1 00:00:03,780 --> 00:00:07,650 Michael Thompson: It's Monday, the 27th of September 2021. Welcome to Fear 2 00:00:07,650 --> 00:00:09,960 Michael Thompson: and Greed, the business podcast that sets you up for 3 00:00:09,960 --> 00:00:13,420 Michael Thompson: a successful day. I'm Michael Thompson and good morning, Sean Aylmer. 4 00:00:13,630 --> 00:00:14,510 Sean Aylmer: Good morning, Michael. 5 00:00:14,800 --> 00:00:18,500 Michael Thompson: Australia's resources sector tumbles as the global growth story and doubts 6 00:00:18,500 --> 00:00:23,270 Michael Thompson: over China hit shareholders hard. That's our main story. Also, today, 7 00:00:23,550 --> 00:00:26,840 Michael Thompson: Victoria and New South Wales talk about easing restrictions, the 8 00:00:26,840 --> 00:00:31,660 Michael Thompson: housing market has a cracking weekend and why Europeans love 9 00:00:31,750 --> 00:00:35,629 Michael Thompson: Australia's vast space. Then stay listening for Sean's chat to 10 00:00:35,630 --> 00:00:40,140 Michael Thompson: Jason Cooper, the CEO of Envirosuite, about incredible innovations in 11 00:00:40,140 --> 00:00:43,769 Michael Thompson: noise and water pollution technology. It's an ASX listed company, 12 00:00:43,770 --> 00:00:46,409 Michael Thompson: picked out as one to watch. But first, Sean, we 13 00:00:46,409 --> 00:00:50,010 Michael Thompson: talk about the resources sector being fundamental to our economy. 14 00:00:50,290 --> 00:00:52,769 Michael Thompson: And in many ways, it's really helped us to manage 15 00:00:52,770 --> 00:00:56,500 Michael Thompson: the COVID crisis, at least economically, but it seems the 16 00:00:56,500 --> 00:00:59,850 Michael Thompson: market has gone south over the past few weeks. 17 00:01:00,030 --> 00:01:04,330 Sean Aylmer: Sure has Michael. Fears about China slowing, a global shortage 18 00:01:04,330 --> 00:01:08,529 Sean Aylmer: in semi- conductor chips, restrictions on steel production and a 19 00:01:08,530 --> 00:01:13,440 Sean Aylmer: sudden dislike for gold companies has hit shareholders hard, because 20 00:01:13,440 --> 00:01:17,350 Sean Aylmer: a bunch of stock prices of mining companies have fallen. 21 00:01:17,709 --> 00:01:20,500 Sean Aylmer: Australian investors, even if it's through their super funds, tend 22 00:01:20,500 --> 00:01:23,020 Sean Aylmer: to invest in financial service firms, like the big banks 23 00:01:23,310 --> 00:01:25,910 Sean Aylmer: and mining and exploration stocks. But it's just been a 24 00:01:25,910 --> 00:01:28,620 Sean Aylmer: really bad investment over the past couple of months. The 25 00:01:28,620 --> 00:01:31,340 Sean Aylmer: iron ore miners, we've spoken about this a bit, they've 26 00:01:31,340 --> 00:01:34,899 Sean Aylmer: tumbled alongside the price of iron ore. The commodity is now 27 00:01:34,900 --> 00:01:37,420 Sean Aylmer: trading at half the level of four months ago, and 28 00:01:37,420 --> 00:01:39,530 Sean Aylmer: the big miners have gone for a fall as well. 29 00:01:39,840 --> 00:01:44,270 Sean Aylmer: Fortescue Metals is at a 52 week low, having lost about 40% 30 00:01:44,270 --> 00:01:48,280 Sean Aylmer: of its value since mid- July. BHP, which does much 31 00:01:48,280 --> 00:01:51,380 Sean Aylmer: more than mine iron ore is down 20% in the 32 00:01:51,380 --> 00:01:54,500 Sean Aylmer: past seven weeks. In the same period, Rio Tinto is 33 00:01:54,500 --> 00:01:55,530 Sean Aylmer: off 24%. 34 00:01:56,010 --> 00:01:59,190 Michael Thompson: You mentioned gold companies. What's happening with gold stocks? 