1 00:00:04,019 --> 00:00:06,479 Sean Aylmer: Welcome to the Fear and Greed Business Interview. I'm Sean 2 00:00:06,720 --> 00:00:09,478 Sean Aylmer: Aylmer. Reporting season is a great time of year for 3 00:00:09,480 --> 00:00:12,690 Sean Aylmer: investors, probably for analysts too, but they work very hard 4 00:00:12,690 --> 00:00:15,870 Sean Aylmer: on it. So much information about company's results and importantly, 5 00:00:15,870 --> 00:00:18,299 Sean Aylmer: insight into where they might be headed. I wanted to 6 00:00:18,329 --> 00:00:20,400 Sean Aylmer: look at some of the winners and losers from the past 7 00:00:20,400 --> 00:00:23,009 Sean Aylmer: couple of weeks. Remember, this information is general in nature, 8 00:00:23,009 --> 00:00:26,428 Sean Aylmer: and you should always seek professional advice before making any 9 00:00:26,428 --> 00:00:31,230 Sean Aylmer: investment decisions. Steve Daghlian is a market analyst at CommSec. 10 00:00:31,230 --> 00:00:32,790 Sean Aylmer: Steven, welcome to Fear and Greed. 11 00:00:33,120 --> 00:00:34,139 Steve Daghlian: Sean, thanks for having me. 12 00:00:34,379 --> 00:00:35,969 Sean Aylmer: So we're a couple of weeks in. We've got another 13 00:00:35,969 --> 00:00:38,400 Sean Aylmer: week to go, but just big picture, what are the 14 00:00:38,400 --> 00:00:41,700 Sean Aylmer: couple of the themes that you've seen emerge from earning season? 15 00:00:42,030 --> 00:00:45,000 Steve Daghlian: Yeah, so I should probably mention that the expectations were 16 00:00:45,000 --> 00:00:47,759 Steve Daghlian: quite low heading into the season, which I think is 17 00:00:47,759 --> 00:00:51,269 Steve Daghlian: important to note when you see the response we've had 18 00:00:51,269 --> 00:00:54,720 Steve Daghlian: from some stocks. There were plenty of companies that had 19 00:00:54,720 --> 00:00:58,800 Steve Daghlian: downgraded their expectations in June and July. So what this 20 00:00:58,800 --> 00:01:01,350 Steve Daghlian: means is we were quite well prepared for some underwhelming 21 00:01:01,350 --> 00:01:03,779 Steve Daghlian: numbers, and that's what we've seen for some. So it 22 00:01:03,840 --> 00:01:06,780 Steve Daghlian: hasn't been perhaps quite as bad as some had feared. 23 00:01:06,959 --> 00:01:10,410 Steve Daghlian: I reckon most companies have been at least meeting the 24 00:01:10,410 --> 00:01:13,620 Steve Daghlian: low expectations and those that haven't been, there's been a 25 00:01:13,620 --> 00:01:17,400 Steve Daghlian: relatively even split between those that have been beating and 26 00:01:17,400 --> 00:01:20,190 Steve Daghlian: those that have been falling short of market hopes. Dividends 27 00:01:20,190 --> 00:01:24,059 Steve Daghlian: have been quite reasonable overall. The one area perhaps where 28 00:01:24,059 --> 00:01:26,699 Steve Daghlian: companies have been a bit cautious is the outlook. So there've 29 00:01:26,880 --> 00:01:31,770 Steve Daghlian: been plenty of warnings of slowing revenues, higher cost, higher 30 00:01:31,770 --> 00:01:35,399 Steve Daghlian: energy bills, higher rents, interest repayments. We've had 12 rate 31 00:01:35,400 --> 00:01:38,309 Steve Daghlian: hikes of course, over the past year. So even though 32 00:01:38,309 --> 00:01:40,409 Steve Daghlian: we haven't had rate hikes for the last couple of 33 00:01:40,410 --> 00:01:43,469 Steve Daghlian: months, we still have had 12. So that's a lot 34 00:01:43,469 --> 00:01:46,020 Steve Daghlian: for not only consumers to deal with, but also the 35 00:01:46,020 --> 00:01:46,920 Steve Daghlian: businesses with higher costs. 