1 00:00:04,080 --> 00:00:06,450 Michael Thompson: The voice referendum is set to go to the Senate 2 00:00:06,450 --> 00:00:09,960 Michael Thompson: in the next fortnight, but support is waning. A rush 3 00:00:09,960 --> 00:00:13,559 Michael Thompson: of deals shrinks the local share market. And a major 4 00:00:13,559 --> 00:00:16,949 Michael Thompson: apple grower develops a new super variety to stem a 5 00:00:16,949 --> 00:00:21,419 Michael Thompson: slide in sales. It's Tuesday the 13th of June, 2023. 6 00:00:21,630 --> 00:00:24,870 Michael Thompson: Welcome to Fear and Greed, Australia's most popular business podcast. 7 00:00:25,110 --> 00:00:27,480 Michael Thompson: I'm Michael Thompson. And good morning, Sean Aylmer. 8 00:00:27,840 --> 00:00:29,010 Sean Aylmer: Good morning, Michael. 9 00:00:29,429 --> 00:00:33,389 Michael Thompson: Sean, your interview today, well, it's a fairly topical one 10 00:00:33,389 --> 00:00:36,209 Michael Thompson: really, isn't it? You're speaking with Lee Howard, the CEO 11 00:00:36,209 --> 00:00:37,710 Michael Thompson: of Asialink business. 12 00:00:38,100 --> 00:00:41,729 Sean Aylmer: Yes. So it's all about trade in Asia. And we 13 00:00:41,729 --> 00:00:44,190 Sean Aylmer: talk a lot about China and whether or not the 14 00:00:44,190 --> 00:00:47,369 Sean Aylmer: 20 billion worth of tariffs are going to come or 15 00:00:47,370 --> 00:00:50,429 Sean Aylmer: the tariffs that are interrupting the supply of 20 billion worth 16 00:00:50,429 --> 00:00:52,680 Sean Aylmer: of goods are going to come off or not. But 17 00:00:52,680 --> 00:00:55,350 Sean Aylmer: really, with Lee, we talk more about the other opportunities 18 00:00:55,350 --> 00:00:57,690 Sean Aylmer: in the region. Indonesia is the most obvious one, a 19 00:00:57,690 --> 00:01:02,670 Sean Aylmer: huge population. It is moving from third world through to 20 00:01:02,670 --> 00:01:04,800 Sean Aylmer: become a first world country. We talk about that. We 21 00:01:04,800 --> 00:01:09,269 Sean Aylmer: talk about India, other opportunities for Australian businesses and Australian 22 00:01:09,270 --> 00:01:11,370 Sean Aylmer: investors. It's a really interesting chat. 23 00:01:11,550 --> 00:01:13,860 Michael Thompson: Yeah, it sure is. It is well worth a listen 24 00:01:13,860 --> 00:01:18,270 Michael Thompson: today. The main story though this morning, Sean, support for 25 00:01:18,270 --> 00:01:22,619 Michael Thompson: the indigenous voice has fallen below 50% on the yes/ 26 00:01:22,620 --> 00:01:24,899 Michael Thompson: no question that will decide the referendum. 27 00:01:25,410 --> 00:01:27,749 Sean Aylmer: A poll in the age in Sydney Morning Herald this 28 00:01:27,750 --> 00:01:31,680 Sean Aylmer: morning shows the yes vote has fallen to 49% for 29 00:01:31,680 --> 00:01:34,110 Sean Aylmer: three months in a row. The yes vote has been 30 00:01:34,110 --> 00:01:38,399 Sean Aylmer: falling, demonstrating the massive job the proponents of the referendum 31 00:01:38,400 --> 00:01:41,340 Sean Aylmer: have ahead of themselves. It's the first time a major 32 00:01:41,340 --> 00:01:43,949 Sean Aylmer: poll has shown the no vote in the majority. While 33 00:01:43,950 --> 00:01:47,280 Sean Aylmer: residents in Victoria and New South Wales are in favor, 34 00:01:47,520 --> 00:01:50,760 Sean Aylmer: many other states aren't. The objections are strongest in Queensland, 35 00:01:51,030 --> 00:01:54,060 Sean Aylmer: with only 44% of voters in favor of the voice, 36 00:01:54,210 --> 00:01:58,470 Sean Aylmer: followed by South Australia, 48%, and Western Australia at 49%. 37 00:01:58,710 --> 00:02:02,009 Sean Aylmer: The referendum at this point is unlikely to win a 38 00:02:02,009 --> 00:02:05,819 Sean Aylmer: majority of votes in a majority of states, according to 39 00:02:05,820 --> 00:02:08,100 Sean Aylmer: the resolve strategic poll, and that's what it needs to 40 00:02:08,100 --> 00:02:09,060 Sean Aylmer: do to pass. 41 00:02:09,660 --> 00:02:12,060 Michael Thompson: So, where are we up to then on the voice? 42 00:02:12,450 --> 00:02:15,989 Sean Aylmer: Prime Minister Anthony Albanese so far has rejected all calls 43 00:02:15,990 --> 00:02:18,270 Sean Aylmer: to amend the voice proposal before it goes to the 44 00:02:18,270 --> 00:02:20,880 Sean Aylmer: Senate. Now that's exactly where we're up to. It is 45 00:02:20,880 --> 00:02:24,299 Sean Aylmer: going to the Senate some point in the next couple 46 00:02:24,299 --> 00:02:28,829 Sean Aylmer: of sitting weeks. If it passes, then it's pretty much 47 00:02:28,830 --> 00:02:31,410 Sean Aylmer: cemented in terms of the wording of the voice. Now, 48 00:02:31,410 --> 00:02:34,048 Sean Aylmer: over the weekend there were some really high profile advocates 49 00:02:34,050 --> 00:02:36,988 Sean Aylmer: of the voice, including Noel Pearson warning that the yes 50 00:02:37,020 --> 00:02:40,469 Sean Aylmer: movement really does lack a clear message at the moment. 