1 00:00:06,240 --> 00:00:09,640 Speaker 1: Today on Fear and Greed. New inflation figures show any 2 00:00:09,720 --> 00:00:13,200 Speaker 1: future rate cut is a long time away. The superannuation 3 00:00:13,320 --> 00:00:17,079 Speaker 1: industry hits four trillion dollars and a major breakthrough in 4 00:00:17,160 --> 00:00:20,880 Speaker 1: peace negotiations in the Middle East. Plus Jerry Harvey warns 5 00:00:20,920 --> 00:00:23,479 Speaker 1: on the economy, and we will tell you about a 6 00:00:23,520 --> 00:00:28,120 Speaker 1: delivery person who hid one hundred and thirty two million 7 00:00:28,400 --> 00:00:31,960 Speaker 1: US dollars from his employer. It's quite the story. Welcome 8 00:00:32,000 --> 00:00:34,360 Speaker 1: to Fear and Greed, Daily business news for people who 9 00:00:34,360 --> 00:00:36,880 Speaker 1: make their own decisions. It is Thursday, the twenty eighth 10 00:00:36,920 --> 00:00:39,879 Speaker 1: of November twenty twenty four. I'm Michael Thompson and good 11 00:00:39,920 --> 00:00:41,080 Speaker 1: morning Sean Ailmar. 12 00:00:41,240 --> 00:00:43,360 Speaker 2: Good morning, Michael, great story. 13 00:00:43,520 --> 00:00:45,440 Speaker 1: Oh to Cracker. It's coming up a bit later on 14 00:00:45,600 --> 00:00:48,839 Speaker 1: the main story though this morning, Sean. Underlying inflation in 15 00:00:48,880 --> 00:00:52,760 Speaker 1: Australia remains stubbornly high. It is well above the Reserve 16 00:00:52,840 --> 00:00:55,800 Speaker 1: banks preferred level, meaning rate cuts are off the agenda, 17 00:00:55,800 --> 00:00:57,880 Speaker 1: at least kind of for now for the time being. 18 00:00:58,200 --> 00:01:01,320 Speaker 2: Right so the trimmed mean inflation. The Reserve Bank's preferred 19 00:01:01,400 --> 00:01:05,240 Speaker 2: rate rose last month, not fell, rose from three point 20 00:01:05,280 --> 00:01:09,320 Speaker 2: two percent to three point five percent in October. Price 21 00:01:09,400 --> 00:01:13,360 Speaker 2: pressures are across a broad range of consumer goods and services, 22 00:01:13,360 --> 00:01:15,720 Speaker 2: at least they were last month. That's the bad news. 23 00:01:15,920 --> 00:01:18,960 Speaker 2: The headline inflation is actually low two point one percent 24 00:01:19,000 --> 00:01:22,360 Speaker 2: lower than expected. It reflects energy rebates federally and in 25 00:01:22,400 --> 00:01:26,039 Speaker 2: some states, but it actually artificially lowers the real state 26 00:01:26,080 --> 00:01:30,640 Speaker 2: of price rises. When those rebates end, headline inflation will 27 00:01:30,680 --> 00:01:34,160 Speaker 2: jump back much closer to underlying inflation. Underlying inflation, of course, 28 00:01:34,280 --> 00:01:36,559 Speaker 2: is what the Reserve Bank looks at. Households are bearing 29 00:01:36,560 --> 00:01:39,000 Speaker 2: the brunt of these price rises were rentser up sharply 30 00:01:39,040 --> 00:01:41,279 Speaker 2: over the past year due to tightness in the market. 31 00:01:41,600 --> 00:01:45,039 Speaker 2: Fruit and veg prices were also much higher. Underlying inflation 32 00:01:45,200 --> 00:01:47,319 Speaker 2: has now been above the two to three percent preferred 33 00:01:47,319 --> 00:01:52,280 Speaker 2: target range for three years. Why was supply constraints a 34 00:01:52,280 --> 00:01:55,000 Speaker 2: big part of that, But also there's this persistent demand 35 00:01:55,080 --> 00:01:58,600 Speaker 2: from the post pandemic spending taking long time to get 36 00:01:58,640 --> 00:02:01,120 Speaker 2: out of the market. There's all so the strong labor 37 00:02:01,160 --> 00:02:03,360 Speaker 2: market that's keeping pressure on prices. 38 00:02:03,560 --> 00:02:06,520 Speaker 1: Can I just ask you quickly Sean about underlying inflation 39 00:02:07,120 --> 00:02:09,520 Speaker 1: and kind of why those two figures are so far apart. 