1 00:00:03,920 --> 00:00:07,040 Speaker 1: It's Monday, the first of July twenty twenty four. Welcome 2 00:00:07,080 --> 00:00:09,480 Speaker 1: to the Fast five Business News by Fear and Greed, 3 00:00:09,480 --> 00:00:11,360 Speaker 1: where we give you the top five business stories you 4 00:00:11,400 --> 00:00:13,920 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:13,960 --> 00:00:15,360 Speaker 1: and good morning Sean Aylmer. 6 00:00:15,520 --> 00:00:17,400 Speaker 2: Good morning, Michael, Sean. 7 00:00:17,680 --> 00:00:20,520 Speaker 1: Five stories in five minutes. Let's get going. Story number one. 8 00:00:20,600 --> 00:00:22,720 Speaker 1: It is one July, of course, and there are a 9 00:00:22,840 --> 00:00:26,320 Speaker 1: range of changes that kick in from today, from income 10 00:00:26,440 --> 00:00:31,200 Speaker 1: tax cuts for employees to superannuation guarantee rate increases for employers, 11 00:00:31,200 --> 00:00:32,240 Speaker 1: and a whole lot in between. 12 00:00:32,640 --> 00:00:35,360 Speaker 2: Sure is, everyone can expect more money in their paypacket 13 00:00:35,360 --> 00:00:37,880 Speaker 2: as a result of the Stage three tax cuts, which 14 00:00:37,920 --> 00:00:40,240 Speaker 2: in total are worth more than one hundred billion dollars. 15 00:00:40,440 --> 00:00:42,199 Speaker 2: In shure, there's no tax if you warn't up to 16 00:00:42,240 --> 00:00:45,560 Speaker 2: eighteen thousan two hundred dollars. A sixteen percent rate kicks 17 00:00:45,600 --> 00:00:47,960 Speaker 2: in up to forty five thousand, then it's thirty percent 18 00:00:48,040 --> 00:00:50,680 Speaker 2: up to one hundred and thirty five thousand, thirty seven 19 00:00:50,680 --> 00:00:52,919 Speaker 2: percent up to one hundred and ninety thousand, and then 20 00:00:52,960 --> 00:00:55,840 Speaker 2: anything over that you get taxed forty five percent. There's 21 00:00:55,880 --> 00:00:58,040 Speaker 2: also an increase in the minimum wage, which affects two 22 00:00:58,080 --> 00:01:01,280 Speaker 2: point six million Australian work that will flow on to 23 00:01:01,440 --> 00:01:05,000 Speaker 2: even more workers. The minimum wage rises three point seventy 24 00:01:05,000 --> 00:01:07,280 Speaker 2: five percent from twenty three to twenty three an hour 25 00:01:07,319 --> 00:01:09,640 Speaker 2: to twenty four to ten an hour. This change is 26 00:01:09,680 --> 00:01:12,480 Speaker 2: to paid parental leave another couple of weeks. There also 27 00:01:12,560 --> 00:01:15,720 Speaker 2: there'll be seventy five dollars energy rebates each quarter during 28 00:01:15,760 --> 00:01:18,760 Speaker 2: this financial liem, there's indexation of welfare payments and the 29 00:01:18,760 --> 00:01:21,560 Speaker 2: superannuation guarantee will rise from eleven percent to eleven and 30 00:01:21,560 --> 00:01:24,000 Speaker 2: a half percent. Yes to say the Prime Minister Anthony 31 00:01:24,000 --> 00:01:26,520 Speaker 2: Albaniz He was out spooking the cuts as part of 32 00:01:26,560 --> 00:01:29,360 Speaker 2: the government's response to the cost of living crisis. He said, 33 00:01:29,360 --> 00:01:33,080 Speaker 2: thirteen point six million Australian taxpayers are about to get 34 00:01:33,160 --> 00:01:33,919 Speaker 2: a tax cut. 35 00:01:34,400 --> 00:01:37,040 Speaker 1: Sewan story number two. The S and p ASX two 36 00:01:37,160 --> 00:01:40,920 Speaker 1: hundred closed up slightly on Friday to seven thou seven 37 00:01:40,959 --> 00:01:43,840 Speaker 1: hundred and sixty seven and a half points, meaning that 38 00:01:44,000 --> 00:01:47,880 Speaker 1: for the full year, the benchmark index actually finished up 39 00:01:47,920 --> 00:01:50,960 Speaker 1: around eight percent. That's pretty good winners and loses for 40 00:01:50,960 --> 00:01:53,160 Speaker 1: the last financial year. Well, it was the tech stocks 41 00:01:53,200 --> 00:01:56,520 Speaker 1: that had the standout year. Technology