1 00:00:03,730 --> 00:00:07,150 Michael Thompson: It's Monday, the 20th of September 2021. Welcome to the 2 00:00:07,150 --> 00:00:09,450 Michael Thompson: Fear and Greed Business Headlines, where we give you the 3 00:00:09,450 --> 00:00:12,080 Michael Thompson: top five business stories you need to know today in 4 00:00:12,080 --> 00:00:14,810 Michael Thompson: just five minutes. I'm Michael Thompson and good morning to 5 00:00:14,810 --> 00:00:15,560 Michael Thompson: you Sean Aylmer. 6 00:00:15,800 --> 00:00:16,439 Sean Aylmer: Morning Michael. 7 00:00:16,570 --> 00:00:18,320 Michael Thompson: Five stories, five minutes, you're ready? 8 00:00:18,780 --> 00:00:19,600 Sean Aylmer: I'm ready, let's go. 9 00:00:20,030 --> 00:00:22,660 Michael Thompson: The big one, global equity markets are tumbling from Wall 10 00:00:22,660 --> 00:00:24,919 Michael Thompson: Street to London to Australia. What's going on? 11 00:00:25,100 --> 00:00:26,910 Sean Aylmer: Well, the crux of it is that investors are getting 12 00:00:26,910 --> 00:00:31,080 Sean Aylmer: nervous about COVID again. 18 months in and we're still talking about it. 13 00:00:31,080 --> 00:00:33,170 Sean Aylmer: People were hoping we'd be through it by then. Some 14 00:00:33,170 --> 00:00:35,970 Sean Aylmer: states in the US, Florida, for example, are recording huge 15 00:00:35,970 --> 00:00:38,370 Sean Aylmer: numbers of deaths. Up until a few days ago, Germany 16 00:00:38,550 --> 00:00:42,000 Sean Aylmer: was surging with new numbers. Singapore's rising fast. In Australia, 17 00:00:42,000 --> 00:00:44,060 Sean Aylmer: we're seeing the numbers in New South Wales and Victoria. 18 00:00:44,060 --> 00:00:46,030 Sean Aylmer: People are just a bit worried about it. On top 19 00:00:46,030 --> 00:00:48,379 Sean Aylmer: of that, they're also concerned that central banks are actually 20 00:00:48,380 --> 00:00:51,130 Sean Aylmer: going to start tightening monetary policy. Now that doesn't mean 21 00:00:51,250 --> 00:00:54,040 Sean Aylmer: lift interest rates, but it does mean stop bond buying, 22 00:00:54,040 --> 00:00:57,100 Sean Aylmer: which means longer term rates will rise. Worried about that 23 00:00:57,100 --> 00:00:59,500 Sean Aylmer: in the US, worried about that in Japan, in Australia 24 00:00:59,500 --> 00:01:02,740 Sean Aylmer: and in Europe. The other big unknown is China. US 25 00:01:02,740 --> 00:01:05,450 Sean Aylmer: might be the biggest economy, but China is the most influential, 26 00:01:05,500 --> 00:01:08,310 Sean Aylmer: especially for Australia and it's just looking a bit soft. 27 00:01:08,490 --> 00:01:10,890 Sean Aylmer: The steel mills aren't buying what they used to from 28 00:01:10,890 --> 00:01:13,490 Sean Aylmer: our iron ore miners. Overall, it means that Wall Street 29 00:01:13,490 --> 00:01:16,080 Sean Aylmer: was down over the weekend, so was London. The Aussie 30 00:01:16,140 --> 00:01:19,289 Sean Aylmer: market was down almost a per cent. Now the big point there 31 00:01:19,290 --> 00:01:21,890 Sean Aylmer: just before we leave it, iron ore prices were down 20% 32 00:01:21,890 --> 00:01:25,580 Sean Aylmer: and that sent Fortescue, BHP and Rio Tinto tumbling. Gold 33 00:01:25,580 --> 00:01:26,640 Sean Aylmer: didn't do much better either. 34 00:01:26,970 --> 00:01:28,340 Michael Thompson: It's going to be an interesting week. 35 00:01:28,530 --> 00:01:29,069 Sean Aylmer: Sure will. 36 00:01:29,410 --> 00:01:33,140 Michael Thompson: Okay. Victoria finally has a roadmap out of lockdown. 