1 00:00:03,920 --> 00:00:07,160 Speaker 1: It's Thursday, the thirtieth of May twenty twenty four. Welcome 2 00:00:07,200 --> 00:00:09,680 Speaker 1: to the Fast five Business News by Fearing Greed, where 3 00:00:09,720 --> 00:00:11,520 Speaker 1: we give you the top five business stories you need 4 00:00:11,560 --> 00:00:14,240 Speaker 1: to know into five minutes. A'm Michael Thompson and good 5 00:00:14,320 --> 00:00:15,440 Speaker 1: morning Sean Aylmer. 6 00:00:15,720 --> 00:00:16,720 Speaker 2: Good morning, Michael. 7 00:00:16,920 --> 00:00:19,960 Speaker 1: Sean. We've got five massive stories to get through this 8 00:00:20,040 --> 00:00:22,560 Speaker 1: morning in five minutes, so let's get cracking. Story Number one, 9 00:00:23,079 --> 00:00:27,600 Speaker 1: inflation is no longer falling, suggesting that any cut in 10 00:00:27,720 --> 00:00:29,920 Speaker 1: interest rates could be a long way off. 11 00:00:30,440 --> 00:00:33,159 Speaker 2: Unfortunately, Yes, annual inflation for the twelve months to the 12 00:00:33,240 --> 00:00:35,320 Speaker 2: end of April stepped up to three point six percent 13 00:00:35,360 --> 00:00:37,559 Speaker 2: from three and a half percent the previous month. According 14 00:00:37,600 --> 00:00:40,600 Speaker 2: to the Bureau of Statistics, housing costs and fruit and vegetables 15 00:00:40,640 --> 00:00:43,280 Speaker 2: rows the ladder due to bad weather. Also, the figure 16 00:00:43,320 --> 00:00:46,280 Speaker 2: included the annual increase in health insurance premiums. Other items 17 00:00:46,440 --> 00:00:51,040 Speaker 2: jump sharply included postal services, tobacco, and sports participation in services. 18 00:00:51,080 --> 00:00:54,920 Speaker 2: Perhaps most concerning is that the trimmed mean measure, which 19 00:00:54,920 --> 00:00:57,120 Speaker 2: the Reserve Bank likes, it takes out some of the 20 00:00:57,160 --> 00:00:59,800 Speaker 2: more volatile items like fruit and veggies. It ticked up 21 00:00:59,840 --> 00:01:03,280 Speaker 2: to four point one percent. Now, it's a monthly reading, 22 00:01:03,440 --> 00:01:05,720 Speaker 2: so we have to read it with some care. But 23 00:01:05,760 --> 00:01:08,360 Speaker 2: the trend is not the Reserve Bank's friend in this case. 24 00:01:08,520 --> 00:01:13,240 Speaker 2: Inflation at best is flatlining headline inflations and trenched around 25 00:01:13,280 --> 00:01:15,919 Speaker 2: three and a half percent, underlying inflations around four percent, 26 00:01:16,200 --> 00:01:18,720 Speaker 2: both well above the central banks target band, Michael, and 27 00:01:18,760 --> 00:01:19,759 Speaker 2: that's two to three percent. 28 00:01:20,160 --> 00:01:22,320 Speaker 1: So Sean break it down first, what does it mean 29 00:01:22,360 --> 00:01:23,160 Speaker 1: for interest rates? 30 00:01:23,440 --> 00:01:25,920 Speaker 2: Those wanting a rate cut this year are disappointed. This 31 00:01:25,920 --> 00:01:28,479 Speaker 2: morning the Reserve Bank minutes of its last board meeting 32 00:01:28,520 --> 00:01:32,039 Speaker 2: showed that the Central Bank discussed lifting rates, and yesterday's 33 00:01:32,080 --> 00:01:34,520 Speaker 2: number would have added some real spice to that discussion 34 00:01:34,520 --> 00:01:38,040 Speaker 2: had they come out ahead of that board meeting. As 35 00:01:38,080 --> 00:01:40,200 Speaker 2: I've mentioned before, the X factor in all this is 36 00:01:40,240 --> 00:01:42,920 Speaker 2: the Stage three tax cuts. People will have more take 37 00:01:42,920 --> 00:01:44,880 Speaker 2: home pay in a month's time, and it's unclear what 38 00:01:44,959 --> 00:01:46,800 Speaker 2: they're going to do with it. If they rush out 39 00:01:46,840 --> 00:01:49,040 Speaker 2: and spend it all rather than paying down dead or saving, 40 00:01:49,320 --> 00:01:51,720 Speaker 2: it will be inflationary and that will keep rates higher 41 00:01:51,760 --> 00:01:52,200 Speaker 2: for longer. 