1 00:00:03,900 --> 00:00:07,980 Michael Thompson: Banks start seeing signs of mortgage stress as rates rise. 2 00:00:08,280 --> 00:00:11,490 Michael Thompson: Companies that have scientists, women, and people who have worked 3 00:00:11,490 --> 00:00:15,959 Michael Thompson: overseas on their boards perform better, and Commonwealth Bank starts 4 00:00:15,960 --> 00:00:19,290 Michael Thompson: to crack down on crypto trading. It's Friday the 9th 5 00:00:19,350 --> 00:00:23,460 Michael Thompson: of June, 2023. Welcome to Fear & Greed, Australia's most popular 6 00:00:23,460 --> 00:00:27,090 Michael Thompson: business podcast. I'm Michael Thompson, and good morning, Sean Aylmer. 7 00:00:27,360 --> 00:00:28,440 Sean Aylmer: Good morning, Michael. 8 00:00:28,679 --> 00:00:30,840 Michael Thompson: Sean, after the show you've got an interview coming up 9 00:00:30,870 --> 00:00:35,248 Michael Thompson: with Richard Young, co- founder and CEO of Midkey. Now, 10 00:00:35,250 --> 00:00:37,830 Michael Thompson: this is really a startup, but Richard is a very 11 00:00:37,830 --> 00:00:38,970 Michael Thompson: experienced banker. 12 00:00:39,390 --> 00:00:41,250 Sean Aylmer: Yes. He spent a lot of time at Macquarie Bank, 13 00:00:41,250 --> 00:00:44,430 Sean Aylmer: and what he's done is taken that knowledge to create 14 00:00:44,490 --> 00:00:47,490 Sean Aylmer: an alternate way of financing your home loan, and we're 15 00:00:47,490 --> 00:00:49,799 Sean Aylmer: seeing a lot of this in the market at the 16 00:00:49,799 --> 00:00:52,830 Sean Aylmer: moment. We all know about the traditional mortgages that you 17 00:00:52,830 --> 00:00:55,500 Sean Aylmer: can take out with a big lender or small lender. 18 00:00:55,830 --> 00:00:59,130 Sean Aylmer: Well, we're also getting all sorts of flexible options, and 19 00:00:59,130 --> 00:01:04,410 Sean Aylmer: Midkey is providing a fairly unique, flexible option whereby they 20 00:01:04,410 --> 00:01:06,809 Sean Aylmer: will help finance your home and you don't actually have 21 00:01:06,809 --> 00:01:09,420 Sean Aylmer: to pay back until you sell the home. A lot 22 00:01:09,420 --> 00:01:11,699 Sean Aylmer: more detail, but it's well worth a listen to Richard 23 00:01:11,699 --> 00:01:12,149 Sean Aylmer: for that. 24 00:01:12,359 --> 00:01:14,310 Michael Thompson: Yeah, it's a good chat. It's coming up a little 25 00:01:14,310 --> 00:01:17,130 Michael Thompson: bit later on. The main story this morning though, Sean; 26 00:01:17,130 --> 00:01:20,280 Michael Thompson: the big banks are today warning of rising rates of 27 00:01:20,280 --> 00:01:24,149 Michael Thompson: mortgage stress appearing in the economy, particularly if interest rates 28 00:01:24,150 --> 00:01:24,810 Michael Thompson: stay high. 29 00:01:25,380 --> 00:01:27,809 Sean Aylmer: Until now the banks, who are by far the major 30 00:01:27,809 --> 00:01:32,520 Sean Aylmer: mortgage lenders, have reported reasonably low default and arrears rates, 31 00:01:32,819 --> 00:01:36,990 Sean Aylmer: but cracks are showing. Westpac boss, Peter King, said the 32 00:01:36,990 --> 00:01:40,289 Sean Aylmer: lender is receiving more phone calls to its financial hardship 33 00:01:40,289 --> 00:01:44,309 Sean Aylmer: line, and 30 day delinquency rates, which basically means people 34 00:01:44,459 --> 00:01:48,059 Sean Aylmer: haven't made a mortgage repayment in 30 days, have started 35 00:01:48,059 --> 00:01:52,470 Sean Aylmer: to pick up. Ratings agency Fitch yesterday downgraded its view 36 00:01:52,530 --> 00:01:56,670 Sean Aylmer: of the Australian and New Zealand banks to deteriorating from 37 00:01:56,670 --> 00:02:00,659 Sean Aylmer: neutral, flagging further headwinds against earnings and asset quality. And 38 00:02:00,660 --> 00:02:04,049 Sean Aylmer: the Australian Bankers Association boss, Anna Bligh, said that if 39 00:02:04,049 --> 00:02:08,220 Sean Aylmer: rates stay high or rise, as many economists expect, then 40 00:02:08,220 --> 00:02:11,370 Sean Aylmer: more people will enter into hardship arrangements later this year. 41 00:02:11,639 --> 00:02:14,400 Sean Aylmer: As Bligh put it, people can stretch for another month 42 00:02:14,400 --> 00:02:16,830 Sean Aylmer: and they can stretch a bit more, but at some 43 00:02:16,830 --> 00:02:20,160 Sean Aylmer: point for some people, the rubber band will break. She 44 00:02:20,160 --> 00:02:22,738 Sean Aylmer: said several banks are getting more calls from people worried 45 00:02:22,740 --> 00:02:24,631 Sean Aylmer: about meeting their obligations, Michael. 