1 00:00:06,240 --> 00:00:08,920 Speaker 1: Global markets teeter on the edge of a major selloff, 2 00:00:08,960 --> 00:00:12,400 Speaker 1: fearing a recession. The federal government wants the Commonwealth Bank 3 00:00:12,520 --> 00:00:15,720 Speaker 1: to counter the influence of China in the Pacific, and 4 00:00:15,760 --> 00:00:19,439 Speaker 1: Warren Buffett dumps billions of dollars worth of Apple shares. 5 00:00:19,760 --> 00:00:22,279 Speaker 1: Welcome to Fear and Greed. Daily business news for people 6 00:00:22,280 --> 00:00:24,640 Speaker 1: who make their own decisions. It is Monday, the fifth 7 00:00:24,680 --> 00:00:28,000 Speaker 1: of August twenty twenty four. Are Michael Thompson and Good Morning, 8 00:00:28,040 --> 00:00:31,920 Speaker 1: Sean Aylmer, Good morning, Michael Sewn. The main story this morning, 9 00:00:31,960 --> 00:00:34,280 Speaker 1: global markets are really teetering on the edge of a 10 00:00:34,360 --> 00:00:38,159 Speaker 1: major selloff as investors become worried about a recession in 11 00:00:38,200 --> 00:00:41,280 Speaker 1: the United States, and the fears are now set to 12 00:00:41,320 --> 00:00:43,720 Speaker 1: push the local ASX down in coming sessions. 13 00:00:44,240 --> 00:00:46,440 Speaker 2: Over the past couple of days, there's been a run 14 00:00:46,479 --> 00:00:49,440 Speaker 2: of data in the US suggesting the world's largest economy 15 00:00:49,520 --> 00:00:53,720 Speaker 2: might be heading for a recession. US hiring slowed sharply 16 00:00:53,800 --> 00:00:56,520 Speaker 2: last month, and the unemployment rate rose to the highest 17 00:00:56,600 --> 00:01:00,320 Speaker 2: level in nearly three years, suggesting a faster deterioration in 18 00:01:00,360 --> 00:01:03,960 Speaker 2: the labor market, at least compared to previous estimates. Then, 19 00:01:04,000 --> 00:01:08,080 Speaker 2: a key manufacturing activity index fell that suggests that that 20 00:01:08,240 --> 00:01:12,240 Speaker 2: sector is in contractionary territory. Putting all this together, investors 21 00:01:12,319 --> 00:01:15,480 Speaker 2: quickly went from looking forward to lower rates to fearing 22 00:01:15,600 --> 00:01:18,959 Speaker 2: a recession is on the way. Suddenly they're talking about 23 00:01:19,080 --> 00:01:22,959 Speaker 2: the FED being too slow to act. Not helping has 24 00:01:23,000 --> 00:01:26,080 Speaker 2: been some of the tech stock earnings results. Apple announced 25 00:01:26,120 --> 00:01:28,320 Speaker 2: a five percent jump in revenue in the June quarter. 26 00:01:28,440 --> 00:01:31,080 Speaker 2: Pretty good. That's on the back of its services business 27 00:01:31,080 --> 00:01:35,240 Speaker 2: and a surge in iPad purchases. But iPhone sales that's 28 00:01:35,240 --> 00:01:39,640 Speaker 2: the heart of the business, continue to decline, particularly in China. Intel, 29 00:01:39,840 --> 00:01:42,400 Speaker 2: once the master of the chip universe no more. Late 30 00:01:42,480 --> 00:01:45,319 Speaker 2: last week, the company revealed plans to cut fifteen thousand 31 00:01:45,440 --> 00:01:48,600 Speaker 2: jobs and reduce capital spending in an attempt to put 32 00:01:48,640 --> 00:01:51,400 Speaker 2: its business back on a stable financial footing. Its share 33 00:01:51,400 --> 00:01:54,200 Speaker 2: price tumble twenty six percent. Bring it closer to home. 34 00:01:54,240 --> 00:01:58,000 Speaker 2: At Lassian, It's promised investors it will soon start winning 35 00:01:58,040 --> 00:02:01,040 Speaker 2: more business off the world's biggest cum after its share 36 00:02:01,040 --> 00:02:05,200 Speaker 2: price tumbled seventeen percent after a big earnings miss late 37 00:02:05,280 --> 00:02:05,880 Speaker 2: last week. 38 00:02:06,240 --> 00:02:08,560 Speaker 1: Well, that company is under a bit of pressure, then, Sean. 39 00:02:08,639 --> 00:02:11,840 Speaker 1: Putting all of this together, what does it mean for Australia. 40 00:02:12,240 --> 00:02:14,360 Speaker 2: Well, the local share market film more than two percent 41 00:02:14,400 --> 00:02:16,800 Speaker 2: on Friday. It was the worst one day fall in 42 00:02:16,880 --> 00:02:19,079 Speaker 2: sixteen months. Now, that, of course, is after hitting a 43 00:02:19,120 --> 00:02:22,400 Speaker 2: new high on Thursday. The selloff on Friday was across 44 00:02:22,440 --> 00:02:25,680 Speaker 2: the board, particularly around energy stocks, the big banks, miners, 45 00:02:25,760 --> 00:02:28,360 Speaker 2: some of the tech stocks, some of the retailers. Futures 46 00:02:28,400 --> 00:02:31,720 Speaker 2: training suggests the sell off will continue today. What's going 47 00:02:31,760 --> 00:02:33,760 Speaker 2: on is markets. 