51 00:02:40,469 --> 00:02:45,090 Sean Aylmer: The wording isn't helping. And certainly, the yes movement isn't 52 00:02:45,090 --> 00:02:48,510 Sean Aylmer: really being heard above the no arguments at the moment. 53 00:02:49,350 --> 00:02:52,530 Michael Thompson: Sean, in this particular case, is it political leaning that's 54 00:02:52,530 --> 00:02:55,439 Michael Thompson: skewing the vote given that the coalition has recommended people 55 00:02:55,440 --> 00:02:56,310 Michael Thompson: vote against it? 56 00:02:56,669 --> 00:02:58,709 Sean Aylmer: It's an interesting question given that there are so many 57 00:02:58,709 --> 00:03:02,910 Sean Aylmer: labor states all by Tasmania are labor states, and federally 58 00:03:02,910 --> 00:03:06,210 Sean Aylmer: we're labor, of course. Yes, I mean, I suppose it 59 00:03:06,210 --> 00:03:09,719 Sean Aylmer: is political leaning. But even labor supporters are predicating at 60 00:03:09,719 --> 00:03:12,599 Sean Aylmer: the moment. Support for the voice among labor voters has 61 00:03:12,599 --> 00:03:18,780 Sean Aylmer: fallen from 75% in April to 69% in May, 63% this month. Support has 62 00:03:18,780 --> 00:03:22,200 Sean Aylmer: been stable among green voters. 81% in favor of June. 63 00:03:22,440 --> 00:03:27,000 Sean Aylmer: But has fallen among coalition voters from 30% to 27% to 26% 64 00:03:27,300 --> 00:03:31,919 Sean Aylmer: in the latest survey. It means 74% of coalition voters 65 00:03:31,919 --> 00:03:35,189 Sean Aylmer: are now on the no side. So obviously, there is 66 00:03:35,190 --> 00:03:39,690 Sean Aylmer: a big delineation between labor and coalition. But even on 67 00:03:39,690 --> 00:03:42,570 Sean Aylmer: the labor side, support is falling. 68 00:03:43,260 --> 00:03:45,059 Michael Thompson: It's a big story and we'll see how it obviously 69 00:03:45,059 --> 00:03:47,280 Michael Thompson: plays out over the next couple of weeks as it 70 00:03:47,280 --> 00:03:51,120 Michael Thompson: heads to the Senate. Now, Sean, the local market was 71 00:03:51,120 --> 00:03:55,410 Michael Thompson: closed yesterday for the King's birthday holiday in most states. 72 00:03:55,830 --> 00:03:57,570 Michael Thompson: What can we expect for the rest of the week? 73 00:03:58,140 --> 00:04:00,660 Sean Aylmer: Well, I reckon what happens in overseas markets, particularly the U. 74 00:04:00,660 --> 00:04:04,110 Sean Aylmer: S. Federal Reserve's decision on interest rates will be most 75 00:04:04,110 --> 00:04:07,139 Sean Aylmer: influential, but we also have labor force figures due for 76 00:04:07,139 --> 00:04:09,689 Sean Aylmer: release on Thursday. We have the National Australia Bank business 77 00:04:09,690 --> 00:04:14,160 Sean Aylmer: sentiment and the Westpac consumer confidence reading's out. Plenty going 78 00:04:14,160 --> 00:04:16,050 Sean Aylmer: on to keep investors interested, Michael. 79 00:04:17,130 --> 00:04:20,279 Michael Thompson: Sean, you mentioned the Fed's decision. Now, I should have 80 00:04:20,279 --> 00:04:23,610 Michael Thompson: my calendar of major economic events here in front of 81 00:04:23,610 --> 00:04:25,200 Michael Thompson: me, but I don't. So when is that? 82 00:04:25,469 --> 00:04:28,500 Sean Aylmer: It's tomorrow night, Australian time. Really, it'll be Thursday morning 83 00:04:28,500 --> 00:04:30,450 Sean Aylmer: by the time we work out what's going on. The 84 00:04:30,450 --> 00:04:33,180 Sean Aylmer: consensus is that the Fed will pause on rate hikes 85 00:04:33,330 --> 00:04:35,550 Sean Aylmer: and give itself some time to see how things are 86 00:04:35,550 --> 00:04:40,170 Sean Aylmer: going. There's growing confidence that inflation in the world's largest 87 00:04:40,170 --> 00:04:43,979 Sean Aylmer: market is falling sharply. They expect the May reading, which 88 00:04:43,980 --> 00:04:45,779 Sean Aylmer: will come out in the next week or so to 89 00:04:45,779 --> 00:04:50,190 Sean Aylmer: be down to 4.1% annualized, that's pretty good. The European Central 90 00:04:50,190 --> 00:04:52,620 Sean Aylmer: Bank is also meeting this week. It's expected to lift 91 00:04:53,010 --> 00:04:56,190 Sean Aylmer: its benchmark rate by 25 basis points. Now remember, the 92 00:04:56,428 --> 00:04:58,859 Sean Aylmer: ECB started hiking rates much later than the U. S. 93 00:04:59,130 --> 00:05:02,369 Sean Aylmer: It's well behind the U. S. in terms of capping 94 00:05:02,370 --> 00:05:05,849 Sean Aylmer: inflation, and there's probably still a ways to go before 95 00:05:05,850 --> 00:05:07,380 Sean Aylmer: it gets prices under control. 