1 00:00:06,280 --> 00:00:08,800 Speaker 1: This is the weekend edition of Fear and Greed business 2 00:00:08,840 --> 00:00:11,480 Speaker 1: News you can use. I'm Michael Thompson and good morning 3 00:00:11,520 --> 00:00:14,480 Speaker 1: Adam Lange. Good morning Michael, now Adam. Our weekend show 4 00:00:14,640 --> 00:00:16,840 Speaker 1: is all about the two of us, each nominating what 5 00:00:16,880 --> 00:00:20,320 Speaker 1: we think is the biggest business news story of the week, 6 00:00:20,880 --> 00:00:24,120 Speaker 1: the most remarkable story, a mystery category that changes every 7 00:00:24,200 --> 00:00:28,000 Speaker 1: single week, and then our favorite business related story. Every week, 8 00:00:28,040 --> 00:00:29,840 Speaker 1: we are joined by a judge to pick a winner. 9 00:00:29,840 --> 00:00:32,080 Speaker 1: Because it is a ferocious competition and usually you are 10 00:00:32,080 --> 00:00:36,000 Speaker 1: the judge yes, But with Sean Aylmer making his way 11 00:00:36,040 --> 00:00:37,000 Speaker 1: around Europe, a. 12 00:00:37,080 --> 00:00:38,839 Speaker 2: Found a better version of a judge. 13 00:00:38,960 --> 00:00:42,320 Speaker 1: Yes, a judge who has ruled several times against you, 14 00:00:42,600 --> 00:00:45,599 Speaker 1: so it was automatically kind of just in favor. Yeah, 15 00:00:45,680 --> 00:00:47,959 Speaker 1: there's got the call up. Today. We are joined by 16 00:00:48,000 --> 00:00:51,400 Speaker 1: AMP Deputy Chief Economist Diana Messina. Deanna, thank you for 17 00:00:51,440 --> 00:00:51,839 Speaker 1: coming in. 18 00:00:51,880 --> 00:00:53,080 Speaker 3: It's a pleasure to be here again. 19 00:00:53,120 --> 00:00:56,360 Speaker 1: Thank you, and very quickly, if you could remind us 20 00:00:56,360 --> 00:00:59,080 Speaker 1: of what you were looking for today. When you are 21 00:00:59,160 --> 00:01:02,800 Speaker 1: judging these these stories, you have a set of criteria 22 00:01:03,320 --> 00:01:06,160 Speaker 1: and they are quite terrifying. 23 00:01:06,640 --> 00:01:09,399 Speaker 3: For me, I don't rule with an iron fist, but 24 00:01:09,400 --> 00:01:10,920 Speaker 3: for some reason clear. 25 00:01:12,240 --> 00:01:12,679 Speaker 1: They're great. 26 00:01:13,200 --> 00:01:18,200 Speaker 3: So there's five criteria. One relevance to timeliness, three is 27 00:01:18,319 --> 00:01:23,119 Speaker 3: unexpected or rare, four economic and financial impact. Five entertainment. 28 00:01:23,400 --> 00:01:25,880 Speaker 3: And I do like taking points away and adding points, 29 00:01:25,880 --> 00:01:28,800 Speaker 3: you know, for sucking up or just something I didn't like. 30 00:01:29,000 --> 00:01:32,480 Speaker 1: Subjective Okay, it's never a good simon. I'm there writing 31 00:01:32,520 --> 00:01:34,840 Speaker 1: down the criteria as you were doing it, as I've 32 00:01:34,840 --> 00:01:36,880 Speaker 1: already decided what my stories are going to be. It's 33 00:01:36,880 --> 00:01:39,640 Speaker 1: the demerit points that I find the most intimidating. I 34 00:01:39,680 --> 00:01:43,360 Speaker 1: love that though, because it means that anything can happen. 35 00:01:43,400 --> 00:01:47,400 Speaker 1: The gloves are off. Indeed, let's get into it. The 36 00:01:47,480 --> 00:01:52,560 Speaker 1: biggest business news story of the week. I think you 37 00:01:52,560 --> 00:01:54,360 Speaker 1: know what. I'm going to go first on this one 38 00:01:54,840 --> 00:01:57,280 Speaker 1: because there was only one, and in doing so, I 39 00:01:57,280 --> 00:02:00,040 Speaker 1: will leave you with nothing to speak about but in 40 00:02:00,120 --> 00:02:03,480 Speaker 1: rest rates, interestates, and I've already got a nod from Deanna, 41 00:02:03,560 --> 00:02:06,200 Speaker 1: so I could to stop right there. But bit of context, 42 00:02:06,280 --> 00:02:08,639 Speaker 1: bit of background. The RBA cut the official cash rate 43 00:02:08,680 --> 00:02:11,320 Speaker 1: by twenty five basis points on Tuesday to three point 44 00:02:11,440 --> 00:02:15,200 Speaker 1: six percent. It was expected at the last meeting. Didn't happen. 45 00:02:15,280 --> 00:02:17,480 Speaker 1: We got it this month instead. After the June quarter 46 00:02:17,520 --> 00:02:20,600 Speaker 1: inflation data confirmed what the RBA wanted to see, that 47 00:02:20,639 --> 00:02:24,720 Speaker 1: inflation is running around target. What comes next, Well, I 48 00:02:24,760 --> 00:02:27,200 Speaker 1: went to the expert on this and checked in to 49 00:02:27,240 --> 00:02:29,720 Speaker 1: see what the economics team at AMP was expecting. 50 00:02:29,800 --> 00:02:31,639 Speaker 3: Love it love already and. 51 00:02:31,840 --> 00:02:36,480 Speaker 1: They're expecting three more cuts November February May, taking the 52 00:02:36,520 --> 00:02:38,639 Speaker 1: cash rate down to two point eight five percent. As 53 00:02:38,639 --> 00:02:40,920 Speaker 1: you can see, I trowled through Shane Oliver's note in 54 00:02:41,040 --> 00:02:43,919 Speaker 1: some detail looking for any tips that I could get 55 00:02:43,919 --> 00:02:45,520 Speaker 1: for today. But there are a couple of things that 56 00:02:45,560 --> 00:02:46,880 Speaker 1: we need to discuss and a couple of things that 57 00:02:46,919 --> 00:02:49,080 Speaker 1: we do need to talk about, and that was that 58 00:02:49,240 --> 00:02:51,679 Speaker 1: at Reserve Bank, Governor Michelle Bullock really focused on the 59 00:02:51,680 --> 00:02:56,280 Speaker 1: productivity challenge, downgrading those productivity forecasts, which can put a 60 00:02:56,440 --> 00:02:59,040 Speaker 1: handbrake on economic growth. It piles the pressure on the 61 00:02:59,080 --> 00:03:02,760 Speaker 1: government now to cut come up with something next week 62 00:03:02,880 --> 00:03:07,200 Speaker 1: at the roundtable in Canberra, to really just get rid 63 00:03:07,240 --> 00:03:08,919 Speaker 1: of the red tape, get things out of the way 64 00:03:09,000 --> 00:03:11,720 Speaker 1: and let the country become more productive and more efficient 65 00:03:11,760 --> 00:03:13,160 Speaker 1: in the way that we do business, and a whole 66 00:03:13,200 --> 00:03:14,840 Speaker 1: lot of other things. The other thing to mention, and 67 00:03:14,880 --> 00:03:18,280 Speaker 1: I