48 00:02:33,280 --> 00:02:34,200 Speaker 3: Are very well. 49 00:02:34,200 --> 00:02:36,920 Speaker 2: At least they were very highly valued. We've been talking 50 00:02:36,919 --> 00:02:41,160 Speaker 2: about this concept of priced to perfection. One slip up 51 00:02:41,480 --> 00:02:44,120 Speaker 2: and a selloff was inevitable. Problem is there's been a 52 00:02:44,240 --> 00:02:46,840 Speaker 2: few slip ups, at least in the US. Tech stocks 53 00:02:46,840 --> 00:02:50,799 Speaker 2: have disappointed. Also, this macro environment, the labor force in 54 00:02:50,840 --> 00:02:54,280 Speaker 2: the US is showing signs that maybe the economy is 55 00:02:54,320 --> 00:02:55,680 Speaker 2: slowing down fairly quickly. 56 00:02:56,240 --> 00:02:56,640 Speaker 3: Michael. 57 00:02:56,760 --> 00:02:59,320 Speaker 2: It really is the ultimate fear and greed story. Or 58 00:02:59,400 --> 00:03:03,120 Speaker 2: maybe it's greed and fear. Everyone was very greedy on 59 00:03:03,120 --> 00:03:05,920 Speaker 2: the way up, wanting to be part of that big upswing. 60 00:03:06,000 --> 00:03:08,760 Speaker 2: That's what we got to that price to infection. Suddenly 61 00:03:08,760 --> 00:03:11,720 Speaker 2: you get some bad news, some poor economic data, fear 62 00:03:11,800 --> 00:03:14,400 Speaker 2: kicks in, you get this big sell off. So it 63 00:03:14,480 --> 00:03:16,800 Speaker 2: is really the ultimate greed and fear story. 64 00:03:17,040 --> 00:03:19,320 Speaker 1: Yeah, it certainly is, and it's also perfect timing for 65 00:03:19,360 --> 00:03:22,560 Speaker 1: the interview that you have coming up today. After the show. 66 00:03:22,600 --> 00:03:25,640 Speaker 1: You're speaking with Bruno Paulson, who is managing director of 67 00:03:25,680 --> 00:03:29,760 Speaker 1: Morgan Stanley Investment Management's International equity team, and he took 68 00:03:29,760 --> 00:03:32,120 Speaker 1: the Opportunities in Australia for a short period of time 69 00:03:32,120 --> 00:03:32,880 Speaker 1: to catch up with him. 70 00:03:33,080 --> 00:03:35,360 Speaker 2: Yeah, we talked to Bruno about what he talks about 71 00:03:35,440 --> 00:03:38,880 Speaker 2: compounding returns on equities. We know all that compounding interest 72 00:03:38,960 --> 00:03:42,120 Speaker 2: and how important that is when you've got money, you know, 73 00:03:42,160 --> 00:03:43,960 Speaker 2: on a term deposit. Well, he's talking about the same 74 00:03:43,960 --> 00:03:47,400 Speaker 2: thing for equities. You invest in high quality companies that 75 00:03:47,520 --> 00:03:50,720 Speaker 2: give strong returns and you keep doing it, and even 76 00:03:50,760 --> 00:03:53,480 Speaker 2: when you end up in a pretty challenging environment, you 77 00:03:53,560 --> 00:03:56,960 Speaker 2: can end up with some fantastic, fantastic returns on that. 78 00:03:57,280 --> 00:03:59,720 Speaker 2: What I thought was fascinating. So we talk about companies. 79 00:04:00,160 --> 00:04:02,720 Speaker 2: There are a few rules he has, recurring revenue, high 80 00:04:02,800 --> 00:04:05,520 Speaker 2: return on capital, once price makers. So I ask him 81 00:04:05,520 --> 00:04:07,840 Speaker 2: about the miners. He goes, Nut never invested in a minor, 82 00:04:07,920 --> 00:04:10,080 Speaker 2: as we're at Australian becks. Nut never invested in the 83 00:04:10,080 --> 00:04:12,440 Speaker 2: Australian banks, and but then he does tell us what 84 00:04:12,480 --> 00:04:14,800 Speaker 2: he does like. So it's a fantastic interview. 85 00:04:15,320 --> 00:04:17,559 Speaker 1: Yeah, indeed, it's a great chat. It's coming up after 86 00:04:17,600 --> 00:04:21,359 Speaker 1: the show, Sean. So equity markets is selling off. We 87 00:04:21,400 --> 00:04:24,640 Speaker 1: have covered that, I would say reasonably comprehensively. What about 88 00:04:24,839 --> 00:04:27,200 Speaker 1: other financial markets? Bonds and commodities? 89 00:04:27,480 --> 00:04:30,320 Speaker 2: Well, Yields on US ten year notes tumbled over the weekend, 90 00:04:30,440 --> 00:04:34,279 Speaker 2: suggesting people think interest rates will fall soon. Bond neils 91 00:04:34,320 --> 00:04:37,440 Speaker 2: locally have also been dropping since last week's inflation figures 92 00:04:37,440 --> 00:04:39,880 Speaker 2: opened the way for a potential rate cut in Australia 93 00:04:39,960 --> 00:04:43,320 Speaker 2: later this year. Over the weekend, Brent crude fell to 94 00:04:43,320 --> 00:04:46,159 Speaker 2: below seventy seven US dollars a barrel. That's the lowest 95 00:04:46,200 --> 00:04:48,760 Speaker 2: in two months. Futures training in Brent crude was down 96 00:04:48,760 --> 00:04:52,320 Speaker 2: to about seventy four US dollars. Gold, however, which is 97 00:04:52,360 --> 00:04:54,720 Speaker 2: where traders go when they're worried about the outlook, hit 98 00:04:54,760 --> 00:04:58,400 Speaker 2: a new record high of two four hundred and seventy 99 00:04:58,400 --> 00:05:01,000 Speaker 2: four US dollars announce. The AUSO dollar also got hit. 100 00:05:01,000 --> 00:05:03,960 Speaker 2: It's