 106 00:05:25,640 --> 00:05:28,080 Speaker 1: I don't know about that, well, actually not, I just 107 00:05:28,240 --> 00:05:31,279 Speaker 1: I suddenly thought, well, there's probably multiple elements to. 108 00:05:32,600 --> 00:05:35,360 Speaker 2: Well economic growth. It's probably a backbone. But let's call 109 00:05:35,680 --> 00:05:38,320 Speaker 2: jobs the arms and inflations the leagues. How about that? 110 00:05:39,440 --> 00:05:41,760 Speaker 1: Yeah, that's probably that's about right. I would say that 111 00:05:41,800 --> 00:05:43,359 Speaker 1: aligns with my thinking on the matter. 112 00:05:43,600 --> 00:05:46,120 Speaker 2: Alignes nice work spinal reference. 113 00:05:46,839 --> 00:05:50,039 Speaker 1: It was, oh, well done, it was. There's quite a 114 00:05:50,080 --> 00:05:54,799 Speaker 1: set of labor force numbers this place. Sty eight fifty 115 00:05:54,839 --> 00:05:59,080 Speaker 1: eight thousand new jobs created in the economy. Pretty incredible, 116 00:05:59,120 --> 00:06:02,679 Speaker 1: many more than expected. Adam important to write that down. 117 00:06:03,040 --> 00:06:06,880 Speaker 1: But still the unemployment rate climbed to four point two percent, 118 00:06:06,920 --> 00:06:09,440 Speaker 1: the highest since November twenty twenty one. And that's because 119 00:06:09,480 --> 00:06:11,640 Speaker 1: there's a record number of people looking for a job. 120 00:06:11,640 --> 00:06:13,600 Speaker 1: So the jobs market is cooling, but not a lot. 121 00:06:13,880 --> 00:06:15,359 Speaker 1: The thing is, there is a lot of people coming 122 00:06:15,400 --> 00:06:18,440 Speaker 1: into the workforce, pushed up by an influx of migrant workers. 123 00:06:18,480 --> 00:06:20,640 Speaker 1: But the labor market, and this is this is the 124 00:06:20,680 --> 00:06:23,720 Speaker 1: most remarkable thing. This is it is still want to do? 125 00:06:23,920 --> 00:06:27,240 Speaker 2: I love about your presentation. You're going so well, you'd 126 00:06:27,240 --> 00:06:29,640 Speaker 2: gotten into the story, you'd left all the middle dama 127 00:06:29,680 --> 00:06:33,360 Speaker 2: behind and after about four sentences you just you couldn't 128 00:06:33,360 --> 00:06:36,200 Speaker 2: help you. So if you can put labor markets this 129 00:06:36,279 --> 00:06:39,440 Speaker 2: is a really important thing. Like you just you know, 130 00:06:40,160 --> 00:06:41,160 Speaker 2: you couldn't help yourself. 131 00:06:41,200 --> 00:06:43,320 Speaker 3: He hits the turbocharger in Away goes. 132 00:06:43,480 --> 00:06:47,360 Speaker 1: It is because like it's actually because the labor market 133 00:06:47,440 --> 00:06:52,320 Speaker 1: inspires me. I am just I am thrilled by it. 134 00:06:52,320 --> 00:06:55,080 Speaker 1: It just I think about it at night, and the 135 00:06:55,120 --> 00:06:57,440 Speaker 1: fact that it is so it is so strong, it 136 00:06:57,520 --> 00:07:00,559 Speaker 1: is strong enough to absorb there's the number of people 137 00:07:00,560 --> 00:07:03,120 Speaker 1: coming into the workforce. Then it doesn't exactly scream to 138 00:07:03,160 --> 00:07:05,040 Speaker 1: the Reserve Bank that interest rates need to be cut 139 00:07:05,080 --> 00:07:08,800 Speaker 1: in order to stimulate things. Speaking of stimulating though, which 140 00:07:08,839 --> 00:07:10,880 Speaker 1: is one of our favorite topics on the show, there's 141 00:07:10,960 --> 00:07:14,240 Speaker 1: plenty of other economic data out this week. I don't 142 00:07:14,240 --> 00:07:16,080 Speaker 1: want to run the risk of muddying the waters and 143 00:07:16,160 --> 00:07:19,240 Speaker 1: kind of confusing things and making it too difficult for 144 00:07:19,280 --> 00:07:24,559 Speaker 1: Adam to kind of adjudicate. But there were a couple 145 00:07:24,560 --> 00:07:25,520 Speaker 1: of things I need to mention. 146 00:07:26,120 --> 00:07:30,520 Speaker 2: We had wages, no story of jobs, yes, go on. 147 00:07:32,480 --> 00:07:36,560 Speaker 1: We had wages data suggesting inflation pressures were easing, consumer 148 00:07:36,640 --> 00:07:41,120 Speaker 1: sentiments still at very low levels, the NAB business Confidence 149 00:07:41,200 --> 00:07:44,880 Speaker 1: survey suggesting inflation pressures were easing. There was just look, 150 00:07:45,640 --> 00:07:48,360 Speaker 1: there was just a lot. God, you can feel my 151 00:07:49,000 --> 00:07:51,200 Speaker 1: very tenuous grasp on the subject. 152 00:07:50,920 --> 00:07:55,280 Speaker 2: Matter watching you squirm. If any listeners could see your 153 00:07:55,360 --> 00:07:58,400 Speaker 2: hands actually pulling together there, that's quite funny. 154 00:08:00,120 --> 00:08:02,680 Speaker 1: It all together, and this is the thing. You put 155 00:08:02,720 --> 00:08:04,680 Speaker 1: it all together, and the Reserve Bank is going to 156 00:08:04,720 --> 00:08:06,600 Speaker 1: have a heck of a time figuring out the state 157 00:08:06,640 --> 00:08:09,360 Speaker 1: of the economy. But in the end, the biggest story 158 00:08:09,560 --> 00:08:14,880 Speaker 1: this week is jobs, jobs, jobs, jobs. We all need 159 00:08:14,920 --> 00:08:20,000 Speaker 1: one and those softening slightly. The labor market has proved itself. 160 00:08:20,200 --> 00:08:23,200 Speaker 1: It has proven itself again and again and again every 161 00:08:23,280 --> 00:08:27,760 Speaker 1: month to be remarkably resilient, and I think it's time 162 00:08:28,040 --> 00:08:32,200 Speaker 1: that we give it the acknowledgment that it deserves because 163 00:08:32,280 --> 00:08:37,440 Speaker 1: it is the biggest story of the week. Adam, you 164 00:08:37,520 --> 00:08:42,599 Speaker 1: did not look convinced. Did I need more melodrama? 165 00:08:42,960 --> 00:08:43,760 Speaker 2: Maybe? Maybe? 166 00:08:44,320 --> 00:08:50,200 Speaker 3: Please know I found myself vexed on this one. Really 167 00:08:50,720 --> 00:08:53,200 Speaker 3: hard to pick a winner, Adam. 168 00:08:53,640 --> 00:08:55,280 Speaker 2: Yeah, if you can't pick a winner out of these 169 00:08:55,320 --> 00:08:57,120 Speaker 2: two efforts, you got no chance. 