42 00:01:52,480 --> 00:01:54,360 Speaker 1: All right, Sean on to story number two. Now, this 43 00:01:54,400 --> 00:01:57,640 Speaker 1: is a big one. BHP and Anglo American have failed 44 00:01:57,640 --> 00:02:00,440 Speaker 1: to reach agreement over the terms of a seven five 45 00:02:00,520 --> 00:02:03,600 Speaker 1: billion dollar takeover offer. With the structure of the deal 46 00:02:03,640 --> 00:02:07,480 Speaker 1: the sticking point. BHP asked for more time, but Anglo 47 00:02:07,560 --> 00:02:10,200 Speaker 1: rejected the request, meaning there's no deal for at least 48 00:02:10,240 --> 00:02:14,040 Speaker 1: six months. Last week, Anglo American rejected BHP's third offer, 49 00:02:14,040 --> 00:02:16,240 Speaker 1: but granted the Big Australian in another seven days to 50 00:02:16,280 --> 00:02:19,399 Speaker 1: negotiate after being pressured by some of its largest shareholders. 51 00:02:19,600 --> 00:02:21,640 Speaker 1: That deadline was two am this morning, and under the 52 00:02:21,720 --> 00:02:24,720 Speaker 1: UK's put up or shut up laws, BHP had to 53 00:02:24,720 --> 00:02:27,920 Speaker 1: announce a firm intention to make an offer or say 54 00:02:27,960 --> 00:02:30,639 Speaker 1: that it didn't intend to make an offer hours before 55 00:02:30,680 --> 00:02:33,560 Speaker 1: the deadline. About eight hours before the deadline, BHP requested 56 00:02:33,560 --> 00:02:36,840 Speaker 1: another week. A couple of hours later, Anglo Americans said no. 57 00:02:37,160 --> 00:02:41,200 Speaker 1: It said BHP hadn't addressed fundamental concerns over the previous week, 58 00:02:41,320 --> 00:02:44,240 Speaker 1: so it wasn't going to extend that deadline. BHP then 59 00:02:44,320 --> 00:02:46,160 Speaker 1: had that five or six hours to make a bid 60 00:02:46,160 --> 00:02:49,359 Speaker 1: that didn't happen. The sticking point was bahp's insistence that 61 00:02:49,480 --> 00:02:52,400 Speaker 1: Anglo sell to its South African assets. The prize in 62 00:02:52,440 --> 00:02:54,400 Speaker 1: all of this for BHP was supposed to be copper. 63 00:02:54,800 --> 00:02:58,400 Speaker 1: Successful bid would have made BHP the biggest copper producer 64 00:02:58,440 --> 00:03:01,000 Speaker 1: in the world. Now BHP you must wait six months 65 00:03:01,040 --> 00:03:03,600 Speaker 1: before beating again, and that leaves the potential for another 66 00:03:03,639 --> 00:03:07,520 Speaker 1: bitter someone like rend Tinto perhaps to emerge. Story number three. 67 00:03:07,680 --> 00:03:11,600 Speaker 1: Toyota has unveiled plans for a new generation of internal 68 00:03:11,639 --> 00:03:16,080 Speaker 1: combustion engines, betting on a continued need for older technologies 69 00:03:16,160 --> 00:03:19,360 Speaker 1: even as car buyers shift towards electric vehicle makers. 70 00:03:19,760 --> 00:03:22,720 Speaker 2: In a rare joint appearance, the heads of Toyota, Mazda, 71 00:03:22,800 --> 00:03:26,080 Speaker 2: and Subaru pledge to continue investing in fuel based technology, 72 00:03:26,080 --> 00:03:28,800 Speaker 2: a move that would also benefit hundreds of supplies struggling 73 00:03:28,840 --> 00:03:32,359 Speaker 2: with the shift to evs. According to the FT, Toyota's 74 00:03:32,400 --> 00:03:36,080 Speaker 2: chief executive Coach Sato says that engines are designed to 75 00:03:36,080 --> 00:03:39,240 Speaker 2: be used long batteries in hybrid vehicles. Toyota's commitment to 76 00:03:39,280 --> 00:03:42,920 Speaker 2: internal combustion engine technology comes as sales of fully electric 77 00:03:43,000 --> 00:03:46,240 Speaker 2: cars have slowed. That's pretty much around concerns on costs 78 00:03:46,280 --> 00:03:49,600 Speaker 2: and insufficient charging networks. That's led to a boom in 79 00:03:49,680 --> 00:03:52,720 Speaker 2: demand for hybrids. Certainly we've seen that in Australia with 80 00:03:52,760 --> 00:03:55,440 Speaker 2: the Toyota Rav four earlier in the week, Toyota said 81 00:03:55,440 --> 00:03:58,000 Speaker 2: its new engines should go into production around the time 82 00:03:58,040 --> 00:04:01,360 Speaker 2: that updated EU emission regulations to be phased in from 83 00:04:01,400 --> 00:04:02,640 Speaker 2: the end of twenty twenty six. 84 00:04:03,160 --> 00:04:05,520 Speaker 1: Sean story number four. Last week we talked about fears 85 00:04:05,520 --> 00:04:07,440 Speaker 1: of an outbreak of bird flu after a case in 86 00:04:07,480 --> 00:04:09,920 Speaker 1: a human and one in a chicken was discovered in Australia. 87 00:04:10,240 --> 00:04:13,760 Speaker 1: Now in Iowa in the US, the deadly bird flu 88 00:04:13,880 --> 00:04:17,719 Speaker 1: was detected in an egg laying chicken flock, affecting four 89 00:04:17,800 --> 00:04:19,839 Speaker 1: point two million birds. 