training around sixty five US sense Now, markets tend 101 00:05:03,960 --> 00:05:06,800 Speaker 2: to overshoot on the way up and also on the 102 00:05:06,839 --> 00:05:09,760 Speaker 2: way down, while the movements of the past couple of 103 00:05:09,800 --> 00:05:14,080 Speaker 2: sessions might be an overshot. I say might be because who knows, 104 00:05:14,680 --> 00:05:18,600 Speaker 2: certainly sentiment has turned over the past week or two. 105 00:05:19,160 --> 00:05:21,359 Speaker 2: That will all feed into the Reserve Bank of Australia's 106 00:05:21,360 --> 00:05:25,560 Speaker 2: board meeting today and tomorrow Tomorrow afternoon, they'll come out 107 00:05:25,600 --> 00:05:29,240 Speaker 2: and let us know what they're thinking on interest rates. 108 00:05:29,279 --> 00:05:32,200 Speaker 2: No one expects them to shift the benchmark rate, but 109 00:05:32,279 --> 00:05:36,400 Speaker 2: they might just start sounding like they're thinking about moving 110 00:05:36,480 --> 00:05:38,479 Speaker 2: rates lower, and that would be significant. 111 00:05:39,320 --> 00:05:41,839 Speaker 1: You know how the meeting takes two days, Well it's 112 00:05:41,839 --> 00:05:43,839 Speaker 1: really one and a half, isn't it, effectively? 113 00:05:44,240 --> 00:05:44,600 Speaker 3: Do you reckon? 114 00:05:44,640 --> 00:05:47,760 Speaker 1: They make the decision on interest rates very early in 115 00:05:47,800 --> 00:05:49,680 Speaker 1: the meeting, because you imagine by a kind of ten 116 00:05:49,720 --> 00:05:53,080 Speaker 1: o'clock today, ten o'clock Monday morning, they've already decided. Then 117 00:05:53,080 --> 00:05:55,440 Speaker 1: it's like, okay, we're going to chat about for the 118 00:05:55,480 --> 00:05:56,359 Speaker 1: next twenty four. 119 00:05:56,200 --> 00:05:57,560 Speaker 3: Hours, SCons anyone? 120 00:05:58,120 --> 00:06:02,320 Speaker 1: Yeah, just suddenly they're talking about kind of be watching survivor. 121 00:06:04,400 --> 00:06:05,479 Speaker 2: How about them Olympics? 122 00:06:05,480 --> 00:06:07,039 Speaker 3: Eh yeah, oh yeah, that too. 123 00:06:07,960 --> 00:06:10,640 Speaker 1: Just because you would think that on some occasions they 124 00:06:10,640 --> 00:06:13,120 Speaker 1: would get to that quite quickly, wouldn't they, That would 125 00:06:13,160 --> 00:06:13,480 Speaker 1: get to. 126 00:06:13,440 --> 00:06:15,320 Speaker 2: The interest I reckon, you'd have to have a lot 127 00:06:15,360 --> 00:06:18,040 Speaker 2: of Excel spreadsheets, a lot of powerpoints, between. 128 00:06:17,720 --> 00:06:22,000 Speaker 1: A lot of people coming into mauations and various things. Okay, 129 00:06:22,000 --> 00:06:24,120 Speaker 1: so maybe the Olympics are just confined just to the 130 00:06:24,200 --> 00:06:25,200 Speaker 1: lunchtime discussion. 131 00:06:25,279 --> 00:06:27,320 Speaker 2: Oh no, I think I think it will be on 132 00:06:27,400 --> 00:06:29,240 Speaker 2: the lunchtime. But I reckon that I have to go 133 00:06:29,320 --> 00:06:32,040 Speaker 2: through a lot of presentations before making their decision. Even 134 00:06:32,040 --> 00:06:34,080 Speaker 2: if they knew by ten o'clock this morning what the 135 00:06:34,120 --> 00:06:35,960 Speaker 2: decision is, they slept to put up with it. 136 00:06:36,000 --> 00:06:37,880 Speaker 3: I reckon, Yeah, I think you're probably right. 137 00:06:37,960 --> 00:06:39,960 Speaker 1: There is a lot going on. Sean, We'll be back 138 00:06:39,960 --> 00:06:43,080 Speaker 1: in a moment with the rest of the day's business news. 139 00:06:48,560 --> 00:06:48,839 Speaker 3: Sewn. 140 00:06:48,880 --> 00:06:52,680 Speaker 1: The Albanzi government is in negotiations with the Commonwealth Bank 141 00:06:52,880 --> 00:06:56,240 Speaker 1: to set up shop in Nauru to help counter China's 142 00:06:56,279 --> 00:06:59,799 Speaker 1: growing influence in the South Pacific and among Australia's closest neighbors. 143 00:07:00,000 --> 00:07:02,440 Speaker 2: The Australian Financial Review is reporting that the talks are 144 00:07:02,480 --> 00:07:05,800 Speaker 2: progressing and a critical point is how much taxpayer support 145 00:07:06,000 --> 00:07:09,200 Speaker 2: is warranted to set up a Neru operation, given it's 146 00:07:09,400 --> 00:07:12,280 Speaker 2: likely to have little commercial appeal for the Commonwealth Bank. 147 00:07:12,440 --> 00:07:16,120 Speaker 2: Naeru was once a popular banking destination. It had relatively 148 00:07:16,160 --> 00:07:19,960 Speaker 2: loose regulatory settings, had hundreds of banks. Apparently the government 149 00:07:19,960 --> 00:07:23,600 Speaker 2: crackdown in the early two thousands canceled a bunch of licenses. 