1 00:00:03,960 --> 00:00:07,710 Michael Thompson: Rising interest rates can't stop the strong Aussie housing market. 2 00:00:08,099 --> 00:00:11,940 Michael Thompson: Former Liberal senator, David Van, urged to quit politics over 3 00:00:11,940 --> 00:00:16,409 Michael Thompson: sexual harassment allegations. And new research shows that people working 4 00:00:16,410 --> 00:00:18,660 Michael Thompson: from home are less productive, but you can blame their 5 00:00:18,660 --> 00:00:22,800 Michael Thompson: managers for that. It's Monday the 19th of June 2023. 6 00:00:22,980 --> 00:00:26,070 Michael Thompson: Welcome to Fear and Greed, Australia's most popular business podcast. 7 00:00:26,340 --> 00:00:28,590 Michael Thompson: I'm Michael Thompson, and good morning, Sean Aylmer. 8 00:00:28,889 --> 00:00:31,170 Sean Aylmer: Good morning, Michael. Love this time of the year. Do 9 00:00:31,170 --> 00:00:31,740 Sean Aylmer: you know why? 10 00:00:32,370 --> 00:00:34,379 Michael Thompson: Because we are approaching the winter solstice. 11 00:00:34,769 --> 00:00:36,360 Sean Aylmer: Oh, well done. You remembered. 12 00:00:36,449 --> 00:00:38,370 Michael Thompson: Oh, I'm counting down as well, because as soon as 13 00:00:38,370 --> 00:00:42,750 Michael Thompson: we hit that point it's just like we're on the 14 00:00:42,750 --> 00:00:44,790 Michael Thompson: downhill slope to summer. Is that how you say it? 15 00:00:44,790 --> 00:00:49,918 Sean Aylmer: That's it, some ski analogy there, which is appropriate for winter, 16 00:00:50,070 --> 00:00:52,469 Sean Aylmer: and I just think that winter is over once we 17 00:00:52,469 --> 00:00:54,690 Sean Aylmer: hit that summer solstice. Don't worry about the temperature, winter 18 00:00:54,690 --> 00:00:55,140 Sean Aylmer: is over. 19 00:00:55,260 --> 00:00:59,460 Michael Thompson: Yeah, away we go. Now, Sean, if you're an investor or if you're at 20 00:00:59,460 --> 00:01:03,000 Michael Thompson: least interested in investing, it is worth a listen to 21 00:01:03,000 --> 00:01:06,239 Michael Thompson: your interview today. You're speaking with Anto Joseph, the CEO 22 00:01:06,240 --> 00:01:07,050 Michael Thompson: of Stropro. 23 00:01:07,980 --> 00:01:11,938 Sean Aylmer: That's right. Lovely fellow, Anto. We initially start talking about 24 00:01:11,940 --> 00:01:13,620 Sean Aylmer: what's going on in the U. S. and Japan, but 25 00:01:13,620 --> 00:01:17,429 Sean Aylmer: we quickly morph into some of the clients that Anto 26 00:01:17,610 --> 00:01:19,619 Sean Aylmer: works with. And a lot of those are high net 27 00:01:19,620 --> 00:01:23,730 Sean Aylmer: worth individuals, rich people investing their money, and we talk 28 00:01:23,730 --> 00:01:26,700 Sean Aylmer: about where they are investing their money. And Michael, it's 29 00:01:26,700 --> 00:01:30,328 Sean Aylmer: not equities and it's not bonds, it's somewhere different. Well worth 30 00:01:30,330 --> 00:01:30,780 Sean Aylmer: a listen. 31 00:01:31,020 --> 00:01:33,000 Michael Thompson: Oh, I love the way that you're teasing us with 32 00:01:33,000 --> 00:01:33,510 Michael Thompson: that, Sean. 33 00:01:33,780 --> 00:01:34,800 Sean Aylmer: Yeah, yeah. 34 00:01:35,040 --> 00:01:37,470 Michael Thompson: It is worth sticking around for. But the main story this morning, 35 00:01:37,470 --> 00:01:41,099 Michael Thompson: Sean, there might be talk of much higher interest rates 36 00:01:41,099 --> 00:01:44,160 Michael Thompson: and even a recession, but that isn't stopping the housing 37 00:01:44,160 --> 00:01:47,880 Michael Thompson: market. Well, I suppose not yet, anyway. Auction clearance rates 38 00:01:48,059 --> 00:01:52,590 Michael Thompson: over the weekend above 70% for the second consecutive week, 39 00:01:52,590 --> 00:01:54,570 Michael Thompson: despite all of this negativity around. 40 00:01:55,020 --> 00:01:57,240 Sean Aylmer: And there were nearly 2, 000 homes going to auction, which 41 00:01:57,240 --> 00:01:59,820 Sean Aylmer: is about double the amount of a week earlier. Of 42 00:01:59,820 --> 00:02:02,249 Sean Aylmer: course, a week earlier was the King's holiday in many 43 00:02:02,250 --> 00:02:06,029 Sean Aylmer: States, so that dampened some of the auction numbers, but 44 00:02:06,029 --> 00:02:10,200 Sean Aylmer: still nearly 2, 000 houses going up, pretty good. CoreLogic's preliminary 45 00:02:10,200 --> 00:02:13,410 Sean Aylmer: clearance rate was 72.5%, which is about the same as 46 00:02:13,410 --> 00:02:16,770 Sean Aylmer: a week earlier. There were also anecdotal reports of a 47 00:02:16,770 --> 00:02:20,339 Sean Aylmer: spike in the number of bidders. CoreLogic said the Sydney clearance 48 00:02:20,340 --> 00:02:23,730 Sean Aylmer: rate was 74. 