35 00:01:59,500 --> 00:02:02,210 Sean Aylmer: It's actually a really good question. Share prices of gold 36 00:02:02,210 --> 00:02:05,680 Sean Aylmer: stocks have fallen much more than the price of the 37 00:02:05,680 --> 00:02:10,299 Sean Aylmer: precious metal itself. Uncertainty should help gold stocks, but it hasn't. 38 00:02:10,760 --> 00:02:12,900 Sean Aylmer: Many of the gold stocks are trading at their lowest 39 00:02:12,900 --> 00:02:15,070 Sean Aylmer: level since the start of the pandemic. And if you 40 00:02:15,070 --> 00:02:18,150 Sean Aylmer: exclude the plunge that happened around March last year, they're 41 00:02:18,150 --> 00:02:21,320 Sean Aylmer: actually at their lowest level since about 2018. Market leader 42 00:02:21,430 --> 00:02:25,620 Sean Aylmer: Newcrest Mining is down 35% in just five weeks. Northern 43 00:02:25,620 --> 00:02:29,080 Sean Aylmer: Star is off 20% in the last 10 weeks. The price of 44 00:02:29,080 --> 00:02:31,240 Sean Aylmer: gold has come off, but just not by that much. 45 00:02:31,540 --> 00:02:35,300 Sean Aylmer: In fact, Northern Star, Regis Resources and Evolution Mining are 46 00:02:35,300 --> 00:02:38,829 Sean Aylmer: three of the five worst performing stocks on the ASX over 47 00:02:39,080 --> 00:02:41,750 Sean Aylmer: the past year. Add to that the energy companies and 48 00:02:41,750 --> 00:02:43,770 Sean Aylmer: they can't find a friend at the moment. And even 49 00:02:43,770 --> 00:02:46,530 Sean Aylmer: the battery metals companies, which over the last 12 months, 50 00:02:46,710 --> 00:02:49,460 Sean Aylmer: we've been talking about how well they've done. In the last 51 00:02:49,460 --> 00:02:52,840 Sean Aylmer: two weeks, Pilbara Minerals is down 13%, Orocobre is off 8%. 52 00:02:53,530 --> 00:02:56,750 Sean Aylmer: Lynas Rare Earths is 11% lower. They do jump around 53 00:02:56,750 --> 00:03:00,100 Sean Aylmer: those guys, but still the sell off is quite amazing. 54 00:03:00,540 --> 00:03:02,930 Michael Thompson: So the big question then is what do you expect? 55 00:03:02,930 --> 00:03:03,580 Michael Thompson: What's going to happen? 56 00:03:04,020 --> 00:03:06,630 Sean Aylmer: Another good question. Do you buy on the dips? Will 57 00:03:06,630 --> 00:03:09,880 Sean Aylmer: the economic recovery gather speed and help the mining stocks? 58 00:03:10,210 --> 00:03:12,860 Sean Aylmer: Has a recent boom in the sector come to an end? 59 00:03:12,860 --> 00:03:15,580 Sean Aylmer: I don't know. It's going to be a very interesting 60 00:03:15,580 --> 00:03:16,540 Sean Aylmer: few months. 61 00:03:16,660 --> 00:03:18,540 Michael Thompson: Yeah, we might try and find an expert who's able 62 00:03:18,540 --> 00:03:20,360 Michael Thompson: to help us out with a few of those questions later 63 00:03:20,360 --> 00:03:23,820 Michael Thompson: this week. So how then did equity markets perform over 64 00:03:23,820 --> 00:03:24,380 Michael Thompson: the weekend? 65 00:03:24,630 --> 00:03:32,269 Sean Aylmer: Well, the S&P/ASX 200 finished down 0.4% on Friday to 7,342 points. 66 00:03:32,610 --> 00:03:34,119 Sean Aylmer: For the full week, it was down just a bit 67 00:03:34,120 --> 00:03:37,560 Sean Aylmer: under 1%, which wasn't a bad effort given how far 68 00:03:37,560 --> 00:03:40,860 Sean Aylmer: it fell a week ago last Monday. A notable drop 69 00:03:40,860 --> 00:03:44,820 Sean Aylmer: on Friday was hearing implant maker, Cochlear. Its share price 70 00:03:44,900 --> 00:03:49,020 Sean Aylmer: fell almost 5% after it said a complaint for patent 71 00:03:49,020 --> 00:03:52,470 Sean Aylmer: infringement had been filed by the University of Pittsburgh in 72 00:03:52,470 --> 00:03:56,440 Sean Aylmer: the US. Cochlear said it will defend the allegations. Wall 73 00:03:56,440 --> 00:03:59,590 Sean Aylmer: Street was up slightly over the weekend, while European markets 74 00:03:59,590 --> 00:04:00,450 Sean Aylmer: were a touch lower. 75 00:04:00,730 --> 00:04:02,370 Michael Thompson: We'll be back in a moment with the rest of 76 00:04:02,370 --> 00:04:03,700 Michael Thompson: the day's business news. 77 00:04:08,630 --> 00:04:11,910 Michael Thompson: Sean, another glimmer of hope, Prime Minister, Scott Morrison has 78 00:04:11,910 --> 00:04:14,980 Michael Thompson: said he'd like to give people their lives back by Christmas. 