150 00:07:23,920 --> 00:07:26,520 Speaker 2: The government closed the Bank of Neru in two thousand 151 00:07:26,520 --> 00:07:30,040 Speaker 2: and six, facilitating a cash only economy, which is quite 152 00:07:30,040 --> 00:07:33,239 Speaker 2: an amazing thing to think about. That was until twenty fifteen, 153 00:07:33,280 --> 00:07:35,680 Speaker 2: when it struck an agreement with Bendigo and Adelaide Bank 154 00:07:35,720 --> 00:07:39,320 Speaker 2: to provide limited financial services. Now, last year, Bendigo said 155 00:07:39,320 --> 00:07:43,000 Speaker 2: it would exit Nairu to reduce complexity and simplify its business. 156 00:07:43,320 --> 00:07:46,720 Speaker 2: Bendigo had planned to leave the country by December, but 157 00:07:46,840 --> 00:07:50,360 Speaker 2: extended it to June next year after the nahru And 158 00:07:50,440 --> 00:07:53,320 Speaker 2: government signed a memorandum of understanding with the Bank of 159 00:07:53,400 --> 00:07:57,280 Speaker 2: China to explore a succession plan. Now canber is stepping in, 160 00:07:57,480 --> 00:08:00,000 Speaker 2: putting the pressure on Commonwealth Bank, at least according to 161 00:08:00,200 --> 00:08:02,800 Speaker 2: the report of the Financial Review, to take a role 162 00:08:02,960 --> 00:08:03,800 Speaker 2: in that economy. 163 00:08:04,640 --> 00:08:08,560 Speaker 1: Still on politics sewn, Prime Minister Anthony Abernezia stopped short 164 00:08:08,680 --> 00:08:12,280 Speaker 1: of saying Australia is a more reconciled and united country 165 00:08:12,320 --> 00:08:16,440 Speaker 1: after the failed Indigenous Voice to Parliament referendum, instead declaring 166 00:08:16,880 --> 00:08:20,240 Speaker 1: quote there has to be the objective to achieve that. 167 00:08:20,800 --> 00:08:23,440 Speaker 2: Yeah, he said that we need to be optimistic about 168 00:08:23,480 --> 00:08:26,640 Speaker 2: how we look forward. Who is on the ABC's Insiders program. 169 00:08:26,720 --> 00:08:30,000 Speaker 2: Miss Trailbenzi has spoken very little about the failed referendum 170 00:08:30,120 --> 00:08:33,360 Speaker 2: ever since it was held. He said there is considerable 171 00:08:33,440 --> 00:08:36,000 Speaker 2: hurt from both the outcome and the way the campaign 172 00:08:36,160 --> 00:08:39,560 Speaker 2: was conducted. He had that reconciliation is a process of 173 00:08:39,720 --> 00:08:44,600 Speaker 2: people's needing to walk together. Missra Albanizi said Australia as 174 00:08:44,600 --> 00:08:47,440 Speaker 2: a nation will benefit from being more united and from 175 00:08:47,480 --> 00:08:49,439 Speaker 2: being more reconciled with our history. 176 00:08:49,800 --> 00:08:52,360 Speaker 1: Sewn was a pretty poor weekend for the housing sector, 177 00:08:52,400 --> 00:08:56,360 Speaker 1: with the combined preliminary clearance rate falling below seventy percent 178 00:08:56,400 --> 00:08:57,720 Speaker 1: for the first time in a couple of months. 179 00:08:58,480 --> 00:09:00,560 Speaker 2: Yeah, and in fact there were fewer homes at auction 180 00:09:00,640 --> 00:09:03,040 Speaker 2: as well, so that makes that number probably even worse. 181 00:09:03,120 --> 00:09:06,440 Speaker 2: Melbourne was home to most auctions, about eight hundred when 182 00:09:06,520 --> 00:09:09,040 Speaker 2: under the Hammer came in at seventy point four percent. 183 00:09:09,160 --> 00:09:12,360 Speaker 2: That's the preliminary clearance rate, up slightly from a week ago. 184 00:09:12,480 --> 00:09:15,440 Speaker 2: Sydney held the second largest volume of auctions, just under 185 00:09:15,440 --> 00:09:18,320 Speaker 2: six hundred. The rate came in at sixty nine point 186 00:09:18,400 --> 00:09:20,960 Speaker 2: four percent, which is actually quite a sharp drop from 187 00:09:21,000 --> 00:09:24,240 Speaker 2: the previous week. Brisbane was sixty nine point four, Adelaide 188 00:09:24,320 --> 00:09:26,480 Speaker 2: sixty six point seven, which is a big come down 189 00:09:26,520 --> 00:09:29,640 Speaker 2: for that city. Act came in just under fifty percent. 190 00:09:30,160 --> 00:09:32,000 Speaker 2: Just before we leave the housing market, there's some pretty 191 00:09:32,000 --> 00:09:34,640 Speaker 2: interesting figures out on Friday. The value of new housing 192 00:09:34,640 --> 00:09:37,400 Speaker 2: loans rose one point three percent to about twenty nine 193 00:09:37,440 --> 00:09:41,720 Speaker 2: billion dollars in June. What's happening. Investors are very much 194 00:09:41,800 --> 00:09:44,960 Speaker 2: underpinning the surge. The value of investor loans was thirty 195 00:09:44,960 --> 00:09:48,360 Speaker 2: percent higher than a year ago, while for our owner 196 00:09:48,360 --> 00:09:51,320 Speaker 2: occupies was less than half that. One sector that has 197 00:09:51,360 --> 00:09:53,960 Speaker 2: definitely flatlined over the past couple of years is first 198 00:09:53,960 --> 00:09:58,160 Speaker 2: home buyers, so their proportion of total new housing loans 199 00:09:58,880 --> 00:10:02,960 Speaker 2: really has four in a steady state for two or 200 00:10:02,960 --> 00:10:03,680 Speaker 2: three years now. 201 00:10:04,040 --> 00:10:05,520 Speaker 3: This is an interesting one Sean. 202 00:10:05,559 --> 00:10:10,120 Speaker 1: Almost exactly three years ago, US based Block paid thirty 203 00:10:10,200 --> 00:10:12,840 Speaker 1: nine billion dollars for local buying Now pay later group 204 00:10:12,880 --> 00:10:16,600 Speaker 1: after Pay Block over the weekend upgraded its earnings guidance 205 00:10:16,679 --> 00:10:21,040 Speaker 1: and promoted Nick Molner, who co founded after Pay from 206 00:10:21,040 --> 00:10:23,280 Speaker 1: his garage, to head of sales. 