5%, down a touch from a week 49 00:02:23,730 --> 00:02:27,000 Sean Aylmer: ago. In Melbourne, nearly 73% of homes under the hammer 50 00:02:27,000 --> 00:02:29,760 Sean Aylmer: were sold. It was the busiest capital city. There was 51 00:02:29,760 --> 00:02:34,020 Sean Aylmer: 863 homes up for sale. Adelaide's clearance rate was just 52 00:02:34,020 --> 00:02:38,190 Sean Aylmer: under 68%. Canberra was just over 70%, and Brisbane came 53 00:02:38,190 --> 00:02:39,330 Sean Aylmer: in at 66%. 54 00:02:39,900 --> 00:02:43,109 Michael Thompson: Sean, surely this is a bit odd, right? This must 55 00:02:43,110 --> 00:02:47,160 Michael Thompson: defy expectations, because the rate rises that everyone's talking about, 56 00:02:47,490 --> 00:02:49,620 Michael Thompson: they don't seem to be having much of an impact. 57 00:02:50,220 --> 00:02:53,309 Sean Aylmer: Yes, it is worrying. It doesn't really make that much 58 00:02:53,309 --> 00:02:56,010 Sean Aylmer: sense. I mean, the full impact of the 12 rates 59 00:02:56,160 --> 00:02:59,730 Sean Aylmer: that we've had so far, that impact is still to 60 00:02:59,730 --> 00:03:03,150 Sean Aylmer: be felt, and some market economists are talking about at 61 00:03:03,150 --> 00:03:07,530 Sean Aylmer: least two more rate rises, and we know house prices 62 00:03:07,740 --> 00:03:11,370 Sean Aylmer: are rising. It is a bit unusual. Now, Westpac chief 63 00:03:11,370 --> 00:03:14,429 Sean Aylmer: economist, Bill Evans, he's one who thinks there'll be two 64 00:03:14,429 --> 00:03:17,730 Sean Aylmer: more rate rises. Last week he came out and lowered 65 00:03:17,730 --> 00:03:21,840 Sean Aylmer: his forecast for economic growth. Bill Evans is, well, you 66 00:03:21,840 --> 00:03:23,220 Sean Aylmer: would say a veteran, but he's one of the best 67 00:03:23,220 --> 00:03:27,000 Sean Aylmer: economists around, so he's really well worth listening to. Two 68 00:03:27,000 --> 00:03:30,089 Sean Aylmer: more rate rises, slower economic growth. In fact, he reckons 69 00:03:30,090 --> 00:03:33,659 Sean Aylmer: the economy will grow by just 0. 6% this year, 70 00:03:33,660 --> 00:03:38,970 Sean Aylmer: 1% 2024. He said the key driver of the insipid 71 00:03:39,180 --> 00:03:42,900 Sean Aylmer: growth outlook is household consumption. The Reserve Bank, it has 72 00:03:42,900 --> 00:03:45,690 Sean Aylmer: higher growth forecast, but it's also worried about household spending. 73 00:03:45,929 --> 00:03:47,880 Sean Aylmer: Some economists out there reckon that there's about a one 74 00:03:47,880 --> 00:03:51,299 Sean Aylmer: in three chance that we'll go into a recession. So 75 00:03:51,299 --> 00:03:54,839 Sean Aylmer: all that's going on, yet people are still spending money 76 00:03:55,140 --> 00:03:58,890 Sean Aylmer: on housing. It just seems at odds that the economy's 77 00:03:58,890 --> 00:04:02,789 Sean Aylmer: slowing, rates are still rising, and people are piling into 78 00:04:02,790 --> 00:04:03,509 Sean Aylmer: the auction market. 79 00:04:05,010 --> 00:04:07,680 Michael Thompson: I don't understand it. I don't even pretend to understand that. 80 00:04:07,830 --> 00:04:11,910 Sean Aylmer: Sure, I don't either. I don't either. Just in my 81 00:04:11,940 --> 00:04:14,280 Sean Aylmer: career, I have looked at this for many, many years 82 00:04:14,280 --> 00:04:16,170 Sean Aylmer: and it just doesn't seem to make a lot of 83 00:04:16,170 --> 00:04:19,618 Sean Aylmer: sense to me. The Australian housing market is incredibly strong, and 84 00:04:19,620 --> 00:04:24,178 Sean Aylmer: it always has been. The fear is that for 30 85 00:04:24,178 --> 00:04:28,170 Sean Aylmer: years that we've been having lower interest rates effectively, like 86 00:04:28,170 --> 00:04:31,560 Sean Aylmer: falling and then low interest rates, but we may end 87 00:04:31,560 --> 00:04:33,900 Sean Aylmer: up in this period of rising interest rates. And people 88 00:04:33,900 --> 00:04:37,620 Sean Aylmer: have just forgotten what that means, and as a result 89 00:04:37,620 --> 00:04:41,188 Sean Aylmer: the housing market could come a cropper. That's what the 90 00:04:41,190 --> 00:04:45,419 Sean Aylmer: worst case scenario is, but it's still a possibility. Definitely. 91 00:04:46,109 --> 00:04:50,130 Michael Thompson: How much does talk and discussion of, say, the population 92 00:04:50,130 --> 00:04:53,070 Michael Thompson: rising and this massive influx of people coming into the 93 00:04:53,070 --> 00:04:55,710 Michael Thompson: country over the next 18 months, how much does that 94 00:04:55,710 --> 00:05:00,029 Michael Thompson: do to encourage, say, the FOMO, fear of missing out, 95 00:05:00,389 --> 00:05:03,540 Michael Thompson: and this need to get into the property market quickly? 96 00:05:03,839 --> 00:05:06,839 Michael Thompson: Does just talking about it, and all of the coverage 97 00:05:06,839 --> 00:05:11,040 Michael Thompson: about that, perhaps contribute to this urgency? 