46 00:02:24,631 --> 00:02:27,720 Michael Thompson: Yes, it's an interesting one, isn't it? Because we've talked 47 00:02:27,720 --> 00:02:30,209 Michael Thompson: about this on How Do They Afford That, our sister 48 00:02:30,210 --> 00:02:33,540 Michael Thompson: podcast, and about the importance of just reaching out if 49 00:02:33,540 --> 00:02:36,149 Michael Thompson: you are having problems. That people kind of think of 50 00:02:36,150 --> 00:02:40,589 Michael Thompson: banks as big impersonal kind of organizations, but really they 51 00:02:40,680 --> 00:02:43,290 Michael Thompson: would be more kind of keen to hear from people 52 00:02:43,320 --> 00:02:45,750 Michael Thompson: before they get into that kind of trouble and try 53 00:02:45,750 --> 00:02:47,130 Michael Thompson: and work out some kind of a solution. 54 00:02:47,580 --> 00:02:50,160 Sean Aylmer: Yeah, absolutely. Or the banks are always saying, if you're 55 00:02:50,160 --> 00:02:54,419 Sean Aylmer: in trouble, give them a call they can help you. And they really can. It's worth 56 00:02:54,419 --> 00:02:55,080 Sean Aylmer: giving the call. 57 00:02:55,139 --> 00:02:57,959 Michael Thompson: Absolutely. Now, of course, this all comes after the very 58 00:02:57,960 --> 00:03:01,530 Michael Thompson: weak economic growth rate this week, Sean, and the rise 59 00:03:01,530 --> 00:03:02,550 Michael Thompson: of interest rates as well. 60 00:03:03,000 --> 00:03:06,000 Sean Aylmer: Yeah, so the standard variable home loan rate is now 61 00:03:06,060 --> 00:03:09,480 Sean Aylmer: kind of high sixes or thereabouts. Many mortgage holders are 62 00:03:09,480 --> 00:03:13,079 Sean Aylmer: now shifting from much lower fixed rate loans to variable 63 00:03:13,110 --> 00:03:15,719 Sean Aylmer: rate loans, the fiscal cliff people have been talking about 64 00:03:15,719 --> 00:03:18,149 Sean Aylmer: for quite a while. At the same time, the economy 65 00:03:18,150 --> 00:03:19,980 Sean Aylmer: in the 12 months to the end of March grew 66 00:03:19,980 --> 00:03:24,570 Sean Aylmer: at a disappointing 2. 3% clip. The commentary among economists 67 00:03:24,600 --> 00:03:27,210 Sean Aylmer: is that rates may have to go higher. Some are 68 00:03:27,480 --> 00:03:31,980 Sean Aylmer: even saying towards 5%. That would be three more 25 69 00:03:31,980 --> 00:03:37,170 Sean Aylmer: basis point rate hikes. That's because inflation is stubbornly high. 70 00:03:38,010 --> 00:03:40,080 Sean Aylmer: I don't know whether they'll go that high, but it's 71 00:03:40,080 --> 00:03:44,070 Sean Aylmer: certainly very, very worrying that we're starting to see these 72 00:03:44,070 --> 00:03:47,790 Sean Aylmer: trends in mortgage arrears when interest rates have still got 73 00:03:47,790 --> 00:03:48,389 Sean Aylmer: a way to go. 74 00:03:48,750 --> 00:03:52,260 Michael Thompson: Yeah, pretty alarming trend. Who's feeling at most? 75 00:03:52,619 --> 00:03:55,380 Sean Aylmer: Well, it's a pretty good question. Probably younger home buyers 76 00:03:55,380 --> 00:03:58,320 Sean Aylmer: because they haven't repaid as much of their mortgage and 77 00:03:58,320 --> 00:04:01,290 Sean Aylmer: are less likely to have a savings buffer or redraw 78 00:04:01,290 --> 00:04:04,200 Sean Aylmer: buffers. Along those lines there was a really interesting survey 79 00:04:04,200 --> 00:04:07,620 Sean Aylmer: out yesterday from property data firm PEXA: more than a 80 00:04:07,620 --> 00:04:11,369 Sean Aylmer: quarter of homes were bought without a mortgage last year, 81 00:04:11,369 --> 00:04:14,550 Sean Aylmer: so that's about $ 123 billion worth of homes were cash- 82 00:04:14,640 --> 00:04:18,150 Sean Aylmer: funded. That was in New South Wales, Queensland and Victoria. 