1 00:00:03,920 --> 00:00:07,320 Speaker 1: It's Tuesday, the thirtieth of July twenty twenty four. Welcome 2 00:00:07,360 --> 00:00:09,680 Speaker 1: to the Fast five Business News by Fear and Greed, 3 00:00:09,680 --> 00:00:11,400 Speaker 1: where we give you the top five business stories you 4 00:00:11,440 --> 00:00:13,960 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:14,000 --> 00:00:15,400 Speaker 1: and good morning, Sean Aylmer. 6 00:00:15,560 --> 00:00:17,040 Speaker 2: Good morning Michael Show. 7 00:00:17,040 --> 00:00:20,439 Speaker 1: On five stories five minutes. Let's go story number one. 8 00:00:20,680 --> 00:00:24,800 Speaker 1: The banking Regulator remains worried about the outlook for people 9 00:00:24,840 --> 00:00:27,600 Speaker 1: repaying their home loans, telling lenders like the Big four 10 00:00:27,640 --> 00:00:32,519 Speaker 1: banks to maintain a three percentage point serviceability buffer. 11 00:00:32,720 --> 00:00:35,600 Speaker 3: That's the amount above the advertised rate that newborrowers must 12 00:00:35,640 --> 00:00:38,080 Speaker 3: be able to afford to pay. If someone takes out 13 00:00:38,080 --> 00:00:40,440 Speaker 3: a homeland on a seven percent interest rate, the three 14 00:00:40,479 --> 00:00:43,639 Speaker 3: percentage point serviceability buffer means banks will need to make 15 00:00:43,680 --> 00:00:46,800 Speaker 3: sure those people can repay a ten percent loan. The 16 00:00:46,800 --> 00:00:50,159 Speaker 3: Australian Prudential Regulation Authority said in reaching its decision to 17 00:00:50,200 --> 00:00:53,199 Speaker 3: maintain the relatively higher buffer, it took into account the 18 00:00:53,280 --> 00:00:55,920 Speaker 3: uncertain interest rate and economic outlook, with higher levels of 19 00:00:55,920 --> 00:00:59,880 Speaker 3: household deaded inflation still above the reserve banks target range, 20 00:01:00,040 --> 00:01:04,640 Speaker 3: as well as ongoing geopolitical instability. Balancing these risks. At least, 21 00:01:04,640 --> 00:01:07,880 Speaker 3: the quality of new housing lending remains good arearsed. Rates 22 00:01:07,880 --> 00:01:12,560 Speaker 3: on mortgages and business lending also are relatively low. Apparalso 23 00:01:12,600 --> 00:01:14,960 Speaker 3: said credit growth for home loans is now below the 24 00:01:15,000 --> 00:01:19,080 Speaker 3: long term marriage for business credit, it's slightly above historical norms. 25 00:01:19,600 --> 00:01:22,920 Speaker 1: Sean, given interest rates aren't actually expected to rise that 26 00:01:23,120 --> 00:01:27,240 Speaker 1: much more, it's three percentage points as a buffer too much. 27 00:01:27,920 --> 00:01:30,319 Speaker 3: Perhaps it does make it harder for people to get 28 00:01:30,319 --> 00:01:33,040 Speaker 3: a home loan, particularly those on lower incomes, and given 29 00:01:33,040 --> 00:01:35,479 Speaker 3: the rate cycles turning, it seems to make less sense 30 00:01:35,520 --> 00:01:37,360 Speaker 3: now than perhaps a couple of years ago when rates 31 00:01:37,360 --> 00:01:39,759 Speaker 3: were very low. Having said that if the economy goes 32 00:01:39,800 --> 00:01:43,320 Speaker 3: into recession, then lower income households could suffer most Certainly, 33 00:01:43,319 --> 00:01:46,160 Speaker 3: these tighter credit standards could help slow the housing market. 34 00:01:46,400 --> 00:01:51,080 Speaker 3: Price growth is slowing. Bloction clearance rates remained pretty good 35 00:01:51,160 --> 00:01:53,680 Speaker 3: over the weekend. The preliminary clear and straight nationally was 36 00:01:53,760 --> 00:01:56,440 Speaker 3: up one percentage point to seventy two point two percent. 37 00:01:56,480 --> 00:01:59,600 Speaker 3: Sydney led the way, Adelaide actually ed the way Sydney 38 00:01:59,640 --> 00:02:03,280 Speaker 3: came into second. Melman was not too bad either. We'll 39 00:02:03,320 --> 00:02:05,680 Speaker 3: know more about prospects for the housing market and whether 40 00:02:05,680 --> 00:02:09,320 Speaker 3: the regulator has been too cautious in its mortgage serviceability buffer. 