98 00:05:11,430 --> 00:05:13,800 Sean Aylmer: Yeah, perhaps. I mean, it certainly contributes to it. I 99 00:05:13,800 --> 00:05:16,049 Sean Aylmer: don't know how much it is. That might be the 100 00:05:16,050 --> 00:05:18,809 Sean Aylmer: reason. I also think the FOMO, when you hear that 101 00:05:18,809 --> 00:05:21,659 Sean Aylmer: house prices in Sydney are down 14% or 15%, and in 102 00:05:21,660 --> 00:05:24,570 Sean Aylmer: Melbourne they're down 10% or 11%, you think, oh, now's the time 103 00:05:24,570 --> 00:05:28,020 Sean Aylmer: to jump into, without even thinking about the migration stuff. 104 00:05:28,380 --> 00:05:31,200 Sean Aylmer: So I think there are a few factors at play here. 105 00:05:31,589 --> 00:05:33,630 Michael Thompson: And how good is Bill Evans' use of the word 106 00:05:33,630 --> 00:05:38,371 Michael Thompson: insipid to describe the growth? 107 00:05:38,371 --> 00:05:38,371 Sean Aylmer: Sensational. 108 00:05:38,371 --> 00:05:38,372 Michael Thompson: I love it. 109 00:05:38,372 --> 00:05:38,373 Sean Aylmer: Yeah. 110 00:05:38,373 --> 00:05:40,738 Michael Thompson: Local markets, Sean, how did we finish up on Friday? 111 00:05:41,100 --> 00:05:44,849 Sean Aylmer: S&P/ASX 200 closed up 1% on Friday, it was a 112 00:05:44,850 --> 00:05:48,960 Sean Aylmer: very good day. Finished at 7, 251 points, that was five 113 00:05:49,200 --> 00:05:51,928 Sean Aylmer: rises in a row. Mind you, most of them were 114 00:05:51,928 --> 00:05:54,810 Sean Aylmer: small, apart from Fridays. It's the best run since April, 115 00:05:54,870 --> 00:05:57,450 Sean Aylmer: and the market is at its highest level in more 116 00:05:57,450 --> 00:05:59,969 Sean Aylmer: than three weeks. The energy sector led the way, thanks 117 00:05:59,969 --> 00:06:02,490 Sean Aylmer: to higher energy prices. While the tech stocks also did 118 00:06:02,490 --> 00:06:05,190 Sean Aylmer: pretty well, the healthcare index was the only one of 119 00:06:05,190 --> 00:06:07,800 Sean Aylmer: the 11 sub indices to end the day lower. Santos 120 00:06:07,800 --> 00:06:11,730 Sean Aylmer: was up 4%. Woodside Energy 3%, gold company Northern Star 121 00:06:11,730 --> 00:06:15,809 Sean Aylmer: rose 4. 5%. Among the tech stocks the best large 122 00:06:15,809 --> 00:06:18,390 Sean Aylmer: caps were REA 0. They were both up around 3%. 123 00:06:18,779 --> 00:06:21,060 Sean Aylmer: Banks were pretty good, led by Commonwealth Bank and Westpac. 124 00:06:21,390 --> 00:06:24,450 Sean Aylmer: Iron ore miners underperformed the broader market, and the retailers 125 00:06:24,450 --> 00:06:24,990 Sean Aylmer: were mixed. 126 00:06:25,350 --> 00:06:27,000 Michael Thompson: And what's happening on the international markets? 127 00:06:27,510 --> 00:06:29,580 Sean Aylmer: Did you know that, well, Wall Street closed just a 128 00:06:29,580 --> 00:06:32,459 Sean Aylmer: touch lower over the weekend, right, and the news late 129 00:06:32,460 --> 00:06:35,129 Sean Aylmer: last week, inflation figures came out, came in at about 130 00:06:35,129 --> 00:06:38,789 Sean Aylmer: 4%, lower than thought. Good news there. Also jumping consumer 131 00:06:38,790 --> 00:06:41,730 Sean Aylmer: sentiment in the U. S. All that's good. But really, 132 00:06:41,730 --> 00:06:43,618 Sean Aylmer: Michael, what I want to talk to you about is that the markets are 133 00:06:43,620 --> 00:06:47,430 Sean Aylmer: closed tonight. Did you know that, for the Juneteenth holiday? 134 00:06:47,520 --> 00:06:49,469 Sean Aylmer: Do you know what the Juneteenth holiday is? 135 00:06:49,740 --> 00:06:53,459 Michael Thompson: No, but if I'm honest, I don't really understand what 136 00:06:53,459 --> 00:06:56,069 Michael Thompson: it's for, but I've seen so much more about it 137 00:06:56,639 --> 00:06:58,949 Michael Thompson: over the last couple of years. 138 00:06:59,549 --> 00:07:02,070 Sean Aylmer: Oh, you're a genius, because the first was in 2021, so it's not 139 00:07:02,790 --> 00:07:06,600 Sean Aylmer: a long time holiday. This is only the third Juneteenth 140 00:07:06,990 --> 00:07:11,399 Sean Aylmer: holiday. What it is President Joe Biden signed legislation in 2021 to 141 00:07:11,400 --> 00:07:16,170 Sean Aylmer: make June the 19th a federal holiday. It's the 12th federal holiday 142 00:07:16,170 --> 00:07:19,740 Sean Aylmer: in the U. S. It basically goes back to June 19th 143 00:07:19,830 --> 00:07:25,739 Sean Aylmer: 1865, which was the day the last enslaved people in 144 00:07:25,740 --> 00:07:28,440 Sean Aylmer: the United States learned that they were free. 145 00:07:28,980 --> 00:07:29,700 Michael Thompson: Oh, wow. 146 00:07:29,940 --> 00:07:30,630 Sean Aylmer: That's pretty cool. 147 00:07:31,260 --> 00:07:35,220 Michael Thompson: That is amazing. And so that is today, June 19th? 148 00:07:35,280 --> 00:07:36,240 Sean Aylmer: Yeah, Juneteenth. 