realize I'm talking a lot, and there's the potential 68 00:03:18,320 --> 00:03:21,160 Speaker 1: that I'm combining multiple stories into one. But I need 69 00:03:21,200 --> 00:03:24,920 Speaker 1: to mention the market reaction to the interest rate cut. 70 00:03:25,040 --> 00:03:30,040 Speaker 1: The ASX hit another high, another record after the RBA 71 00:03:30,120 --> 00:03:33,560 Speaker 1: cut rates. Honestly to set record after record after record 72 00:03:33,760 --> 00:03:36,800 Speaker 1: this week. But it was interesting, I thought Diana to 73 00:03:36,880 --> 00:03:41,160 Speaker 1: see companies like JB Hi Fi right which took a 74 00:03:41,360 --> 00:03:45,640 Speaker 1: major hit on Monday, reported results. Results were good, but 75 00:03:45,720 --> 00:03:48,400 Speaker 1: the CEO announced that he was leaving for a second time, 76 00:03:48,400 --> 00:03:50,880 Speaker 1: and investors didn't like that and sold off the company. 77 00:03:51,160 --> 00:03:56,360 Speaker 1: But JB High Fi bounced back on Tuesday. All of 78 00:03:56,400 --> 00:03:58,960 Speaker 1: these people, all of these households that will potentially now 79 00:03:59,000 --> 00:04:01,280 Speaker 1: have a little bit more money in their pockets because 80 00:04:01,280 --> 00:04:03,119 Speaker 1: they're not paying as much an interest to the bank, 81 00:04:03,200 --> 00:04:04,840 Speaker 1: might be able to head off to JB High Fi, 82 00:04:04,920 --> 00:04:07,080 Speaker 1: buy a new TV, buy a new toaster, buy a 83 00:04:07,120 --> 00:04:09,160 Speaker 1: new set of headphones. Who knows what they're going to buy, 84 00:04:10,040 --> 00:04:12,320 Speaker 1: and all of a sudden, JB High Fi suddenly looks 85 00:04:12,320 --> 00:04:17,520 Speaker 1: pretty good. Anyway, biggest story of the week, I would argue, 86 00:04:17,520 --> 00:04:21,440 Speaker 1: bigger story of this half of the year to date. 87 00:04:21,640 --> 00:04:25,080 Speaker 1: I realize we are only two months in, but it 88 00:04:25,200 --> 00:04:30,240 Speaker 1: is relevant. It is timely. It is rare. It is 89 00:04:30,279 --> 00:04:34,039 Speaker 1: I would I oh no, I've overstepped the Marktiana's just 90 00:04:34,040 --> 00:04:37,920 Speaker 1: there going. It is an omnibus story and it is 91 00:04:38,080 --> 00:04:42,400 Speaker 1: the biggest story. Adam, good luck, thank you well. 92 00:04:42,520 --> 00:04:46,920 Speaker 2: Unlike my competitor here, I'm just choosing one one story, 93 00:04:47,279 --> 00:04:49,080 Speaker 2: chose category. 94 00:04:48,680 --> 00:04:52,400 Speaker 1: And then I went. You did successfully. 95 00:04:52,640 --> 00:04:56,680 Speaker 2: Australia's biggest banks have delivered strong earnings, but not all 96 00:04:56,680 --> 00:04:59,920 Speaker 2: investors were celebrating this week. Diana financial stocks make a 97 00:05:00,120 --> 00:05:03,280 Speaker 2: twenty eight percent of the ASX two hundred. Not only 98 00:05:03,400 --> 00:05:05,440 Speaker 2: are they the biggest part of the stock market, but 99 00:05:05,480 --> 00:05:07,680 Speaker 2: the big banks are also the best indicator of how 100 00:05:07,720 --> 00:05:12,279 Speaker 2: the Australian economy is performing overall. This week, the world's 101 00:05:12,279 --> 00:05:17,239 Speaker 2: most highly valued bank, CBA reported a record ten point 102 00:05:17,240 --> 00:05:20,839 Speaker 2: twenty five billion dollar full year profit, and that was 103 00:05:20,839 --> 00:05:25,239 Speaker 2: boosted by stronger lending and higher margins, but CBA shares 104 00:05:25,320 --> 00:05:28,440 Speaker 2: dropped nearly five percent on the day. This week also 105 00:05:28,480 --> 00:05:31,480 Speaker 2: saw Westpac announce a fourteen percent rise in net profit 106 00:05:31,760 --> 00:05:34,320 Speaker 2: to one point nine billion for the third quarter, and 107 00:05:34,360 --> 00:05:37,080 Speaker 2: its share price actually gained six point three percent on 108 00:05:37,120 --> 00:05:40,560 Speaker 2: the day. Recently, A and Z and NAB have posted 109 00:05:40,600 --> 00:05:45,400 Speaker 2: steady results mcquarie broadly met expectations. The banks represent some 110 00:05:45,440 --> 00:05:48,040 Speaker 2: of the biggest results in the reporting season overall. They 111 00:05:48,040 --> 00:05:52,520 Speaker 2: announced results on the past, they obviously set expectations for 112 00:05:52,560 --> 00:05:55,400 Speaker 2: the future outlook and give us a huge information set 113 00:05:55,440 --> 00:05:58,200 Speaker 2: to digest. And Deana, we know that is one of 114 00:05:58,240 --> 00:06:01,760 Speaker 2: your many specialties, pouring over data every day. The big 115 00:06:01,880 --> 00:06:06,080 Speaker 2: financial earnings are banked, but uncertainty remains in the forecast, 116 00:06:06,560 --> 00:06:09,719 Speaker 2: and that is why this is the biggest business story 117 00:06:10,200 --> 00:06:10,799 Speaker 2: of the week. 118 00:06:11,240 --> 00:06:14,080 Speaker 1: With the blatant sucking up there, so they're sucking up 119 00:06:14,120 --> 00:06:16,240 Speaker 1: from you too. No, mine was a statement of fact 120 00:06:16,640 --> 00:06:18,760 Speaker 1: that if you've got questions about the economy, you go 121 00:06:18,839 --> 00:06:22,400 Speaker 1: to AMP like that's anyway, fine, that's fine, Please deliver 122 00:06:22,480 --> 00:06:23,080 Speaker 1: your judgment. 123 00:06:24,920 --> 00:06:27,080 Speaker 3: I'm going to give it to Michael only because I 124 00:06:27,120 --> 00:06:30,039 Speaker 3: do think it was the bigger news story. But I 125 00:06:30,160 --> 00:06:33,520 Speaker 3: like the banks one actually, and it was the market 126 00:06:33,520 --> 00:06:36,360 Speaker 3: reaction I guess was unexpected, which you know is surprising. 127 00:06:36,360 --> 00:06:39,600 Speaker 3: We've seen this rotation away from banks into the resource 128 00:06:39,600 --> 00:06:41,479 Speaker 3: of stocks. I think it's important for the share market. 129 00:06:41,800 --> 00:06:43,039 Speaker 3: But Michael, you got that one. 130 00:06:44,760 --> 00:06:48,480 Speaker 1: Thank you. Sorry, I'm almost lost for words, I'm so but. 131 00:06:48,440 --> 00:06:49,480 Speaker 3: You both got bonus points. 