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Speaker 1: It's Wednesday, the twenty first of August twenty twenty four.

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Speaker 1: Welcome to the Fast five Business News by Fear and Greed,

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Speaker 1: where we give you the top five business stories you

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Speaker 1: need to know into five minutes. A'm Michael Thompson. And

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Speaker 1: good morning Sean Aylmer.

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Speaker 2: Good morning, Michael Shawn.

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Speaker 1: Five big stories to get through in five minutes. Story

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Speaker 1: number one, a forecast pickup in economic growth has increased

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Speaker 1: the risk that inflation could become entrenched, meaning that interest

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Speaker 1: rates will need to stay higher for longer. These are

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Speaker 1: all some of the insights that came out of the

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Speaker 1: minutes of the Reserve Bank's latest board meeting.

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Speaker 2: Yes The minutes were released yesterday. They say the Central

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Speaker 2: Bank Board considered lifting the cash rate to four point

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Speaker 2: six percent from four point three five percent at its

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Speaker 2: August five to six meeting, fearing the economy was still

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Speaker 2: too hot and inflation is no longer falling as rapidly

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Speaker 2: as before. And let's said, the minutes show that the

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Speaker 2: Reserve Bank is even more concerned about higher inflation than

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Speaker 2: previously thought. While the Reserve Bank Board ultimately kept the

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Speaker 2: cash rate on hold, the minutes show the board judge

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Speaker 2: this would only be possible if the Central Bank committed

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Speaker 2: to keeping higher interest rates in place until next year. Now.

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Speaker 2: After that decision, in a press conference, Governor Michelle Bullock

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Speaker 2: made it very clear that rates weren't going to change

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Speaker 2: anytime soon, and not this year at all. That was

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Speaker 2: in contrast to what most bond investors had thought. The

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Speaker 2: Reserve Bank set was concerned about the enduring strength of

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Speaker 2: the economy and a looming increase in economic growth, which

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Speaker 2: is expected to hit an annual rate of two point

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Speaker 2: six percent by the middle of next year, up from

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Speaker 2: just one point one percent right now.

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Speaker 1: Michael sean, So, just explain this. Assuming we knew the

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Speaker 1: Reserve Bank was serious about inflation, They've talked about it

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Speaker 1: a lot, but the Minute suggests that they are really serious,

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Speaker 1: or even perhaps worried that not enough has been done

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Speaker 1: to push the pace of price rises lower.

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Speaker 2: Yeah, a few things came out of yesterday. In the

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Speaker 2: past few days, while household spending has eased sharply since

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Speaker 2: the Reserve Bank started raising rates, the bank is a

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Speaker 2: little bit worried about what the Stage three tax cuts

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Speaker 2: will do to spending, ie might push it too fast. Also,

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Speaker 2: the Reserve Bank isn't sure what's going on. The Minutes

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Speaker 2: yesterday used the word uncertain thirteen times, and the boys

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Speaker 2: stress that decisions will evolve in line with data. Also,

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Speaker 2: the post Board meeting announcement two weeks ago triggered a

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Speaker 2: bit of a fuell between the Central Bank and the

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Speaker 2: government about too much government spending. Michelle Bullock, the Governor,

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Speaker 2: has pulled back from that somewhat. Just one sign that

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Speaker 2: people are a bit worried. The Aussie dollar is training

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Speaker 2: back above sixty seven US since apart from beef pads

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Speaker 2: in July and around Christmas, the currency hasn't been at

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Speaker 2: that level in a couple of years. That suggests that

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Speaker 2: rates in Australia are going to be relatively high compared

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Speaker 2: to other economies.

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Speaker 1: Okay, moving on to story number two. In our Australia

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Speaker 1: and Indonesian troops will be able to operate from each

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Speaker 1: other's countries under a new defense cooperation pack that's been

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Speaker 1: billed as the most significant agreement ever to be reached

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Speaker 1: between the two neighbors.

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Speaker 2: The treaty level agreement finalized between Indonesia's President elect Probao

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Speaker 2: Subianto and Defense Minister Richard Miles, will allow some reciprocal

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Speaker 2: access by each country to the other's military facilities, delivering

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Speaker 2: unprecedented joint training opportunities. Prabao hoiled the very good agreement

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Speaker 2: has urged Australia to further bolster support for his nation's

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Speaker 2: economic security, help it develop its agricultural sector and fight

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Speaker 2: Indonesia's serious problem with drugs and narcotics. Prime Minister Anthony Albernezi,

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Speaker 2: who hosted the soon to be counterparted a meeting with

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Speaker 2: senior Australian ministers, said the agreement was a breakthrough in

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Speaker 2: the nation's bilateral relationship.