79 00:04:15,060 --> 00:04:17,640 Sean Aylmer: Is that a gift that Scott Morrison can give us, Michael? 80 00:04:17,830 --> 00:04:19,779 Michael Thompson: I don't think it is, but he's going to try. 81 00:04:20,560 --> 00:04:23,339 Sean Aylmer: He said that, but then he put the responsibility fairly 82 00:04:23,450 --> 00:04:26,560 Sean Aylmer: on the state premiers. The prime minister said we needed 83 00:04:26,560 --> 00:04:29,140 Sean Aylmer: to get back into top gear while living with the 84 00:04:29,140 --> 00:04:32,380 Sean Aylmer: virus. He hopes lockdowns will be ended by Christmas when 85 00:04:32,380 --> 00:04:36,020 Sean Aylmer: the country has passed an 80% vaccination rate, but he 86 00:04:36,020 --> 00:04:37,960 Sean Aylmer: very much said that's up to the states. 87 00:04:38,420 --> 00:04:40,250 Michael Thompson: So, how are we tracking in that regard? Are we 88 00:04:40,250 --> 00:04:40,740 Michael Thompson: getting there? 89 00:04:41,270 --> 00:04:44,020 Sean Aylmer: We are getting there. There are still plenty of cases. 90 00:04:44,020 --> 00:04:47,409 Sean Aylmer: New South Wales daily case rates remain steady around the 91 00:04:47,410 --> 00:04:51,470 Sean Aylmer: 1000 mark. Yesterday, Premier Gladys Berejiklian said even though the 92 00:04:51,470 --> 00:04:54,960 Sean Aylmer: state was close to a 60% full vaccination rate and 93 00:04:54,960 --> 00:04:58,180 Sean Aylmer: should hit 70% within a fortnight, she was worried about 94 00:04:58,180 --> 00:05:01,410 Sean Aylmer: the lag in vaccination rates in some rural areas that 95 00:05:01,410 --> 00:05:04,600 Sean Aylmer: might prevent people from Sydney, for example, travelling to other 96 00:05:04,600 --> 00:05:08,520 Sean Aylmer: parts of the state. Infection rates around the Central Coast 97 00:05:08,520 --> 00:05:11,300 Sean Aylmer: and Illawarra regions of New South Wales, that's north and 98 00:05:11,300 --> 00:05:14,890 Sean Aylmer: south of Sydney, are accelerating. And they're also areas which 99 00:05:14,890 --> 00:05:18,360 Sean Aylmer: are very popular summer holiday destinations. New South Wales will 100 00:05:18,360 --> 00:05:21,120 Sean Aylmer: outline what happens once the 80% vax rate is hit 101 00:05:21,120 --> 00:05:26,170 Sean Aylmer: later this week, Ms. Berejiklian said. And also what unvaccinated people 102 00:05:26,170 --> 00:05:28,810 Sean Aylmer: will be allowed to do and not allowed to do. 103 00:05:29,380 --> 00:05:33,190 Sean Aylmer: In Victoria, the case numbers fell to 779 yesterday, that 104 00:05:33,190 --> 00:05:37,370 Sean Aylmer: was down from 847 on Saturday. But unfortunately the trend 105 00:05:37,370 --> 00:05:41,220 Sean Aylmer: is still up. That state expects to hit 80% first 106 00:05:41,220 --> 00:05:44,770 Sean Aylmer: dose tomorrow, and Daniel Andrews, the Premier, said there should 107 00:05:44,770 --> 00:05:48,360 Sean Aylmer: be a modest easing of restrictions from Wednesday. The Australian 108 00:05:48,360 --> 00:05:51,610 Sean Aylmer: Capital Territory had a total of 57 cases over the weekend. 109 00:05:51,820 --> 00:05:54,220 Sean Aylmer: Most of those were in the community while infectious. That's 110 00:05:54,220 --> 00:05:56,810 Sean Aylmer: not such good news. But more than 85% of the 111 00:05:56,810 --> 00:05:58,940 Sean Aylmer: population have now received one jab. 112 00:06:00,110 --> 00:06:02,770 Michael Thompson: Now, Sean, last week we were talking a fair bit 113 00:06:02,770 --> 00:06:05,490 Michael Thompson: about property and there were warnings from the Reserve Bank, 114 00:06:05,839 --> 00:06:08,320 Michael Thompson: from the Commonwealth Bank and from ANZ, and even from the 115 00:06:08,320 --> 00:06:13,230 Michael Thompson: International Monetary Fund about the soaring housing market. We're now 116 00:06:13,230 --> 00:06:16,500 Michael Thompson: well into the Spring selling season, what were the auction 117 00:06:16,500 --> 00:06:17,820 Michael Thompson: results like over the weekend? 