1
00:00:06,360 --> 00:00:09,120
Speaker 1: Today on Fear and Greed, hopes for a rate cut

2
00:00:09,160 --> 00:00:12,240
Speaker 1: anytime in the next six months, fade why in exports

3
00:00:12,280 --> 00:00:15,400
Speaker 1: to China are booming, and finally some good news on

4
00:00:15,480 --> 00:00:18,480
Speaker 1: home and car insurance premiums. All this plus a great

5
00:00:18,520 --> 00:00:22,560
Speaker 1: story about Chanel's first foray into sports marketing. Welcome to

6
00:00:22,600 --> 00:00:24,960
Speaker 1: Fear and Greed. Daily business news for people who make

7
00:00:24,960 --> 00:00:27,800
Speaker 1: their own decisions. It is Wednesday, the twenty third of

8
00:00:27,840 --> 00:00:30,680
Speaker 1: October twenty twenty four. Are Michael Thompson and Good Morning,

9
00:00:30,720 --> 00:00:31,400
Speaker 1: Sean Aylmer.

10
00:00:31,680 --> 00:00:33,040
Speaker 2: Good morning, Michael.

11
00:00:33,560 --> 00:00:37,080
Speaker 1: Shown the main story this morning. Professional investors are pushing

12
00:00:37,120 --> 00:00:40,400
Speaker 1: out the timing of an interest rate cut in Australia

13
00:00:40,720 --> 00:00:43,560
Speaker 1: towards the middle of next year, hitting the local share market.

14
00:00:44,240 --> 00:00:47,279
Speaker 2: Yes, now, very exciting news on this story, Michael, It's

15
00:00:47,320 --> 00:00:49,319
Speaker 2: all about bond yields. I know how much you love

16
00:00:49,320 --> 00:00:49,920
Speaker 2: bond yields.

17
00:00:51,000 --> 00:00:54,160
Speaker 1: Yes, I have warmed to them over time, you have

18
00:00:54,400 --> 00:00:56,360
Speaker 1: educated me in the importance of them.

19
00:00:56,680 --> 00:01:00,000
Speaker 2: And now I'm all is As you know, bond yield's

20
00:01:00,080 --> 00:01:03,080
Speaker 2: reflect what big investors think is going to happen to

21
00:01:03,120 --> 00:01:06,800
Speaker 2: interest rates and it isn't great news for those wanting

22
00:01:06,920 --> 00:01:10,000
Speaker 2: a rate cut. A little over a month ago, big

23
00:01:10,000 --> 00:01:13,480
Speaker 2: investors had priced in a rate cut sometime this year.

24
00:01:14,160 --> 00:01:17,720
Speaker 2: Now bond neils have risen. That suggests that the first

25
00:01:17,800 --> 00:01:21,880
Speaker 2: cut in rates is now most likely May next year.

26
00:01:22,400 --> 00:01:25,280
Speaker 2: That is a big shift in the past few weeks.

27
00:01:26,000 --> 00:01:29,240
Speaker 2: There's a sense that the Australian economy just isn't slowing

28
00:01:29,360 --> 00:01:32,360
Speaker 2: enough to get inflation down to the Reserve banks preferred

29
00:01:32,480 --> 00:01:37,000
Speaker 2: two to three percent target. Also, US investors think that

30
00:01:37,000 --> 00:01:39,959
Speaker 2: that economy is much better than they thought it might be.

31
00:01:40,360 --> 00:01:42,760
Speaker 2: They think that rate cuts there will take longer to

32
00:01:42,760 --> 00:01:47,280
Speaker 2: flow through. That's pushed into the Australian market. The view

33
00:01:47,360 --> 00:01:49,200
Speaker 2: justice that the Reserve Bank will have to keep rates

34
00:01:49,400 --> 00:01:53,920
Speaker 2: high for longer and bond yels. Professional investors are putting

35
00:01:54,040 --> 00:01:57,040
Speaker 2: money where their thoughts are, and that's why it's such

36
00:01:57,080 --> 00:02:00,200
Speaker 2: a good predictor of what's going to actually happen. It's

37
00:02:00,200 --> 00:02:03,400
Speaker 2: been four years since the Reserve Bank last cut interest rates.

38
00:02:03,760 --> 00:02:07,040
Speaker 2: That was the COVID years. Of course, we're still trading

39
00:02:07,080 --> 00:02:10,239
Speaker 2: around twelve year highs. We would all love a rate cut,

40
00:02:10,280 --> 00:02:12,520
Speaker 2: but as Michelle Willock, the Reserve Bank governor, keeps saying,

41
00:02:13,280 --> 00:02:16,040
Speaker 2: keeping rates higher for longer is much better than not

42
00:02:16,080 --> 00:02:17,440
Speaker 2: being able to get inflation down.

43
00:02:17,840 --> 00:02:20,160
Speaker 1: All right, So there's plenty going on clearly in the

44
00:02:20,160 --> 00:02:23,480
Speaker 1: bond market. What does it then mean for the share market? Sean, Well,

45
00:02:23,480 --> 00:02:23,760
Speaker 1: there was a.