132 00:06:49,480 --> 00:06:53,080 Speaker 1: For sucking up perfect that's what we want, yep, melodrama 133 00:06:53,960 --> 00:06:55,880 Speaker 1: being a sicker fan. I'm happy to do whatever it 134 00:06:55,920 --> 00:06:58,599 Speaker 1: takes to get these points, all right. So let's get 135 00:06:58,720 --> 00:07:01,560 Speaker 1: moving on with the remarkable. So what's the just quick 136 00:07:01,600 --> 00:07:05,360 Speaker 1: score recap? One nil? Would you like to go first? 137 00:07:05,360 --> 00:07:08,839 Speaker 1: It's good that you can count so far. Oh wow, 138 00:07:09,480 --> 00:07:12,800 Speaker 1: that hurts. Please after you, Adam, go for it? 139 00:07:13,040 --> 00:07:17,440 Speaker 2: Or remarkable My most remarkable story of the week, Diana. 140 00:07:17,560 --> 00:07:19,720 Speaker 2: The RBA, as we know, cut his cash rate from 141 00:07:19,760 --> 00:07:21,840 Speaker 2: three point eight five to three point six percent on 142 00:07:21,920 --> 00:07:26,120 Speaker 2: Tuesday afternoon, and mortgage holders could finally breathe a little easier. 143 00:07:26,160 --> 00:07:29,040 Speaker 2: That's important, but not the most remarkable point of this story, 144 00:07:29,360 --> 00:07:32,360 Speaker 2: especially after the last RBA meeting to hold interest rates. 145 00:07:32,400 --> 00:07:34,960 Speaker 2: It was not so remarkable. But and here is the 146 00:07:35,000 --> 00:07:40,440 Speaker 2: remarkable butt. Remarkably, the board finalized the decision before key 147 00:07:40,680 --> 00:07:43,960 Speaker 2: labor and wage data was released. The RBA has a 148 00:07:44,040 --> 00:07:47,800 Speaker 2: dual mandate to keep inflation and unemployment low. Governor Michelle 149 00:07:47,840 --> 00:07:52,080 Speaker 2: Bullock insists policy making is guided by the data. Yet 150 00:07:52,080 --> 00:07:55,600 Speaker 2: in this case, some of the most important signals arrived 151 00:07:55,680 --> 00:07:59,120 Speaker 2: after their decision. In the days after the RBA meeting, 152 00:07:59,200 --> 00:08:03,520 Speaker 2: the Australian BUWY statistics revealed that in July unemployment fell 153 00:08:03,560 --> 00:08:05,920 Speaker 2: from four point three percent in June to four point 154 00:08:05,960 --> 00:08:08,760 Speaker 2: two percent, with more than twenty four thousand, five hundred 155 00:08:08,840 --> 00:08:12,080 Speaker 2: jobs created. Now that includes a surge of sixty thousand, 156 00:08:12,240 --> 00:08:15,280 Speaker 2: five hundred full time jobs, a drop of thirty six 157 00:08:15,400 --> 00:08:19,560 Speaker 2: thousand part time roles, and record female participation at sixty 158 00:08:19,600 --> 00:08:23,000 Speaker 2: three point five percent. Now. Next came the annual wage 159 00:08:23,000 --> 00:08:26,080 Speaker 2: growth numbers, revealing a modest point eight percent for the 160 00:08:26,200 --> 00:08:30,160 Speaker 2: quarter and three point four percent annually. So what's so remarkable. 161 00:08:30,480 --> 00:08:33,560 Speaker 2: The RBA's meeting dates are scheduled well in advance, but 162 00:08:33,679 --> 00:08:37,280 Speaker 2: so have been and are the ABS releases. So surely 163 00:08:37,720 --> 00:08:39,800 Speaker 2: a quick chat to align the diaries. 164 00:08:39,480 --> 00:08:40,120 Speaker 1: Could have helped. 165 00:08:40,440 --> 00:08:42,959 Speaker 2: Let's not do this again next year, RBA, have a 166 00:08:43,040 --> 00:08:45,800 Speaker 2: chat with the ABS, line up your diaries and make 167 00:08:45,880 --> 00:08:48,800 Speaker 2: sure that this is far more data driven decision making 168 00:08:49,080 --> 00:08:52,040 Speaker 2: in a far less remarkable outcome next year. 169 00:08:52,800 --> 00:08:56,200 Speaker 1: Did you just send a memo to the Reserve Bank? Yeah, love, Adam, 170 00:08:57,480 --> 00:08:59,320 Speaker 1: I'm sure they will be discussing that a month. Did 171 00:08:59,400 --> 00:09:02,840 Speaker 1: everyone here kind regards? Did everybody hear what Adam Lang 172 00:09:02,880 --> 00:09:04,559 Speaker 1: said on the weekend? We've got to fix this for 173 00:09:04,640 --> 00:09:06,640 Speaker 1: next year. He's right, we didn't think of this. Hang 174 00:09:06,679 --> 00:09:10,000 Speaker 1: on a minute, it's onto something the most remarkable storry. 175 00:09:10,000 --> 00:09:12,520 Speaker 1: Mine's a really serious one and I will keep it 176 00:09:12,600 --> 00:09:14,679 Speaker 1: quite quick. The federal government this week announced that it 177 00:09:14,679 --> 00:09:17,840 Speaker 1: would join other countries like Canada and the UK and 178 00:09:17,960 --> 00:09:22,000 Speaker 1: France in recognizing Palestinian statehood. It's going to happen at 179 00:09:22,040 --> 00:09:25,840 Speaker 1: the UN General Assembly next month, Prime Minister Anthony Alberanezi 180 00:09:25,880 --> 00:09:27,960 Speaker 1: saying that a two state solution is the best hope 181 00:09:28,040 --> 00:09:30,720 Speaker 1: of ending the conflict in Gaza. Now, it has been 182 00:09:30,840 --> 00:09:33,280 Speaker 1: brewing for a while. There's been talk of this happening 183 00:09:33,320 --> 00:09:35,480 Speaker 1: for quite some time, but it was really pushed forward 184 00:09:35,480 --> 00:09:38,959 Speaker 1: agained a lot of momentum after last week's announcement from 185 00:09:39,080 --> 00:09:45,000 Speaker 1: Israel's Prime Minister Benjamin Netanyahu that Israel would occupy Gaza. Now, politically, 186 00:09:45,040 --> 00:09:47,880 Speaker 1: this is a it is a major story, obviously, and 187 00:09:47,960 --> 00:09:49,400 Speaker 1: the thing is that we are at odds with the 188 00:09:49,480 --> 00:09:52,280 Speaker 1: United States on this one, and the US Ambassador to 189 00:09:52,400 --> 00:09:56,560 Speaker 1: Israel told the ABC late in the week that he 190 00:09:56,640 --> 00:10:00,440 Speaker 1: had discussed it with President Donald Trump. And there's an 191 00:10:00,600 --> 00:10:04,880 Speaker 1: enormous level of disappointment and some disgust, but at this point, 192 00:10:04,920 --> 00:10:07,400 Speaker 1: the fear ahead of time they've been talked potentially that 193 00:10:07,440 --> 00:10:10,400 Speaker 1: Australia might end up being punished through tariffs and the like. 194 00:10:10,440 --> 00:10:13,000 Speaker 1: It doesn't appear to have eventuated. I just think this 195 00:10:13,040 --> 00:10:17,400 Speaker 