170 00:08:57,160 --> 00:09:01,040 Speaker 3: So well, Sean, I'm going to disappoint you. 171 00:09:01,120 --> 00:09:02,400 Speaker 2: Then, Oh my god. 172 00:09:02,360 --> 00:09:04,719 Speaker 3: Jobs are the biggest story of the week for me. 173 00:09:07,280 --> 00:09:12,400 Speaker 3: Now I'm going to attempt to rationalize why because this 174 00:09:12,640 --> 00:09:18,000 Speaker 3: number surprised right. Enormous number of new jobs and an 175 00:09:18,000 --> 00:09:20,480 Speaker 3: increase in the unemployment rate, So what does that say 176 00:09:20,559 --> 00:09:23,400 Speaker 3: high participation because people need the money. To your point, Michael, 177 00:09:23,400 --> 00:09:25,480 Speaker 3: we all need a job. Actually many of us need 178 00:09:25,520 --> 00:09:27,880 Speaker 3: more than one job to get through, and I think 179 00:09:27,880 --> 00:09:33,360 Speaker 3: that's coming through the data. So I almost couldn't split them. 180 00:09:33,960 --> 00:09:36,360 Speaker 3: But just in the way this impacts people now, Sean, 181 00:09:36,559 --> 00:09:40,480 Speaker 3: the CBA share price is just insane. I mean, it's 182 00:09:40,559 --> 00:09:43,720 Speaker 3: incredible how highly value that company is for all the 183 00:09:43,760 --> 00:09:46,040 Speaker 3: things it's doing so well, and as you said, it's 184 00:09:46,040 --> 00:09:49,120 Speaker 3: the biggest bank thirty five point five percent people treated 185 00:09:49,160 --> 00:09:52,320 Speaker 3: as their main bank, and so just incredible data coming 186 00:09:52,360 --> 00:09:54,840 Speaker 3: through and a very very good performance by the company. 187 00:09:56,040 --> 00:09:57,880 Speaker 3: Really hard to split, but I'm just going to give 188 00:09:57,880 --> 00:09:58,920 Speaker 3: it to jobs this week. 189 00:09:59,760 --> 00:10:02,280 Speaker 1: I a quick question, yes, was is it? 190 00:10:02,320 --> 00:10:02,960 Speaker 3: For God's sake? 191 00:10:03,000 --> 00:10:07,920 Speaker 2: Why were you listening? That's my question, my god, Adam. 192 00:10:07,640 --> 00:10:11,200 Speaker 1: What are the criteria? That is probably something we should 193 00:10:11,240 --> 00:10:14,800 Speaker 1: we should have clarified earlier, But what are the criteria 194 00:10:14,880 --> 00:10:15,840 Speaker 1: on which you were judging? 195 00:10:16,120 --> 00:10:20,720 Speaker 3: All right? Topicality, timeliness, economic impact of the story, my 196 00:10:20,800 --> 00:10:24,520 Speaker 3: subjective bias, and of course melodrama, and on this one, 197 00:10:24,840 --> 00:10:28,360 Speaker 3: just the economic impact. I think it's incredible. The job 198 00:10:28,400 --> 00:10:29,200 Speaker 3: started this week. 199 00:10:29,960 --> 00:10:33,559 Speaker 2: M well, arbitrariness. I think it's probably the main. 200 00:10:36,240 --> 00:10:40,760 Speaker 1: Sean, I lost interest. 201 00:10:40,960 --> 00:10:43,480 Speaker 2: I'm sorry, I've lost this kin a walk, I've lost interest. 202 00:10:43,800 --> 00:10:48,400 Speaker 1: The stun silence in the studio. Most remarkable story, please, Sean. 203 00:10:48,360 --> 00:10:50,360 Speaker 2: I got nothing to say. You go first. I'm sorry, 204 00:10:50,720 --> 00:10:51,559 Speaker 2: I'm still flawed. 205 00:10:51,840 --> 00:10:56,360 Speaker 1: Well, thank you for the opportunity to speak again. My 206 00:10:56,600 --> 00:10:59,600 Speaker 1: story is remarkable, but it's actually not remarkable in a 207 00:10:59,600 --> 00:11:01,880 Speaker 1: good way. And this is actually a very serious story. 208 00:11:03,120 --> 00:11:06,080 Speaker 1: It is the extraordinary gap and we talked about this 209 00:11:06,120 --> 00:11:08,840 Speaker 1: through the week in literacy and numeracy between kids from 210 00:11:08,920 --> 00:11:12,920 Speaker 1: wealthy families compared to kids from less well off homes. Now, 211 00:11:12,960 --> 00:11:16,120 Speaker 1: these results are from the twenty twenty four Naplan tests, 212 00:11:16,800 --> 00:11:20,720 Speaker 1: and really there was a lot of coverage of them 213 00:11:21,160 --> 00:11:23,560 Speaker 1: through the week and a lot of different interpretations of 214 00:11:23,600 --> 00:11:26,439 Speaker 1: the data. And I don't think it matters which interpretation 215 00:11:26,559 --> 00:11:30,040 Speaker 1: you were looking at. Every single one is absolutely shocking, 216 00:11:30,040 --> 00:11:35,480 Speaker 1: an enormous gap between the rich and the poor in reading, writing, spelling, grammar, punctuation, numeracy. 217 00:11:35,720 --> 00:11:38,520 Speaker 1: So this is not just in one particular discipline. It 218 00:11:38,600 --> 00:11:41,920 Speaker 1: is across everything, and it's not just one year. It 219 00:11:42,000 --> 00:11:44,960 Speaker 1: is across all grades. Now, if that's not a clear 220 00:11:45,000 --> 00:11:50,280 Speaker 1: indication that something is absolutely horrendously wrong, then I don't 221 00:11:50,360 --> 00:11:53,240 Speaker 1: know what is. Because the states spend about forty billion 222 00:11:53,240 --> 00:11:55,680 Speaker 1: dollars on schools each year, the federal government to touch 223 00:11:55,720 --> 00:11:58,480 Speaker 1: over twenty five billion. Timing is everything, though, of course, 224 00:11:58,520 --> 00:12:00,800 Speaker 1: the state and federal governments are set to hammer out 225 00:12:00,800 --> 00:12:03,800 Speaker 1: a new funding agreement this year. Massive argument over it 226 00:12:03,920 --> 00:12:06,040 Speaker 1: over who will pay for the programs that are needed 227 00:12:06,040 --> 00:12:09,440 Speaker 1: to get kids up to speed in these essential skills 228 00:12:09,480 --> 00:12:12,440 Speaker 1: that will prepare them for the future. But these stats 229 00:12:12,640 --> 00:12:17,200 Speaker 1: quoted this week by federal Education Minister Jason Clair, are damning. 230 00:12:17,720 --> 00:12:20,840 Speaker 1: One in ten kids are below the overall standard, but 231 00:12:20,960 --> 00:12:24,720 Speaker 1: it is one in three kids from poor families, one 232 00:12:24,960 --> 00:12:29,360 Speaker 1: in three kids from the bush, one in three indigenous kids. 233 00:12:29,440 --> 00:12:32,560 Speaker 1: We've got a golden opportunity this year to fix the 234 00:12:32,559 --> 00:12:36,120 Speaker 1: funding model, to rectify some of these problems, because you 235 00:12:36,200 --> 00:12:39,160 Speaker 1: look at this, you hear those numbers, and these stats 236 00:12:39,480 --> 00:12:42,360 Speaker 1: are not what you would expect from a first world 237 00:12:42,400 --> 00:12:46,080 Speaker 1: country that prides itself on education and prides itself on 238 00:12:46,200 --> 00:12:50,719 Speaker 1: giving everybody a fair and equal opportunity. So I think 239 00:12:50,760 --> 00:12:54,280 Speaker 1: this whole story is completely remarkable, and I went very serious. 