46
00:02:23,840 --> 00:02:26,360
Speaker 2: Really big sell off yesterday. The market fell by nearly

47
00:02:26,400 --> 00:02:29,640
Speaker 2: two percent, finished at just over eighty two hundred points.

48
00:02:29,919 --> 00:02:33,040
Speaker 2: Eighty percent of companies of the top two hundred fell

49
00:02:34,040 --> 00:02:36,400
Speaker 2: Sea of Red. Michael, Sea of Red, I would say,

50
00:02:37,320 --> 00:02:38,840
Speaker 2: don't look at me like that, don't think of me

51
00:02:38,880 --> 00:02:39,080
Speaker 2: like that.

52
00:02:39,160 --> 00:02:41,880
Speaker 1: No, it's either a sea of red or it's like

53
00:02:42,360 --> 00:02:44,920
Speaker 1: there are green shoots or something. It's just a use

54
00:02:44,960 --> 00:02:48,840
Speaker 1: such colorful language in describing the market. Colorful actually made

55
00:02:49,320 --> 00:02:52,200
Speaker 1: you were made for podcasting. It's theater of the mind.

56
00:02:52,240 --> 00:02:55,600
Speaker 2: Sean, excellent. Now, the reason why was it the big

57
00:02:55,639 --> 00:02:58,720
Speaker 2: sell off, Well, they're just these concerns on interest rates

58
00:02:58,760 --> 00:03:01,720
Speaker 2: are really flowing through to equities. Of course, the markets

59
00:03:01,720 --> 00:03:03,919
Speaker 2: at an all time high late last week, and so

60
00:03:04,080 --> 00:03:06,880
Speaker 2: to have this sell off today is kind of it's

61
00:03:06,919 --> 00:03:09,520
Speaker 2: not remarkable, but it's a bit surprising that it's sold

62
00:03:09,560 --> 00:03:13,440
Speaker 2: down so hard. People are worried about consumer spending slowing,

63
00:03:13,639 --> 00:03:16,440
Speaker 2: people are worried about business investments slowing. Some of the

64
00:03:16,520 --> 00:03:19,200
Speaker 2: large caps really tumbled yesterday. That are down between two

65
00:03:19,200 --> 00:03:22,760
Speaker 2: and three percent. Commonwealth Bank, National Australian Bank, Macquarry West

66
00:03:22,800 --> 00:03:26,120
Speaker 2: Farmers was another one. Goodman Aristocrat Leisure. Really those interest

67
00:03:26,200 --> 00:03:30,960
Speaker 2: rate sensitive sectors, think health care, think real estate, think

68
00:03:31,080 --> 00:03:36,320
Speaker 2: consumer discretionary financials, they all really were sold off hard yesterday.

69
00:03:36,720 --> 00:03:39,160
Speaker 2: I'm not sure what's going to happen today, of course,

70
00:03:39,520 --> 00:03:42,520
Speaker 2: but this sentiment ain't real positive at the moment for

71
00:03:42,560 --> 00:03:43,000
Speaker 2: the market.

72
00:03:43,360 --> 00:03:45,320
Speaker 1: Yeah, there is a lot going on in markets. And

73
00:03:45,360 --> 00:03:47,000
Speaker 1: I just love the fact that there I was trying

74
00:03:47,000 --> 00:03:49,200
Speaker 1: to pay you a compliment and you just brushed me

75
00:03:49,240 --> 00:03:53,040
Speaker 1: aside so quickly. Just like here I am complimenting you

76
00:03:53,080 --> 00:03:55,560
Speaker 1: on your language and conveying the importance of these moves

77
00:03:55,560 --> 00:03:57,200
Speaker 1: in the marketing. It's like, yes, yes, yes, let me

78
00:03:57,240 --> 00:04:00,400
Speaker 1: get on with this. Yeah, all right, thanks Sean story.

79
00:04:00,720 --> 00:04:03,640
Speaker 1: Yeah indeed it wise, I shouldn't have interrupted. Now, moving

80
00:04:03,680 --> 00:04:07,200
Speaker 1: on though, wine exports Sean jumped by a third over

81
00:04:07,240 --> 00:04:09,640
Speaker 1: the year to the end of September, showing the importance,

82
00:04:09,880 --> 00:04:12,680
Speaker 1: of course of China as a sales destination.