118 00:06:18,180 --> 00:06:20,529 Sean Aylmer: No one was listening to the banks, clearly. It was 119 00:06:20,529 --> 00:06:24,360 Sean Aylmer: a great weekend. Sydney's property market posted its best clearance 120 00:06:24,360 --> 00:06:29,800 Sean Aylmer: rate since April, that's 84.3%. These rates are preliminary, so 121 00:06:29,800 --> 00:06:32,240 Sean Aylmer: they will come back a bit, but still the outcome 122 00:06:32,240 --> 00:06:35,110 Sean Aylmer: is really, really strong. The national rate was a very 123 00:06:35,110 --> 00:06:39,350 Sean Aylmer: impressive 82.4%, with a big jump in Melbourne, which had 124 00:06:39,350 --> 00:06:42,529 Sean Aylmer: fallen way back. Now, the ban on home inspections has 125 00:06:42,529 --> 00:06:46,680 Sean Aylmer: been lifted in that state and over the weekend, 77.2% 126 00:06:46,890 --> 00:06:49,870 Sean Aylmer: of houses that went to auction were sold. That's the 127 00:06:49,870 --> 00:06:53,029 Sean Aylmer: best since May. And those figures are according to CoreLogic. Now, 128 00:06:53,029 --> 00:06:55,410 Sean Aylmer: of course, this all comes on, as you mentioned, what 129 00:06:55,410 --> 00:06:58,860 Sean Aylmer: the Commonwealth Bank, the ANZ and Reserve Bank said last 130 00:06:58,860 --> 00:07:03,410 Sean Aylmer: week about fearing Australia's becoming too indebted. And over the weekend, 131 00:07:03,450 --> 00:07:06,910 Sean Aylmer: the International Monetary Fund, its job is to ensure financial stability 132 00:07:06,910 --> 00:07:09,510 Sean Aylmer: around the world, it said Australia needs to address the 133 00:07:09,510 --> 00:07:14,090 Sean Aylmer: rising risks posed by our house prices. It too is worried 134 00:07:14,090 --> 00:07:16,950 Sean Aylmer: that people are getting themselves into too much debt. All 135 00:07:16,950 --> 00:07:19,300 Sean Aylmer: in all, it was a really good weekend for sellers. 136 00:07:19,370 --> 00:07:21,550 Sean Aylmer: There's not as much stock on the market, so it 137 00:07:21,550 --> 00:07:23,670 Sean Aylmer: is a good time to be selling, and obviously that's 138 00:07:23,670 --> 00:07:26,930 Sean Aylmer: helped clearance rates. But maybe people are also just getting 139 00:07:26,930 --> 00:07:29,300 Sean Aylmer: in ahead of the tightening of any rules that might occur, 140 00:07:29,300 --> 00:07:29,930 Sean Aylmer: just maybe. 141 00:07:30,470 --> 00:07:33,290 Michael Thompson: Now, beyond House prices, the IMF had a bit more 142 00:07:33,290 --> 00:07:34,870 Michael Thompson: to say about Australia as well. 143 00:07:34,950 --> 00:07:37,300 Sean Aylmer: It did. It also warned that there'd be a reckoning 144 00:07:37,300 --> 00:07:41,200 Sean Aylmer: for zombie companies when government support is withdrawn from the 145 00:07:41,200 --> 00:07:44,120 Sean Aylmer: economy and that could mean a spike in corporate insolvencies. 146 00:07:44,520 --> 00:07:47,260 Sean Aylmer: Remember, we expected a big spike at the beginning of 147 00:07:47,260 --> 00:07:49,480 Sean Aylmer: this year. In fact, at the end of 2020, we 148 00:07:49,480 --> 00:07:52,570 Sean Aylmer: interviewed a couple of people about how they expected a 149 00:07:52,570 --> 00:07:55,490 Sean Aylmer: big jump in businesses, either going into liquidation, or going 150 00:07:55,490 --> 00:07:59,170 Sean Aylmer: bankrupt, but it just never happened. Government support is continuing 151 00:07:59,170 --> 00:08:01,970 Sean Aylmer: to hold up companies that would otherwise have gone bust. 152 00:08:02,030 --> 00:08:04,500 Sean Aylmer: And the IMF is worried that actually when that support 153 00:08:04,500 --> 00:08:08,910 Sean Aylmer: is taken, those companies will go bust. The IMF also called 154 00:08:08,910 --> 00:08:11,790 Sean Aylmer: for tax reform, saying Australia needed to reduce income and 155 00:08:11,790 --> 00:08:15,130 Sean Aylmer: corporate tax rates and lift the GST. We've heard that 156 00:08:15,130 --> 00:08:16,940 Sean Aylmer: record before, and it never seems to happen. 