240 00:12:54,280 --> 00:12:56,400 Speaker 1: Then I do not apologize. 241 00:12:57,240 --> 00:13:01,480 Speaker 2: Yeah, it's pretty dull. I mean, I mean, it's remarkable. 242 00:13:01,520 --> 00:13:03,679 Speaker 2: I'm not going to argue that. But you're much better 243 00:13:03,760 --> 00:13:05,640 Speaker 2: when you you like turn it on. I don't know 244 00:13:05,679 --> 00:13:08,920 Speaker 2: whether anyone remembers the previous story, the biggest story of 245 00:13:08,920 --> 00:13:12,439 Speaker 2: the week, where you talk absolute garbage, but the melodrama 246 00:13:12,440 --> 00:13:15,119 Speaker 2: seem to win over the best story. Do you remember anyway? 247 00:13:15,480 --> 00:13:19,240 Speaker 1: I have a vague recollection of it. I'm sensing that 248 00:13:19,360 --> 00:13:21,600 Speaker 1: you feel it, Sean, just to touch. 249 00:13:23,200 --> 00:13:24,600 Speaker 2: Do you know what I'm going to do from now? 250 00:13:24,840 --> 00:13:27,160 Speaker 2: I Am not going to do another economic story for 251 00:13:27,200 --> 00:13:31,240 Speaker 2: the rest of the year to demonstrate Adam's horrendous bias 252 00:13:31,240 --> 00:13:35,320 Speaker 2: towards economics. So I'm out, Michael. You can have every 253 00:13:35,320 --> 00:13:37,280 Speaker 2: economic story from here to the end of the year 254 00:13:38,080 --> 00:13:40,800 Speaker 2: weekend edition. Then we'll find out. 255 00:13:42,840 --> 00:13:44,160 Speaker 1: That might test him. 256 00:13:44,520 --> 00:13:46,520 Speaker 2: No, No, Adam, it's a test of you. I'm sorry, 257 00:13:46,559 --> 00:13:48,000 Speaker 2: it is not a test of Michael. 258 00:13:48,400 --> 00:13:52,360 Speaker 1: Okay, I accept the challenge. As I said, I'm much 259 00:13:52,400 --> 00:13:54,640 Speaker 1: more comfortable now swimming around in that world. 260 00:13:55,600 --> 00:14:01,920 Speaker 3: I think Michael's texting Stephen, I was please help go on, Sean. 261 00:14:02,559 --> 00:14:04,520 Speaker 2: Sorry to how I sound like a petulant child, But 262 00:14:04,679 --> 00:14:08,360 Speaker 2: you know that's just how it is my most remarkable 263 00:14:08,400 --> 00:14:13,080 Speaker 2: story this week. I'm still smarting here. It's hurting me. 264 00:14:13,760 --> 00:14:17,360 Speaker 2: The corporate regulator ACK got something to do with economics, 265 00:14:17,400 --> 00:14:21,440 Speaker 2: I'm sure, has come out and alleged that the ASEX Limited, 266 00:14:21,560 --> 00:14:25,240 Speaker 2: that's the company, the share market operator, made misleading statements 267 00:14:25,240 --> 00:14:28,120 Speaker 2: about how the overhaul of its clearing and settlement system 268 00:14:28,240 --> 00:14:31,880 Speaker 2: was progressing months before it revealed the crucial upgrade was 269 00:14:31,920 --> 00:14:34,600 Speaker 2: actually failing. Now a bit of background here. In twenty fifteen, 270 00:14:34,880 --> 00:14:38,440 Speaker 2: the ASEX started working on a replacement for its clearing 271 00:14:38,560 --> 00:14:41,320 Speaker 2: and settlements system, known as Chess. It's all the back 272 00:14:41,320 --> 00:14:43,840 Speaker 2: off of stuff that happens when you buy sell securities. 273 00:14:44,480 --> 00:14:48,800 Speaker 2: A mega technology transformation involving blockchain technology was never going 274 00:14:48,960 --> 00:14:52,000 Speaker 2: to be easy. Was sort of going on and on, 275 00:14:52,120 --> 00:14:53,640 Speaker 2: and they kept coming out and saying Yep, yep, we're 276 00:14:53,680 --> 00:14:58,000 Speaker 2: doing Okay, we're doing AKA. Then in February twenty twenty two, 277 00:14:58,080 --> 00:15:02,280 Speaker 2: ACIC is alleging that ASEX came out and said that 278 00:15:02,360 --> 00:15:06,360 Speaker 2: the Chess project was on track to go live about 279 00:15:06,400 --> 00:15:10,120 Speaker 2: fourteen months later April twenty twenty three, and Essex is 280 00:15:10,160 --> 00:15:14,080 Speaker 2: alleging that in February twenty twenty two, ax is saying 281 00:15:14,320 --> 00:15:18,560 Speaker 2: the project was progressing well. Now in November twenty twenty two, 282 00:15:18,680 --> 00:15:21,560 Speaker 2: the end of that year, ten months later, the AX 283 00:15:21,800 --> 00:15:25,640 Speaker 2: revealed that the project had unraveled. Now, none of this 284 00:15:25,800 --> 00:15:28,680 Speaker 2: is new, We've known all this, but it is truly 285 00:15:28,880 --> 00:15:32,200 Speaker 2: remarkable where it comes to this week. This week, the 286 00:15:32,280 --> 00:15:35,160 Speaker 2: lawsuit in the federal court is the first litigation against 287 00:15:35,240 --> 00:15:38,960 Speaker 2: AX for the botched upgrade of the system. AX faces 288 00:15:39,000 --> 00:15:41,480 Speaker 2: a maximum penalty of more than half a billion dollars. 289 00:15:42,080 --> 00:15:44,920 Speaker 2: The whole thing is an absolute debarkle. The ASEX chair 290 00:15:45,040 --> 00:15:47,440 Speaker 2: Damien Roach, has been in that role since April twenty 291 00:15:47,440 --> 00:15:48,880 Speaker 2: twenty one, been on the board for a decade, so 292 00:15:48,920 --> 00:15:51,280 Speaker 2: he's been through the whole thing. He's definitely in the 293 00:15:51,320 --> 00:15:53,680 Speaker 2: firing line on this one. I would be surprised if 294 00:15:53,720 --> 00:15:56,600 Speaker 2: he makes it. I think he'll have to step down. 295 00:15:57,040 --> 00:16:03,160 Speaker 2: The AX Limited, which oversees the exchange, allegedly hasn't followed 296 00:16:03,400 --> 00:16:05,680 Speaker 2: its own rules and now it's being sued in the 297 00:16:05,680 --> 00:16:09,160 Speaker 2: federal court. That is truly remarkable. It's kind of like 298 00:16:09,240 --> 00:16:13,120 Speaker 2: the regulator breaking its own rules. I don't really know 299 00:16:13,160 --> 00:16:15,880 Speaker 2: what it's like. It's like something. It's remarkable. The ASEX 300 00:16:15,920 --> 00:16:19,480 Speaker 2: Limited in this area at least should really be beyond reproach. 