96 00:05:07,890 --> 00:05:09,510 Michael Thompson: All right. It's a bit of a short week for 97 00:05:09,510 --> 00:05:11,790 Michael Thompson: most states, Sean, but there's still plenty of news around. 98 00:05:11,790 --> 00:05:13,230 Michael Thompson: We'll be back in a moment with the rest of 99 00:05:13,230 --> 00:05:22,799 Michael Thompson: the day's business news. Sean, trade minister Don Farrell has 100 00:05:22,799 --> 00:05:26,339 Michael Thompson: finished free trade talks with the European Union with little 101 00:05:26,339 --> 00:05:30,870 Michael Thompson: movement after the EU refused to improve its offer on 102 00:05:30,870 --> 00:05:33,480 Michael Thompson: better market access for Australian farm exports. 103 00:05:33,630 --> 00:05:37,500 Sean Aylmer: Yes, agricultural products seem to always be the key sticking 104 00:05:37,500 --> 00:05:40,799 Sean Aylmer: point when it comes to negotiating with Europe. Farrell told 105 00:05:40,799 --> 00:05:44,700 Sean Aylmer: the Australian Financial Review he'll likely return to Brussels next 106 00:05:44,700 --> 00:05:48,570 Sean Aylmer: month for another push, but it was looking more difficult 107 00:05:48,930 --> 00:05:52,080 Sean Aylmer: to land the deal in coming months. Now, given Farrell's 108 00:05:52,080 --> 00:05:55,620 Sean Aylmer: previous statements looking more difficult is certainly a suggestion that 109 00:05:55,678 --> 00:05:58,529 Sean Aylmer: it's a ways away. Even if something did happen, it 110 00:05:58,529 --> 00:06:00,988 Sean Aylmer: means a free trade agreement would probably not be wrapped 111 00:06:00,990 --> 00:06:05,099 Sean Aylmer: up until after European parliamentary elections in a year's time. 112 00:06:05,700 --> 00:06:08,279 Sean Aylmer: Who knows beyond that? Basically, it's still a long way 113 00:06:08,279 --> 00:06:10,979 Sean Aylmer: to go. The EU is a market of 450 million 114 00:06:10,980 --> 00:06:16,169 Sean Aylmer: consumers with an estimated 26 trillion U. S. dollars GDP. 115 00:06:16,469 --> 00:06:19,380 Sean Aylmer: So, any FTA, any Free Trade Agreement we might get, 116 00:06:19,380 --> 00:06:23,580 Sean Aylmer: is definitely a significant prize. It has been under negotiation 117 00:06:23,580 --> 00:06:28,290 Sean Aylmer: for five years though. And, Europeans are notoriously reluctant to 118 00:06:28,290 --> 00:06:31,529 Sean Aylmer: take on their powerful farm lobby by easing their high 119 00:06:31,529 --> 00:06:35,549 Sean Aylmer: terrace and tight quotas, particularly around beef and lamb. They're 120 00:06:35,549 --> 00:06:39,299 Sean Aylmer: also seeking much tougher protections for geographical indicators, which would 121 00:06:39,300 --> 00:06:43,950 Sean Aylmer: prevent Aussie farmers using names like Feta, Palmerson, maybe even 122 00:06:43,950 --> 00:06:47,069 Sean Aylmer: Prosecco. So, I think we're some way off on that one. 123 00:06:47,400 --> 00:06:49,950 Michael Thompson: Yeah, it does seem that way. Now, Sean, the Hunter 124 00:06:49,950 --> 00:06:53,279 Michael Thompson: region in New South Wales will be declared Australia's second 125 00:06:53,279 --> 00:06:57,029 Michael Thompson: offshore wind zone, a boost to the industry that energy 126 00:06:57,029 --> 00:06:59,760 Michael Thompson: executives say will be critical if the country is to 127 00:06:59,760 --> 00:07:01,589 Michael Thompson: meet its renewable energy targets. 