40 00:02:09,639 --> 00:02:12,920 Speaker 1: What underlying inflation does in terms of what it strips 41 00:02:13,000 --> 00:02:16,600 Speaker 1: out and why that's a more accurate measure of kind 42 00:02:16,600 --> 00:02:17,440 Speaker 1: of where we are at. 43 00:02:17,840 --> 00:02:20,360 Speaker 2: So there are a bunch of prices which are really volatile. Petrol, 44 00:02:20,480 --> 00:02:23,000 Speaker 2: energy are great examples. They go up and down, and 45 00:02:23,080 --> 00:02:25,680 Speaker 2: if you wanted to always include those in your economic 46 00:02:25,760 --> 00:02:30,160 Speaker 2: forecasts and economic policy making, then you know, one month 47 00:02:30,360 --> 00:02:32,440 Speaker 2: you'd be thinking got a cut rates, next month you 48 00:02:32,440 --> 00:02:34,880 Speaker 2: think you've got a lift rates. So they try and 49 00:02:34,960 --> 00:02:38,240 Speaker 2: take out the really volatile stuff and only look at 50 00:02:38,240 --> 00:02:41,160 Speaker 2: the stuff that is very core to what people are 51 00:02:41,200 --> 00:02:43,720 Speaker 2: spending their money on. And in the case of the 52 00:02:43,840 --> 00:02:46,600 Speaker 2: energy rebates which the federal government announced, also some states 53 00:02:46,639 --> 00:02:50,840 Speaker 2: like Queensland they're actually giving rebates as well. That's considered 54 00:02:50,840 --> 00:02:53,880 Speaker 2: not core. I mean, that's just sort of in addition, 55 00:02:53,960 --> 00:02:56,000 Speaker 2: it's part of the volatile aspect of it's the Reserve 56 00:02:56,040 --> 00:02:56,880 Speaker 2: Bank doesn't look at. 57 00:02:56,800 --> 00:03:00,120 Speaker 1: That, okay. So when you then look at the the 58 00:03:00,160 --> 00:03:04,720 Speaker 1: economic cycle, then it's looking increasingly likely that it's not 59 00:03:04,760 --> 00:03:07,240 Speaker 1: going to marry up with the political cycle, at least 60 00:03:07,280 --> 00:03:09,760 Speaker 1: at least if you're Prime Minister Anthony Albanesi and trying 61 00:03:09,800 --> 00:03:11,519 Speaker 1: to figure out when the election needs to be. 62 00:03:12,080 --> 00:03:14,320 Speaker 2: Very very true, the election is due by the middle 63 00:03:14,360 --> 00:03:18,440 Speaker 2: of May next year. Unlikely to be any interest rate 64 00:03:18,480 --> 00:03:21,480 Speaker 2: cuts between now and then. I'm sure that Anthony Albanesi 65 00:03:21,520 --> 00:03:23,120 Speaker 2: and the Labor Party will have loved to have seen 66 00:03:23,400 --> 00:03:26,400 Speaker 2: a rate cut before the next election. The Reserve Bank 67 00:03:26,400 --> 00:03:29,000 Speaker 2: has said at once two quarters of lower inflation before 68 00:03:29,040 --> 00:03:31,720 Speaker 2: moving on rates. Rates through at twelve year high as 69 00:03:31,720 --> 00:03:35,400 Speaker 2: we know that. Also, analysis in recent days by Deloitte 70 00:03:35,400 --> 00:03:38,280 Speaker 2: Access Economics has forecast a one hundred and forty nine 71 00:03:38,320 --> 00:03:41,000 Speaker 2: billion dollar budget deficit over the next four years and 72 00:03:41,040 --> 00:03:45,480 Speaker 2: what they call off budget deficits of another eighty seven 73 00:03:46,000 --> 00:03:48,680 Speaker 2: billion dollars. So what works close to two hundred and 74 00:03:48,720 --> 00:03:51,720 Speaker 2: thirty billion dollars on budget off budget over the next 75 00:03:51,840 --> 00:03:54,600 Speaker 2: four years. Now, these off budget things are stuff like 76 00:03:54,640 --> 00:03:56,840 Speaker 2: for giving Heck's debt so you don't carry it on 77 00:03:56,880 --> 00:04:00,120 Speaker 2: the balance sheet, but it is a real cost when 78 00:04:00,200 --> 00:04:03,320 Speaker 2: you have big budget deficits. That's not necessarily good for 79 00:04:03,440 --> 00:04:07,320 Speaker 2: government wanting to get re elected. Also, they keep interest 80 00:04:07,400 --> 00:04:11,720 Speaker 2: rates relatively higher than they would have been otherwise. Then, Michael, 81 00:04:11,760 --> 00:04:14,280 Speaker 2: there's the Trump factor. When he takes office in early January, 82 00:04:14,280 --> 00:04:16,760 Speaker 2: there could be a surgeon inflationary pressures globally if he 83 00:04:16,800 --> 00:04:21,520 Speaker 2: slaps the tariffs on imports into the US. Many economists, 84 00:04:21,560 --> 00:04:24,560 Speaker 2: including those at National Australia Being and Westpac, now forecasting 85 00:04:24,600 --> 00:04:27,600 Speaker 2: the next rate move, presumably downwards, to be the middle 86 00:04:27,640 --> 00:04:31,159 Speaker 2: of next year, probably after the election. As you said, 87 00:04:31,520 --> 00:04:34,120 Speaker 2: the economic and political cycles are not lining up for 88 00:04:34,160 --> 00:04:35,039 Speaker 2: Anthony Albanezi. 