1 00:00:03,630 --> 00:00:07,360 Michael Thompson: It's Friday, the 24th of September 2021. Welcome to the 2 00:00:07,360 --> 00:00:09,610 Michael Thompson: Fear and Greed Business Headlines, where we give you the 3 00:00:09,610 --> 00:00:12,810 Michael Thompson: top five business stories you need to know today in 4 00:00:12,810 --> 00:00:15,700 Michael Thompson: five minutes. I'm Michael Thompson. Good morning, Sean Aylmer. 5 00:00:15,840 --> 00:00:16,510 Sean Aylmer: Morning, Michael. 6 00:00:16,700 --> 00:00:19,370 Michael Thompson: All right. Top five stories in five minutes, let's start. 7 00:00:19,730 --> 00:00:22,750 Michael Thompson: Logical place, story number one. The Commonwealth Bank boss is 8 00:00:22,750 --> 00:00:25,510 Michael Thompson: worried about the speed at which property prices are rising, 9 00:00:25,510 --> 00:00:28,210 Michael Thompson: and says banks should act to cool the market. 10 00:00:28,270 --> 00:00:31,040 Sean Aylmer: Pretty incredible when the country's biggest lender, that makes money 11 00:00:31,040 --> 00:00:34,260 Sean Aylmer: by providing finance to home buyers, calls for a slowdown 12 00:00:34,260 --> 00:00:37,209 Sean Aylmer: in the market. That's exactly what Matt Comyn did yesterday, 13 00:00:37,210 --> 00:00:40,350 Sean Aylmer: appearing before a House of Representatives hearing. He's not worried 14 00:00:40,350 --> 00:00:42,659 Sean Aylmer: about today, but he is worried about 12 months time 15 00:00:42,659 --> 00:00:44,920 Sean Aylmer: and beyond, if things stay as hot as they are. 16 00:00:45,229 --> 00:00:47,529 Sean Aylmer: Now, Mr. Comyn said there'd been more loan applications than 17 00:00:47,530 --> 00:00:51,130 Sean Aylmer: usual, despite the lockdowns, and alongside higher house prices, that 18 00:00:51,130 --> 00:00:53,840 Sean Aylmer: could really be a problem. He was followed by ANZ 19 00:00:54,000 --> 00:00:56,360 Sean Aylmer: boss, Shayne Elliott. He, once again, said he was worried 20 00:00:56,360 --> 00:00:59,620 Sean Aylmer: that the rise in house prices could trigger social problems 21 00:00:59,950 --> 00:01:04,040 Sean Aylmer: in the community. ANZ has noticed borrowers are extending themselves. 22 00:01:04,180 --> 00:01:07,090 Michael Thompson: So, Commonwealth Bank, ANZ, both talking about it. Can the 23 00:01:07,090 --> 00:01:08,280 Michael Thompson: lenders do anything about it? 24 00:01:08,560 --> 00:01:11,190 Sean Aylmer: Well, Commonwealth Bank has already started doing something about it. 25 00:01:11,270 --> 00:01:14,319 Sean Aylmer: They've lifted, what they call the benchmark floor rate, to 26 00:01:14,319 --> 00:01:16,459 Sean Aylmer: five and a half percent. That's the rate the bank 27 00:01:16,490 --> 00:01:20,280 Sean Aylmer: uses when judging whether a borrower can afford repayments, and 28 00:01:20,280 --> 00:01:22,389 Sean Aylmer: isn't far off double the variable interest rate, at the 29 00:01:22,390 --> 00:01:25,110 Sean Aylmer: moment. While the banks want to make more home loans 30 00:01:25,110 --> 00:01:27,940 Sean Aylmer: and make more money from it, it certainly isn't in 31 00:01:27,940 --> 00:01:30,370 Sean Aylmer: their interest if borrowers hit the wall in two or 32 00:01:30,370 --> 00:01:31,590 Sean Aylmer: three or four years time. 33 00:01:31,700 --> 00:01:34,870 Michael Thompson: No, absolutely not. Onto story number two, and some good 34 00:01:34,870 --> 00:01:37,840 Michael Thompson: news. It's been a record week for the national vaccine 35 00:01:37,840 --> 00:01:41,270 Michael Thompson: rollout with two million doses administered over the past seven days. 36 00:01:41,470 --> 00:01:44,760 Sean Aylmer: Sure is. 74% of adults across the country now have 37 00:01:44,760 --> 00:01:49,750 Sean Aylmer: had one jab, and 49. 