157 00:08:17,350 --> 00:08:20,100 Michael Thompson: Now staying with property, and I know this is a 158 00:08:20,170 --> 00:08:21,930 Michael Thompson: bit of a stretch, a bit of a tenuous link, 159 00:08:22,270 --> 00:08:25,840 Michael Thompson: but a big German group wants to buy up Australian 160 00:08:25,840 --> 00:08:27,850 Michael Thompson: renewable energy farms what's going on? 161 00:08:28,140 --> 00:08:31,270 Sean Aylmer: Well, farms are property, Michael. You're probably right. It's an 162 00:08:31,270 --> 00:08:35,300 Sean Aylmer: interesting case. A crowd called ACE Power, ACE Power, is a 163 00:08:35,300 --> 00:08:38,970 Sean Aylmer: German backed renewable energy developer. And it wants to spend 164 00:08:38,970 --> 00:08:42,050 Sean Aylmer: about $2.5 billion dollars in the next three or four years, 165 00:08:42,460 --> 00:08:46,290 Sean Aylmer: buying up wind, solar, and storage projects in Australia. It 166 00:08:46,290 --> 00:08:49,730 Sean Aylmer: believes as coal plants shut down, there's huge opportunity if 167 00:08:49,730 --> 00:08:52,990 Sean Aylmer: you own renewable energy in Australia. There's a few things 168 00:08:52,990 --> 00:08:56,350 Sean Aylmer: going on here. Last week, EnergyAustralia said it was bringing 169 00:08:56,350 --> 00:08:59,969 Sean Aylmer: forward the closure of the Mount Piper coal fired power 170 00:08:59,970 --> 00:09:03,450 Sean Aylmer: station in Lithgow, west of Sydney. The Yallourn Power Station 171 00:09:03,450 --> 00:09:06,530 Sean Aylmer: in Victoria's Latrobe Valley will also be closed earlier than 172 00:09:06,530 --> 00:09:09,800 Sean Aylmer: first thought. Investors don't want to put money into fossil 173 00:09:09,800 --> 00:09:11,949 Sean Aylmer: fuel companies at the moment. And you can see that, 174 00:09:12,260 --> 00:09:14,809 Sean Aylmer: because coal and oil prices are high, but the share 175 00:09:14,809 --> 00:09:16,809 Sean Aylmer: prices of the companies that get the stuff out of 176 00:09:16,809 --> 00:09:21,990 Sean Aylmer: the ground, aren't. So, fossil fuels are on the nose. 177 00:09:22,690 --> 00:09:26,120 Sean Aylmer: Then you have Australia as a nation, with plenty of land, 178 00:09:26,220 --> 00:09:30,110 Sean Aylmer: plenty of sunshine and plenty of wind. That means plenty 179 00:09:30,110 --> 00:09:33,040 Sean Aylmer: of opportunity to build renewable businesses. 180 00:09:33,570 --> 00:09:36,560 Michael Thompson: Yeah, but why a German company? What's the significance there? 181 00:09:36,890 --> 00:09:39,699 Sean Aylmer: Because they're really good at it. Europeans, by far, are 182 00:09:39,700 --> 00:09:42,420 Sean Aylmer: the best in the business when it comes to renewables. 183 00:09:43,120 --> 00:09:47,510 Sean Aylmer: North Americans, Asia, Australia, none of us are particularly far 184 00:09:47,510 --> 00:09:50,900 Sean Aylmer: advanced in developing these sorts of facilities, but the Europeans 185 00:09:50,900 --> 00:09:54,240 Sean Aylmer: have been doing it for decades. This German company, ACE, 186 00:09:54,240 --> 00:09:56,989 Sean Aylmer: has obviously looked at Australia, seen the opportunity, and I 187 00:09:56,990 --> 00:09:59,470 Sean Aylmer: reckon it'll be the first of quite a few European 188 00:09:59,470 --> 00:10:02,819 Sean Aylmer: companies that head down under and start looking for opportunities. 189 00:10:07,690 --> 00:10:10,510 Michael Thompson: Okay, Sean, what's making headlines today in the news media? 