89 00:04:35,279 --> 00:04:37,520 Speaker 1: No, not looking too good now. Staying in the world 90 00:04:37,560 --> 00:04:41,479 Speaker 1: of economics, the value of housing construction SEAN hit a 91 00:04:41,600 --> 00:04:44,960 Speaker 1: three year high in the September quarter, in some good 92 00:04:45,000 --> 00:04:46,320 Speaker 1: news for the struggling sector. 93 00:04:46,600 --> 00:04:49,279 Speaker 2: That's right. The value of residential housing jump nearly two 94 00:04:49,279 --> 00:04:52,440 Speaker 2: percent to twenty three point four billion dollars. Haven't seen 95 00:04:52,600 --> 00:04:57,720 Speaker 2: that level of residential housing construction in about three years. 96 00:04:58,160 --> 00:04:59,960 Speaker 2: We last saw those sort of numbers when the governor 97 00:05:00,360 --> 00:05:03,040 Speaker 2: was making pandemic payments and that was supporting the sector. 98 00:05:03,200 --> 00:05:06,480 Speaker 2: There's also jumping construction engineering. It shows a boom in 99 00:05:06,520 --> 00:05:10,240 Speaker 2: federal and state infrastructure spending. On an annual basis. Building 100 00:05:10,279 --> 00:05:15,080 Speaker 2: activity has been concentrated in the non residential sector think infrastructure, 101 00:05:15,320 --> 00:05:18,600 Speaker 2: whereas dwelling construction new homes has been flat, even though 102 00:05:18,640 --> 00:05:21,880 Speaker 2: more houses are needed. It suggests the economic growth rate 103 00:05:21,920 --> 00:05:24,000 Speaker 2: for the September quarter will come in the low ones. 104 00:05:24,040 --> 00:05:25,919 Speaker 2: Now there's still a fair bit to feed into that number. 105 00:05:25,960 --> 00:05:27,880 Speaker 2: We get it later. We'll get it in a week's 106 00:05:27,880 --> 00:05:30,520 Speaker 2: time or so. This September quarter GDP, a bunch of 107 00:05:30,520 --> 00:05:32,719 Speaker 2: figures still go in that, but it suggests the economies 108 00:05:32,760 --> 00:05:35,600 Speaker 2: expanding at about one one and a half percent. 109 00:05:36,240 --> 00:05:39,680 Speaker 1: And finally, the local share market pushed back above eighty 110 00:05:39,760 --> 00:05:42,000 Speaker 1: four hundred points yesterday. Do you say eight thousand, four 111 00:05:42,040 --> 00:05:43,760 Speaker 1: hundred or eighty four hundred, I don't know. 112 00:05:43,839 --> 00:05:46,360 Speaker 2: I'm an eighty four hundred person total. 113 00:05:46,400 --> 00:05:48,400 Speaker 1: A well, we'll stick with that. It's hard, isn't it. 114 00:05:48,560 --> 00:05:51,200 Speaker 1: When I was thinking about this yesterday. Kind of when 115 00:05:51,240 --> 00:05:54,400 Speaker 1: you go from say print, as you did, into audio, 116 00:05:54,920 --> 00:05:56,720 Speaker 1: suddenly you've got to get used to a whole kind 117 00:05:56,760 --> 00:05:59,760 Speaker 1: of different way of operating, and suddenly you're dealing with 118 00:06:00,040 --> 00:06:04,360 Speaker 1: unciations in a podcast world, and goodness me, it's tough. 119 00:06:04,640 --> 00:06:06,919 Speaker 2: The hardest one for me, which you taught me, is 120 00:06:06,920 --> 00:06:10,680 Speaker 2: that audio is in the present tense and print is 121 00:06:10,720 --> 00:06:13,720 Speaker 2: in the past tense. Unless you're doing a feature than 122 00:06:13,800 --> 00:06:16,039 Speaker 2: in print it's in the present tense. But generally on 123 00:06:16,120 --> 00:06:18,479 Speaker 2: news it's past tense. Audio it's present tense. So I 124 00:06:18,480 --> 00:06:21,039 Speaker 2: am forever mixing my tenses up. So I'm so used 125 00:06:21,040 --> 00:06:23,440 Speaker 2: to past tense, but trying to do present tense. 126 00:06:23,720 --> 00:06:26,200 Speaker 1: You would think we are nearly five years now interfear 127 00:06:26,240 --> 00:06:26,640 Speaker 1: and greed. 128 00:06:27,240 --> 00:06:29,440 Speaker 2: Yeah, these are low learner, slow learner. 129 00:06:29,440 --> 00:06:32,000 Speaker 1: I think we're all slow learners. We are gradually adjusting 130 00:06:32,000 --> 00:06:35,240 Speaker 1: to this whole new world of podcasting. Back to markets, 131 00:06:35,279 --> 00:06:37,480 Speaker 1: though eighty four hundred points yesterday. 