149 00:07:36,570 --> 00:07:36,571 Michael Thompson: Okay. 150 00:07:36,571 --> 00:07:39,059 Sean Aylmer: And that's why markets are closed. And just before we leave 151 00:07:39,059 --> 00:07:43,469 Sean Aylmer: international markets, Earl's up a bit. Gold's flat. Coal's come 152 00:07:43,469 --> 00:07:45,419 Sean Aylmer: off. It had been up late last week and we 153 00:07:45,420 --> 00:07:48,149 Sean Aylmer: saw some of the coal companies do really well locally. 154 00:07:48,150 --> 00:07:50,070 Sean Aylmer: It's come off over the weekend, so you may see 155 00:07:50,250 --> 00:07:52,530 Sean Aylmer: some of the share prices of the New Hopes, Whitehavens, 156 00:07:52,530 --> 00:07:55,530 Sean Aylmer: et cetera, fall back a bit today. Not that I'm 157 00:07:55,530 --> 00:07:59,010 Sean Aylmer: forecasting share markets, no idea on that one. And the 158 00:07:59,010 --> 00:08:01,679 Sean Aylmer: Aussie Dollar, Michael, not far off, 69 U. S. cents. 159 00:08:01,679 --> 00:08:03,690 Sean Aylmer: And if you're someone who in a couple of months 160 00:08:03,690 --> 00:08:06,389 Sean Aylmer: has to go overseas briefly to the U. S. I 161 00:08:06,389 --> 00:08:07,800 Sean Aylmer: think you'd be pretty happy with that, Michael. 162 00:08:08,490 --> 00:08:08,910 Michael Thompson: Oh, god. 163 00:08:08,910 --> 00:08:09,660 Sean Aylmer: Go, you Aussie Dollar. 164 00:08:09,960 --> 00:08:13,140 Michael Thompson: Oh, you can't just be there barracking for it to 165 00:08:13,140 --> 00:08:17,250 Michael Thompson: actually climb just because you have a brief U. S. 166 00:08:17,309 --> 00:08:19,409 Michael Thompson: trip planned for a couple of months time. 167 00:08:19,590 --> 00:08:21,630 Sean Aylmer: Self- interest, that's what it's all about. 168 00:08:21,870 --> 00:08:24,359 Michael Thompson: Yes, apparently so. We'll be back in a moment with 169 00:08:24,359 --> 00:08:33,780 Michael Thompson: the rest of the day's business news. Sean, former Liberal, 170 00:08:33,780 --> 00:08:38,160 Michael Thompson: now independent Senator, David Van, has thus far refused to 171 00:08:38,160 --> 00:08:42,240 Michael Thompson: quit politics amid accusations of sexual harassment, but will take 172 00:08:42,240 --> 00:08:44,850 Michael Thompson: leave and will miss the final week of Parliament, before 173 00:08:44,850 --> 00:08:45,780 Michael Thompson: the mid- winter break. 174 00:08:46,200 --> 00:08:49,500 Sean Aylmer: Over the weekend Senator Van quit the Liberal Party, that 175 00:08:49,500 --> 00:08:52,170 Sean Aylmer: was Saturday, having been kicked out of the party room 176 00:08:52,170 --> 00:08:55,530 Sean Aylmer: last week. It follows allegations of sexual harassment by Independent 177 00:08:55,530 --> 00:08:59,699 Sean Aylmer: Senator, Lydia Thorpe, under parliamentary privilege on Wednesday, which Van 178 00:08:59,699 --> 00:09:03,480 Sean Aylmer: strenuously denies. Those claims are followed by former Liberal National 179 00:09:03,480 --> 00:09:07,740 Sean Aylmer: Party Senator, Amanda Stoker, claiming Van had squeezed her bottom. 180 00:09:08,220 --> 00:09:11,069 Sean Aylmer: Opposition leader, Peter Dutton, has said he's also aware of 181 00:09:11,070 --> 00:09:14,370 Sean Aylmer: a third complaint against Van from a woman who has 182 00:09:14,370 --> 00:09:17,670 Sean Aylmer: not come forward. Dutton said Van should resign from the 183 00:09:17,670 --> 00:09:21,600 Sean Aylmer: Parliament sooner rather than later, and seek the help that 184 00:09:21,600 --> 00:09:24,120 Sean Aylmer: he needs. That call to quit was backed by plenty 185 00:09:24,120 --> 00:09:28,499 Sean Aylmer: of senior Liberals, including Simon Birmingham, Maurice Payne, Anne Ruston. 186 00:09:28,590 --> 00:09:32,218 Sean Aylmer: Michaelia Cash was another one. Certainly, he's under pressure to go. 187 00:09:32,550 --> 00:09:35,699 Michael Thompson: Yeah, he sure is. Sean, how about this one? Household 188 00:09:35,699 --> 00:09:40,200 Michael Thompson: electricity prices are set to rise by more than 50% 189 00:09:40,679 --> 00:09:45,120 Michael Thompson: in some cases as retailers advise of price rises far 190 00:09:45,120 --> 00:09:49,260 Michael Thompson: exceeding the ones in regulated benchmark tariffs announced last month. 191 00:09:49,290 --> 00:09:52,919 Michael Thompson: 50%, wow, what a hit to the household budget. 