1: is a remarkable story because of the political ramifications of it, 196 00:10:17,480 --> 00:10:20,280 Speaker 1: and because while it had been building for some time, 197 00:10:20,960 --> 00:10:23,360 Speaker 1: it then just happened really quickly when it got to 198 00:10:23,400 --> 00:10:26,320 Speaker 1: that point of momentum, building and building and building, and 199 00:10:26,320 --> 00:10:29,400 Speaker 1: then bang it was announced. And it also shows Australia 200 00:10:29,480 --> 00:10:34,680 Speaker 1: making its own decisions very much independent of the US 201 00:10:34,960 --> 00:10:38,160 Speaker 1: on this one, and I think for that reason, really 202 00:10:38,160 --> 00:10:40,040 Speaker 1: it is quite remarkable. And that's it. 203 00:10:41,000 --> 00:10:43,720 Speaker 3: I like it, the politics mixed with the business. But 204 00:10:43,760 --> 00:10:46,600 Speaker 3: I'm going to give it to Adam because I completely agree. 205 00:10:46,760 --> 00:10:49,720 Speaker 3: What is the RBA doing by not aligning astaries? We 206 00:10:49,720 --> 00:10:52,040 Speaker 3: were talking about that this week as well. It doesn't 207 00:10:52,040 --> 00:10:54,280 Speaker 3: make any sense, and it's happened a few times. 208 00:10:54,000 --> 00:10:56,600 Speaker 2: It has well. And I'm also missing I know you're 209 00:10:56,640 --> 00:10:59,520 Speaker 2: the same, Michael Ban creatures of habit as we are. 210 00:11:00,080 --> 00:11:03,080 Speaker 2: That Tuesday meeting of the RBA had monthly. I got 211 00:11:03,160 --> 00:11:05,280 Speaker 2: used to that and I liked it, so I missed 212 00:11:05,320 --> 00:11:07,280 Speaker 2: this sort of regular frequency as well. 213 00:11:07,520 --> 00:11:10,000 Speaker 1: That made it super easy when you just knew every Tuesday, 214 00:11:10,040 --> 00:11:13,040 Speaker 1: the first Tuesday of every month, it was going to 215 00:11:13,040 --> 00:11:13,800 Speaker 1: be RBA Day. 216 00:11:13,920 --> 00:11:16,120 Speaker 3: Yeah, I'm not really enjoying the press conferences. I sort 217 00:11:16,120 --> 00:11:20,400 Speaker 3: of feel like the commentary As an economist, I shouldn't 218 00:11:20,440 --> 00:11:22,439 Speaker 3: be saying this because I feel like most economists love 219 00:11:22,480 --> 00:11:25,000 Speaker 3: more commentary from the central bank, But I feel like 220 00:11:25,080 --> 00:11:28,200 Speaker 3: the commentary in the postmating statement often often differs to 221 00:11:28,400 --> 00:11:32,280 Speaker 3: the sentiment that comes out of the press conference or 222 00:11:32,520 --> 00:11:35,280 Speaker 3: and then the minutes sometimes even show a different view. 223 00:11:35,280 --> 00:11:36,960 Speaker 3: So I sort of like, are they changing the minutes 224 00:11:37,040 --> 00:11:39,800 Speaker 3: to change market pricing? Obviously they're not really meant to 225 00:11:39,840 --> 00:11:42,800 Speaker 3: do that, but I feel like we are getting were 226 00:11:42,800 --> 00:11:45,920 Speaker 3: sometimes getting strange communication from our central bank, like this 227 00:11:46,400 --> 00:11:50,600 Speaker 3: this week, everything was about the productivity changes in the 228 00:11:50,679 --> 00:11:54,240 Speaker 3: SOMP that shouldn't have been a focus, but then we're 229 00:11:54,240 --> 00:11:58,319 Speaker 3: getting these sort of unclear messages from what the RBA 230 00:11:58,400 --> 00:12:00,760 Speaker 3: is actually focusing on. As an economist reading the SOMP, 231 00:12:00,840 --> 00:12:02,839 Speaker 3: I'm actually unclear what they're trying to tell us. 232 00:12:03,360 --> 00:12:05,280 Speaker 1: I see Adam breaking out in a rash at the 233 00:12:05,280 --> 00:12:11,880 Speaker 1: moment no statement of monetary policy, I'm like stop, ah, 234 00:12:12,040 --> 00:12:13,520 Speaker 1: Like that makes me feel like we're on. 235 00:12:13,480 --> 00:12:16,120 Speaker 2: This this is in my wheelhouse, I mean comfortable territory with 236 00:12:16,160 --> 00:12:18,640 Speaker 2: that one. But to me, Diana, to your point, I 237 00:12:18,679 --> 00:12:22,080 Speaker 2: think I also feel like the story evolves. Yeah, it's 238 00:12:23,000 --> 00:12:26,160 Speaker 2: no stage is certain, and so I'm lest kind of 239 00:12:26,160 --> 00:12:27,800 Speaker 2: thinking about it more than perhaps I want to. 240 00:12:28,720 --> 00:12:31,520 Speaker 1: Would you prefer, out of all of the various kind 241 00:12:31,520 --> 00:12:33,920 Speaker 1: of ways that things are being communicated, would you just 242 00:12:34,000 --> 00:12:36,600 Speaker 1: rather just have that statement and just be able to 243 00:12:36,640 --> 00:12:40,959 Speaker 1: interpret the language in the SOMP or would you think 244 00:12:40,960 --> 00:12:42,760 Speaker 1: the better way to do it would just be to 245 00:12:42,800 --> 00:12:45,199 Speaker 1: have the press conference so there aren't these conflicting things 246 00:12:45,240 --> 00:12:46,920 Speaker 1: because there is so much more that can come through 247 00:12:46,920 --> 00:12:48,920 Speaker 1: in the press conference. A little bit more context and 248 00:12:48,960 --> 00:12:52,000 Speaker 1: analysis can be provided. There. Wouldn't that be the preferable one. 249 00:12:52,600 --> 00:12:55,320 Speaker 3: I mean, yes, it would be, But I think that 250 00:12:55,360 --> 00:12:58,800 Speaker 3: the communication needs work. The FED has a press conference 251 00:12:58,880 --> 00:13:01,520 Speaker 3: not every meeting, but every few meetings, and they don't 252 00:13:01,520 --> 00:13:05,880 Speaker 3: seem to have a problem with communication. The story just 253 00:13:05,920 --> 00:13:10,640 Speaker 3: seems to change from the RBA often, and the messages 254 00:13:10,679 --> 00:13:13,920 Speaker 3: can be conflicting and a bit confusing. For example, like 255 00:13:13,960 --> 00:13:18,120 Speaker 3: the productivity changes that should be a long term forecast 256 00:13:18,200 --> 00:13:20,199 Speaker 3: for the Central Bank not really something that should change 257 00:13:20,320 --> 00:13:23,080 Speaker 3: two year forecasts. Myself was a bit confused about why 258 00:13:23,160 --> 00:13:26,240 Speaker 3: that was a big deal or there was a few 259 00:13:26,440 --> 00:13:31,000 Speaker 3: a few months ago, the RBA was