132 00:06:37,160 --> 00:06:39,520 Speaker 2: Yes the S and PASX two hundred closed of eighty 133 00:06:39,520 --> 00:06:42,880 Speaker 2: four zero seven points, up zero point six percent. Consumer 134 00:06:42,920 --> 00:06:46,039 Speaker 2: discretionary stocks led the way, although all said eleven sub 135 00:06:46,080 --> 00:06:49,359 Speaker 2: indices were higher. Commonwealth Bank had lost ground on Tuesday. 136 00:06:49,440 --> 00:06:51,520 Speaker 2: Yesterday it jumped more than one and a half percent. 137 00:06:51,680 --> 00:06:54,960 Speaker 2: Force Fu Metals Group, Goodman, Telstra, Aristocrat Leisure. They all 138 00:06:55,000 --> 00:06:57,600 Speaker 2: ended up more than one percent. The lag yards were 139 00:06:57,600 --> 00:07:01,000 Speaker 2: be amongst the large caps, at least BHP, Tinto, Woodside 140 00:07:01,040 --> 00:07:06,520 Speaker 2: and Macquarie. In the midst of AGM season, City Sheep Collective. 141 00:07:07,600 --> 00:07:10,560 Speaker 2: Try and say that three times really fast. You're going 142 00:07:10,560 --> 00:07:15,360 Speaker 2: to get yourself into trouble. Okay, yesterday, Oh try it. 143 00:07:15,480 --> 00:07:17,080 Speaker 1: I was like, you paused, and I'm like, do I 144 00:07:17,080 --> 00:07:19,560 Speaker 1: actually need to do this? It does feel like I'm 145 00:07:19,600 --> 00:07:23,120 Speaker 1: actually going I swear there are children listening to this podcast, so. 146 00:07:23,080 --> 00:07:23,760 Speaker 2: You're going to try it? 147 00:07:24,480 --> 00:07:27,360 Speaker 1: City sheet collective city sheet, collective city sheet collection. 148 00:07:27,400 --> 00:07:30,240 Speaker 2: I think I'm fine, well done well. It's share price 149 00:07:30,240 --> 00:07:32,320 Speaker 2: fell more than twenty five percent yesterday after the retailer 150 00:07:32,400 --> 00:07:36,320 Speaker 2: provided a training update and our w holdings held an AGM. 151 00:07:36,360 --> 00:07:40,280 Speaker 2: It's a resources and infrastructure contract services group. It recorded 152 00:07:40,320 --> 00:07:44,200 Speaker 2: a first strike against executive payments and HMC capital rally 153 00:07:44,240 --> 00:07:46,760 Speaker 2: two percent, and alfter the fund manager upgraded it's earnings 154 00:07:46,760 --> 00:07:47,160 Speaker 2: out Look. 155 00:07:47,320 --> 00:07:49,920 Speaker 1: All right, Sean, We've got plenty to come. We are 156 00:07:49,960 --> 00:07:53,560 Speaker 1: talking superannuation. We're talking lithium and travel stocks and how 157 00:07:53,600 --> 00:07:56,280 Speaker 1: an employee hit one hundred and thirty two million US dollars, 158 00:07:56,360 --> 00:07:57,880 Speaker 1: So much more to cover. We'll be back in a 159 00:07:57,880 --> 00:08:06,760 Speaker 1: moment with the rest of the day's business news. Sure 160 00:08:06,760 --> 00:08:09,640 Speaker 1: on the pot of gold that is. Superannuation in Australia 161 00:08:09,720 --> 00:08:13,840 Speaker 1: has climbed above four trillion dollars for the first time. 162 00:08:13,920 --> 00:08:16,280 Speaker 1: It just keeps on hitting milestones, doesn't it. 163 00:08:16,280 --> 00:08:20,200 Speaker 2: It sure does. The Australian Prudential Regulation Authority said total 164 00:08:20,240 --> 00:08:23,400 Speaker 2: assets raised by three point seven percent in the September 165 00:08:23,480 --> 00:08:27,920 Speaker 2: quarter to four point one trillion dollars. So why is 166 00:08:27,920 --> 00:08:31,240 Speaker 2: it jump so high. Well, remember the superannuation guarantee jumped 167 00:08:31,240 --> 00:08:33,520 Speaker 2: from eleven percent to eleven and a half percent on 168 00:08:33,640 --> 00:08:37,720 Speaker 2: July one. That certainly helped. Also strong market returns both 169 00:08:37,760 --> 00:08:40,640 Speaker 2: the AX and Wall Street are close to record levels 170 00:08:40,760 --> 00:08:44,120 Speaker 2: or at record levels. Hence you're seeing some benefits on 171 00:08:44,400 --> 00:08:47,200 Speaker 2: the return side of things. The self managed super fun 172 00:08:47,280 --> 00:08:52,160 Speaker 2: sector now counts for over one trillion dollars of super money, 173 00:08:52,480 --> 00:08:57,000 Speaker 2: about twenty five percent massive. For the quarter, net inflows 174 00:08:57,040 --> 00:08:59,160 Speaker 2: were one hundred and ninety one billion dollars, outflows for 175 00:08:59,160 --> 00:09:01,720 