90 00:04:20,680 --> 00:04:24,200 Speaker 2: It's the biggest outbreak since twenty twenty two. Now Iowa 91 00:04:24,320 --> 00:04:27,600 Speaker 2: is the largest egg producer in the US, about twelve 92 00:04:27,600 --> 00:04:30,920 Speaker 2: percent of the country's egg laying hens are there. In 93 00:04:31,240 --> 00:04:35,400 Speaker 2: the last large scale outbreak, more than five million birds 94 00:04:35,400 --> 00:04:39,760 Speaker 2: were affected directly, but it meant the slaughter of tens 95 00:04:39,800 --> 00:04:42,000 Speaker 2: of millions of birds and a surge in the price 96 00:04:42,040 --> 00:04:44,840 Speaker 2: of eggs. The virus has now moved to dairy cattle, 97 00:04:45,000 --> 00:04:48,000 Speaker 2: according to Bloomberg, prompting dairy farmers to seek compensation for 98 00:04:48,040 --> 00:04:50,800 Speaker 2: milk losses. Of course, Australia is the only continent that 99 00:04:50,880 --> 00:04:54,760 Speaker 2: hasn't had a mass outbreak of bird flu yet very 100 00:04:54,800 --> 00:04:57,200 Speaker 2: worrying signs though when it's happening in other parts of 101 00:04:57,200 --> 00:04:59,800 Speaker 2: the world. Just need to keep an eye on this one, Michael. 102 00:05:00,080 --> 00:05:03,240 Speaker 1: Absolutely, all right. Last one story number five shown there 103 00:05:03,320 --> 00:05:05,880 Speaker 1: is a crisis in the world of oranges, with juice 104 00:05:05,920 --> 00:05:09,640 Speaker 1: prices hitting record highs driven by bad weather and disease 105 00:05:09,760 --> 00:05:11,960 Speaker 1: in Brazil, which is the world's largest exporter. 106 00:05:12,360 --> 00:05:15,000 Speaker 2: It's so bad, Michael, that manufacturers are looking at using 107 00:05:16,160 --> 00:05:20,880 Speaker 2: mandarins instead to make orange juice. That's a crisis. Orange 108 00:05:20,920 --> 00:05:23,599 Speaker 2: juice futures, which allow industry players to hedge against swings 109 00:05:23,600 --> 00:05:26,239 Speaker 2: in prices, have been rising since the end of twenty 110 00:05:26,279 --> 00:05:28,880 Speaker 2: twenty two in a hurricane and a cold snap devastated 111 00:05:28,920 --> 00:05:31,559 Speaker 2: acres of orange grows in Florida. That's the main growing 112 00:05:31,600 --> 00:05:33,880 Speaker 2: region in the US and the world's second biggest producer. 113 00:05:34,200 --> 00:05:36,560 Speaker 2: But the rally has really picked up pace this month 114 00:05:36,560 --> 00:05:39,080 Speaker 2: as the prospect of a dismal harvest in Brazil has 115 00:05:39,160 --> 00:05:42,880 Speaker 2: panicked the market. According to the Financial Times, Brazil exports 116 00:05:42,960 --> 00:05:46,000 Speaker 2: eighty percent of the aj market, which is different to 117 00:05:46,040 --> 00:05:49,640 Speaker 2: the orange market. The orange juice market is different. Futures 118 00:05:49,640 --> 00:05:52,240 Speaker 2: are currently twice the price of a year ago, going 119 00:05:52,279 --> 00:05:55,039 Speaker 2: to be become more expensive in the supermarket. 120 00:05:54,839 --> 00:05:56,840 Speaker 1: All right, there we go the top five business stories 121 00:05:56,839 --> 00:05:59,400 Speaker 1: in five minutes. Thank you Sean, Thank you Michael. It 122 00:05:59,480 --> 00:06:02,320 Speaker 1: is Thursday, the thirtieth of May twenty twenty four. Make 123 00:06:02,360 --> 00:06:05,039 Speaker 1: sure you're following the podcast and please join us online 124 00:06:05,080 --> 00:06:08,920 Speaker 1: on LinkedIn, Instagram, x TikTok and Facebook. Don't forget to 125 00:06:09,000 --> 00:06:11,320 Speaker 1: check out the new episode of our sister podcast, How 126 00:06:11,360 --> 00:06:13,800 Speaker 1: Do They Afford That, which comes out every Wednesday. This 127 00:06:13,920 --> 00:06:17,440 Speaker 1: week's episode is all about whether money can make you happy, 128 00:06:17,560 --> 00:06:20,000 Speaker 1: and we've got a bunch of tips for mindful spending. 129 00:06:20,120 --> 00:06:22,800 Speaker 1: It is a really interesting episode. I'll put a link 130 00:06:22,839 --> 00:06:25,120 Speaker 1: in today's show notes. I'm Michael Thompson and that was 131 00:06:25,120 --> 00:06:27,440 Speaker 1: the fast five business news by Fear and Greed. Have 132 00:06:27,520 --> 00:06:30,320 Speaker 1: a great day.