192 00:09:53,010 --> 00:09:57,030 Sean Aylmer: Yeah. So I got the email on Friday. Mine is going 193 00:09:57,030 --> 00:10:01,470 Sean Aylmer: up more like 20%, and I was, so I mean, had a bit of a look 194 00:10:01,470 --> 00:10:04,920 Sean Aylmer: around as a result of that, getting it myself. Some are going 195 00:10:04,920 --> 00:10:07,319 Sean Aylmer: up 50%, and these are the ones that you are 196 00:10:07,320 --> 00:10:09,660 Sean Aylmer: actually paying. So we're not talking about the wholesale prices 197 00:10:10,109 --> 00:10:14,340 Sean Aylmer: that the energy regulator sets, this is actually certainly I'll 198 00:10:14,340 --> 00:10:17,429 Sean Aylmer: be paying 20% more for my tariff and some will 199 00:10:17,429 --> 00:10:19,590 Sean Aylmer: be a lot more. So it was last week AGL 200 00:10:19,590 --> 00:10:23,760 Sean Aylmer: Energy advised customers of increases in- peak and off- peak 201 00:10:23,849 --> 00:10:28,170 Sean Aylmer: tariffs. They'll kick in on July 1. While the average 202 00:10:28,170 --> 00:10:30,780 Sean Aylmer: rise for a AGL's household customers in New South Wales on 203 00:10:30,780 --> 00:10:36,570 Sean Aylmer: variable rate market contracts is 29.7%, the top rate, the 204 00:10:36,570 --> 00:10:41,580 Sean Aylmer: top increase, is 51%, according to the financial review. Origin 205 00:10:41,580 --> 00:10:45,780 Sean Aylmer: Energy also told customers last week of price increases, as 206 00:10:45,780 --> 00:10:49,290 Sean Aylmer: has government owned Red Energy, part of Snowy Hydro, for 207 00:10:49,290 --> 00:10:53,728 Sean Aylmer: both electricity and gas. EnergyAustralia is expected to advise its 208 00:10:53,730 --> 00:10:57,360 Sean Aylmer: customers of increases in its market offers within days. Now 209 00:10:57,360 --> 00:10:59,610 Sean Aylmer: the jump in some cases exceeds or even doubles the 210 00:10:59,610 --> 00:11:05,759 Sean Aylmer: rises of 20% and 25% for regulated benchmark tariffs approved by 211 00:11:05,760 --> 00:11:10,200 Sean Aylmer: the Australian Energy Regulator. They're the wholesale prices. Retail prices, 212 00:11:10,500 --> 00:11:12,660 Sean Aylmer: in some cases, are double that level. As you said, 213 00:11:12,660 --> 00:11:14,040 Sean Aylmer: 50%. Amazing. 214 00:11:14,220 --> 00:11:19,500 Michael Thompson: Ouch. And Sean, on a somewhat related topic, AGL says 215 00:11:19,500 --> 00:11:22,770 Michael Thompson: core profit next financial year will be at least double, 216 00:11:22,770 --> 00:11:26,370 Michael Thompson: helped by higher wholesale power prices and an improved performance 217 00:11:26,370 --> 00:11:27,270 Michael Thompson: at power plants. 218 00:11:27,630 --> 00:11:30,179 Sean Aylmer: It triggered a 10% jump in the electricity and gas 219 00:11:30,179 --> 00:11:33,270 Sean Aylmer: supplier share price on Friday. It hit its highest level 220 00:11:33,270 --> 00:11:36,510 Sean Aylmer: in two years. However, the company also downgraded its dividend 221 00:11:36,599 --> 00:11:40,349 Sean Aylmer: payout policy. New Chief Executive, Damian Nicks, said AGL wants 222 00:11:40,350 --> 00:11:42,718 Sean Aylmer: to focus on striking a balance between investing in the 223 00:11:42,720 --> 00:11:46,860 Sean Aylmer: opportunities of the transition economy while maintaining a healthy balance 224 00:11:46,860 --> 00:11:49,890 Sean Aylmer: sheet, providing shareholder returns. Quite a job, mind you, because 225 00:11:49,890 --> 00:11:53,849 Sean Aylmer: AGL is the country's largest emitter of carbon, it has 226 00:11:53,849 --> 00:11:56,309 Sean Aylmer: a massive job ahead to transition to a green energy 227 00:11:56,309 --> 00:12:00,390 Sean Aylmer: operator. It will involve billions of dollars of investment. Quite 228 00:12:00,390 --> 00:12:03,810 Sean Aylmer: the journey. Biggest shareholder is Atlassian founder, Mike Cannon- Brookes. 229 00:12:04,500 --> 00:12:07,770 Michael Thompson: Sean, Covid continues to transmit through the country, with the 230 00:12:07,770 --> 00:12:12,299 Michael Thompson: death toll last year four times higher than during the 231 00:12:12,300 --> 00:12:13,980 Michael Thompson: first two years of the pandemic. 232 00:12:14,429 --> 00:12:17,728 Sean Aylmer: Almost 10,000 people died last year, that's according to the 233 00:12:17,730 --> 00:12:22,410 Sean Aylmer: Bureau of Statistics. Deaths from Covid- 19 this year remained high. 234 00:12:22,710 --> 00:12:29,218 Sean Aylmer: There's been 1, 314 fatalities recorded between January and April, 235 00:12:29,820 --> 00:12:33,870 Sean Aylmer: much more than previous horror flu seasons. However, the rate 236 00:12:33,870 --> 00:12:37,650 Sean Aylmer: of deaths has also slowed significantly compared to a year 237 00:12:37,650 --> 00:12:40,470 Sean Aylmer: ago. Now, according to a story in the Sydney Morning Herald, 238 00:12:40,740 --> 00:12:44,370 Sean Aylmer: as of Friday there were 70 Australians in intensive care with Covid- 239 00:12:44,370 --> 00:12:49,260 Sean Aylmer: 19. Deaths have been slowly on the rise, from 124 240 00:12:49,469 --> 00:12:53,070 Sean Aylmer: in the week ending May 19 to 205 in the 241 00:12:53,070 --> 00:12:58,710 Sean Aylmer: week ending June 16, that's last week ending Friday. Top 242 00:12:58,890 --> 00:13:04,468 Sean Aylmer: epidemiologists now believe the 7th wave of Covid is peaking, 243 00:13:04,469 --> 00:13:08,309 