Speaker 2: one hundred and twenty billion dollars. A lot of industry, 176 00:09:01,880 --> 00:09:03,480 Speaker 2: a lot of pressure on the industry though, on the 177 00:09:03,480 --> 00:09:05,520 Speaker 2: back of links with the union movement how they actually 178 00:09:05,559 --> 00:09:08,520 Speaker 2: spend their money, particularly around marketing and performance of course, 179 00:09:09,000 --> 00:09:11,680 Speaker 2: but it's a sector that just keeps growing thanks to 180 00:09:11,720 --> 00:09:15,280 Speaker 2: that mandated super guarantee. Mind you, it's still well below 181 00:09:15,320 --> 00:09:17,160 Speaker 2: the value of the housing sector that one sits at 182 00:09:17,160 --> 00:09:18,600 Speaker 2: about eleven trillion dollars. 183 00:09:19,080 --> 00:09:22,720 Speaker 1: Sean Harvey Norman held it to AGM yesterday and chair 184 00:09:22,840 --> 00:09:26,080 Speaker 1: Jerry Harvey said Australia is heading into a great, big 185 00:09:26,200 --> 00:09:29,280 Speaker 1: black hole of government debt. Jerry Harvey has a way 186 00:09:29,320 --> 00:09:30,240 Speaker 1: with words doesn't. 187 00:09:30,040 --> 00:09:32,880 Speaker 2: He He sure it does. The veteran retailer said Australia 188 00:09:32,920 --> 00:09:35,600 Speaker 2: will be in a much worse position in five years time, 189 00:09:35,720 --> 00:09:39,280 Speaker 2: according to report in The Australian. He said, we can't 190 00:09:39,360 --> 00:09:41,840 Speaker 2: keep going as we are with rising costs for health, 191 00:09:42,120 --> 00:09:46,079 Speaker 2: n dis aged care and social services. He doesn't think 192 00:09:46,160 --> 00:09:49,040 Speaker 2: interest rates will be significantly lower for another twelve months 193 00:09:49,200 --> 00:09:52,480 Speaker 2: or so now. Over All, the Australian economy is doing okay, 194 00:09:52,760 --> 00:09:56,600 Speaker 2: he said. Same store sales from July to October we're 195 00:09:56,640 --> 00:09:58,920 Speaker 2: up one and a quarter percent or one point four 196 00:09:58,960 --> 00:10:02,280 Speaker 2: percent to be exact. He battered away suggestions that online 197 00:10:02,320 --> 00:10:05,679 Speaker 2: retailing was a threat. Harvey Norman are particularly strong in 198 00:10:05,800 --> 00:10:09,400 Speaker 2: large format home and lifestyle stores and communities, which they 199 00:10:09,440 --> 00:10:14,000 Speaker 2: said have supportive economy, strategic regional planning, and efficient transport 200 00:10:14,040 --> 00:10:17,520 Speaker 2: and logistics systems. Harvey Norman's share price closed up three 201 00:10:17,520 --> 00:10:20,520 Speaker 2: percent yesterday. It's up about eighteen percent for the year. 202 00:10:20,960 --> 00:10:24,920 Speaker 1: Rare earth company Linus yesterday warned of ongoing volatility and 203 00:10:24,920 --> 00:10:28,520 Speaker 1: commodity markets at its AGM. That share price closed up 204 00:10:28,559 --> 00:10:29,400 Speaker 1: just over one percent. 205 00:10:30,040 --> 00:10:34,360 Speaker 2: So Linus is from Western Australia. A mind from Western Australia. 206 00:10:34,400 --> 00:10:38,000 Speaker 2: It's the biggest rare earth producer outside China. It's a 207 00:10:38,000 --> 00:10:40,079 Speaker 2: bit different to the lithium companies in that mean. Rare 208 00:10:40,080 --> 00:10:42,520 Speaker 2: earth is obviously different to lithium, but it has seen 209 00:10:42,600 --> 00:10:45,360 Speaker 2: a lot of volatilian prices. Now in the lithium sector, 210 00:10:45,640 --> 00:10:49,200 Speaker 2: we've seen a lot of lower prices and they're struggling. 211 00:10:49,760 --> 00:10:54,520 Speaker 2: At Linus's AGM yesterday, the chair said that market voluntility 212 00:10:54,840 --> 00:10:58,000 Speaker 2: was contingent on what happens in China. There have been 213 00:10:58,000 --> 00:11:00,240 Speaker 2: big drops in rare earths used in products like air 214 00:11:00,240 --> 00:11:04,040 Speaker 2: conditioning units and aircraft engines. But the big one is 215 00:11:04,080 --> 00:11:07,439 Speaker 2: the slow down in electric vehicle sales. That's hit prices. 216 00:11:07,480 --> 00:11:09,720 Speaker 2: Not as bad as the lithium stocks, but certainly has 217 00:11:09,800 --> 00:11:11,520 Speaker 2: hurt rare earth producers. 