83 00:04:18,540 --> 00:04:20,969 Sean Aylmer: PEXA'S head of research, Mike Gill, said the data suggests 84 00:04:21,029 --> 00:04:25,230 Sean Aylmer: most cash buyers were older homeowners who had already paid 85 00:04:25,230 --> 00:04:27,870 Sean Aylmer: off their mortgages and were buying a home to retire 86 00:04:27,870 --> 00:04:31,050 Sean Aylmer: in. The bulk of the cash purchases were in regions 87 00:04:31,050 --> 00:04:34,380 Sean Aylmer: popular with retirees the study found, and in postcodes where 88 00:04:34,380 --> 00:04:37,500 Sean Aylmer: the median dwelling price was well below state averages. So 89 00:04:37,500 --> 00:04:41,190 Sean Aylmer: that very much supports the theory that it's young Australians 90 00:04:41,400 --> 00:04:45,029 Sean Aylmer: that are suffering most from what's happening in the mortgage market. 91 00:04:45,660 --> 00:04:48,719 Michael Thompson: All right. How did the local share market perform yesterday, Sean? 92 00:04:49,079 --> 00:04:56,250 Sean Aylmer: S&P/ASX 200 closed down 0.3% to 7, 100 points. Now that's three straight 93 00:04:56,339 --> 00:05:01,350 Sean Aylmer: sessions where the markets ended lower. Tech stocks got pummeled 94 00:05:01,469 --> 00:05:04,469 Sean Aylmer: yesterday following a poor lead- in from Wall Street. The 95 00:05:05,039 --> 00:05:07,890 Sean Aylmer: IT index closed down nearly 4%. Zero was off close 96 00:05:07,890 --> 00:05:11,820 Sean Aylmer: to 6%. WiseTech Global was down 3%. Real estate stocks 97 00:05:11,820 --> 00:05:14,370 Sean Aylmer: also felt it; that's pretty much because of the higher 98 00:05:14,370 --> 00:05:17,849 Sean Aylmer: interest rate outlook. The energy companies did best. Beach Energy 99 00:05:17,849 --> 00:05:22,109 Sean Aylmer: was up 3. 4%, a G L jumped 2.6%. But the 100 00:05:22,109 --> 00:05:25,950 Sean Aylmer: real bounce came from the coal miners. They've been sold 101 00:05:25,950 --> 00:05:29,159 Sean Aylmer: off big time as coal prices have fallen. Coal prices 102 00:05:29,160 --> 00:05:32,099 Sean Aylmer: have turned around a bit, not a lot just a 103 00:05:32,099 --> 00:05:35,700 Sean Aylmer: bit, and suddenly New Hope's up 9%, White Haven's up 104 00:05:35,700 --> 00:05:40,350 Sean Aylmer: 5.5%, Yancoal's up 4%. It was almost like investors were 105 00:05:40,350 --> 00:05:42,900 Sean Aylmer: just waiting for a turnaround in coal prices to pile 106 00:05:42,900 --> 00:05:46,020 Sean Aylmer: back in. Otherwise, the big miners did pretty well: Rio 107 00:05:46,020 --> 00:05:50,160 Sean Aylmer: Tinto and Fortescu were both up 2% or thereabouts. BHP was up about one and 108 00:05:50,370 --> 00:05:53,730 Sean Aylmer: a half percent. Woodside rose 1. 3%. The banks were 109 00:05:53,730 --> 00:05:56,820 Sean Aylmer: mixed, though Macquarie Group was down more than 1%. So 110 00:05:56,820 --> 00:05:58,618 Sean Aylmer: too Westfarmers. 111 00:05:58,619 --> 00:05:59,699 Michael Thompson: All right. What about international markets? 112 00:06:00,270 --> 00:06:03,570 Sean Aylmer: Well, the main economic news internationally yesterday was out of 113 00:06:03,570 --> 00:06:07,710 Sean Aylmer: Japan. The world's third largest economy grew by 0. 7% in 114 00:06:08,040 --> 00:06:11,099 Sean Aylmer: the first quarter of this year, much better than economists 115 00:06:11,099 --> 00:06:15,659 Sean Aylmer: forecast. It just seems that the Japanese economy after decades 116 00:06:15,660 --> 00:06:19,440 Sean Aylmer: of stagnation seems to be picking up, and that is very, 117 00:06:19,440 --> 00:06:22,229 Sean Aylmer: very good for big exporters like Australia. Not a lot 118 00:06:22,230 --> 00:06:24,480 Sean Aylmer: of action going on in commodity markets. So the Aussie 119 00:06:24,480 --> 00:06:28,560 Sean Aylmer: dollar, Michael, this morning is fetching around 66. 6 US cents. 120 00:06:28,650 --> 00:06:30,238 Michael Thompson: Well, that sounds a little ominous, doesn't it? 121 00:06:30,750 --> 00:06:33,299 Sean Aylmer: 66. 6 US cents, you reckon? 122 00:06:33,299 --> 00:06:36,719 Michael Thompson: Yeah. Triple six. Isn't that Satan's number? 