190 00:10:10,880 --> 00:10:13,819 Sean Aylmer: The Financial Review is reporting this morning that strikes in 191 00:10:13,820 --> 00:10:18,500 Sean Aylmer: Australia's ports are likely across the month of October, delaying 192 00:10:18,500 --> 00:10:21,070 Sean Aylmer: the delivery of goods, such as furniture and electronics and 193 00:10:21,070 --> 00:10:24,840 Sean Aylmer: toys ahead of Christmas. The Maritime Union of Australia has 194 00:10:24,840 --> 00:10:28,540 Sean Aylmer: already notified that hundreds of wharfies will strike for 48 195 00:10:28,540 --> 00:10:31,920 Sean Aylmer: hours in Sydney's Port Botany next weekend, and for 12 196 00:10:31,920 --> 00:10:35,530 Sean Aylmer: hours every Monday, Wednesday and Friday in Melbourne, for the 197 00:10:35,530 --> 00:10:38,830 Sean Aylmer: whole month of October. The Financial Review is also reporting 198 00:10:38,830 --> 00:10:43,099 Sean Aylmer: that Hungry Jack's, the burger chain, is going into chicken. Owner, 199 00:10:43,100 --> 00:10:46,120 Sean Aylmer: Jack Cowin wants to take share off KFC. He's worried 200 00:10:46,120 --> 00:10:49,220 Sean Aylmer: about the soaring cost of beef, and he also appreciates 201 00:10:49,370 --> 00:10:52,700 Sean Aylmer: that people are eating more chicken. And The Australian is 202 00:10:52,700 --> 00:10:56,500 Sean Aylmer: reporting that Australia's biggest hydrogen developers have called on the 203 00:10:56,500 --> 00:11:00,450 Sean Aylmer: Morrison Government to create a $19 billion net zero fund, 204 00:11:00,450 --> 00:11:04,010 Sean Aylmer: aimed at cutting emissions and speeding up the rollout of hydrogen- 205 00:11:04,010 --> 00:11:07,410 Sean Aylmer: based fuels to the steel and heavy transport industries. 206 00:11:07,820 --> 00:11:09,809 Michael Thompson: We're running through some of the other stories around today 207 00:11:09,809 --> 00:11:12,800 Michael Thompson: and over the weekend, Barnaby Joyce was doing the media 208 00:11:12,800 --> 00:11:15,809 Michael Thompson: around yesterday and said he was in discussion with the 209 00:11:15,809 --> 00:11:18,350 Michael Thompson: PM on a plan to get Australia to net zero 210 00:11:18,350 --> 00:11:21,740 Michael Thompson: emissions by 2050, words I suspect not many of us 211 00:11:21,740 --> 00:11:23,390 Michael Thompson: ever expected Barnaby Joyce to say. 212 00:11:23,700 --> 00:11:23,780 Sean Aylmer: No. 213 00:11:24,720 --> 00:11:27,130 Michael Thompson: He said the National Party was looking through the lens 214 00:11:27,130 --> 00:11:29,610 Michael Thompson: of making sure there weren't any job losses in regional 215 00:11:29,610 --> 00:11:30,829 Michael Thompson: Australia, which makes sense. 216 00:11:31,130 --> 00:11:32,839 Sean Aylmer: It does make sense, but I'm not sure how you 217 00:11:32,840 --> 00:11:35,479 Sean Aylmer: go from one industry to another industry and not have 218 00:11:35,480 --> 00:11:39,459 Sean Aylmer: job losses. So, good luck on that. Westpac Chief Economist, 219 00:11:39,650 --> 00:11:41,700 Sean Aylmer: Bill Evans, he still thinks the Reserve Bank will lift 220 00:11:41,700 --> 00:11:44,900 Sean Aylmer: interest rates in March, 2023. Now, that's ahead of the 221 00:11:44,900 --> 00:11:48,689 Sean Aylmer: Central Bank's own time table of 2024. But Mr. Evans 222 00:11:48,690 --> 00:11:51,140 Sean Aylmer: is confident the economy will do better than the Central 223 00:11:51,140 --> 00:11:54,569 Sean Aylmer: Bank expects. And he has a pretty good track record 224 00:11:54,570 --> 00:11:56,650 Sean Aylmer: in these sorts of things, predicting interest rates. 