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Speaker 1: It's Wednesday, the twenty ninth of January twenty twenty five.

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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 in just five minutes. I'm Michael Thompson

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Speaker 1: and good morning Sean Aylmer.

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Speaker 2: Good morning Michael, Sean.

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Speaker 1: Five stories to get through in five minutes and story

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Speaker 1: number one as a whopper. The emergence of China based

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Speaker 1: Deep Seek has sent tech stocks around the globe tumbling,

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Speaker 1: with Leader and Video at one point losing close to

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Speaker 1: one trillion dollars in value. That is the biggest loss

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Speaker 1: in value terms ever by a company in just one session.

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Speaker 2: Deep Seak's AI Assistant is a chatbot to rival chat GPT.

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Speaker 2: It was the most downloaded app on Apple's iPhone store

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Speaker 2: on Monday. What's ged investors is that a China startup

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Speaker 2: has caught up with American cut with American companies at

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Speaker 2: a fraction of the cost. If that's the case, then

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Speaker 2: has the vast amounts of money US tech companies have

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Speaker 2: spent on data centers and chips and ai actually been

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Speaker 2: worth it. The Chinese haven't got a better chip or

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Speaker 2: a better chatbot. It's just a much, much cheaper one.

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Speaker 2: It's also open source, free to use, so other developers

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Speaker 2: can jump on board. Significantly, it uses Nvidio chips to

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Speaker 2: train the system, but not as many as rivals such

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Speaker 2: as chat GPT. They're not even the highest performing chips.

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Speaker 2: If true, the world may not need as many nvideo chips,

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Speaker 2: hence the big sell off. Yesterday, and Vidia released a

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Speaker 2: statement saying deep Seak's work was an excellent AI advancement.

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Speaker 2: How to wrap this up, It's kind of like the

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Speaker 2: equivalent of why by tesla when a BYD will do.

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Speaker 2: China isn't as far behind in the tech arms race

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Speaker 2: as the US thought.

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Speaker 1: So what's it mean then, sean for investment markets, that's

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Speaker 1: probably the big question.

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Speaker 2: Yeah, it's booked them. I mean it's a bit unclear

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Speaker 2: exactly how the veracity of some of these reports. Clearly

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Speaker 2: it hit N Video shares hard. China can create a

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Speaker 2: chat GPT equivalent at a much lower cost, and we're

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Speaker 2: talking about a six million US dollar cost as opposed

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Speaker 2: to hundreds of billions of dollars. What else can they do?

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Speaker 2: Are the big Wall Street tech companies really worth as

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Speaker 2: much as we thought? Do we need as many data centers?

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Speaker 2: Do we need as much energy as we thought? That

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Speaker 2: has a flows through to all sorts of sectors. Of course,

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Speaker 2: the magnificent text stocks are the big players in global investing.

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Speaker 2: Are they actually worth as much as we thought they were?

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Speaker 2: That's what we still got to find out.

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Speaker 1: Okay, moving on to story number two. Now, Sean, it

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Speaker 1: is a big, big day today, I day, I suppose

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Speaker 1: we'll call it. With inflation figures due for release at

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Speaker 1: eleven thirty am. What are markets predicting will actually happen?

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Speaker 2: Well? The three year bond rate, which shows expectations of

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Speaker 2: interest rates on average over the next three years, hit

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Speaker 2: its lowest point in six weeks yesterday three point eight

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Speaker 2: two percent. In fact, bond markets reckon there's a sixty

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Speaker 2: eight percent chance of a rate cut next month, one

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Speaker 2: hundred percent chance by the end of April. The shock

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Speaker 2: in the tech stocks that I've just talked about, that's

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Speaker 2: kind of helping this argument that the Reserve Bank needs

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Speaker 2: to cut rates. The figures are out late this morning.

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Speaker 2: If we get half, if you get zero point five

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Speaker 2: percent quarterly underlying reading, well, a rate cut is on

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Speaker 2: point seven percent. Rate cuts off zero point six percent.

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Speaker 2: Well depends how you ask.