207 00:10:23,280 --> 00:10:25,960 Speaker 2: He's now head of sales reporting to CEO Jack Dorsey. 208 00:10:26,360 --> 00:10:29,319 Speaker 2: It's quite a journey for the one time sydneys Hunter FOCT. 209 00:10:29,320 --> 00:10:32,199 Speaker 2: Do you remember we had Anthony Eisen on the show 210 00:10:32,800 --> 00:10:35,600 Speaker 2: and I think they lived. Nick Molner and Anthony Eiser 211 00:10:35,640 --> 00:10:38,720 Speaker 2: lived in the eastern suburbs of Sydney, and he sort 212 00:10:38,720 --> 00:10:40,640 Speaker 2: of told the story that they were, you know, they 213 00:10:40,679 --> 00:10:43,920 Speaker 2: lived opposite each other and they sort of shouted, hey, 214 00:10:43,960 --> 00:10:46,080 Speaker 2: I've got this good idea. What is it? 215 00:10:46,080 --> 00:10:48,040 Speaker 3: This chat while I was taking the garbage out and. 216 00:10:47,960 --> 00:10:50,439 Speaker 2: Stuff that type of stuff, And that's how After Pay 217 00:10:50,600 --> 00:10:54,720 Speaker 2: came about. Anyway, Nick molin has done well. He will 218 00:10:54,720 --> 00:10:59,439 Speaker 2: oversee the whole business, including Square from a sales perspective. 219 00:10:59,480 --> 00:11:01,800 Speaker 2: Now Square, of course it's the instant payments terminal. I 220 00:11:01,840 --> 00:11:03,800 Speaker 2: know you like that one because you always complain at 221 00:11:04,160 --> 00:11:07,000 Speaker 2: we're going on tangents here. But every time there's a 222 00:11:07,120 --> 00:11:10,880 Speaker 2: federal election and you go to the local school, you 223 00:11:10,960 --> 00:11:13,160 Speaker 2: get the sausage sizzle, and all of a sudden they've 224 00:11:13,160 --> 00:11:14,280 Speaker 2: come out with this Square. 225 00:11:15,400 --> 00:11:20,200 Speaker 1: I expressed I expressed amazement once once to you Sean 226 00:11:20,280 --> 00:11:22,440 Speaker 1: about the fact that even that you could even pay 227 00:11:22,480 --> 00:11:26,040 Speaker 1: with your card now at a at a sausage sizzle, 228 00:11:26,360 --> 00:11:28,800 Speaker 1: and you were so dismissive. You're like, oh, they've been 229 00:11:28,800 --> 00:11:31,720 Speaker 1: doing that for ages and you have never let me 230 00:11:31,760 --> 00:11:33,840 Speaker 1: forget it once I complained. 231 00:11:34,320 --> 00:11:38,800 Speaker 2: Ah, anyway, Nick Molin's in charge of sales for that 232 00:11:38,840 --> 00:11:39,280 Speaker 2: one too. 233 00:11:39,520 --> 00:11:40,040 Speaker 3: There you go. 234 00:11:41,200 --> 00:11:43,400 Speaker 2: If you look at the financial sales across after Pay's 235 00:11:43,440 --> 00:11:46,920 Speaker 2: platform of running at about thirty one billion US dollars 236 00:11:46,960 --> 00:11:49,320 Speaker 2: a year, that's double the level of three years ago, 237 00:11:49,600 --> 00:11:53,560 Speaker 2: so clearly it's picked up significantly. Loss rates were low, 238 00:11:53,840 --> 00:11:56,960 Speaker 2: in line with historical levels. So I mean, not that 239 00:11:57,040 --> 00:11:59,360 Speaker 2: I want to judge whether it was a good purchase 240 00:11:59,440 --> 00:12:02,520 Speaker 2: from Block, but obviously after pay's doing pretty well. Total 241 00:12:02,600 --> 00:12:05,280 Speaker 2: sales at Block across the business actually rose during the 242 00:12:05,360 --> 00:12:08,640 Speaker 2: June quarter. The other co founder Raft to Pay, Anthony Eisen. 243 00:12:09,120 --> 00:12:12,760 Speaker 2: He remains co lead of after pay at Block, so 244 00:12:12,800 --> 00:12:14,120 Speaker 2: he's still in the business as well. 245 00:12:15,679 --> 00:12:19,480 Speaker 1: I don't know about you, sure, but if I had 246 00:12:19,520 --> 00:12:23,280 Speaker 1: sold my business for thirty nine billion dollars and obviously 247 00:12:23,280 --> 00:12:26,240 Speaker 1: they didn't receive all of that, they I think I 248 00:12:26,320 --> 00:12:29,760 Speaker 1: think Nick Molner is worth somewhere between one and a 249 00:12:29,760 --> 00:12:34,959 Speaker 1: half and two billion dollars, and he's thirty four. If 250 00:12:35,000 --> 00:12:37,160 Speaker 1: I was a thirty four year old and I had 251 00:12:37,280 --> 00:12:39,360 Speaker 1: somewhere between one and a half and two billion dollars 252 00:12:39,440 --> 00:12:44,000 Speaker 1: in the bank. I'd probably say, you know what stick 253 00:12:44,040 --> 00:12:44,959 Speaker 1: you promotion. 