83
00:04:13,120 --> 00:04:15,960
Speaker 2: In fact, Xbox to China went from eight million dollars

84
00:04:16,160 --> 00:04:19,600
Speaker 2: a year ago to six hundred and twelve million dollars

85
00:04:19,880 --> 00:04:23,160
Speaker 2: in the most recent year according to Wine Australia. Now

86
00:04:23,200 --> 00:04:27,880
Speaker 2: remember tariffs were removed in March this year. Exports to

87
00:04:28,040 --> 00:04:32,200
Speaker 2: China are mostly at premium price points. There's lots of

88
00:04:32,200 --> 00:04:36,400
Speaker 2: restocking going on, particularly in May June months that helped

89
00:04:36,520 --> 00:04:39,240
Speaker 2: boost the overall outcomes as they got all the wine

90
00:04:39,279 --> 00:04:43,160
Speaker 2: onto the shelves. The premium price point means that all

91
00:04:43,200 --> 00:04:45,960
Speaker 2: the cheaper red wine Michael, yes, look at those eyes

92
00:04:46,000 --> 00:04:50,200
Speaker 2: of yep, you're glowing there, Michael. The cheaper red wine,

93
00:04:50,200 --> 00:04:52,640
Speaker 2: well they're not. It's less likely to be sold overseas,

94
00:04:52,720 --> 00:04:55,160
Speaker 2: so plenty for the locals. So if you are more

95
00:04:55,200 --> 00:04:57,800
Speaker 2: of a cheap red wine drinker, I think you could

96
00:04:57,800 --> 00:05:00,200
Speaker 2: be pretty happy with not too many price rises over

97
00:05:00,200 --> 00:05:00,920
Speaker 2: the next little bit.

98
00:05:01,720 --> 00:05:04,240
Speaker 1: Yeah, plenty of stuff to mix with coke. That's right,

99
00:05:04,400 --> 00:05:08,279
Speaker 1: Coca cola. Just to clarify, that was Coca Cola, and

100
00:05:08,360 --> 00:05:11,000
Speaker 1: I don't do that anyway. Can we just move on, please, Sean.

101
00:05:11,320 --> 00:05:15,080
Speaker 2: We can. When you sell the expensive stuff offshore, it

102
00:05:15,200 --> 00:05:17,880
Speaker 2: means your value jump. So the actual volumes were only

103
00:05:17,960 --> 00:05:20,880
Speaker 2: up seven percent, but the value was thirty four percent high.

104
00:05:21,640 --> 00:05:25,200
Speaker 2: Outside China, export levels are stable at about one point

105
00:05:25,240 --> 00:05:27,120
Speaker 2: seven eight billion dollars over the twelve months to the

106
00:05:27,400 --> 00:05:31,159
Speaker 2: end of September. It's really the highest level of shipment

107
00:05:31,240 --> 00:05:35,359
Speaker 2: overall in about three years. Penfolds, of course is the

108
00:05:35,400 --> 00:05:38,720
Speaker 2: biggest exported to China, so they will be benefiting very

109
00:05:38,800 --> 00:05:42,159
Speaker 2: much from this boost in sales to the world's second

110
00:05:42,200 --> 00:05:43,000
Speaker 2: largest economy.

111
00:05:43,240 --> 00:05:45,200
Speaker 1: Yeah, indeed they will. All Right, a quick break and

112
00:05:45,240 --> 00:05:46,600
Speaker 1: we'll be back in a moment with the rest of

113
00:05:46,600 --> 00:05:57,679
Speaker 1: the day's business news. Sean Australia will spend seven billion

114
00:05:57,720 --> 00:06:01,120
Speaker 1: dollars buying long range missiles from the US to strengthen

115
00:06:01,120 --> 00:06:02,480
Speaker 1: its defense capabilities.

116
00:06:02,880 --> 00:06:06,880
Speaker 2: Sure World Defense Industry Minister Patrick Conroy said that the

117
00:06:06,880 --> 00:06:10,640
Speaker 2: world faces the biggest arms race since World War iiO

118
00:06:12,680 --> 00:06:15,680
Speaker 2: wonder whether we remember the sixties. I don't know anyway,

119
00:06:16,279 --> 00:06:18,080
Speaker 2: Moving on, that is.

120
00:06:18,000 --> 00:06:22,560
Speaker 1: A very very very good point. Let's investigate that because

121
00:06:22,680 --> 00:06:24,760
Speaker 1: that is really the arms race, isn't it that?

122
00:06:25,120 --> 00:06:28,480
Speaker 2: That was really quite something five pigs and things like that.

123
00:06:30,640 --> 00:06:31,720
Speaker 1: Crisis, Please move on.

124
00:06:31,760 --> 00:06:35,479
Speaker 2: A few wishes like that. Australia has bought hundreds of

125
00:06:35,560 --> 00:06:38,680
Speaker 2: US made long range weapons for the Navy. They can

126
00:06:38,720 --> 00:06:41,800
Speaker 2: be fired from the land or from sea, capable of

127
00:06:41,839 --> 00:06:46,800
Speaker 2: targeting and destroying aircraft or incoming missiles. Mid air defense

128
00:06:46,920 --> 00:06:51,279
Speaker 2: spending is definitely a big ticket budget item. It's expected

129
00:06:51,279 --> 00:06:53,680
Speaker 2: to hit about one hundred billion dollars a year by

130
00:06:53,680 --> 00:06:56,560
Speaker 2: the end of the decade, which is about double current levels.