36 00:01:46,920 --> 00:01:50,460 Sean Aylmer: Okay, so just a couple of things. Are there much 37 00:01:50,460 --> 00:01:53,640 Sean Aylmer: talked about, six months ago everyone was talking about costs 38 00:01:53,640 --> 00:01:56,459 Sean Aylmer: and inflation. I'm interested in that. Also, everyone was talking 39 00:01:56,460 --> 00:01:58,590 Sean Aylmer: about staffing and things like that. Those two issues don't 40 00:01:58,590 --> 00:02:00,989 Sean Aylmer: seem to be quite as prevalent this time around. 41 00:02:01,469 --> 00:02:03,929 Steve Daghlian: Yeah, maybe not as much, but they're still certainly there. 42 00:02:03,929 --> 00:02:06,660 Steve Daghlian: So most companies are still mentioning that they've been hit 43 00:02:06,690 --> 00:02:08,850 Steve Daghlian: by higher costs. It kind of depends which areas you 44 00:02:08,850 --> 00:02:11,940 Steve Daghlian: look at. Higher wages, higher costs, high energy bills have 45 00:02:11,940 --> 00:02:15,570 Steve Daghlian: been discussed by most. Certainly, I think there was probably 46 00:02:15,570 --> 00:02:18,270 Steve Daghlian: more concern about all of the rate hikes that were 47 00:02:18,270 --> 00:02:21,029 Steve Daghlian: coming, say a year ago, and now we've got most 48 00:02:21,030 --> 00:02:23,490 Steve Daghlian: or perhaps all of them out of the way. And 49 00:02:23,520 --> 00:02:26,669 Steve Daghlian: maybe there's a little more certainty around that is perhaps 50 00:02:26,669 --> 00:02:29,190 Steve Daghlian: just settling nerves a little. But the outlooks have been 51 00:02:29,220 --> 00:02:32,370 Steve Daghlian: pretty cautious for many companies, no doubt, regardless. 52 00:02:32,849 --> 00:02:35,369 Sean Aylmer: Okay, so let's look at some of the retail stocks. 53 00:02:35,370 --> 00:02:38,190 Sean Aylmer: And there've been a few winners among the retailers. I suppose 54 00:02:38,190 --> 00:02:40,710 Sean Aylmer: we should start with the biggest of the lot. Well, 55 00:02:40,799 --> 00:02:43,860 Sean Aylmer: one of the biggest. Wesfarmers, late last week, came out 56 00:02:43,860 --> 00:02:45,210 Sean Aylmer: a pretty good result all in all. 57 00:02:45,750 --> 00:02:48,299 Steve Daghlian: This is the interesting thing. I'll quickly mention that the 58 00:02:48,300 --> 00:02:50,820 Steve Daghlian: only sector to be in positive territory at the moment 59 00:02:50,820 --> 00:02:54,360 Steve Daghlian: this whole month, has been consumer discretionary, which includes, of course, 60 00:02:54,360 --> 00:02:57,059 Steve Daghlian: the retailers. So they're up roughly 1.5%. 61 00:02:57,839 --> 00:03:00,299 Sean Aylmer: How does that work? Isn't consumer discretionary in a rising 62 00:03:00,299 --> 00:03:03,059 Sean Aylmer: interest rate, cost of living crisis environment, they're not supposed 63 00:03:03,060 --> 00:03:03,690 Sean Aylmer: to outperform? 