128 00:07:02,040 --> 00:07:05,610 Sean Aylmer: Back in February, federal energy minister Chris Bowen invited community 129 00:07:05,610 --> 00:07:08,910 Sean Aylmer: feedback on permitting offshore wind in the hunter region. The 130 00:07:08,910 --> 00:07:13,650 Sean Aylmer: proposal received overwhelming local support. And the Australian is reporting 131 00:07:13,650 --> 00:07:17,160 Sean Aylmer: that Mr. Bowen will formally declare applications to develop in 132 00:07:17,160 --> 00:07:20,130 Sean Aylmer: the region open within a month. Australia expects to replace 133 00:07:20,130 --> 00:07:22,620 Sean Aylmer: its fleet of coal power stations, which is the largest 134 00:07:22,620 --> 00:07:25,259 Sean Aylmer: source of electricity in the country in little more than 135 00:07:25,259 --> 00:07:28,259 Sean Aylmer: a decade, but it's struggling to build enough renewable energy 136 00:07:28,260 --> 00:07:32,040 Sean Aylmer: sources to compensate. Offshore wind projects are often much larger 137 00:07:32,040 --> 00:07:36,090 Sean Aylmer: than onshore wind or solar projects, offering far better compensation 138 00:07:36,090 --> 00:07:38,610 Sean Aylmer: for the loss of coal- fired power stations that typically 139 00:07:38,610 --> 00:07:42,570 Sean Aylmer: produce more than two gigawatts. Australia has legislated a target 140 00:07:42,570 --> 00:07:45,540 Sean Aylmer: of having renewable energy account for more than 80% of 141 00:07:45,540 --> 00:07:48,450 Sean Aylmer: its electricity generation by the end of the decade, a 142 00:07:48,480 --> 00:07:50,820 Sean Aylmer: target that's obviously put a lot of pressure on coal 143 00:07:50,820 --> 00:07:54,840 Sean Aylmer: generators, but also on wind farmers and solar farmers. And 144 00:07:54,840 --> 00:07:58,019 Sean Aylmer: Michael, I just think it's worth in paying our respects 145 00:07:58,110 --> 00:08:00,509 Sean Aylmer: while talking of the hunter, our thoughts go out to 146 00:08:00,509 --> 00:08:04,049 Sean Aylmer: everyone involved in the tragic bus accident over the weekend, 147 00:08:04,049 --> 00:08:07,290 Sean Aylmer: which killed 10 people traveling back to their accommodation after 148 00:08:07,290 --> 00:08:08,160 Sean Aylmer: celebrating a wedding. 149 00:08:08,430 --> 00:08:11,040 Michael Thompson: Oh, it's just such an awful story, Sean. And those 150 00:08:11,040 --> 00:08:14,520 Michael Thompson: buses are such a common thing after those after weddings 151 00:08:14,520 --> 00:08:17,280 Michael Thompson: taking everybody say back to town, and I think, most 152 00:08:17,280 --> 00:08:18,840 Michael Thompson: people have been on them at the end of a 153 00:08:18,840 --> 00:08:22,529 Michael Thompson: wedding. It's always such an exciting time and no one 154 00:08:22,529 --> 00:08:25,800 Michael Thompson: ever expects it to end in such a terrible tragedy, 155 00:08:25,800 --> 00:08:29,790 Michael Thompson: and it's just such an awful story. Moving on, Sean, 156 00:08:31,590 --> 00:08:34,620 Michael Thompson: this is an interesting story, the share of tax paid by Australia's top 157 00:08:34,620 --> 00:08:37,530 Michael Thompson: earners is at its highest level in at least a 158 00:08:37,530 --> 00:08:41,699 Michael Thompson: decade, with new data showing the top 1% contributed nearly 159 00:08:41,699 --> 00:08:45,689 Michael Thompson: a fifth of personal income tax revenue in 2020/2021. 160 00:08:46,200 --> 00:08:49,620 Sean Aylmer: Figures released by the Australian Taxation Office last week show 161 00:08:49,620 --> 00:08:52,800 Sean Aylmer: the average individual tax bill for the top 1% of 162 00:08:52,800 --> 00:08:58,139 Sean Aylmer: earners was $ 317,000 in the period, up by more than $ 163 00:08:58,139 --> 00:09:03,330 Sean Aylmer: 47,000 from a year previously according to analysis by the AFR, 164 00:09:03,330 --> 00:09:06,000 Sean Aylmer: the Australian Financial Review. The release of the figures came 165 00:09:06,000 --> 00:09:09,300 Sean Aylmer: as the latest national accounts show personal income taxes are 166 00:09:09,300 --> 00:09:13,349 Sean Aylmer: adding up a near record 16% of household earnings as 167 00:09:13,349 --> 00:09:16,679 Sean Aylmer: wage inflation pushes workers into higher tax brackets. The federal 168 00:09:16,679 --> 00:09:20,130 Sean Aylmer: budget has become increasingly reliant on income taxes as inflation 169 00:09:20,370 --> 00:09:24,720 Sean Aylmer: pushes ordinary earnings into higher tax brackets. Last month's budget 170 00:09:24,720 --> 00:09:28,770 Sean Aylmer: papers showed more than 50% of total commonwealth tax revenue 171 00:09:29,130 --> 00:09:33,900 Sean Aylmer: will be paid by individuals next financial year. If ever 172 00:09:33,900 --> 00:09:36,180 Sean Aylmer: there was a need to do something about the tax 173 00:09:36,210 --> 00:09:37,920 Sean Aylmer: system, this story shows it. 174 00:09:38,790 --> 00:09:41,730 Michael Thompson: It's shown a rush of takeovers and a lack of 175 00:09:41,730 --> 00:09:45,210 Michael Thompson: new floats, means the Australian share market will shrink this 176 00:09:45,210 --> 00:09:48,210 Michael Thompson: year for the first time since 2005. 