37 00:01:33,360 --> 00:01:36,619 Sean Aylmer: Yeah. My theory on COVID this weekend is that the news isn't good, 38 00:01:36,620 --> 00:01:39,259 Sean Aylmer: but at least it's getting better. Victoria had more than 39 00:01:39,260 --> 00:01:42,040 Sean Aylmer: a thousand cases over the weekend and two deaths, but 40 00:01:42,040 --> 00:01:45,520 Sean Aylmer: Premier Daniel Andrews outlined reopening plans once 70% of the 41 00:01:45,520 --> 00:01:49,970 Sean Aylmer: population are vaccinated. Outdoor gatherings will be allowed, venues can reopen, 42 00:01:49,970 --> 00:01:52,940 Sean Aylmer: construction sector, really important for employment, can get back to 43 00:01:52,940 --> 00:01:56,900 Sean Aylmer: full capacity. Community sport will happen, masks will be mandatory, 44 00:01:57,300 --> 00:01:59,710 Sean Aylmer: but what I thought was interesting, schools will start reopening 45 00:01:59,710 --> 00:02:02,030 Sean Aylmer: from October 5. Lots of parents out there happy about 46 00:02:02,030 --> 00:02:04,900 Sean Aylmer: that one and by October 26, it should pretty much 47 00:02:04,900 --> 00:02:08,150 Sean Aylmer: be back to normal school activity. The numbers in New 48 00:02:08,150 --> 00:02:11,450 Sean Aylmer: South Wales were bad, more than 2300 cases or 2400 49 00:02:11,450 --> 00:02:16,060 Sean Aylmer: cases over the weekend, too many deaths. Gladys Berejiklian said peak hospitalisation 50 00:02:16,060 --> 00:02:18,609 Sean Aylmer: rates will come in October. At least in New South Wales, 51 00:02:18,730 --> 00:02:19,980 Sean Aylmer: the numbers seem to have plateaued. 52 00:02:20,310 --> 00:02:23,900 Michael Thompson: Now, one of the big stories in federal politics, particularly 53 00:02:23,900 --> 00:02:27,010 Michael Thompson: over the weekend, Christian Porter has resigned from the frontbench. 54 00:02:27,060 --> 00:02:29,440 Michael Thompson: Now this is over who paid $1 million into a 55 00:02:29,440 --> 00:02:31,910 Michael Thompson: blind trust account that was to help pay for his 56 00:02:31,910 --> 00:02:35,040 Michael Thompson: defamation case against the ABC, which was really a case 57 00:02:35,040 --> 00:02:36,389 Michael Thompson: that he neither won nor lost. 58 00:02:36,639 --> 00:02:39,299 Sean Aylmer: That's an incredible thing about this story. He sued the 59 00:02:39,300 --> 00:02:43,020 Sean Aylmer: ABC for defamation after it talked about an alleged rape 60 00:02:43,020 --> 00:02:45,810 Sean Aylmer: case back in 1988 that the woman who made the 61 00:02:45,810 --> 00:02:49,529 Sean Aylmer: allegations has subsequently died. The minister, Christian Porter came out 62 00:02:49,590 --> 00:02:51,500 Sean Aylmer: and said it was him. He was Attorney General at 63 00:02:51,500 --> 00:02:56,139 Sean Aylmer: the time. Now he sued the ABC. Very expensive. What 64 00:02:56,139 --> 00:02:57,910 Sean Aylmer: happened is that someone put a million dollars into a 65 00:02:57,910 --> 00:03:01,100 Sean Aylmer: blind trust, which he accessed to pay for his expenses. 66 00:03:01,330 --> 00:03:03,700 Sean Aylmer: No idea who that is. Not looking good from the 67 00:03:03,700 --> 00:03:06,639 Sean Aylmer: pub test, Scott Morrison the prime minister was worried about 68 00:03:06,639 --> 00:03:08,970 Sean Aylmer: ministerial standards. And in the end, he's had to step 69 00:03:08,970 --> 00:03:11,600 Sean Aylmer: down from his industry ministry role. He'll be replaced by 70 00:03:11,600 --> 00:03:12,230 Sean Aylmer: Angus Taylor. 