41 00:02:09,400 --> 00:02:11,639 Speaker 3: After tomorrow's inflation data is released. 42 00:02:11,560 --> 00:02:14,120 Speaker 1: All right, I'm just storry number two now. And hospitality 43 00:02:14,120 --> 00:02:17,480 Speaker 1: business has failed at the fastest rate on record last 44 00:02:17,480 --> 00:02:20,880 Speaker 1: financial year, as rising food and energy prices and a 45 00:02:20,960 --> 00:02:25,040 Speaker 1: pullback in consumer spending pushed cafes and restaurants to the wall. 46 00:02:25,200 --> 00:02:30,040 Speaker 3: Cafes, restaurants and small retailers registered disproportionate growth in insolvency 47 00:02:30,080 --> 00:02:32,680 Speaker 3: appointments in the past year, according to a report in 48 00:02:32,680 --> 00:02:35,400 Speaker 3: The Australian, as consumers were forced to pay more for 49 00:02:35,520 --> 00:02:39,000 Speaker 3: essential items and they pulled back from discretionary purchases. Figures 50 00:02:39,000 --> 00:02:41,440 Speaker 3: from the Australians Securities and Investments Commission shows a number 51 00:02:41,480 --> 00:02:45,040 Speaker 3: of collapses in the sector jumped fifty percent to sixteen 52 00:02:45,160 --> 00:02:49,040 Speaker 3: hundred and sixty seven, retail trade appointments jumped forty two percent, 53 00:02:49,680 --> 00:02:53,360 Speaker 3: and total insolvencies were up thirty nine percent to just 54 00:02:53,520 --> 00:02:56,520 Speaker 3: over eleven thousand. Now that's a record number, though it 55 00:02:56,560 --> 00:02:59,680 Speaker 3: is much more like pre COVID numbers. Thanks to all 56 00:02:59,680 --> 00:03:03,480 Speaker 3: the gouvern and handouts during the pandemic. Insolvencies fell sharply 57 00:03:03,560 --> 00:03:06,280 Speaker 3: in twenty twenty one fiscal year to about four thousand, 58 00:03:06,480 --> 00:03:09,920 Speaker 3: less than five thousand the following year. Now they have surged, 59 00:03:09,919 --> 00:03:12,480 Speaker 3: there's catch up going on. ASIG also said there were 60 00:03:12,520 --> 00:03:15,240 Speaker 3: three point three eight million businesses registered in Australia at 61 00:03:15,240 --> 00:03:17,000 Speaker 3: the end of June, up from one point one eight 62 00:03:17,040 --> 00:03:18,160 Speaker 3: million twelve years ago. 63 00:03:18,720 --> 00:03:21,600 Speaker 1: This next one's a bit alarming, Sean story number three. 64 00:03:21,760 --> 00:03:26,160 Speaker 1: Australians are still dying at higher rates than before the pandemic, 65 00:03:26,240 --> 00:03:29,960 Speaker 1: suggesting that COVID nineteen's lingering effects may be driving a 66 00:03:30,000 --> 00:03:31,919 Speaker 1: sustained increase in death and. 67 00:03:31,880 --> 00:03:36,000 Speaker 3: Disease excess mortality. The increase above the expected toll had 68 00:03:36,040 --> 00:03:39,680 Speaker 3: the pandemic not occurred was five percent last year, according 69 00:03:39,680 --> 00:03:42,480 Speaker 3: to the Actuaries Institute. The figure is significantly higher than 70 00:03:42,520 --> 00:03:44,920 Speaker 3: the one to two percent excess scene in years of 71 00:03:45,000 --> 00:03:49,720 Speaker 3: strong seasonal influenza epidemics. According to report on Bloomberg, Australia 72 00:03:49,720 --> 00:03:53,000 Speaker 3: has relatively high COVID vaccination rates, but many survivors have 73 00:03:53,120 --> 00:03:56,440 Speaker 3: lingering ailments. For example, more than four years on, hospitals 74 00:03:56,440 --> 00:04:01,080 Speaker 3: are still experiencing an unexpected increase in currnary artery disease. 75 00:04:01,600 --> 00:04:05,360 Speaker 3: These findings in Australia support growing international evidence that COVID 76 00:04:05,440 --> 00:04:10,119 Speaker 3: nineteen has worsened health across populations, especially in the elderly 77 00:04:10,280 --> 00:04:13,559 Speaker 3: and marginalized racial and ethnic minority groups. 