225 00:11:57,330 --> 00:11:59,820 Michael Thompson: Yeah. And last week we talked about the banking industry 226 00:11:59,820 --> 00:12:03,540 Michael Thompson: appearing before the Parliamentary Joint Committee on Corporations and Financial 227 00:12:03,540 --> 00:12:07,280 Michael Thompson: Services Inquiry, quite a mouthful. But on Friday, the Australian 228 00:12:07,280 --> 00:12:10,380 Michael Thompson: Banking Association appeared and it said the industry was actively 229 00:12:10,380 --> 00:12:13,960 Michael Thompson: looking at options that used technology, that could be used 230 00:12:13,960 --> 00:12:17,210 Michael Thompson: to basically block credit card use in gambling. Interesting stuff. 231 00:12:17,210 --> 00:12:20,439 Sean Aylmer: It really is. Also, APA Group said if it was 232 00:12:20,440 --> 00:12:23,210 Sean Aylmer: allowed to buy AusNet Services, this is the big takeover 233 00:12:23,210 --> 00:12:26,630 Sean Aylmer: we spoke about last week, it would create a $35 234 00:12:26,630 --> 00:12:31,370 Sean Aylmer: billion flagship AustralianEnergy infrastructure business. That would be the biggest 235 00:12:31,370 --> 00:12:35,370 Sean Aylmer: listed infrastructure company on the bourse. APA of course, is 236 00:12:35,370 --> 00:12:39,250 Sean Aylmer: in a tussle with Canadian giant, Brookfield, to buy the AusNet business. 237 00:12:39,570 --> 00:12:41,380 Michael Thompson: Yeah. And one more, this is from the Bureau of 238 00:12:41,380 --> 00:12:44,690 Michael Thompson: Statistics. They released some data late last week on the 239 00:12:44,690 --> 00:12:48,380 Michael Thompson: change in hours worked by different industries, comparing basically the 240 00:12:48,380 --> 00:12:52,450 Michael Thompson: month before COVID to August. Not surprisingly, hours worked in 241 00:12:52,450 --> 00:12:56,360 Michael Thompson: accommodation and food services and arts and recreation all 242 00:12:56,360 --> 00:13:00,050 Michael Thompson: tumbled, but there were more hours worked in rental, hiring 243 00:13:00,050 --> 00:13:03,350 Michael Thompson: and real estate services, and in public administration and safety. 244 00:13:03,720 --> 00:13:05,230 Sean Aylmer: Perhaps not a surprise, that last one. 245 00:13:05,520 --> 00:13:08,559 Michael Thompson: Yeah, probably not. Now, what's the key overseas news this morning? 246 00:13:09,020 --> 00:13:11,900 Sean Aylmer: Well, it's a really big week for US President Joe Biden. 247 00:13:11,970 --> 00:13:15,699 Sean Aylmer: Eight months in and his popularity is waning, big time. 248 00:13:15,970 --> 00:13:20,910 Sean Aylmer: This week, he's supposed to be negotiating a $US1.2 trillion infrastructure bill, 249 00:13:21,150 --> 00:13:24,360 Sean Aylmer: but much of the debate is within the Democratic Party. 250 00:13:24,400 --> 00:13:27,750 Sean Aylmer: It's actually a bipartisan bill between the Republicans and the Democrats, 251 00:13:28,000 --> 00:13:31,870 Sean Aylmer: but within the party itself, they're upset about what's being spent. 252 00:13:32,220 --> 00:13:34,970 Sean Aylmer: He also needs to avert a federal shutdown by raising 253 00:13:34,970 --> 00:13:38,620 Sean Aylmer: the debt limit before Friday. The withdrawal from Afghanistan is 254 00:13:38,620 --> 00:13:41,469 Sean Aylmer: still not playing well in the community. The COVID news 255 00:13:41,470 --> 00:13:44,610 Sean Aylmer: isn't great. And there's a rush of migrants from Haiti 256 00:13:44,850 --> 00:13:48,160 Sean Aylmer: after some dreadful natural disasters in that country. The honeymoon 257 00:13:48,160 --> 00:13:51,650 Sean Aylmer: for Joe is well and truly over. The German election 258 00:13:51,650 --> 00:13:54,790 Sean Aylmer: was held over the weekend, to find a replacement for outgoing, 259 00:13:55,059 --> 00:13:57,949 Sean Aylmer: Angela Merkel, one of the globes leading states people for 260 00:13:57,950 --> 00:14:00,990 Sean Aylmer: more than a decade. As we go to air, it's not clear 261 00:14:00,990 --> 00:14:05,189 Sean Aylmer: who won. The centre- right CDU/ CSU party, or the left 262 00:14:05,190 --> 00:14:08,580 Sean Aylmer: of centre, Social Democrats. And one of my