64 00:03:04,260 --> 00:03:06,630 Steve Daghlian: That's very true. I think what has happened is in 65 00:03:06,630 --> 00:03:09,450 Steve Daghlian: the lead up to the reporting season, we've had quite 66 00:03:09,450 --> 00:03:12,480 Steve Daghlian: a few of these retailers warning that things aren't hunky- 67 00:03:12,480 --> 00:03:15,480 Steve Daghlian: dory and they're not looking great at the moment. They've been 68 00:03:15,480 --> 00:03:20,070 Steve Daghlian: warning, sales slowing down. We've had retailer after retailer saying 69 00:03:20,070 --> 00:03:23,460 Steve Daghlian: that they're noticing a trend where consumers are getting much 70 00:03:23,460 --> 00:03:26,549 Steve Daghlian: more cautious and perhaps that's just set up markets for 71 00:03:26,910 --> 00:03:30,840 Steve Daghlian: being very well prepared for disappointing results. So when we 72 00:03:30,840 --> 00:03:34,050 Steve Daghlian: are seeing companies like Wesfarmers, for example, coming out with 73 00:03:34,050 --> 00:03:39,540 Steve Daghlian: an 18% lift in revenue, a 5% jump in profits, that's 74 00:03:39,540 --> 00:03:42,090 Steve Daghlian: been quite well received by markets and there have been 75 00:03:42,090 --> 00:03:44,940 Steve Daghlian: other examples, of course, of in that retail space that 76 00:03:44,940 --> 00:03:47,070 Steve Daghlian: have responded quite well to their numbers too. 77 00:03:47,520 --> 00:03:50,400 Sean Aylmer: Okay, let's just run through a few. JB Hi-Fi. It 78 00:03:50,580 --> 00:03:53,609 Sean Aylmer: was a share market darling, probably less so nowadays, but 79 00:03:53,609 --> 00:03:54,540 Sean Aylmer: everyone likes to watch it. 80 00:03:55,050 --> 00:03:57,210 Steve Daghlian: So when it released its results, it rose about 3% 81 00:03:57,600 --> 00:04:00,750 Steve Daghlian: on the day. So it had a 4.5% lift in sales. 82 00:04:00,840 --> 00:04:03,689 Steve Daghlian: That was actually above what analysts were expecting for the 83 00:04:03,690 --> 00:04:06,630 Steve Daghlian: most part. Annual profits did drop, but again, I don't 84 00:04:06,630 --> 00:04:09,450 Steve Daghlian: think this was really a big surprise and the dividend 85 00:04:09,450 --> 00:04:12,510 Steve Daghlian: also dropped back. So they did warn that sales have 86 00:04:12,510 --> 00:04:15,270 Steve Daghlian: started to slow in July. But I think that the 87 00:04:15,270 --> 00:04:19,380 Steve Daghlian: fact that these are not surprising announcements to make, is 88 00:04:19,380 --> 00:04:21,900 Steve Daghlian: one reason I think why retailers are bouncing back. 89 00:04:22,559 --> 00:04:26,250 Sean Aylmer: What about Premier Investments? The former JB Hi-Fi man, he's 90 00:04:26,250 --> 00:04:29,549 Sean Aylmer: leaving Premier Investments. Solomon Lew, of course, is a major 91 00:04:29,549 --> 00:04:32,130 Sean Aylmer: shareholder in that company. Where do you put that one? 92 00:04:32,130 --> 00:04:36,479 Sean Aylmer: And just for listeners, we're talking Smiggles, Peter Alexander, those groups. 93 00:04:36,990 --> 00:04:41,610 Steve Daghlian: Exactly. So Premier rose 12% when it released its results. So 94 00:04:41,610 --> 00:04:44,700 Steve Daghlian: it was one of those companies that really responded quite 95 00:04:44,700 --> 00:04:48,149 Steve Daghlian: positively to, not really the numbers, the actual profit results, 96 00:04:48,150 --> 00:04:50,460 Steve Daghlian: because it will release its profit results in late September. 97 00:04:50,460 --> 00:04:53,460 Steve Daghlian: But in August it did provide a trading update and 98 00:04:53,460 --> 00:04:55,890 Steve Daghlian: that seemed to be enough. So it said it expects 99 00:04:55,890 --> 00:04:58,740 Steve Daghlian: record profits over the year. It said that sales over the 100 00:04:58,740 --> 00:05:02,370 Steve Daghlian: past 12 months have jumped by close to 10% and 101 00:05:02,370 --> 00:05:05,219 Steve Daghlian: it is also considering splitting the business in two. So 102 00:05:05,219 --> 00:05:07,080 Steve Daghlian: it's looking into that at the moment. And you're right, 103 00:05:07,290 --> 00:05:12,180 Steve Daghlian: Peter Alexander, Smiggles, two of the stars for the group. 