131
00:06:57,000 --> 00:07:01,640
Speaker 1: Sean, Australia's third largest company, see Cell, yesterday said that

132
00:07:01,680 --> 00:07:04,720
Speaker 1: it had dropped studies or trials on the three therapies,

133
00:07:04,839 --> 00:07:08,560
Speaker 1: and US regulators have raised concerns around manufacturing of a

134
00:07:08,600 --> 00:07:09,240
Speaker 1: new treatment.

135
00:07:09,600 --> 00:07:11,920
Speaker 2: That certainly didn't help see a Cell's share price, which

136
00:07:12,000 --> 00:07:16,160
Speaker 2: finished down three percent yesterday. Now, the Federal Drug Administration,

137
00:07:17,000 --> 00:07:20,960
Speaker 2: the Federal Drug and Administration, Michael, the FDA, what does

138
00:07:20,960 --> 00:07:24,559
Speaker 2: it stand for? I'm starting the food, food and drug

139
00:07:25,440 --> 00:07:28,080
Speaker 2: that's it. That's it, I said, federally took me off

140
00:07:28,080 --> 00:07:31,600
Speaker 2: on the wrong path. The Food and Drug Administration even noticed.

141
00:07:33,720 --> 00:07:38,000
Speaker 2: The Administration said it's got concerns around the manufacturer of

142
00:07:38,040 --> 00:07:40,440
Speaker 2: an antibody that sees as hell as doing it's supposed

143
00:07:40,480 --> 00:07:43,520
Speaker 2: to treat severe swelling. That's been now put on hold.

144
00:07:43,760 --> 00:07:49,200
Speaker 2: There's also three drugs which they are dropping any further testing,

145
00:07:49,400 --> 00:07:52,760
Speaker 2: basically on the back of regulatory scrutiny or just the

146
00:07:52,760 --> 00:07:55,040
Speaker 2: fact that it will take a long time to actually

147
00:07:55,120 --> 00:07:59,240
Speaker 2: come to market. One is an anticoagulant for treatment of trauma.

148
00:07:59,480 --> 00:08:02,600
Speaker 2: Another another is the muscle inflammation treatment, and the third

149
00:08:02,680 --> 00:08:06,560
Speaker 2: is a treatment targeting kidney transplant recipients. The head of

150
00:08:06,600 --> 00:08:09,200
Speaker 2: research at CSL basically said, well, when you take risks,

151
00:08:09,360 --> 00:08:10,080
Speaker 2: these things happen.

152
00:08:11,000 --> 00:08:13,880
Speaker 1: Viva Energy has downgraded its outlook on the back of

153
00:08:13,960 --> 00:08:19,239
Speaker 1: softer redtail conditions, lower tobacco sales and higher business costs,

154
00:08:19,640 --> 00:08:23,240
Speaker 1: and that sean triggered a near seven percent drop in

155
00:08:23,280 --> 00:08:24,440
Speaker 1: at share price yesterday.

156
00:08:24,840 --> 00:08:26,920
Speaker 2: It was the worst of the top two hundred. Now

157
00:08:27,000 --> 00:08:30,120
Speaker 2: Viva is a really interesting company. It owns the Geelong

158
00:08:30,160 --> 00:08:33,320
Speaker 2: oil refinery. It licenses the Shell brand, It owns and

159
00:08:33,360 --> 00:08:37,760
Speaker 2: sells via the Coals Express brand. It recently bought a

160
00:08:37,920 --> 00:08:41,120
Speaker 2: bunch of convenience stores called on the Run or OTR,

161
00:08:41,520 --> 00:08:46,880
Speaker 2: South Australian based in that industry, in service stations, it's

162
00:08:46,920 --> 00:08:50,160
Speaker 2: as much about high margin convenience retailing as it is

163
00:08:50,200 --> 00:08:55,560
Speaker 2: about low margin fuel sales. Nowaday Nowadays, while fuel sales

164
00:08:55,640 --> 00:09:01,000
Speaker 2: are growing slightly, convenience store and quick service restaurant sales

165
00:09:01,480 --> 00:09:04,920
Speaker 2: turnover was down and it was probably flat except for

166
00:09:05,040 --> 00:09:11,280
Speaker 2: tobacco sales. What's fascinating here. Tobacco sales are really struggling

167
00:09:11,559 --> 00:09:15,120
Speaker 2: on the back of the growth and illicit tobacco, and

168
00:09:15,160 --> 00:09:17,680
Speaker 2: so there's this black market going on in that sector,

169
00:09:18,280 --> 00:09:21,240
Speaker 2: and in some states, particularly South Australia where Viva and

170
00:09:21,280 --> 00:09:26,400
Speaker 2: recently bought that OTR convenience store outlets, it's really knocking

171
00:09:26,720 --> 00:09:31,280
Speaker 2: tobacco sales of places like Viva Energy. I had no

172
00:09:31,400 --> 00:09:34,440
Speaker 2: idea about this massive illicit tobacco trade going on, but

173
00:09:34,520 --> 00:09:38,000
Speaker 2: apparently it's particularly prevalent at the moment.