218 00:11:11,800 --> 00:11:15,400 Speaker 1: Sean web Travel, which less than two months ago was 219 00:11:15,440 --> 00:11:18,240 Speaker 1: part of Webjet. It made a fifty two and a 220 00:11:18,320 --> 00:11:20,480 Speaker 1: half million dollar profit for the six months to the 221 00:11:20,559 --> 00:11:23,040 Speaker 1: end of September and the new sentence share price up 222 00:11:23,120 --> 00:11:24,959 Speaker 1: thirteen percent, the best on the day for the top 223 00:11:25,080 --> 00:11:25,800 Speaker 1: hundred stocks. 224 00:11:25,880 --> 00:11:31,000 Speaker 2: Now two months ago, web Travel emerged from Webjet. Web 225 00:11:31,080 --> 00:11:35,120 Speaker 2: Travel is part of webbeds is their main brand. Is 226 00:11:35,160 --> 00:11:39,080 Speaker 2: it B to B business? The Webjet business now is 227 00:11:39,120 --> 00:11:43,000 Speaker 2: a B two C business business, business to consumer business. 228 00:11:43,679 --> 00:11:47,320 Speaker 2: The web beds business is going really well. Stop looking 229 00:11:47,320 --> 00:11:49,760 Speaker 2: at me like that, Michael. I'm getting my webs and 230 00:11:49,800 --> 00:11:51,480 Speaker 2: beds mixed up all over the place. 231 00:11:51,640 --> 00:11:54,800 Speaker 1: It just it sounds like you're talking about like Spider 232 00:11:54,840 --> 00:11:57,400 Speaker 1: Man and where Spider Man would sleepy like web beeds, 233 00:11:57,520 --> 00:12:02,560 Speaker 1: webjet web Okay, all right, let's go, oh dear, it's 234 00:12:02,600 --> 00:12:03,920 Speaker 1: as bad as you and trying to get through a 235 00:12:03,960 --> 00:12:04,960 Speaker 1: city sheet collective. 236 00:12:05,240 --> 00:12:08,800 Speaker 2: That's it. That's it. The web beds business is going well. 237 00:12:08,840 --> 00:12:11,920 Speaker 2: Booking through up twenty two percent to four point three million. 238 00:12:11,960 --> 00:12:13,880 Speaker 2: That's for the six months to the end of September. 239 00:12:14,360 --> 00:12:18,200 Speaker 2: Growth is coming across different regions. They've upgraded the full 240 00:12:18,280 --> 00:12:21,839 Speaker 2: year results as well. They've also announced a one hundred 241 00:12:21,840 --> 00:12:25,000 Speaker 2: and fifty million dollar share buy back, hence the share 242 00:12:25,040 --> 00:12:26,640 Speaker 2: price jump thirteen percent yesterday. 243 00:12:27,120 --> 00:12:30,520 Speaker 1: New South Wales just managed to escape blackouts yesterday after 244 00:12:30,559 --> 00:12:34,760 Speaker 1: Sydney recorded its hottest November day since twenty twenty. 245 00:12:35,200 --> 00:12:37,360 Speaker 2: In the middle of the day, Premier Chris Mins called 246 00:12:37,360 --> 00:12:40,600 Speaker 2: on people to turn off pool pumps, dishwashers and air conditioners. 247 00:12:41,120 --> 00:12:45,200 Speaker 2: He wanted as little household use as possible between three 248 00:12:45,240 --> 00:12:49,320 Speaker 2: pm and eight pm as temps hit the high thirties 249 00:12:49,360 --> 00:12:52,960 Speaker 2: across the city. A surgeon consumption alongside outages that four 250 00:12:53,080 --> 00:12:56,520 Speaker 2: units along the East Coast means supply was very, very tight. 251 00:12:56,559 --> 00:13:00,560 Speaker 2: The Australiant Energy Market Operator said there was insufficient reserves 252 00:13:00,840 --> 00:13:05,240 Speaker 2: in terms of generation across the day. Now the AMO, 253 00:13:05,480 --> 00:13:10,240 Speaker 2: the operator ended up stepping in and using emergency powers 254 00:13:10,360 --> 00:13:16,560 Speaker 2: to force industry to keep demand stable, which helps with 255 00:13:16,679 --> 00:13:21,200 Speaker 2: supply and hopefully reduce demand if possible. It's more about 256 00:13:21,280 --> 00:13:25,640 Speaker 2: keeping demand stable than it is actually cutting demand in 257 00:13:25,679 --> 00:13:26,280 Speaker 2: that instance. 258 00:13:26,640 --> 00:13:30,200 Speaker 1: Okay. Turning to international news now, and Israeli and Lebanese 259 00:13:30,280 --> 00:13:33,480 Speaker 1: leaders have accepted a US broken to cease fire deal, 260 00:13:33,600 --> 00:13:36,440 Speaker 1: raising hopes shorn of an end to the year long 261 00:13:36,480 --> 00:13:39,959 Speaker 1: hostilities between Israel's forces and Hesbela. 