1 00:00:03,960 --> 00:00:06,920 Speaker 1: It's Tuesday, the sixteenth of July twenty twenty four. Welcome 2 00:00:06,960 --> 00:00:09,040 Speaker 1: to the Fast Fired by Fear and Greed, where we 3 00:00:09,160 --> 00:00:11,280 Speaker 1: give you the top five business stories you need to 4 00:00:11,320 --> 00:00:14,360 Speaker 1: know in just five minutes. I'm Julian King, and good 5 00:00:14,360 --> 00:00:18,520 Speaker 1: morning Sean Almer. Good morning, Julian, Sean Story number one. 6 00:00:18,560 --> 00:00:21,680 Speaker 1: The Australian share market has pushed through eight thousand points 7 00:00:21,720 --> 00:00:23,920 Speaker 1: for the first time, spurred on by gains on Wall 8 00:00:23,960 --> 00:00:26,400 Speaker 1: Street on the back of hopes that interest rates will 9 00:00:26,440 --> 00:00:28,400 Speaker 1: start falling in coming months. 10 00:00:28,640 --> 00:00:30,840 Speaker 2: It's taken three years to go from seven thousand points 11 00:00:30,880 --> 00:00:33,120 Speaker 2: to eight thousand points. Mind you, in October last year 12 00:00:33,159 --> 00:00:35,400 Speaker 2: was around sixty eight hundred points. Since then, it's up 13 00:00:35,400 --> 00:00:38,240 Speaker 2: about eighteen percent. The rise over the past three years 14 00:00:38,240 --> 00:00:41,280 Speaker 2: has mostly been fueled by low interest rates post COVID. 15 00:00:41,320 --> 00:00:44,680 Speaker 2: In more recent times, the run since late last year, well, 16 00:00:44,720 --> 00:00:48,080 Speaker 2: that's been fueled by expectations that rates will fall even 17 00:00:48,080 --> 00:00:50,720 Speaker 2: if they haven't. The sector powering the moves more than 18 00:00:50,760 --> 00:00:53,920 Speaker 2: any other, at least locally, is the financials, and particularly 19 00:00:53,960 --> 00:00:56,000 Speaker 2: the Big four banks. Commonwealth Banks had a record high. 20 00:00:56,120 --> 00:00:58,760 Speaker 2: National Australia Bank was last seen at these levels in 21 00:00:58,800 --> 00:01:01,319 Speaker 2: two thousand and seven. A Z's around a seven year high, 22 00:01:01,360 --> 00:01:05,240 Speaker 2: Westpac's about a five year high. Industrial property giant Goodman 23 00:01:05,800 --> 00:01:08,400 Speaker 2: Certainly that's worth a shout out. It's been a standout 24 00:01:08,440 --> 00:01:11,080 Speaker 2: performer over the past three years, particularly since the beginning 25 00:01:11,120 --> 00:01:13,720 Speaker 2: of last year. The tech stocks have also done well, 26 00:01:14,040 --> 00:01:16,920 Speaker 2: but they're only a very small part of the local market, 27 00:01:17,000 --> 00:01:20,080 Speaker 2: so they don't actually impact the ASEX two hundred that much. 28 00:01:20,440 --> 00:01:23,160 Speaker 2: The Materials index, which includes a big minus that has 29 00:01:23,400 --> 00:01:26,559 Speaker 2: a big impact on our market, well, it's actually detracted 30 00:01:26,720 --> 00:01:29,240 Speaker 2: from the ASEX two hundred over the last year. Generally, 31 00:01:29,280 --> 00:01:31,600 Speaker 2: the large caps have done much better than the small caps, 32 00:01:31,640 --> 00:01:33,320 Speaker 2: not just over the last year, but over the past 33 00:01:33,319 --> 00:01:34,080 Speaker 2: three years. 34 00:01:34,600 --> 00:01:37,440 Speaker 1: Okay, so the BURS has pushed past eight thousand points. 35 00:01:37,440 --> 00:01:39,280 Speaker 1: So what next does it keep rising? 36 00:01:40,240 --> 00:01:42,920 Speaker 2: Question will be on my pay grade, Jillian. The optimists, 37 00:01:42,959 --> 00:01:45,839 Speaker 2: like Better SHARE's chief economist David Bassanesi, say the local 38 00:01:45,880 --> 00:01:48,600 Speaker 2: market is relatively cheap and unloved and may benefit if 39 00:01:48,600 --> 00:01:53,160 Speaker 2: investors start shifting out of US large textocks. IMP head 40 00:01:53,200 --> 00:01:56,360 Speaker 2: of Investment strategy Shane Oliver he four casts the ASEX 41 00:01:56,360 --> 00:01:58,880 Speaker 2: two hundred will reach eighty one hundred points by the 42 00:01:58,960 --> 00:02:03,120 Speaker 2: year end, long by rising share markets overseas. The flip 43 00:02:03,160 --> 00:02:06,440 Speaker 2: side is that