123 00:06:37,199 --> 00:06:38,460 Sean Aylmer: Is it? I have no idea. 124 00:06:39,000 --> 00:06:40,710 Michael Thompson: Oh, well. I mean, I don't want to read too 125 00:06:40,710 --> 00:06:44,670 Michael Thompson: much into kind of satanic influences on currency markets, so 126 00:06:44,670 --> 00:06:46,020 Michael Thompson: let's move on, shall we? 127 00:06:47,759 --> 00:06:50,488 Sean Aylmer: Probably. Triple six, you are right. I've Googled it while 128 00:06:50,490 --> 00:06:53,459 Sean Aylmer: you've been doing it. " In modern popular culture, triple six 129 00:06:53,459 --> 00:06:56,790 Sean Aylmer: has become the most widely recognized symbol for the antichrist 130 00:06:56,910 --> 00:06:58,380 Sean Aylmer: or alternatively the devil." 131 00:06:58,800 --> 00:07:03,299 Michael Thompson: Yeah. Sometimes, Sean, you really leave me hanging there. You 132 00:07:03,300 --> 00:07:06,568 Michael Thompson: made me really question myself and my knowledge of satan. 133 00:07:06,990 --> 00:07:08,459 Sean Aylmer: I shouldn't have doubted that. You were right. 134 00:07:08,910 --> 00:07:11,579 Michael Thompson: Anyway. All right. We'll be back in a moment with 135 00:07:11,580 --> 00:07:20,220 Michael Thompson: the rest of the day's business news. Sean, Prime Minister 136 00:07:20,220 --> 00:07:24,420 Michael Thompson: Anthony Albanese was joined by Qantas boss Alan Joyce yesterday 137 00:07:24,809 --> 00:07:27,899 Michael Thompson: at Western Sydney Airport to announce that Qantas and Jetstar 138 00:07:27,900 --> 00:07:29,969 Michael Thompson: will be the first airlines to fly out of the 139 00:07:29,969 --> 00:07:32,400 Michael Thompson: airport in 2026. 140 00:07:32,670 --> 00:07:35,700 Sean Aylmer: Yes, Joyce said Western Sydney will one day become the 141 00:07:35,700 --> 00:07:39,480 Sean Aylmer: biggest airport on the carrier's network. He said it will 142 00:07:39,599 --> 00:07:43,380 Sean Aylmer: boast great efficiency with shorter block times and shorter taxi 143 00:07:43,380 --> 00:07:46,680 Sean Aylmer: times allowing for lower airfares. 144 00:07:48,209 --> 00:07:50,910 Michael Thompson: Yeah, yeah, yeah. We've got to wait till 2026 for that, do we? 145 00:07:51,210 --> 00:07:53,310 Sean Aylmer: Yeah, sounds like it. He added that within a year 146 00:07:53,310 --> 00:07:56,580 Sean Aylmer: of operation Qantas and Jetstar will have at least 15 147 00:07:56,580 --> 00:07:59,580 Sean Aylmer: aircraft based at the new airport. Joyce said there's already 148 00:07:59,580 --> 00:08:03,509 Sean Aylmer: 2 million trips taken each year from Sydney from residents 149 00:08:03,509 --> 00:08:06,630 Sean Aylmer: of that area, and that can grow... The number of 150 00:08:06,630 --> 00:08:09,300 Sean Aylmer: trips can grow, as a result of the new facilities. 151 00:08:09,660 --> 00:08:12,750 Sean Aylmer: There'll be about 700 extra jobs out at the airport, 152 00:08:12,750 --> 00:08:14,280 Sean Aylmer: so very good for that part of the world. 153 00:08:14,910 --> 00:08:18,119 Michael Thompson: Yeah, certainly is. Now, I mentioned this new research, Sean, 154 00:08:18,120 --> 00:08:20,759 Michael Thompson: at the top of the show. Companies that have women, 155 00:08:20,820 --> 00:08:24,300 Michael Thompson: scientists, and people who have worked overseas on their boards 156 00:08:24,600 --> 00:08:27,060 Michael Thompson: perform markedly better than those without. 157 00:08:27,300 --> 00:08:31,050 Sean Aylmer: More than 80% of companies assessed as top- performing had 158 00:08:31,050 --> 00:08:34,530 Sean Aylmer: at least one female director, one director who had science 159 00:08:34,530 --> 00:08:38,909 Sean Aylmer: and technology expertise, and at least one with international experience. 160 00:08:38,969 --> 00:08:42,238 Sean Aylmer: That's according to a Committee for Economic Development of Australia, 161 00:08:42,240 --> 00:08:46,950 Sean Aylmer: CEDA, and the University of Technology Sydney report. That compares 162 00:08:46,950 --> 00:08:51,150 Sean Aylmer: to just 26% of the weakest firms. CEDA Chief Executive 163 00:08:51,150 --> 00:08:55,410 Sean Aylmer: Melinda Solento said greater diversity is a shortcut to lifting 164 00:08:55,410 --> 00:08:59,429 Sean Aylmer: capabilities. Roughly 40% of board directors in Australia have financial 165 00:08:59,429 --> 00:09:03,750 Sean Aylmer: or legal expertise, but only 7% have science or technology 166 00:09:03,750 --> 00:09:06,900 Sean Aylmer: expertise according to the report. On average, the most dynamic 167 00:09:06,900 --> 00:09:09,598 Sean Aylmer: companies have 1. 