177 00:09:48,570 --> 00:09:50,549 Sean Aylmer: I hadn't really thought much about this, but it's quite 178 00:09:50,549 --> 00:09:54,510 Sean Aylmer: fascinating. So big mergers, particularly in the resources sector, will 179 00:09:54,510 --> 00:09:59,520 Sean Aylmer: contribute to a $ 43 billion shrinkage in the market this year. 180 00:09:59,790 --> 00:10:03,750 Sean Aylmer: Now, that's the first time it's gone backwards since 2005. 181 00:10:04,080 --> 00:10:07,169 Sean Aylmer: Sydney Airport and Crown Resorts were both taken private last 182 00:10:07,170 --> 00:10:09,419 Sean Aylmer: year while Newcrest Mining is on the verge of leaving 183 00:10:09,420 --> 00:10:11,730 Sean Aylmer: the Boss. Newmont is about to take that over. That's 184 00:10:11,730 --> 00:10:15,449 Sean Aylmer: the U. S. based organization. Companies being taken over by 185 00:10:15,450 --> 00:10:19,320 Sean Aylmer: foreign players or private equity isn't really unusual. But normally, 186 00:10:19,320 --> 00:10:22,980 Sean Aylmer: there's a list of initial public offerings to backfill the 187 00:10:22,980 --> 00:10:25,828 Sean Aylmer: exchange. But since the start of last year, there's only 188 00:10:25,830 --> 00:10:29,670 Sean Aylmer: been one float worth more than a $ 100 million. Hence, we're 189 00:10:29,670 --> 00:10:32,728 Sean Aylmer: actually seeing the ASX shrink, which is a real problem, 190 00:10:32,730 --> 00:10:35,520 Sean Aylmer: because we're still contributing plenty more into super. Well, our 191 00:10:35,520 --> 00:10:37,950 Sean Aylmer: big super funds have to put the money somewhere. And, 192 00:10:37,950 --> 00:10:39,270 Sean Aylmer: there's less places to put it. 193 00:10:39,270 --> 00:10:42,030 Michael Thompson: Yeah. Yeah, shrinkage is a real problem, Sean. 194 00:10:42,450 --> 00:10:43,860 Sean Aylmer: Certainly is for some people, Michael. 195 00:10:44,160 --> 00:10:48,838 Michael Thompson: Oh. Savage. Now, there's been some pretty hefty home purchases. 196 00:10:49,050 --> 00:10:50,820 Michael Thompson: Sean, did you see how quickly I moved on there? 197 00:10:50,850 --> 00:10:51,990 Sean Aylmer: You did. Very quickly. 198 00:10:52,050 --> 00:10:55,078 Michael Thompson: And some big sales by some big known names in 199 00:10:55,080 --> 00:10:55,978 Michael Thompson: the past few weeks. 200 00:10:56,070 --> 00:10:59,879 Sean Aylmer: Sure has. Outgoing Qantas chief executive Alan Joyce is one. 201 00:10:59,880 --> 00:11:03,629 Sean Aylmer: He sold $ 17 million worth of shares in the airline just 202 00:11:03,630 --> 00:11:06,449 Sean Aylmer: a few days after purchasing a penthouse in the rocks 203 00:11:06,480 --> 00:11:09,000 Sean Aylmer: overlooking the Sydney Opera House, he paid about 9 million 204 00:11:09,660 --> 00:11:13,020 Sean Aylmer: for that one. Media is reporting that Joyce had held 205 00:11:13,020 --> 00:11:16,830 Sean Aylmer: the shares since 2012. He purchased them for a $1. 50. They 206 00:11:16,830 --> 00:11:21,089 Sean Aylmer: were sold about two weeks ago at $ 6. 74. That 207 00:11:21,089 --> 00:11:24,840 Sean Aylmer: will net Joyce around $ 14. 8 million. And of course, 208 00:11:24,840 --> 00:11:28,350 Sean Aylmer: he still has plenty of Qantas shares. Also, F45 co- 209 00:11:28,350 --> 00:11:31,770 Sean Aylmer: founder Rob Deutsch and his wife Nicole Perso... Not that 210 00:11:31,770 --> 00:11:34,170 Sean Aylmer: I'm a big fans of Rob Deutsch and Nicole Perso 211 00:11:34,170 --> 00:11:36,328 Sean Aylmer: because of what they put me through three or four 212 00:11:36,330 --> 00:11:41,369 Sean Aylmer: times a morning at F45. However, Rob and Nicole, no 213 00:11:41,369 --> 00:11:44,790 Sean Aylmer: personal disrespect, but it does kill me. Anyway, they bought 214 00:11:44,790 --> 00:11:48,990 Sean Aylmer: an apartment in Crown's one Barangaroo Tower for $ 25.5 million. 215 00:11:49,410 --> 00:11:51,389 Sean Aylmer: What I love about this, they have no mortgage. They 216 00:11:51,389 --> 00:11:53,400 Sean Aylmer: just paid cash. And in fact, a few months ago, 217 00:11:53,400 --> 00:11:56,249 Sean Aylmer: they bought a Bellevue Hill house for 37 and a half 218 00:11:56,250 --> 00:11:59,309 Sean Aylmer: million dollars. And once again, cash. No need for finance. 219 00:11:59,520 --> 00:12:01,468 Michael Thompson: Oh, that's not too bad, is it? They're fairly well 220 00:12:02,040 --> 00:12:04,080 Michael Thompson: protected against interest rate rises. 