3% are fully vaccinated. Each 38 00:01:49,750 --> 00:01:52,650 Sean Aylmer: vaccination is a step closer to easing restrictions in New 39 00:01:52,650 --> 00:01:55,860 Sean Aylmer: South Wales, Victoria, and the ACT. It's a step closer 40 00:01:55,860 --> 00:01:59,020 Sean Aylmer: to the reopening of domestic and international borders. And the 41 00:01:59,020 --> 00:02:02,330 Sean Aylmer: benefits of vaccinations are clear in hospitalization rates. There's a 42 00:02:02,330 --> 00:02:06,280 Sean Aylmer: disproportionate number of people being admitted into hospitals who haven't 43 00:02:06,300 --> 00:02:09,430 Sean Aylmer: been vaccinated at all. The bad news yesterday was the 44 00:02:09,430 --> 00:02:13,910 Sean Aylmer: case numbers in Victoria, they're still rising. 766 yesterday, the 45 00:02:13,910 --> 00:02:17,209 Sean Aylmer: highest daily total since the start of the pandemic, and 46 00:02:17,210 --> 00:02:20,840 Sean Aylmer: four deaths. In New South Wales, the number was 1063, and 47 00:02:21,139 --> 00:02:22,970 Sean Aylmer: 16 cases in the ACT. 48 00:02:23,169 --> 00:02:27,940 Michael Thompson: All right. That story, to now. Billionaire retailer, Solomon Lew, 49 00:02:27,940 --> 00:02:31,070 Michael Thompson: whose group, Premier Investments, was a big beneficiary of government 50 00:02:31,070 --> 00:02:34,359 Michael Thompson: support during the COVID pandemic, has actually now called for 51 00:02:34,360 --> 00:02:38,900 Michael Thompson: compulsory vaccinations and temperature checks for people entering shopping centers. 52 00:02:39,250 --> 00:02:42,160 Sean Aylmer: Exactly. He thinks when you enter a shopping mall, rather 53 00:02:42,160 --> 00:02:45,010 Sean Aylmer: than the shops themselves, you need to be checked to 54 00:02:45,010 --> 00:02:47,639 Sean Aylmer: make sure you're vaccinated. If you're not, you don't get 55 00:02:47,639 --> 00:02:49,910 Sean Aylmer: in. As he said, " Who wants to sit next to 56 00:02:49,910 --> 00:02:52,400 Sean Aylmer: someone in a food court, if you're worried that they 57 00:02:52,400 --> 00:02:55,040 Sean Aylmer: may have COVID?" He was speaking out for announcing, and 58 00:02:55,040 --> 00:02:57,950 Sean Aylmer: almost doubling, a full year profits. Premier, remember, had a 59 00:02:57,950 --> 00:03:00,780 Sean Aylmer: huge fight with landlords last year, refusing to pay rent 60 00:03:00,780 --> 00:03:04,079 Sean Aylmer: during COVID lockdowns, and then they took the JobKeeper payments, 61 00:03:04,500 --> 00:03:07,060 Sean Aylmer: they were very heavily criticized for that, and they have given 62 00:03:07,060 --> 00:03:09,959 Sean Aylmer: some of that back. Premier includes stores like Smiggle, Just 63 00:03:09,960 --> 00:03:12,040 Sean Aylmer: Jeans, Portmans, and Peter Alexander. 64 00:03:12,350 --> 00:03:15,040 Michael Thompson: All right. Number four. What's the story about a massive 65 00:03:15,040 --> 00:03:18,510 Michael Thompson: cable link between the Northern Territory and Singapore to provide 66 00:03:18,510 --> 00:03:19,210 Michael Thompson: clean energy? 67 00:03:19,380 --> 00:03:21,760 Sean Aylmer: Well, the science in this story really amazes me, as 68 00:03:21,760 --> 00:03:24,609 Sean Aylmer: much as the money involved. The Indonesian government yesterday backed 69 00:03:24,610 --> 00:03:27,990 Sean Aylmer: a plan known as the Australia- Asia PowerLink to build 70 00:03:27,990 --> 00:03:31,310 Sean Aylmer: a four and a half thousand kilometer underwater cable to 71 00:03:31,460 --> 00:03:36,540 Sean Aylmer: deliver energy to Singapore via Indonesia from Tennant Creek, in 72 00:03:36,540 --> 00:03:39,170 Sean Aylmer: the Northern Territory. There's a massive solar farm to be 73 00:03:39,310 --> 00:03:43,160 Sean Aylmer: constructed at Tennant Creek. It'll generate renewable energy, it will 74 00:03:43,160 --> 00:03:46,810 Sean Aylmer: pass through Indonesia to Singapore via that cable. There'll