174
00:09:39,280 --> 00:09:41,160
Speaker 1: That is interesting because I would have thought that if

175
00:09:41,200 --> 00:09:44,520
Speaker 1: tobacco sales were down at convenience doores and service stations

176
00:09:44,559 --> 00:09:46,480
Speaker 1: and the likea would have been for health reasons and

177
00:09:46,480 --> 00:09:50,080
Speaker 1: people just just quitting. But no, it's because they're getting

178
00:09:50,080 --> 00:09:52,040
Speaker 1: it elsewhere in an illicit market.

179
00:09:52,280 --> 00:09:54,200
Speaker 2: Yeah, I mean that was one of the reasons given

180
00:09:54,240 --> 00:09:55,520
Speaker 2: by Viva Energy yesterday.

181
00:09:56,120 --> 00:09:59,360
Speaker 1: Fascinating and it's a good timing for your conversation today

182
00:09:59,600 --> 00:10:02,199
Speaker 1: you're in that comes up after the show. You're speaking

183
00:10:02,200 --> 00:10:05,680
Speaker 1: with Jason Wheat, who is the fund manager at Dexas

184
00:10:05,720 --> 00:10:07,360
Speaker 1: Convenience Retail rout.

185
00:10:07,880 --> 00:10:10,719
Speaker 2: Yes, so Dexas Convenience owns about I think it's one

186
00:10:10,760 --> 00:10:15,840
Speaker 2: hundred and one service stations, convenience stores quick service restaurants

187
00:10:16,160 --> 00:10:19,240
Speaker 2: and so you if you invest in Dexas, you are

188
00:10:19,280 --> 00:10:22,440
Speaker 2: investing in those asset classes. And it's a really fascinating

189
00:10:22,520 --> 00:10:26,559
Speaker 2: chat about the economics of those. Now, obviously Jason's from

190
00:10:26,559 --> 00:10:30,600
Speaker 2: the company, so he's talking up Dexas, but just to

191
00:10:30,679 --> 00:10:34,440
Speaker 2: hear his view on where the potential for those areas

192
00:10:34,480 --> 00:10:36,199
Speaker 2: are is really really fascinating.

193
00:10:36,600 --> 00:10:38,480
Speaker 1: Yeah, it's a good one. It's coming up after the show.

194
00:10:38,760 --> 00:10:42,400
Speaker 1: Wise Tech Global founder CEO Richard White has settled his

195
00:10:42,520 --> 00:10:45,760
Speaker 1: legal dispute with Sidney Wellness entrepreneur Linda Rogan.

196
00:10:46,240 --> 00:10:49,360
Speaker 2: Yeah, so the dispute was over mister White trying to

197
00:10:49,400 --> 00:10:54,840
Speaker 2: bankrupt his former alleged lover. It came to the four

198
00:10:55,040 --> 00:10:57,560
Speaker 2: about ten days ago. Now, it triggered a bunch of

199
00:10:57,600 --> 00:11:01,160
Speaker 2: other allegations which have been exposed by nine Media. One

200
00:11:01,200 --> 00:11:04,160
Speaker 2: of those was the allegation that mister White paid millions

201
00:11:04,200 --> 00:11:07,040
Speaker 2: to privately settle a dispute with another woman he had

202
00:11:07,120 --> 00:11:11,000
Speaker 2: a sexual relationship with. There were also allegations that he

203
00:11:11,080 --> 00:11:15,200
Speaker 2: approached female entrepreneurs on social media with offers of professional

204
00:11:15,280 --> 00:11:19,760
Speaker 2: support that could later shift to crude or suggestive language. Anyway,

205
00:11:19,760 --> 00:11:23,280
Speaker 2: the original reason that we heard all about this the

206
00:11:23,360 --> 00:11:28,559
Speaker 2: dispute with wellness entrepreneur Linda Rogan has been settled yesterday.

207
00:11:29,440 --> 00:11:33,560
Speaker 2: The company's share price, which has absolutely tumbled up until yesterday.

208
00:11:34,000 --> 00:11:36,679
Speaker 2: It opened fell two percent, but then by the end

209
00:11:36,679 --> 00:11:38,200
Speaker 2: of the day finished up three percent.

210
00:11:38,720 --> 00:11:41,439
Speaker 1: Sun Corp held at to AGM yesterday, showing there was

211
00:11:41,480 --> 00:11:44,640
Speaker 1: some good news, good news for once from the insurance

212
00:11:44,720 --> 00:11:48,960
Speaker 1: chief executive Steve Johnston. Big insurance premium hikes might be

213
00:11:49,200 --> 00:11:50,080
Speaker 1: over for now.