301 00:16:19,760 --> 00:16:21,360 Speaker 2: I get that it's not a news story. It's been 302 00:16:21,440 --> 00:16:23,400 Speaker 2: traveling for a while, but the fact that it hit 303 00:16:23,440 --> 00:16:25,720 Speaker 2: the Federal Court this week is why I'm making it 304 00:16:25,800 --> 00:16:27,680 Speaker 2: my most remarkable story of the week. 305 00:16:28,560 --> 00:16:32,560 Speaker 3: These are both incredibly tough stories to hear and to 306 00:16:33,040 --> 00:16:36,040 Speaker 3: read about during the week. I have to give you 307 00:16:36,120 --> 00:16:37,000 Speaker 3: both a draw on this. 308 00:16:37,240 --> 00:16:40,720 Speaker 2: No, I know what a sympathy vote here, Adam, Come on, 309 00:16:41,040 --> 00:16:42,720 Speaker 2: come on, don't believe that you just. 310 00:16:42,720 --> 00:16:46,160 Speaker 1: Got a pity point, Sean. That's not true. 311 00:16:47,200 --> 00:16:49,920 Speaker 3: You know, all the points you made, Sean are indeed 312 00:16:49,920 --> 00:16:55,000 Speaker 3: incredibly remarkable. And there was also the question mark over 313 00:16:55,840 --> 00:16:58,400 Speaker 3: let's just say, the legitimacy of some of the information 314 00:16:58,720 --> 00:17:01,760 Speaker 3: disclosures that are going around trading and where we are 315 00:17:01,880 --> 00:17:04,560 Speaker 3: comparing to other markets in the world, and that goes 316 00:17:04,560 --> 00:17:06,879 Speaker 3: to the credibility of a whole trading system. And this 317 00:17:07,000 --> 00:17:10,919 Speaker 3: is so incredibly important to have governance and respect for 318 00:17:10,960 --> 00:17:14,240 Speaker 3: the institution that really is a sanctioned monopoly in Australia. 319 00:17:14,320 --> 00:17:17,960 Speaker 3: So I think that is a remarkable story and incredibly concerning. 320 00:17:18,000 --> 00:17:21,359 Speaker 3: We've all watched this implode in degrees as you've described. 321 00:17:22,480 --> 00:17:27,040 Speaker 3: Then next to that, you have literacy and education has 322 00:17:27,080 --> 00:17:30,080 Speaker 3: to be the most important asset that we can give 323 00:17:30,359 --> 00:17:33,639 Speaker 3: our children and next generations, and we are failing. And 324 00:17:33,680 --> 00:17:36,200 Speaker 3: so it is just an indictment. We're spending more money 325 00:17:36,200 --> 00:17:38,600 Speaker 3: and not getting it right now. Of course I would 326 00:17:38,640 --> 00:17:42,840 Speaker 3: choose not to bring in my favorite reformation idea, which 327 00:17:42,880 --> 00:17:48,160 Speaker 3: is states and federal government. There should be one national 328 00:17:48,320 --> 00:17:52,240 Speaker 3: education system. This is where federalism and a federation of states, 329 00:17:52,240 --> 00:17:54,280 Speaker 3: to me, is just not working. So I think that's 330 00:17:54,320 --> 00:17:58,000 Speaker 3: a great story to draw one and a half to half. 331 00:17:58,760 --> 00:18:01,080 Speaker 2: God, it's a shocking show, that really is. 332 00:18:02,080 --> 00:18:06,280 Speaker 1: And my favorite part is that Sean just looks like you've. 333 00:18:06,119 --> 00:18:10,320 Speaker 3: Just shoulders are slumped. I know this is like the 334 00:18:10,359 --> 00:18:12,320 Speaker 3: spirit the candle is dimming. 335 00:18:13,000 --> 00:18:14,600 Speaker 1: Which is the time for me to go in for 336 00:18:14,640 --> 00:18:17,600 Speaker 1: the kill. We are going to take a quick break. 337 00:18:17,640 --> 00:18:18,960 Speaker 3: Snuff it out, Michael. 338 00:18:18,880 --> 00:18:22,960 Speaker 1: I will. Did you say snuff it out? 339 00:18:23,400 --> 00:18:23,600 Speaker 2: Yeah? 340 00:18:23,680 --> 00:18:24,159 Speaker 3: The candle? 341 00:18:24,359 --> 00:18:28,240 Speaker 2: Okay, all right, when I hear the word stuff, that's 342 00:18:28,240 --> 00:18:28,760 Speaker 2: what I think of. 343 00:18:30,480 --> 00:18:33,600 Speaker 1: Okay, let's take a quick break and come back in 344 00:18:33,640 --> 00:18:43,920 Speaker 1: a moment with the sleeper story of the week. All right, Seawan, 345 00:18:44,000 --> 00:18:45,800 Speaker 1: we are looking for a sleeper story. This is a 346 00:18:45,920 --> 00:18:48,680 Speaker 1: story that's not getting the attention that we feel it deserves, 347 00:18:49,240 --> 00:18:53,480 Speaker 1: or perhaps is going to become a bigger story further 348 00:18:53,520 --> 00:18:57,000 Speaker 1: down the track. What have you dug up for us? 349 00:18:58,000 --> 00:19:00,320 Speaker 2: Profits have dominated the week, and if you do hard 350 00:19:00,400 --> 00:19:02,720 Speaker 2: enough in profits, you're always going to find sleep of stories. 351 00:19:02,720 --> 00:19:04,399 Speaker 2: I told you about Commwealth Bank a moment ago. I 352 00:19:04,400 --> 00:19:06,600 Speaker 2: don't know whether you remember that, because obviously the unemployment 353 00:19:06,640 --> 00:19:12,320 Speaker 2: still was so much better. Goodman Group delivered a higher 354 00:19:12,320 --> 00:19:14,560 Speaker 2: than expected profit, but a week in an expected outlook, 355 00:19:14,640 --> 00:19:17,480 Speaker 2: CSL said it's plasma collection business is back on track. 356 00:19:18,240 --> 00:19:22,920 Speaker 2: Commonwealth Bank reported we did. The real surprises have come 357 00:19:23,119 --> 00:19:25,120 Speaker 2: from some of the retailers. This is the sleeper part. 358 00:19:25,200 --> 00:19:27,840 Speaker 2: JB HiFi kicked off the week saying turnover grew last 359 00:19:27,880 --> 00:19:30,640 Speaker 2: financial year and is growing this financial year, and it's 360 00:19:30,640 --> 00:19:33,640 Speaker 2: share price jumped ten percent. It also announced a big 361 00:19:33,640 --> 00:19:36,480 Speaker 2: special dividend for shareholders. Then online Play, Temple and Webster 362 00:19:36,520 --> 00:19:38,720 Speaker 2: came out, said sales to jump twenty six percent. Its 363 00:19:38,720 --> 00:19:41,639 Speaker 2: share price was up twenty three percent. About thirty percent 364 00:19:41,640 --> 00:19:44,679 Speaker 2: of its sales are now in its private label brand, 365 00:19:44,760 --> 00:19:48,200 Speaker 2: which I'm sure is much much more profitable. Pretty fascinating. 