221 00:12:04,350 --> 00:12:04,590 Sean Aylmer: Yeah. 222 00:12:05,340 --> 00:12:08,790 Michael Thompson: Sean, a very large chunk of superannuation money is held 223 00:12:08,790 --> 00:12:12,838 Michael Thompson: in self- managed super funds. Most SMSF trustees want greater 224 00:12:12,840 --> 00:12:16,859 Michael Thompson: control over their money for retirement. But, how about this? 225 00:12:17,100 --> 00:12:20,400 Michael Thompson: Only one in four uses advisors. 226 00:12:20,940 --> 00:12:22,350 Sean Aylmer: Yeah, that really surprised me. 227 00:12:22,530 --> 00:12:22,708 Michael Thompson: Yeah. 228 00:12:22,710 --> 00:12:26,280 Sean Aylmer: Given we're talking about most people's second- largest asset behind 229 00:12:26,280 --> 00:12:31,078 Sean Aylmer: their home. The Vanguard Investment Trends SMSF report shows that 230 00:12:31,080 --> 00:12:35,098 Sean Aylmer: the number of DIY super funds remains high, with wind 231 00:12:35,100 --> 00:12:37,860 Sean Aylmer: down rates, people closing their fund much lower than normal. 232 00:12:38,160 --> 00:12:42,540 Sean Aylmer: The average age of a new SMSF has risen from a 42- year- 233 00:12:42,540 --> 00:12:45,419 Sean Aylmer: old to a 45- year- old over the past year. And 234 00:12:45,420 --> 00:12:49,139 Sean Aylmer: the average balance at establishment now sits at about $ 300,000 235 00:12:49,380 --> 00:12:54,929 Sean Aylmer: up from $220, 000. Now, only 27% of trustees say they 236 00:12:54,929 --> 00:12:58,500 Sean Aylmer: sought advice in the past year, despite the bulk of 237 00:12:58,500 --> 00:13:00,840 Sean Aylmer: them saying they actually need it. In terms of asset 238 00:13:00,840 --> 00:13:04,980 Sean Aylmer: allocation, over a third of SMFS indicated an increased allocation 239 00:13:04,980 --> 00:13:07,919 Sean Aylmer: to cash and cash products. Direct share investments saw the 240 00:13:07,920 --> 00:13:12,149 Sean Aylmer: largest relative decline in most SMSF portfolios. 241 00:13:12,600 --> 00:13:16,650 Michael Thompson: Sean, this next story is definitely one for you. We 242 00:13:16,650 --> 00:13:20,370 Michael Thompson: spoke a few weeks ago about the best apples of 243 00:13:20,370 --> 00:13:23,790 Michael Thompson: all things. And lo and behold, just by sheer coincidence, 244 00:13:24,059 --> 00:13:27,299 Michael Thompson: today, we have a story about a new super variety 245 00:13:27,299 --> 00:13:27,719 Michael Thompson: of apple. 246 00:13:27,929 --> 00:13:30,929 Sean Aylmer: I'm very excited about this. So I was away on 247 00:13:30,929 --> 00:13:35,728 Sean Aylmer: the weekend. I spent three days in Canberra. And, I 248 00:13:35,730 --> 00:13:37,890 Sean Aylmer: was watching a hockey tournament for those three days, to 249 00:13:37,890 --> 00:13:40,889 Sean Aylmer: be honest. And anyway, I reckon I averaged four or 250 00:13:40,889 --> 00:13:41,730 Sean Aylmer: five apples a day. 251 00:13:44,820 --> 00:13:45,958 Michael Thompson: Never been so regular. 252 00:13:46,170 --> 00:13:51,000 Sean Aylmer: No. That's exactly right. I mean, you don't want to eat junk food, and 253 00:13:51,000 --> 00:13:53,520 Sean Aylmer: when you're at these kids sporting tournaments, you end up 254 00:13:53,520 --> 00:13:55,559 Sean Aylmer: eating bacon, egg rolls, and sausage rolls. I thought, " No, 255 00:13:55,559 --> 00:13:58,019 Sean Aylmer: I'm not. I'm going to be sensible." I had four 256 00:13:58,020 --> 00:14:03,059 Sean Aylmer: or five apples a day. And, we've discussed before, I 257 00:14:03,059 --> 00:14:07,950 Sean Aylmer: am a massive fan of Pink Ladies. Absolutely. Yeah, the 258 00:14:07,950 --> 00:14:11,670 Sean Aylmer: 40% of Apple sales in Australia are Pink Ladies. Did 259 00:14:11,670 --> 00:14:12,030 Sean Aylmer: you have that? 260 00:14:12,929 --> 00:14:14,040 Michael Thompson: I didn't realize it was quite that high. 261 00:14:14,040 --> 00:14:18,209 Sean Aylmer: Yeah. Yeah. Anyway, one of the nation's largest apple growers, 262 00:14:18,300 --> 00:14:23,009 Sean Aylmer: Red Rich Fruits has just spent $ 27 million developing a 263 00:14:23,010 --> 00:14:26,400 Sean Aylmer: new variety known as the Cosmic Crisp. 264 00:14:26,760 --> 00:14:28,050 Michael Thompson: Oh, good name. 265 00:14:28,410 --> 00:14:30,930 Sean Aylmer: It's a great name. Red Rich Fruits supplies to all 266 00:14:30,930 --> 00:14:34,890 Sean Aylmer: the major supermarkets. It developed this in the U. S. 267 00:14:35,010 --> 00:14:39,660 Sean Aylmer: and it's now planted 360,000 trees locally. It hopes that 268 00:14:39,660 --> 00:14:43,110 Sean Aylmer: these cosmic crisps will be in store next year. 269 00:14:43,380 --> 00:14:45,150 Michael Thompson: God, they're getting behind it in a big way then. 270 00:14:45,150 --> 00:14:45,721 Sean Aylmer: That's right. 