favourite stories 263 00:14:08,580 --> 00:14:11,219 Sean Aylmer: over the weekend was the push by the European Union 264 00:14:11,590 --> 00:14:16,440 Sean Aylmer: to require the smartphone industry, Apple, Google, all the Android devices, 265 00:14:16,800 --> 00:14:20,990 Sean Aylmer: to adopt a uniform charging cord. Michael, I'm sure you're 266 00:14:20,990 --> 00:14:22,979 Sean Aylmer: like me and you live in a household mixed with 267 00:14:22,980 --> 00:14:27,340 Sean Aylmer: Apple and Android devices. This could be a lifesaver, or 268 00:14:27,340 --> 00:14:30,560 Sean Aylmer: mind you, it possibly could cause more fights over who 269 00:14:30,560 --> 00:14:31,240 Sean Aylmer: has the charger. 270 00:14:31,780 --> 00:14:35,520 Michael Thompson: Sean, I know it's only Monday, but this could well 271 00:14:35,520 --> 00:14:38,090 Michael Thompson: be a front- runner for my favourite story of the week. 272 00:14:38,090 --> 00:14:40,730 Michael Thompson: This is one of those common sense things, that if 273 00:14:40,730 --> 00:14:43,880 Michael Thompson: the European Union manages to pull this one off, then 274 00:14:43,910 --> 00:14:45,180 Michael Thompson: they're onto a real winner there. 275 00:14:45,550 --> 00:14:45,810 Sean Aylmer: Absolutely. 276 00:14:46,540 --> 00:14:49,060 Michael Thompson: Now, up next is the daily interview. And today you 277 00:14:49,060 --> 00:14:52,660 Michael Thompson: are talking to Jason Cooper, the CEO of Envirosuite. Now, 278 00:14:52,660 --> 00:14:55,590 Michael Thompson: this is a company that Matthew Kidman from Centennial Asset 279 00:14:55,660 --> 00:14:57,390 Michael Thompson: Management mentioned a few weeks back. 280 00:14:57,460 --> 00:15:00,440 Sean Aylmer: Sure is. it's one Matthew was keeping an eye on. 281 00:15:00,790 --> 00:15:04,680 Sean Aylmer: Envirosuite basically comes with high tech solutions to environmental problems. 282 00:15:05,020 --> 00:15:07,760 Sean Aylmer: So, with companies and cities around the world starting to 283 00:15:07,760 --> 00:15:11,650 Sean Aylmer: face up to a lot of environmental challenges, Envirosuite's in 284 00:15:11,650 --> 00:15:13,560 Sean Aylmer: a very good position to make the most of it. 285 00:15:14,000 --> 00:15:16,210 Michael Thompson: Yeah, interesting one. That's up next in the Fear and 286 00:15:16,210 --> 00:15:20,850 Michael Thompson: Greed playlist on your podcast platform, or at fearandgreed.com.au. While 287 00:15:20,850 --> 00:15:23,270 Michael Thompson: you're at it, why not check out The Week Ahead as well, 288 00:15:23,270 --> 00:15:26,570 Michael Thompson: with our resident economist, Stephen Koukoulas. What's coming up this week, Sean? 289 00:15:26,750 --> 00:15:29,310 Sean Aylmer: Well, retail trade figures for August are out. Same with 290 00:15:29,310 --> 00:15:33,080 Sean Aylmer: job vacancies and RBA credit data, and of course CoreLogic 291 00:15:33,080 --> 00:15:33,870 Sean Aylmer: house prices. 292 00:15:33,980 --> 00:15:36,780 Michael Thompson: Yeah. Planning to discuss. That's Fear and Greed The Week Ahead, 293 00:15:36,790 --> 00:15:40,070 Michael Thompson: with Stephen Koukoulas. That's also on your podcast platform, or 294 00:15:40,070 --> 00:15:42,570 Michael Thompson: at fearandgreed.com.au. Thank you very much, Sean. 295 00:15:42,730 --> 00:15:43,620 Sean Aylmer: Enjoy your day, Michael. 296 00:15:43,810 --> 00:15:47,410 Michael Thompson: It's Monday the 27th of September 2021. Make sure you 297 00:15:47,410 --> 00:15:50,270 Michael Thompson: followed Fear and Greed on LinkedIn, Twitter, and Facebook. And 298 00:15:50,270 --> 00:15:53,050 Michael Thompson: you can always find more info at our website, fearandgreed.com.au. 299 00:15:54,080 --> 00:15:56,370 Michael Thompson: I'm Michael Thompson, and that was Fear and Greed. Have a 300 00:15:56,370 --> 00:15:56,840 Michael Thompson: great day.