366 00:19:48,800 --> 00:19:51,400 Speaker 2: This comes just as all the economic news suggest households 367 00:19:51,440 --> 00:19:54,520 Speaker 2: are struggling and retailers are suffering, and that's where the 368 00:19:54,640 --> 00:19:59,480 Speaker 2: sleeper part comes in. People are still spending money and 369 00:19:59,600 --> 00:20:02,960 Speaker 2: lots of it. Has seen a Temple and Webster and JB. 370 00:20:03,080 --> 00:20:05,760 Speaker 2: High fight. Not every retailer is having a good time. 371 00:20:05,800 --> 00:20:08,520 Speaker 2: Furniture Group Nick Scarley said, people aren't buying as many 372 00:20:08,520 --> 00:20:11,280 Speaker 2: big ticket items at the moment. But when you look 373 00:20:11,320 --> 00:20:16,440 Speaker 2: at what's happening in retail land, particularly in Tempela, Webster 374 00:20:16,480 --> 00:20:19,119 Speaker 2: and JB. High Fight, there are just really good retailers 375 00:20:19,119 --> 00:20:22,360 Speaker 2: out there who are somehow extracting dollars from people. Now, 376 00:20:22,400 --> 00:20:24,880 Speaker 2: Michael had a really dodgy story earlier in this show 377 00:20:24,920 --> 00:20:28,280 Speaker 2: about I can't remember what it was, fifty eight new jobs. 378 00:20:28,280 --> 00:20:32,159 Speaker 2: That's the jobs that one forget. Well, what it did show, though, 379 00:20:32,160 --> 00:20:34,000 Speaker 2: which Michael obviously didn't say. What it did show is 380 00:20:34,040 --> 00:20:35,320 Speaker 2: people have a job, and when they have a job, 381 00:20:35,320 --> 00:20:38,000 Speaker 2: they spend money. And that's why these retailers are still 382 00:20:38,000 --> 00:20:40,200 Speaker 2: doing well. No, he meant that. If you're read between 383 00:20:40,200 --> 00:20:45,000 Speaker 2: the lines, probably got that. But what is the sleeper 384 00:20:45,080 --> 00:20:48,200 Speaker 2: story here is that these retailers this reporting season are 385 00:20:48,240 --> 00:20:51,520 Speaker 2: actually looking better than we expected them. Still a long 386 00:20:51,560 --> 00:20:53,960 Speaker 2: way to go. Plenty of retailers still to report. We'll 387 00:20:53,960 --> 00:20:56,080 Speaker 2: find out more in the next couple of weeks. But 388 00:20:56,359 --> 00:21:00,920 Speaker 2: really interesting to watch you too, pull yourself together, get 389 00:21:00,960 --> 00:21:03,679 Speaker 2: out of yourself. This is a serious show. 390 00:21:04,040 --> 00:21:07,400 Speaker 1: This week Sean Almer, brought to you by a sense 391 00:21:07,440 --> 00:21:14,320 Speaker 1: of injustice. Okay, my sleeper story. I have got some 392 00:21:14,720 --> 00:21:21,960 Speaker 1: very very good news for one point two million people. 393 00:21:21,920 --> 00:21:29,680 Speaker 2: About the same number of shareholders as Commonwealth Bank go on. 394 00:21:27,040 --> 00:21:29,639 Speaker 1: One point twenty five million, maybe one point three million. 395 00:21:31,280 --> 00:21:34,679 Speaker 1: But it is a sleeper story because the bad news 396 00:21:34,920 --> 00:21:37,679 Speaker 1: seems to get all the attention. Everyone's talking about the 397 00:21:37,720 --> 00:21:40,920 Speaker 1: thirteen percent drop in Telstra's net profit to one point 398 00:21:40,960 --> 00:21:45,760 Speaker 1: seven nine billion dollars. And yes, that is bad because 399 00:21:45,800 --> 00:21:48,840 Speaker 1: the enterprise part of the business, providing services to government 400 00:21:48,880 --> 00:21:51,520 Speaker 1: and large companies, was written down by more than three 401 00:21:51,640 --> 00:21:54,840 Speaker 1: hundred million dollars, and earnings in fixed enterprisings like phone, 402 00:21:54,880 --> 00:22:01,080 Speaker 1: handsets and other equipment tumbled. But but, and here is 403 00:22:01,119 --> 00:22:05,320 Speaker 1: both the sleeper story and the good news. Hidden behind 404 00:22:05,440 --> 00:22:09,920 Speaker 1: all this negative, all this old school technology that nobody's 405 00:22:10,000 --> 00:22:13,600 Speaker 1: using anymore, like landline phones and I'm guessing fax machines 406 00:22:13,640 --> 00:22:17,639 Speaker 1: and things, is the fact that the mobile phone business 407 00:22:18,200 --> 00:22:24,760 Speaker 1: is booming. Telstra boosted its earnings by nine percent in 408 00:22:24,840 --> 00:22:25,320 Speaker 1: that space. 409 00:22:25,359 --> 00:22:26,720 Speaker 2: You don't even know what you're saying. 410 00:22:27,480 --> 00:22:32,200 Speaker 1: I absolutely do, because Sean, it's all about the numbers. 411 00:22:32,480 --> 00:22:38,640 Speaker 1: Five hundred and sixty thousand new mobile customers, nine percent 412 00:22:39,080 --> 00:22:42,640 Speaker 1: increase in earnings, one point two to one point three 413 00:22:42,680 --> 00:22:47,399 Speaker 1: million shareholders, more shareholders for Telstra than any other company 414 00:22:47,400 --> 00:22:49,919 Speaker 1: in Australia. This affects a lot of people. And the 415 00:22:50,080 --> 00:22:56,040 Speaker 1: rise in earnings for their mobile phones came before Telstra 416 00:22:56,119 --> 00:23:02,240 Speaker 1: upped its prices. So the sleeper story here is amazing 417 00:23:02,359 --> 00:23:06,240 Speaker 1: news for those one point two million shareholders, the most shareholders, 418 00:23:06,280 --> 00:23:08,760 Speaker 1: as I said, of any company in Australia. So the 419 00:23:08,960 --> 00:23:17,159 Speaker 1: impact is broad because the future, ladies and gentlemen is 420 00:23:17,400 --> 00:23:24,080 Speaker 1: in mobile telephony, dear, and on that count, Telstra is 421 00:23:24,160 --> 00:23:28,280 Speaker 1: an absolute star. Not that you would know it because 422 00:23:28,280 --> 00:23:31,159 Speaker 1: there was so much attention on the bad news and 423 00:23:31,200 --> 00:23:34,720 Speaker 1: all those other elements, the old fashioned parts like landline 424 00:23:34,760 --> 00:23:38,800 Speaker 1: phones and the enterprise business. But look at the real 425 00:23:38,880 --> 00:23:42,879 Speaker 1: story underneath, the booming mobile part of the business. That 426 00:23:43,080 --> 00:23:46,280 Speaker 1: is why I am here, the man of the people 427 00:23:46,600 --> 00:23:51,000 Speaker 1: bringing the good news to the people. Sleeper story of 428 00:23:51,040 --> 00:23:51,399 Speaker 1: the week. 429 00:23:51,720 --> 00:23:55,520 Speaker 2: Can I just interject here, right, So five hundred and 430 00:23:55,560 --> 00:24:00,880 Speaker 2: sixty thousand new mobile customers, excellent risings came before Telstra 431 00:24:01,000 --> 00:24:04,960 Speaker 2: upped its prices. Now has millions of