271 00:14:45,721 --> 00:14:49,470 Michael Thompson: 360, 000 trees, because that's not a short term investment either. 272 00:14:50,280 --> 00:14:53,670 Sean Aylmer: I hope they taste good. What I loved is the 273 00:14:53,670 --> 00:14:57,809 Sean Aylmer: director, Matthew Palai, telling the financial review, talking about the 274 00:14:57,809 --> 00:15:01,829 Sean Aylmer: apple saying, " It doesn't oxidize. It's firmer and juicier." That's 275 00:15:01,829 --> 00:15:05,250 Sean Aylmer: his quote. There you go. It actually needs a bit of 276 00:15:05,250 --> 00:15:08,760 Sean Aylmer: a burst, the apple growing sector, because per capita consumption 277 00:15:09,210 --> 00:15:11,850 Sean Aylmer: is today about half what it was 20 years ago. 278 00:15:12,450 --> 00:15:12,930 Michael Thompson: Really? 279 00:15:13,230 --> 00:15:15,540 Sean Aylmer: Yeah. Sure is. Now, Pink Lady is the top seller. 280 00:15:15,870 --> 00:15:18,900 Sean Aylmer: Number two is Royal Gala. And then, the Granny Smith. 281 00:15:19,200 --> 00:15:20,880 Sean Aylmer: I grew up on Granny Smiths, can't go near them 282 00:15:20,880 --> 00:15:24,780 Sean Aylmer: now. Dislike green apples. Totally well behind. They're their top 283 00:15:24,780 --> 00:15:28,980 Sean Aylmer: three well and truly the big sellers. Number four is 284 00:15:28,980 --> 00:15:31,500 Sean Aylmer: Fuji. So I don't mind the odd Fuji. And number 285 00:15:31,500 --> 00:15:32,880 Sean Aylmer: five is Red Delicious. 286 00:15:33,809 --> 00:15:38,760 Michael Thompson: Sean, I've learned two things from you this episode. And they are at 287 00:15:38,760 --> 00:15:41,850 Michael Thompson: very different ends of the spectrum. Number one was when 288 00:15:41,850 --> 00:15:44,220 Michael Thompson: the Federal Reserves decision is on interest rates. 289 00:15:44,220 --> 00:15:44,370 Sean Aylmer: Yes. 290 00:15:44,700 --> 00:15:48,120 Michael Thompson: And the other one is that Pink Ladies make up 291 00:15:48,120 --> 00:15:52,109 Michael Thompson: such a large percentage of apple purchases in Australia. And, 292 00:15:53,609 --> 00:15:57,900 Michael Thompson: that you didn't even mention the most underrated apple in 293 00:15:57,900 --> 00:16:00,960 Michael Thompson: the world, the Golden Delicious. 294 00:16:01,530 --> 00:16:02,910 Sean Aylmer: No, too flowery. 295 00:16:03,840 --> 00:16:07,950 Michael Thompson: Okay. All right. That's a very specific complaint. And very 296 00:16:07,950 --> 00:16:09,329 Michael Thompson: quick actually. It feels like- 297 00:16:09,809 --> 00:16:10,651 Sean Aylmer: I know my apples. 298 00:16:10,651 --> 00:16:13,109 Michael Thompson: ... You did spend a lot of time eating apples 299 00:16:13,110 --> 00:16:13,740 Michael Thompson: this weekend. 300 00:16:14,190 --> 00:16:14,760 Sean Aylmer: I did. 301 00:16:15,000 --> 00:16:18,150 Michael Thompson: All right. Let's get to international news. UBS Group has 302 00:16:18,150 --> 00:16:21,960 Michael Thompson: completed the acquisition of Credit Suisse, sealing the biggest merger 303 00:16:21,960 --> 00:16:26,639 Michael Thompson: in banking since the 2008 financial crisis and creating a 304 00:16:26,639 --> 00:16:29,460 Michael Thompson: global wealth management titan. 305 00:16:29,699 --> 00:16:31,049 Sean Aylmer: Don't you love that? A titan. 306 00:16:31,049 --> 00:16:34,501 Michael Thompson: I never get to use the word Titan. 307 00:16:34,501 --> 00:16:34,502 Sean Aylmer: I know. 308 00:16:34,502 --> 00:16:34,503 Michael Thompson: I miss it. 309 00:16:34,503 --> 00:16:39,090 Sean Aylmer: We thought we'd throw it in. The closing of the deal announced in an open letter published yesterday, 310 00:16:39,300 --> 00:16:44,160 Sean Aylmer: end's Credit Suisse's independent existence after 167 years and allows 311 00:16:44,160 --> 00:16:48,060 Sean Aylmer: UBS to move forward with the very, very complex integration 312 00:16:48,359 --> 00:16:52,230 Sean Aylmer: of its former rival. Now, that process is likely to 313 00:16:52,230 --> 00:16:55,380 Sean Aylmer: involve thousands of job cuts, according to a report on 314 00:16:55,380 --> 00:16:58,770 Sean Aylmer: Bloomberg, there's already been job cuts locally in Australia from 315 00:16:58,770 --> 00:17:02,160 Sean Aylmer: the Credit Suisse operations. The acquisition sets UBS up for 316 00:17:02,160 --> 00:17:04,590 Sean Aylmer: a win for gain of tens of billions of dollars. 