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Speaker 1: Story Number three Shawn Vicinity, which owned shopping centers including

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Speaker 1: Chadstone in Melbourne QBB in Sydney, said occupancy rates are

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Speaker 1: back to their highest level since before the pandemic.

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Speaker 2: It is good news and comes despite slowing sales amid

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Speaker 2: the cost of leading crisis. The group's statutory profit more

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Speaker 2: than double. The share price ended up one percent. Chief

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Speaker 2: Executive Peter Huddle said Vicinity was writing longer leasing deals,

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Speaker 2: averaging three point six years now up from three point

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Speaker 2: three years. Capitalization rates would like investment yields. They're showing

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Speaker 2: science of stabilizing leasing activity has lifted occupant across Vicinity's

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Speaker 2: fifty seven assets to ninety nine point three percent. That's

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Speaker 2: the highest level before the pandemic. In some of the

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Speaker 2: big CBD malls and Pooring and Melbourne, Sydney's Queen Victoria Building,

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Speaker 2: it's ninety nine point six percent, which is actually higher

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Speaker 2: than pre pandemic.

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Speaker 1: Story number four Shawn the big news Internationally. US President

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Speaker 1: Joe Biden defended his legacy yesterday in a lengthy valedictory

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Speaker 1: speech to the Democratic Convention, saying that his presidency reunited

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Speaker 1: the country after the divisiveness of the Trump years.

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Speaker 2: Biden called on the convention to support Carmala Harris as

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Speaker 2: his successor, saying choosing her as his vice president was

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Speaker 2: the best decision I made in my whole career. Mister

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Speaker 2: Biden argued he had set the country on a solid

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Speaker 2: economic course and touted foreign policy successes, especially the expansion

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Speaker 2: of NATO and helped for Ukraine against Russia's invasions. His

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Speaker 2: remarks came shortly after Miss Harris made a surprise appearance

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Speaker 2: at the convention hailing Biden's lifetime of service. Now, mister

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Speaker 2: Biden was due to fly out of Chicago after his

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Speaker 2: speech skip the rest of the convention. It will culminate

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Speaker 2: on Thursday with Miss Harris's formal nomination on The Big

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Speaker 2: name speakers in the next few days include Barack Obama,

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Speaker 2: Bill Clinton, and Harris's running mate, Minnesota Governor Tim Walls.

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Speaker 1: Last one Storry number five, higher interest rates and the

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Speaker 1: cost of living crisis is hitting one attractive but perhaps

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Speaker 1: a tad expensive hobby vintage car collection, Sean.

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Speaker 2: Unbeknownst to me, we're in the middle of vintage auction

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Speaker 2: season in the US and for the weekend and Saturday

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Speaker 2: auction sales for down eight percent from last year, but

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Speaker 2: way below the bumper twenty twenty two year. According to Haggarty, Inc.

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Speaker 2: Half of the vehicles failed to realize their low price estimate.

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Speaker 2: Not helping is a large number of vintage cars in

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Speaker 2: the market at the moment. The good news is that

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Speaker 2: after auction deals are pushing final sales higher. According to

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Speaker 2: report on Bloomberg, of the top ten sales last week,

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Speaker 2: six were Ferraris. The top seller among five auction houses

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Speaker 2: was a nineteen to sixty Ferrari to fifty Spider when

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Speaker 2: for seventeen million dollars. Next best it was a nineteen

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Speaker 2: thirty eight Ouflo know it had been stolen and recovered.

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Speaker 2: It went for fourteen million dollars.

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Speaker 1: Great story. There we go the top five business stories

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Speaker 1: in five minutes.

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Speaker 2: Thank you Sean, Thank you Michael.

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Speaker 1: It is Wednesday, the twenty first of August twenty twenty four.

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Speaker 1: Remembered to hit follow on the podcast. If five minutes

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Speaker 1: isn't enough, you can find our longer daily show called

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Speaker 1: Fear and Greed wherever you listen to podcasts, and don't

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Speaker 1: forget to check out as well the new episode of

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Speaker 1: How Do They Afford That, our sister podcast out every Wednesday.

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Speaker 1: Today's episode is six side hustles you may not have considered.

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Speaker 1: I'll put a link in today's show notes. I'm Michael

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Speaker 1: Thompson and that was the past five business news by

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Speaker 1: Fear and Greed. Have a great day.