104 00:05:12,180 --> 00:05:16,920 Steve Daghlian: And for many years now they've been expanding quite aggressively globally. 105 00:05:17,219 --> 00:05:19,320 Steve Daghlian: And we'll wait and see what happens with Premier, but 106 00:05:19,320 --> 00:05:22,050 Steve Daghlian: certainly a very positive response to that update. 107 00:05:22,559 --> 00:05:24,359 Sean Aylmer: Stay with me, Steve, we'll be back in a minute. 108 00:05:30,540 --> 00:05:34,080 Sean Aylmer: My guest this morning is CommSec market analyst, Steve Daghlian. 109 00:05:35,370 --> 00:05:37,558 Sean Aylmer: Okay, so moving away from retail, one of the ones 110 00:05:37,559 --> 00:05:39,808 Sean Aylmer: I liked, I'm not sure whether you had much of a look at it, 111 00:05:39,809 --> 00:05:41,729 Sean Aylmer: was IDP Education. 112 00:05:42,119 --> 00:05:45,510 Steve Daghlian: That was a really interesting one. You're right, the education group, 113 00:05:45,839 --> 00:05:48,690 Steve Daghlian: it rose in the order of 10% when it released 114 00:05:48,690 --> 00:05:52,589 Steve Daghlian: its results. And one of the reasons was a post- 115 00:05:52,589 --> 00:05:55,770 Steve Daghlian: COVID pickup in international students basically. That was a real 116 00:05:55,770 --> 00:05:59,819 Steve Daghlian: key driver. So 84,000 student placements over the year to 117 00:06:00,270 --> 00:06:05,100 Steve Daghlian: colleges and universities, 53% higher than a year earlier. Obviously 118 00:06:05,339 --> 00:06:09,240 Steve Daghlian: border closures and COVID and the fact that planes are grounded, 119 00:06:09,240 --> 00:06:11,999 Steve Daghlian: not going anywhere, makes it difficult for there to be 120 00:06:12,719 --> 00:06:16,829 Steve Daghlian: significant international student flows going around the place. So that's 121 00:06:16,830 --> 00:06:20,190 Steve Daghlian: getting to more normal levels now. But it also conducted 122 00:06:20,190 --> 00:06:23,970 Steve Daghlian: close to 2 million IELTS (International English Language Testing System) tests, that key English test 123 00:06:23,970 --> 00:06:29,250 Steve Daghlian: for non-native speakers, both students and for visa proficiency testing 124 00:06:29,250 --> 00:06:34,289 Steve Daghlian: as well. So they've had a 24% lift in revenue, a 40% 125 00:06:34,289 --> 00:06:37,530 Steve Daghlian: jump in profits and almost a 50% lift in dividends. So 126 00:06:37,560 --> 00:06:39,300 Steve Daghlian: very well received by investors. 127 00:06:39,839 --> 00:06:44,609 Sean Aylmer: And it's another couple which seem to have done okay. In the healthcare sector, CSL, which of course 128 00:06:44,610 --> 00:06:47,520 Sean Aylmer: is the third largest company in the country. And Cochlear 129 00:06:47,520 --> 00:06:48,419 Sean Aylmer: the hearing implant group. 130 00:06:49,170 --> 00:06:52,709 Steve Daghlian: Both actually responded quite well to their results. Having said 131 00:06:52,709 --> 00:06:54,930 Steve Daghlian: that, they've been some of the worst performers on the 132 00:06:54,930 --> 00:06:57,330 Steve Daghlian: market since the start of this year as a group. But 133 00:06:57,330 --> 00:07:00,510 Steve Daghlian: CSL, you're right, 4% high when it released its results. 