talking about aggregate 260 00:13:31,040 --> 00:13:33,680 Speaker 3: demand and supply and the levels and growth. It just 261 00:13:33,800 --> 00:13:37,440 Speaker 3: it gets lost because people, even I was confused as 262 00:13:37,440 --> 00:13:39,120 Speaker 3: an economist about that. I think it gets lost to 263 00:13:39,160 --> 00:13:41,480 Speaker 3: the general public. I think that their communication needs some work. 264 00:13:41,559 --> 00:13:43,680 Speaker 1: So you're saying that the RBA injecting a bit of 265 00:13:43,720 --> 00:13:49,400 Speaker 1: mystery and excitement into their communications is not a good thing. Uncertainty, Yes, 266 00:13:49,920 --> 00:13:52,400 Speaker 1: I think they're just trying things out. Anyway. I love 267 00:13:52,440 --> 00:13:55,080 Speaker 1: the press conference just because I just I just love 268 00:13:55,600 --> 00:13:58,960 Speaker 1: seeing the way Michelle Buller candles those questions Scoot Thompson 269 00:13:59,080 --> 00:14:00,680 Speaker 1: in the room. Fun, wouldn't it. 270 00:14:00,760 --> 00:14:05,200 Speaker 3: She handles them very well. But that's that's what I'm 271 00:14:05,200 --> 00:14:05,640 Speaker 3: going to point. 272 00:14:06,200 --> 00:14:09,480 Speaker 1: Here we go, Okay, well, we have now provided the 273 00:14:09,520 --> 00:14:17,160 Speaker 1: RBA with even more feedbackis Christmas card? We'll see. Okay, 274 00:14:17,280 --> 00:14:19,720 Speaker 1: So now we are at one all, which is pretty even. 275 00:14:20,440 --> 00:14:21,240 Speaker 3: The difference in points. 276 00:14:21,240 --> 00:14:23,960 Speaker 1: I'm just oh, this is great. Still race, there is 277 00:14:24,040 --> 00:14:26,640 Speaker 1: so many levels of excitement. There's more excitement and mystery 278 00:14:26,680 --> 00:14:28,960 Speaker 1: here than in an RBA press conference. This is ripper. 279 00:14:29,240 --> 00:14:30,680 Speaker 1: Let's take a quick break and we'll come back with 280 00:14:30,720 --> 00:14:40,840 Speaker 1: our mystery story of the week. Adam, it is time 281 00:14:40,920 --> 00:14:46,000 Speaker 1: now for our anticipation. Just then our mystery story of 282 00:14:46,040 --> 00:14:48,920 Speaker 1: the week. And this is the category that changes to 283 00:14:49,040 --> 00:14:54,000 Speaker 1: keep you, Diana as our judge on your toes. So 284 00:14:54,120 --> 00:14:56,200 Speaker 1: this week we had a look around and we have 285 00:14:56,280 --> 00:15:01,480 Speaker 1: decided that the mystery category is our the reform story 286 00:15:01,600 --> 00:15:04,800 Speaker 1: of the week right, because there's a lot around Reformers 287 00:15:04,920 --> 00:15:09,280 Speaker 1: is the big topic at the moment. Shall you know what, Adam, 288 00:15:09,360 --> 00:15:10,120 Speaker 1: you go first on. 289 00:15:10,080 --> 00:15:13,680 Speaker 2: This very well. Now, thank you so for me, Michael 290 00:15:13,720 --> 00:15:16,960 Speaker 2: and for many. It's finally coming. The big day out 291 00:15:17,040 --> 00:15:20,560 Speaker 2: for pro reformers. The Economic Reform round Table, led by 292 00:15:20,560 --> 00:15:24,080 Speaker 2: Treasurer Jim Charmers, will gather leaders from business, unions, civil 293 00:15:24,160 --> 00:15:27,200 Speaker 2: society and government at Parliament House, Canberra from nineteen to 294 00:15:27,240 --> 00:15:29,920 Speaker 2: twenty one August twenty twenty five. Put them in your diary. 295 00:15:30,640 --> 00:15:33,440 Speaker 2: Big show in town this week. The hot topic is 296 00:15:33,480 --> 00:15:36,280 Speaker 2: the proposal for a four day work week, Saint pay, 297 00:15:36,600 --> 00:15:39,800 Speaker 2: fewer days hi well being what could possibly go wrong? 298 00:15:40,000 --> 00:15:43,480 Speaker 2: Trials in Iceland, the UK, New Zealand and Australia show 299 00:15:43,520 --> 00:15:48,360 Speaker 2: productivity can hold steady even improve. In certain examples, you 300 00:15:48,440 --> 00:15:50,920 Speaker 2: might wonder what were they doing before when they were 301 00:15:50,960 --> 00:15:54,240 Speaker 2: working all five days, but let's pass put that aside 302 00:15:54,280 --> 00:15:57,120 Speaker 2: for a moment. The RBA this week cut its long 303 00:15:57,240 --> 00:16:00,880 Speaker 2: term productivity forecast from one to zero point seven percent, 304 00:16:00,960 --> 00:16:05,200 Speaker 2: slashing GDP growth expectations from two point one to one 305 00:16:05,240 --> 00:16:06,160 Speaker 2: point seven percent. 306 00:16:06,240 --> 00:16:06,480 Speaker 1: Now. 307 00:16:06,720 --> 00:16:11,360 Speaker 2: Slower productivity obviously means weaker wages, outshold incomes are disaffected 308 00:16:11,800 --> 00:16:17,160 Speaker 2: and living standards despite rate cuts easing mortgage costs now, Competition, 309 00:16:17,240 --> 00:16:21,040 Speaker 2: as we know is increasingly global and Australia's businesses must 310 00:16:21,160 --> 00:16:25,320 Speaker 2: be able to survive and thrive. Australia has had unimpressive 311 00:16:25,360 --> 00:16:28,640 Speaker 2: productivity for decades. We do not have the conditions right. 312 00:16:29,160 --> 00:16:32,600 Speaker 2: Reform is worthy and everyone must be encouraged to play 313 00:16:32,640 --> 00:16:35,400 Speaker 2: their part. A four day work week might work in 314 00:16:35,440 --> 00:16:38,000 Speaker 2: some roles some of the time, but it should be 315 00:16:38,080 --> 00:16:42,680 Speaker 2: an employer and employee choice, not one for government to mandate. 316 00:16:43,080 --> 00:16:45,240 Speaker 2: And that is why this is my reform story of 317 00:16:45,280 --> 00:16:45,680 Speaker 2: the week. 318 00:16:46,040 --> 00:16:51,200 Speaker 1: Michael, Yes, Adam, but but the four day working week 319 00:16:51,480 --> 00:16:54,440 Speaker 1: is never going to happen. Well, it's not in the 320 00:16:54,520 --> 00:16:55,080 Speaker 1: near future. 321 00:16:56,080 --> 00:16:58,720 Speaker 2: We might have said that, And are they known for 322 00:16:58,840 --> 00:17:00,640 Speaker 2: changing their mind from time time to time. 323 00:17:00,800 --> 00:17:04,280 Speaker 1: Never politically. Let's look instead at a reform proposal that 324 00:17:04,440 --> 00:17:08,719 Speaker 1: might actually get off the ground next week. Ask is 325 00:17:08,760 --> 00:17:11,800 Speaker 1: suggesting a change the way your eyebrows shot up as 326 00:17:11,800 --> 00:17:13,320 Speaker 1: soon as I said, assic. 