Sean Aylmer: or perhaps it has peaked, or is very close to. 244 00:13:08,849 --> 00:13:12,629 Sean Aylmer: Australia had significantly fewer deaths than usual in 2020 when 245 00:13:12,629 --> 00:13:15,840 Sean Aylmer: Covid hit, mainly due to the absence of influenza, but 246 00:13:15,840 --> 00:13:20,578 Sean Aylmer: then vastly more deaths than usual in 2022, due to 247 00:13:20,610 --> 00:13:23,730 Sean Aylmer: Covid and other pandemic related impacts. In the first couple 248 00:13:23,730 --> 00:13:26,219 Sean Aylmer: of months of this year the Actuaries Institute found that 249 00:13:26,549 --> 00:13:30,150 Sean Aylmer: there were 1, 500 more deaths than would've been expected if 250 00:13:30,150 --> 00:13:32,850 Sean Aylmer: the pandemic hadn't happened. There you go. 251 00:13:33,630 --> 00:13:38,460 Michael Thompson: PointsBet has given DraftKings, which lobbed a $ 285 million bid 252 00:13:38,460 --> 00:13:40,770 Michael Thompson: for its business in the United States over the weekend, 253 00:13:41,040 --> 00:13:44,730 Michael Thompson: just nine days to formalize the offer before it proceeds 254 00:13:44,730 --> 00:13:45,478 Michael Thompson: with another offer. 255 00:13:45,990 --> 00:13:49,078 Sean Aylmer: Yes. So according to the Financial Review, the discussions between 256 00:13:49,080 --> 00:13:52,858 Sean Aylmer: the two companies said the ASX- listed wagering group, we're 257 00:13:52,860 --> 00:13:57,510 Sean Aylmer: talking about PointsBet here, will continue to recommend shareholders accept 258 00:13:57,540 --> 00:14:01,049 Sean Aylmer: an earlier offer, which is $ 150 million offer from Florida- 259 00:14:01,049 --> 00:14:05,608 Sean Aylmer: headquartered Fanatics. DraftKings, which is a Nasdaq- listed wagering group, 260 00:14:05,609 --> 00:14:09,270 Sean Aylmer: best known for its fantasy sports contest, lobbed the bid 261 00:14:09,300 --> 00:14:14,010 Sean Aylmer: on Friday night. However, it remains indicative and non- binding. 262 00:14:14,160 --> 00:14:17,849 Sean Aylmer: Now PointsBet is the seventh- largest sports betting operator in the U.S. It 263 00:14:17,849 --> 00:14:21,270 Sean Aylmer: had really struggled to become profitable, so these bids clearly 264 00:14:21,750 --> 00:14:24,810 Sean Aylmer: very interesting to the board. It's also considering a sale 265 00:14:24,810 --> 00:14:26,130 Sean Aylmer: of its Australian operations. 266 00:14:26,490 --> 00:14:30,270 Michael Thompson: Just a terminology thing here, Sean, indicative and non- binding 267 00:14:30,270 --> 00:14:33,359 Michael Thompson: just essentially means that it's an intention at this stage, 268 00:14:33,360 --> 00:14:36,059 Michael Thompson: and so PointsBet have said, hey, formalize it in nine days 269 00:14:36,059 --> 00:14:36,690 Michael Thompson: and make it... 270 00:14:36,870 --> 00:14:37,110 Sean Aylmer: Yeah. 271 00:14:37,200 --> 00:14:39,270 Michael Thompson: What's the opposite of indicative and non- binding? 272 00:14:39,929 --> 00:14:43,530 Sean Aylmer: So, basically you're right. What they want to get to 273 00:14:43,530 --> 00:14:47,520 Sean Aylmer: is a non- conditional binding offer, which means that DraftKings 274 00:14:47,580 --> 00:14:50,849 Sean Aylmer: must pay the money that they're offering. Not at that 275 00:14:50,849 --> 00:14:52,290 Sean Aylmer: point now, but that's what they want to get to. 276 00:14:53,160 --> 00:14:57,060 Michael Thompson: Okay. This is an interesting story, and actually pretty worrying, 277 00:14:57,179 --> 00:15:01,860 Michael Thompson: Sean. An artificially generated video of Commonwealth Bank boss, Matt 278 00:15:01,860 --> 00:15:06,150 Michael Thompson: Comyn, a fake video, is promoting large returns on investments 279 00:15:06,240 --> 00:15:07,710 Michael Thompson: on both Facebook and Instagram. 280 00:15:08,130 --> 00:15:10,740 Sean Aylmer: The fake Mr. Comyn, who has a U. S. accent, 281 00:15:10,740 --> 00:15:14,669 Sean Aylmer: says investors will automatically generate profits. Now the website being 282 00:15:14,670 --> 00:15:17,879 Sean Aylmer: promoted is not owned by Commonwealth Bank, but it does 283 00:15:17,879 --> 00:15:22,080 Sean Aylmer: demonstrate the challenges facing corporates trying to prevent scammers. The 284 00:15:22,080 --> 00:15:27,000 Sean Aylmer: artificially generated reproduction is known as a deepfake, D- E-E- P- F- A- K- 285 00:15:27,000 --> 00:15:30,900 Sean Aylmer: E, and is increasingly being used to swindle victims. Other 286 00:15:30,900 --> 00:15:35,609 Sean Aylmer: Australian leaders being incorrectly represented on these deepfake videos include 287 00:15:35,609 --> 00:15:39,810 Sean Aylmer: Meriton Managing Director, Harry Triguboff, and busy Chair, Anthony Pratt. 