index was up twenty 42 00:01:56,600 --> 00:01:59,640 Speaker 1: nine percent, the Financials index up twenty three percent, consumer 43 00:01:59,640 --> 00:02:03,120 Speaker 1: discretion index up twenty percent, in the real estate investment 44 00:02:03,320 --> 00:02:06,240 Speaker 1: trusts was up seventeen percent. If you look at those, 45 00:02:06,400 --> 00:02:08,920 Speaker 1: technology was all about AI in data centers, but the 46 00:02:08,960 --> 00:02:13,000 Speaker 1: other three financials, consumer discretionary, and real estate investment trusts 47 00:02:13,360 --> 00:02:16,680 Speaker 1: all about expectations that interest rates would fall. 48 00:02:17,200 --> 00:02:20,120 Speaker 2: Didn't actually happen last year. In fact, they went up anyway. 49 00:02:20,360 --> 00:02:24,000 Speaker 2: The shares of those interstrate sensive stocks did very well. 50 00:02:24,000 --> 00:02:26,799 Speaker 2: The worst performing sectors last year were consumer stables and energy, 51 00:02:27,000 --> 00:02:29,679 Speaker 2: both down about seven percent. The Materials index finished down 52 00:02:29,760 --> 00:02:32,720 Speaker 2: around six percent. Turning to the currency market, the Aussie 53 00:02:32,720 --> 00:02:35,120 Speaker 2: dollar finished the year at sixty six point seven US cents, 54 00:02:35,120 --> 00:02:39,120 Speaker 2: which is exactly where it started. Sixty six point seven 55 00:02:39,200 --> 00:02:41,800 Speaker 2: US cents. We're nowhere. Well, that's not quite true. It 56 00:02:41,800 --> 00:02:44,960 Speaker 2: traded up to sixty nine US cents last July, under 57 00:02:45,000 --> 00:02:48,160 Speaker 2: sixty three cents briefly last October, mostly in that sixty 58 00:02:48,200 --> 00:02:49,960 Speaker 2: five sixty six cent range. 59 00:02:50,440 --> 00:02:54,679 Speaker 1: Sean sorry. Number three Federal Treasurer Jim Chalmers has approved 60 00:02:54,760 --> 00:02:57,560 Speaker 1: A and z's four point nine billion dollar acquisition of 61 00:02:57,639 --> 00:03:01,000 Speaker 1: sun Corpse banking business. This is nearly two years after 62 00:03:01,040 --> 00:03:02,440 Speaker 1: the deal was first proposed. 63 00:03:03,000 --> 00:03:05,639 Speaker 2: Yes Ain's Z boss Shane Elliott said the deal will 64 00:03:05,639 --> 00:03:09,280 Speaker 2: make Aines had a tougher competitor with rivals that's Commonwealth Bank, 65 00:03:09,320 --> 00:03:11,799 Speaker 2: Westpac National Australian Bank in particular, it will be the 66 00:03:11,840 --> 00:03:14,480 Speaker 2: biggest merger in banking since Commonwealth Bank took out Bank 67 00:03:14,520 --> 00:03:17,480 Speaker 2: West during the global financial crisis in two thousand and eight. 68 00:03:17,600 --> 00:03:20,320 Speaker 2: The deal was initially knocked back by the Competition watchdog 69 00:03:20,360 --> 00:03:23,000 Speaker 2: in August last year, that decision was overturned by the 70 00:03:23,040 --> 00:03:25,919 Speaker 2: Australian Competition Tribunal. The Treasurer said the deal was in 71 00:03:25,960 --> 00:03:28,240 Speaker 2: the national interest, but he put some conditions on the merger. 72 00:03:28,240 --> 00:03:30,120 Speaker 2: Ain Z, for example, won't be able to close any 73 00:03:30,160 --> 00:03:33,520 Speaker 2: regional branches anywhere in Australia for three years. It's also 74 00:03:33,600 --> 00:03:37,080 Speaker 2: got to try and join with the Australia Post Banking Service. 75 00:03:37,480 --> 00:03:40,000 Speaker 2: Obviously plenty of work, but both companies are hoping it 76 00:03:40,120 --> 00:03:42,920 Speaker 2: will be completed by July thirty one. 77 00:03:43,320 --> 00:03:45,320 Speaker 1: Sean story number four. It looks like all the talk 78 00:03:45,360 --> 00:03:48,560 Speaker 1: of interest rate hikes could have spooked a few buyers 79 00:03:48,720 --> 00:03:51,800 Speaker 1: over the weekend, with a preliminary clearance rate for auctions 80 00:03:52,080 --> 00:03:54,880 Speaker 1: across the country coming in at seventy percent. That's down 81 00:03:55,080 --> 00:03:57,320 Speaker 1: nearly two and a half percentage points from a week ago. 82 00:03:57,680 --> 00:04:00,000 Speaker 2: Yeah, there's also was a drop in the number of auctions. 