262 00:13:40,120 --> 00:13:43,040 Speaker 2: It came into effect at four am Israel time. It's 263 00:13:43,720 --> 00:13:48,360 Speaker 2: about lunchtime yesterday Australian time. It occurred after was approved 264 00:13:48,360 --> 00:13:51,480 Speaker 2: by Israel's security cabinet in needed also to be approved 265 00:13:51,520 --> 00:13:54,800 Speaker 2: by Lebanon's caretaker government. US President Joe Biden to the 266 00:13:54,800 --> 00:13:57,960 Speaker 2: deal was designed to be a permanent cessation of hostilities. 267 00:13:58,000 --> 00:14:01,559 Speaker 2: Let's hope so Israeli defense forces will gradually withdraw from 268 00:14:01,640 --> 00:14:04,319 Speaker 2: Lebanon over a period of sixty days and be replaced 269 00:14:04,320 --> 00:14:07,600 Speaker 2: by the Lebanese Army. HEZBLA. The Lebanese militant group will 270 00:14:07,600 --> 00:14:11,040 Speaker 2: be banned from rebuilding its infrastructure in southern parts of 271 00:14:11,080 --> 00:14:15,439 Speaker 2: that country. Australia's Foreign Affairs Minister, Pennywong welcomed the announcement, 272 00:14:15,559 --> 00:14:18,600 Speaker 2: saying she hopes it's a catalyst for a broader ceasefire. 273 00:14:19,040 --> 00:14:22,400 Speaker 1: The news of the hes blast ceasefire helped international markets, 274 00:14:22,440 --> 00:14:22,760 Speaker 1: didn't it? 275 00:14:23,040 --> 00:14:25,800 Speaker 2: Sure did. Wall Street hit a new high. The S 276 00:14:25,840 --> 00:14:29,120 Speaker 2: and P five hundred managed for the fifty second time 277 00:14:29,200 --> 00:14:34,120 Speaker 2: this year to peak. Oil prices also eased back. Also 278 00:14:34,200 --> 00:14:36,240 Speaker 2: worth a mention, in the US, the minutes of the 279 00:14:36,240 --> 00:14:39,280 Speaker 2: Federal Reserve Board meeting were released. They showed that officials 280 00:14:39,320 --> 00:14:42,480 Speaker 2: were divided about how many more rate cuts are needed. 281 00:14:42,720 --> 00:14:45,920 Speaker 2: That news paired back expectations of another rate cut in 282 00:14:45,960 --> 00:14:47,360 Speaker 2: the world's biggest economy. 283 00:14:47,800 --> 00:14:50,160 Speaker 1: When you were talking on Monday on Fear and Greed 284 00:14:50,160 --> 00:14:54,480 Speaker 1: the week ahead to Stephen Coculus, our resident economist, you 285 00:14:54,600 --> 00:14:59,680 Speaker 1: were discussing the upcoming at that stage meeting of the 286 00:14:59,680 --> 00:15:02,400 Speaker 1: Reserve Bank of New Zealand and the potential for additional 287 00:15:02,440 --> 00:15:05,360 Speaker 1: rate cuts there and well, yesterday the Reserve Bank of 288 00:15:05,400 --> 00:15:09,600 Speaker 1: New Zealand cut its benchmark interest rate by fifty basis points. 289 00:15:09,640 --> 00:15:13,000 Speaker 1: That's another big cut, pushing the rate below Australia's cash rate. 290 00:15:13,360 --> 00:15:16,040 Speaker 2: So we're very comparable to New Zealand. Our cash rates 291 00:15:16,640 --> 00:15:18,920 Speaker 2: it is now at four point twenty five percent. We're 292 00:15:18,920 --> 00:15:21,080 Speaker 2: at four point three five percent. The Reserve Bank of 293 00:15:21,120 --> 00:15:25,040 Speaker 2: New Zealand has been aggressively cutting rates since August amid 294 00:15:25,080 --> 00:15:28,600 Speaker 2: a deterioration in the economy. Mind you, they were coming 295 00:15:28,600 --> 00:15:31,000 Speaker 2: off a much higher point than our local rates. It's 296 00:15:31,040 --> 00:15:33,920 Speaker 2: the third consecutive rate cut from the central bank over there. 297 00:15:34,240 --> 00:15:36,760 Speaker 2: Australia is now well and truly on the outer when 298 00:15:36,800 --> 00:15:40,760 Speaker 2: it comes to rate cuts. Think US, UK, Euro Canada, 299 00:15:40,840 --> 00:15:43,240 Speaker 2: New Zealand. They're all heading down. We ain't. 300 00:15:43,800 --> 00:15:47,200 Speaker 1: Finally, Sean, it is time to talk about this. This 301 00:15:47,280 --> 00:15:51,640 Speaker 1: is really quite a remarkable story. US retailer Macy's has 302 00:15:51,720 --> 00:15:55,440 Speaker 1: delayed the release of quarterly results after it reveals that 303 00:15:55,520 --> 00:15:59,680 Speaker 1: an employee had hidden but not stolen There's an important 304 00:15:59,680 --> 00:16:02,800 Speaker 1: to sction. They're hidden but not stolen at least one 305 00:16:02,920 --> 00:16:07,840 Speaker 1: hundred and thirty two million US dollars of expenses related 306 00:16:07,880 --> 00:16:11,240 Speaker 1: to customer deliveries over the past three years. 