327 00:17:13,200 --> 00:17:15,320 Speaker 3: Diana, I get nervous every time any. 328 00:17:16,920 --> 00:17:19,480 Speaker 1: What have I done? They are suggesting a change to 329 00:17:19,560 --> 00:17:22,200 Speaker 1: the way that it looks at super funds that invest 330 00:17:22,359 --> 00:17:25,160 Speaker 1: in housing. Right, And this is really interesting stuff because 331 00:17:25,200 --> 00:17:27,040 Speaker 1: normally the rule is that when a super fund buys 332 00:17:27,600 --> 00:17:31,119 Speaker 1: a property investment, it has to disclose the stamp duty 333 00:17:31,240 --> 00:17:33,840 Speaker 1: paid as a fee to members, which means that investments 334 00:17:33,840 --> 00:17:37,960 Speaker 1: in things like bid to rent housing look worse than 335 00:17:38,000 --> 00:17:41,440 Speaker 1: if they invested in a listed real estate company or 336 00:17:41,480 --> 00:17:47,239 Speaker 1: bought property overseas. Now, right, if this change, so I'm 337 00:17:47,280 --> 00:17:49,960 Speaker 1: getting I'm getting very pointive now, And I know that 338 00:17:50,080 --> 00:17:51,800 Speaker 1: I was always told it's rude to point, but I'm 339 00:17:51,800 --> 00:17:55,200 Speaker 1: also very passionate about this. Yes, it is reform and change, 340 00:17:55,240 --> 00:17:58,840 Speaker 1: and that is a good thing if this change were 341 00:17:58,880 --> 00:18:03,680 Speaker 1: to be implemented, and Treasurer Jim Chalmers has already declared 342 00:18:03,960 --> 00:18:06,840 Speaker 1: that this is a good example of what could come 343 00:18:06,840 --> 00:18:08,760 Speaker 1: from the roundtable. And if that's not a good sign. 344 00:18:08,800 --> 00:18:12,000 Speaker 1: I don't know what is. It might unlock more than 345 00:18:12,160 --> 00:18:15,480 Speaker 1: eight billion dollars in new housing development paid for by 346 00:18:15,480 --> 00:18:20,080 Speaker 1: superfunds and fast track the development of thirty five thousand 347 00:18:21,480 --> 00:18:26,600 Speaker 1: new homes because we desperately, desperately need more supply in 348 00:18:26,680 --> 00:18:30,520 Speaker 1: the market. May I offer two pieces of supporting evidence 349 00:18:30,840 --> 00:18:33,480 Speaker 1: to you both, because I feel like I haven't talked enough. 350 00:18:34,800 --> 00:18:38,760 Speaker 1: Data from Domain this week that showed ninety seven percent 351 00:18:38,920 --> 00:18:42,000 Speaker 1: of house resales in the second quarter of this year 352 00:18:42,119 --> 00:18:45,600 Speaker 1: made a profit with the median profit in Sydney right 353 00:18:45,760 --> 00:18:49,399 Speaker 1: more than seven hundred thousand dollars. If that's not proof 354 00:18:49,480 --> 00:18:52,720 Speaker 1: of an unaffordable market, particularly for first home buyers, then 355 00:18:53,280 --> 00:18:55,400 Speaker 1: I don't know what is. And then the other piece 356 00:18:55,440 --> 00:18:57,760 Speaker 1: of evidence, if I may humbly submit this to you both, 357 00:18:58,440 --> 00:19:02,439 Speaker 1: is after a brief rept rental price growth has started 358 00:19:02,440 --> 00:19:05,320 Speaker 1: to pick up again. According to data from Cautality. We 359 00:19:05,359 --> 00:19:07,120 Speaker 1: saw that this week, which is bad news for those 360 00:19:07,119 --> 00:19:10,520 Speaker 1: struggling with the rental crisis, not good either for inflation. 361 00:19:11,119 --> 00:19:15,000 Speaker 1: That is why pointing I'm sorry, I'm gonna put my hands, 362 00:19:15,440 --> 00:19:18,920 Speaker 1: not in my pockets, behind my back. That is why 363 00:19:19,920 --> 00:19:24,560 Speaker 1: suggestions like assex proposal unlocking what can only be described 364 00:19:24,600 --> 00:19:29,439 Speaker 1: as the awesome power of Australia's superannuation funds and providing 365 00:19:29,480 --> 00:19:33,920 Speaker 1: that to the housing sector might just be what we need. Adam, 366 00:19:33,960 --> 00:19:36,200 Speaker 1: I cannot believe I'm saying this, but bring on reform. 367 00:19:36,280 --> 00:19:40,640 Speaker 2: Amant to that, I've got a suggestion for Jim Chalmers 368 00:19:40,760 --> 00:19:41,720 Speaker 2: to consider as well. 369 00:19:41,880 --> 00:19:44,840 Speaker 1: Oh God, because of it feels like you're giving a 370 00:19:44,880 --> 00:19:46,440 Speaker 1: lot of unsolicited advice. 371 00:19:46,680 --> 00:19:50,359 Speaker 2: Well, look, I understand stamp duty. I do, and I 372 00:19:50,400 --> 00:19:54,879 Speaker 2: understand that this problem is symptomatic of stamp duty. But 373 00:19:54,920 --> 00:19:58,720 Speaker 2: I've got a suggestion remove it. Remove stamp duty. 374 00:19:58,760 --> 00:20:01,760 Speaker 1: Well that was easy, wasn't it. Then this problem wouldn't 375 00:20:01,800 --> 00:20:04,240 Speaker 1: be there. Did you get an invite to the round table? 376 00:20:04,320 --> 00:20:08,159 Speaker 2: Because no, I didn't because it failed. Checking my mailbox regularly, 377 00:20:08,280 --> 00:20:08,880 Speaker 2: but no. 378 00:20:08,920 --> 00:20:11,600 Speaker 1: They've missed the chance to have one of Australia's great reformers. 379 00:20:11,600 --> 00:20:14,639 Speaker 1: I think my opinions take them as rend. Okay, all right, 380 00:20:14,880 --> 00:20:17,200 Speaker 1: you've said it enough times on this podcast. If they're listening, 381 00:20:17,200 --> 00:20:20,120 Speaker 1: they will know what you stand for. Diana. How big 382 00:20:20,240 --> 00:20:20,920 Speaker 1: was my victory? 383 00:20:22,320 --> 00:20:26,679 Speaker 3: Well you did win, yes, slightly. Just I mean I 384 00:20:26,720 --> 00:20:29,480 Speaker 3: think that that proposal could actually go ahead, which is 385 00:20:29,520 --> 00:20:30,840 Speaker 3: basically why I gave you the points. 386 00:20:31,880 --> 00:20:34,720 Speaker 1: That's smart. Yeah, I picked. I actually picked something that 387 00:20:34,720 --> 00:20:37,240 Speaker 1: could get off the ground. Though I admire the four 388 00:20:37,320 --> 00:20:38,320 Speaker 1: day working week, and it. 389 00:20:38,280 --> 00:20:39,199 Speaker 3: Was an interesting story. 