214
00:11:50,760 --> 00:11:53,240
Speaker 2: That's right. Some of the very big hikes in recent

215
00:11:53,320 --> 00:11:58,480
Speaker 2: years are in the rearview mirror, he said. Inflation, adverse

216
00:11:58,480 --> 00:12:02,360
Speaker 2: weather and a fundamental re setting global reinsurance markets had

217
00:12:02,440 --> 00:12:07,160
Speaker 2: hit profits at insurers, especially home and motor insurers. That

218
00:12:07,320 --> 00:12:10,280
Speaker 2: led to much higher premiums. This is in recent years,

219
00:12:10,520 --> 00:12:15,280
Speaker 2: well that has It's not over, but certainly the worst

220
00:12:15,480 --> 00:12:18,160
Speaker 2: is over now. Some corps that it dealt with around

221
00:12:18,280 --> 00:12:22,920
Speaker 2: seven hundred thousand natural hazard claims over the past five years.

222
00:12:22,960 --> 00:12:27,080
Speaker 2: Seven hundred thousand at a cost of around nine billion dollars.

223
00:12:27,280 --> 00:12:32,760
Speaker 2: That's why insurance premiums have risen so steeply. It meant

224
00:12:33,240 --> 00:12:36,080
Speaker 2: that the reinsurance industries, the reinsurers are the guy at

225
00:12:36,120 --> 00:12:39,440
Speaker 2: the insurers of the insurance companies or the insurance companies

226
00:12:39,480 --> 00:12:43,520
Speaker 2: get together put a policy for reinsurance that has sort

227
00:12:43,559 --> 00:12:46,000
Speaker 2: of had to be reset in recent years because of

228
00:12:46,160 --> 00:12:49,000
Speaker 2: all these natural disasters. And that's a global thing, not

229
00:12:49,160 --> 00:12:53,720
Speaker 2: just Australia. That seems to be settling down certainly. Steve

230
00:12:53,800 --> 00:12:57,520
Speaker 2: Johnson yesterday said the outlooks more promising. He pushed for

231
00:12:57,559 --> 00:13:01,199
Speaker 2: more government money for disaster mitigation. He says that there

232
00:13:01,200 --> 00:13:04,400
Speaker 2: needs to be investment in resilience infrastructure. He also said

233
00:13:04,440 --> 00:13:07,080
Speaker 2: something pretty sensible. He said people shouldn't build homes where

234
00:13:07,120 --> 00:13:11,000
Speaker 2: they shouldn't be built. It was the first annual general

235
00:13:11,040 --> 00:13:14,720
Speaker 2: meeting since the sale of sun Corps Bank to ain Z.

236
00:13:15,080 --> 00:13:17,199
Speaker 2: Proceeds of the four point one billion dollars is likely

237
00:13:17,280 --> 00:13:20,680
Speaker 2: to go back to shareholders via dividends.

238
00:13:20,800 --> 00:13:24,240
Speaker 1: This seems like logic, doesn't it. Don't build your house

239
00:13:24,240 --> 00:13:27,880
Speaker 1: where you shouldn't build a house. Yeah, good advice, good advice.

240
00:13:27,960 --> 00:13:30,120
Speaker 1: Think so now, Sean, And the interest of keeping things

241
00:13:30,200 --> 00:13:32,000
Speaker 1: moving along at a good pace. If I was to

242
00:13:32,040 --> 00:13:35,880
Speaker 1: give you, say, forty five seconds to run through a

243
00:13:35,920 --> 00:13:37,440
Speaker 1: little bit of extra corporate news, there was a lot

244
00:13:37,440 --> 00:13:39,880
Speaker 1: of corporate news around yesterday. Can you give us a

245
00:13:39,920 --> 00:13:42,679
Speaker 1: few headlines forty five seconds in your time starts now.

246
00:13:43,000 --> 00:13:46,319
Speaker 2: Mineral Resources fell another four percent following Monday's thirteen percent

247
00:13:46,360 --> 00:13:50,079
Speaker 2: loss following news that managing director Chris Ellison allegedly evaded

248
00:13:50,160 --> 00:13:53,960
Speaker 2: tax for many years. Transurban said average daily traffic was

249
00:13:54,040 --> 00:13:56,800
Speaker 2: up one point one percent during the September quarter's two

250
00:13:56,840 --> 00:14:00,280
Speaker 2: point five million trips per day on Transurban time alorway,

251
00:14:00,280 --> 00:14:02,880
Speaker 2: It's two point five million trips per day. Huge thos

252
00:14:02,920 --> 00:14:07,040
Speaker 2: growth across markets except Melbourne. Finally, in my final seven

253
00:14:07,120 --> 00:14:10,000
Speaker 2: or eight seconds, property to developer Mervac said it's making

254
00:14:10,040 --> 00:14:13,800
Speaker 2: solid residential sales in its New Sydney projects in Brisbane,

255
00:14:13,840 --> 00:14:16,240
Speaker 2: in Perth, even Victoria is improving.