71 00:03:12,500 --> 00:03:14,780 Michael Thompson: I don't think this will be the end of this one. We'll still be hearing about 72 00:03:14,780 --> 00:03:17,579 Michael Thompson: that into the future. Now the fallout from the nuclear 73 00:03:17,580 --> 00:03:20,900 Michael Thompson: submarine deal continues. Big story last week, big story this week. 74 00:03:21,060 --> 00:03:24,200 Sean Aylmer: It sure was. Australia dumped France and said it wouldn't be 75 00:03:24,200 --> 00:03:28,350 Sean Aylmer: spending $90 billion to build 12 conventional subs. Instead it 76 00:03:28,350 --> 00:03:31,560 Sean Aylmer: was going to spend $80 billion to buy eight nuclear 77 00:03:31,560 --> 00:03:34,839 Sean Aylmer: subs plus some other weaponry. And that was with US 78 00:03:34,840 --> 00:03:38,130 Sean Aylmer: and the UK. Over the weekend, France recalled its envoys 79 00:03:38,130 --> 00:03:41,700 Sean Aylmer: to Canberra and Washington. Clearly, France is furious with Australia, 80 00:03:42,010 --> 00:03:44,610 Sean Aylmer: but defense minister, Peter Dutton was out yesterday saying Australia 81 00:03:44,620 --> 00:03:48,150 Sean Aylmer: had been upfront. France knew of its concerns. Mr. Dutton 82 00:03:48,150 --> 00:03:51,620 Sean Aylmer: also said Australia should prepare for more aggressive behavior from China. 83 00:03:51,840 --> 00:03:54,400 Sean Aylmer: He wasn't talking about military warfare. He was talking about 84 00:03:54,400 --> 00:03:56,790 Sean Aylmer: things like cyber attacks. That's pretty interesting that one. 85 00:03:57,330 --> 00:04:01,480 Michael Thompson: Absolutely. That's four stories. Bring it home with big number five, 86 00:04:01,560 --> 00:04:03,720 Michael Thompson: the boss of Qantas, Alan Joyce and how much money he 87 00:04:03,920 --> 00:04:04,440 Michael Thompson: earned last year. 88 00:04:04,560 --> 00:04:07,720 Sean Aylmer: Yeah, he took home $1.9 million last financial year, was better 89 00:04:07,720 --> 00:04:10,550 Sean Aylmer: than the $1.7 million he took home the previous year. Now, 90 00:04:10,550 --> 00:04:13,970 Sean Aylmer: in 2019, he took home $10 million. The irony of all this, guys, 91 00:04:13,970 --> 00:04:16,450 Sean Aylmer: is that when they have to work hardest, often they 92 00:04:16,450 --> 00:04:20,040 Sean Aylmer: actually received the least. Now, what Mr. Joyce took home $1.9 93 00:04:20,560 --> 00:04:23,880 Sean Aylmer: million it's nothing like Macquarie Group's Shemara Wikramanayake who took 94 00:04:23,880 --> 00:04:28,450 Sean Aylmer: home $16 million last financial year, but Mr. Joyce's pay 95 00:04:28,510 --> 00:04:31,730 Sean Aylmer: was commensurate with what happened to the group's share price. 96 00:04:32,160 --> 00:04:35,220 Sean Aylmer: Something that's worth mentioning on this one. Qantas is talking 97 00:04:35,220 --> 00:04:37,710 Sean Aylmer: about offering all staff a bonus on completion of the 98 00:04:37,710 --> 00:04:40,960 Sean Aylmer: COVID-19 recovery plan. They've got a lot of key staff 99 00:04:41,180 --> 00:04:43,710 Sean Aylmer: who must be wondering about the future at the airline 100 00:04:43,890 --> 00:04:45,500 Sean Aylmer: and they need to keep them. So they're talking about 101 00:04:45,880 --> 00:04:47,070 Sean Aylmer: a big bonus payment. 102 00:04:47,320 --> 00:04:49,570 Michael Thompson: Top five stories, there we go. Thank you very much, Sean. 103 00:04:49,910 --> 00:04:50,560 Sean Aylmer: Thank you, Michael. 104 00:04:50,800 --> 00:04:54,210 Michael Thompson: It's Monday, the 20th of September, 2021. Make sure you 105 00:04:54,210 --> 00:04:57,130 Michael Thompson: followed Fear and Greed on LinkedIn, Twitter and Facebook. You 106 00:04:57,130 --> 00:05:01,089 Michael Thompson: can always find more in fearandgreed.com.au. I'm Michael Thompson. That 107 00:05:01,089 --> 00:05:03,620 Michael Thompson: was the Fear and Greed Business Headlines. Enjoy your day.