307 00:16:11,680 --> 00:16:15,840 Speaker 2: This is just odd. A loan employee, a loan employee 308 00:16:16,160 --> 00:16:21,680 Speaker 2: who had responsibility for small package delivery expense accounting had 309 00:16:21,720 --> 00:16:26,240 Speaker 2: an I quote intentionally made eriness accounting a cruel entries 310 00:16:26,880 --> 00:16:29,320 Speaker 2: quote to hide between one hundred and thirty two million 311 00:16:29,320 --> 00:16:32,440 Speaker 2: and one hundred and fifty four million US dollars of 312 00:16:32,560 --> 00:16:37,480 Speaker 2: cumulative expenses between late twenty twenty four and November, So 313 00:16:37,480 --> 00:16:41,320 Speaker 2: that's three years. Basically, Macy's owns its namesake chain of 314 00:16:41,360 --> 00:16:44,880 Speaker 2: department stores along with upmarker Bloomingdale's and the Blue Mercury 315 00:16:44,920 --> 00:16:47,840 Speaker 2: cosmetics chain, hasn't had a good time of it, with 316 00:16:47,920 --> 00:16:50,080 Speaker 2: its share price down twenty percent this year. Now, according 317 00:16:50,080 --> 00:16:53,160 Speaker 2: to the ft the Financial Times, Macy's didn't disclose the 318 00:16:53,240 --> 00:16:56,600 Speaker 2: name or alleged motives of the employee involved in hiding 319 00:16:56,600 --> 00:17:01,080 Speaker 2: the delivery expenses that said the person had left the company. Really, 320 00:17:01,240 --> 00:17:04,000 Speaker 2: what a surprise. The alleged amount concealed was a fraction 321 00:17:04,160 --> 00:17:07,040 Speaker 2: of these four point three six billion dollars in delivery 322 00:17:07,040 --> 00:17:11,400 Speaker 2: expenses that the company recognized during the period. Now I'm 323 00:17:11,600 --> 00:17:14,800 Speaker 2: totally speculating, but one thing that Macy's has been pushing 324 00:17:15,320 --> 00:17:18,440 Speaker 2: is its ability to reduce delivery costs, and so analysts 325 00:17:18,480 --> 00:17:21,200 Speaker 2: have quite liked the fact that Macy's have been really 326 00:17:21,680 --> 00:17:25,359 Speaker 2: tight on delivery costs. Well, I think we know why 327 00:17:26,240 --> 00:17:28,400 Speaker 2: after about one hundred and fifty two hundred and thirty 328 00:17:28,480 --> 00:17:33,520 Speaker 2: million dollars ossie one hundred and fifty ys not accounted for. 329 00:17:34,160 --> 00:17:37,840 Speaker 1: It is just an extraordinary story that one. Anyway, up 330 00:17:37,880 --> 00:17:40,479 Speaker 1: next Sean in the Fear and Greed Playlist is the 331 00:17:40,520 --> 00:17:43,640 Speaker 1: Property Pendulum, brought to you by Domain and Fear and Greed, 332 00:17:43,760 --> 00:17:47,359 Speaker 1: and today we are talking about trends in property, trends 333 00:17:47,400 --> 00:17:50,199 Speaker 1: in houses specifically, and the things that you need to 334 00:17:50,200 --> 00:17:51,800 Speaker 1: have in your house if you want to kind of 335 00:17:51,840 --> 00:17:54,080 Speaker 1: secure the best price and the things that you should 336 00:17:54,080 --> 00:17:56,280 Speaker 1: steer clear of as well, things that are either kind 337 00:17:56,320 --> 00:18:00,440 Speaker 1: of just old or or that are just too dar 338 00:18:00,640 --> 00:18:02,640 Speaker 1: niche that no one is going to want to buy 339 00:18:02,640 --> 00:18:05,159 Speaker 1: that place. So anyway, we discuss all of this in 340 00:18:05,200 --> 00:18:08,199 Speaker 1: the Property Pendulum. It is coming up next in the 341 00:18:08,240 --> 00:18:11,080 Speaker 1: Fear and Greed Playlist on your podcast platform or at 342 00:18:11,119 --> 00:18:13,720 Speaker 1: Fearangreed dot com dot are you thank you, Sean. 343 00:18:13,760 --> 00:18:14,439 Speaker 2: Thank you Michael. 344 00:18:14,840 --> 00:18:17,480 Speaker 1: It is Thursday, the twenty eighth of November twenty twenty four. 345 00:18:17,600 --> 00:18:19,840 Speaker 1: Make sure you're following the podcast and please join us 346 00:18:19,920 --> 00:18:24,800 Speaker 1: online on LinkedIn, Instagram, Facebook, TikTok and X. I'm Michael Thompson. 347 00:18:24,880 --> 00:18:25,720 Speaker 1: That was fear and greed. 348 00:18:25,960 --> 00:18:28,840 Speaker 2: Have a great day.