1 00:00:03,880 --> 00:00:07,040 Speaker 1: It's Thursday, the twelfth of February twenty twenty six. Welcome 2 00:00:07,080 --> 00:00:09,399 Speaker 1: to the Fast five Business News by Fear and Greed, 3 00:00:09,440 --> 00:00:11,240 Speaker 1: where we give you the top five business stories you 4 00:00:11,280 --> 00:00:13,520 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:13,560 --> 00:00:14,920 Speaker 1: and good morning Sean Aylmer. 6 00:00:15,240 --> 00:00:17,040 Speaker 2: Morning Michael, Sean. 7 00:00:17,200 --> 00:00:19,400 Speaker 1: Five stories in five minutes. But first, a little bit 8 00:00:19,440 --> 00:00:22,800 Speaker 1: of homework. If you are listening to this podcast on Spotify, 9 00:00:22,880 --> 00:00:24,640 Speaker 1: there's a very good chance you're listening through the your 10 00:00:24,720 --> 00:00:28,280 Speaker 1: daily drive playlist. That playlist will cease to exist very soon, 11 00:00:28,360 --> 00:00:30,640 Speaker 1: so it may get harder to find the Fast five. 12 00:00:31,000 --> 00:00:34,760 Speaker 1: So please hit follow on the podcast today so that 13 00:00:34,840 --> 00:00:37,600 Speaker 1: you can continue to get your five stories in five minutes. 14 00:00:37,880 --> 00:00:41,199 Speaker 1: Let's go story number one, record growth in loans and 15 00:00:41,240 --> 00:00:44,800 Speaker 1: deposits as push Comwell's banks half year profit sewan to 16 00:00:44,960 --> 00:00:48,080 Speaker 1: five point four billion dollars and that triggered a seven 17 00:00:48,159 --> 00:00:50,320 Speaker 1: percent jump in at share price yesterday. 18 00:00:50,760 --> 00:00:54,400 Speaker 2: Yeah, best day since twenty twenty for the shares really 19 00:00:54,520 --> 00:00:56,240 Speaker 2: recover a lot of ground at lost in the final 20 00:00:56,280 --> 00:00:59,040 Speaker 2: six months of twenty twenty five. Once again the largest 21 00:00:59,040 --> 00:01:00,880 Speaker 2: company on the balls ten percent and bigger than BHP 22 00:01:01,040 --> 00:01:04,080 Speaker 2: number two. The other big four banks, so that's Westpac, National, 23 00:01:04,120 --> 00:01:07,160 Speaker 2: Australian Bank and amz Or benefit yesterday as well. Basically 24 00:01:07,200 --> 00:01:10,119 Speaker 2: the country's biggest bank grew its share in business landing, 25 00:01:10,160 --> 00:01:13,720 Speaker 2: including small businesses more credit cards, did well in deposits, 26 00:01:14,040 --> 00:01:17,160 Speaker 2: kept its share of the home lending market. Main negative 27 00:01:17,319 --> 00:01:21,200 Speaker 2: Michael profit margins were squeezed something called the net interest margin. 28 00:01:21,240 --> 00:01:24,000 Speaker 2: That's difference between what the Commonwealth Bank pays out and 29 00:01:24,000 --> 00:01:27,959 Speaker 2: deposits receives on loans. That actually shrunk just a little bit. 30 00:01:28,880 --> 00:01:31,920 Speaker 1: The results are interesting, But what I find fascinating, Sean, 31 00:01:32,160 --> 00:01:34,720 Speaker 1: is the fact that Commonwealth Bank is tapped into really 32 00:01:34,720 --> 00:01:38,119 Speaker 1: what Australians are spending, what we're borrowing, how the economy 33 00:01:38,200 --> 00:01:41,320 Speaker 1: is faring. Commonwealth Bank boss Matt Common was out and 34 00:01:41,360 --> 00:01:43,840 Speaker 1: about yesterday. What did he have to say, Well, he's 35 00:01:43,920 --> 00:01:46,880 Speaker 1: very upbeat on the economy. He said, people across all 36 00:01:46,920 --> 00:01:51,560 Speaker 1: ages are spending more on discretionary items younger people sorry, 37 00:01:51,560 --> 00:01:55,080 Speaker 1: on stable items, you know, supermarket food, that type of stuff. 