be 75 00:03:46,810 --> 00:03:49,600 Sean Aylmer: massive batteries to ensure reliability of supply. And the whole 76 00:03:49,600 --> 00:03:52,370 Sean Aylmer: thing will cost around $ 30 billion. Now, it's backed by 77 00:03:52,370 --> 00:03:55,440 Sean Aylmer: two of Australia's richest people, Andrew Forrest from Fortescue Metals 78 00:03:55,690 --> 00:03:58,530 Sean Aylmer: and Mike Cannon- Brookes from Atlassian. It will be the 79 00:03:58,530 --> 00:04:01,730 Sean Aylmer: largest renewable energy project in the world. There's still a 80 00:04:01,730 --> 00:04:04,170 Sean Aylmer: long way to go, but wow, what a good start. 81 00:04:04,170 --> 00:04:04,910 Sean Aylmer: And good luck to them. 82 00:04:05,080 --> 00:04:07,710 Michael Thompson: All right, we've saved my favorite story for last. Number 83 00:04:07,710 --> 00:04:11,550 Michael Thompson: five, the corporate watchdog has warned against pump and dump 84 00:04:11,550 --> 00:04:14,170 Michael Thompson: schemes. Now, there was one of these earlier this month, 85 00:04:14,190 --> 00:04:17,680 Michael Thompson: a tiny gold miner, Australasian Gold, jumped more than 80% 86 00:04:17,680 --> 00:04:20,820 Michael Thompson: in just 20 minutes. Sean, let's start with, what is 87 00:04:20,920 --> 00:04:21,900 Michael Thompson: a pump and dump scheme? 88 00:04:22,020 --> 00:04:24,839 Sean Aylmer: Essentially, investors buy a stack of the stock, go to 89 00:04:24,839 --> 00:04:28,760 Sean Aylmer: investor websites and social media feeds, at best, they promote 90 00:04:28,760 --> 00:04:31,070 Sean Aylmer: the stock, at worst, they actually tell lies about it. 91 00:04:31,070 --> 00:04:33,919 Sean Aylmer: It causes other people to buy it, pushes up the 92 00:04:33,920 --> 00:04:36,969 Sean Aylmer: price, once that price is higher, they dump it. They 93 00:04:36,970 --> 00:04:40,160 Sean Aylmer: sell out, and they make a tidy little profit. Totally 94 00:04:40,160 --> 00:04:43,270 Sean Aylmer: illegal, of course. And the Australian Securities Investments Commission is 95 00:04:43,270 --> 00:04:46,770 Sean Aylmer: not happy. The regulator warned yesterday that punters using social 96 00:04:46,770 --> 00:04:50,410 Sean Aylmer: media to ramp up a stock price actually face jail time. 97 00:04:50,610 --> 00:04:51,480 Michael Thompson: Does it happen often? 98 00:04:51,830 --> 00:04:53,779 Sean Aylmer: Well, it's happening more often now. In fact, there was 99 00:04:53,779 --> 00:04:57,320 Sean Aylmer: a case yesterday, Aura Energy, had been suspended from trading, 100 00:04:57,320 --> 00:04:59,990 Sean Aylmer: it re- entered the market, its share price went from 0. 101 00:05:00,360 --> 00:05:03,130 Sean Aylmer: 3 of one cent, three tenths of a cent, to 102 00:05:03,140 --> 00:05:06,550 Sean Aylmer: 27 cents. That's more than 8000%, and it was a 103 00:05:06,550 --> 00:05:09,839 Sean Aylmer: pump and dump target, ahead of relisting. It's criminal behavior, 104 00:05:09,839 --> 00:05:12,220 Sean Aylmer: and I hope ASIC throws the book at the perpetrators. 105 00:05:12,520 --> 00:05:15,260 Michael Thompson: Yeah, it's extraordinary. All right, there we go, five stories 106 00:05:15,260 --> 00:05:16,940 Michael Thompson: in five minutes. Thank you very much, Sean. 107 00:05:17,010 --> 00:05:17,619 Sean Aylmer: Thank you, Michael. 108 00:05:17,700 --> 00:05:20,279 Michael Thompson: It's Friday, the 24th of September, thank you very much 109 00:05:20,279 --> 00:05:22,529 Michael Thompson: for your company today. If you want more than five 110 00:05:22,529 --> 00:05:25,110 Michael Thompson: minutes, have a look for our longer daily podcast called 111 00:05:25,110 --> 00:05:27,589 Michael Thompson: Fear and Greed. I'm Michael Thompson, and that was the 112 00:05:27,589 --> 00:05:29,870 Michael Thompson: Fear and Greed Business Headlines. Have a great day.