256
00:14:17,240 --> 00:14:21,440
Speaker 1: Oh timed to perfection and now we're moving on onto

257
00:14:21,560 --> 00:14:26,600
Speaker 1: international news right on schedule. Winning the US election takes money,

258
00:14:26,720 --> 00:14:29,840
Speaker 1: we know that, but it takes plenty of money and

259
00:14:29,880 --> 00:14:33,560
Speaker 1: the numbers are quite staggering. Karmala Harris has pulled in

260
00:14:33,600 --> 00:14:36,880
Speaker 1: more cash in the past three months than Donald Trump

261
00:14:36,960 --> 00:14:38,720
Speaker 1: has managed over the last year.

262
00:14:38,680 --> 00:14:39,240
Speaker 2: And a half.

263
00:14:39,320 --> 00:14:40,960
Speaker 1: That is just that is incredible.

264
00:14:41,440 --> 00:14:45,240
Speaker 2: Since July twenty one when she when Joe Biden pulled

265
00:14:45,240 --> 00:14:49,360
Speaker 2: out and Carmla Harris became the nominee well, the presumptive

266
00:14:49,400 --> 00:14:53,280
Speaker 2: nominee then and then the nominee. She's received money from

267
00:14:53,360 --> 00:14:58,840
Speaker 2: four point nine million donors, quite amazing. Trump's received money

268
00:14:59,040 --> 00:15:02,720
Speaker 2: since g last year from one point four million donors.

269
00:15:03,240 --> 00:15:05,960
Speaker 2: Harris has raised nine hundred and seventy one million dollars

270
00:15:06,000 --> 00:15:08,880
Speaker 2: in that three months. Trump since the beginning of last

271
00:15:08,960 --> 00:15:13,160
Speaker 2: year eight hundred and ninety four million dollars. Big, big caveat.

272
00:15:13,360 --> 00:15:16,360
Speaker 2: It doesn't include money from what they call super political

273
00:15:16,400 --> 00:15:20,680
Speaker 2: action committees, which are treated differently. So Elon Musk has

274
00:15:20,720 --> 00:15:24,480
Speaker 2: a super pack. If you include that Biden and Harris

275
00:15:24,480 --> 00:15:27,560
Speaker 2: are in front of Trump, that's one point nine billion

276
00:15:27,560 --> 00:15:32,000
Speaker 2: to about one point five billion. Basically, Trump has had

277
00:15:32,360 --> 00:15:37,440
Speaker 2: four very rich billionaires, including Elon Musk, providing him with

278
00:15:37,480 --> 00:15:41,320
Speaker 2: a lot of money through these super packs, much fewer donations,

279
00:15:41,720 --> 00:15:44,560
Speaker 2: and Kamla Harris has just had a huge amount of

280
00:15:44,600 --> 00:15:47,560
Speaker 2: money coming into her less than two weeks ago. In fact, Michael,

281
00:15:47,640 --> 00:15:50,360
Speaker 2: this time to will be in the middle of it.

282
00:15:50,400 --> 00:15:53,680
Speaker 2: This time two weeks us time, ain't it? Wednesday morning?

283
00:15:54,280 --> 00:15:56,280
Speaker 2: Will be watching Glue to the TV.

284
00:15:57,160 --> 00:16:00,600
Speaker 1: Oh, it's going to be very exciting. It is very Yeah.

285
00:16:00,720 --> 00:16:02,360
Speaker 1: I think you and I will both be watching that

286
00:16:02,880 --> 00:16:05,920
Speaker 1: the role in coverage will be something else altogether. Dow

287
00:16:06,040 --> 00:16:09,120
Speaker 1: Jones and The New York Post, owned by Rupert Murdock's

288
00:16:09,120 --> 00:16:13,800
Speaker 1: News Corp, have accused AI startup Perplexity of a scheme

289
00:16:13,880 --> 00:16:15,280
Speaker 1: to rip off their journalism.

290
00:16:15,680 --> 00:16:18,720
Speaker 2: It's going to be very interesting this one. The publisher

291
00:16:19,280 --> 00:16:22,880
Speaker 2: alleges the AI startup was engaging in a massive amount

292
00:16:22,960 --> 00:16:26,000
Speaker 2: of illegal copying of their work. According to a story

293
00:16:26,080 --> 00:16:29,760
Speaker 2: in The Financial Times, it claims forex Or News Corp

294
00:16:29,920 --> 00:16:34,880
Speaker 2: claims Perplexity is diverting customers and critical revenues away from

295
00:16:35,080 --> 00:16:39,440
Speaker 2: news publishers and free writing on the valuable content of

296
00:16:39,520 --> 00:16:44,640
Speaker 2: the publishers produced. Perplexities search engine allows users to get

297
00:16:44,640 --> 00:16:48,880
Speaker 2: instant answers, but the allegation is that the answer engine,

298
00:16:49,200 --> 00:16:53,840
Speaker 2: Perplexity's answer engine, copies and relies on a massive scale

299
00:16:54,280 --> 00:16:59,720
Speaker 2: from copyrighted news, content, analysis and opinion. This looks like

300
00:16:59,840 --> 00:17:02,400
Speaker 2: a very very big test case on AI.