254 00:12:46,480 --> 00:12:47,280 Speaker 3: Buying a yacht. 255 00:12:47,679 --> 00:12:49,920 Speaker 2: Well, well, the other end of that was last week 256 00:12:49,960 --> 00:12:54,319 Speaker 2: Harry Triggerboff, who I think is ninety three. Yeah, Merriton 257 00:12:54,559 --> 00:12:58,720 Speaker 2: an incredible property man for many years, and he anointed 258 00:12:58,760 --> 00:13:02,760 Speaker 2: a successor for when he no longers running the business, 259 00:13:03,600 --> 00:13:05,800 Speaker 2: which is pretty cool. We did ninety three. 260 00:13:06,200 --> 00:13:08,200 Speaker 3: Yeah, Now, no one on those rich lists. 261 00:13:08,240 --> 00:13:11,400 Speaker 2: You don't ever say rich list worth two point five 262 00:13:11,400 --> 00:13:12,600 Speaker 2: billion dollars? What are they doing? 263 00:13:13,080 --> 00:13:13,560 Speaker 3: Not much? 264 00:13:14,200 --> 00:13:15,000 Speaker 2: Beach at Byron. 265 00:13:15,480 --> 00:13:18,280 Speaker 3: Yeah, they all seem to be working still. Yeah, that's 266 00:13:18,320 --> 00:13:18,960 Speaker 3: a good point. 267 00:13:19,320 --> 00:13:23,679 Speaker 1: Maybe it's my attitude, my attitude, Maybe it's you. I 268 00:13:23,800 --> 00:13:26,720 Speaker 1: think we come back to that sleep apnear group. Res 269 00:13:26,760 --> 00:13:29,680 Speaker 1: Med said revenues jumped nine percent in the June half, 270 00:13:29,720 --> 00:13:33,800 Speaker 1: as expected, as the medical device maker sold more breathing devices, 271 00:13:33,840 --> 00:13:35,520 Speaker 1: masks and software. 272 00:13:35,240 --> 00:13:38,000 Speaker 2: And chief executive Mick Farrell said, rather than the new 273 00:13:38,040 --> 00:13:40,600 Speaker 2: generation of weight loss drugs being bad for res men, 274 00:13:40,720 --> 00:13:43,240 Speaker 2: which we all fought, they could end up being a boon. 275 00:13:43,320 --> 00:13:43,400 Speaker 1: Now. 276 00:13:43,480 --> 00:13:45,880 Speaker 2: Twelve months ago, res Med was sold off on speculation 277 00:13:46,040 --> 00:13:49,360 Speaker 2: that weight loss drugs such as oz zen pick will 278 00:13:49,520 --> 00:13:53,040 Speaker 2: lessen demand for sleep apnea treatments, but on Friday, mister 279 00:13:53,040 --> 00:13:55,480 Speaker 2: Farrell said the new drugs were a catalyst for more 280 00:13:55,520 --> 00:13:58,160 Speaker 2: people to engage with the health system, triggering a business 281 00:13:58,160 --> 00:14:02,240 Speaker 2: opportunity for res men. Resmet is listed both here and 282 00:14:02,360 --> 00:14:04,600 Speaker 2: in the United States. Mister farrells at the fourth quarter 283 00:14:04,679 --> 00:14:07,640 Speaker 2: in full year fiscal twenty twenty four results demonstrate a 284 00:14:07,640 --> 00:14:11,000 Speaker 2: strong performance across all sectors of the business. Is share 285 00:14:11,040 --> 00:14:13,559 Speaker 2: price initially jumped, but then it finished the day down 286 00:14:13,600 --> 00:14:15,880 Speaker 2: two percent, which was about what the market finished down. 287 00:14:16,600 --> 00:14:19,800 Speaker 1: Here's one seawan very much for Nick Molnar and Harry 288 00:14:19,800 --> 00:14:23,680 Speaker 1: Triggebov after our conversation before. Researchers have uncovered a secret 289 00:14:23,800 --> 00:14:26,960 Speaker 1: ingredient for well being in retirement, being able to choose 290 00:14:26,960 --> 00:14:27,760 Speaker 1: when you retire. 291 00:14:28,640 --> 00:14:30,840 Speaker 3: It's not all about the money. Apparently, that's what you 292 00:14:30,880 --> 00:14:32,760 Speaker 3: were trying to tell me before, wasn't it. I think so, 293 00:14:33,000 --> 00:14:33,360 Speaker 3: I think so. 294 00:14:33,400 --> 00:14:36,520 Speaker 2: A new study by Macquarie University and Challenger has found 295 00:14:36,560 --> 00:14:38,720 Speaker 2: that seniors who were able to choose the timing of 296 00:14:38,760 --> 00:14:43,360 Speaker 2: their retirement have much less stress after leaving work. Ten 297 00:14:43,360 --> 00:14:45,840 Speaker 2: percent of Australia's population is set to retire in the 298 00:14:45,840 --> 00:14:50,560 Speaker 2: next decade, which is a phenomenal number. And financial security 299 00:14:50,600 --> 00:14:54,440 Speaker 2: also plays a key role in giving seniors freedom and empowerment. 