390 00:20:39,800 --> 00:20:46,440 Speaker 1: Crazy policy agreed, crazy policy really yeah, So you okay. 391 00:20:47,320 --> 00:20:51,680 Speaker 3: Everything will have to change, school's operating hours, wage costs 392 00:20:51,720 --> 00:20:52,560 Speaker 3: will probably go up. 393 00:20:52,600 --> 00:20:54,600 Speaker 1: We just all love working, don't we. We just want 394 00:20:54,600 --> 00:20:56,800 Speaker 1: to be at work as long as we possibly can. 395 00:20:57,359 --> 00:21:00,520 Speaker 1: You know, we should implement the six day work bring 396 00:21:00,560 --> 00:21:02,720 Speaker 1: it back one hundred years ago. Here we go, this 397 00:21:02,840 --> 00:21:06,240 Speaker 1: is the way forward. Start our own little reform round table. 398 00:21:07,440 --> 00:21:12,240 Speaker 1: Favorite story. So I might go, yes, okay, two to 399 00:21:12,240 --> 00:21:17,160 Speaker 1: one is the score? Points points points, yes, points okay, 400 00:21:17,160 --> 00:21:19,200 Speaker 1: but two one still, that's the main thing. I wanted 401 00:21:19,200 --> 00:21:21,400 Speaker 1: to do a results story because we had so many 402 00:21:21,640 --> 00:21:24,840 Speaker 1: companies reporting the results this week and it was a 403 00:21:24,880 --> 00:21:28,399 Speaker 1: bit spoiled for choice. There were so many interesting ones. 404 00:21:28,480 --> 00:21:33,600 Speaker 1: But as the man of the people, I have opted 405 00:21:33,840 --> 00:21:36,240 Speaker 1: for the people's company, Telstra. 406 00:21:36,640 --> 00:21:39,560 Speaker 2: I have just watched your chest fill with pride as you. 407 00:21:39,520 --> 00:21:43,320 Speaker 1: Say that, speaking on behalf of my people, Adam tell us, 408 00:21:43,400 --> 00:21:47,200 Speaker 1: Michael Helstra, well over a million shareholders, many of them 409 00:21:47,440 --> 00:21:51,200 Speaker 1: your every day mum and dad, investors, retirees. What happens 410 00:21:51,240 --> 00:21:56,000 Speaker 1: to Telstra matters to a lot of people. And so 411 00:21:56,119 --> 00:21:58,679 Speaker 1: this result this week and your net profit of two 412 00:21:58,720 --> 00:22:02,000 Speaker 1: point three billion dollars up a whopping thirty one percent 413 00:22:02,160 --> 00:22:06,680 Speaker 1: on last year, and an increased dividend, great news. CEO 414 00:22:06,760 --> 00:22:09,800 Speaker 1: Vicky Brady has cut a lot of costs out of 415 00:22:09,800 --> 00:22:13,120 Speaker 1: that business down six percent, lot of jobs cut. It's 416 00:22:13,160 --> 00:22:16,000 Speaker 1: also lifting the price of phone plans up to five 417 00:22:16,040 --> 00:22:20,399 Speaker 1: dollars extra per month. The scale of this business is 418 00:22:20,400 --> 00:22:23,520 Speaker 1: something like twenty five million devices hooked up to its 419 00:22:23,560 --> 00:22:26,399 Speaker 1: network in Australia. It is huge. It is huge, and 420 00:22:26,400 --> 00:22:29,199 Speaker 1: its share price is up something like twenty three percent 421 00:22:29,480 --> 00:22:32,800 Speaker 1: over the last year. The other thing, though, this is 422 00:22:32,840 --> 00:22:36,440 Speaker 1: what I'm pointing again, I'm pointing. I just I didn't 423 00:22:36,480 --> 00:22:37,800 Speaker 1: realize I was so passionate. 424 00:22:37,880 --> 00:22:39,199 Speaker 2: It is emphasis. 425 00:22:39,840 --> 00:22:42,480 Speaker 1: The other thing that I thought was interesting was Vicky 426 00:22:42,480 --> 00:22:47,879 Speaker 1: Brady's comments around AI. Telstra has gone big on AI 427 00:22:48,080 --> 00:22:52,000 Speaker 1: and trying to improve efficiency within the workplace. The telco 428 00:22:52,080 --> 00:22:56,520 Speaker 1: staff are actually under orders to use AI every single 429 00:22:56,720 --> 00:22:59,960 Speaker 1: day to improve the efficiency of the way they work. 430 00:23:00,160 --> 00:23:05,280 Speaker 1: Telstra has actually become Microsoft's biggest Australian customer of its 431 00:23:05,280 --> 00:23:08,240 Speaker 1: co pilot AI assistant, which I thought was really interesting. 432 00:23:08,520 --> 00:23:12,640 Speaker 1: It has bought twenty one thousand licenses for that piece 433 00:23:12,680 --> 00:23:16,520 Speaker 1: of software. It's launched a data and AI academy to 434 00:23:16,680 --> 00:23:19,639 Speaker 1: train employees. This is a company that has not just 435 00:23:19,680 --> 00:23:22,040 Speaker 1: gone Okay, yeah, yeah, we'll use AI where we can. 436 00:23:22,359 --> 00:23:26,000 Speaker 1: It has fully embraced it and gone all in on it. 437 00:23:26,040 --> 00:23:27,960 Speaker 1: I think that is really interesting. It's a heck of 438 00:23:28,000 --> 00:23:30,280 Speaker 1: a story, from the results to the AI. It is 439 00:23:30,320 --> 00:23:33,439 Speaker 1: my favorite story of the week and relatively brief for me. 440 00:23:34,520 --> 00:23:38,119 Speaker 1: That was only what like twenty seconds. So there we go, Adam, 441 00:23:38,119 --> 00:23:38,800 Speaker 1: what did you like? 442 00:23:39,080 --> 00:23:44,040 Speaker 2: Okay, I'm fascinated with business models, Michael, that cope with 443 00:23:44,480 --> 00:23:45,720 Speaker 2: competitive turbulence. 444 00:23:46,000 --> 00:23:46,680 Speaker 1: Shall I say? 445 00:23:47,320 --> 00:23:51,000 Speaker 2: This aviation story is about passengers paying their way towards 446 00:23:51,040 --> 00:23:54,280 Speaker 2: the front of the plane and helping the business model work. 447 00:23:54,480 --> 00:23:58,440 Speaker 1: Are you really using an aviation story against me, making 448 00:23:58,520 --> 00:24:03,200 Speaker 1: it from me? This is a scandal, please, Michael. 449 00:24:03,640 --> 00:24:08,160 Speaker 2: Airlines are rewriting the profit playbook. Premium cabins are flying 450 00:24:08,200 --> 00:24:11,200 Speaker 2: earnings to new heights, and there are more and more 451 00:24:11,440 --> 00:24:14,440 Speaker 2: options in the sky. With some extra cash, your holiday 452 00:24:14,440 --> 00:24:17,320 Speaker 2: can start on the plane with a seat beyond the 453 00:24:17,359 --> 00:24:18,200 Speaker 2: smallest seats. 454 00:24:18,280 --> 00:24:20,320 Speaker 1: You like these, sound like the prize and outside the 455 00:24:20,400 --> 00:24:22,560 Speaker 1: price is right. 