6 more directors who are female, 1.8 168 00:09:09,929 --> 00:09:14,759 Sean Aylmer: more directors with science, technology, engineering, and mathematics expertise, and 3. 169 00:09:15,000 --> 00:09:19,050 Sean Aylmer: 1 more directors with international experience compared to bottom performers. 170 00:09:19,380 --> 00:09:23,160 Michael Thompson: All right. Now, Sean, the Commonwealth Bank has limited transfers 171 00:09:23,160 --> 00:09:27,838 Michael Thompson: to high- risk crypto exchanges as digital currencies face growing challenges. 172 00:09:28,170 --> 00:09:31,799 Sean Aylmer: The forward protection measure was announced yesterday following Westpac's decision 173 00:09:31,799 --> 00:09:35,848 Sean Aylmer: to restrict customers converting Aussie dollars to crypto assets. General 174 00:09:35,850 --> 00:09:39,449 Sean Aylmer: manager of Group Fraud Management Services at Commonwealth Bank, James 175 00:09:39,450 --> 00:09:42,838 Sean Aylmer: Roberts, said it's very difficult to recover money from crypto 176 00:09:42,840 --> 00:09:46,559 Sean Aylmer: exchanges when it goes missing. While Commonwealth Bank didn't announce 177 00:09:46,620 --> 00:09:50,609 Sean Aylmer: which exchanges are affected, it is likely to include Binance, 178 00:09:50,610 --> 00:09:53,848 Sean Aylmer: the one- time world's largest crypto exchange, which this week 179 00:09:54,240 --> 00:09:58,140 Sean Aylmer: faces legal action by US regulators. In addition to some 180 00:09:58,140 --> 00:10:01,260 Sean Aylmer: outright bans, Commonwealth Bank will also impose a 24- hour 181 00:10:01,260 --> 00:10:05,159 Sean Aylmer: transaction hold for customers wanting to transfer money to any 182 00:10:05,219 --> 00:10:08,910 Sean Aylmer: crypto exchange, as well as a $10, 000 monthly limit. 183 00:10:09,960 --> 00:10:13,830 Michael Thompson: Sean, as the PwC scandal continues, we now see more 184 00:10:13,830 --> 00:10:18,150 Michael Thompson: and more clients pulling their business from the financial services firm. 185 00:10:18,510 --> 00:10:21,569 Sean Aylmer: Government departments, including finance and the Reserve Bank, have either 186 00:10:21,570 --> 00:10:24,150 Sean Aylmer: said they don't want to work with PwC or will 187 00:10:24,150 --> 00:10:28,889 Sean Aylmer: enforce very rigorous standards. Now it's the private sector. Some 188 00:10:28,889 --> 00:10:32,819 Sean Aylmer: of the country's biggest super funds, including Australian Super, Australian 189 00:10:32,820 --> 00:10:37,140 Sean Aylmer: Retirement Trust, and HESTA have frozen work with PwC in 190 00:10:37,140 --> 00:10:40,468 Sean Aylmer: recent weeks, according to media reports. Clearly it's bad news 191 00:10:40,469 --> 00:10:43,679 Sean Aylmer: for PwC. But Michael, it actually isn't that great news for 192 00:10:43,679 --> 00:10:46,379 Sean Aylmer: the economy. There are only four major audit and accounting 193 00:10:46,379 --> 00:10:50,790 Sean Aylmer: firms out there. There are thousands of large businesses. Taking 194 00:10:50,790 --> 00:10:54,210 Sean Aylmer: one of the big firms out, so kind of 25% 195 00:10:54,210 --> 00:10:58,530 Sean Aylmer: of the capability, that just isn't good for diversity of 196 00:10:58,530 --> 00:11:03,150 Sean Aylmer: providers. So PwC have done the wrong thing clearly, but 197 00:11:03,210 --> 00:11:06,240 Sean Aylmer: it's actually not good for the system as a whole. 198 00:11:07,050 --> 00:11:11,070 Michael Thompson: California's Flynn Restaurant Group has acquired the operations of Pizza 199 00:11:11,070 --> 00:11:14,610 Michael Thompson: Hut in Australia, picking up the brand's local master license 200 00:11:14,610 --> 00:11:17,880 Michael Thompson: from Sydney- headquartered private equity firm Allegro Funds. 