the market is fully valued, especially given 44 00:02:06,440 --> 00:02:09,079 Speaker 2: where interest rates are. The upcoming earning season, which kicks 45 00:02:09,120 --> 00:02:11,679 Speaker 2: off in a little over a fortnite, could well be 46 00:02:11,840 --> 00:02:14,480 Speaker 2: make or break time. There are also plenty of risks, 47 00:02:14,680 --> 00:02:17,600 Speaker 2: not least an overvalued US share market, according to some 48 00:02:18,040 --> 00:02:20,679 Speaker 2: Wall Street falls so too the local market. Plenty of 49 00:02:20,760 --> 00:02:23,240 Speaker 2: geopolitical risk around from Europe to Middle East to Asia 50 00:02:23,280 --> 00:02:25,560 Speaker 2: in the US, as well as fears the recession. I reckon, 51 00:02:25,639 --> 00:02:28,239 Speaker 2: you're going to invest, check out a financial advisor. That's 52 00:02:28,280 --> 00:02:29,200 Speaker 2: my advice yep. 53 00:02:29,240 --> 00:02:31,800 Speaker 1: Story number two. Several Australian banks will be forced to 54 00:02:31,840 --> 00:02:34,919 Speaker 1: refund more than twenty eight million dollars to one hundred 55 00:02:34,919 --> 00:02:38,560 Speaker 1: and thirty six thousand vulnerable customers after an investigation by 56 00:02:38,560 --> 00:02:42,120 Speaker 1: the Corporate cop found systemic high feed charging. 57 00:02:42,160 --> 00:02:44,720 Speaker 2: A and zed Commonwealth Bank, Westpac and Bendigo and Adelaide 58 00:02:44,720 --> 00:02:47,600 Speaker 2: Bank have agreed to move two hundred thousand customers into 59 00:02:47,600 --> 00:02:49,840 Speaker 2: lower fare accounts, which will cost them ten point seven 60 00:02:49,840 --> 00:02:52,720 Speaker 2: million dollars in fees annually, according to report and the 61 00:02:52,720 --> 00:02:55,200 Speaker 2: fin Review. The banks will also write to a further 62 00:02:55,240 --> 00:02:58,480 Speaker 2: two million customers to advise them of low fee alternatives. 63 00:02:58,680 --> 00:03:01,000 Speaker 2: As part of actions agreed with the Australian Securities and 64 00:03:01,040 --> 00:03:04,119 Speaker 2: Investments Commission. The investigation comes six years after the Hayin 65 00:03:04,200 --> 00:03:07,720 Speaker 2: Banking Royal Commission, in which banks faced fierce criticism for 66 00:03:07,760 --> 00:03:12,760 Speaker 2: their conduct, including similar instances of charging vulnerable people high fees. 67 00:03:13,240 --> 00:03:16,440 Speaker 1: Story number three. The top complaints against airlines last year 68 00:03:16,520 --> 00:03:20,240 Speaker 1: were about requests for refunds and flight delays. Together, they 69 00:03:20,280 --> 00:03:22,640 Speaker 1: made up almost three quarters of all complaints. 70 00:03:23,080 --> 00:03:26,320 Speaker 2: The industry funded airline Customer Advocates said customers took ten 71 00:03:26,320 --> 00:03:30,160 Speaker 2: percent more flights domestically and internationally last year. Title passengers 72 00:03:30,320 --> 00:03:33,399 Speaker 2: numbers were almost sixty eight million dollars. The advocate, which 73 00:03:33,440 --> 00:03:36,840 Speaker 2: is kind of the point of last call, received more 74 00:03:36,880 --> 00:03:40,760 Speaker 2: than fourteen hundred eligible complaints last year, up about nine 75 00:03:40,800 --> 00:03:43,880 Speaker 2: percent in line with the jumping passenger numbers. The overall 76 00:03:43,880 --> 00:03:48,080 Speaker 2: complaint resolution fell and it took about thirty seven calendar 77 00:03:48,160 --> 00:03:52,920 Speaker 2: days to be resolved. That average time taken actually dropped 78 00:03:52,920 --> 00:03:55,160 Speaker 2: in the second half of twenty twenty three to nineteen days. 79 00:03:55,280 --> 00:03:57,240 Speaker 2: That is good news, no doubt about it. Still, we 80 00:03:57,280 --> 00:03:59,080 Speaker 2: need to get those number of complaints down or at 81 00:03:59,120 --> 00:04:00,080 Speaker 2: less the airlines. 82 00:03:59,720 --> 00:04:03,400 Speaker 1: To story number before US President Joe Biden has called 83 00:04:03,400 --> 00:04:06,120 Speaker 1: for calm and efforts to lower the temperature in the 84 00:04:06,160 --> 00:04:09,400 Speaker 1: wake of the attempted assassination of Donald Trump over the weekend. 