456 00:24:23,880 --> 00:24:26,920 Speaker 2: Globally, premium cabins can make up only about five percent 457 00:24:26,960 --> 00:24:30,400 Speaker 2: of passengers, yet deliver twenty percent of domestic revenue and 458 00:24:30,480 --> 00:24:34,760 Speaker 2: thirty percent of international revenue. Airlines are doubling down United, 459 00:24:34,840 --> 00:24:37,960 Speaker 2: Delta Air, New Zealand and Quantas are adding thousands of 460 00:24:38,000 --> 00:24:42,199 Speaker 2: premium seats and even retrofitting bars for luxury suites. The 461 00:24:42,200 --> 00:24:45,600 Speaker 2: International Air Transport Association have you heard of that one, 462 00:24:45,600 --> 00:24:47,400 Speaker 2: Michael Iata. 463 00:24:46,880 --> 00:24:49,399 Speaker 1: Yes, I have good quite the enthusiasts. 464 00:24:50,080 --> 00:24:53,160 Speaker 2: They forecast profits to climb to US thirty six billion 465 00:24:53,280 --> 00:24:56,240 Speaker 2: in twenty twenty five, thanks in large part to growth 466 00:24:56,280 --> 00:24:59,400 Speaker 2: in premium yield. In the US, Delta saw a five 467 00:24:59,400 --> 00:25:03,680 Speaker 2: percent jump in premium revenue even while economic impacts were 468 00:25:03,680 --> 00:25:07,640 Speaker 2: causing ticket revenue to slip. Investors are taking no premium 469 00:25:07,680 --> 00:25:12,000 Speaker 2: travel is supporting margins when mainstream demand softens. It's not 470 00:25:12,200 --> 00:25:16,000 Speaker 2: about exclusive luxury. It's about a dash of extra space 471 00:25:16,040 --> 00:25:18,680 Speaker 2: for those who can afford it. In the face of inflation, 472 00:25:18,880 --> 00:25:22,680 Speaker 2: increasing costs of living, and travel uncertainty. Airlines are betting 473 00:25:22,680 --> 00:25:25,320 Speaker 2: people will pay more for comfort, and so far the 474 00:25:25,480 --> 00:25:28,840 Speaker 2: data says they're right and that's why it's my favorite 475 00:25:28,880 --> 00:25:29,800 Speaker 2: story of the week. 476 00:25:30,240 --> 00:25:32,840 Speaker 1: That's a good story. That's a great story. I love 477 00:25:32,880 --> 00:25:34,959 Speaker 1: the amount of like you squeeze so many kind of 478 00:25:35,000 --> 00:25:38,160 Speaker 1: aviation puns and references into the first part. 479 00:25:38,280 --> 00:25:40,400 Speaker 3: It was quite and that's why he won that category. 480 00:25:41,359 --> 00:25:44,600 Speaker 3: No way, sorry if I puns? 481 00:25:44,640 --> 00:25:45,600 Speaker 1: Did it? Oh? 482 00:25:46,440 --> 00:25:48,080 Speaker 3: You sounded like you were selling a holiday package. I 483 00:25:48,119 --> 00:25:49,640 Speaker 3: felt like I wanted to get in a plane and go. 484 00:25:49,760 --> 00:25:50,320 Speaker 2: I'm learning. 485 00:25:50,440 --> 00:25:55,600 Speaker 1: But one of your criteria, Diana, is the story rare 486 00:25:55,680 --> 00:25:57,080 Speaker 1: planes take off every day. 487 00:25:57,600 --> 00:25:59,000 Speaker 3: I hadn't actually heard that story. 488 00:25:59,040 --> 00:26:02,560 Speaker 1: So outrageous, okay to all? 489 00:26:02,600 --> 00:26:04,600 Speaker 3: But also, why do you love Teltra so much? 490 00:26:05,280 --> 00:26:07,720 Speaker 1: For the reasons that I just went through? Because it 491 00:26:07,800 --> 00:26:10,439 Speaker 1: is the people's company. People. You look out the window 492 00:26:10,560 --> 00:26:12,879 Speaker 1: and one in twenty people walking along the street. That 493 00:26:12,960 --> 00:26:16,760 Speaker 1: person there Telstra shareholder. They care about that story. So 494 00:26:16,840 --> 00:26:18,840 Speaker 1: does that one over there? So does that one there. 495 00:26:18,880 --> 00:26:22,959 Speaker 1: I'm looking at them all right now, my people, he protests, 496 00:26:23,040 --> 00:26:26,639 Speaker 1: I'm almost tear wounded at the disgrace. 497 00:26:27,040 --> 00:26:30,800 Speaker 3: Anyway to all, to all, that means very close to point, 498 00:26:30,960 --> 00:26:34,920 Speaker 3: very close point scory. I don't have to go through 499 00:26:34,960 --> 00:26:41,040 Speaker 3: every category, but Michael sixty seven points Adam seventy one points, 500 00:26:41,440 --> 00:26:42,720 Speaker 3: slight winner. 501 00:26:43,560 --> 00:26:49,080 Speaker 2: At last, a precious victory like sgel precious. 502 00:26:49,320 --> 00:26:52,399 Speaker 1: Oh can I ask was there a particular category that 503 00:26:52,400 --> 00:26:55,720 Speaker 1: that either won it for Adam or lost it for me? 504 00:26:56,200 --> 00:26:57,800 Speaker 2: Just all around the second one. 505 00:26:57,840 --> 00:27:01,600 Speaker 3: I mean it was all actually pretty close. The second one, 506 00:27:01,680 --> 00:27:03,920 Speaker 3: which was the remarkable news story. 507 00:27:04,280 --> 00:27:07,360 Speaker 1: Yeah, okay, I love how seriously you take the judging 508 00:27:07,480 --> 00:27:09,680 Speaker 1: that you have got pages of notes here in front 509 00:27:09,720 --> 00:27:12,480 Speaker 1: of you. This is pro this is great. I mean, 510 00:27:12,640 --> 00:27:16,399 Speaker 1: obviously not a great judgment. The pages of notes didn't 511 00:27:16,440 --> 00:27:17,160 Speaker 1: help you, but. 512 00:27:17,560 --> 00:27:20,240 Speaker 2: It was a I would take demeritof even after you even. 513 00:27:20,119 --> 00:27:23,119 Speaker 1: That you can't do that, you can. Diana, thank you 514 00:27:23,160 --> 00:27:24,960 Speaker 1: so much for coming in. Thank you for having me, 515 00:27:25,119 --> 00:27:26,040 Speaker 1: and Adam. 516 00:27:25,760 --> 00:27:27,639 Speaker 2: Thank you, Thank you, Michael, and thank you Diana. 517 00:27:27,800 --> 00:27:31,399 Speaker 1: That was Diana Messina, Deputy Chief Economists at AMP. And 518 00:27:31,480 --> 00:27:34,240 Speaker 1: remember hit follow on the podcast, and if you haven't already, 519 00:27:34,240 --> 00:27:37,360 Speaker 1: head along to Fearangreed dot com dot au and sign 520 00:27:37,440 --> 00:27:40,040 Speaker 1: up for our free daily newsletter where you get all 521 00:27:40,080 --> 00:27:41,960 Speaker 1: of the news you need to know by six am 522 00:27:42,040 --> 00:27:44,880 Speaker 1: directly tier inbox and the best budd is It's entirely free. 523 00:27:45,119 --> 00:27:47,399 Speaker 1: I'm Michael Thompson. That was fear and greed. Enjoy your 524 00:27:47,400 --> 00:27:47,800 Speaker 1: weekend