38 00:01:55,400 --> 00:01:58,560 Speaker 1: Younger people are spending more on discretionary item that's really 39 00:01:58,560 --> 00:01:58,960 Speaker 1: good news. 40 00:01:59,080 --> 00:02:01,360 Speaker 2: Credit quality remains good. He's not going to have to 41 00:02:01,520 --> 00:02:04,440 Speaker 2: set aside too much more for bad loans. Or anything 42 00:02:04,480 --> 00:02:07,120 Speaker 2: like that. The bad news for mortgage holders at least 43 00:02:07,320 --> 00:02:09,720 Speaker 2: when you have an economy like that coming up against 44 00:02:09,760 --> 00:02:13,440 Speaker 2: capacity constraints, well, that's going to push inflation up. Matt 45 00:02:13,440 --> 00:02:15,799 Speaker 2: Common reckons two more interest rate rises this year. 46 00:02:16,200 --> 00:02:19,160 Speaker 1: Ouch okay, on to story number two, and obviously Comwealth 47 00:02:19,160 --> 00:02:22,280 Speaker 1: Bank was having a pretty good time yesterday CSL Sean 48 00:02:22,639 --> 00:02:24,799 Speaker 1: was not. Its share price tumbled what five and a 49 00:02:24,840 --> 00:02:28,120 Speaker 1: half percent after announcing a pretty poor half year result, 50 00:02:28,400 --> 00:02:30,480 Speaker 1: a result that was actually so bad that it led 51 00:02:30,520 --> 00:02:32,680 Speaker 1: to the downfall of CEO Paul McKenzie. 52 00:02:32,919 --> 00:02:35,040 Speaker 2: Yeah, so we found m We found out McKenzie went 53 00:02:35,080 --> 00:02:39,040 Speaker 2: on Tuesday night yesterday, we found out why. It says 54 00:02:39,080 --> 00:02:41,560 Speaker 2: so one of the bluest of blue chip companies. It's 55 00:02:41,600 --> 00:02:44,040 Speaker 2: had a horror few years. It's going to write down 56 00:02:44,040 --> 00:02:46,919 Speaker 2: the value of two of its businesses by one point 57 00:02:46,919 --> 00:02:49,919 Speaker 2: six billion dollars. It's vaccine's business in the US really 58 00:02:50,000 --> 00:02:54,560 Speaker 2: hurt by changes in the Trump administration, the anti vaxx movement. There. 59 00:02:54,680 --> 00:02:57,320 Speaker 2: The other one a group called CSL Viifer it's about 60 00:02:57,440 --> 00:03:00,280 Speaker 2: inn deficiency products. Well, it bought that business, it's not 61 00:03:00,320 --> 00:03:01,720 Speaker 2: that long ago, three and a half years ago for 62 00:03:01,800 --> 00:03:04,800 Speaker 2: nine billion dollars. It hasn't failed, but it hasn't worked either, 63 00:03:04,840 --> 00:03:07,760 Speaker 2: and so they're writing off money. Investors are not happy 64 00:03:07,800 --> 00:03:10,480 Speaker 2: about that. In December, the half year profit or the 65 00:03:10,520 --> 00:03:14,600 Speaker 2: December half year profit fell by eighty one percent. McKenzie 66 00:03:14,680 --> 00:03:18,160 Speaker 2: was let go because basically, the chair said investors had 67 00:03:18,160 --> 00:03:18,639 Speaker 2: had enough. 68 00:03:18,880 --> 00:03:22,440 Speaker 1: Story number four Shawn Conservative Liberal Party MP and Shadow 69 00:03:22,480 --> 00:03:25,360 Speaker 1: Defense Minutter Angus Taylor last night quit the front bench 70 00:03:25,440 --> 00:03:27,760 Speaker 1: and is now set to challenge Susan Lee for the 71 00:03:27,800 --> 00:03:28,280 Speaker 1: top job. 72 00:03:28,440 --> 00:03:30,679 Speaker 2: He said the opposition was in its worst position since 73 00:03:30,720 --> 00:03:33,119 Speaker 2: nineteen forty four and he did not believe Lee could 74 00:03:33,160 --> 00:03:35,640 Speaker 2: turn things around. Taylor said his supporters would also quit 75 00:03:35,720 --> 00:03:38,120 Speaker 2: the front bench. He met Lee at about seven pm 76 00:03:38,200 --> 00:03:40,360 Speaker 2: last night informed her of his decision to quit the 77 00:03:40,360 --> 00:03:42,960 Speaker 2: front bench. Taylor's back has told media outlets he had 78 00:03:42,960 --> 00:03:46,640 Speaker 2: the numbers to topple Lee. That wasn't clear exactly when 79 00:03:46,680 --> 00:03:51,160 Speaker 2: the challenge will come. While Senate Estimates is holding hearings, 80 00:03:51,360 --> 00:03:53,840 Speaker 2: the Senate isn't sitting, so not all senators in CANBA. 81 00:03:53,840 --> 00:03:55,920 Speaker 2: It's a bit of a logistical issue for them. 82 00:03:56,160 --> 00:03:59,680 Speaker 1: Yeah, i'd say so. Story number four Israeli President Isaac 83 00:03:59,720 --> 00:04:03,720 Speaker 1: Hurtz was in Canberray yesterday, meeting with Prime Minister Anthony 84 00:04:03,760 --> 00:04:07,240 Speaker 1: Albanezi and also with Opposition leader Susan Lee. Albanezi welcomed 85 00:04:07,240 --> 00:04:10,120 Speaker 1: his presence as a I quote comfort to the Jewish 86 00:04:10,160 --> 00:04:14,160 Speaker 1: Australian community that is grieving after the antisubmitic attack at 87 00:04:14,200 --> 00:04:14,840 Speaker 1: Bondo Beach. 