85 00:04:09,880 --> 00:04:11,800 Speaker 2: In a televised speech from the White House, which in 86 00:04:11,840 --> 00:04:14,520 Speaker 2: itself is unusual, mister Biden said, and I quote, while 87 00:04:14,520 --> 00:04:17,280 Speaker 2: we disagree, we are not enemies. We're neighbors. We are friends, 88 00:04:17,360 --> 00:04:20,720 Speaker 2: co workers, citizens, and most importantly, we are fellow Americans. 89 00:04:21,080 --> 00:04:23,159 Speaker 2: Mister Biden said he had spoken to mister Trump and 90 00:04:23,240 --> 00:04:26,960 Speaker 2: is grateful he's going well. The FBI said the investigation 91 00:04:27,080 --> 00:04:30,039 Speaker 2: so far suggests the shooter acted alone, and also that 92 00:04:30,120 --> 00:04:33,040 Speaker 2: another device, which media is calling a bomb, was found 93 00:04:33,080 --> 00:04:35,560 Speaker 2: in the shooter's car. Meanwhile, the background of a man 94 00:04:35,720 --> 00:04:39,599 Speaker 2: killed in the crowd, Cory Comparatore, has emerged. A firefighter, 95 00:04:39,680 --> 00:04:42,320 Speaker 2: churchgar and an avid supporter of mister Trump. He threw 96 00:04:42,360 --> 00:04:45,839 Speaker 2: himself over his family members to shield them when firing began. 97 00:04:46,320 --> 00:04:48,080 Speaker 2: He was hit in the head and died at the scene. 98 00:04:48,160 --> 00:04:49,920 Speaker 2: For his part, Donald Trump said he wouldn't let a 99 00:04:49,960 --> 00:04:53,040 Speaker 2: potential assassin force him to change his schedule over night. 100 00:04:53,120 --> 00:04:55,120 Speaker 2: He was in Milwaukee for the opening of the Republican 101 00:04:55,279 --> 00:04:58,480 Speaker 2: National Convention. He told us Tabloid the New Post that 102 00:04:58,520 --> 00:05:01,560 Speaker 2: the doctor at the hospital he visited called it a miracle. 103 00:05:01,520 --> 00:05:04,640 Speaker 1: And story number five. The rental car sector is dumping 104 00:05:04,720 --> 00:05:07,960 Speaker 1: electric vehicles in the US, with novice drivers finding them 105 00:05:07,960 --> 00:05:10,720 Speaker 1: hard to charge and difficult to control. 106 00:05:11,560 --> 00:05:15,239 Speaker 2: Evs have been a financial disaster for rental companies, notably Hurts, 107 00:05:15,240 --> 00:05:17,159 Speaker 2: which is pulled back on plans to buy one hundred 108 00:05:17,200 --> 00:05:21,200 Speaker 2: thousand Teslas after the car's resale values plunged last year. 109 00:05:21,200 --> 00:05:23,359 Speaker 2: More than four percent of cars sold to rental companies 110 00:05:23,400 --> 00:05:26,080 Speaker 2: revs this year is just one point four percent. According 111 00:05:26,080 --> 00:05:28,760 Speaker 2: to report in The New York Times, most rental car 112 00:05:28,920 --> 00:05:32,600 Speaker 2: complexes at airports lack charges. There's a problem. Another issue 113 00:05:32,640 --> 00:05:35,800 Speaker 2: making money renting evs is harder than forecast. Also, many 114 00:05:35,839 --> 00:05:39,200 Speaker 2: renters just aren't prepared for how quickly electric cars accelerate, 115 00:05:39,480 --> 00:05:42,840 Speaker 2: leading to more accidents, higher insurance premiums, And finally, some 116 00:05:42,839 --> 00:05:45,440 Speaker 2: companies found they couldn't get spare parts three evs as 117 00:05:45,520 --> 00:05:48,640 Speaker 2: quickly as they could for gasoline cars. Just looks like 118 00:05:48,680 --> 00:05:50,800 Speaker 2: the love affair with evs is waning somewhat. 119 00:05:51,040 --> 00:05:54,120 Speaker 1: Maybe that's it. The top five business stories in five minutes. 120 00:05:54,160 --> 00:05:57,320 Speaker 1: Thank you Sean, Thank you Julian. It's Tuesday, the sixteenth 121 00:05:57,360 --> 00:05:59,880 Speaker 1: of July twenty twenty four. Remember to hit follow on 122 00:05:59,920 --> 00:06:02,640 Speaker 1: the podcast and if five minutes isn't enough, then find 123 00:06:02,640 --> 00:06:05,960 Speaker 1: out longer podcast or Fear and Greed on your podcast platform. 124 00:06:06,200 --> 00:06:08,440 Speaker 1: I'm Julian King and that was the Fast five by 125 00:06:08,440 --> 00:06:12,200 Speaker 1: Fear and Greed. Have a great day.