134 00:07:00,960 --> 00:07:03,839 Steve Daghlian: Profits and the dividend came in a little ahead of 135 00:07:03,839 --> 00:07:08,400 Steve Daghlian: expectations. Sales up about 30%. One of the reasons why 136 00:07:08,549 --> 00:07:11,670 Steve Daghlian: it did okay was actually plasma collections. And this is 137 00:07:11,670 --> 00:07:13,679 Steve Daghlian: how it makes, of course, a pretty big chunk of 138 00:07:13,680 --> 00:07:16,710 Steve Daghlian: its money. It collects plasma from donors and then turns 139 00:07:16,710 --> 00:07:20,550 Steve Daghlian: that into its highest selling products for its business. And 140 00:07:20,580 --> 00:07:23,369 Steve Daghlian: during COVID costs were going through the roof. They had 141 00:07:23,370 --> 00:07:26,310 Steve Daghlian: to pay donors a lot to basically get their plasma. 142 00:07:26,549 --> 00:07:29,460 Steve Daghlian: Costs have been dropping back a little now. So 14% 143 00:07:29,760 --> 00:07:32,820 Steve Daghlian: lower over the year for their cost and about almost 144 00:07:32,820 --> 00:07:36,240 Steve Daghlian: 20% down from the peak that we saw back in 145 00:07:36,240 --> 00:07:37,140 Steve Daghlian: March last year. 146 00:07:38,070 --> 00:07:40,650 Sean Aylmer: So let's move on to the big miners and maybe 147 00:07:40,650 --> 00:07:43,349 Sean Aylmer: we'll just park Fortescue for the now because that's pretty 148 00:07:43,349 --> 00:07:45,449 Sean Aylmer: much pure iron ore, but Rio and BHP, which are 149 00:07:45,450 --> 00:07:48,780 Sean Aylmer: mostly, well, not mostly, large chunks of them are iron 150 00:07:48,780 --> 00:07:50,760 Sean Aylmer: ore, but they've got lots of other commodities as well, 151 00:07:50,910 --> 00:07:52,170 Sean Aylmer: how do you read their results? 152 00:07:52,830 --> 00:07:54,870 Steve Daghlian: Yeah, so you're right, Rio and B H P, I 153 00:07:54,870 --> 00:07:57,390 Steve Daghlian: mean they were interesting ones when they handed down their numbers. 154 00:07:57,570 --> 00:08:00,600 Steve Daghlian: Both of them actually saw declines in their share prices 155 00:08:00,660 --> 00:08:03,930 Steve Daghlian: on the day that they released their results. Now Rio 156 00:08:04,049 --> 00:08:08,100 Steve Daghlian: had a 10% drop in revenue, about a 40% fall in profits, 157 00:08:08,160 --> 00:08:10,739 Steve Daghlian: and the dividend fell by about a third. And in 158 00:08:10,740 --> 00:08:16,050 Steve Daghlian: BHP's case, 17% fall in revenue and a 58% fall in profits. 159 00:08:16,050 --> 00:08:20,130 Steve Daghlian: And all importantly as well, the dividend over the course 160 00:08:20,130 --> 00:08:22,469 Steve Daghlian: of the year was basically half what had paid a 161 00:08:22,469 --> 00:08:27,150 Steve Daghlian: year earlier. Now, the big reason, of course, lower commodity prices. 162 00:08:27,210 --> 00:08:29,730 Steve Daghlian: So we keep hearing in the media and we talk 163 00:08:29,730 --> 00:08:31,860 Steve Daghlian: about it all the time, that things in China have 164 00:08:31,860 --> 00:08:35,880 Steve Daghlian: been slowing down. Week after week, we're getting quite disappointing 165 00:08:35,880 --> 00:08:38,189 Steve Daghlian: updates on the state of its economy, that things are 166 00:08:38,730 --> 00:08:41,580 Steve Daghlian: slowing and it's not looking great, and the stimulus that they're 167 00:08:41,580 --> 00:08:44,819 Steve Daghlian: providing doesn't seem to really be enough to get investors 168 00:08:44,820 --> 00:08:48,210 Steve Daghlian: excited at the moment. Now having said that, so if 169 00:08:48,210 --> 00:08:51,510 Steve Daghlian: I'll just give you an example with BHP, iron ore 170 00:08:51,510 --> 00:08:55,770 Steve Daghlian: prices 18% lower. This is what was realised for the group, 171 00:08:55,920 --> 00:08:59,939 Steve Daghlian: what it actually earned. Coke and coal prices, so the coal, 172 00:08:59,940 --> 00:09:02,880 Steve Daghlian: of course used to make steel, 22% lower. And copper 173 00:09:02,880 --> 00:09:06,630 Steve Daghlian: was down 12%. So that's a real negative for the group, 174 00:09:06,690 --> 00:09:10,320 Steve Daghlian: and also for Rio, higher cost as well. So you 175 00:09:10,320 --> 00:09:12,630 Steve Daghlian: mentioned cost at the outset, and both of them kind 176 00:09:12,630 --> 00:09:16,170 Steve Daghlian: of are still flagging that costs are quite significant at 177 00:09:16,170 --> 00:09:16,560 Steve Daghlian: the moment. 178 00:09:17,160 --> 00:09:20,130 Sean Aylmer: I've got to ask you about WiseTech Global because this 179 00:09:20,670 --> 00:09:24,300 Sean Aylmer: logistics software company, it got hammered on the day it 180 00:09:24,300 --> 00:09:26,700 Sean Aylmer: came out. It then jumped the following day, and then 181 00:09:26,700 --> 00:09:29,338 Sean Aylmer: last Friday it was back down 4 or 5% I 182 00:09:29,340 --> 00:09:31,140 Sean Aylmer: think. What's happening? 183 00:09:31,620 --> 00:09:34,410 Steve Daghlian: Yeah, WiseTech, it did not do well. I mean it 184 00:09:34,410 --> 00:09:38,250 Steve Daghlian: fell 20% on the day that it released its results 185 00:09:38,340 --> 00:09:43,228 Steve Daghlian: and it actually had a 29% jump in revenue and a 9% lift 186 00:09:43,230 --> 00:09:46,949 Steve Daghlian: in profit. So face value that looked like a decent 187 00:09:46,950 --> 00:09:51,059 Steve Daghlian: improvement. The problem with WiseTech and also many of the 188 00:09:51,059 --> 00:09:54,720 Steve Daghlian: other tech stocks this reporting season, has actually been how 189 00:09:54,720 --> 00:09:56,578 Steve Daghlian: well they've done in the lead up to the reporting 190 00:09:56,580 --> 00:10:00,840 Steve Daghlian: season. So WiseTech was up something like 60% from January 191 00:10:00,840 --> 00:10:04,319 Steve Daghlian: to July, and it's pretty hard to impress investors when 192 00:10:04,320 --> 00:10:06,390 Steve Daghlian: you've done that. And I can mention a number of 193 00:10:06,630 --> 00:10:09,000 Steve Daghlian: tech stocks that have been in the same boat. It's 194 00:10:09,000 --> 00:10:11,458 Steve Daghlian: CargoWise Platform, which is used by some of the world's 195 00:10:11,458 --> 00:10:16,920 Steve Daghlian: largest logistics and delivery companies like DHL, UPS and FedEx. 196 00:10:18,059 --> 00:10:20,610 Steve Daghlian: That's actually been the driver of this result. But it 197 00:10:20,610 --> 00:10:23,250 Steve Daghlian: was a little shy of expectation and it did also 198 00:10:23,250 --> 00:10:25,920 Steve Daghlian: disappoint a little with its guidance or its outlook for 199 00:10:25,920 --> 00:10:29,250 Steve Daghlian: 2024. So those three things combined, the fact that it 200 00:10:29,250 --> 00:10:31,080 Steve Daghlian: did so well in the lead up, the fact that 201 00:10:31,080 --> 00:10:34,320 Steve Daghlian: guidance was a bit disappointing and below consensus for the 202 00:10:34,320 --> 00:10:36,900 Steve Daghlian: results for the past year, probably played a part in 203 00:10:36,900 --> 00:10:37,770 Steve Daghlian: how it responded. 