customers. So the 432 00:24:05,000 --> 00:24:06,800 Speaker 2: man of the people bringing the good news to the 433 00:24:06,840 --> 00:24:10,400 Speaker 2: people forgot to mention your mobile phone prices are going up. 434 00:24:11,280 --> 00:24:13,720 Speaker 1: It's going up everywhere, Sean. But I'm thinking about the 435 00:24:13,760 --> 00:24:16,800 Speaker 1: one point two to one point three million shareholders because 436 00:24:16,880 --> 00:24:19,400 Speaker 1: this is this is it's the people's company as. 437 00:24:19,280 --> 00:24:23,439 Speaker 2: Opposed to the three or four million mobile All right, 438 00:24:23,720 --> 00:24:29,280 Speaker 2: you know, may I gat Oh you're here, Adam, Adam. 439 00:24:28,119 --> 00:24:33,920 Speaker 3: Sorry, go on while the sparring continues. So Michael tells 440 00:24:33,960 --> 00:24:36,240 Speaker 3: her Vicky Brady done a great job two years in 441 00:24:36,280 --> 00:24:36,640 Speaker 3: the role. 442 00:24:36,960 --> 00:24:39,080 Speaker 2: Can you can you explain who Vicky Brady is to 443 00:24:39,200 --> 00:24:43,160 Speaker 2: Michael place, She's the chief executive. 444 00:24:43,840 --> 00:24:48,400 Speaker 3: So and Sean, you interviewed Brent smart on this podcast 445 00:24:48,400 --> 00:24:51,879 Speaker 3: some time ago, and he talked about their rebranding highly consistent. 446 00:24:51,920 --> 00:24:53,960 Speaker 3: They've got the better network. We've seen those great stop 447 00:24:54,000 --> 00:24:56,080 Speaker 3: motion ads on TV. 448 00:24:56,359 --> 00:24:58,160 Speaker 2: You better explain who Brent smartest. 449 00:24:58,240 --> 00:25:02,040 Speaker 3: So he's the chief marketing officer of Telstra. And so 450 00:25:02,119 --> 00:25:05,960 Speaker 3: I think this is a really it's an excellent result. Also, 451 00:25:06,000 --> 00:25:09,440 Speaker 3: you'd see there's probably some customers gained from the Optus 452 00:25:09,760 --> 00:25:14,000 Speaker 3: outage that's happened. So it tells you have capitalized and 453 00:25:14,040 --> 00:25:16,080 Speaker 3: good results. But I just can't qualify this as a 454 00:25:16,119 --> 00:25:21,480 Speaker 3: sleeper to me. This is a continuing story that's evolving 455 00:25:22,520 --> 00:25:26,920 Speaker 3: the profits that Shawn's pointed out here, or the profits 456 00:25:26,960 --> 00:25:31,240 Speaker 3: and reporting season CBA Goodman CSL, but also those retailers 457 00:25:31,280 --> 00:25:34,600 Speaker 3: who retailers obviously we all buy the consumer economy. What 458 00:25:34,680 --> 00:25:38,000 Speaker 3: is it, Shawn, two thirds of our economy. 459 00:25:37,640 --> 00:25:39,120 Speaker 2: Rule of thumb, household spending yep. 460 00:25:39,440 --> 00:25:42,080 Speaker 3: So you know that is a reflection of how we 461 00:25:42,119 --> 00:25:44,959 Speaker 3: are spending. And to your point, Sean, you made it 462 00:25:45,160 --> 00:25:48,800 Speaker 3: about a week ago that the worst may be behind us, 463 00:25:49,200 --> 00:25:51,240 Speaker 3: and so I think this is reflective of that and 464 00:25:51,480 --> 00:25:54,760 Speaker 3: full of hope. Actually, so yeah, this has to win 465 00:25:54,800 --> 00:25:55,960 Speaker 3: for sleeper story of the week for me. 466 00:25:57,920 --> 00:26:01,560 Speaker 2: Ah, the worm has turned at the who Ronnie might say. 467 00:26:01,600 --> 00:26:05,320 Speaker 1: Does the melodrama count for anything at all with you anymore? 468 00:26:05,359 --> 00:26:08,320 Speaker 3: Adam, Well, it actually crounded for quite a lot. You 469 00:26:08,320 --> 00:26:09,880 Speaker 3: would have been smashed if it wasn't for. 470 00:26:09,880 --> 00:26:18,920 Speaker 1: That, right, all right, favorite story? Am I going first 471 00:26:18,920 --> 00:26:23,120 Speaker 1: on this one? You are you are well, my favorite 472 00:26:23,119 --> 00:26:30,200 Speaker 1: story this week, Adam is all about courage. It is 473 00:26:30,200 --> 00:26:33,080 Speaker 1: about having the courage to walk into a room full 474 00:26:33,080 --> 00:26:35,959 Speaker 1: of people and tell him exactly what you think of them. 475 00:26:36,200 --> 00:26:38,639 Speaker 1: And on that measure, I have a new idol, the 476 00:26:38,680 --> 00:26:46,960 Speaker 1: new Deputy Governor of the Reserve Banker Andrew Hawser, who 477 00:26:47,000 --> 00:26:51,040 Speaker 1: this week walked onto the stage at an Economic Society 478 00:26:51,040 --> 00:26:53,680 Speaker 1: of Australia events and told economists exactly what he thinks 479 00:26:53,720 --> 00:26:57,199 Speaker 1: of them. Well, not maybe, not all economists perhaps, but 480 00:26:57,760 --> 00:27:00,159 Speaker 1: he didn't mince words when it comes to those who 481 00:27:00,160 --> 00:27:04,560 Speaker 1: make definitive predictions for the economy in an environment where 482 00:27:04,560 --> 00:27:07,640 Speaker 1: the data keeps changing, the outlook keeps shifting, and there 483 00:27:07,680 --> 00:27:13,440 Speaker 1: is no truly definitive prediction. He said that economic commentators, 484 00:27:14,840 --> 00:27:18,680 Speaker 1: maybe in some cases I'm paraphrasing here, false prophets whose 485 00:27:18,720 --> 00:27:21,879 Speaker 1: poor predictions could make people worse off. A world of 486 00:27:21,920 --> 00:27:26,640 Speaker 1: winners and losers, gurus and Charlatan's geniuses and buffoons. Now 487 00:27:26,680 --> 00:27:30,320 Speaker 1: this is my favorite part. Those seeing things differently are 488 00:27:30,400 --> 00:27:36,000 Speaker 1: castigated as incompetent, biased, or on the make, which coincidentally 489 00:27:36,320 --> 00:27:38,879 Speaker 1: are all words that I've used to describe Adam. After 490 00:27:38,920 --> 00:27:43,240 Speaker 1: some of his judging decisions and after his decision in 491 00:27:43,359 --> 00:27:46,639 Speaker 1: the Favorite story category today and probably Sean, if you 492 00:27:46,680 --> 00:27:49,199 Speaker 1: want to unite with me on this in the Biggest 493 00:27:49,240 --> 00:27:54,200 Speaker 1: story category as well, absolutely are perfectly relevant today. Andrew 494 00:27:54,200 --> 00:27:57,040 Speaker 1: Hauser has told us what he thinks of your judging, Adam, 495 00:27:57,080 --> 00:28:00,480 Speaker 1: But he did have a point to a agree that 496 00:28:00,560 --> 00:28:03,600 Speaker 1: some commentators are presenting views that come