301
00:17:03,520 --> 00:17:06,320
Speaker 1: Definitely won to watch. Finally, Sean I mentioned this one

302
00:17:06,359 --> 00:17:08,080
Speaker 1: at the top of the show. It seems that in sport,

303
00:17:08,640 --> 00:17:12,760
Speaker 1: nothing is not for sale. Chanelle has brought the rights

304
00:17:12,880 --> 00:17:16,560
Speaker 1: to the annual boat race between Oxford and Cambridge and

305
00:17:16,600 --> 00:17:21,080
Speaker 1: the Fashion Houses first push into sports sponsorship. I don't

306
00:17:21,080 --> 00:17:22,439
Speaker 1: think I ever would have expected this.

307
00:17:23,080 --> 00:17:26,320
Speaker 2: Well, the race will be called the Chanell J twelve

308
00:17:27,119 --> 00:17:31,359
Speaker 2: boat Race J twelve being a Chanel watch. You know,

309
00:17:31,359 --> 00:17:33,000
Speaker 2: when you've got to pay like three or four thousand

310
00:17:33,040 --> 00:17:35,040
Speaker 2: dollars for a watch, is it like a time piece?

311
00:17:35,200 --> 00:17:37,320
Speaker 2: Is that where they become time pieces rather than watches?

312
00:17:37,440 --> 00:17:40,159
Speaker 1: Yeah, that's right. It moves past being a watch and

313
00:17:40,240 --> 00:17:41,919
Speaker 1: become an heirloom then.

314
00:17:42,119 --> 00:17:45,760
Speaker 2: Yeah, okay, so the J twelve the Chanel J twelve

315
00:17:45,800 --> 00:17:49,159
Speaker 2: boot Race. Don't know how much it's worth though, I

316
00:17:49,240 --> 00:17:52,399
Speaker 2: must say the main sponsorship previously was from a crypto

317
00:17:52,440 --> 00:17:56,000
Speaker 2: exchange called Gemini, the main sponsorship of the annual boat

318
00:17:56,040 --> 00:17:59,240
Speaker 2: race the Oxford Cambridge boat Race, so Chanel is probably

319
00:17:59,280 --> 00:18:01,960
Speaker 2: more appropriate I think. Of course. The boat race is

320
00:18:02,000 --> 00:18:05,240
Speaker 2: a spring race on the TAMS has about two hundred

321
00:18:05,240 --> 00:18:08,320
Speaker 2: and fifty thousand spectators lining the river there four mile

322
00:18:08,440 --> 00:18:11,840
Speaker 2: course through West London. It's been running for almost two

323
00:18:11,920 --> 00:18:14,480
Speaker 2: hundred years. It's first held in eighteen twenty nine. Women

324
00:18:14,560 --> 00:18:17,480
Speaker 2: joined in nineteen twenty nine. But I think just as

325
00:18:17,520 --> 00:18:22,040
Speaker 2: interesting is that Chanell has never sponsored sport. You often

326
00:18:22,119 --> 00:18:25,879
Speaker 2: see time pieces sponsoring the Australian Open and places like that.

327
00:18:26,200 --> 00:18:29,439
Speaker 2: Chanell's never gone there. They're more kind of what Margo,

328
00:18:29,560 --> 00:18:34,159
Speaker 2: Robbie Penelope Cruz style sponsors. I think anyway, they're jumping

329
00:18:34,160 --> 00:18:35,520
Speaker 2: into the water, so to speak.

330
00:18:35,600 --> 00:18:38,480
Speaker 1: Michael, I think it's a great story. That's a good

331
00:18:38,480 --> 00:18:40,800
Speaker 1: way to finish off today, Sean. Up next is the

332
00:18:40,880 --> 00:18:43,720
Speaker 1: Fear and Greed Daily Interview at Jason Wheat from Dexas

333
00:18:43,760 --> 00:18:47,280
Speaker 1: Convenience Retail Reet is your guest. Also today, the Fear

334
00:18:47,280 --> 00:18:49,680
Speaker 1: and Greed newsletter is coming out. Head along to Fearangreed

335
00:18:49,720 --> 00:18:51,880
Speaker 1: dot com todau and sign up if you haven't already.

336
00:18:52,040 --> 00:18:54,040
Speaker 1: And there's a new episode of How Do They Afford That,

337
00:18:54,080 --> 00:18:56,600
Speaker 1: our sister podcast all about making your money work harder

338
00:18:56,640 --> 00:18:57,840
Speaker 1: for you. Thank you very much, Sean.

339
00:18:58,240 --> 00:18:58,919
Speaker 2: Thank you, Michael.

340
00:18:59,359 --> 00:19:02,000
Speaker 1: It's Wednesday, the twenty third of October twenty twenty four.

341
00:19:02,080 --> 00:19:04,199
Speaker 1: Make sure you're following the podcast and please join us

342
00:19:04,200 --> 00:19:07,879
Speaker 1: online on LinkedIn, Instagram, x TikTok and Facebook. I'm Michael

343
00:19:07,880 --> 00:19:10,240
Speaker 1: Thompson and that was Fear and Greed. Have a great day.