204 00:10:38,400 --> 00:10:41,309 Sean Aylmer: The last couple, Steve Daghlian from CommSec that I need 205 00:10:41,309 --> 00:10:43,108 Sean Aylmer: to ask you about, and I'm very impressed that you've 206 00:10:43,110 --> 00:10:45,958 Sean Aylmer: got these numbers at the tip of your tongue. It's 207 00:10:45,960 --> 00:10:49,920 Sean Aylmer: very impressive. Woolies and Coles. The consumer staples, how do 208 00:10:49,920 --> 00:10:52,319 Sean Aylmer: we read their results? 209 00:10:52,679 --> 00:10:57,750 Steve Daghlian: Yeah, so both Woolies and Cole's, there were interesting responses. 210 00:10:57,750 --> 00:11:00,089 Steve Daghlian: Coles came out first with its numbers and it fell 211 00:11:00,090 --> 00:11:04,260 Steve Daghlian: about 7% when it released its results. Profits were largely flat. 212 00:11:04,260 --> 00:11:07,559 Steve Daghlian: Cost did increase though over the past six months. It's 213 00:11:07,559 --> 00:11:10,770 Steve Daghlian: been forking out more in wages. It said that margins 214 00:11:10,770 --> 00:11:14,010 Steve Daghlian: have been a bit lower. And Woolies, which came out 215 00:11:14,010 --> 00:11:18,240 Steve Daghlian: soon after, actually rose when it released its results, but 216 00:11:18,360 --> 00:11:21,089 Steve Daghlian: it had already fallen in response to how Coles did. 217 00:11:21,089 --> 00:11:24,419 Steve Daghlian: So that tends to happen. If one comes out earlier, 218 00:11:24,570 --> 00:11:28,530 Steve Daghlian: you see a similar response in the other major supermarket 219 00:11:28,530 --> 00:11:32,400 Steve Daghlian: chain. But look, Woolies warned of wage increases as well. 220 00:11:32,429 --> 00:11:35,968 Steve Daghlian: It warned of higher energy prices. And both actually warned 221 00:11:35,969 --> 00:11:39,030 Steve Daghlian: that they've noticed a lift in theft across their stores, 222 00:11:39,030 --> 00:11:41,399 Steve Daghlian: which is quite sad. But it perhaps is telling us 223 00:11:41,400 --> 00:11:43,890 Steve Daghlian: something about that people are struggling with the high cost 224 00:11:43,890 --> 00:11:46,890 Steve Daghlian: of living and all the rate hikes, which obviously don't 225 00:11:46,890 --> 00:11:50,130 Steve Daghlian: only impact the third of households that have mortgages, but 226 00:11:50,520 --> 00:11:52,440 Steve Daghlian: the third that are renting as well. Because rents have 227 00:11:52,440 --> 00:11:55,500 Steve Daghlian: been going higher and it's been tough for many. 228 00:11:55,980 --> 00:11:57,870 Sean Aylmer: Steve, thank you for talking to Fear and Greed. 229 00:11:58,379 --> 00:11:59,310 Steve Daghlian: My pleasure. Thank you. 230 00:11:59,879 --> 00:12:03,000 Sean Aylmer: That was CommSec Market analyst, Steven Daghlian. This is the 231 00:12:03,000 --> 00:12:05,578 Sean Aylmer: Fear and Greed Daily Interview. Remember, this information is general 232 00:12:05,580 --> 00:12:08,338 Sean Aylmer: in nature and you should seek professional advice before making 233 00:12:08,340 --> 00:12:11,399 Sean Aylmer: any investment decisions. CommSec's not a bad place to start I'd 234 00:12:11,400 --> 00:12:13,828 Sean Aylmer: suggest. Join us every morning for the full episode of 235 00:12:13,830 --> 00:12:16,919 Sean Aylmer: Fear and Greed, Australia's most popular business podcast. I'm Sean 236 00:12:17,010 --> 00:12:18,359 Sean Aylmer: Aylmer. Have a great day.