83 00:04:00,160 --> 00:04:03,120 Speaker 2: According to core Logic, Melbourne's preliminary clearance straight came in 84 00:04:03,160 --> 00:04:05,920 Speaker 2: at sixty eight point two percent, Sydney was at seventy 85 00:04:05,920 --> 00:04:08,520 Speaker 2: two percent and late eighty two percent, Brisbane a touch 86 00:04:08,600 --> 00:04:12,280 Speaker 2: under sixty three percent. Basically, the winter slowdown has kicked in. 87 00:04:12,560 --> 00:04:14,680 Speaker 2: Of course, the Beth of June gives me the excuse 88 00:04:14,720 --> 00:04:16,719 Speaker 2: to look at how house prices did for the full year. 89 00:04:17,120 --> 00:04:20,760 Speaker 2: Perthally the way house price is up nearly twenty four percent, massive, 90 00:04:20,960 --> 00:04:23,960 Speaker 2: Brisbane Adelaide came in at sixteen and fifteen percent respectively. 91 00:04:24,160 --> 00:04:27,200 Speaker 2: Sydney was six percent, Darwin and Cambridge just over two percent, 92 00:04:27,279 --> 00:04:31,520 Speaker 2: Melbourne one point three percent, and Hobart actually went backwards 93 00:04:31,680 --> 00:04:33,000 Speaker 2: by zero point one percent. 94 00:04:33,800 --> 00:04:36,559 Speaker 1: Story number five. Looking overseas for this one, Sean Nike, 95 00:04:37,000 --> 00:04:41,600 Speaker 1: the world's largest sportswear company, has downgraded its earnings outlook 96 00:04:41,640 --> 00:04:44,240 Speaker 1: on the back of waning demand for its sneakers and 97 00:04:44,240 --> 00:04:44,920 Speaker 1: it's apparel. 98 00:04:45,360 --> 00:04:48,400 Speaker 2: Yes, the owner of Jordan and Converse Style, said revenue 99 00:04:48,400 --> 00:04:51,440 Speaker 2: is declining rather than growing. As I had expected. Shares 100 00:04:51,480 --> 00:04:54,320 Speaker 2: fell twenty percent over the weekend, down by about the 101 00:04:54,360 --> 00:04:56,640 Speaker 2: same mountain in the previous twelve months. Hasn't been good 102 00:04:56,640 --> 00:05:01,000 Speaker 2: for Nike. Executives blamed the slowdown in part on lifestyle brands, 103 00:05:01,040 --> 00:05:03,880 Speaker 2: including air Force One and Nike Dunks, which get a 104 00:05:03,920 --> 00:05:07,760 Speaker 2: high proportion of their sales online. The lifestyle categories sales 105 00:05:07,920 --> 00:05:10,800 Speaker 2: fell for the first time since the start of the pandemic, 106 00:05:11,080 --> 00:05:14,240 Speaker 2: when demand for casual tie took off. The slowdown is 107 00:05:14,279 --> 00:05:17,560 Speaker 2: adding urgency to Nike's efforts to speed up product development. Also, 108 00:05:17,600 --> 00:05:20,320 Speaker 2: there's a bunch of new competitors making some pretty good inroads. 109 00:05:20,360 --> 00:05:24,920 Speaker 2: Howker running shoes with one example. Nike's promised to prioritize sports, 110 00:05:25,200 --> 00:05:28,720 Speaker 2: new products and wholesale partners to turn things around. 111 00:05:29,160 --> 00:05:31,400 Speaker 1: All right, there we go, the top five business stories 112 00:05:31,400 --> 00:05:34,680 Speaker 1: in five minutes. Thank you Sean, Thank you Michael. It's Monday, 113 00:05:34,720 --> 00:05:36,920 Speaker 1: the first of July twenty twenty four. Remembered to hit 114 00:05:36,960 --> 00:05:39,840 Speaker 1: follow on the podcast and if five minutes sasn't en after, 115 00:05:39,839 --> 00:05:42,040 Speaker 1: you can find our longer daily show called Fear and 116 00:05:42,080 --> 00:05:45,120 Speaker 1: Greed where ever you listen to podcasts. I'm Michael Thompson 117 00:05:45,160 --> 00:05:47,039 Speaker 1: and that was the fast five business news by fear 118 00:05:47,080 --> 00:05:48,599 Speaker 1: and greed have a great date.