78 00:04:13,880 --> 00:04:17,120 Speaker 1: Story number four Commonwealth Banks share price closed at a 79 00:04:17,240 --> 00:04:20,000 Speaker 1: record high of one hundred and thirty four dollars and 80 00:04:20,080 --> 00:04:23,640 Speaker 1: ninety cents yesterday, denying the naysayers who argue that the 81 00:04:23,640 --> 00:04:26,159 Speaker 1: country's largest company is overvalued. 82 00:04:26,520 --> 00:04:29,760 Speaker 3: Almost all the major bank analysts think Commonwealth Bank's share 83 00:04:29,800 --> 00:04:33,680 Speaker 3: price is too high and expected correction, but investors aren't listening, 84 00:04:33,720 --> 00:04:36,919 Speaker 3: and it seems overseas investors in particular aren't listening. The 85 00:04:36,920 --> 00:04:39,640 Speaker 3: group's share price just keeps rising. It's up about forty 86 00:04:39,680 --> 00:04:42,839 Speaker 3: percent since October last year, the main reason the ASEX 87 00:04:42,839 --> 00:04:45,600 Speaker 3: two hundred has performed so well recently. On top of that, 88 00:04:45,920 --> 00:04:48,839 Speaker 3: investors have been receiving dividends. A couple of weeks ago, 89 00:04:48,839 --> 00:04:51,000 Speaker 3: it became the largest company on the ASEX. It's now 90 00:04:51,000 --> 00:04:53,880 Speaker 3: eleven billion dollars, bigger than BHP, nearly twice the size 91 00:04:53,920 --> 00:04:55,000 Speaker 3: of National Australia Bank. 92 00:04:55,800 --> 00:04:59,240 Speaker 1: Last one. Story number five Deadpool and Wolverine looks to 93 00:04:59,320 --> 00:05:03,400 Speaker 1: have reverse Marvel's box office slump, with the superhero sequel 94 00:05:03,720 --> 00:05:07,000 Speaker 1: expected to have made about two hundred million US dollars 95 00:05:07,000 --> 00:05:08,159 Speaker 1: over the weekend. 96 00:05:08,120 --> 00:05:09,800 Speaker 3: And that was in the US. It was an all 97 00:05:09,800 --> 00:05:12,680 Speaker 3: time record for an R rated movie. Marvel deployed two 98 00:05:12,720 --> 00:05:15,640 Speaker 3: of its most popular characters following a couple of relative duds, 99 00:05:15,880 --> 00:05:18,599 Speaker 3: and it was expected that Deadpool and Wolverine would collect 100 00:05:18,600 --> 00:05:21,120 Speaker 3: another two hundred and thirty eight year US dollars overseas 101 00:05:21,160 --> 00:05:21,880 Speaker 3: for the three days. 102 00:05:22,040 --> 00:05:22,320 Speaker 2: What's that? 103 00:05:22,360 --> 00:05:24,159 Speaker 3: Four hundred and thirty eight million for three days? Not 104 00:05:24,240 --> 00:05:26,920 Speaker 3: bad given it cost only three hundred and twenty million 105 00:05:27,000 --> 00:05:29,480 Speaker 3: US dollars to make. Of course, it stars Hugh Jackman. 106 00:05:29,720 --> 00:05:32,480 Speaker 3: Two years ago, Marvel's Doctor Strange and The Multiverse of 107 00:05:32,560 --> 00:05:35,560 Speaker 3: Badness made about the same amount on weekend One eventually 108 00:05:35,560 --> 00:05:37,280 Speaker 3: sold about a billion dollars worth of tickets. 109 00:05:37,279 --> 00:05:39,600 Speaker 2: They're hoping Deadpool and Wolverine can do the same. 110 00:05:40,040 --> 00:05:42,040 Speaker 1: All right, there we go the top five business stories 111 00:05:42,080 --> 00:05:42,719 Speaker 1: in five minutes. 112 00:05:42,760 --> 00:05:44,240 Speaker 2: Thank you Sean, Thank you Michael. 113 00:05:44,440 --> 00:05:47,800 Speaker 1: It's Tuesday, the thirtieth of July twenty twenty four, remembered 114 00:05:47,839 --> 00:05:49,920 Speaker 1: hit follow on the podcast and five minutes says't enough. 115 00:05:49,920 --> 00:05:52,520 Speaker 1: You can find our longer daily show called Fear and 116 00:05:52,560 --> 00:05:55,360 Speaker 1: Greed where ever you listen to podcasts or at Fearangreed 117 00:05:55,360 --> 00:05:57,280 Speaker 1: dot com dot au, which is also where you can 118 00:05:57,320 --> 00:06:00,400 Speaker 1: sign up for our free weekly newsletter. It comes out tomorrow, 119 00:06:00,440 --> 00:06:02,680 Speaker 1: so get onto that one today. I'm Michael Thompson and 120 00:06:02,720 --> 00:06:05,120 Speaker 1: that was the Fast five business news by Fear and Greed. 121 00:06:05,279 --> 00:06:08,000 Speaker 2: Have a great day.