288 00:15:41,490 --> 00:15:43,650 Michael Thompson: I don't want to give too much advice to scammers, 289 00:15:44,429 --> 00:15:46,860 Michael Thompson: Sean, but surely if you're going to go to all the effort 290 00:15:46,860 --> 00:15:47,610 Michael Thompson: of creating a fake video- 291 00:15:47,610 --> 00:15:48,001 Sean Aylmer: I thought the same thing, yes. 292 00:15:48,001 --> 00:15:53,219 Michael Thompson: Like Matt Comyn, surely you can find someone to do an 293 00:15:53,219 --> 00:15:54,569 Michael Thompson: Australian accent. 294 00:15:54,569 --> 00:15:54,899 Sean Aylmer: Yeah. 295 00:15:55,650 --> 00:15:58,140 Michael Thompson: The attention to detail in scams these days is just 296 00:15:58,140 --> 00:15:59,010 Michael Thompson: not what it used to be. 297 00:15:59,010 --> 00:16:00,450 Sean Aylmer: Yeah, I know. I'm with you. 298 00:16:00,840 --> 00:16:04,589 Michael Thompson: Goodness me. Working from home, Sean, last year made the 299 00:16:04,590 --> 00:16:09,030 Michael Thompson: average worker less productive and more anxious, depressed and lonely, 300 00:16:09,150 --> 00:16:11,939 Michael Thompson: according to new academic research. And a big part of 301 00:16:11,940 --> 00:16:13,530 Michael Thompson: the problem, in fact the main part of the problem, 302 00:16:13,530 --> 00:16:16,590 Michael Thompson: was bad managers. Really? 303 00:16:17,250 --> 00:16:20,399 Sean Aylmer: Good managers could actually lessen the negative effects, according to 304 00:16:20,400 --> 00:16:24,149 Sean Aylmer: the study by researchers from the Australian National University, University 305 00:16:24,150 --> 00:16:28,289 Sean Aylmer: of Newcastle and Macquarie University. Broadly, the study found that 306 00:16:28,289 --> 00:16:32,010 Sean Aylmer: people are less productive the more they work from home, 307 00:16:32,010 --> 00:16:35,010 Sean Aylmer: but once people are working from home for a while, 308 00:16:35,700 --> 00:16:38,190 Sean Aylmer: think they get used to it, I suppose, outcomes start 309 00:16:38,190 --> 00:16:42,599 Sean Aylmer: to improve. So companies with more skilled managers and have 310 00:16:42,599 --> 00:16:45,599 Sean Aylmer: people working from home for a while end up with 311 00:16:45,599 --> 00:16:49,080 Sean Aylmer: much better results, in terms of remote and hybrid working. 312 00:16:49,350 --> 00:16:53,400 Sean Aylmer: Now, funny thing about this study, better managers, better results. 313 00:16:55,380 --> 00:16:57,150 Sean Aylmer: I really do wonder whether that's a work from home 314 00:16:57,150 --> 00:16:57,840 Sean Aylmer: issue or not. 315 00:16:58,110 --> 00:17:00,869 Michael Thompson: Yeah. I'm glad you said that, because, I mean, surely 316 00:17:00,870 --> 00:17:04,289 Michael Thompson: the better the manager, the better the result, wherever you're working. 317 00:17:04,559 --> 00:17:05,519 Sean Aylmer: You would think so. 318 00:17:05,789 --> 00:17:07,530 Michael Thompson: Yes. We probably didn't need a study to tell us 319 00:17:07,530 --> 00:17:12,210 Michael Thompson: that. In international news, Sean, U. S. President, Joe Biden, 320 00:17:12,210 --> 00:17:15,180 Michael Thompson: has called for new taxes on the wealthy and corporations, 321 00:17:15,450 --> 00:17:19,920 Michael Thompson: and warned that Republicans would roll back policies he argued 322 00:17:19,920 --> 00:17:21,660 Michael Thompson: had saved the U. S. economy 323 00:17:21,929 --> 00:17:24,720 Sean Aylmer: Sounds like an election campaign, or a re- election campaign 324 00:17:24,720 --> 00:17:29,250 Sean Aylmer: in Joe Biden's case. Over the weekend he was appearing 325 00:17:29,250 --> 00:17:32,670 Sean Aylmer: at a rally with Union members in Philadelphia. He contrasted 326 00:17:32,670 --> 00:17:35,490 Sean Aylmer: his platform with Donald Trump's agenda. He didn't actually use 327 00:17:35,490 --> 00:17:38,820 Sean Aylmer: Donald Trump's name, but he talked about the Republican's agenda. 328 00:17:39,210 --> 00:17:42,329 Sean Aylmer: Very much assigned that Biden wants to put populist economic 329 00:17:42,388 --> 00:17:46,320 Sean Aylmer: issues rather than legal controversies at the center of his 330 00:17:46,320 --> 00:17:49,170 Sean Aylmer: pitch for a second term. The President touted his domestic 331 00:17:49,170 --> 00:17:53,129 Sean Aylmer: achievements, and argued they've fueled economic growth, hot jobs market 332 00:17:53,130 --> 00:17:55,830 Sean Aylmer: and gains from middle class. Now, according to Bloomberg, he 333 00:17:55,830 --> 00:17:58,860 Sean Aylmer: cited laws passed during his first two years in office, 334 00:17:59,129 --> 00:18:02,730 Sean Aylmer: including a climate, health and tax package, and new funding 335 00:18:02,730 --> 00:18:04,860 Sean Aylmer: for infrastructure and semiconductor manufacturing. 