across as very 497 00:28:03,720 --> 00:28:07,840 Speaker 1: very very certain in a very very uncertain environment. And yes, 498 00:28:07,880 --> 00:28:10,160 Speaker 1: there's a risk that it might mislead people and encourage 499 00:28:10,160 --> 00:28:13,880 Speaker 1: them to make decisions that that well, it actually could 500 00:28:13,920 --> 00:28:17,040 Speaker 1: harm their own financial welfare. But it does also overlook 501 00:28:17,040 --> 00:28:19,200 Speaker 1: the fact that some very poor predictions in the past 502 00:28:19,200 --> 00:28:21,800 Speaker 1: have come from within the Reserve Bank itself, like the 503 00:28:21,840 --> 00:28:25,480 Speaker 1: idea that rates wouldn't rise until twenty twenty four. But look, 504 00:28:25,520 --> 00:28:27,280 Speaker 1: you got to applaud him, right, You got to applaud 505 00:28:27,280 --> 00:28:29,800 Speaker 1: the guy for just getting out there and saying something, 506 00:28:30,480 --> 00:28:33,480 Speaker 1: because every part of what he said is a great headline, 507 00:28:33,560 --> 00:28:38,560 Speaker 1: buffoons urus, false prophets. For an organization that is usually 508 00:28:38,640 --> 00:28:42,479 Speaker 1: pretty dry, a little bit of Reserve Bank melodrama is 509 00:28:42,480 --> 00:28:45,720 Speaker 1: something that I can get behind. It is my favorite 510 00:28:45,720 --> 00:28:46,400 Speaker 1: story of the week. 511 00:28:47,360 --> 00:28:51,600 Speaker 2: Sure you know, its really interesting. Man, well done. 512 00:28:52,280 --> 00:28:56,600 Speaker 1: Oh you are really in a mood. 513 00:28:58,720 --> 00:28:59,959 Speaker 2: You need to go straight to your room. 514 00:29:04,280 --> 00:29:10,640 Speaker 1: You need to check your privilege. That's good, Sorry, Whack, 515 00:29:11,240 --> 00:29:13,160 Speaker 1: Just go on tell me. 516 00:29:15,840 --> 00:29:17,440 Speaker 2: I've just realized my story has got nothing to do 517 00:29:17,480 --> 00:29:19,760 Speaker 2: with economics and yours has. So why should I even try? 518 00:29:20,160 --> 00:29:22,880 Speaker 2: Why should I even try? You know, not a badge 519 00:29:22,920 --> 00:29:26,360 Speaker 2: of the judge, Early, but why should I be even trying? 520 00:29:26,600 --> 00:29:26,840 Speaker 3: Early? 521 00:29:27,160 --> 00:29:30,000 Speaker 1: Lefton? He's just so cranky today, Adam. 522 00:29:30,240 --> 00:29:32,160 Speaker 2: I was going I was going to go with Olympics 523 00:29:32,160 --> 00:29:34,040 Speaker 2: for the third week in a row. Michael's done two. 524 00:29:34,080 --> 00:29:36,200 Speaker 2: I was going to do a third. I was going 525 00:29:36,240 --> 00:29:39,160 Speaker 2: to do the English Premier League, which kicks off this weekend. Adam, 526 00:29:39,200 --> 00:29:41,320 Speaker 2: big fan. No, no, no, I won't do that. 527 00:29:42,360 --> 00:29:43,040 Speaker 3: Go Chelsea. 528 00:29:43,760 --> 00:29:48,320 Speaker 2: That's a problem. But but forget the Olympics, forget the 529 00:29:48,320 --> 00:29:55,120 Speaker 2: English Premier League. Think chess, crazy stuff. Chess first, Andrew Houser, 530 00:29:55,440 --> 00:29:57,280 Speaker 2: what a crazy week we've got This week we found 531 00:29:57,280 --> 00:30:00,240 Speaker 2: out that Russian at chess champion has been suspen ended 532 00:30:00,320 --> 00:30:03,600 Speaker 2: after poisoning her childhood rival ahead of a match by 533 00:30:03,680 --> 00:30:09,520 Speaker 2: smearing deadly mercury over her pieces. Not sure which one's prawns, knights, bishops, 534 00:30:09,520 --> 00:30:24,920 Speaker 2: et cetera. They've prawnsed to me. Now, the woman's name 535 00:30:25,000 --> 00:30:29,600 Speaker 2: Amena A backer Over she's reported to her said she attacked. Now, 536 00:30:29,600 --> 00:30:33,440 Speaker 2: I'm not going to get this lady's name, Ulmagannet Osmanova, 537 00:30:33,560 --> 00:30:37,920 Speaker 2: Osmanova or McGann at Osmanova. She attacked on McGann at 538 00:30:37,920 --> 00:30:41,160 Speaker 2: Osmanov out of revenge for a personal insult. She's been 539 00:30:41,240 --> 00:30:43,840 Speaker 2: arrested and faces up to three years jarly found guilty. 540 00:30:43,920 --> 00:30:45,719 Speaker 2: This is all out of the Daily Telegraph of London. 541 00:30:46,160 --> 00:30:49,440 Speaker 2: Security footage captures the moment a backer Over entered the 542 00:30:49,440 --> 00:30:52,360 Speaker 2: hall where the tournament was to take place in Southern Russia. 543 00:30:52,560 --> 00:30:55,520 Speaker 2: She appears to make preparations for the poisoning. She's looking around. 544 00:30:55,760 --> 00:30:58,840 Speaker 2: She casually approaches her opponent's table. She takes something out 545 00:30:58,840 --> 00:31:04,080 Speaker 2: of her bag, smears its contents on Osmanova's board and 546 00:31:04,320 --> 00:31:07,640 Speaker 2: on some of the pieces. Now, Osmanov suffered severe disneyess 547 00:31:07,680 --> 00:31:11,000 Speaker 2: and nausea. Soon after the game began. She required medical attention. 548 00:31:11,280 --> 00:31:14,120 Speaker 2: A judge from the tournament reported the incident to police. 549 00:31:14,240 --> 00:31:17,920 Speaker 2: Of course, it was all on CCTV footage. So a 550 00:31:17,960 --> 00:31:20,240 Speaker 2: backer Avery is in all sorts of trouble here. Now 551 00:31:20,240 --> 00:31:23,800 Speaker 2: there ain't allegations not proven yet, but the CCTV footage 552 00:31:24,280 --> 00:31:26,360 Speaker 2: it's going to work against him. Now, Chess has a 553 00:31:26,440 --> 00:31:29,800 Speaker 2: history of cheating. I mean the last couple of years 554 00:31:30,120 --> 00:31:32,920 Speaker 2: there was the scandal the world number one Magnus Carlson 555 00:31:33,960 --> 00:31:38,960 Speaker 2: basically ended a game against Hans Nieman. He's sort of 556 00:31:38,960 --> 00:31:42,280 Speaker 2: like the nineteen year old upstart. It was an online 557 00:31:42,320 --> 00:31:49,240 Speaker 2: game and Carlson, the world champion, claimed that Nieman was cheating. Now, 558 00:31:49,600 --> 00:31:52,000 Speaker 2: Neieman had been found guilty of cheating a couple of 559 00:31:52,000 --> 00:31:54,240 Speaker 2: times previously. Carlson came in and said, oh, he's done 560 00:31:54,240 --> 00:31:57,760 Speaker 2: a lot more than that, and it's actually Michael. Maybe 561 00:31:57,800 --> 00:31:59,480 Speaker 2: we could put this in the news thurtter next week. 562 00:32:00,600 --> 00:32:03,800 Speaker 2: Of the commentators when Carson stands up, it just walks away. 563 00:32:04,000 --> 00:32:04,840 Speaker 2: It's quite funny. 