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Speaker 1: All right, story number three, The AFL sean would significantly

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Speaker 1: increase the amount of money it takes from wagering on

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Speaker 1: the sport under a proposal that its administrators have put

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Speaker 1: to the country's big bookmakers.

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Speaker 2: The AFL is negotiating with major gambling companies, including tab

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Speaker 2: Corps sports bet Entain on a deal that wouldn't allow

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Speaker 2: them to keep offering sports betting products in exchange for

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Speaker 2: giving the sport a cut of the proceeds. According to

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Speaker 2: report in The fin Review, they're known as product fees.

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Speaker 2: It's pretty common across sports and bookmakers around the world.

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Speaker 2: The Australian Rugby League has an agreement so to the

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Speaker 2: A League the Australian Open Tennis. Now, the AFL makes

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Speaker 2: up to forty million dollars in product fees from bookmakers

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Speaker 2: every year, but it only gets point nine percent, not

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Speaker 2: one point five percent of turnover. What's a turnover, Well,

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Speaker 2: that's actually the book maker's turnover or total revenue. So

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Speaker 2: it wants to go from point nine to one point five.

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Speaker 2: At the moment, forty million NURL receives fifty million. Will

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Speaker 2: keep an eye on this story.

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Speaker 1: Indeed, we will. Story number four. Japan's Honda Motor Company

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Speaker 1: has set a target of capturing fifty percent of the

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Speaker 1: world's motorcycle market by twenty thirty. That's a lofty goal.

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Speaker 2: It certainly is. They say sixty million units will be

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Speaker 2: sold by twenty thirty. That's electric and petrol. Currently, Honda

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Speaker 2: sells about twenty million a year, which is about forty

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Speaker 2: percent of the market. Wants to get to fifty percent

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Speaker 2: of the market. Their focus is on India, Indonesia, Philippines, Brazil.

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Speaker 2: It hopes to have thirty E models globally by twenty thirty.

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Speaker 2: It wants to sell four million e bikes. Not a

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Speaker 2: motorbike rider myself, but I reckon half the fun of

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Speaker 2: a motorbike is the noise. I don't think an E

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Speaker 2: bike's going to give.

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Speaker 1: Me that, you know, looking for a hum there, Sean,

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Speaker 1: just no, no ray not The story number five is

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Speaker 1: an early contender for my favorite story of the week.

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Speaker 1: Sean a prototype of a passenger jet meant to succeed.

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Speaker 1: The concord was due to attempt to break the sound

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Speaker 1: barrier for the first time overnight. That's more than one

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Speaker 1: two hundred and forty kilometers per hour. That is quick.

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Speaker 2: Boom is the company. It's supersonic XB one demonstrator was

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Speaker 2: due to exceed the barrier in a series of four

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Speaker 2: minute runs above the Mahave Desert in California. The US

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Speaker 2: firm hopes it will pave the way for the introduction

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Speaker 2: of passenger services early next decade. According to the Telegraph

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Speaker 2: of London, what I thought was pretty cool. Michael Boom's

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Speaker 2: jet was flying in the same airspace where Chuck Jaeger

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Speaker 2: became the first person to exceed the speed of sound

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Speaker 2: back in nineteen forty seven. Last Night's plane is one

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Speaker 2: third size of Boom's potential passenger jet, which when manufactured,

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Speaker 2: will carry about sixty five passengers, cost around four hundred

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Speaker 2: million dollars and get people from point A to B

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Speaker 2: very very quickly.

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Speaker 1: That is a great story that one sean. There we

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Speaker 1: go the top five business stories in five minutes.

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Speaker 2: Thank you very much, Thank you, Michael.

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Speaker 1: It is Wednesday, the twenty ninth of January twenty twenty five.

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Speaker 1: Remember to hit follow on the podcast, and if five

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

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Speaker 1: called Fear and Greed wherever you listen to podcasts. I'm

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Speaker 1: Michael Thompson and that was the Fast five Business Sneeze

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Speaker 1: by Fear and Great. Have a great day.