201 00:11:18,210 --> 00:11:20,789 Sean Aylmer: The deal adds 260 Pizza Hut stores to the Flynn 202 00:11:20,790 --> 00:11:24,270 Sean Aylmer: portfolio. It's actually the first time that that group has 203 00:11:24,270 --> 00:11:27,870 Sean Aylmer: pushed overseas according to a report in the Financial Review. Now, 204 00:11:27,870 --> 00:11:31,319 Sean Aylmer: I was looking at the different outlets it operates, so 205 00:11:31,320 --> 00:11:36,389 Sean Aylmer: this is Flynn's Restaurant Group. So it's got about 2, 350 206 00:11:36,389 --> 00:11:40,589 Sean Aylmer: outlets, including more than 900 Pizza Hut branded shops along 207 00:11:40,590 --> 00:11:46,950 Sean Aylmer: with Applebee's, Arby's, Taco Bells, Wendy's, and Panera Bakery cafes. 208 00:11:47,370 --> 00:11:49,170 Sean Aylmer: Now, that is a lot of calories. 209 00:11:51,270 --> 00:11:55,170 Michael Thompson: Yeah. Yes. I've never considered it like that. It absolutely 210 00:11:55,170 --> 00:12:00,419 Michael Thompson: is. Sean, are there all- you- can- eat Pizza Huts left anymore? 211 00:12:00,780 --> 00:12:03,179 Sean Aylmer: I wonder. So when I was growing up in Orange, 212 00:12:03,929 --> 00:12:06,179 Sean Aylmer: Pizza Hut opened at some point when I was at 213 00:12:06,179 --> 00:12:10,289 Sean Aylmer: school. And I remember going kind of with friends to 214 00:12:10,290 --> 00:12:14,220 Sean Aylmer: Pizza Hut, and the first time... It was very exciting 215 00:12:14,460 --> 00:12:17,340 Sean Aylmer: for us in Orange. Maybe wasn't the first time, but it was very 216 00:12:17,340 --> 00:12:19,530 Sean Aylmer: early on, they had the all- you - can- eat pizzas. 217 00:12:19,590 --> 00:12:20,010 Michael Thompson: Yeah. 218 00:12:20,580 --> 00:12:21,720 Sean Aylmer: Oh, it was just glorious. 219 00:12:21,870 --> 00:12:24,030 Michael Thompson: I don't think there's many left, many all- you- can- 220 00:12:24,030 --> 00:12:27,030 Michael Thompson: eat ones left. But I think the one in Orange 221 00:12:27,030 --> 00:12:30,540 Michael Thompson: was actually one of the last still standing. Like up 222 00:12:30,540 --> 00:12:33,958 Michael Thompson: until probably maybe two, couple of years ago even? 223 00:12:34,260 --> 00:12:35,189 Sean Aylmer: Is that right? 224 00:12:35,250 --> 00:12:40,410 Michael Thompson: Absolutely. Absolutely. Anyway, onto building materials. Sean? 225 00:12:40,500 --> 00:12:40,860 Sean Aylmer: Yes. 226 00:12:40,980 --> 00:12:45,149 Michael Thompson: Good segue, isn't it? Boral's Chief Executive Vik Bansal says 227 00:12:45,150 --> 00:12:48,120 Michael Thompson: high inflation is likely to persist for at least a 228 00:12:48,120 --> 00:12:51,449 Michael Thompson: year with more price rises coming for its cement, gravel, 229 00:12:51,450 --> 00:12:55,228 Michael Thompson: and asphalt as it tries to offset rising transport, wages, 230 00:12:55,230 --> 00:12:56,190 Michael Thompson: and energy costs. 231 00:12:56,370 --> 00:12:58,710 Sean Aylmer: Boral's feeling the pressure from a slowdown in the Australian 232 00:12:58,710 --> 00:13:02,189 Sean Aylmer: residential construction sector, with building approvals at their lowest level 233 00:13:02,190 --> 00:13:05,550 Sean Aylmer: in a decade. Bansal said the slowdown in residential is 234 00:13:05,550 --> 00:13:08,820 Sean Aylmer: particularly noticeable; just in the past few weeks, in fact. 235 00:13:09,120 --> 00:13:11,218 Sean Aylmer: He added that Boral will pass through higher cost to 236 00:13:11,219 --> 00:13:14,100 Sean Aylmer: customers to keep profit margins, and as customers are willing 237 00:13:14,100 --> 00:13:17,280 Sean Aylmer: to pay the higher prices. Bansal said the industry needs 238 00:13:17,280 --> 00:13:19,860 Sean Aylmer: to shift away from fixed- price contracting. I think that 239 00:13:19,860 --> 00:13:21,900 Sean Aylmer: is pretty clear. I mean, plenty of deals out there 240 00:13:21,900 --> 00:13:26,610 Sean Aylmer: have recently there to many builders struggling to survive. Boral is 73% 241 00:13:26,610 --> 00:13:30,299 Sean Aylmer: owned by media billionaire Kerry Stokes. Its share price finished 242 00:13:30,330 --> 00:13:32,850 Sean Aylmer: down five and a half percent yesterday. And just before 243 00:13:32,850 --> 00:13:35,280 Sean Aylmer: we leave the local news, Western Australia has a new 244 00:13:35,280 --> 00:13:38,520 Sean Aylmer: premier, with Roger Cook being sworn in as the state's 245 00:13:38,700 --> 00:13:41,009 Sean Aylmer: 31st leader yesterday. 