564 00:32:05,000 --> 00:32:08,040 Speaker 1: Yep, it is good. Yes, we'll definitely do that. 565 00:32:08,240 --> 00:32:10,240 Speaker 2: There was one hundred million dollar lawsuit involved in that one. 566 00:32:10,360 --> 00:32:12,440 Speaker 2: It was big. In nineteen ninety four, the go the 567 00:32:12,480 --> 00:32:16,400 Speaker 2: greatest of all time, Gary Kasparov changed his move in 568 00:32:16,440 --> 00:32:22,560 Speaker 2: a game against challenge at Udit Polgar after momentarily split 569 00:32:22,640 --> 00:32:26,480 Speaker 2: second letting go of a piece. Now, anyone that knows 570 00:32:26,680 --> 00:32:30,560 Speaker 2: chess knows you cannot remove a piece once you've taken 571 00:32:30,600 --> 00:32:33,440 Speaker 2: your finger off it. He did, Kasparov went on to win. 572 00:32:33,920 --> 00:32:36,800 Speaker 2: We're still talking about it today. American grand Master Bobby Fisher. 573 00:32:37,000 --> 00:32:40,000 Speaker 2: He always complained that the top Soviet players would arrange 574 00:32:40,000 --> 00:32:42,480 Speaker 2: easy drawers between themselves so they could use their brain 575 00:32:42,560 --> 00:32:47,920 Speaker 2: power against him, but normally cheating didn't involve poison cracking 576 00:32:47,960 --> 00:32:52,760 Speaker 2: story Adam. 577 00:32:51,160 --> 00:32:56,040 Speaker 3: Okay, both incredible, really and I completely get one. They're 578 00:32:56,040 --> 00:32:59,720 Speaker 3: your favorites on this one over a chest poisoning in 579 00:32:59,800 --> 00:33:04,920 Speaker 3: sidtident versus Andrew Hauser, the combative new Deputy governor of 580 00:33:04,960 --> 00:33:09,400 Speaker 3: the RBA. I have to give it to Michael now. 581 00:33:10,400 --> 00:33:15,680 Speaker 3: I say that because as a former economist, I felt 582 00:33:15,680 --> 00:33:18,440 Speaker 3: he was targeting people like me and Sean. As you 583 00:33:18,920 --> 00:33:21,720 Speaker 3: pointed out, often our job, or our role in a 584 00:33:21,760 --> 00:33:24,960 Speaker 3: conversation is to make a call, and that's what they're doing. 585 00:33:25,000 --> 00:33:27,520 Speaker 3: But didn't he have a whack in almost like a 586 00:33:27,640 --> 00:33:32,320 Speaker 3: John Cleese theatrical style, So I thought is remarkable. But 587 00:33:32,360 --> 00:33:35,160 Speaker 3: what I love actually about it is that we've got 588 00:33:35,200 --> 00:33:38,800 Speaker 3: a reserve bank that's speaking speaking its mind. So from 589 00:33:38,840 --> 00:33:42,920 Speaker 3: Michelle Bullock to Andrew Hauser, I really welcome the conversation. 590 00:33:43,240 --> 00:33:45,200 Speaker 3: So on this one. I have to give it to Michael. 591 00:33:47,480 --> 00:33:51,240 Speaker 2: Yeah, righta whatever, economics, economics. As I said, I'm not 592 00:33:51,240 --> 00:33:53,400 Speaker 2: doing economics again for the rest of the year. We'll 593 00:33:53,440 --> 00:33:58,000 Speaker 2: just find out how biased you really are. Test my metal. 594 00:33:58,120 --> 00:34:02,040 Speaker 2: Andrew Houser stuff, right, he's relatively new, so he probably 595 00:34:02,080 --> 00:34:04,560 Speaker 2: can come out and say what he say, what he thinks. 596 00:34:04,800 --> 00:34:07,240 Speaker 2: But I actually felt sorry for the market economists out 597 00:34:07,240 --> 00:34:10,680 Speaker 2: there who all they toil away. They have to make 598 00:34:10,719 --> 00:34:14,920 Speaker 2: a prediction totally. It's an uncertain world, right, I get that. 599 00:34:15,480 --> 00:34:18,680 Speaker 2: And all the economists want a relationship with the Reserve 600 00:34:18,760 --> 00:34:24,200 Speaker 2: Bank because we need one. Yeah, they need one. And yeah, 601 00:34:24,200 --> 00:34:27,279 Speaker 2: I just thought it's been unfair to be honest two 602 00:34:27,320 --> 00:34:29,319 Speaker 2: and a half to one and a half year when yeah, yeah, yeah, 603 00:34:29,360 --> 00:34:29,920 Speaker 2: get on with it. 604 00:34:30,200 --> 00:34:33,279 Speaker 1: Well, that's it. That's actually tell us the score, the 605 00:34:33,360 --> 00:34:38,720 Speaker 1: breakdown scores as well. It's a tie moral it's ninety 606 00:34:38,760 --> 00:34:39,640 Speaker 1: two points each. 607 00:34:40,040 --> 00:34:43,040 Speaker 2: Ah, that isn't that is a sort of hollow victory. 608 00:34:43,320 --> 00:34:44,719 Speaker 2: Hollow victory, Michael. 609 00:34:45,120 --> 00:34:47,360 Speaker 1: Did you just try to patch my victory away from me? 610 00:34:47,400 --> 00:34:47,560 Speaker 2: There? 611 00:34:47,600 --> 00:34:50,479 Speaker 1: So you've tried to sour it a little? 612 00:34:51,160 --> 00:34:51,480 Speaker 2: All right? 613 00:34:51,520 --> 00:34:53,920 Speaker 3: I think we have one clear loser today, and that's me. 614 00:34:54,920 --> 00:34:56,840 Speaker 1: No, no, I've got. 615 00:34:56,719 --> 00:34:59,160 Speaker 2: To be perfectly honest, Adam. If people are listening to this, 616 00:34:59,239 --> 00:35:01,279 Speaker 2: there is actually a one person that comes out of 617 00:35:01,320 --> 00:35:03,480 Speaker 2: this with any decency whatsoever about and that is you, 618 00:35:05,880 --> 00:35:08,480 Speaker 2: certainly not me, certainly not me, And I'm not going 619 00:35:08,520 --> 00:35:11,120 Speaker 2: to give anything to Michael. So you are actually probably 620 00:35:11,200 --> 00:35:11,920 Speaker 2: the winner. 621 00:35:13,120 --> 00:35:14,480 Speaker 3: Or least loser. 622 00:35:15,760 --> 00:35:20,400 Speaker 1: Thank you very much, Adam sterling effort today. Thank you Michael, 623 00:35:20,920 --> 00:35:21,840 Speaker 1: and thank you Sean. 624 00:35:22,040 --> 00:35:24,160 Speaker 2: Thanks Michael, Thanks Adam. Thanks for keeping it so quick 625 00:35:24,160 --> 00:35:25,640 Speaker 2: today too, fellas that's. 626 00:35:25,440 --> 00:35:28,000 Speaker 1: What we do. Thanks for you following the podcast, Join 627 00:35:28,080 --> 00:35:30,879 Speaker 1: us online on LinkedIn, Instagram, TikTok, Facebook, and X I'm 628 00:35:30,880 --> 00:35:32,880 Speaker 1: Michael Thompson. And that was Fear and Greed. Have a 629 00:35:32,880 --> 00:35:33,480 Speaker 1: great weekend.