88 00:04:15,080 --> 00:04:17,200 Speaker 2: That's right. It's a very busy day in Cambery. Yesterday 89 00:04:17,279 --> 00:04:20,600 Speaker 2: emerged in centate estimates that the government's about eighty thousand 90 00:04:20,640 --> 00:04:24,120 Speaker 2: homes behind in its target of two million new homes 91 00:04:24,160 --> 00:04:26,640 Speaker 2: over five years. That's obviously to solve the housing crisis. 92 00:04:26,680 --> 00:04:29,240 Speaker 2: Eighty thousand after little more than a year, that's a 93 00:04:29,240 --> 00:04:31,719 Speaker 2: long way behind the run rate. We also had Jim 94 00:04:31,760 --> 00:04:35,200 Speaker 2: at Chalmers, the Treasurer, having go at Angus Taylor, his 95 00:04:35,320 --> 00:04:39,000 Speaker 2: opposite number, basically taunting him asking when he's going to 96 00:04:39,040 --> 00:04:41,920 Speaker 2: have a bid for Susan Lee's leadership. All sorts of 97 00:04:42,000 --> 00:04:44,960 Speaker 2: rumors yesterday that the front bench would quit en Mass 98 00:04:45,200 --> 00:04:49,000 Speaker 2: including Taylor, and take on Susan Lee. 99 00:04:49,560 --> 00:04:52,000 Speaker 1: Last one story number five and Sean this is a 100 00:04:52,040 --> 00:04:54,839 Speaker 1: story really to prove that not all high flying AI 101 00:04:54,960 --> 00:04:57,760 Speaker 1: companies have to be making data centers or micro chips. 102 00:04:58,360 --> 00:05:01,480 Speaker 1: The share price of wall St it listed Corning, which 103 00:05:01,520 --> 00:05:04,080 Speaker 1: is famous for pire X. Yes, I know in the 104 00:05:04,160 --> 00:05:06,800 Speaker 1: nineteen seventies, but you show me a single Australian kitchen 105 00:05:06,880 --> 00:05:08,680 Speaker 1: that does not have a Pyrex dish or it is 106 00:05:08,720 --> 00:05:11,520 Speaker 1: not measuring jug there is not one. But anyway, Corning 107 00:05:11,720 --> 00:05:14,320 Speaker 1: it has hit an all time high because it has 108 00:05:14,400 --> 00:05:16,760 Speaker 1: created super strong glass. 109 00:05:17,240 --> 00:05:20,880 Speaker 2: Very cool company. It actually created the first light bulb 110 00:05:20,960 --> 00:05:24,279 Speaker 2: from Thomas Edison. That's Corning where you mentioned that didn't 111 00:05:24,279 --> 00:05:26,440 Speaker 2: work out so well. It was unbreakable and you know 112 00:05:26,480 --> 00:05:29,200 Speaker 2: when you make revenue by selling crockery, you don't want 113 00:05:29,279 --> 00:05:33,359 Speaker 2: unbreakable crockery. Anyway, they got through that pire X. More recently, 114 00:05:33,360 --> 00:05:36,839 Speaker 2: about twenty eighteen, they started looking at glass, tough glass 115 00:05:37,040 --> 00:05:39,960 Speaker 2: when the AI boom hit. It could help build out 116 00:05:40,080 --> 00:05:44,160 Speaker 2: the glass needed in data centers. It's also signed big 117 00:05:44,200 --> 00:05:48,080 Speaker 2: contracts for cover glass for iPhones and Apple watches. So 118 00:05:48,200 --> 00:05:53,600 Speaker 2: it's become a glass company. And in an AI world 119 00:05:53,760 --> 00:05:57,000 Speaker 2: where everyone needs fiber optic cables, glass fiber optic cables, 120 00:05:57,400 --> 00:06:00,240 Speaker 2: this old school manufacturer is me. 121 00:06:00,640 --> 00:06:02,600 Speaker 1: That is a fantastic story and a great way to 122 00:06:02,640 --> 00:06:04,760 Speaker 1: finish up. That is the top five business stories in 123 00:06:04,800 --> 00:06:07,560 Speaker 1: five minutes. Thank you, Sean Thanks Michael. It's Thursday, the 124 00:06:07,640 --> 00:06:10,440 Speaker 1: twelfth of February twenty twenty six, remembered hit follow on 125 00:06:10,480 --> 00:06:12,520 Speaker 1: the podcast and if five minutes just isn't enough, you 126 00:06:12,560 --> 00:06:15,520 Speaker 1: can find a longer daily show called Fear and Greed 127 00:06:15,560 --> 00:06:18,080 Speaker 1: whereever you listen to podcasts. I'm Michael Thompson and that 128 00:06:18,200 --> 00:06:20,279 Speaker 1: was the fast five Business News by Fear and Greed. 129 00:06:20,600 --> 00:06:21,280 Speaker 1: Had a great day.