246 00:13:41,309 --> 00:13:43,889 Michael Thompson: All right, good luck to him. International news, now Sean. 247 00:13:43,889 --> 00:13:47,160 Michael Thompson: Tesla's share price has hit a seven- month- high following 248 00:13:47,160 --> 00:13:48,899 Michael Thompson: a run of recent positive news. 249 00:13:49,469 --> 00:13:52,230 Sean Aylmer: Yeah. So the electric vehicle maker's stock has closed high 250 00:13:52,230 --> 00:13:54,929 Sean Aylmer: nine days in a row. That's its longest winning streak 251 00:13:54,929 --> 00:13:59,339 Sean Aylmer: since January, 2021. Its shares are up 82% this year. 252 00:13:59,849 --> 00:14:02,429 Sean Aylmer: It's come off a little bit, but it's certainly a 253 00:14:02,429 --> 00:14:06,809 Sean Aylmer: great rebound from the 65% loss last year. The jump 254 00:14:06,809 --> 00:14:10,319 Sean Aylmer: reflects the rush for technology and growth stocks more generally. 255 00:14:10,530 --> 00:14:14,458 Sean Aylmer: Also, on Tuesday, all of Tesla's Model Three sedans became 256 00:14:14,460 --> 00:14:17,610 Sean Aylmer: eligible for the full US tax credit under a new 257 00:14:17,610 --> 00:14:21,540 Sean Aylmer: criteria set out by the US Treasury Department. Nothing like 258 00:14:21,540 --> 00:14:24,300 Sean Aylmer: a little bit of government help to get vehicles sold. 259 00:14:24,810 --> 00:14:29,070 Michael Thompson: Sean, smoke from Canadian bushfires continues to pour into the 260 00:14:29,070 --> 00:14:32,400 Michael Thompson: US East Coast and Midwest covering major cities in an 261 00:14:32,400 --> 00:14:33,780 Michael Thompson: unhealthy haze. 262 00:14:33,870 --> 00:14:36,929 Sean Aylmer: Yes, the smoke has held up flights at major airports 263 00:14:36,929 --> 00:14:40,590 Sean Aylmer: and prompted people to bring out pandemic- era face masks. 264 00:14:40,740 --> 00:14:44,100 Sean Aylmer: Canadian officials have asked other countries for additional help fighting 265 00:14:44,100 --> 00:14:48,810 Sean Aylmer: more than 400 blazes nationwide. Air quality is considered in 266 00:14:48,810 --> 00:14:51,719 Sean Aylmer: the unhealthy range for large parts of North America. Now, 267 00:14:51,719 --> 00:14:54,479 Sean Aylmer: New York was the most polluted major city in the 268 00:14:54,480 --> 00:14:57,900 Sean Aylmer: world on Tuesday night, that was New York time so 269 00:14:58,410 --> 00:15:03,810 Sean Aylmer: Wednesday Australian time, according to the IQAir website. Pollution levels in that 270 00:15:03,810 --> 00:15:07,560 Sean Aylmer: city were deemed in the unhealthy range, and the benchmark 271 00:15:07,560 --> 00:15:10,080 Sean Aylmer: seems to be that the air was more unhealthy than 272 00:15:10,080 --> 00:15:14,910 Sean Aylmer: the Indian capital Delhi and Iraq's Baghdad. There you go. 273 00:15:15,270 --> 00:15:17,400 Sean Aylmer: Canadian officials says that this is shaping up to be 274 00:15:17,400 --> 00:15:20,010 Sean Aylmer: the nation's worst bushfire season ever. 275 00:15:20,520 --> 00:15:23,430 Michael Thompson: All right. Finally, Sean, yesterday we spoke about the surprise 276 00:15:23,430 --> 00:15:27,780 Michael Thompson: merger of the Saudi- backed LIV golf and the USA 277 00:15:27,780 --> 00:15:32,099 Michael Thompson: and European PGA tours. Today it's about football, the round 278 00:15:32,099 --> 00:15:35,879 Michael Thompson: ball variety of football, and the money is... I thought 279 00:15:35,879 --> 00:15:38,430 Michael Thompson: yesterday's story was big, the money in this one is 280 00:15:38,430 --> 00:15:39,120 Michael Thompson: much bigger, 281 00:15:39,600 --> 00:15:44,040 Sean Aylmer: Much bigger. There were reports that Lionel Messi, arguably... Very 282 00:15:44,040 --> 00:15:49,410 Sean Aylmer: arguably, the greatest footballer of his generation, has turned down $ 283 00:15:50,280 --> 00:15:54,840 Sean Aylmer: 600 million Aussie dollars, $ 400 million US, $ 600 million Aussie 284 00:15:54,840 --> 00:15:58,830 Sean Aylmer: dollars a year from Saudi Arabia to move to the 285 00:15:58,830 --> 00:16:02,010 Sean Aylmer: US and play for Inter Miami. Now, the US Club 286 00:16:02,010 --> 00:16:07,770 Sean Aylmer: has influential partners, namely David Beckham the former UK footballer, 287 00:16:08,040 --> 00:16:11,399 Sean Aylmer: and plenty of rich corporate backers, namely Adidas and Apple. 