336 00:18:05,430 --> 00:18:09,179 Michael Thompson: And, Sean, U. S. Secretary of State, Anthony Blinken, arrived 337 00:18:09,179 --> 00:18:12,540 Michael Thompson: in Beijing yesterday morning for a short diplomatic trip as 338 00:18:12,540 --> 00:18:16,049 Michael Thompson: the Biden administration seeks to stabilize what are pretty strained 339 00:18:16,049 --> 00:18:19,500 Michael Thompson: relations between the world's two biggest economies. 340 00:18:19,710 --> 00:18:22,530 Sean Aylmer: Yes. Big news, really. The top U. S. diplomat, whose 341 00:18:22,530 --> 00:18:25,920 Sean Aylmer: previous attempt to visit China in February was scrapped at 342 00:18:25,920 --> 00:18:27,599 Sean Aylmer: the last minute when the U. S. revealed that an 343 00:18:27,599 --> 00:18:32,309 Sean Aylmer: alleged Chinese spy balloon was floating over American territory, will 344 00:18:32,309 --> 00:18:34,769 Sean Aylmer: have a series of meetings with senior officials over the 345 00:18:34,770 --> 00:18:37,530 Sean Aylmer: two days. While he's on the ground he'll meet the 346 00:18:37,530 --> 00:18:40,950 Sean Aylmer: Chinese Foreign Minister and may also have a meeting with 347 00:18:41,040 --> 00:18:44,638 Sean Aylmer: Chinese President, Xi Jinping. He'll also deliver remarks at a 348 00:18:44,638 --> 00:18:48,150 Sean Aylmer: news conference before he departs. He's actually the most senior U. 349 00:18:48,150 --> 00:18:51,688 Sean Aylmer: S. official to visit China in five years. I think 350 00:18:51,690 --> 00:18:53,638 Sean Aylmer: the world would be a better place if China and the U. 351 00:18:53,638 --> 00:18:54,600 Sean Aylmer: S. were getting on better. 352 00:18:54,930 --> 00:18:58,410 Michael Thompson: Yeah, completely agree. That's very encouraging. But didn't the spy 353 00:18:58,410 --> 00:19:00,510 Michael Thompson: balloon saga blow over quickly? 354 00:19:02,070 --> 00:19:04,800 Sean Aylmer: Blow over, nice. I thought, look, I was waiting for 355 00:19:04,800 --> 00:19:07,349 Sean Aylmer: a pun and I thought in this story the one 356 00:19:07,349 --> 00:19:10,198 Sean Aylmer: thing you'll focus on is this spy balloon. 357 00:19:10,199 --> 00:19:14,009 Michael Thompson: Would you say it was a bit overinflated? 358 00:19:14,550 --> 00:19:15,690 Sean Aylmer: Full of hot air, I thought. 359 00:19:15,810 --> 00:19:18,840 Michael Thompson: Yeah. Oh, well done. Oh, nicely done. Perfect way to 360 00:19:18,840 --> 00:19:19,290 Michael Thompson: finish, Sean. 361 00:19:19,290 --> 00:19:20,430 Sean Aylmer: God, I'm turning into you. 362 00:19:20,550 --> 00:19:22,678 Michael Thompson: You are, and I love it. Up next is the 363 00:19:22,679 --> 00:19:25,648 Michael Thompson: Fear and Greed daily interview. You are speaking with Anto 364 00:19:25,650 --> 00:19:29,790 Michael Thompson: Joseph, CEO of Stropro. This is a great one for investors. 365 00:19:29,969 --> 00:19:32,609 Sean Aylmer: Sure is. I mean, the part of it that I really 366 00:19:32,609 --> 00:19:35,490 Sean Aylmer: like is we talk about what rich people are investing 367 00:19:35,490 --> 00:19:37,530 Sean Aylmer: in. And they're rich for a reason, I reckon, so 368 00:19:37,530 --> 00:19:39,388 Sean Aylmer: it's always good to know what they're investing in, and 369 00:19:39,388 --> 00:19:40,860 Sean Aylmer: it's not bonds, and it's not equities. 370 00:19:41,190 --> 00:19:43,349 Michael Thompson: Yeah, it's worth a listen. It's coming up next in 371 00:19:43,349 --> 00:19:45,960 Michael Thompson: the Fear and Greed playlist on your podcast platform or 372 00:19:45,960 --> 00:19:49,890 Michael Thompson: at fearandgreed. com. au. Also, make sure you check out 373 00:19:49,890 --> 00:19:52,138 Michael Thompson: Fear and Greed - The Week Ahead, with our resident economist, 374 00:19:52,200 --> 00:19:55,440 Michael Thompson: Stephen Koukoulas. A massive week last week, and Steven gives 375 00:19:55,440 --> 00:19:58,770 Michael Thompson: his thoughts on last week and where we're heading. Thank 376 00:19:58,770 --> 00:19:59,309 Michael Thompson: you, Sean. 377 00:19:59,520 --> 00:20:00,299 Sean Aylmer: Thank you, Michael. 378 00:20:00,359 --> 00:20:03,629 Michael Thompson: It's Monday the 19th of June 2023. Make sure you're 379 00:20:03,630 --> 00:20:07,800 Michael Thompson: following the podcast. Join us online on LinkedIn, Instagram, Twitter 380 00:20:07,800 --> 00:20:10,109 Michael Thompson: and Facebook, basically everywhere, and stay up to date on 381 00:20:10,109 --> 00:20:12,540 Michael Thompson: all the business news with Alexa and your Amazon Echo 382 00:20:12,540 --> 00:20:14,789 Michael Thompson: smart speaker. All you have to do is say, " Alexa, 383 00:20:14,790 --> 00:20:17,340 Michael Thompson: play the Fear and Greed Podcast." And the latest episode 384 00:20:17,340 --> 00:20:20,069 Michael Thompson: should just start playing. Grab yours now at amazon. com. 385 00:20:20,700 --> 00:20:22,260 Michael Thompson: au. I'm Michael Thompson, and that was Fear and Greed. Have a great day.