317 00:17:04,590 --> 00:17:07,050 Sean Aylmer: Though it will hold assets that could be written down 318 00:17:07,290 --> 00:17:10,530 Sean Aylmer: and there will be legal and regulatory costs. Much of 319 00:17:10,530 --> 00:17:12,900 Sean Aylmer: them are unknown. Now, the closing of the deal comes 320 00:17:12,900 --> 00:17:16,438 Sean Aylmer: after UBS finalized negotiations with the Swiss government over a 321 00:17:16,440 --> 00:17:20,969 Sean Aylmer: 10 billion U. S. dollar guarantee against potential losses. The 322 00:17:20,969 --> 00:17:22,138 Sean Aylmer: deal is now done. 323 00:17:22,920 --> 00:17:27,178 Michael Thompson: All right. Final story, Sean. Silvio Berlusconi, the colorful, perhaps 324 00:17:27,180 --> 00:17:32,309 Michael Thompson: flamboyant even, media mogul who became Italy's longest serving post- 325 00:17:32,309 --> 00:17:35,279 Michael Thompson: war Prime Minister has died, aged 86. 326 00:17:35,670 --> 00:17:39,330 Sean Aylmer: His reign as PM was plagued by sex scandals and 327 00:17:39,330 --> 00:17:43,168 Sean Aylmer: allegations of corruption. Berlusconi was hospitalized in Milan over the 328 00:17:43,170 --> 00:17:47,609 Sean Aylmer: weekend. He had a history of heart ailments. Berlusconi was 329 00:17:47,609 --> 00:17:50,490 Sean Aylmer: one of the most influential figures in Italian politics of the 330 00:17:50,490 --> 00:17:53,849 Sean Aylmer: last three decades. Originally, he built a television empire in the 331 00:17:53,849 --> 00:17:58,230 Sean Aylmer: 1980s. He then deployed his showmanship and talent for catchy 332 00:17:58,230 --> 00:18:02,310 Sean Aylmer: soundbites to win three national elections, which was quite an 333 00:18:02,310 --> 00:18:06,658 Sean Aylmer: incredible feat in Italian politics. Berlusconi faced a string of 334 00:18:06,660 --> 00:18:09,719 Sean Aylmer: judicial proceedings, yet he faced only one conviction in a 335 00:18:09,719 --> 00:18:12,780 Sean Aylmer: tax fraud case that saw him lose his parliamentary seat, 336 00:18:12,990 --> 00:18:17,158 Sean Aylmer: though only temporarily. His fortune was estimated at $ 7. 4 337 00:18:17,160 --> 00:18:21,900 Sean Aylmer: billion by Bloomberg. But, Michael, he ran very much as 338 00:18:21,900 --> 00:18:22,680 Sean Aylmer: a man of the people. 339 00:18:23,400 --> 00:18:26,939 Michael Thompson: Oh, what a story to finish on, Sean. Up next 340 00:18:26,940 --> 00:18:29,490 Michael Thompson: is the Fear and Greed daily interview. Today you're speaking 341 00:18:29,490 --> 00:18:32,280 Michael Thompson: with Lee Howard, CEO of Asialink business. 342 00:18:32,580 --> 00:18:37,140 Sean Aylmer: All about our interaction with buyers of our products in 343 00:18:37,140 --> 00:18:39,869 Sean Aylmer: Asia, but we stay pretty much away from China. We 344 00:18:39,869 --> 00:18:42,900 Sean Aylmer: talk about Indonesia, and India, and other places like that. It's 345 00:18:43,050 --> 00:18:43,710 Sean Aylmer: a great interview. 346 00:18:43,980 --> 00:18:47,010 Michael Thompson: Yeah, absolutely. And, if you were perhaps enjoying a public 347 00:18:47,010 --> 00:18:49,859 Michael Thompson: holiday yesterday and you missed Fear and Greed - The Week 348 00:18:49,859 --> 00:18:53,309 Michael Thompson: Ahead with Stephen Koukoulas, our resident Economist, definitely recommend going 349 00:18:53,309 --> 00:18:55,408 Michael Thompson: back and having a listen to that one as well. 350 00:18:56,040 --> 00:18:56,908 Michael Thompson: Thank you very much, Sean. 351 00:18:57,090 --> 00:18:57,870 Sean Aylmer: Thank you, Michael. 352 00:18:58,020 --> 00:19:01,619 Michael Thompson: It's Tuesday, the 13th of June, 2023. Make sure you're 353 00:19:01,619 --> 00:19:05,490 Michael Thompson: following the podcast. Join us online on LinkedIn, Instagram, Twitter, and 354 00:19:05,490 --> 00:19:07,770 Michael Thompson: Facebook, and stay up to date on all the business 355 00:19:07,770 --> 00:19:11,428 Michael Thompson: news with Alexa and your Amazon Echo Smart speaker. Simply say, " 356 00:19:11,430 --> 00:19:13,859 Michael Thompson: Alexa, play the Fear and Greed podcast," to catch the 357 00:19:13,859 --> 00:19:16,620 Michael Thompson: latest episode. You can get yours now at amazon. com. 358 00:19:17,190 --> 00:19:19,410 Michael Thompson: au. I'm Michael Thompson and that was Fear and Greed. 359 00:19:19,710 --> 00:19:20,340 Michael Thompson: Have a great day.