288 00:16:11,639 --> 00:16:14,940 Sean Aylmer: But the Saudis have been throwing money at football trying 289 00:16:14,940 --> 00:16:18,330 Sean Aylmer: to attract the very best players. Messi was supposed to 290 00:16:18,330 --> 00:16:21,210 Sean Aylmer: be the absolute pinnacle, but it looks like he's turned 291 00:16:21,210 --> 00:16:25,049 Sean Aylmer: them down. The Saudis already own Newcastle Football Club. They 292 00:16:25,049 --> 00:16:28,679 Sean Aylmer: play in the English Premier League. They've got Cristiano Ronaldo, 293 00:16:28,680 --> 00:16:32,520 Sean Aylmer: the other greatest footballer of his generation. He's playing for 294 00:16:32,520 --> 00:16:35,610 Sean Aylmer: about $ 300 million Aussie a year. And I suppose if 295 00:16:35,610 --> 00:16:37,290 Sean Aylmer: you want to throw a third name for the best 296 00:16:37,290 --> 00:16:41,250 Sean Aylmer: player of his generation around then it's probably Ballon d'Or 297 00:16:41,250 --> 00:16:45,509 Sean Aylmer: winner Karim Benzema. Guess where he's playing? Saudi LIV. So 298 00:16:45,509 --> 00:16:48,299 Sean Aylmer: basically they've got two of the three greats of the 299 00:16:48,330 --> 00:16:51,690 Sean Aylmer: current era and they've thrown $ 600 million at the third. 300 00:16:52,380 --> 00:16:56,040 Michael Thompson: All right. Okay. Sean, did you know that that Messi 301 00:16:56,040 --> 00:17:05,249 Michael Thompson: is 35, Benzema's 35 as well? Ronaldo's 38. I'm 37. I 302 00:17:05,250 --> 00:17:06,600 Michael Thompson: reckon I'm still in with a shot. 303 00:17:10,290 --> 00:17:14,550 Sean Aylmer: The stories you've been telling us about coaching Henry's soccer 304 00:17:14,550 --> 00:17:18,090 Sean Aylmer: team in recent weeks have been very, very funny, and 305 00:17:18,090 --> 00:17:19,680 Sean Aylmer: I don't think you got any chance whatsoever. 306 00:17:20,340 --> 00:17:22,350 Michael Thompson: All right, thank you. It's good to have your support. 307 00:17:22,770 --> 00:17:22,888 Sean Aylmer: Yeah. 308 00:17:22,888 --> 00:17:25,770 Michael Thompson: Up next is the Fear & Greed Daily interview with Richard 309 00:17:25,770 --> 00:17:28,530 Michael Thompson: Young, co- founder and CO- CEO of Midkey. 310 00:17:29,070 --> 00:17:31,740 Sean Aylmer: That's right. It's all about an alternate way to get 311 00:17:31,740 --> 00:17:34,678 Sean Aylmer: funding for home loans. Plenty of that going on at 312 00:17:34,679 --> 00:17:38,730 Sean Aylmer: the moment, plenty of options available. This is another one 313 00:17:38,730 --> 00:17:40,770 Sean Aylmer: and well worth a listen pretty much for all our 314 00:17:40,770 --> 00:17:41,490 Sean Aylmer: listeners, Michael. 315 00:17:41,670 --> 00:17:44,400 Michael Thompson: Absolutely. And Richard told us as well that his 21- year- 316 00:17:44,400 --> 00:17:46,500 Michael Thompson: old daughter is a Fear & Greed listener. 317 00:17:46,560 --> 00:17:48,480 Sean Aylmer: Yes. So shout out to her. 318 00:17:48,630 --> 00:17:50,820 Michael Thompson: Indeed. Thank you for listening. It's coming up next in 319 00:17:50,820 --> 00:17:54,540 Michael Thompson: The Fear & Greed playlist on your podcast platform, or at fearandgreed. com. 320 00:17:55,080 --> 00:17:56,099 Michael Thompson: au. Thank you, Sean. 321 00:17:56,460 --> 00:17:57,210 Sean Aylmer: Thank you, Michael. 322 00:17:57,270 --> 00:18:00,478 Michael Thompson: It's Friday the 9th of June, 2023. Make sure you're 323 00:18:00,480 --> 00:18:04,140 Michael Thompson: following the podcast and join us online on LinkedIn, Instagram, 324 00:18:04,140 --> 00:18:06,990 Michael Thompson: Twitter, and Facebook. I'm Michael Thompson and that was Fear & 325 00:18:06,990 --> 00:18:08,190 Michael Thompson: Greed. Have a great day.