300 00:14:54,800 --> 00:14:56,920 Speaker 2: Now it's a study of one thousand people aged day 301 00:14:56,920 --> 00:14:59,640 Speaker 2: over sixty according to the Australia and the research also 302 00:14:59,720 --> 00:15:03,359 Speaker 2: found having a clear purpose is vital for positive retirement 303 00:15:03,720 --> 00:15:06,960 Speaker 2: and that seniors receiving a guaranteed income reported higher levels 304 00:15:06,960 --> 00:15:10,000 Speaker 2: of mental health and better social connections. The findings have 305 00:15:10,040 --> 00:15:14,760 Speaker 2: a slight flaw, Michael, not everyone can choose when they 306 00:15:14,760 --> 00:15:17,600 Speaker 2: want to retire. I would be quite happy to retire now, 307 00:15:17,920 --> 00:15:20,200 Speaker 2: for example, well after the show. 308 00:15:20,120 --> 00:15:24,200 Speaker 1: Problem, after today's a mid show retirement, you just leave 309 00:15:24,280 --> 00:15:26,240 Speaker 1: before we get to international news. 310 00:15:27,040 --> 00:15:28,720 Speaker 3: You would miss me too much? 311 00:15:28,880 --> 00:15:31,440 Speaker 2: I would, I wouldn't want to retire. I mean, there 312 00:15:31,480 --> 00:15:33,920 Speaker 2: was some research from Aware Souper Out earlier in the 313 00:15:34,000 --> 00:15:35,680 Speaker 2: year that said two and five US I think it 314 00:15:35,720 --> 00:15:37,880 Speaker 2: was two in five Australians are being forced into retirement 315 00:15:38,640 --> 00:15:41,320 Speaker 2: earlier than they planned. It might be health issues or 316 00:15:41,320 --> 00:15:44,520 Speaker 2: redundancy or burnout or whatever. So I mean, I like 317 00:15:44,600 --> 00:15:46,520 Speaker 2: the idea that you should be able to choose when 318 00:15:46,560 --> 00:15:48,280 Speaker 2: you want to retire and that's good for your well being. 319 00:15:48,280 --> 00:15:50,920 Speaker 2: Only problem is not everyone can all right. 320 00:15:51,040 --> 00:15:52,280 Speaker 3: Turning to international news. 321 00:15:52,280 --> 00:15:55,720 Speaker 1: Now, thanks to blue Chip Communication, the experts helping financial 322 00:15:55,760 --> 00:15:59,480 Speaker 1: services companies market, communicate and grows a blue chip communication 323 00:15:59,560 --> 00:16:03,520 Speaker 1: dot com and John Donald Trump says he is dropping 324 00:16:03,600 --> 00:16:06,560 Speaker 1: out of the next organized debate scheduled for next month, 325 00:16:07,040 --> 00:16:11,520 Speaker 1: presenting a counter proposal to his opponent, Vice President Carmela Harris, 326 00:16:11,760 --> 00:16:14,480 Speaker 1: to face off on Fox News six days earlier. 327 00:16:14,720 --> 00:16:14,920 Speaker 3: Yes. 328 00:16:15,040 --> 00:16:17,880 Speaker 2: Now, Fox News, of course, is far more sympathetic to 329 00:16:18,000 --> 00:16:22,960 Speaker 2: Donald Trump than ABC, which is the scheduled broadcast network 330 00:16:23,240 --> 00:16:25,560 Speaker 2: that is supposed to be running the debate. The change, 331 00:16:25,680 --> 00:16:28,800 Speaker 2: which Trump announced on his social media site Truth Social, 332 00:16:29,080 --> 00:16:31,840 Speaker 2: triggered accusations from the Harris camp that the former president 333 00:16:31,960 --> 00:16:35,040 Speaker 2: is scheming up the Fox News debate to distract from 334 00:16:35,040 --> 00:16:39,240 Speaker 2: renigging on his commitment to the ABC debate. Trump had 335 00:16:39,280 --> 00:16:41,680 Speaker 2: agreed to that debate in May before President Joe Biden 336 00:16:41,720 --> 00:16:44,640 Speaker 2: dropped out of the race. The Harris team basically is 337 00:16:44,680 --> 00:16:48,040 Speaker 2: saying Trump is running scared. Don't know whether he's running scared, 338 00:16:48,120 --> 00:16:50,240 Speaker 2: but I tell you what, he's a little bit more 339 00:16:50,280 --> 00:16:51,880 Speaker 2: worried than he was a couple of weeks ago. 340 00:16:52,320 --> 00:16:53,840 Speaker 3: It does seem that way. Now. 341 00:16:53,960 --> 00:16:56,960 Speaker 1: This next story, Sean is part two of the follow 342 00:16:57,040 --> 00:16:59,440 Speaker 1: the Money segment, which I think we've actually just made. 343 00:16:59,320 --> 00:17:01,680 Speaker 3: Up on the spot, can't we I think so, I 344 00:17:01,680 --> 00:17:01,960 Speaker 3: think so. 345 00:17:02,200 --> 00:17:04,960 Speaker 1: And again, funnily enough, it is about Warren Buffet. It 346 00:17:04,960 --> 00:17:07,040 Speaker 1: could have been the Warren Buffett segment, couldn't it, Because 347 00:17:07,200 --> 00:17:11,600 Speaker 1: he is the greatest investor of his generation. Mister Buffett's 348 00:17:11,600 --> 00:17:15,639 Speaker 1: Berkshire Hathaway has sold half its holding of Apple shares. 349 00:17:15,720 --> 00:17:16,320 Speaker 1: This is big. 350 00:17:17,040 --> 00:17:20,800 Speaker 2: Yeah. He sold three hundred and ninety million Apple shares 351 00:17:20,840 --> 00:17:22,760 Speaker 2: in the second quarter, on top of the one hundred 352 00:17:22,760 --> 00:17:27,280 Speaker 2: and fifteen million shares in the first quarter of this year. Now, 353 00:17:27,280 --> 00:17:30,240 Speaker 2: that's as Apple's stock price rose twenty three percent in 354 00:17:30,280 --> 00:17:33,680 Speaker 2: that six month period. Berkshire Hathaway still owned about four 355 00:17:33,760 --> 00:17:37,760 Speaker 2: hundred million shares that's about eighty four billion dollars worth, 356 00:17:37,800 --> 00:17:40,400 Speaker 2: but it suggests that he has sold about one hundred 357 00:17:40,760 --> 00:17:44,280 Speaker 2: billion dollars so far this year. In recent weeks, Berkshire 358 00:17:44,320 --> 00:17:47,640 Speaker 2: has also been selling down its holdings of Bank of America. 359 00:17:47,720 --> 00:17:50,320 Speaker 2: That was actually the first part of this segment that 360 00:17:50,359 --> 00:17:52,600 Speaker 2: you've just created, Michael, the Following the Money segment. 361 00:17:53,320 --> 00:17:54,040 Speaker 3: What it means is. 362 00:17:53,960 --> 00:17:57,360 Speaker 2: Mister Buffett is growing wary of tech stocks. And banks. 363 00:17:57,600 --> 00:18:01,080 Speaker 2: That's a following money. Part of it slight is that 364 00:18:01,119 --> 00:18:04,040 Speaker 2: Berkshire now has a record cash pile of two hundred 365 00:18:04,080 --> 00:18:05,840 Speaker 2: and seventy seven billion dollars doesn't know what to. 366 00:18:05,800 --> 00:18:11,119 Speaker 3: Do with it. It's a quality problem, high quality. I 367 00:18:11,160 --> 00:18:12,000 Speaker 3: can help them with that. 368 00:18:13,200 --> 00:18:16,200 Speaker 2: Apple has been one of Burkeshie's most important equity investments 369 00:18:16,200 --> 00:18:19,920 Speaker 2: in recent years as US tech stocks powered the broader market. Previously, 370 00:18:19,920 --> 00:18:23,240 Speaker 2: Buffett and his late investment partner Charlie Mungo had been 371 00:18:23,359 --> 00:18:25,960 Speaker 2: really wary of investing in tech stocks, had been burnt 372 00:18:26,080 --> 00:18:30,320 Speaker 2: by IBM in the early noughties. Though that they changed 373 00:18:30,320 --> 00:18:32,359 Speaker 2: their minds and over the years they lamented in the 374 00:18:32,400 --> 00:18:35,800 Speaker 2: fact that they'd set out opportunities in businesses such as Google. 375 00:18:35,840 --> 00:18:38,240 Speaker 2: They jumped into Apple in the way. Now mister Buffett 376 00:18:38,240 --> 00:18:40,560 Speaker 2: looks like he's selling out of Apple, not totally, but 377 00:18:40,640 --> 00:18:44,840 Speaker 2: certainly one hundred billion dollars worth. It's not insignificant, Sean. 378 00:18:44,880 --> 00:18:47,840 Speaker 1: It has been a wild ride today. Up next is 379 00:18:47,920 --> 00:18:51,160 Speaker 1: fear and Greed, The Weak Ahead, featuring our resident economist 380 00:18:51,160 --> 00:18:54,080 Speaker 1: Stephen could call us very very excited today, very. 381 00:18:54,000 --> 00:18:56,960 Speaker 2: Very excited any time there's a Reserve Bank decision in 382 00:18:57,000 --> 00:19:00,480 Speaker 2: the offing Stephen is ready to go talk about all 383 00:19:00,520 --> 00:19:02,880 Speaker 2: those numbers from last week, what the inflation figures mean, 384 00:19:02,920 --> 00:19:05,679 Speaker 2: what he expects from the Reserve Bank today. Definitely I 385 00:19:05,760 --> 00:19:06,359 Speaker 2: must listen. 386 00:19:06,640 --> 00:19:08,959 Speaker 1: Indeed it is, as is the interview that comes up 387 00:19:08,960 --> 00:19:11,800 Speaker 1: after that with Bruno paulse And, Managing director of Morgan 388 00:19:11,880 --> 00:19:14,440 Speaker 1: Stanley Investment Management's International Equity team. 389 00:19:14,720 --> 00:19:17,720 Speaker 2: Yeah, all about the type of companies they like investing 390 00:19:17,760 --> 00:19:20,240 Speaker 2: in and the ones they don't like investing in. And 391 00:19:20,280 --> 00:19:23,199 Speaker 2: there's some really big name Australian companies which they're this 392 00:19:23,320 --> 00:19:25,399 Speaker 2: fund in particular is not going to be investing in. 393 00:19:25,440 --> 00:19:26,680 Speaker 2: So that's well worth listened too. 394 00:19:26,960 --> 00:19:27,160 Speaker 3: Yeah. 395 00:19:27,240 --> 00:19:28,800 Speaker 1: Sure, as they are coming up in the Fear and 396 00:19:28,800 --> 00:19:31,560 Speaker 1: Greed playlist on your podcast platform, or you can find 397 00:19:31,560 --> 00:19:34,400 Speaker 1: them at our website Fearangreed dot com dot au, which 398 00:19:34,440 --> 00:19:36,159 Speaker 1: is also where you can sign up for the free 399 00:19:36,359 --> 00:19:39,200 Speaker 1: weekly newsletter that we send out every Wednesday. So now 400 00:19:39,480 --> 00:19:41,920 Speaker 1: is a perfect opportunity to do that. Thank you very much, Sean, 401 00:19:42,119 --> 00:19:44,439 Speaker 1: Thank you Michael. It is Monday, the fifth of August 402 00:19:44,440 --> 00:19:46,800 Speaker 1: twenty twenty four. Make sure you're following the podcast and 403 00:19:46,840 --> 00:19:51,160 Speaker 1: please join us online on LinkedIn, Instagram, x TikTok and Facebook, 404 00:19:51,440 --> 00:19:53,080 Speaker 1: Michael Thompson, and that was fear and greed. 405 00:19:53,400 --> 00:19:54,080 Speaker 3: Have a great day.